Full text of Commercial and Financial Chronicle : September 3, 1959, Vol. 190, No. 5878

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ESTABLISHED 1839

Volume

190

Number 5878

New York 7, N. Y.,

Thursday, September 3,
—

19^jsiness

——

I

'

•

f

v

/

'

'

As

By DR. RAYMOND J. SAULNIER*

tration's top

inflation's

the

Adminis¬

There

prices and labor to end

pass
wage

them

on

in the form of lower

rises that increase costs and

prises. Or. Saulnier is looking for stable unit labor costs for

-

the economy as a

is

says

growth.
our

not

competitive

; increases

within
and

The

the

of

and

economy

of

average

average

inflation

of

orderly

the

to

is

and

vital,

progressive

improvement

if

even

it

would

first

have

of

our

and

of prices,
slowly at

upward trend
proceeds only
the

effect

of

quietly abrogating all contracts in¬
volving stated money sums. Law¬

It

to

out

erosion

The

pected.

planned and

as

of

which

commitments

slow

a

Dr.

inflation brings about is bad enough;
there

but

that

other

worse.

are

continuance of

were

J.

R.

Saulnier

consequences

If

are

we

resign

to

the

ourselves to

moderate degree of inflation, the actual

a

persistence of this condition would in time, and probably
♦An

address

Business

Laws

FJa., Aug. 25,
>

seems

to

by Dr. Saulnier before the Corporation, Banking and
Section, American Bar Association, Miami Beach,

Continued

DEALERS

to

of

the

ECM

plains that ECM
activities

see

means

lists

evary where;

\

on

deed the

case

he will not be deterred from pressContinued

on

page

principally

tial

afforded

competition for

broad

elsewhere

products

our

spectrum

of

and

affected

decisions

cost

manufacturing
to

con¬

determining the extent and potential of the market assuming
a

concern

five

is ready

basic

abroad.

The

for

ECM based operation; and details

an

American

ways

businessmen

do

can

business

important matter of institutional factors that

make-up the foreign and American behavior pattern is also
submitted

There

has

been

as

an

important reminder,.

*

great deal of speculation

a

-

since the

European Common Market came into being concerning
its

potential effects

on

The optimists

American business.

look

hopefully

the

upon

that

fact

the European Common Market con¬
stitutes a block of 170,000,000 people

effort, intend
of living to
something approximating that of the
United States. The pessimists see in
the growing economic and industrial
power of ECM a threat to our busi¬
ness
in
the
Common. Market,
in
other European countries, in world"

who,

by

raise

concerted

a

their

markets and

Each

try.

standard

even

in

own

our

support his

can

coun¬

point

of

view and there is

some

truth in both

points

This

leaves many
thoroughly

confused
Harold

H. Scaff

their

view.

of

American

businessmen

«
as

own

what ECM

to

to

means

particular business. Let us

briefly review what is at stake for the

American econ¬

During the defcade before the Treaty of
Rome came into effect, our exports to ECM countries
averaged $2.3 billion annually. During this same time,

omy as a

whole.

Continued

20

on

page

18

corporate

complete picture of issues now registered with the SEC and poten¬
undertakings in our "Securities in Registration" Section, starting on page 30.
are

business

Mr. Scaff pointedly ex¬

outlines essential steps that should be considered in

sider;

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

American

more

the

more

20

page

European Common Market and

upon

domestic market.

own

to

to be much

us

1959.

v

been

effect

including its

of them, and is likely to insist upon them
through thick and thin, even in face-to-face En¬
counters with the heads of the so-called
major
powers aligned against him. We most earnestly
hope that all this will never come to the point
of a major war, but in our view we are faced
by an implacable expansionist who aspires to
world domination within a much shorter span of
time than we like to contemplate. If such is in¬

contractual

even

the

many

ex¬

as

has

top management consultants plumbs the.

probable, how¬
that Mr. Khrushchev has cherished objec¬
tives which far exceed any gratification of
per¬
sonal pride, and that he still hopes to achieve

involved, such contracts fail

work

dictator

America's

ever,

know the variety and scope of
such contracts,»and the harm that
is done when,
for reasons beyond
the
control
of
the
parties imme¬

yers

diately

of the Russian

of

stalks of U. S. business in the

harbor the
deal—enough
to satisfy him at least for the time
being—from
his opposite numbers in the free countries (so far
as there are
any) by dealing with them directly;
those who have been saying that personal
vanity
of a sort has been
driving the Russian tyrant
could, of course, possibly be right.

our

permanence

well-being, but also to the
vigor of the political and social in¬
stitutions
for
which
you
have
a
kind of trusteeship responsibility. A

One

it is conceivable that he himself
may
notion that he can wring a great

the

only to
growth in

Vice-President, Ebasco Services, Inc., New York City

believe

country and sit face to face on equal terms
with the President; it is
possible that some sort
of summit meeting or the
equivalent has been an
important objective of his from the beginning;

gains,

not

balanced

who

this

and fringe

wage

productivity

economic

continuing

desires

live within

promote more efficiency and thrift.

avoidance

achievement

limits

those

persistent

economic

follow prudent monetary policy, finance the debt

^inflationary basis, hold

a

with

His anti-inflation national formula is:

means,

on

and

to

are

Opportunity?

or

By HAROLD H. SCAFF

that either of these extreme
expectations will be
realized. It may be that one of the

whole and overall price stability which he

essential

Threat

to be expected, predicted results of the

hardly less than
disaster can come of them. Others
go far in the
other direction and are
building up their hopes
of a full thaw in the cold war. It is
hardly likely

economic advisor admonishes industries enjoy¬

ing productivity gains to

.

persistent threat,

was

We See It

exchange of visits by Nikita Khrushchev and the
President range from one extreme to the other.

Chairman, President's Council of Economic Advisers
price

Copy;;

a

European Common Market

As

Inflationary Pressures
of

Price 50..Cents

'

EDITORIAL

A National Formula to Check

Fearful

administration
HORARY
"■

.

a

State, Municipal

in

and

U. S. Government,
Public

Housing,

State and

UNDERWRITERS

Municipal

STATE

and

DISTRIBUTORS

Securities

AND

HAnover 2-3700

California

BONDS

•

.

Members Pacific Coast Exchange

Offices in Claremont, Corona del Mar,

THE FIRST NATIONAL CITY BANK

^

Burnham and
MEMBERS NEW

15 BROAD

Distributor

•

Dl 4-1400

Bond Dept.

Members
New York Stock Exchange

BROAD

STREET

Q}OUtfuV€<At COMPANY
DALLAS




■

Inquiries

Chase Manhattan

Southern

BANK

Correspondent—Pershing A Co.

CANADIAN
BONDS & STOCKS

I

•

PERTH AMBOT

MunicipalBonds

Invited

Commission Orders Executed On All
Canadian Exchanges

FOR COMMUNITY

CANADIAN DEPARTMENT

DIRECT

WIRES TO MONTREAL AND TORONTO

Goodbody

&

MEMBERS NEW YORK STOCK
BRIDGEPORT

on

Securities

Maintained
and Brokers

Banks

Teletype NY 1-2270

NEW YORK 4, N. Y.
FIRST

New York

SECURITIES
Block

American Stock Exchange

25

THE

Markets

CANADIAN

1832
I

Securities

Teletype: NY 1-70S

DEPARTMENT

TELETYPE NY t-22S2

T. L. Watson &Co.

Investment

Inquiries Invited
California

Net
Active
To Dealers,

'"i

San Diego, Santa Ana, Santa Monica

STOCK EXCHANGES

STREET, NEW YORK 5, N.Y.

COSURNHAM

ESTABLISHED

i

BOND

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Company

YORK AND AMERICAN

..

Dealer

"i,

Bonds and Notes

Encino, Glendale, Hollywood. Long Beach,

CABLE:

Underwriter

Public Housing Agency

Associate Member American Stock Exchange

SECURITIES

BANK

...

17,

Members New York Stock Exchange

CORN EXCHANGE

30 BROAD ST.,

628 So. Hope Street, Los Angelee

INVESTM E INT

CHEMICAL

NT
BOND DEPARTMENT

Lester, Ryons & Co.

.

°f
telephone:

MUNICIPAL

115 BROADWAY
NEW YORK

PoxmioN Securities
(oKPORATIOTf

Co.

EXCHANGE

1 NORTH LA SALLE ST.

CHICAGO

40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

PROTECTION
MUNICIPAL BOND

Bank

DEPARTMENT

America

of

N. T. & S. A.

San Francisco

.

Los Angeles

2

The Commercial and Financial Chronicle

(926)

The Security I

Banks, Brokers, Dealers only

For

A continuous forum in which,

Call "HANSEATIC"

in the investment and
^

°

Over 39 years

MONTE

geared for service

Bache &

Wire

System

Members

Stock

serve

you

when

and

[Jew Yorto Hanseatic

Stock

may

a company

its

products to areas
growth potentials as
revealed by its

✓

e

1 1

xc e

e

earnings

York 5

Teletype NY 1-40

is

CHICAGO

producer

rZHiADELPHIA

•

SAN FRANCISCO

about

Members

Leader

riot

Securities

selling

CO

The

in

annually, apart

en¬

continued good de¬
cellophane, vinyls,
polyesters
and
other
types
of
wrapping materials. Indeed, items
corrugated

as

F.

and

boxes

Co.,

Stejner,Rouse&Co
Members

earnings

of

been

since

and

increased

of the

each

at

meetings,

there

to

Direct wires to

possibility of another in¬
again within the next

once

factors

these

all

JAPANESE

favorable

Interchemical's

—

STOCKS

strong

competitive capabilities, the com¬
pany's fine earnings and dividend

shares

$42

million

while

current

$13.4 million. Over

were

included

in

current

assets

the

11

o u

For

believe

Call

these

1959

investor

astute

these good

look

can

quality shares for

Securities

in

company intends, as the
arises, to use these assets for
further expansion or possible ac¬
quisitions.
Long-term debt
equaled $3.72 million represented
by 3 Vs% promissory notes matur¬

use

Members

in¬

textile
colors,
ribbons
and

Further

sales

company's

addition

the

to

packaging

Brokers

ex¬

Burnet

&

New

Co., New

York

Basic

York

Stock

Stock

STOCKS

Incorporated

Basic
cellent

0

Incorporated
example of a

is

that

stock

1958,

a

of 58.5%.

Actually, the percentage
growth in sales of present lines
in the past 10 years (adjusting for

Trading Interest In

elimination of Interchemical's

——————————

satisfactory

American Furniture

division

Cassett Furniture Industries

some

$3.49

Commonwealth Natural Gas

MER and COMPANY, Inc.
LYNCHBURG,
LD Z9

Wire

to

New

York

City

is

tribute

a

bilities

too

the

before
from

rose

$9.59

since

management

higher

capa¬

productivity
has not been

years

customary due primarily to
general cost price squeeze. As
the

as

share

home for certain of your

rewards

basis

SECURITIES

another

company's
preciation

FUND OF BOSTON

doubled
in

on

As

per

to

$2

over

have
$1

also

million

million,

about $1.14 per share in 1958.
Of the company's sales in

Request

about 38%

GUNERAL DISTRIBUTORS
rz>

CIHULER BROTHERS

3

around

CO., INC.

went

the
de¬

non-cash

charges

from

1949

of

or

1958,

to the packaging

industry which is the largest and
fastest growing customer of Inter¬
chemical. This industry uses In¬
terchemical's inks and coatings on

(Corner of Wothlnolon St.)
ToUplione Richmond 2-2530

Fischer & Porter Inc.

Keyes Fibre Co.

the

at

10%

a

States

PENNING & CO.
1914

of

$16

Philadelphia 2, Pa.
LO 8-0900
30

rate
or

of

today grow¬
approximately

about

rate

of

three
the

times

United

Certainly, those
us
shopped in retail
stores particularly in the
super¬
markets, are aware of the myriad
of

1529 Walnut Street

a

year

growth

of




packaging in¬

billion in 1958 and is

ing

Teletype PH

that the

dustry accounted for sales

Ctouffer Corp.

ATT

growing.
other

where

(newsblack)
the

of

use

This,

of

benefits

tags
margins.
A

and

is

tries

economy.
who have

packaging containers developed

since

the food

industry turned to
self-service. This change in pack¬
aging has now been carried into
other

outlets such

as

department

yielding

make

appear

o

m

y's

p a n

position

f

a

s

t

and

e

s

r

sales

(47%); printing Trov/'ng segments of
the
steel
(10%); textile,; industry.
plastic
converting
The growing pains of steel pro¬
household furnishing

exploiting its position in a
suited only to the qualified

Return
vested

stockholders'

on

about

averaged

14.1%—

average for the

chemical industry as a whole and
the average of all in¬
dustrial corporations.
For the

six months

1959,

sales

record

of

$63.1

sulting in record
ings of $1.58.
for

the

were

ended June

Interchemical
per

reported

million,
share

re¬

Comparative figures

period in
1958
million in sales and

share earnings of 82 cents.s It

particularly

second
cents

quarter

significant
that
earnings were 95

share

per

or

over

50%

higher than the first quarter. On
this basis,
allowing for a modest
seasonal decline in the third
quar¬
ter
with
an

anticipated

gence

in

the

fourth

resur¬

quarter,

it

would appear that the estimate
of

$3.25
for

per

1959

Further, I

share mentioned earlier
is

entirely

am-

achievable.

of the opinion that

molten

of

refining

the

A

designed
of

steel

new

pure

basic

iron

cycle

sult

to

industry

oxygen

the

had

a

use

or

re¬

has

by this vessel,
increased
its

steelmaking facilities at

remarkable
1957

maximum

capacity and cost

afforded

rate.

nation's

basic

At

the

steel

oxygen

540,000 tons annually.

start

a

of

that

give you a pretty clear
picture of the Japanese
economy as a whole.

over,

it has been estimated that by
will account for

per

of the industry's then

papacity,

or

61 Broadway, New York

Telephone:
This

is

not

orders

BOwiing
offer or

an

for

Green

any

6, N. Y„
9-0187

solicitation

for

particular securities

Your

RED

CROSS—

3

must carry on f

of

1965 oxygen steel

total

Nomura Securities Co., Ltd.

By the be¬

increase of almost 650%. More¬

about 25%

Stock

other reports

producers

capacity

ginning of 1959 this capacity had
grown to 4,000,000 tons annually,
an

Monthly

our

furnace

is the "L-D"
converter. As a

greater

reduction
the

make

oxygen
of

making

our

to

and

oxygen

earn¬

similar

$53.1

surface

greatly increase production rates.

in¬

equity has in the last four

years

the

speed

for

Digest, and

and

specialists.

is

IN JAPAN
Write

lithography

field

per

Opportunities Unlimited

to
the

(14%);
ducers are mirrored in the need
(3%);
transportation equipment.
for
larger capacity and greater
(3%); and miscellaneous (17%).
efficiency. One method of obtain¬
Not
only does this indicate the
ing these goals at a mimimum of
high degree of diversification of
capital outlays is through the use
Interchemical's
outlets, but also
of oxygen to accelerate the pro¬
offering the company an excellent
duction of steel. In existing open
opportunity to execute the task it
hearth
and
electric
furnaces,
knows
best—making available
pure oxygen is blown into or over
high
quality
chemical
coatings

30,

*4

a

as

of

one

Miliigan

LOCUST STREET, PHltA. % PENNA.

to
the

c

the balance of the

up

£:•;

doesn't

reflect

trecl

dfiSjPbiIa,-&aHo. Stocktxch.

the

4%,

supplier

company's

0

J|AtB£RT J4 CAPUN & CO. V#

stock

profit,

great variety of other indus¬

0

help.

1959

over

Interchemical

better

we can

w

and

still

since color materials carry higher

price

Perhaps

esti-

earnings
of
$3.00 a share

carries

course,

to

0

s

mated

tradi¬

color

ISSUES

submit your offerings.

selling
around
eight

the

are

INACTIVE

times,

felt

well above

is the fact

Dlicbardson Co.

CO 7-1200

dominant,

is
in

Even

newspapers

inks

slightly above the

distribution, has enjoyed tremen¬
dous
popularity in the postwar
period. An example of this growth

A Continuing Interest in

Established

tional

television

scale.

boxes,
cans,
plastic
containers,
bags, wrappers and drums. Inter¬

industry, spurred by a revolution
resulting from self-service retail

Droadway
Ivew York 6, N. Y.

of

chemical has, of course, benefited
from the fact that the
packaging

E2CO COURT STREET, BOSTON 9, MASS.

I CD

color

of

broader

a

leather

measure

growth,

on

and

on a

total

now

impact
case

con¬

doubling

of

interesting to note that
advertising in maga¬
printed in color and
this proportion should gain as the
is

been

than

15%

about 50% of

zines

is

earnings

more

for

accounted

good value, good poten¬

sales. It is

have

stockholder

the

from $1.04 in 1949 to $2.15 in 1958
with $3.25 earnings
projected for
1959.

C

to

substantial with

MUTUAL

.

to

postwar

cerned,

Prospectus

taxes

this

million, a
gain of 174% reflecting a signifi¬
cant actual improvement in profit
margins. To a real measure, this

far

■ETist.

income

net

income

million

in the

TWX LY 77

—S-2527—

Private

VA.

years

period,

same

Federal

life Insurance Co. of Va.

products
ago) reveals

consumer

increase of 84.5%. During

an

un¬

1958

0
0
0
0
0

If you can't find a

ex¬

an

tial, and sound and liberal income. t
Currently

in

INSURANCE

LIFE

to

million

Bankers

Broadway, N.Y. 8 COrtlandt 7-5680

Exchange

possesses

$109.5

Investment

City

Exchange

panded from $69.5 million in 1949

Teletype No. NY 1-2762

&

MiLLIGAN

and American

in¬

dustry.
The
company's
second
la'rgest customer is newspaper and
publishing
which
in
gain magazine

have

E.

great variety of industries served
in

1

Tokyo, Japan

price-earnings

Registered Representative
W.

adding

to the growth
potentials of Interchemical is the

F.

Inc.

of

Yamaichi Securities Co., Ltd.

111

FRED

Company

Affiliate

cap¬

multiple.

ing in 1963.

the

write

of New York,

to

ital gains reflecting a rising earn¬
ings trend and a further upward

revision

or

Yamaichi

selling at
times esti¬
earnings.
I believe
12

over

information

current

undervalued

are

mated

k—I

o o

only slightly
the

branch offices

our

a

year.

term

NY 1-1557

Birmingham, Ala
Mobile, Ala.

two

be

Exchange
Exchange

Stock

New Orleans, La. -

al¬

last

appears

York Stock

Hflnover 2-0700

increased

1949

need

directly to end
also manufactures

American

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

history, its strong financial condi¬
tion and the good near and longer

and

Gordca

Monte

Neic

Members

per

though the dividend rate has been

Taking

compared with the previ¬

have

times

distinct

1955 to 1958, capi¬
expenditures
exceeded
$13

over

Dividends
seven

crease

years

$3.50

share
by 196*0 could well be reported.

industrial

containers,
are
now
printed and colored for advertis¬

Bought—Sold—Quote 61

Mil-

W. E. Burnet &
York City. (Page 2)

of

New

steel drums, which are traditional

were

finishes,
adhesives,
inked
polyester resins.

Phone: WHitehall 3-7830

rate

a

$9 million in marketable securities

dustrial

Exchange Place. New York 5

at

for

such

Incorporated—Fred

ligan,

from

were

30%-

consumers,

for Banks and Dealers

tirely

liabilities

tion,
the
company,
which
is
basically a compounder of finishes
making few raw materials and

brokerage service

Unlisted

all

fb

a

Basic

film packaging

a

Louisiana Securities

—

Gordon, Manager of
Dept., Bache & Co.,
York City. (Page 2)

New

haberdash¬

these substantial expenditures and
on
June 30, 1959, current assets

40% of the total market.. In addi¬

Dealers Ass'n

Security

as

Corporation

J.

Research

been successful in maintaining a
strong financial condition despite

of

accounting for

INC.

Alabama &

four-year period
1951-1954
expenditures of oniy $7 million.
Interchemical
management
has

inks,

gravure

Monte
or

ous

ings and en¬
joys
an
ex¬
tremely strong
competitive
position
in
printing and

S. WEINBERG,
GROSSMAN

and

growing

of 20%

million

chemical coat¬

Private Wires to Principal Cities

Y.

is

excess

tal

a

•

£7.

material

In the

history.
Basically, the
company

Participants and

Interchemical

sell,

ing benefits.

t

n

BOSTON

& CO.

haniwhre

polyethylene

and

dividend

Exchange

120 Broadway, New
WCJrth 4-2300

whose
confuse the uninitiated,

distributes

Member

Associate

Leading

with decided

Established, 1920

American

Toronto

Corporation

Interchemical,
name

to

In this respect, the tremen¬
dous growth in the use .of plastic
films is noteworthy. Demand for

Commodity Exchanges

Interchemical

offer

an

ery.

Exchange,

Other

as

mand

Stock and

you

Call "HANSEATIC"

Corporation

Stock

Exchange,

Exchange

Thursday, September 3, 1959

Their Selections

security referred to herein.)

any

stores,

Co., New York City

New York

American

Stock

Heady to

offer to buy,

GORDON

J.

Manager Research Department

Private

Nationwide

circumstance to be construed

no

.

advisory field from all sections of the country

solicitation of on

a

Large Trading Department

°

different group of experts

a

participate and give their reasons for favoring a particular security.

(This is under
as

°

each week,

.

This Week's

Forum

experience

Over-the-Counter

in

Like Besf

.

45,000,000

Over-the-Counter

Quotation Services
for 46 Years

tons

year.

■

Basic
own

and

Incorporated, m|ning its
dolomite, magnesite, brucite

chrome

ores

and

from

Continued

on

National Quotation Bureau

these

manufacturing the vital refractory
materials
on
which steelmaking
furnaces are dependent, stands to
page

27

Incorporated
Established 1913

46 front Street
CHICAGO

Hew York 4, H.Y.
BAN

FRANUISOO

Volume

190

Number

5878

.

.

The Commercial and Financial Chronicle

.

(927)

INDEX

An

Appraisal of Our Monetary
And Debt Management Policies
By

GEORGE

T.

CONKLIN, JR.*

A National

Fags

Prominent
of

the

insurance

"creeping

tainable

York

growth,

insists

and

Inflationary Pressures
Cover

__

and

Congress

must

full

price

concentrate

argument

employment,

stability

whole.

a

as

European Common Market: Threat

answering the

that

general

interdependent and must be pursued
Government

U-&;.■':

economist,

company

inflationists",

economic

City)

policies

An Appraisal of Our

States Treasury financing
management should be aimed at developing a balanced
maturity distribution of the debt, not as a tool to combat the busi¬

j

Characterizes

as

posals for the Treasury to
Also decries revived

introduce

proposals for

Government Bonds;
market

"calamitous

a

that can

"purchasing

a

are

the

escape

current

of

2

3

Obsolete Securities Dept.

99 WALL

STREET, NEW YORK

5

—Edward

T.

McCormick

'_

AMERICAN

q

bond."

power

manipulations of

no

discipline

at

Conventional Accounting Negates Full Disclosure

pro-

open

demand

M A. R. C., INC.

Business Recovery and the Inflation
Problem in Canada

market operations to support

open

holding that there

operations

mistake"

stocks

Wall!

99

Telephone: WHitehall 4-6551

debt

cycle.

Monetary and Debt Management Policies

Mutuel Fun and Profitability—Ira U.
Cobleigh

system be altered to encourage savings.

ness

For sunken
V

Cover

—George T. Conklin, Jr

-

inflation, and destroying the psychology of inflation. States country
has been growing faster than national
savings justified. Urges tax
and

II——jf

BUOYANT BILLIONS

Opportunity?

/

ending

on

I

sus¬

Avers the Federal

all

or

—Harold H. Scaff.

vitally

are

AXE COM? ANY .1

■MM

Formula to Check

—Raymond J. Saulnier

ilCHTtflSTtlll

B.&

Articles and News

Vice-Pres. (Finance), The Guardian Life Insurance Co.
of. America-

(New

3

—J.

Douglas Gibson

and

jq

BIG APPLE

'

supply forces in the capital markets.
The Electronics Industry

Before

entering

into

discus¬

sion of Federal financing and debt

push
as
wages
faster than labor

management, it would be helpful
to consider first the objectives of

general price level.

a

with

creases,

driven

are

the result

—H.

Leslie

13

The

policy,

in
announcing

the

these

prevented

hear¬

fiscal

ings, Senator
Douglas
"I

Grave

a

rise

the

is

of

two

proposi¬

tions:

holds,

(1) that

aim,
tion,

as

the

T.

G.

simultaneous

Conklin,

Jr.

of

ployment,

-adequate rate
a
stable level

maximum

em¬

of
of

growth, and
prices; and (2) that the govern¬
ment's most potent general tools
to help bring about the simultane¬
achievement

ous

objectives

of

the

these

three

practices

it
follows in the management of its
are

monetary, fiscal, and debt

mutually

these

objectives

compatible
in

equal
plane
That is certainly

an

There

' are

are

on

importance.

our

however,

are,

influential

and

a

economists

of

labor

further

contended

flicts

with

the

the

steam

it

by these

basic

nation

choose

ployment

Bond

Interest Rate

Ceiling

but

and

*

econ¬

See It

Bank

and

(Editorial)

Insurance

Cover

____.

Stocks

at

the

raise

chronic

between full

time

same

J.F.Reilly&Co.,Inc.

2-

40

Coming Events in the Investment Field_

Pacific Uranium

8

Century Chemical*

Dealer-Broker Investment Recommendations

8

Einzig: "Stock Commentator's Lot If Inflation Is Reversed"...

9

First Lumber

Electronic

of the News—Carlisle Bargeron____

em¬

and

Associates*

Certified Industries*
Indications of Current Business Activity_____

29

Mutual Funds

*Offering circular

less

NSTA Notes

Singer, Bean

26

than

The

decline

in

News About Banks and Bankers

&

19

of

value

of

economic

runs,

inflation

bad—most

to

all, the argument
is not so terribly

Americans

Through
have

learned

adjust to
the

various

really

Observations—A.

Wilfred

May___.

____!

4

and

more

more

Teletype NY 1-1825 & 1-4844
Direct Wires to

39

Chicago
Cleveland
Dallas
Los Angeles
- Philadelphia

war"
and

will have to break into

this

of

I country under conditions of "cold
must
be
full
employment
vigorous growth, and that
pursuit of these objectives will
necessarily involve a further rise
of the general price level. It is
held that under full employment
conditions
the
strong collective
.

bargaining
organized
exorably
'

*PartiaI

mony
tee

of

strength

labor

the

of

Mr.

is

will

Thus, the argument

pace.

general

incompatible

growth,

testi¬

the

before the Joint Economic Commit¬
the Congress, Washington, D. C.

that

that

a

stability

full

vigorous

and

recognize

price

with

and

ment

in¬

wage-cost

Conklin's

that

Report

;____—_—___

San Francisco

Public Utility Securities.-.

Railroad

St. Louis

12

21

Securities

Securities Now in Registration

Prospective

Securities

Offerings

Security

Salesman's Corner

—

QUOTATIONS?

37

—

___

26

—

is

employ¬

.

.

and

.

You—By Wallace Streete

17

IN

should
rise

The

Security I Like Best___

The State of Trade and

general price level is
on

an

page

2

Bank & Quotation

5

Record

in

Industry

in-

22

Washington

and

You_.

____.

'.

*0

,

(Only

$45

per

(Single Copy

For many years we
have

specialized in

Published

PPCCCDDCn CTflPlf C
llitrLllHEU u I U vltv

Founded

25

B.

Park

25

BROAD

ST.,

York

Boston

Nashville

Newark




Copyright

Stock

1959

DANA

Place,

REctor
J.

Patent

Office

COMPANY,

New York 7,

2-9570

to

Publishers

9576

NEW YORK

4, N. Y.

TELETYPE NY 1-5
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SEIBERT,

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Every Thursday (general news and ad¬
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records, corporation news, bank clearings,
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Other

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Bank

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the monthly prices

as

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Note—On

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of

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in

year.

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Possessions,

MORRISSEY, Editor

DANA

bound

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*

Reentered as second-class matter Febru¬
ary
25, 1942, at the post office at New
York, N. Y., under the Act of March 8, 1879.

N. Y.

year)
—

by William B. Dana

Company

1868

TELEPHONE HAnover 2-4300
Albany

S.

U.

GEORGE
WILLIAM

New

Weekly

CHRONICLE

FINANCIAL

WILLIAM

Spencer Trask & Co.

Twice

The COMMERCIAL and

Reg.

Members

THEM

WILL FIND

YOU
The Market

economic
we

gradual

Continued

NEED "HARD TO FIND"

30

gallop—

a

great national output assures
inflation
will
remain
at
a

creeping

powerful

groups

produce
text

of

our

that

Reporter's

decline in the value

a

dollar.

Moreover, it is
argued, there is no reason to be¬
lieve
that
"creeping
inflation"

goals

Our

inc.

40 Exchange Place, N. Y.

25

Our Reporter on Governments.

like

"escalators"

MACKIE,

HA 2-9000

the dollar. After

primary

the

request.

on

14.

excessive

growth.

economic

Corp.*

Research

12

as

we

maintain full employ¬
ment
and
vigorous
economic
growth
without
inevitably
ex¬
periencing a further upward push
on
the cost of living. The argu¬
ment is frequently made that the

we

request

on

15

.___

Business Man's Bookshelf

From Washington Ahead

must

we

make, it is held, must
be full employment and vigorous
growth, even if it does mean a

it.

Prospectus

Regular Features
As We

maximum

unemployment

country,

FEDERAL URANIUM

j{j

______

a

is

growth,
on the one
hand, accompanied by
"creeping inflation," or on
the
other hand, general price
stability

a

v

objective of

So, it is contended,

maximum

as

gen¬

vigorous economic growth.

number of

can,

a

unemployment,

who

argue

'

their

omists, sometimes termed "creep¬
ing inflationsts," seriously
con¬

conviction.

we

curb

take

of

choice

whether

to

degree

these

is

fiscal

out of the wage-cost push. Such

objectives
are
not
mutually compatible. Specifically,
the
basic
question
which
they

that

and

within

or

r.

■

price

ment

a

Senator Douglas' statement sug¬

that

it

rise, but they can do
only by precipitating a suffi¬
ciently high degree of unemploy¬

opera¬

tions."

gests

eral

■:

quantity

so

/

■

■

achievement
an

monetary
have

to prevent

power

na¬

a

at

the

*

/....•••••.• ■

.

by Federal budget
That is, the argument

authorities

*

President Eisenhower Warns of Danger Inherent in
Continued

and

money

surpluses.

should

we

*

i-.,,.-,

and

act

Reserve restriction of the

on

15

KRATTER CORP.

be

monetary

general

BROADCASTING

•

that

could

agreement

Subject When Anti-Gravity Is

Discussed—Roger W. Babson

of the country
determinedly to re¬
strain
spending
by
consumers,
business,
and
the
government.
This
they could do by Federal

believe
there

continues

price

if

Argument

authorities

would

stated:

that

argument

general

METROPOLITAN

rising

a

Gravity Is Not

The Inflationists'

SUPERMARKETS*

1975

Hoffman

government
economic

Looks Ahead to

up

productivity in¬

25

Park Place

New York
REctor

7, N. Y.

2-9570

4

The Commercial and Financial Chronicle

(92,8)

made

ments

Observations..

community's

investment

The

ever-growing emphasis on capital
profits in lieu of investment in¬
come,
is likewise strongly per¬
vading
the
mutual

fund

field.

This

trend

redempti on

A•

Wilfred

of
mil¬

During the first seven months

they rose to $501

the

lion from $243 million during

equivalent period last year. Cal¬
culated as
a
percentage of the

public's total holdings on an an¬
basis, the 1959 figure is 6%,
up from 4.6% last year.
The
industry averagfe of re¬
demptions to sales on an annual

nual

has

30%

quite

foregoing record

"fanfare

major

which

funds"

experience

startling
the

of

year

45%.

to

Included in the

one

last

since

risen

basis
from

the

eagerly

was

the public at its

grabbed by

last

es¬

During
this year's first quarter $10.8 mil¬
tablishment

lion

worth

deemed,

re¬

were

second

cxf

sales

units

sales of $13.1;
quarter re¬
million far

against

demptions
offset

year.

its

of

the

during

$13.3

down

to

,

$9.2 million.

This first year

liquidation in the
face of an 8%—or so buying com¬
mission (load)!
The

cashing, are unavailable. At any
rate it seems to be completely un¬
or

of

contractual

the

shall

plans

as

specify

precise motives of all liqui¬
is

unobtainable

short

of

a

the

wrong people—at the frantic
initial offering time.
In general,
the
as

large increase in liquidations,
is

usual

markets,
the

during

to have followed

seems

desire

cash-in

to

partly for the

stock

rising

purpose

profits,

of doing

a

bit of speculating on their own...

Surely the motive has

not

been

a

net asset

value, not on investment

income.

(The

panies Act of
that

income

ordinary

Investment

cluded in prospectuses.)
record of

Com¬

1940 only requires
figures be in¬

income

the

The past

capital appreciation, with

disregard of investment income
yield, is used more and more by

that

said

is

the

his¬

higher tax-bracket individ¬
uals, in boosting their after-tax
yield because the portion of their

a

ignited

of

the

a

crisis.

as

capital gains tax ceil¬
Conversely, the buyer of a
tax-exempt issue which sells at a
discount, is penalized, with a re¬
duction of the

the

commonly indicated
yield, because the portion thereof

of the autumnal equinox—

derived from appreciation to' par"

changing of the

This

is

seasons—a

by the maturity date is subject to
tax on the capital gain.
The tax
exemption applies only to annual

pe¬

riod of celestial disturbances,

vio¬
hurricanes and other
of
the weather.
Mr.

lent storms,

vagaries

Khrushchev

the

and

interest

autumnal

with

this

"windfall" event of the hold¬

the

er's death.

season

sympathetically affect the
equanimity
of the EisenhowerKhrushchev meetings."

Perhaps

from

the

ings

bank

the

stock

far

year.

selling

a

$12,000

lower-yielding

deposits

and

-

sav¬

commer¬

.

appreciation psy¬
rather than yield factors

capital

chology

to

53.02%

of

the

pay¬

and

parking

Pennsylvania

BOND

Monthly
R.

September
Letter of J.

Investment

Williston

out

a

with

&

long

the

It

Beane.

market's

way to

*

a

ing

of Decision."

It

was

month

in

continue
are

of momentous events.

September,

Youle Drive-

Govern¬

On Gate Com-

issues

the

of

to

Vice

than

College in Mt.

a

52%

tivities
John

1929,

that

on

issue with

the

New

York

tax

ranch
pany.
years
as

State

Department

invites

a

These

and

with

issues

other
a

low

with

are

selling at deep discounts,
advantageous, particularly to

Natural Gas

Established

ALLENT0WN

•

LANCASTER

I

e

!

hundreds

supply

can

i|

of

thousands of

of ambitious

g

I

Co.

Americans eager to invest in speculative venture.
Call Dunhill for

■
J

names

complete

mauling

list

I

re-

j quirements.

j

cprr.

I

1919

t

lists

Canada

I

newest

catalog

&

Latin

America.

Edition

limited. Write today for your free
u

copy to

j

I

premium "qualitycovering the U. S.,

5,000

tested"

J

I

!

Dunhill's

i

*

R. S. Dickson & Company

Dept. SM.

i
r

■

I

.

INCORPORATED

123 South Broad St., Phila. 9 • PE 5-7330

WO 4-8400

original

television.

|

,

•

being the
on

LISTS

1W

features

Broadway, N.Y. 5

range

include

a

CM AILING

and

hence

North Carolina Natural Gas Co.

COMPANY, INCORPORATED

of

Government
coupon

your

STROUD

wide

date.

trading markets in:

Piedmont

a

broadcaster and has been ac¬

weatherman

|
We maintain active

in¬
ac¬

cover

purebred cattle
and an oil exploration com¬
Mr. Youle for the past ten
was
associated with NBC

credited

revenue

municipal

Youle

the operation

comparable maturity

a

Clinton

which

Similarly, the Treasury
IV2S
due
October,
1963,
yield
3.19%
after
taxes, against only
2.70%

other

terests and

with approximately the same ma¬

in

111.

Carroll,
His

turity date offer an after-tax yield
of 3.06% to corporations and in¬
are

of trus¬

tees of Shimer

are

Triple A grade tax-exempt mu¬
nicipals. For example, New York
State obligations due in 1961 yield
2.63%,
whereas
Treasury
2l/zS

who

the

of

board

obligations)

taxes

Chair-

-

man

level actually yield¬

a

after

more

its

meet

and

p a n y

(which presumably will

down to

ing

the

market that several of

shorter-term

Treasury

•

"September has proved itself to
a

the

is

Mr. Youle

is President of

bracket.

*

leading brokerage firm bear¬
the caption, "September — A

Month

ment Bond

dividuals

fall."

St.

MARKET

"Snafu-ed"

So

is well set forth in the

points
pricing far
of
contractual
funds
where the outrunning rises in earnings and
data are available, about 3%
of dividends "the present bull mar¬
ket parted company with inves¬
the
funds
subscribed
for
have
been
c\shed-in during the
To¬
first tors a long time ago.
Whereas the total selling day's
year.
rising corporate earnings
charge is 11 % if the Plan is carried bear the same relation to existing
through to
the
entire
12-year stock prices that a safety net does
period, such is the early accel¬ to a trapeze artist; that is, they
eration that, if it is terminated in offer
some
insurance against
a
the first half-year, the deductions complete disaster but still leave
amount

Chicago

TOPSY-TURVY

The setting of market prices to
follow

I




un¬

(In

ten-year

'

•

flow

a

the

Treasuries,

cial banks' savings accounts at the

seasonal tendency
is to rise in

Public Service of North Carolina

^PITTSBURGH

be

into

market

your

120

will

funds

high-yielding

Lehman

inquiries.

&

there

individual

of

usually

authorities.

Municipal

a

discount is the provision for their
immediate repayment at "par" in

J. C. Youle Joins

specialty of Stroud is the marketing of

Our

capital

Treasury issues selling at

some

will not

normal

to

not

Another advantage applicable to

that the usual weather abnormali¬

associated

income,

gain.

equinox will arrive in Washington
together. What kind of storms the
combination
will precipitate, no
one can tell.
But, it is to be hoped
ties

the

ing.

in 1959

of

month

month
a

—

to its reputation

coming from

of the 25%

spark

up

return

ultimate appreciation to the
prin¬
cipal amount due, gets the benefit

World War II.

"September promises
live

indicated

-

be

by

touched

Thursday, September 3, 1959

.

are

PA. AUTHORITIES
sewer

in

reached

.

end of the September quarter—
emphasis on capital appre¬
premature re¬
ciation rather than yield, carries the summer, top off in September such
delay being occasioned by
importantly
through to the operations of fund or October, decline into Decem¬ the penalty of loss Of interest ac¬
prompted
by
s t o c k
exchange
Their turn-over per ber, rally into March-April and crued since
portfolios.
brokers
July 1 on withdrawalsr,
who, having previously
decline into June.
annum is estimated at about 12%,
put their customer into a fund
which is the equivalent of about
which is considerably higher than
"Early termination of the usual
with compensation far higher than
exists in other institutional port¬ summer rise tends to be an un¬ one-half of 1% of the principal
on
a
listed^ stock, subsequently
folios.
/
:
■
/
A.
favorable stock market factor. It of a bond.
get
him
out
for
the
purpose
In the general belittlement of generally portends a weaker than
Some funds
should also flow
of un-freezing the account from
inactivity. Pressure toward fund- income yield it muSt not be for¬ usual fall and winter. That was into the Government bond market
to-fund switching via redemption gotten that the justification for the the case in such important turn¬
in proceeds from lower yielding
also comes from all categories of expectation of passing on a secu¬ down years as 1957, 1946, 1937 and
stocks.
But
such
transfers
will
salesmen.
Or, on occasion, the rity at an advanced price must 1929."
holder just feels like taking a prof¬ rest in part at least on the fact
-Such
"seasonal
timing"
has probably be limited by bewilder¬
it in a high market range. In any that some purchaser will
get a been castigated by Lord Keynes
ment, and disappointment (along
income.
Otherwise, as exerting "an absurd influence
event, in all these categories, the satisfactory
with drastic shrinkages) over the
attention is centered on circum¬ investment is just a Ponzi Scheme
on the market," and contributing
former's performance by any in¬
stances surrounding capital appre¬ of passing on a security by the
to
his
"casino" dubbing of the
vestor who has made this logical
ciation—certainly not on "drab" chain-system routine of the next New York Stock Exchange.
fellow automatically paying up¬
income return.
But
we
prefer to go back to move over the past several years.
ward, with the only catch being
Abuse in selling seems to be
Mark Twain for bur authority in
who
will
ultimately break the
rebuttal. Said Twain through the
particularly strong in the accumu¬
chain ("not on me").
Or putting
lation plans area, of which over a
mouth
of
Pudd'nhead
Wilson:
the investing process in a Musical
million are now outstanding. This
"October is one of the peculiarly
Chairs game setting, with the only
is so particularly because a large
in
dangerous months to speculate in
question of who gets left when
proportion of salesmen work at it
stocks.
The others," he went on,
the music stops.
on only a part-time basis.
CHICAGO, 111. —John Clinton
Be he
"are
July,
January,
September,
*
*
barber
or
policeman, the partApril,
November, May,
March, Youle, President of the Executive
Club of Chicago, has become asso¬
timer is apparently attracted
to
"THE STOCK MARKET
June, December, August, and
ciated with the firm of Lehman
off-hour fund selling by the bait
February."
TRAPEZING ABOVE
of the increased sales commission
Brothers, 39
THE SAFETY NET"
So. La Salle
accruing to him the first

It

demptions

of

issued

that

"The

From this week's Market Letter

bonds

and

Poland

of

SALUTE TO THE SEASONS

school, water,

market

time,

salesmen, and socalled expert analysts, in citing
And from the current Wiesennon-recurrent past-performance as
berger Investment Report entitled
the basis for appraising relative "The Late Summer Rise."
managements,

*

A

that

to

up

—to

yield
is generally omitted in their pub¬
lication
of
periodic
results by
fund managements, for the atten¬
tion
of
press
and public.
The
"story" is almost invariably con¬
centrated on the period changes in
Again

bull

greatest

peak, which was not to be sur¬
passed for about 25 years.
Sep¬
tember, 1939, was a fateful month
for Europe and the world. It was
the month
that ; Hitler invaded

investment

larger

actually made.

The

plan,
his commission amounts to $273
Gallup Poll. Nevertheless, in the
during the first year.) Often they
case
of
the
above-mentioned
have
little
knowledge of what
Fund leader, it is established that
they are selling, and also load up
the huge cash-ins stemmed from
the wrong people.
gross
and frantic overselling of
In
the
case
of
two
groups
the original offering—to many of
dates

on

he has

the

tory,

"managerial quality."

Moving!"

"Keep

May

July last reached $73 million, up
$41 million in July, 1958.

of

investment is held before the time

their

from

is

a

as

longer.

privi¬

year,

indus¬

below,
this
break-even period is considerably

lege, redemp¬
tions during the single month of

this

the fund

of

we

exer¬

of

cise

cash-in

of

case

whole, inclusive data
regarding the length of time the
try

case

fund-

holders'

the

accumulation

completing his in¬
purchases is penalized be¬
has
paid the selling

charge
than

for

the

tinuing recent
se nsational
in

the

(without even making allowance
his personal income tax in¬
roads)
with receipt of nothing
for income on his capital.
In the

ele¬

situation. Con¬

rises

or

perhaps it purposely
that it takes three
years
or
so
of the fund's in¬
vestment income,
to recoup the
selling
commission
or
"load"

lighted,
for
example, by
in

yield,

is disregarded,

strongly high¬

ments

In

realized,

is

numerous

the

over

concern

Fund's investment income.

an

The investor

he

cause

APPRECIATION

one

before

tended

"THE THING"

30.18%.

are

who discontinues

plan

CAPITAL

of

carried

ductions

MAY

WILFRED

BY A.

end

the

at

they amount to 53.01%; and
for two years, the de¬

year,

if

the Plan-holder.

by

terminated

If

.

Member Midwest Stock

CHARLOTTE
Atlanta

Columbia

Exchange

NEW YORK

Greenville

Direct Wire

CHICAGO

Raleigh

to All Offices

Richmond

i EEH3IQ j

| INTERNATIONAL LIST CO., INC. j
j Dunhill Building: 444 Park Ave., South»
New

,

*

MU

6-3700

Yotlfr-16,
TWX

N. Y.
NYU

3153

f
}

Volume

Number 5878

190

.

.

(929)

STEEL

The State of

<A

PRODUCTION

ELECTRIC

OUTPUT

Mttiuel Fun and

;

CA RLOA DINGS

TRADE

RETAIL

PRICE INDEX

AUTO

Profitability

There

the

Containing soma random notes on the spectator sports, horse and

PRICE

dog racing, and pari-mutuel betting on same;

accompanied by swift

variety

smaller.

INDEX

of certain

comment

Kennel

companies operating to profit from these lei¬

Club

1949

Sometime

the

Office

in the mid-summer
purchases remaining strong,
Business Economics reports in the August issue of

of

the

"Survey of Current Business," monthly publication of
Department of Commerce. The rate of industrial operations

dustrial

were

amount

of

Association.

time

of

a

Both

turing
rate

—was

factory and trade sales proceeded

an

of

enlarged

in

sustained

ported

at a brisk

in

and

has

in

The

expansion

of

orders each

consumer

rose

purchasing

is

based

They're
taking
this
leisure
prob¬
lem
quite

rates of

prior months.

months

of

the

July continued at the high

Retail sales in June and

services.

Sales of motor vehicle dealers in the first

this

Consumers also stepped up their purchases
this year, although much less

of other durables

rapidly than for autos.

of

nondurable

last

year,

rather steadily from

rose

the

a

our

sales reached new highs prior to the onset of the
steel work stoppage and the vacation season.
The sales volume
Factory

mostly

concentrated

\
The work stoppage in the steel industry reduced manufac¬
turing and mining output in July and early August. Steel-making
facilities since the walkout have been operating at 12% of rated

capacity, yielding a weekly output of 350,000 tons of ingot steel.
This compares with a mill rate of 92% and an average weekly
output of 2.6 million tons in the April-June period.
of

the

steel strike

on

other

industries

has

so

far

The impact

been

mainly in

a

much, if

hundreds

beached

July of this year. For the first seven months the year-to-year
gain has been 6%—comparable to the increase in personal income
over this period.

buying,

television!

of leisure—too

in

affected by some anticipatory
in the metal processing industries.

enough, the tract came out foursquare
for
commercially
spondon't get alarmed, now.
long-hair dissertation on leisure
is coming your way in this
column today.
We do have lots

seasonally adjusted rate of $11 billion in March 1958 to $12 billion

was

for

sports, and in subsidizing art and
cultural pursuits.
And, curiously

No

goods stores, which were little affected

by the recessionary forces

this past week

Please

above a year ago.
The rise in the first seven months of this year
in sales of this group brought them to a record level—8% above
the corresponding period of last year.

by the

stint

Picked oat

a

four

years

ago

tract of land at West

a

this

manner

applied

to

the

and

dog

now

four

years old and turning in new hi^h
totals of gross and net this year.
in
1958
the pari-mutuel handle

sells at 2 A.

(possibly
bettor!)
is
Monmouth was $8V2 million. 1 This year it
Club at Oceanport, should exceed $10 million and deNew
Jersey,
where horse fans hVer net earnings in the order of
,from the. Metropolitan area of $300,000.^ AU of. which is a tribNew York are wont tp congregate Ufe
to
venture! some investors
on
languid summer afternoons, who
perceived
an
opportunity,
after a refreshing boat ride to ad- supplied capital and built a faciljacent Atlantic Highlands (and to ity giving enjoyment
to
thouthe Park by bus.)
In a racing sands, employment to many, exseason
of
50
days
Monmouth panded income to the community
grosses
around
$7
million.
In and a rising trend of profitability
1958 a net of $636,244 was real- to shareholders.
Southland combetter

A

property

known

Jockey

Park

common

steel strike—but

is

common

ized—74c

—the Totalisator—and the

v.

n

preceding year.. San Juan Racing

thousands

today is to reflect upon

which

launched

Club,

u

you count

of

remarkable calculating machine

in

that

Kennel

corporation,,

,

accommodations

better

u?

•4.i«

Cobleigh

Party published a 46booklet urging the British
Government to spend $26 million

sored

Sales of the

furniture and household apliance stores registered a marked rise
arid, maintained the new high level through July at a rate well

Sales

U.

Labor

on

enterprising manage Mile
High

same

suitable track were built. At
that point, and in the best traditiong of enterprise capitalism, a
A
million dollars was raised by
public offering of the stock at $1
aiSmv.
? share on the per share; the park was built; the
5,010,585 shares outstanding. This
oranW
T+
is
finn+VilnnH
permit granted.
It is Southland
compares
with 11c a share the
Haclng

page

year were 20%
above a year earlier and
ahead of the corresponding period of 1957. Following a spurt in
June, new car sales slackened during July. With car inventories
at a high point, dealers have good supplies for the model ehange-i
over period.
seven

to

c

Ira

seriously over
in England. Only

as

all

r

lei¬

of

in

amounted

years

ment

favorde

^959'
$23»34®'265 WJ*S bet' of
Soift6 track s net share was
?oJ?07'946- other sourcesP created a
JhlS SUm
US I
'
532 from
a

pur-

suits

demand has strengthened for practically all major types of goods
and

we

sure.

by 25%.

broadly

vast

the

a

share.

a

$4,000.

The

half years old but its Comman-

$1

jy[empbis, Arkansas (four miles
and the Club- ,
t of Memphis) as ideal for a
house, replete with bars and din- dog track.
The gtate of Arkarisas
ing rooms, seats 2 000.
For the
agreed fQ grant a racing permit if
fiscal year ended April 30>

spending

are

progress

first six months, sales and new

sums

on

goods

been

the

total

fea¬

in

publicly

for 12,000 standees;

of

livelihood;

for durable goods.
Also the high
activity—both residential and nonresidential
July. In particular, notable gains were re¬

0ver

l0UriSLnttra?10n^ acconimodation
Its grand,stfnd
has 6,000 seats and

from

sources

produeers.
A market strengthening of
in the industrial machinery indus¬
tries since early 1959 when the volume of new orders received
was considerably expanded and sales turned upward.
During the
capital

by

demand

spend

away

.

pace

to

offered

Denver

Common

worth totally around $10,000;
dividends
paid in the Last

seven

San
Juan Racing
Its only three and

Rico,

dante Track has become

now

able

demand

construction

Puerto

are

us

by income gains elsewhere. Overall prices in wholesale and retail
relatively stable.
,

and

In flat racing there's a track in

increasing
most

now

holders.

of

tne

about offset

markets have been

effects

financial

and

earns money

sal Controls but for track stock-

the

by the steel strike. Personal income was little changed from the
high June level, seasonally adjusted, as payroll losses primarily
mid-July

we'll-

doubt

no

ex¬

panded further, as did employment, except in those areas affected

in metal and railroad industries after

soon

all be reading a learned tract on
the economics of leisure—the in-

business

at

A

the

1,000 shares
costing
$1,000
originally
have
not only for Univer- since been split into 3,000 shares

surely pastimes.

Business activity continued at a peak rate

Class

its

and

But

~

and

of

dog tracks than

they are
sport is
catching on rapidly and some of
the parks are interesting money¬
makers.
For instance Mile High

Enterprise Economist

FAILURES

COMMODITY

consumer

patron

scale

large
fewer

are

horse

much

PRODUCTION

BUSINESS

third

Totalisator machines is dog racing.

By DR. IRA U. COBLEIGH

.

FOOD

period with

5

The Commercial and Financial Chronicle

.

shafe on the 859,298

a

mon

shares-hutstanding. Com-

has paid dividends since 1951
—the present rate 45c. Stock sells

mon

are

folks

of

who

Massachusetts

the

to
run

eager

grey-

Wonderland

at

Park since the State's share of

have
gained
partly because the
are
held at night.
By all
the biggest trotting track in

Trotting

oJd

indebted

bounds

at 8.

over-the-counter

sells around IY4.

The

tracks,

wide popular.ity

"handle"

there

to

goes

the

the

State

Age Fund.
Revere Racing
Association, which runs Wonderland, has enjoyed a steady sueThe company that makes avail- America is Yonkers Raceway.
In cesSj paying continuous dividends
able this Totalisator at our race 104 nights of racing in 1958 the to stockholders since
1946.
The
tracks, supplies and services pari- fantastic total of $190,683,574 was present rate is 60c and the shares
mutuel equipment, and issues the bet at Yonkers.
This gross deliv- seli around 7%.
Sole capitalizatickets
(winning and otherwise) ered to the State of New York tion consists of 1,296,750 common,
is
Universal Controls
Inc.
This $15,600,000
as
its share of the shares.
company is the result of a merger
handle;
and
Yonkers
Raceway,
Fr0m
the
foregoing you can
in 1958 of Universal Products and Inc. collected $10,436,090. Net inperceive that racing is a big inAmerican
Totalisator.
General crement to capital for 1958 was
that its profits all center
exciting

of horse

sports

racing.

races

odds

'

Old

senger cars

the 927,000 shares around pari-mutuel betting, and
1958 dividend was that the percentages flowing to
at- the several states (variously be¬
ing equipment used not only at tendance, and in gross and net fween
g%
and
10%
of
the
race
tracks but by rail and bus income at Yonkers Raceway have
"handle") are significant sources
lines,
restaurants
and theatres, created a considerable following 0f revenue.
You will also note

although

Other corporate

coal and iron

ore

and

in the movement

of freight traffic.

sidiary,

Activity in the major metal fabricating industries since midhas been maintained by the drawing down of steel inven¬
built up earlier in the year.
Combined assemblies of pas¬

July

tories

and trucks in July held close to the high June volume,
fairly considerable decline normally occurs between
these two months. Production in August, however, is expected to
show a substantial drop as model changeover operations get into
full swing during the month.
a

Nationwide
Bank

Bank

clearings

Clearings 12.5% Above 1958 Week

this

week

will

show

an

increase

compared

try, indicate that for the week ended Saturday, Aug. 29, clearings
for all cities of the United States for which it is possible to obtain

week

last

year.

Our

above those of the corresponding

preliminary




totals

stand

at

$22,815,058,322

Continued

on

page

27

and ticket

machines

Double

issu-

a share
outstanding.

$3.27

activities include

control

equipment, coated copper
and
aluminum
wires, and automatic fare and toll registers.
Controls

is

Inc.

on

5% in stock. The steady rise in

^

manufacture of electric relays and

Universal

with-a year ago. Preliminary figures complied b.y the "Chronicle"
based upon telegraphic advices from the chief cities of the coun¬

weekly clearings will be 12.5%

a
wholly owned submanufactures the Daily

Register,

class A (non-voting) com,

,

,

+h

„

t

mon stock traded over the cou t
er, around 32.
People who invested in this property

nine years

that early investment in the right
racing
equities has been most
rewarding
And
if
y0u
think
<jya»yg overstressed low priced se-

curities,

then

why

not

consider

remarkable Los Angeles Turf Club common
volatile market performer. Earnpercentage gain
in the market (Santa Anita Track)?
You can
ings have long been in a
vaiue of their shares.
pick up a share for around $70,0001
trend with sales
a

gaining over 10%

in

the

60c

year

enjoyed

a

vaiue uj. men

^

(ended

share may not seem

a

have

Earnings of around 55c

3/31/59).
to

fiscal

last

agQ

ex¬

citing in a stock selling around
18Vz paying 30c but there is a
lot of

in the issue based

romance

increased

the

on

number

of

race

tracks in operation each year, and
the

of

totals

rising

bet.
split

money

Moreover the stock has been
2-for-l

in

3-for-l in 1956,
4-for-l in 1959.
presently outstanding

1946,

2-for-l in 1958, and

There

are

8,993,864 common shares listed on
American Stock Exchange.
Ani¬
the issue at the moment
possibilities of off-track bet¬

Correspondents inprincipal cities

mating
are

throughout the United States and Canada

ting (employing Totalisators) and
rumors of a possible merger. How¬
ever

may

you

Controls

is

Universal

judge

common,

there

admit

no

have to
other equity

like it.

No

race

money

track

UNDERWRITERS AND DISTRIBUTORS

you

would

OF INVESTMENT SECURITIES

make

these days on just the ad¬

missions-and

entry

charges

and

drink

It's the betting "handle"

cessions.

So let's

that

pays

the dividends.

look

at

few representative

a

Dominick

Dominick

con¬

the program, food and

race

parks and see how the Totalisator

&

Members New York, American & Toronto
14 WALL STREET

Stock Exchanges
NEW YORK

„

6

(930)

The Commercial and Financial Chronicle

the

Conventional Accounting

untrained

investor.

The

of

an-

alyst, who is accustomed to using
financial statements, accepts the
traditional

Negates Full Disclosure

and
of

form

of

balance

income statement

him

sheet

sible

the

to

Accountants

financial

by

failing

to

accounting presentations.

make

meaningful

more

This chastisement

late

conventional

from

comes

C. P. A.

a

than

Stock

in such

make

type of balance sheet and income statement "might
in Sanskrit." He suggests a brief, intelligible

types

well be written

as

showed

that

500,000

this

.

in

there

States

United

these

are

about

now

12,-

corpo¬

there

about

this

In

try

We

our

present the information
inimitable

own

in

facts

are

fashion

—

presentation of financial
continue to cling blindly

we

tradition

to

to

—

the

classical

part owners

forms of balance sheet and income

the public¬
ly -owned cor¬

statement

porations

and in prospectuses.
Over
the past two decades, particularly,

•of

which

closure

for
the

of

the

accovu nti ng
p

r

f

o

sion,
and

e

s

information

would

and

reports.

the

also

the

age

believe that
would be

owners

profession so laboriously and
expertly deduces, assembles and
presents. One would think that,
our

at this advanced
state

and

of

socially sig¬

capitalistic

our

economy, our teachers and

tioners

might
developed. an

have

practi¬

created

and

up-to-date

tech¬

presentation

nique for the
lions

cf fi¬

information

to

these mil¬

of

corporate owners in a
way that is both easily understood
and

meaningful.
teachers

our

But

what have

and

practitioners
along this line? I'd say —
very little—or practically nothing.

done

Over

the

past

several

decades

the

accounting profession has de¬
veloped procedures for recording,

assembly ing, interpreting and pre¬
senting data for the edification of
the

and

financially

so¬

phisticated—for

the managers of
corporate
enterprises
and * the
technical analysts. But
they have
not

given anything like proper
recognition to, or evidenced ac¬
tual awareness
of, the social-eco¬
ken
As
a

revolution

out

blissful

and

which

has

apathy

existence

of

even

in

economy

to
an

more

these

vital

days

to

of

our

ideo¬

digested> and trans¬
mitted by the
accounting profes¬
sion.

hind

a

nual

the

I

But
has

think

useful,
form

I

of

traditional
the

to

how

lay

many

individual

an

financial

training, set
a

the

wonder

position

without

how

tried to put themselves

ever

the

time

now

presentation

investor?

in

is

the

ourselves

ask

really,

of

have

that

to

come

or

adrift

accounting
the

on

of

sea

formal balance sheet and income

statement, and attempting to find
his way through to some sort of
adequate appraisal of the com¬
pany's financial affairs. This may
sound

ridiculous, but I know of a
where, upon receiving the

case

balance

sheet

company,

of

prosperous

individual

an

dubious

very

a

about

became

the

invest¬

ment

because, after observing that
the total of
asset? equalled the
total of liabilities, he concluded
that
the company
"Owes every

affairs, I place a
substantial share of the
blame on
the shoulders of
the accounting
profession.
recognize that these inves¬
as

fully informed

practicable

and

that

this

by Mr. McCormick before

Acco"nt'n?

bf'tder, Colo., Aug. 26,

Association,

1959.




Unaware

that

only a convention that capital
stock, reserves, and surplus are
listed as liabilities, suqh an inves¬
tor may well be baffled
by the
meaning

of

they

exnlained.

are

It

is

these

accounts

extremely

sheet

1

the

ordinary investor.
principal

to be that in

disclosure

for

hand.

the

that,

He

mistake

should

be

in

would

buying

be

earned

of

the

forth

in

in¬

an

company,
a share
in

the

he
an

present
amount

balance

sheet.

These and other conventional

ac¬

counting concepts, reflected in the
accumulation of figures called the
balance sheet, add
up to an unas¬
sembled jigsaw puzzle to the
non¬

to be

income statement is
likely
pertinent and inform¬

more

ative.
not

But, by itself, it still does

permit

an

appraisal of
We

that

are
we

only
our

the

so

are

adequate over-all

the
in

in

the

woods

danger of

trees.

The

seeing
journals of

profession storm with disputes

about

accounting

theory and the

meaning and application of
counting concepts.
But the
fession

has

not,

enough

attention

problem

whether

of presentation of

is

a

meaningful

have

lost

presentation.

achievements of the profession in
making
the
modern
financial
statement

index

of

full

a

the

and

financial

an

enterprise. But

to

forget

dividual
dex.

that

only

Acomplete
position of

have tended

we

make

can

trained

in¬

of that

a

in¬

use

And while corporations have

made

significant progress in sim¬
plifying other parts of their re¬
ports,

relatively

been

little

made

in

Let

make

me

it

form

clear

of

that I

am

not

dealing here with substantive
accounting concepts or with dis¬
putes

in

accounting theory.
is

concern

entation,
cinles
cipies.

with

methods

rather
As
as

I
1

than

My

of

prin-

thP,,
Dai

tne

sheet, the income statement
surplus analysis are really an
integrated
presentation
of
the
ance

and

status

of

the

concerned

enterprise.

with

disclosures

to

the

I

fact

am

that

in

ordinary untrained

requlre^the"making TsepSa'te
malting
or
separate
require

tne

statements,

often

over-elaborate

containing
and in a

detail,

as

to

the

yet,

ac-

pro-

paid

the

basic

usual

form

accounting facts
presentation

to

a

in

various

categories
breakdowns

charges,

by
of

deductions through retire¬

»■

.

Progress

.

>p-

,

,

simplifying

in

reports

and

prospectuses

that

information of importance to

skilled

a

ficed.

does

not

mean

analyst should be sacri¬

I suggest

that the story be

told to the uninitiated and that the

supplemented

with

the

traditional, detailed presentation.
Seventeen

into

reserves

capital' assets,
types of capital

ol

f annual depreciation

accruals to

the

,arrying
value
of
various
types%f equipment-and all of the
above

breakdowns

given

for

a

-

three-year

period.
In addition,
note will explain the differ¬
ence
between
charges
to
plant
asset
accounts, depreciation
ac¬
and

counts

maintenance

pairs—give details
tion

policy

tain

with

natural

the

tory
for

the

of

respect

and

a

re-

to

17

ray

eight

with

years

the

ports
trial
cal

depreciation

the trained

prospectuses

companies.

have

of

found,

of

asset

10

indus¬

fairly typi¬

a

statements

as a general

current

rent

In

financial

is broken into

I

rule, that

statement
items.

alone

The

cur¬

liability section contains six

items. And

though the typical in¬

statement

come

be

may

deemed,

by ordinary standards, to be an ex
cellent presentation, yet, in
going
from sales to net
income, a total
of 25

items may be set forth, and

from

the

the

statement

of

beginning of the

there

is

of

year

surplus

at

additional

an

surplus
to

year

10

at
the

end

lines

of

items.

-The
ment

the

inclusion
in

use

fantastic

a

of

item

of

such

a

state-

prospectus destined for

investors

proposition

vestor could

and

assumes

that

an

would peruse

the
in-

it,

by

item, through this maze
Though no single
item may be out of
place—every
item representing one of the necof

tively

disclosure.

essary components of

a

calculation

has

great extent

a

which

he

cannot

understand; and
has, as its most likely re¬
sult, a phobia for reading any
financial statements.
'/
Other

notes

to

statements of

a

be

as

they

are

just

investor

that

capital,

industry has
And the vital

ments

but

need

and

Yet,

train¬

financial

the finan-

only

to

I

con¬

generalize the
state¬
financial
information,

of

that

we

need,

also, to re¬
organize the form of presentation.
Just

as

realize

we

that

the

formaI financial statements really
ajm at
integrated presentation

an

to

an

expert,

should

so

s?uSi.n« *

our

aim

v"..™

statement and the surplus analysis
whatever pertinent facts are essential to

understanding of the
position and operating

an

financial
results

of the company.

It should

present them in layman's language
and in an order which follows the
rational order in which an inves¬
tor

would

normally

Admits
I

the
of

It's

cannot

No

ask

Easy

believe

in¬

for

t[ons

has

It

the

essential

formation

that

Task
we

lack

accounting
to

necessary

been

useful

Sg
share

of

ownership

field

new

useful

be

to

millions

the

who

investors

nary

the

to

has opened a
profession—to

the

for

to

of

ordi¬

supply

the

equity capital.
_

•

PrOOranfl 56SSIOnS
^

f

iOT

Nat'l Bank Women
Wis.—Catherine

MILWAUKEE,

Cleary and Arline Laedtke, Co-?
of the Program Com¬

Chairman
mittee

National

the

National

of

Association

Bank

of

participate

in

related

sions

Women,

32 Association members

announce

will

1959

the

for

Convention

program

to

ses¬

professional

in¬

make

a

reasonable

of

First

Wis-

Milwaukee.

Miss Laedtke is Assistant Cashier

°f the First National Bank, Oshkosh, Wisconsin.
Sessions

National

37th

this

of

Convention of the Association
to

be

in

held

—25. Miss Marie B.

are

Hotel

at

Milwaukee

Sept. 23

Loeber, Cash¬

Wisconsin State
waukee,
is
general

Bank, Mil¬
convention

ier,

Chairman.

Ernestine

V.

Dr.

Moore, Per¬
Wilmington Trust
Company, Wilmington, Del., will
present a major address on the
subject of letter writing on Thurs¬
day morning, Sept. 24. Dr. Moore
has chosen, "It's the Style" as the
topic of her speech.
Salesmanship will be the sub- '
ject of Mrs. Mildred Muller, As¬
sistant
Cashier,
First
National
Bank
of
Memphis,
Memphis*
Tenn., also a featured speaker at
the
Thursday
morning
session.
sonnel Director,

entation

Mrs.

of

title

The

will

Muller's

be, "It's

a

pres¬

Woman's

World."

.

Ten Panels and NABW member

participants
scheduled' for
the
morning of Friday, Sept. 25 are:
Commercial

ingenuity to develop a means
furnishing to untrained inves¬

tors

>

management. It has been useful
to bankers and the large institu-

Schroeder

However.
However,
.

useful

Miss Cleary is

or

not

been

has

scheduled

we

dense

:t

the

no

tJ°J& * ^
tail which overburdens
think

Accounting

the

by

Vice-President

exhaustive.

presentation.;»
presentation.

told

banking subjects.:

analysis.

cial

is
v

consin Trust Company,

seriously

accounting

that story

part of

company

typical

investors who have had

in

de-

the rela-

financial

the

prepared and
distributed for the information of

ing

to

on

individual

small

attract

B.

which

way.

come

for the necessary supply of equity
and venture capital.
In order to

by

analyst this note

will

traditional

them in the

answer

economy

pend to

policies

is a revealing statement.
To the
ordinary investor it is a frighten¬
ing jumble of words and numbers

years

and

set

the

Our

his¬

summary

20-year period.

a

To

SEC

with the Exchange
I have reviewed thousands of re¬

teachers

investor in order to anticipate his

cer-

formation about the company.

Experience

and

They will have to put
themselves in the position of the

r

deple-

owned

resources

company

and

to the

as

satis¬

approach.

Mrs.

erator:

In
and

Years'

accountants

have to put aside their

of

aasr&ws ass sftrsssa sswtf
'

do

a real job of
simplifying,
condensing and integrating financjai presentation, both
practicing

accountant.

depreciation
categories

It is

traditional
to

factorily

lated
five

pres-

with

them
tnem,

spp
see

with

gives
pages
of
expenditures and retire-

may

the

methods.
the

order

got to tell its story.

headway

presenting financial data.

statement

company.

deep

seems

a
simpli¬
Many of us,
trained in accounting and mem¬
bers of the accounting
profession,
are
justifiably
proud
of
the

fied

actual

likely to
believing

surplus having a
equivalent to the

value
set

is

purchase

vestment

lay

a

difficulty

the pursuit of fullest

we

footnoted

^ ;^e

v

But in

course.

ments, renewals and replacements,
breakdowns of total asset and re¬

on

dollar state¬

a

be

on

income

anan-

state-

income

in¬

old

follow

questions and

reserve

printed

investors

and

and

cost, statements of ratios

ana
and

been

to

sheet

the

in

to

easy

simplest and most direct

reserves

in

theory that the usual type of

report be

easy

investor to mistake

until

have

r—--

-

trained

which

passage

pxospeciuses
prospectuses

distributed

balance

it

is

The

It

is startling to realize
how
very little the ordinary run of the
mxll stockholder knows
about the
financial affairs of the
company
be partly owns.
For this regrettkble state of

be

it's got."

penny

or
of

reports

and

has

professional.

Blames Accountants

^IC.an

that

the report—these still
stereotyped and rigid be¬
practically
unassailable

remain

make

diet of compre¬
financial
information,

'An address

statement

of 12,-

army

proper

tors should

income

in¬

balance

on

developed,

We

and

the

cash

assured

a

pro¬

average

not

growth

the

conflict, an army whose
continued well
being and numeri¬
cal increase can not be
hensible

but

—

of earned surplus for

logical

without

an¬

of

even

ment

500,000 owners of American in¬
dustry—an army whose existence
becomes

and

the

of

accompany

bro¬

under

their "Very noses.
profession it has evidenced

a

iiunions
millions

the

cross

of
the
typical
copiously footnoted.

of breakdowns
the Federal Securities
Legislation, assets
by

_

initiated

nomic

reports

dividual

beneficiaries

•of the financial information which

nancial

portion

targets and wall of convention.

principal

considered

nificant

re¬

spectuses has become increasingly

sheet

day and

naturally

these millions of
among

financial

prepare

In this enlightened
one

other

and

comprehensible to the

out,

year

narrative

nual
McCormick

T.

b.

-

in

year

vehicles for dis¬

annual

ports

mem¬

bers

the

as

in

statements

^e*>_s*nc^

Sanskrit.

the

financial

sen¬

ments, breakdowns of additions to

the
terminology and
the
basic
conventions of accounting presen-

The
In

coun¬

who

pany—what has it done and how
is it doing — dollars and cents-

ten

12,500,000 people

are

com-

the investor may examine it at his
leisure—but, so far as he is con¬
cerned, it might as well be writ¬

other

words,

goes

in

rate securities.

In

what

they should know
on
financially in the

of

balance

can

detail

imagine many
the standard

scanning

safely
Bridge.

are

schedule

well

can

as

Thursday, September 3, 1959

.

tion,

to enable him to

as

despair, and giving up the search,
because of lack of familiarity with

presentation be followed

means

wise.

own¬

of

ers

in

of
count.ry

survey

I

investors

by the traditional, detailed ones.
recent

stockholders

company

appraisal.

an

But

millions of prospectuses and annual reports have been sent

most

way

an

.

One item alone, such as
deprecia¬

Sabotages Full Disclosure

Mr. McCormick points out that since the SEC Act's

out to further full disclosure yet to the ordinary investors the usual

The

a

to

statement

come

sheet, income
analysis of surplus

can

the

balance
and

I

Gate

Both

casual interest in the subject as head of the American

a

Exchange.

passage

the

statement

and former SEC Commissioner for eight years who happens to have
more

Golden

tial

brought to task for keeping laymen investors in the

are

dark

items

as

that

me

statements

President, American Slock Exchange

of

handing me a set of en¬
gineer's blue-prints To convince

periinent parts of the
containing the essen¬
ingredients of his analysis.
Because of his training he can re¬

By EDWARD T. McCORMICK*

still, to present

—

tion and guidance is about

matter

a

as

income

multitude

ordinary investor for his informa-

His trained eye directs

course.

net

that

.

Loan

Louis

Panel—Mod¬
L.

Neighbors,

Vice-President, National Bank of
Commerce, Tulsa, Okia.; "Evalu¬
ation

Control

and

Mrs.

Dorothy

of

Collateral":

Assistant

Durning,

Vice-President,
Southern
Com¬
&
Savings
Bank,
St.

mercial

Louis, Mo.; "Financial Statements
Commercial
Loans":
Miss
Kathleen J. Sweeney, Vice-Presi¬

appraisal of the situa¬
tion of any particular
company.
I
do not think that we must remain

for

wedded

dent,

to

the

idea

must

formation

be

that

the

in¬

presented

in

highly technical language, and in
the

traditional form

sheet and
up

in

of

a

balance

income statement set
conventional manner. I

an

the

suggest

we

develop

a

ing

this

start from scratch and

technique for present¬
highly important infor¬

mation to the layman—to the
who cannot be expected to

man

bring a
technical background to the reading of financial statements.
I

don't pretend that these
goals
can
be achieved by a
flip of the
wrist.
A good deal of hard think¬

ing

and

re-orientation

necessary.

necessarily
acceptable
who

will

Nor do I think that I

am

Manufacturers and Traders
Company, Buffalo, N. Y.

Moder¬
Hart,
Assistant
Cashier,
Peoples Na¬
tional Bank, Conway, S. C.; "The
Woman
Banker and
Community
Country Banks Panel
Miss

ator:

Mary

—

Monson

Service": Mrs. Jane Swanson* As¬

sistant Cashier, The Northern

Na¬

tional

Bank, Bemidji, Minn.; "In¬
ternal
Operations of a Country,
Bank":
Miss
Ruth
Haliburton,
Assistant

State

Vice-President,

First

Bank, Vega, Texas.

Mortgage

Loans and Consumer

Credit Panel—Moderator—Miss R.

Joaquin
The

Seltzer,

Vice-President,

Peoples First National

statements

Bank
Company,
Paducah,
Ky.; "Consumer Credit in a Small
Bank":
Mrs.
Esther
W.
Roache,

oFaccountTng'are

Vice-President and Director, First

outlining
course.

readily
Accountants

financial
and the teachers
prepare

be

Trust

a

and

Trust

Number 5878

190

Volume

.

.

The Commercial and Financial Chronicle

.

(931)
National

Bank,

Aurora,

Ind.;

"FHA and VA Mortgages": Miss
Mary T. Lynch, Assistant Secre¬
tary,
County
Trust
Company,

,

Tarrytown, N, Y.
Problems

in

Moderator:

Branches

Miss Alice

Assistant

Secretary

Panel

—

McDonald,
and

Man-

ager, Rhode Island Hospital Trust

(

_4' Compan y, Providence,
"Building Business With

R.

I.;

New

a

Building": Miss Eleanor Thcrn1 ton, Assistant Vice-President, The
:

Citizens &
Southern
Bank, At¬
lanta, Ga.; "Modern Branch Bank-

ing

as Seen Through Glass Walls":
Ruby L. Walters, Assistant
"Secretary, Manufacturers Trust
j

Mrs.

Company, New York.
Bank

Operations

Panel—Mod¬

erator: Miss Treva Ann Moore,
^ice-President and Cashier, The
Beach

Bank, Jacksonville Beach,
"Teller
Operations":
Miss

Fla.;
Hilda

Kollmann,

Director,

Vice-

ISSUES, AMOUNTS,

President and Cashier, State Bank
Blue Island, Blue
Island,

of

111.;

AND

"Proof and Transit": Mrs. Eileen

Kansas

TNew

or:

Programs

in

Panel

Due:

Peronnel

$350,000 October T, 1960-79,

Moderat¬

—

Mrs. Betty

Indoctrination

Bank

$75,000 October 1, 1960-79,

$200,000

October

Amount

California,

t h.

$625,000

1,

Due

1960

2.75%

4'/2

1961

625,000

4

y2

1962

625,000

4'/2

1963

principal and

Tax

Exemption

all

opinion of counsel, interest payable by the City upon its bonds is
exempt from
present Federal and State of California personal income taxes under
existing

3.10%

4y2

1964

3%

1965
1966

regulations and

court

decisions.

<

3.40%

1967

3.50%

1968

statutes,

3.30%

3%

'

3.20%

625,000

3.55%

625,000

3%

33/4

in

625,000

33/4

1969

3.60%

Advertising": Mrs. Esther
G. O'Donnell,
Vice-President, The

625,000

33/4

1970

3.65%

625,000

33/4

1971

3.70%

Farmers

Bank, Lexington,
Neb.; "How Public Relations Tie-

625,000

33/4

1972

100

625,000

33/4

1973

100

,7ns Stretch Advertising Dollars";

625,000

33/4

1974

3.80%

Mrs. Margo W. Venable, Assistant

625,000

33/4

1975

3.85%

Advertising

Citi¬

625,000

4

1976

3.90%

Bank,

625,000

4

1977

3.95%

625,000

4

1978

100

625,000

4

1979

100

-

-

Bank

&

zens

State

Manager,

Southern

The

National

Atlanta, Ga.
for

Programs
ers

Women

Panel—Moderator:

Custom¬

Miss

guerite Patton, Assistant

Mar¬

Legal

Cashier,

Seattle-First National Bank, Seat¬

The

tle, Wash.; "The Lady Is Attracted
—A Glimpse at the Activities of

if

the

Women's

of

tion":

Miss

Katherine

the

G.

Love,
Assistant Trust Officer, Genesee
Valley Union Trust Company, Ro¬
chester, N. Y.; "To Have and to
Hold—The Women":

King,

Assistant

National

Bank

Miss

Marion

Cashier, Bishop
of Hawaii, Hono¬

lulu, Hawaii.
Savings
ator:

Banks

Mrs.
of

rector

Panel—Moder¬

Marian

G.

Haefeli, Di¬
Relations, The

Public

Prudential

Savings Bank, Brook¬
"The Saving^ Banks'
Louise Seely, As¬
sistant Treasurer, Charlestown
Savings
Bank,
Boston,
Mass.;
"Savings Programs for our Cus¬

lyn,

Y.;

N.

Position":

Miss

tomers":

Miss

Assistant

Secretary,

Christine

C.

Buffalo

Zink,
Sav¬

ings Bank, Buffalo, N. Y.
Trusts

Panel—Moderator:

Miss

Lois Weingartner, Trust Adminis¬

trator, Lincoln Rochester Trust

Company, Rochester, N. Y.; "Hu¬
man

Relations in

tion

of

Trusts

the Administra¬

and

Estates":

Miss

Louise rJ.
McGovern,
Assistant
Trust Officer, Wells Fargo Bank,
San Francisco,

Calif.; "New Bank

Business

Through

Business":

Mrs.

New

Trust

Edith M. Martin,
Vice-President, Fidelity Trust
Company, Pittsburgh, Pa.

Gateway Stock & Bond
Formed in

Pittsburgh

PITTSBURGH, Pa.
Stock
formed
&
a

&

Bond,

with

Finance

securities

—

Inc.

offices

in

Building, to
business.

Gateway

has

been

the

Law

engage

Officers

in

are

Clyde F. Fagan. President; James
Kirsh, and Charles R. Martin,
Secretary-Treasurer.
J.




above

issued

listed
not

Committee

New York State Bankers Associa¬

i

to both

3.00%

Not

l

as

In the

2.90%

625,000

Persuaders

City of Los Angeles in Los Angeles,
fiscal agency'of the City in New York, N. Y., or in Chicago, III.

.\

or

Price

4y2%

625,000

Hidden

at any

1960-79?.incl

625,000

Cashier,
Parker
Square
State
Bank, Wichita Falls, Texas; "Some

e a

or

Coupon bonds in denomination of $1,000 registrable only

625,000

L

(April I and October I) payable, at the option of

the holder, at the office of the Treasurer of the
incl.

Yield

Rate

Assistant

So

I

interest.

Coupon

Panel—Moderator:

Charlsie

October

'

Mass.

Advertising

interest

Election 1959, Series A
Due:

of

Arizona,
Phoenix, Ariz.; "Developing and
Administering an Equitable Sick
Leave Policy": Miss Gertrude M.
Gill, Personnel Officer, The First
.National Bank of Boston, Boston,

Mrs.

Due

Payment and Registration

Principal and semi-annual

$4,000,000 Fire Department Bands

Person¬

and

Counselling":
Mrs.
Jane
Greenwald, Assistant Cashier,
National

1, 1959

incl.

Election 1957, Series C
Due:

nel

First

4Vi%, 3Va% and 4% Bonds
Dated October

$1,500,000 Library Bonds

Vortman, Assistant
Albuquerque Na¬
tional Bank, Albuquerque, N.
M.;

i

PRICES
be added)

Election 1958, Series B

Vice-President

Staff

to

$7,060,009 Police Department Bonds

City, Mo.

Administration

YIELDS OR

(Accrued interest

Hobbs, Vice-President and Cash¬
ier, Central Bank of Kansas City,
*

Los Angeles County, California

j

RATES, MATURITIES

on

bonds
and

below

shown

as

legality

well

whose

request,

by

Attorneys,

Opinion

are

offered

received

and

names

when,

as

and

the

underwriters

other

underwriters

will

subject

Messrs.
Los

by
as

to

be

Angeles,

furnished

approval

O'Melveny

&

California.

Tax

of

Myers,

These

bonds
par

will

be

are

Gain,

Amortization

of Premium

A

initially issued by the above named political subdivision

value, and

a

taxable gain

may

accrue

on

bonds

purchased at

required under existing regulations to amortize

any

a

at

not

discount.

less

than

Investors

premium paid thereon.

their

1

t

The Commercial and Financial Chronicle

(232)

Allis-Chalmers

Dealer-Broker

Company—Analysis—Gruntal & Co., 25 Broad
Street, New York 4, N. Y.
Potash

able

in

current

Canadian

Foreign

York

&

Cq., Inc., 1 Wall Street, New

of

"Nomura's

Investors

Mitsubishi

in

Japan

for

1959

and

cular

analyses

Company
New

of New York,

Inc., Ill

Yamaichi

of

York

are

Eastern

data

Municipal

7,

Ont.,

Kansas

7

t*

135

Paper
Wall

and

West

Pulp

Paper—Bache

&

&

Co.,

Bond

Wood

Steel

—

Memorandum—Hill, Darlington & Co., 40

—

Analysis

Co.,

—

&

Boettcher

—

New

York

Southern

6,

N.

Inc.,

Co.,

and

are

articles

on

Analysis

—

&

Oct.

Company,

Stieglitz,

39th

Oct.

The
proposed
$210,000,000
Chesapeake Bay Bridge and Tun¬
nel

District

due

July

Revenue

1,

1999

scheduled

to

ket

7

Sept.

syndicate

be

by

bond

issue,
tentatively
brought to mar¬
and

an

headed

by

The

First

Boston Corp.; Allen & Co.; Merrill

& Distribution

Inc.

has

later

date,
Sept. 3.
T h

will
,

been

e

be

the

postponed
group

to

a

ment

tinues
of

as

the

74

Trinity Place, New York 6, N. Y.

HAnover 2-2400




.

Teletype NY 376; 377; 378

short illness. He was 69.
Hires,
who
joined
the
Sparks firm 45 years ago, had
a

1936.

a

general

partner in

In July of this year, he had

been named

a

Bankers

Association

1-5, 1959 (Boca Raton, Fla,)

"National

ciation

&

Security Traders Asso¬

Annual

Convention

of

the Boca Raton Club.
Nov. 29-Dec. 4,1959 (Bal Harbour,

Fla.)
Investment Bankers Association

^Annual

Convention

the

at

April 6-7-8, 1960 (Dallas, Tex.)
Texas

Group
of
Investment
Bankers Association of America
25th

annual

Sheraton

organization,

national

with
He

con¬

distributor

and

at

lba

Continues Inv. Business
BOSTON,
Quinn

city,

meeting

Dallas.

The

—

has

Mass.
formed

offices
was

trading

at

Robert J.
Quinn & Co.

—

50

Congress St.
formerly
head
of the
department for Quinn &

Co.

Delaware

New Officers

Mr.

been named

(Miami Beach,

Barret Fitch Names

stated.

R.
Hires, active as a
special partner of J. W. Sparks &
Co., Philadelphia, passed away on
Aug. 25 in Fort Smith, Ark., fol¬

lowing

1959

Income Fund shares.

RUSSELL R. HIRES

Troster, Singer & Co.

Diplomat

(Cincinnati, Ohio)
Group of Investment

25-28,

Nov.

KANSAS CITY, Mo.

—

John M.

Russell

Members ISew York Security Dealers
Association

annual

The

at

Americana Hotel.

this

Delaware Fund

Super¬

Annual Convention.

Company, Inc.

in

of

State ..Banks

Fla.)

O'Neill

Pa.

The newly-named

Association

of

meeting.
Oct.

Delaware

headquartered

(Hollywoodl-by-

announced

underwriting
syndicate
maintained, the managers

of the group

of

1959

Bankers Association annual fall

Distributors,
Inc., Penn Center Plaza, has been
changed
to
Delaware
Manage¬

underwriting

Lynch, Pierce, Fenner & Smith,
Inc., and Willis, Kenny & Ayres,

(b) Natural Gas Companies
Transmission, Production

20-23,

Ohio

Management Co.
PHILADELPHIA,

the

Oct. 22, 1959

Now Delaware

name

at

Hotel.

convention

4, N. Y.

Chesapeake Bay Bond
Financing Postponed

convention

annual

Hotel.

Supply Co.—Analysis—Loewi & Co. Incorporated, 225
Street, Milwaukee 2, Wis.

Beane, 26 Broadway, New York 6, N. Y.

(Philadelphia,

the-Sea, Fla.)

East Mason

Vocaline Company of America,
Inc.—Analysis—George
& Co., Inc., 30 Broad Street, New York

1959

Warwick

Manufacturing Co.—Memorandum—J. R, Wil-

(a) Operating Utilities

14-17,

American

Worth

G.

Exchang*

Pa.)

Y.

Nitrogen

-(

Consumers Bankers Association

Wall

52

(Toronto,
Stock

of

ing at the Royal York Hotel.

Roxbury Carpet Com¬

Halle

Colonia,

First Board of Governors meet¬

40

Exchange Investor, 86 Trin¬
Y.—15c per copy; $1 per year.

N.

Company, Inc.—Analysis—R.
Co., Inc., 160 Broadway, New York 38, N. Y.

Tractor

annual
golf
outing at Col-

Club,

28-29, 1959
Canada)

Southern Materials—Review—Ira Haupt & Co., Ill Broadway,

Study — du Pont, Homsey & Company, 31
Milk Street, Boston 9, Mass. Also in the same circular is a
study of Beech Aircraft.

Trading Markets in-

Country

Association

Providence Gas Company, and Cooper Jarrett Inc.

—

Allis-Chalmers

issue

Company

13th

Sept.

Street, New York 5, N. Y.

portfolio suggestions.
Allis-Chalmers

same

(New

N. J.
&

Glass

Place, New York 6,

Simmons

Chemical
Corp.—Report—Harris, Upham & Co., 120
Broadway, New York 5, N. Y. Also available are reports on
E. I. du Pont de Nemours, Sears, Roebuck &
Co., a study of
the security purchases and sales of 56 investment
manage¬
ment groups, and the current issue of "Market Review" with

Firm

onia

Building, Colorado Springs, Colo.

Plate

Also in the

*

Street, New York 5, N. Y.

&

29

ican Investor"—American Stock

ity

Allied

liston

Co.,

Bank

Schroeder.

1959

tournament and

&

—

of

convention

York City)
Corporate Transfer Agents As¬

Broadway, New York 4, N. Y.
Seabrook—September issue of the "Amer¬

pany,

Wall

24,

sociation

Company—Analysis—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
Scott & Fetzer Company — Analysis — Jesup & Lamont, 26

Averages—Bulletin—Amott, Baker
Incorporated, 150 Broadway, New York 38, N. Y.
*

Association

Hotel

visors

Stock

&

*

Alan

Sept.

Seaman Brothers &

Estate

the

National

Pittsburgh

4, N. Y.
Co.

at

Royal Dutch Airlines.

Street, New York 5, N. Y.

(Milwaukee,

Women 37th annual

of Raytheon, Procter and Gamble, Allis-Chalmers, and KLM

36

Camp Paper Corp.—Vilas & Hickey, 26 Broadway, New York

&

National

Steel Tube Company — Report — Carl Marks & Co.,
Inc., 20 Broad Street, New York 5, N. Y.
Michigan Chemical Corp.—Analysis—Hayden, Stone & Co., 25
Broad Street, New York 5, N. Y.
Also available is the
"Monthly Investment Letter" for September with discussions

Paper Stocks—Analysis with particular reference to West Vir¬
ginia Pulp & Paper Co., St, Regis Paper Co. and Union Bag:

Real

Hotel

Country

Wis.)

Conklin

Mexican

■

Virginia

Company

Antlers

Chesapeake

Fiber,

Witt

120

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

See

-

Club.

Sept. 23-25, 1959

Steel

Magnavox

Tee

-

City Club; field
day, Friday, Kenwood Country

La Salle Street, Chicago 3, 111.
Electronics, Inc. — Report — Parker, Ford & Com¬
Inc., 211 North Ervay, Dallas 1, Texas.

Star

Nah

-

cocktail and dinner party Thurs¬

Development

Co.

MI.)

day at Queen

Electric, Inc.

Soya Products Co.—Memorandum—Fahnestock

pany,

(Rockford,

Sept. 17-18,1959 (Cincinnati, Ohio)
Municipal Bond Dealers Group
of Cincinnati annual outing —

re¬

Roller

South

Lone

Corporation of Virginia, Con¬
tainer Corporation, Crown Zellerbach, Ilammermill Paper,
International
Paper, Mead Corporation, Minnesota & On¬
tario Paper, Oxford Paper, Sealright Oswego Falls, St. Regis
&

Mauh

Ling-Altec

Paper Industry—Study with particular reference to Champion

Paper

are

Timken

Analysis—Schweickart
Broadway, New York 6, N. Y.

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 20 - year period—
National Quotation Bureau, Inc., 46 Front Street, New York

4, N. Y.

circular

and

Incorporated—Bulletin—De

Paper

1959

Broad

Co., 25

Heyden Newport Chemical Corp., St. Regis

on

11,

Rockford Securities Dealers As¬
sociation
annual
fling-ding at

Magna vox Company.

Over-the-Counter Index—Folder showing an

1

Sept.

Oppenheimer, Neu &
Also in the same cir¬

—

Day—Sept.

Club.

&

same

Gas

&

Field

at

University Club. Sept. 11: Field
Day and Outing at Elmhurst
Country Club.

Broadway, New York 5, N. Y.
Bank for Puerto Rico—Quarterly
report—Government Development Bank for Puerto Rico, San
Juan, P. R.
Great Northern
Paper — Report — Thomson & McKinnon, 2
Broadway, New York 4, N. Y. Also available is a report on

Statistics—1958 annual report—Department

Municipal Affairs, Parliament Buildings, Toronto,
Canada—$5 per copy (quantity prices on request).

Also in the

Electric

Company—Data

Industries,

Ilammermill
of

Columbia

British

on

Co., Pennsylvania Power & Light Co.,
Southern Nevada Power Co.,

Service

Baking

Organization,

York.

Ontario

data

Annual

Brunch

Welty's Restau¬
rant; luncheon at Chicago Yacht
Club; cocktails and dinner at

Also

York 5, N. Y.

New

are

Co.—Review—Hirsch

Iron

&

Public

Government

of

Securities

Broadway, New

10:

Utilities,

of Canada, and Tung Sol

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

23rd

Paper Co., First National City Bank, International Nickel Co.

Cement Co.

Japanese Stocks—Current Information

bulletin

Co., 120 Broadway, New York 5, N. Y.

Scotia,

Beacon"—Nomura

brief

(Chicago, HI.)
Municipal Bond Club of Chicago

Bearing.

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment

Expenditures

Fuel

Continental

Department, Toronto 1, Ont., Canada.
issue

Street,

Broad

same

Street, New York 4, N. Y.
views

Co., 42 Broadway, New York 4, N. Y.

current

Sept. 10-11, 1959

&

Corp.

Japanese Stock Market—Study of changes in postwar years—
In

15

Rockland

&

Colorado

5, N. Y.

Economics

A.

Tennessee Gas Transmission Co. and Texas Gas Transmission

Fifty Two Dividends Annually—Bulletin—Peter P. McDermott
&

Co.,

Mountain Fuel Supply

Orange

Gold & International Liquidity—Review—Bank of Nova

J.

Co., Columbus & Southern Ohio Electric Co., Corning Nat¬
ural Gas Corporation, Duquesne Light Co., Idaho Power Co.,

Also avail¬

Letter.

Kidder

—

Telephone Co., Carolina Power & Light Co., Citizens Utilities

Burnham and

Coal Industry—Report—With particular reference to Consoli¬
dation Coal Co., Island Creek Coal Co., Peabody Coal Co. and
M.

&

curities

available in the

Limited, 55 Yonge Street, Toronto 1, Ont., Canada.

Co.—A.

Memorandum

—

Arkansas Western

Treasury Bill Market—Analysis—Saunders Cameron

Pittston

Corp.

Co., Incorporated, 60 Broadway, New York 4, N. Y.
Gas Co.—Data—Eastman Dillon, Union Se¬

New York 5, N. Y.
Also available is an
analysis of Burrus Mills, Incorporated and a discussion of
yield curves in the bond market.

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

Chemical

&

Hogle & Co., 40 Wall Street, New York 5, N. Y.
Arkansas Western Gas Company—Analysis—A. G. Becker

Broadway,

—

IN INVESTMENT FIELD

Boeing Airplane.

on

Industry—Analysis with particular emphasis on
Steel Company of Wales—New York Hanseatic Corporation,

Monthly Investment Letter

Events

American News

Steel

—

Hills Richards & Co.,

—

Co., 453 South Spring Street, Los Angeles 13, Calif.
Motors—Data—Herbert E
Stern &
Co., 52-Wall
Street, New York 5, N. Y. Also in the same circular are data

American

Burnham View

Memorandum

Spring Street, Los Angeles 14, Calif.
Insurance Company—Analysis—Bateman, Eichler &

American

TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

120

—

South

621

(IT IS UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

British

Thursday, September 3, 1959

—

American Express Co.

-

.

York

American

and Literature

.

Analysis — Reynolds & Co., 120 Broadway,
5, N. Y. Also available are analyses of Sanborn
Company and Monsanto Chemical Company.
New

•.

Investment Recommendations

.

special partner.

Buckley,
Maurice
W.

Edward
M.

Walton,

M.

McNellis

Jr.

Cox,
and

have

Jr.,

Walter

been

ap¬

pointed Assistant Vice-Presidents
of

Barret, Fitch, North & Co., In¬

corporated,
members

of

1006
the

Baltimore
New

Ave.,

York

Midwest Stock Exchanges.

and
-

With

growing

financial

tions firm in New York

right,

young

financial

security

reporter

public

rela¬

City for forth¬
analyst

or

who enjoys meet¬

ing public and takes pride in creative
writing.

Reply in confidence, stating

experience

and

salary.

Box

S-827,

The Commercial and Financial Chron¬

icle, 25 Park Place, New York 7.

Volume

190

Number 5878

.

.

The Commercial and Financial Chronicle

.

(933)

and

Observing that his country is

now

Chancellor

has been in office since
inflation

ject that Dr. Einzig explores.
ties wilt

now

the

have

been

The

of

cost

ap-

halted

Britain, for the time being at
rate.

in
any

living

has

virtually
Unchanged for
last

months.

it

this

Jo

answer

ex-

should

election.

Should

the

organized

and

squeeze

of

means

policy.
Hitherto
the
task
of
prophets has been simple. It appeared to r be perfectly safe to
assume that inflation would contfnue to proceed at least at "a rate
^

_

would

would

the

then

al-

16

The

as

a

resume

the

Conservative

Gov-

ernment be continued there would

his office at the beginning of 1958,

House realize that he too could
be fully as hard-faced as the
simply
repeated
themselves
to trade union leaders are. In posboredom by advising their public session of a five years' mandate
to buy equities, equities and still a Conservative Government, with
more
equities
Admittedly some its new Parliamentary majority,
equities may be overvalued at would be politically in a position
their present level, and the mar- to resort to disinflation if necesket as a whole is naturally sub* sary. Even though this would be
ject to ups and downs, taking a the last thing it would want to do,
long
view.
But
the
experts' the mere fact that it would be in
unanimous advice was that by and a position to do it might sufficfe
large
investors
could
not
go to bring the trade unions to their
wrong in acquiring and holding senses and moderate their greed,

before the beneficial effects of his

good-class

Chancellor
the

accelerated.

of

who

is

credited

with

having
brought about
this
his

result
d

by
t i

r a s

c

disinfla-

tionary'

meas-

Mr.

ures,

Paul

T'hor-

Peter

neycroft,

Einzig

lost

?

.

policy

monetary

unpopular

On

the

basis

this

of

% assumption investment consultants

Exchequer

.

be-

But

now

equities.
that

w-

contradiction

tive—a

Now
a

it

appears

to

in

have

♦

rate

any

industries

some

there

is'"now

at

Lehman Opening
Paris Office

good

a

chance of cuts in costs and
prices,
thanks to the adoption of laborsaving devices. Until recently the
devices were unable to
their

full

cause

produce
be-

beneficial

owing to
demand

sumer

effects,'

Lehman Bros., 1 William Street,

New York City, members of the

^

the

*

Makes Predicting Complicated
As

for

the

probable extent of
in costs and prices,

the decline
that is of course anybody's

guess.

likelihood

decline

a

in

further the firm's steadily growinS European financing activities,
Until his

prices

new

association

the Coal and Steel Community in
Luxembourg and Economic Ad-

rise in
Everything

almost

a

was

visor to the European Economic
Community (Common Market) in
Brussels. In addition to his new
section, responsibilities with] Lehman Bros.,

any

bound to rise, and

the difference between good adyice and bad advice was merely
the extent and time of the
inevitable rise. But now the expcrts and their clients will have
to face a considerable degree of
uncertainty about the different
way and extent to which various
an<i firms stand to be

Mr. Uri will continue to

\k/n.n.Je O fAmft-nw
VV OQOS vX v^Om|D3ni^

In San Antonio
SAN

Bempsey-Tegeler

&

(Special to The Financial Chronicle)
amplt

pc

r<

im

r*

ANGELES, Calif.
T. Gary
Loomis,
Medardo
Rangel
and
,

ANTONIO, Texas—Woods
Company, Inc. has been formed

with offices in the New Moore
Building to engage in a securities
.

,

_

business.

Officers

are

man

union

gr^^ v^U

was

Dillon,

formerly with EastUnion

Securities

&

Woods,
who

Secretary.

has

been

in

Mr.
the

be

^ble173 to

Co' ***' Ran^el with Lloyd Ar- business for

deprive the rest of the

public of

nold & Co.,.and Mr. Sly

the

benefits

of

technological

was

Marach Dofflemyre & Co.

in

San

securities firm

own

Antonio.

Mr.

Treasury,

.

This

announcement

is

not an

offer of securities for sale

The
NEW

decline in prices.
hopes to attain this end as a

He

about

in the out¬

increase

put coupled with the reduction in

an

offer

to

buy securities.

$50,000,000

Associates Investment

technological
He
launched
out
a
country-wide campaign

through

progress.

vigorous
in

solicitation of

a

result of the

costs

or a

offering is made only by the Prospectus.

ISSUE

by merely aiming at preventing a
resumption of the rise in the price
level
his
declared
object is to
bring

of

favor

the

down

an

all

around

Mr.

prices of manufactured

Amory's campaign has

ceived

5%% Debentures

cutting

goods.

Dated

August 1, 1959

recently
from
organizations such as the
Council
on
Prices, Productivity
and Incomes (popularly known as
"the three
wise men")
and the
Institute

National

Due

August 1, 1979

re¬

support

strong

Price 100% and accrued interest

Economic

of

and Social Research. Recent

judg¬

ments delivered by the Restrictive
Practices

Court,

outlawing

trade

Copies of the Prospectus may be obtained from such of the
undersigned as may legally offer these securities in this State.

practices aimed at enforcing price
maintenance in various industries,
also

tend

to

operate in the same

Between

sense.

the

and

now

election
various
em¬
ployers' organizations are likely
to
come
out in support of
the
Chancellor's
campaign by word
general

and

by

strengthen

action,
if
only
to
the
Government's

Salomon Bros. & Hutzler
Blyth & Co., Inc.

relief the un¬
mitigated
selfishness
of
trade
unions
which
pursue
a
policy
threatening to re-start the infla¬
tionary spiral in their efforts to
secure
unwarranted
wage
in¬
creases for their members at the
to

expense

Stock

bring into

Market

Commentators

change
feel

trends

concerned

as

a

Bear, Stearns & Co.

Drexel & Co.

Harriman Ripley & Co.

Eastman Dillon, Union Securities & Co.

Ladenburg, Thalmann & Co.

-

-

.

Lazard Freres & Co.
i

Incorporated

Stone & Webster Securities Corporation

Commentators
Stock

on

are

Ex¬

Wertheim & Co.

beginning

about

the

to
possi¬

bility of witnessing a decline in
prices, profit margins and even
dividends

Incorporated

F. S. Moseley & Co.

of the community.

Lehman Brothers
Merrill Lynch, Pierce, Fenner & Smito

prospects of winning the election
and

result

of

the




new

Woods,

investment

many years, formerly

with conducted his

become

predecessor's laurels. He is deter¬
mined to carry the fight against
inflation into the enemy's camp.
Instead of being on the defensive

Don

Russell W. Sly have become af- Business.
umcers are Don i.
filiated with Dempsey-Tegeler & Woods, President; George B.
Go., 210 West Seventh St. Mr. Banks, Vice-President; and M. K.

+

terms.

Thorneycroft's successor at
Mr.
Heatheoat
Amory,
is
understandably
not
content
with
resting
on
his

as

velopment.

affected.
With

serve

Chairman of a working group
within the Community charged
with establishing the long-term
perspectives of the economic de—

reality.

the

with

their mind how individual industries are likely to be affected.
This is where the real difficulties
begin. During the period of creepinS inflation it was easy to predict

Loomis

in-

view about the

Lehman Bros., Mr. Uri has been
Director of the High Authority of

are

will

of

a

and about its probable extent, investment experts have to make up

which

progress

con-

modern-

'

Having taken

The outcome of the wage disputes

in

decline in

unit.

per

LOS

.

a

recently

ized plants were not able to work

T

possibility of
came evident. But the Government
a
reversal
in
the
inflationary
to which he formerly belonged, trend is
beginning to be envisaged
and
the
Conservative Party
of in many quarters, investment exwhich he is still a member, are perts are
beginning to feel the need
reaping the benefits
his tough- to
re-appraise the prospects of
ness,
in
the form of a business
n
u
recovery
unaccompanied by in- equities. First o£ all, they have to
flation.
Until recently, this was make
up
their mind about the
considered an unobtainable objec- odds in favor of such a
reversal,
.

In

progress.

wages

this time unhampered,

course,

Should

be

high Bank rate

restraining

which

spree

its

labor

be a fair chance for Mr. Heatheoat
comparable with its progress since Amory to succeed in his new
1945. Indeed there appeared to be Policy—not necessarily by applya
strong possibility that the pace inS credit squeeze and high Bank
of
its
progress
might
become rate> but by making Transport

remained'

the

it occur, is the sub*

He concludes that their real difficul¬

period of creeping inflation.

LONDON, Eng.—Inflation
to

who

begin in contrast to the uncomplicated problems during

*

pears

successor

of

early 1958. The impact of the turn about of

stock market commentators, should

on

if

Socialists win the class-selfishness

especial credit to the just prethe Exchequer, who lost his office before his

of

The

probable

New York Stock Exchange, has
announced that it will open a
European office with headquarlowed
to
proceed
without
any to full capacity. With the revival
*ers in Paris, on Oct. 1. This.new
attempt, at
effective
resistance, of consumer demand it will now office will be headed by Pierre
The "hard-faced men of Transport become
possible in many indus- Cri.
~
: l
.
House" would be able to force tries to
spread the overhead costs
The new Paris office of Lehman
their
Government
to
relinguish over a larger number of units of Pros., under the direction of Mr.
for good the weapons of credit
output; thereby reducing the cost Uri' wil1 undertake to develop

at the threshold of reversing the

unpopular policies bore beneficial results, and to his

or

reversal

a

general

pays

vious

possible

problem, like the answer to many
other economic, social and political problems, depends in Britain
largely on the outcome of the

By PAUL EINZIG

inflationary trend, Dr. Einzig

of

materialize.

If Inflation Is Reversed

1

the

tent

Stock Commentator's Lot

9

September 2,1959

White, Weld & Co.

Financial Chronicle

The Commercial and

1©

.

.

Thursday, September 3, 1959

.

(934)

and the
Problem in Canada

"inflation" as
irevealed in a timely analysis by one of Canada's top bankers. Aware
tfhat the general economic background is not particularly suggestive
af inflation, the writer shows: (I) extent and bases of inflationary
foars almost universally held—evidenced by the low ebb of confi¬
dence in the value of money where there's unemployment; (2) how
depression conditioned fear of recession causes inflationary policies
tfbat can lay the groundwork for a serious recession; and (3) infla¬
tion is a threat rather than an aid to employment. Mr. Gibson main¬
tains that so long as the discipline of the gold standard is rejected
we should "be prepared to exercise some discipline ourselves." Thus,
'he recommends reduced government expenditures, or increased taxes,
ar both, and acceptance of monetary
and credit restraint; and he
i'ikes umbrage at the statement that Canadians are powerlessly
dependent on the U. S. A. regarding this matter.
should
present
inflation
arises

that I
make is that the

first

Tfie

point

much

become

demands

and

tered

and
and

when

were

maintain

to

and

wages

It is

combined

nity

indeed

and
be

citizens

inflation?

no longer cen¬
America as they
industrial materials

Perhaps

reasons

is

did

decline

not

other

that

1957

and
were

or

—

very

121/2%,

for some years.

increasing until the end of
year
when
they
at
last
showed
just a little weakness.
Wage rates, though not advancing
at
the
pace
of
1955
to
1957,
showed
a
further increase, and
other
business
costs,
including

time,

or,

inflation

that

in

any

less

case,

most

during

than

is

not

present

the

at

of

of

a

the

facts

j'lTiysical

national produc¬

ciable rise in the

Committee

Finance is itself a

on

public

i;u./rp'estive

increase

of

and this seems

spite

con¬

a

siderable

has

re¬

still

ities.

1* Douglas Gibson

unem-

that

increase

We are quite

production.

definitely

position

the

in

not

there are too

many

dollars

of

plenty of goods and plenty
capacity to produce more.

Nor

do

proaching

we

a

true that
CA

tive

ap¬

still

which
It is

Mr. Gibson before
Committee on Finance, Ottawa,
by

Canada.

The

sions

the

its

States has

considerable way to go be¬

a

likely to
being

shortages

general

any

appear

least,

at

are

remains

a

of

though

be

enough
the

to

swing

closely matched.

upward

often

for a deci¬

sion to invest or to purchase, may

in

strong

are

inflationary.

is

inflation,

when

the

very

they think the gen¬

good deal of excess capacity. And

Europe,

deci¬

likely to rebuild or build up

not the leading reason

and, for the time
there

Businessmen

atmosphere

Fear

probably

is
'

their stocks if

eral

business

is not clearly apparent. But

influence

more

fear of inflation is

other

in

considerable.

of

recovery

United

the

in

How far the

the

and

pros

balance

cons

are

There can be no

bonds, and when businesses found
more liquid funds

is

neither

an

offer

these securities. The

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

to

available to invest.
The

strongest

of

inflation

about

has

been

by

the

projected budget deficit of just
$400 million and the cash
deficit put at $850 million repre¬
sent a marked improvement overlast

de¬

Canada's fiscal

the recession

to

sponse

year's figures and the results
suggest that the actual
may be materially better
than the estimates. The road back

re¬

was

prompt and substantial—to a de¬
gree that might warm, the hearts
of

the

of

advocates

earnest

most

September 3,

ISSUE

The Gabriel

Company
Fund Debentures

For the past

tions.

fiscal

the

year

deficit- is placed at over
and the cash deficit
at about $1,250 million.
From an
economic point of view the cash
deficit, i. e. the amount by which
government payments and ad¬
vances, whether of a current or
capital nature, exceed government
revenues, is the important figure,
and the $1,250 million for the fis¬
cal year 1958-59 compares with a

(plus accrued, interest from July 1, 1959)

deficit

the

of only $300 million
preceding year.
What is
notable
is
that
the
great

of this

penditures

deficit

cash

de¬

was

raising ex¬
pensions,
unem¬

for

ployment
insurance, hospital
insurance, payments to the prov¬
inces, aid to grain growers, pay to
civil servants, Colombo Plan aid,
of making loans for housing in
particular, and of reducing taxes.

Only

one-fifth

about

the

in

crease

cash

associated

the

It

Underwriters nam.ed below

as

be obtained in any State only from such of the
may lawfully offer the securities in such State.

closed

sizable

In

one.

the

deficits




&

Co.

Prescott, Shepard & Co., Inc.

for

the

year

opinion a
Spring of

portents

were

and the promptness

took

was

a

of the

most

However, the
large
it

of

conducive
increases,

in

rising

hospital
size

substantial

to

Indeed,
appear

deficit

character

insurance

and

many

could

pen¬
rap¬

such

as

payments.
of

the

concern

in

the

aroused

before the
be

be

to

character

breasts of many
years

not

are

permanent, such as those in
sions and pay, and some are

The

and

one

expenditures which
half

early reduction.

idly

Loeb, Rhoades

rev¬

reces¬

fiscal

the

that it would be
national

balanced.

brief

a

combat
r

analysis

as

makes it all toe evident why-

this

is

are,

about

confusion

much

so

of inflation. There
a
variety of con¬

question
in fact,

flicting influences, some factual
ana
measurable, and others in¬

psychological
but
As I have
emphasized, the general economic
background
is
not
particularly
suggestive of inflation and yet
there is a widespread fear of in¬
flation based to a large extent on
and

tangible

important nevertheless.

of

influence

increased

the

pro¬

society, and
on the prompt and vigorous meas¬
ure of expansion pursued by gov¬
ducer

in

groups

ernments

our

recession.

combat

to

Confidence in the value of money
reached

has

when

there

amount of

a

at a time

ebb

low
still

is

a

significant

unemployment.

An Undesirable

This

Situation

budget

Meanwhile,

definitely undesirable
In the first place, there

is

a

situation.
is

obvious

the

danger

that

the

will decline fur¬
ther—a danger which is increased
in the
short run by the belief of
value

my

economic

the increased

or

tax

the

the

in

the recovery

the

Car! M.

in

and

experts by surprise.

of

in

with

such

Even

the

certainly appropriate to

deficit

a

just

readily
may

the

time,

in¬

is

v
was

cash

the

of

deficit

decline

of

enues

account

Copies of the Prospectus

same

the recent rate it may
long before a government

be

this

of

Unit

the

at

at

prove

there

1958

per

it did only

deficiency is still very substantial
and if business continues to inn

budget

not favorable

Price 100%

But

ago.

$600 million

run

Common Share Purchase Warrants

appear
as

inflationary tendencies.

June 30, 1974
with

not

surplus will be needed to

sion.

Due

does

difficult

ing, though it is only fair to add

result

5%% Subordinated Sinking

government accounts
as long and as
six months

balanced

to

that the process has been strongly
aided by the timing of two elec¬

most

$2,500,000

date

not

bulk

1959

to

figures

anti-recession government spend¬

liberate—the result of
NEW

the

under

velopment of large government
deficits, both budgetary and cash,
iri this country as well as in the
United States.

budget has also re¬

supply and has worked to
moderate inflationary fears.
The

money

however, the
for new concern

reason

recent

lieved the upward pressure on

Government Deficits

Undoubtedly,

available and in the
of. low
coupon

advantages

themselves with

cost

on wage and other
increases to the consumer.

in
announcement

prices

and

costs

passing

cash

This

in

tendency

of

Is Pervasive

Inflation

of

reflected

materials

raw

Fear

war,

all

almost

industrial

foodstuffs.

fore

goods.

obviously

is

and compari¬
yields between bonds and
suggest
a
preference for

produc¬

adequate

of

capacity

business

business has shown sig-

statement

the Senate

in

situation

there will be too few

be

to

appear

of

sons

rates

proportions,

major

supplies

amplG

been

than

more

the

of

the <,end

have

there

major

About Inflation

interest

on

stocks

since

time

and

Ho Certainty

evident,

up

yields

tax

that such a process would
price their goods out of the mar¬

strength of the stock market.
Its
influence on the bond market and

couple of years, for the first

last

and

We have

chasing too few goods.

strongly sug¬

not only in
the continuous talk about it, but
more
concretely in the weakness
of the bond market and in the
is

inflation

until late last year
public began to show
interest in the very favor¬

more

able

,

the

when

Fear of

continent.

this

on

cern

of inflation, or, to put it
stocks and a lack of interest in
more accurately, is less suggestive
of inflation than during most of bonds seldom approached in the
the period since the war.
In the past.

gestive

example, the

capacity, for

picture in the

economic

the

further point

the

to

world at large is not

pulp and paper and aluminum in¬
dustries, and in most lines there
ure
ample facilities available to

where

leads

This

]>loyment and substantial
unlised capacity. A number of major
industries are still working well
below

revival in the
demand for basic commod¬

been more of a

world

in
liUSinesS, there
covery

is

of the order of 12%
unlikely until there

tion this year

De¬

inflation.

would

not interested in buy-,

were

happened

have indeed sustained the upward

require an
in the national produc¬
That

1959.

in

interest-,V

fixed

in

ing the government bonds needed
to
meet the
deficit, the central
bank expanded the credit base so
that
the
banking system could
take them up.
And this is what

plied

tJiemse Ives

Can-

in

are

invest

,

securities
in
sufficient
amount,
and
specifically
then?;,
unwillingness to take up the gov¬
ernment deficit even at sharply
rising rates of interest. Since the

last

not in

cconomic
jjcene
sicm

this-*

the

bearing

this, there is still

ing

,,

the^

of

extent

The

emphasized

to

cans

of manufactures fell very
consumer
prices went

and

recogniz¬ striking indication of the wide¬
In¬ ket, particularly if it is an export
little pros¬ spread interest in inflation.
market or
a
highly competitive
flation has replaced recession as
pect that the recovery will go so
one.
But, other businesses have
far as to fully take up the slack the major topic of business con¬
been
less inclined to
resist and
But,

income.

and

tion

rtf: the present

of

end

1958,

unwili-?
ingness of Canadians like Ameri-«>

will continue years since the war. And yet it is
like to
equipment
and
services,
more
during the present year, both here perfectly clear that inflation is a
concern
about
often
increased
than
declined.
and
in the United States.
The, matter of major concern—of more
more
from a fear of what may
Labor unions argued that one of
maintenance of a relatively high widespread concern than at any
the most effective ways to cope
hi.ppen
than
level of capital expenditure, com¬ time in the postwar period. Hard¬
from the exwith the recession was to increase
bined
with
the rising trend of ly a day passes without some seri¬
i iA ing
eco¬
ous
pronouncement on the sub¬ wages so people would be able to
consumer and government spend¬
nomic
envi¬
The study by the Senate buy more. Many businessmen re¬
ing, appear to assure an appre¬ ject.
ronment.
The
likely that recovery

the

From

September,

out.

increase

on

threat

a

">

supply than ,
desirable
in thei,

and bank deposits i
supply — rose byjj
though since then it hass;

leveled

prices

might be taken

until

—

decline—during the recent
recession. Basic commodity prices
did decline to some extent but
little

of

total of money
the money

the
costs

of

one

prices

fears

growing

circumstances.

about

many

concerned

so

with

probably

was

pansion on this continent may be
less strong than has been the case

of

.t '>

Supply

increase in the money

slow to

suggest

Money

fact that the cash deficit, 7

a

inflation, did bring about a larger

Why

capital equipment were scarce
and urgently needed.
This may
mean that the impetus toward ex¬

to

engine of infla¬

an

in the light of the broad
economic picture referred to ear¬
lier should the business commu¬

and

much

as

higher costs.

are

These comments

act

forcing dangerous increases
supply of money and credit.

Increased

discourage resistance on the part
of
business
and
consumers
to'

competitive;

more

efforts
prices

increase

North

on

improvement and it seems threat

nificant

courage

indeed, that the rate of economic:
expansion may be somewhat less
rapid in the next several years
than in the past decade.
The job
of reconstruction has been done;
world markets both for industrial
materials and manufactures have

the eye in the word

than what meets

There is more

tion

it was
deficit

the

in the

deal to suggest,

There is a good

Ontario

Hank of Nova Scotia, Toronto,

General Manager, The

prices higher than they otherwise
be. Such expectations en¬

recovering,
large

that

would

would

Growth Increase

of

Rate

Slowed

business

feared

inflation

of

tions

with

widespread-expecta¬
keep costs and

that

doubt

been
to be

demands.

ample capacity to meet

DOUGLAS GIBSON*"

By J.

has

years

there appears

and

checked

Business Recovery

Inflation

recent

of

trend

a

of

money

much increased number of peo¬

ple

that money

value.

will in fact lose

There is the related danger

of getting into a mesh of controls
in an effort to prevent undue in¬
creases

the

in

prices

additional

finance

and

money

tc prevent
needed to

government deficits

from

feeding the inflationary fires. And
last
but not
least, there is the
danger that fear of inflation will
set

the

groundwork for

recession.

Sooner

or

a

serious

later

stock

prices may get so high in relation
to corporate earnings and to bond
prices
that
a
marked reaction
may set in.
People may suddenly
realize that things are getting out
of

proportion. This is all the more
likely if fear of inflation leads to

ill-considered

capital

investment

Number 5878

Volume

190

in

directions

some

to

or

.

.

.

The Commercial and Financial Chronicle

The basic facts of economic life
do not

change beyond recognition
decade, tnough fashions in
thinking may well do so. From
the early postwar period until a
couple of years ago we were still
in

a

greatly concerned about the dan¬
gers of a serious recession—a line
of thought which was in no small
influenced

measure

depression

of

It will also be assisted by

unneces¬

accumulation of inventories.

sary

by the great
'thirties.
This

(935)

,

the im¬ tively free
business and the shall not get
upturn in government ly hope that
in

provement
relative

But if

revenues.

balance is to be

a

work

And

economy.

far if

very
men

together.

Canada

we

of goodwill will

There

has

In

be

to

shot

achieved

in the reasonably near
leadership and in my view effec¬
if the government is to tive leadership
can
only
come
put itself in a position where it from
the
Government
Federal
could-if
needed
play-, an active, which
represents
everybody.
I
part-in combatting inflation-by- believe there is a lot of latent
running a surplus, then expendi¬ support from thoughtful and con¬

will

taxes

have to

increased,

be

reduced,

both.

or

or- cerned-citizens

'

j

life

which

in

closing, let
•

at

another

me

Better

fire

form

ter

much

very

what

we

ager
m um

in

do

bond

Canada about inflation—the ques¬
will really be determined in
It is

i

of the
c i p a I

depart¬

ment

certainly

at

The

First

tion

rally behind1 true that the Canadian
But they will not is
greatly
influenced

Reduce Budget or Kike Taxes

Harold G. Groll, formerly man¬

That is the commonly ex¬
pressed view that it does not mat¬

of

Ari-

Co.

z o n a

economy

leadership.
by
the
rally if appealed to as members of United States and that we should
questioning attitude about con¬
From the standpoint of
meeting organized
tinuing prosperity on thfe part of
producer
groups, find it difficult to do much better
the business community was on the underlying concern about in¬ whether; business, labor or fann¬ than
the Americans in combatting
important that the ers. Producer groups can be rea¬
the whole a healthy state of af¬ flation it is
inflation.
But we could easily do
fairs. It worked to prevent things budget be balanced so far as pos¬ sonably responsible or irrespon¬
worse, and doing worse would not
by
reducing
from getting out of hand — it- sible
expenditures sible but it is almost flying in the
only carry with it the obvious dis¬
rather than by increasing taxes. face of
checked speculative excesses.
nature to ask them to fight
In
advantages and inequities of infla¬
the last year or so, the atmosphere Rates of taxation are already so inflation.
The
easiest and
most tion
but
it
would
undoubtedly
has changed and the emphasis is high and producer interests are natural way for organized labor,
slow
our
economic
growth and
on
permanent inflation.
This is organized to such a degree that business and farmers to resolve lead to a less balanced kind of
a vigorous and
fairly effective ef¬ their
supposed to be the kind of en¬
conflicting
interests
and development. There are
plenty of
their
vironment in which we are living fort to pass on higher taxes may overcome
problems
is to examples of countries in this
very
In circumstances of raise their prices all round at the
and, to the unsophisticated, it may be expected.
position today.
And let us not
business
activity
an expense of the consumer and the
appear to suggest a steady but /not improving
assume that we shall without dif¬
.violent rise in prices and a more increase in taxes is almost certain citizen at large.
It is true that ficulty do as well as our American
to find a significant reflection in inflation
or
is
not in the long-run
less continuous succession of
neighbors. In the sphere of fiscal
This is not to say that interests even of producer groups
prosperous
times. This is a prices.
policy they are doing more than
higher taxes are ineffective in but the fact is that short-run con-?
rationalization
of
postwar
ex¬
we are now and they are carrying
perience, and not a very accurate combatting inflation but it is to siderations, matters of immediate a relatively larger defence load.
say
that their effectiveness de¬ advantage and disadvantage, bulk
•one at that. It makes a good deal
Their cash deficit for the past fis¬
creases
when tax rates are high
of sense so long as it is not widely
heavily in wage and price deter¬
and that a reduction in
And the only way to cal year has been relatively small¬
spending mination.
accepted, so long as the skepticism
is a distinctly better method, dol¬ combat
the
to which I have referred prevails..?
strong influence of er than ours and they are serious¬
the

John Small & Co.

fatalism

of

would

such

Harold Groll with

parting

a

tion.

walk of. the United States.

every

Do

concerning this question of infla¬

future,

tures

Must

Than U. S. A.

we mere¬

11

in

Phoenix, hasjoined the
municipal
bond

depart-.*

ment

John

of

Small

&

Co.,
Inc., 25 Broad
Street, New
York City,, it
has

been

an-;

,

But

soon

as

it

cepted
since

it

as

is

to

ceases

widely
make

ac¬

when

people are ready to
such an expectation they

act upon
will

hasten

accentuate

and

its

and the process of ris¬

appearance

ing prices will cease to be gradual
and

steady.

for

lar
It

sense,

dollar.

is

often

realistic to

we

are

in

flation it will
the

swing

the

be

the

the

and

The

inflation

in

will

prices

in

drastic

not be steady.

violent

more

long-range in¬

believe

people

more

for

up¬

more

correction.

following

It

is

of

long-range inflation holds

even

doubtful
the

because

ter

if

the

violence

theory
wa¬

of

the

be

further

minimum

a

be

possible

while

to

recession

de¬

or

pression. Fear of inflation may
promote maladjustments in
the
economic machinery and bring on
a

recession.

•

to
in

start

permit
the

policy in most of the

countries

western

*'thirties

has

the

emphasis

first

put

since

on

maintaining a high level of em¬
ployment.
Where this objective
has appeared to conflict with pru¬
dent financial and fiscal policies,
financial and fiscal policies have
usually been adjusted.
There is
no doubt that a high level of em¬
ployment must be a prime objec¬
tive of economic policy. But the
experience of the postwar period,
including the recent recession and
present recovery, suggests that we
.have probably been too concerned
'about the risk of depression and
not

impressed with
the strength and vitality of our
economic system. The record sug¬
gests that we should have put
more
emphasis on defending the
l value of money. In any case, we
have
now
reached
the
position
when it is becoming apparent that
'

sufficiently

inflation
an

aid

is

to

rather

threat

a

employment.

than

The

pur¬

suit of inflationary policies could,
as I have stressed earlier, lay the

for a serious reces¬
sion, And the prospect of increas¬
groundwork

ing
t

ups and downs in business to
which the developing fear of in¬
flation gives rise is anything but

favorable

from

the

standpoint of

employment.
In

this

about

,

business
that

the

given to
of

the

environment

inflation

and

recovery,

it

of

concern

continued

spending

by

seems

clear

Federal
to

Government's
the

national

penditure, i.e. its cash deficit.
<

and

I

-

organization

Gold

mean¬

and

by




society

policies

to

any case,

identity

and

and

This

we

pursue

nomic

value

must

our

national

act responsibly

well-conceived

policies of

eco¬

our own.

Mr. Groll was with Taylor;
Co., bond dealers in Beverly
Hills, Calif.
&

I. C. White Joins

Harrison & Co.
(Special to The Financial Chronicle)

CINCINNATI, Ohio

•

White

C.

with

has

Harrison

become
&

—

the

New

Stock

associated

Company, Fifth

York

and

Exchanges.

Cincinnati

Mrs. White

&

NEW ISSUE

Company.

to

buy

any

September 3, 1959

1,000,000 Shares

■}

Capital Fund of Canada, Ltd.
^

(Par Value 340 Per Share)

-

'

>

fighting inflation.

not want to tie

do

we

to

gold

and

our

cur¬

that

not—then

do

we

should

we

be
prepared
to
exercise- some
discipline ourselves. And this in¬
volves running surpluses in good
times as well as running deficits

recessions.
have

I

monetary
cash

deficit

in
the

course,
money

much

because
the

on

fact

has

large
the

of

can

force,

forced, increases

supply. It is, of
fundamental
that
the
supply should be kept in
if the money

is not

available it simply is not possible
for prices to keep rising. And with
reduction

in
the cash deficit,
policy can be, and I
think
recently
has
been, more
effective. If it is really desired to
prevent inflation, policies of
monetary restraint must be ac¬
cepted and as is becoming abun¬
dantly clear these mean relatively
high interest rates until the threat
of inflation subsides. We are only
beginning to face up to the im¬
plications of combatting inflation

monetary

ceed

managed currency. To

a

P.M., E.D.T., September 3, in single transactions involving less than

2,000 Shares each, adjusted downward for larger sales as set forth in the Pre
spectus.

The Public Offering Price, Net Asset Value .plus

underwriting

an

commission, will change at 2:00 P.M. and 4:30 P.M., E.D.T., September 3,
and thereafter will

offering period,

as

change twice each day at said times during the limited I
described in the Prospectus.

NEW YORK

CAPITAL

FUND

OF CANADA,

LTD. is

a

Canadian

N.R.O. investment company

Company Act

as a

registered under the United States Investment
diversified, opeivend investment company.

money

hand because

with

To 2:00

Share

about
a

part

Government

Federal

and

said

not

policy

Price $13.75 per

the

accept

we

must

be

suc¬

prepared

to

accept and support at appropriate
times what have always been re¬

garded
as
unpopular
policies,
namely
reducing /government

spending, maintaining and per¬
haps
even
raising
taxes,
and
limiting the availability of credit.
Must

Government

The basic

policy of the Fund is to invest in the securities of companies
deriving their income from sources outside of the United States, with not
less than 50% of its total assets invested in securities which provide a
participation in Canadian industries and natural resources. The Fund re
serves the
right to invest up to 50% of its total assets in the securities of
companies which derive their income from sources outside of both Canada
and the United States.

Copies of the Prospectus may be obtained in any State only from the undersigned
or other
dealers or brokers who may lawfully offer the securities in such State.

Carl M.
A. G. Becker & Co.

Loeb, Rhoades 8i Co.

Johnston, Lemon 8i Co.

Piper, Jaffray & Hopwood

Incorporated

Betts, Borland & Co.

Farwell, Chapman 8C Co.
Bateman, Eichler & Co.

J. M. Dain & Co., Inc.
Mead, Miller & Co.

J. Bartb & Co.

Sutro & Co.
Lovett Abercrombie 8i Co.

Jones, Kreeger

Co.

Exercise

Leadership

Kirkpatrick-Pettis Company

Bacon, Whipple 8i Co.

Blunt Ellis 8C Simmons

Nothing thht I have said is new
but though it is old stuff
it

still

has

accepted if

much of

understood

and

to

be

we

take inflation seri¬

ously and if

we

want a compara¬

Boettcher and

was

formerly proprietor of D. S. White

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

New York

.

Isabelle

Third Bank Building, members of

announcement

Discipline

standard—and it is perfectly clear

a

if

we

his

Ari¬

zona,

re¬

impersonal, and sometimes crude
discipline of such an international

in

ap¬

to

First of

emphasize that I be¬
cyclical
budgeting
is
an

rencies

in

something

The

Common Shares

Self

or

essential tool in
If

for

balance in 1959-60. In

a

with

should

net

extent this may be achieved
by using less than the amount
provided for advances for housing.
some

budgeting

overlapping.

Either

ex¬

To

of

re¬

affiliation

examine

in

ments

priority should be
further early reduction

contribution

member

government

and

Prior

of

first
a

support

consumer

any

total

'

Economic

sponsible

as

nounced.

objective,

to

thoroughly the
possibilities of economies mainly,
I
suspect, through assessing the
importance and usefulness,, of the
functions performed
by govern¬
ment departments,
by improve¬

lieve

substantial

and

not

increase

government

increases the risk of

subsequent

role

Groll

G.

prepared to accept in¬

As

should

ducing

a

proaching

his

probably even less popular
government attitudes designed to
of combatting
inflation,
prevent inflation.
namely
higher
taxes.
Or
one

might very well
convince society to take corrective
steps.
But the point I want to
emphasize is that fear of inflation
downs

and

UPS

reduction in

a

ly

in

un¬

methods

determining
If

•

producer groups is for the citizen

is

and

it

Risk

suggest

it

government spending.^But if it is,
should
accept less effective

flation.

Causes

Fear

Recession

that

one

should

Inflationary

said

Harold

Company Ingalls 8i Snyder A. G. Edwards 8i Sons Joseph Walker 8C Sons

The Commercial and Financial Chronicle

12

.

.

Thursday

.

(936)

strike
against a manufacturer, they
-permitted
to
establish
picket lines in front of a place

September 3, 1959

other words, if they have a

FROM WASHINGTON

be

...Ahead of the News

merchandise

the

sells

which

BY

of

If I

am

no

marching around my store saying
I
am
unfair to- organized

The

the

by

veio

President

I

when

labor

Washington

have

done

not

Texas Utilities Company

-

Texas

a

dawdling

three days

work

vetoes

Sat-

on

to

urday,
debate

Great

tion

Carlisle

the

it,

which hardly

ing

about.

Michigan

the

But

and

Ohio

every

worry¬

hands

Wisconsin,

Senators

and

penny
over

foreign

to

money

in

criticize
can't
the measure was expected to run possibly sell the country on giving
well into this week. The objecting away billions abroad and denying
also

has

objected. The debate

The

Senators

were

obviously

him

on

funds

fili¬

bustering.
The

bill

by

additional

for

increasing

the

We will build

cent

one

re¬

of

the

this

will

a

long

consideration

Senate and there is
about

the

The

or

urban housing.

some

in

question

mutual

of

bill

is

still

to

foreign aid taken out of the bill
by the House.

not

enjoyed

big

as

growth

earnings'and "dividends.

-

Thus,

consolidated

reached
The

$2.84.

stock

advanced

into

the

hands

quite steadFv from

see

Tuesday the conferees were
discussing the labor bill with
little
time

progress

being

the
some

a

Price Earnings

made.

any

consuming bill will be
Rights measure. If the

aid

more
seems

can't

Civil

the

permanent than foreign

tercollegiate

to have become.

Memorial

In

1949.

his

any

to

he

the Lincoln
Award,
the

National

Senator Kennedy is

sell

or

the solicitation of

he

received

offer to buy

New Issue

;

'

:

j.

&

of

Scott,

1952

he

In

he

1957,

and

86,000 SHARES COMMON STOCK

a

member

-

as

may

may

of

Man¬
of¬

made

a

Manager,

the

1958,
was

share

NOLTING, NICHOL & O'DONNELL, INC.

ALESTER
SECURITY

G.

SHARE CORPORATION

FURMAN

ASSOCIATES, INC.

JOHN H. HARRISON &

COMPANY

Board

of

WILLIAMS & COMPANY

his

present




New

'

office

of

Drexel

'

years.

FRANK B. BATEMAN LTD.

—HENSBLRRY-MALLOY-j 1N€*~—

...

a

&

V

15

:

.

'

9

sales

as

of

food

ranges,

Co.

Prior

for

reporter

Journal"

for

to

the
four

in

1959

stated

The

Municipal

increase.

rate

4%
as a

clothes

washers

the

has accelerated.

current

of 31%

of

The annual report to stock¬

homes, commercial projects,

new

state

of

business

the service

in

on

in dollar value

larger

the System show
over

number

of

an

The

a

area.

year

major
Total

in the

aggregate in¬

the first three months of 1958.

homes

new

planned, or

was

these early months of 1959 than at this time

ago."

year

and

__

"Construction

substantially

a

•">.-''V--.

is continuing with an aggressive construction
program, expending about $60 million this year. It is adding two
generating units in 1959 with a total capacity of 375,000 kw;
J 75,000 kw more will be added next year and 240,000 kw in 1961.
Peak load in 1958 was 2 317,000 kw, indicating a year-end reserve
of capacity of about 24%.
|
of

company

should

company

efficient

and

new

by the installation
the rapid rise
for boiler fuel presents problems. Years
continue to benefit

generating units.

in the cost of natural gas

However,

the company made gas purchase contracts at low cost figures,
are now expiring and much higher prices for gas have to

ago

but these

be

they are renewed. For example, under a new 21-year
signed with Lone Star Gas last year, the gas will cost
just about twice as much as previously.
The company is well
protectea by fuel adjustment clauses in rate schedules covering
practically all types of services. However, subsidiary companies
are now reviewing
these clauses in the light of sharply changing
paid

as

costs and partially offsetting increases in the efficiency of new
plants. In Texas the utility companies deal only with the munici¬
palities served, with respect to rate adjustments.
gas

Utilities

Texas

year's range being

had

been

selling. recently around 72%, this
The stock was split two-for-one in
split might
in 1960.

74%-63.

1955 and there has been some conjecture that a similar
be in

prospect this year or

New Comex Members
/

The

Board

Commodity

of-

Governors

Exchange,

Inc.,

of

New

York, has announced the election
four

of

trading

.

York.

freezers,

_

being built during

Exchange,

•_

and

New

adjusted for

number of

new

members

to

full

privileges.

Forum

Elected

President,
Co,

of

berg,.

were:

C.

New

R.

Bruce

Cade,

Tennant, Sons
&
Henry Eisen-

York;

Commodity

Joseph Forlenza, General Partner,
Felix
Jv Forlenza
& Co.; and
Keinrich Peters, General Partner,
Westmetall

(Germany).
It

was

special

*

of

were

contract

Mr. Tharpe is a member of The
Municipal
Bond
Club
of
New

York

earnings

buildings, institutional buildings and highways is

crease

A

William

—

_

-

if

lower

principal cities and towns

promotion.

Stock

York

McCARLEY & COMPANY, INC: ^that he was
"Wall
Street
WARREN W. YORK & CO., INC.

-v..

well

factor in

Scott
merged with

as Manager of
the firm's munici¬
pal bond /department, it has been
announced.
For
the
past
eight
years Mr. Tharpe has been asso¬
ciated with
the
municipal bond
department in the New York City

CO.

CO., INCORPORATED

THE PHELPS CO.

Corp...

homes completed. Residential
electricity increased 10% to 3,384 kwh; usage has doubled
past seven years as a result of increased air-conditioning

of

the

office

was

the

MIDDIEBRQOK, INC.

CLEMENT A. EVANS & COMPANY, INC.

PLYMOUTH BOND &

29.7*

Growth

Tharpe has joined Cooley &
Co., 100 Pearl Street, members of

OSCAR E. DOOLY &

25.0

2.3

holders

H.

COMPANY, CORPORATION

2.5

Power

dryers, etc.

Tharpe Joins
Cooley & Company

BE1L & HOUGH, INC.

LAIRD &

18

as

W. H.

securities.

COBURN &

7

27.5

in

when

HARTFORD, Conn.

A. M. KIDDER & CO., INC.

24.6

1.7

use

appointed Regional Sales
Manager, the position he has held
roe

be obtained from only such oj the undersigned

lawfully offer these

;

2.9

The

July,

until

Copies of the Prospectus

11%

In 1958 the total number of customers increased nearly
(despite the business slowdown in the first half of the year)

Francis I. duPont & Co., Mr. Mon¬

(PAR VALUE $1.00 SHARE)

per

years

to

was

Sales

Horner & Mason

$10.75

8

Directors.
In

Price

24.5

result of the substantial

Rela¬

Two

promoted

ap¬

of that firm's Richmond

fice.

CO.

Horner

was

Public

of

Personnel.
was

Vice-President,

UTILITIES

8

2.7.

building permits issued in the first three months this

In

and

he

ager

AND

De¬

graduation, Mr.
the
investment

Director

tions

later

FLORIDA WATER

L.L.B.

firm

Mason.

pointed

August 28, 1959

his

joined

brokerage

of these securities. The offering is made only by prospectus.

an

in Law in' 1951.

Monroe
an

25.6
23.4

____

*Pr2ce-earnii»gs ratio would be

In¬

National

Pindar

Award,

Following

offer

2.4%
2.4

Lighting

Tampa Electric

sopho¬

University,

the

at

year

received

be

gree

not an

Earn. l2*~3-58

Gulf States Utilities
Monroe

Jdrooks

University of Virginia, Mr.
a B.S. Degree in

which

7 his advertisement is

"Gain in Shares

Florida Power & Light

-

graduate

more

Building of class¬

dormitories

and

'

Ratio

Florida

new

Commerce in

difficulty in understand¬

ing it himself.
rooms

since

Monroe received

writer

This

difference.

year

public in 1949 and
low around 10 (adjusted) to

Central & Southwest..

sales.

A

in each

the

of

"

Texas Utilities
Houston

to the Partner

of the

as

Aver. Bute of

will

issue

revenues

share earnings have

Dividends have increased

came

Aporox. Yield

Assistant

directing

gain in

a

"growth utilities," but has been able
of sales into a steady series of gains in share

past five years the company's rate of growth in share
earnings (compounded) has been 11%, which compares with other
large Texas and Florida utilities as follows, based on recent prices:

"V" Award, and the National In¬
getting into
Southerners
decide
to
tercollegiate Speakers Award.
filibuster an
increasingly untenable position
against it, its consideration would in his determination to
During the Years 1950-1951, Mr.
protect
run into several weeks.
Monroe was an instructor at the
most
of
the
secondary
boycott
The
House is in much better rights of organized labor. He says, University of Virginia College of
Arts & Sciences, while attending
shape and could wind up its af¬ specifically, that he is determined
the University's Law School, from
fairs by the end of the week.
to protect the garment trades.
In
the

convert

to

has

other southern

Mr.

be

course,

has

On

A

by

Monroe

attitude,

last

Over the

du-

Partner.

be

in

very

of the

Senior

Pont,

pay-

a

on

Administration's

The

security appropria¬

be

basis.

as-you-go

outcome.

must

country

realized

were

this year's high of nearly 75.

was

Rhett

A.

revenues

•

has

St.,

it

Utilities

Texas
some

1950.

York

announced

building in

in

flooding to augment oil production continues to add to consumption
of power in the oil fields; Texas Electric Service connected 2,754
such pumps in 1958, and 763 in the first three months of 1959.

1959

at

Wall

City,v

road for Laos free

charge and yet all

Increases

1948; earnings in that year were $1.05,
for the last year were $2.73 and for the 12 months ended June 30,

firm's

the

quarters

classrooms

goods.

increased every year since

position

One

type

consumer

.

from sales to cement plants, cotton and cotton seed processors,
arid petrochemical industries, electronics manufacturers
and furniture plants.
Installation of electric-powered pumps on
oil wells and extension of the practice of underground water

execu¬

New

is that once you start
considered
building classrooms and
dormi¬
by the Senate. It has two or three
tories, it is only a short distance
controversial
features,
including to
buying
textbooks.
But
the
an effort to restore the
$400,000,000 people, his critics contend, can't

still

.

.

quire

tion

Dallas, Fort Worth, Wichita Falls, Tyler and Waco.
revenues are from industrial customers, which
stability to earnings. Principal, industries include oil refining
and production, aircraft manufacturing, cotton mills,
grain storage
and mills, and clay products.
,r>_ ,
• .
;
;' / •
I
Despite the trend toward missiles, manned. aircraft seem
likely to remain important in the defense structure for some time
to come, and the aircraft industry in Fort Worth has led in the
concept, design and building of advanced types of manned aircraft.
Food processing is important, and the favorable labor situation
should lead to future growth of light manufacturing,
mainly in
area are

year

national head-

this argue that they

dormitories

and

House

tax

gas

who

Republicans

on

an

tive

countries.

are

fighting it tooth and nail. Canada

Holding

Only 20% of system

the

Brooks
Monroe, formerly Re¬
gional Sales Manager for the five
Virginia offices of Francis I,
duPont & Co., has been promoted
to

holding

the

lends

DuPont in NYC

freely

he

yet

under

chemical

bill.

seerh^ Worth

in the

appre¬

and

SEC. purge,

Together they serve a population of 2,500,000 in a territory
of 72,700 square miles in Northeastern Texas. The
principal cities

Brooks Monroe with

Chicago in Congress among staunch Re¬
as
well as Democrats
wants more water from the lakes publicans
to
handle
their
sewage.
It
is against Mr. Eisenhower for insist¬
claimed that it would lower the ing on holding down the domes¬
budget and quarreling over
depth of the Great Lake? an inch tic
diversion

water

it

the

.

large integrated

grated.

further

went still

criticism

considerable

is

There

Senate

strengthened

as

Administration.

Bargeron

Lakes

the

But

to.

sent to him.
If he
ciably
he did the original
House
bill, it will be up to Congress to
pass a simple resolution extending
the funds of the Federal Housing
recently

bill

last

survived

nine

the

,

on

week, even
coming
to

which

of

one

Company Act of 1935. Its three subsidiaries, Texas Electric Service,
Texas Power & Light and Dallas Power & Light are
fully inte¬

ended and

about

Senate still

is

Utilities

companies

If the union

of thing in the world.

can't
win
a
strike
against the
it finds the the public works appropriation manufacturer
by closing him up
time con¬ bill is expected to be overridden
that would seem to be its hard
suming matters. There is little ex¬ by both House and Senate.' After luck. Sen. Kennedy's Presidential
ail this is a bill which has projects
pectation that
in it for nearly every Senator and prospects if they were ever very
Congress will
member of the House. Mr. Eisen¬ good are likely to be considerably
adjourn by
dimmed regardless of the way he
hower
claims
the
bill
has too
Sept. 15 in
goes on the bill. He caters to labor
time to avoid
many' new items in it.
support and even if he succeeds
If the
Congress overrides his
Khrushchev's
in modifying the bill, he will be
veto, it will be the first time this
visit. October 1
blamed for ever introducing it. He
was
accomplished.
As
this
is
will be a more
got through a very weak package
written, there was some question
likely guess.
in
the
Senate
committee,
one
as
to whether he will accept the
The Senate
which labor had no serious objec¬
modified version of the housing
whittled away

has

ELY

retailer, I insist^ that
right to have men

a

has

labor

that

Another Summer in

OWEN

this manufacturer.

BARGERON

BY CARLISLE

Public Utility Securities

gojng

will

Peters

&

Co.

•

also

announced

meeting

of

that the

Comex

re¬

quested by members of the rubber
trade

group

Trader;^ Felix. journed

for

for Aug. 24
lack

of

a

was

ad¬

quorum.

Volume

190

Number 5878

.

.

.

The Commercial and Financial
Chronicle

(937)

The Electronics

eyer possessed...We here off the and ways and
Western

1975

to

highest
of

President, Hoffman Electron'cs Corporation
....Los Angeles, Calif1 -'

;

'

-■

national

objectives—viz., retaliatory

and

power

a

■■ ■

that

in

*

dynamic, stable

Our

ing decade. To permit the industry to move forward
freely, however,
top priority must be given to electronics'
greatest need today. And
that, according to Mr. Hoffman, is to build the
industry's marketing
capability up to the level of its technical capability.
Thus, increased
emphasis on marketing and management, it is
said, will enable such

in

breakthroughs

as:

preparation

a

volume

if

we

count

can

on,

as

to

is

be

ment of

ex¬

ucts

pected in elec-i

tronics,
most

civilian

the

setter

both

growth

a

standpoint

us

to¬

day.

the

in

our

and

moment

what

let

and

ex-

opportuni-

our

responsibilities

—

Associa¬

..

tion

itself

re-

fleets

Military Electronics Dollar

of

rrtotoH

mated

states

$2

will

Our

volume,

doubled

three

years.

our companies
employ
people today than the entire
industry did 15 years ago.
Our

$9

management

have

improved.

The

of

tech-

public

in

our

in

150,000

West

we

with

persons

upwards
second

tionally,

have^ moved

We

accelerated

and

con-

centrated rate of scientific discov-

in

ery

the

history

destined

are

role

greater

to

in

of

We

man.

play

the

an

even

future.

Before

and

will

at

power

such

a

level that any potential aggressor

rationally calculate
bearable victory.

can

a

never

We

mism

dispel

can

the

about

easing

tensions. We must be

day,

than

more

false

any

ever,

on

of

on

world

guard to-

against

any

vehi-

space

in

con-

will

be

and

new

changes

end

in

on

other than

This

we

a

Many of
designed,

should

of

the

greatest

the history of
if

We

equally

objective, and

important

maintenance

of

one,

is the

\*From

dynamic

a

but

wni
'

fore

the

turers

19,

Assn.,

1959.

San

Francisco,
'

Calif., Aug.

■




potentials in

industry.

our

technical

have

breakthroughs

seen

far.

so

And

product research
resuit

is

think

that

we

unexplored

in orbit
today, speaking
to us from 25,000 miles in Space
through radio equipment powered
by electricity converted directly

in

any

customer

except

single need today, in

build

to

capability
In

why

to

our

the

general,

the

opin-

my

our

ask

to get down to cases, let's
ourselves what we can do as

individuals, and collectively, to
bring about this marketing revolution so badly needed in electronics.
The

The
ap

first

to

First

step,

I

Step
would

say,

base

and

keting
We

as

need

am

a
a

sure,

diversifv

must

accept

is

Millions

a

attitude

oriented
finds

level

of

our

to

stay

or

ahead

technically, and produce,
far outweighs our ability to distribute a product. Let's admit it,

Selling

is

only

marketing.
encompasses

and
one

marketing.
function of

Marketing
normally
sales planning and

are

These securities
them

were

terns

equipments

will

ber but

become

and

fewer

in

if

if

a

'market
cost

be

can

there " isn't
be

developed?
market

a

developed

and how?

This

would

result

in

complex. The engineering content of each equipment
wjd expand materially,
Our electronic industry here in
the West has been the
pace setter
jn military electronics with our

advanced
siles

work

and

systems

because then
ideas

they would

utilized

and

relax

and

maintain

and

Correlation Between
Research and

assume

this

our

that

position

A recerrt

Marketing

study by Stanford Re¬
,

companies maintain strong, market
research groups; less than 10% of
the low growth companies have
this

capability. There is a strong
relationship
between
marketing
growth,

I believe that to solve

individually within

our own com-

panles. Have we fully explored
the possibility of working with
our colleges and universities to
get more men trained in marketing procedures? The requirement
for marketing men in this new
field is unique.
They must be

piarket oriented technical
you

men, if
please, in order to be able to

serve

effectively

as

liaison

have we explored the possibility
marketing symposiums?
These symposiums might best
be held in co-sponsorship with the
■

universities.

If there is a tear 01
Continued

$2,000,000
Capital Notes due 1974

continuing to demonstrate leadership.

(Convertible into
should

remember

that

common

stock until July 1, 1969)

we

here in the West must have a
higher creative content per dollar,
or per pound, in our products and

services in order to compete

80,000 Shares

suc-

*

.

XT

military

Cumulative Preferred Stock, $50 Par Value
(Convertible into

^

\

.

'!

.

common

non-military field. How can electronics spark an expansion of

'

,

present

markets and build new
both within and outside our

F. Eberstadt

inrhi«?trv?

own

w

.

®

i*

"

,

rrr-^of

blessed With the great-

est accumulation of

new

scientific

September 3, 1959.

:'

&

Co.

stock until September 1, 1969)

'

be-

t w e e n management, production
and the potential customer. Also,

Senior Notes due 1971

will

our over-

nil marketing problem we will
hcive to set collectively ss well as

new

we

corn-

Institute found, that, more
than one-third of the high growth

$10,000,000

without

more

Growth

on

placed privately through the undersigned with institutions purchasing
not been and are not being offered to the public.

cannot afford

we

their

a

pany.

rockets, mistechnology, our

space

see

for

profitable operation for the

on

concepts

hamper

a

situation for the technical people,

James Talcott, Inc.

u.n>

more

sums

expended,

NEW ISSUES

sys-

at

ques-

answers

developed before these large
are

can

and

These

for investment. They have

num-

spent

asking the quesmarket for. this

tions should be asked and

management
to'* em-

should recognize, in addition, that there is a vast difference

selling

if

what

tech-

ing is based on logic. Marketing,
however, is a combination of logic

between

dollars

there

Is

product

The technical man's think-

brace.

oi

tion:

hard

it

man-

n

anyone

profession,
that

I

an

year on product research

our

mar-■

top priority function
plan and> many of us|
need professional help

an

of modern

,

without

is

management. We must
recognize the need to expand our
nroduct

practically

research and company

_

ag

SmersT we

-

search

Now

end

commercial

a

is

area

'

M.ir

own

marketing and emotion.

ability

our

in

not

homes, offices and plants?

our people have never nically
manufactured or sold sometimes'

other

is

Space;

the

commodity.

from

this

that

co-

and

agement

why not?

would be

closer

market

so

salable

a

viewpoint

a

than

between

increase,

Military

ones,
address by Mr. Hoffman beWestern
Electronics
Manufac-

an

a

ordination

encourage

strength.
Competition between companies

—

*

a

can

.

Another national

find

to bring these interests together, and, by so doing, uncover

This

Electronics Non-Military Growth

an

will

™arKaunS Wlli

must

re-

objective
remains
the
Now let's look at National Ob'•jective No. 2, which falls in the

'

marketing

u

because marketing is

government. Our industry's great-

individual and

our

world domination has weakened.
It hasn't. The tactics have changed
same.

?

some

I

I

Tn<iii«frv'«

basis of

cessfully in either the
or non-military market,

the

People
industry, who know what the
problem is, have not yet learned
what electronics can do for them.

new

a

'

product.
\ye

of

In-

wishful thinking to the effect that
the
Communist
conspiracy
for

but

still^ don't
problem is.

in

Proper

economic^ evaluation

our

procedures.

our

and

relations; market redevelopment, and the

and

combined

We

opti-

next

materials,

components

to

retaliatory

the

new

spawn

components, but

must maintain

more

requirements

of these is that
our

safe

jyjew

discussing our industry,'
however, let us recognize that its
future must be closely identified
with our national objectives. One
we

a

technical capability.

competence.

most

may

during

sist with all of

Tti,„

a
right to be proud
accomplishments.' We
have played a prominent part in
an
era
of history that saw
the

budget

missiles

contracts

have

most

grow

can

Aue inau»,,rJ» uiedie!>l

political pressures will be
brought to bear to award military

Two

these

-

This

content

into

public

search

creased

National Objectives
of

reach

electronic

double

procurement

from

Accomplish

well

billion.

$10

the

defense

There

„

Can

could

equipments.

to 5th in the

last decade.

Electronics

is

to

In

largest employer. Na-

we

It

est

new

of

million.

4.9th in sales volume

has

$6 billion market by 1970.
However, just because a company is in this fabulous electronics industry
is no guarantee of

military elec-

our

commerce

know what the

a

cles

California, electronics has become
the

to

craft

in

employ

payroll

a

$650

of

This

and it is antici-

year

ion,

cepts

the

000,000 this

There will be technical changes
as
we
sbift
from
manned
air-

companies.

Here

the forecast

and

and

we

of

operations;' industry

customer relations; pricing, advertising, sales promotion, publicity

shpwn a dramatic growth from from sunlight?
We have accom$676 • million in 1950 to $2,466,- plished the seemingly impossible

decade.

has

by making sizable investments

years>

to

that

the

than-

future

our

billion

means

niques have reflected this radical
change.
Our financial statements
expressed confidence

electronics.

is that by 1970
tronic volume

otfo

Some of

and

dustrial

words, has

xroor-e

more

facilities

market is in

capability.

15

other

in

every

greatest
new
commercial and in-

ing the next jq

esti-

an

billion—approximately

times ,+c ictroi of
its level of

40

arl attainable goal,

industry's

Our

years ago

bill

is
important that
bring the problems

i'S®f'C'Pfved4^at nr®*™ hi? ^h° WOuld ago that
havi IW' only
approximately40% or• $3.6 bil- three years
Explorer VI

1958 were due to lack of sales or
lack of customers. These companies, in short, lacked marketing

to 300 out of 770 electronic manufacturers in the West,
This year, electronics in the
11

an

dollar

be

accomplish this cross
250% increase. The growdh of
fertilization, in fact, I am conphase of our industry is in- fident we will see even greater

national
defense
budget is expected to remain at the $40 billion
to $45 billion per year level dur-

grown

1950 to

electronics

pro-

laboratories. Our laboratories can
provide the answers, we know
but as of today they

way

cording to Dun & Brndstreet, 6o%
of the failures in all business in

has

military

It

to

industry

be

of $4,475,000,000—cin increase
of 700%. Despite the fact that our

Hoffman

25

lids grown

Western

estabcan

yoar

Leslie

H.

already

begin

volume of $2.6 billion,

a

success.

Growth

Our

mem¬

bership

in-

break-

frqm $560 million in
anticipated volume this

Its

initial

new

assumption
that on our 25th anniversary there
will be more people employed by
fewer companies. Who among us
will fail to make the grade? Ac-

this

growth.

an

is

confident that

in -pated. that this market

a^e*

meeting the "first of these otijectives
that is, maintaining our
technical and weapon superiority,

Man ufactur-

1970

^his
terdependent upon the marketing
,end equipment. Consequently,

pace

further

go "any
a

just

the

accomplishment of
major objectives.

we

for

this

ll0n by 1970 ls
be

can

these

stop

ties

The Western
Electro nic

ers

for
of

amine

prod-

new

services

economy.

Before

in

America

markets,

new

Electronics

explo¬
industry

sive
from

new

billion,

am

market this volume

ticipated

and

$2 3 billion

Component parts, repairs and
services amounted to $758 million
in 1950, and this year it is an-

stable economy;
stability through
heading off inflation, and dynamic
through the growth and develop-

cer-

a

shown

matfriallv inrrpaspd
materially increased.

diversification of customers.

tainty, and that is change. Change
is inevitable, and
healthy, and is

$3.8

establish

can

throughs; in

or a

thing

of

of 47I

we

lished

industry product-base expansion and

What does the future hold? One

en-

1950 to $2.6 billion of this year,

crease

foreign competi¬

own

have

However, the forecast for

tion, and conversion of salt into fresh water. The industrialist
points
out industry in
general still has to learn what electronics can do for
'

devices

or

poucy; sales organization, training and compensation; sales forecasts
quotas, budgets, controls;

selling

marketing

biem, it seems to me, lies in getting our companies customer ori-

served.

products

little growth from the

elimination of smog, weather
control, auto¬
and housekeeping, meeting

it, and he urges for his

now.;

our

can

consumer

tertainment

matic food

personnel

markets

our

The key to

must fina out wnac
the.answer, the customer wants
first, then denon-military mar- termine
how
best
he

our

economy—are set forth by Mr. Hoffman who also
provides an esti¬
mate of the
military and non-military electronics growth for the com¬

new

ing

top

the world today,

in

ket potential.

two

our

the

of

of

means, of expand-

P.?y. c?nT W4.? Barness *?eir caPa* ented. We
bilities.Lets look for
to

EDectronics industry's pace
setting capacity to accomplish

place

any

one

concentrations
and scientific

technical

B> H. LESLIE HOFFMAN*

:

have

slope

Looks Ahead
:

knowledge and technical break- those of us to whom this applies,
throughs that any generation has. and begin to reappraise the need,

Industry

13

■

•

White, Weld & Co.

page

27

i

Financial Chronicle

The Commercial and
14

ROBERT E. RICH

BY

115 Broad¬

Thursday, September 3, 1953

.

firm

the

Mr. Cooper was
associated with J. R.

Manager.

merly

for¬
Wil-

& Beane.

liston

Here and There

1,224,000, more than double that
of June, 1949. Personal income in
May was up 12.9%, or 3% above
the
national
average
for
that
month. Bank "deposits at the end

the Fund Scene

on

In such uncertain markets as
men

company

their

managers

prospectus describing Atomic
Development Mutual Fund, Inc. This
fund has more than 75 holdings of
stocks selected from among

those

companies active in the atomic
objective of possible

of

field with the

growth in principal and income.

C

W.

1033 THIRTIETH STREET, N.

WASHINGTON 7, D. C.

Some resistance to passage of the measure,
met from the Treasury Department, which

$100.
being

nation's

entire

I
\

Incorporat ed

I

Investors
'

ESTABLISHED

I

1925

I

A mutual

«

list

fund investing in a

I

possible long-term growth of

I

capital and income.

of securities

selected for

More 'than

list

of securities

for current

"People
the

investment dealer.

The Parker Corporation
200

will

ing

^

of

tors

I

Board of Direc¬

Steel
Eugene J.

Republic

Congressman
of

member

J

Means

the

White,

M.

Charles

be

Chairman of the

Corp.;
Keogh,

Ways

House

and

Herbert
R. Anderson, N. A. I. C. President

I

Berkeley Street

Boston, Mass.

and

Committee,

President

of

and

Group

Securi¬

ties, Inc.
*

Total

net

*

*

assets

of

Television-

Electronics Fund, Inc. hit a record

July 31,
1959, representing a rise of 76.6%
over
the
past year, Chester D.
Tripp, President, reported. Over
the same period, the fund's net
asset value per share, adjusted for
a 45c capital gains payout in No¬
vember,
gained
by
47.3%
to
$16.58.
The number of shares in¬
creased 45.8% to 19,011,697, and
high

booklet-

prospectus
describes

Aviation-

of shareholders

grew

additions

three

during

months:

the

common

stocks of Bausch & Lomb, Federal
Pacific Electric and Packard- Bell

o/GROUP SECURITIES, INC.
A mutual fund offering an in¬
vestment in the growth possibil¬
common

Portfolio

.latest

Equipment Shares

the

ori

by 33.6% to 100,422.
<

of

$315,302,428

of

the number

Electronics-Electrical

ities of selected

Electronics, and convertible bonds
of Bausch & Lomb, Consolidated

Electrodynamics,
and

stocks

Varian

tions:

aviation—electronics—

Northrop Corp.
Elimina¬

Associates.

common

of

stocks

Beck-

Increased

C"

of

17.4% in bonds, 14.1% in
preferred stock and 3% in corpo¬
rate notes.
The largest single in¬
stock,

the common
electric util¬
ities, 16.5%; oils, 8.8%; communi¬
cation, 4.5%; building and con¬
struction, 4.2%; steel, 4.1%, and
holdings

dustry
stock

Biggest individual

common

stock

hold¬

Texas In¬
Associates.

balanced mutual

12 months to $216,391,686 on

At the same time,
net assets per share improved by
16.5%
to $17.91, adjusted for a
capital gains distribution of 58c

July 31, 1959.

last

February.

The

■

Tele¬

missed

not

a

Inc.,

months.

12

latest

the

gains distribution. For the year¬
long period, this will bring total
4!/2s, 1987, and Miles Laboratories, dividends to $3.4 million and cap¬
4%s,
1978—and
purchased
14 ital gains distributions to $5.3 mil¬
long-term bonds, most of them in lion—each figure the highest for
the utilities group and only four^
any 12-month period in FIF his¬
of them convertible.
The largest
tory.

utilities, were either sold or con¬
verted
to
common
stock.
The
single preferred stock purchase
was Washington Gas Light, 4.60%.
in¬
Aluminium,

holdings

stock

Common
creased

in

were

Hospital Supply, Bene¬

chased

good quality issues are now pay¬
ing a return for the most part not
obtainable in over 26 years and

higher than that paid by quality
common

"A

fiscal

number

the last three months were Family

23, 1959;
Corp. Jr.,
debenture note, 5.90% due June 1,

Finance 3%%, due Sept.

Securities

S.

Chemi¬

Monsanto

were

common

holdings

stock

in

& Telegraph,
Cities Service, General Telephone
& Electronics, Shell Oil, Socony
Mobil Oil, Standard Oil of Cali¬

American Telephone

fornia,
Jersey,

entirely

Eliminated

were

Sperry Rand warrants.
*

The

of
New
S. Steel.

Standard
Oil
Texaco and U.

economy

to

*

residents

20,000

N.

celerate

continue "onward and
a rapid pace in the
long as new

industry

maintain

steady march into Florida,
according to the August issue of
"Florida

Growth

Fund

News."

Cullough, Indiana Steel Products,

monthly by Florida Growth Fund,
Inc., a mutual fund based in Palm

The

have

their

publication/published

During

and

the

.

Natural Gas,
5% preferred
8%

preferred.

were

common stocks
W. Woolworth.

'I*
.

Growth

Putnam

The

Fund

y..

•

re¬

net assets of $13,139,-

000, equal to $17.39 per share, on
July 31, 1959, compared to total
net assets of $4,064,000, equal to
$11.60 per share, one year earlier.
The number of shareholders in¬

2,400 to 4,800 during
months, and the number of
shares
gained
from
349,115
to
755,705 over the same period.
As of July 31, 94.7% of assets
creased from
the 12

was

invested in 41 common stocks

and

one

stock.
were:

sumer

convertible

Largest

preferred

industry

groups

public utilities, 11.1%; con¬

goods and
equipment,

service,

10.3%,

10.2%, and fi¬
nance,
8.8%.
Biggest individual
security holdings were in Ameri¬
can
Photocopy Equipment, Gen¬
eral
America
Corp.,
Universal
office

Winding
•

Added

and
to

Carter Products.
the

portfolio

during

N. H. Ball
Bearings,
Aldens,
AMP,
Inc.,
Walter
(Jim)
Corp.,
Beauty
Counselors and Holt (Henry) &
Co.
Eliminations were Atlantic

ended

and, allowing for a 44.5c per
capital gains distribution

Refining, Hammond Organ,

Richfield Oil

share

ton,

in

Stores, Ltd.

May, boosted its net asset

.

the latest quarter were

services."

months

and F.

ports total

pro¬

July 31, 1959, Electronics Invest¬
ment Corp. increased its total net
assets from $17,142,515 to $30,137,333

Rubber

*!•

begun to ac¬

automation

12

Southern
Railway

S.

of Ranco

Industrial

and are utilizing electronic
systems to increase pro¬
man-hour to a -greater
degree than ever before.
Con¬
sumer
electronics
has
reached
record levels in terms of produc¬
sales

*

*

reported in Cel4V2% cumlative convertible

anese

duction per

tion,

U.

Decreases

shift

organizations

In¬

Mont¬

Coal, Public Service Co. of

H.;

and

program

program.

and

were

Southern

period

system

There

Creek

electronics role in the weap¬

ons

1965.

portfolio increases
in
American
Bakeries, Consoli¬
dated Edison Co. of N. Y., Island
_

control

of Florida seems

at

and

the

15,

Treasury,

Genesco,

of

Harvester
*

;

grams

,

*

so

with

S.

Ward & Co.

gomery

for the fiscal
indicates a con¬
of
procurement,
heavy emphasis placed upon

1959-60

siderable

U.

stocks

ternational

tary

spending

July

due

were

%, due Nov. 15, 1961; U. S. C.
I., 3%%, due Feb. ,15, 1960, and

common

and industrial contracts.
A
careful analysis of the
military

Finance,

J.

1963;

15,

2 V2

re¬

C. Penney, Rohm & Haas
and Sherwin-Williams. Decreased

ficial

cal,

July

due

6 V2 %,

A.,

of

electronics

the

6V4%,

A.,

Eliminated

"It is now quite clear that
industry, over the

port.

due

General Motors Acceptance Corp.,

long-term, will continue to be fa¬
vored with ever increasing mili¬

American

Treasury
Notes
Aug. 1, 1959;

1971;
U.
S.
Stamped, 4%,

Investment

latest quarterly

in

Corp.

Acceptance

General Motors Acceptance Corp.,

E. Salik, Presi¬

Electronics

of

dent

have

from $100,046,462, equal to
$8.82 per share, to $104,626,603,
equal to $9.86 per share.
New
securities
added
during

increase in earnings
in prospect for a large
of electronics companies,"

predicts Charles

the fund's last

net assets

total

grown

sharp

appears

year,

preferred A, and

*

*

*

generally."

stocks

Since the end of

On the

date, the fund will also
a $0,153
per share capital

same

President

Devens,

proceeds from the sale
previously pur¬
at
considerably
lower

stocks—many

prices and when stock yields were
generally higher—could be re¬
invested in a bond market where

quarterly

its estab¬
lishment in 1935, will pay its 95th
consecutive dividend Sept. 14 at
the rate of $0,027 per share, bring¬
ing total dividends from invest¬
ment income to $0,107 per share

for

Charles

the

"that
of

dividend payment since

make

single bond purchase: $1,000,000
of Quebec Hydro-Electric 5s, 1984.
Five preferred stocks, also largely

"We

S.

*

*

*

Financial Industrial Fund,

bonds—Atlantic Refining

Reduced

York 5, N. Y. CPC

&

disposed of two con¬

fund

vertible

the

Dynamics.

Telephone

graph, $7,931,587; Texaco, $5,787,600, and U. S. Steel, $4,202,275.

their

common
stock holdings:
Barry Controls, Clark Controller,
Corning Glass Works, Eitel-Me-

stock commitments were

American

in

in

were

group

common

fund, has announced that its total
net assets
rose
31% during the

& Rubber and General

GROUP, INC.




July 31, Boston Fund had
its assets in common

As of

65.5%

*

*

foreseeable future

Borg-Warner,
CurtissWright, Ford Motor, General Tire

.State.

i

■

which has

ings:

Address,

Varian

*

likely

dustries.

(4am.

<53 Wall Street, New

and

Boston Fund, a

upward"

Topp In¬

Corp.,

Telecomputing
struments

Instruments, Cornell-Dubilier Electric, Penn Controls, Tech¬
nicolor and TelAutograph Corp.,

Mail this advertisement.

DISTRIBUTORS

who

corporations and eight
corporations in 20 dif¬

industries.

ferent

Co., Perkin-Elmer Corp.,
Servomechanisms,
Square
D,

man

equipment industries.

fifty.

Southern

Report

and convertible bonds of

electrical

companies doing business
and the South.
The
now
owns securities
in 56

Florida

Florida

of total net assets.
were
indeed fortunate,"

50.8%
noted

News" states.

Growth

vests in

Fund

pe¬

riod, that proportion of the fund's
portfolio (comprised of bonds and
notes, preferred
stocks and to¬
bacco and public utility stocks)
has
increased
from
30.9%
to

Fund, Inc. is a
diversified mutual fund which in¬
in

the

During

stocks.

common

"defensive"

and

issues

income

don't go where
Industry goes where
are," the "Florida

Growth Fund

J

nine

has emphasized fixed

Fund

come

states.

people

first

its

?:

*

months, end¬
ing July 31,1959, Incorporated In¬

other

of

excess

Midwestern

and
*

today

industry is.

Martin

past

Principal speakers at the meet¬

fund is available from
your

an¬

nounced.

__J
each

has

association

the

of

rector

I

A prospectus on

ex¬

Companies
Oct.
22 - 23
in
the
Savoy-Hilton Hotel, New York,
George A. Mooney, Executive Di¬

a

income.

are

persons

tional

Income Fund
investing in

200

pected to attend the first general
membership meeting of the Na¬
Association of Investment

Incorpora t e<l
A mutual fund

in

far

rate

southeastern

Instru¬

ments.

II,
43,287
new
businesses
added to the Florida scene,

were
a

holdings in General Railway

housing,
Fund
News"

industry, too, is sprouting
the state, the publication

rubber, 3.8%.

I"

Seeburg Corp., Siemens &

Signal

over

War

*1

The Mutual Funds

were

points cut. In the 10 year period
immediately
following
World

combined .mutual

its

-

In

New

&11

fund-life insurance plan
and has come up with the word that slightly more than half of
those replying prefer the plan for its investment features.
"It
makes me save and invest regularly" was the sentence checked by
37% of the group, and 15% chose "It represents a sound invest¬
ment." At the same time, 34% noted '"It protects my family, in
case anything should happen to me" as their reason for liking the
plan, and 14% selected "It provides low cost life insurance."
of

members

are

Bills. Increases
were
registered
in
American
B r o a d cas tin g
Paramount
Theatres, Haloid Xerox, Hewlett-?
Packard, Lockheed Aircraft, Pack¬
ard
Bell Electronics, P h i 1 i p s'

adds.

however, is
calculates it

those shareholders

Putnam Growth Fund has canvassed

FREE ON REQUEST

(H.

S. Treasury

of U.

n e w

Growth

"Florida

$1,000,000 annually.

will reduce tax revenues by

EITHER PROSPECTUS

portfolio,

I.) Fiber Glass and several classes

the

of

5.7%

representing

built,

Florida

Atomic Development Securities Co., Inc. Dept

its

to

Friden, Thompson

Halske,
Standard
Coil Products
and United Aircraft.
Reduced

.Vy

**

*

eliminated

billion. During this same pe¬
riod 287,000 residential units were

for the

help

warrants

tron

$4

mutual fund industry is shaping up in
Congress over the Federal stamp tax on purchases of fund shares.
The House Ways and Means Committee has approved a bill which
would cut this tax from 10c per $100 of stock value to just 4c per
Some

added Taft Broadcasting and Tex¬

during the past five years to some

rather good.

($129,916,000) and of common
stocks
($117,582,000). Tennessee Gas Transmission ranked sec¬
ond in combined securities ($76,481,000), and Texas Utilities was
runner-up in the common stock category
($72,034,000). In the
preferred stock group5 El Paso Natural Gas stood first ($26,393,000), followed closely by Tennessee Gas Transmission ($23,607,000).
Top electrics were Florida Power & Light among the
common stocks ($68,001,000), American and Foreign Power among
the bonds ($15,741,000) and Pacific Gas & Electric among the
preferred stocks ($9,008,000).

glad to send.you a free

its

Lamp,

of overall holdings

dollar value

since

huge influx of people has
construction expenditures

The

According to
the NAIC, 153 of its 179 members (155 mutual funds, 24 closedends) hold securities of 305 public .utilities. A recent tabulation of
the value of these holdings is put at $2,372,000,000-—about 14% of
the total net assets of the investment companies involved.
The
breakdown by types of securities: $1,814,000,000 in common stock,
$306,000,000 in preferred stock and $252,000,000 in bonds.
American Telephone & Telegraph, of course, led the parade

in

about

to

fund, which has $26,167,036
assets in
common
stock,

'rne

of

zoomed

National

utilities study by the

Thus, the timing of a recent

Association of Investment Companies is

amounted

year

1946.

characteristics.

such

ATOMIC

last

of

$4.5 billion, a 158% increase

taking action to in¬
proportionate holdings of stocks in industries having
fund

of mutual

months

recent

crease

We will be

thoughts of

the present, one, the

habitually drift toward the so-called
"defensive stocks." There have, in fact, been several notable cases
investment

in

Interested

income.

(excluding agricultural
June of this year totaled

in

Jobs)

Production

as

share from $4.97 to $8.02. In-r
with the quarterly report
was the fund's 3c per share quar¬
terly
dividend from investment

eluded

ployment

New York City, members of
York Stock Exchange,
announce that James Cooper has

joined

200,000 persons a year are
settling in Florida and em¬

now

New

the

record

in

numbers.

way,-

■

.

per

flocking to

Over

Carreau & Company
Carreau & Company,

ple and industry are
the
"Sunshine State"

Mutual Funds

with

James Cooper

points out that peo¬

Fla.,

Beach,

!

.

(933)

value

Shui-

and Dominion

Volume

Number 5878

190

.

The Commercial and Financial Chronicle

.

.

(939)

siderations. The

Bank and Insurance Stocks Gravity Is Not a Grave Subject
When Anti-Gravity Is Discussed
BY ARTHUR

WALLACE

B.

is

to

one

city

a

to $100

up

add that

a

This Week
We

-

get

today

which tend to confirm

of

all

matters,

bank

on

—

headlines

of

sorts

all

earlier

our

Bank Stocks

yield such

predictions of increased earnings
by the banks, and as a result,
higher market prices.
\ There is the matter of home
building. What -has been

the

be

can

the

two

and

funds

for

home

available

at

officer.of
two

In

offered

the

ago

bank

money was

commonplace,
"Wall

a

a

large savings bank

a

weeks

paragraph

In

with

writer

officer stated that 6%

becoming

were

5%.

and

the

of

ago,

years

building

4%%

conversation

about

half

a

Journal"

Street

Manhattan banker
thought that the re¬
rate of 5%% would

a

the

cent

ruling

soon

go

difficult for
people to get used to rates

many

such

to

these

as

been

It is

6%.

because

inured

they have
artificially

the'

to

United

tawa

dispatch
Bank

had

rate

earlier.

week

a

find
rates
plenty
high;
and,
historically, before the politicians
look over the control of money in
the 1930s interest rates had their
ups
and downs just as was the
case
with
commodities,
stocks,
bonds, and all else.
In

<

period such

a

there

now

should

is

we

influence

conditions that

interest

economic

in

are

why rates

reason

no

follow

not

as

tempo

rates.

A

should

high

be

ac¬

have

This

had

leads

They

to

credit

a

with

faced

are

d.ation

their

finance

to

our

advance

2

there

by

expressed

economy.

interest

is

rates
anguish

great

"liberals"

our

*'

For

while

a

On

top of the Federal Govern¬

the market to raise
has been a steady
corporation issues;

well

new

state and munici¬

new

as

pattern

-

was

of

up

'period-

business

orthodox

loan

volume

in
the
July-December
when
crops
had" to be

moved

and

vided

with

has

pattern

Closely adhered
in

pro¬

inventories;
down
December. But of late

following
the

Christmas trade

been

not

too

Nevertheless,
past few weeks we have
some
loan expansion on
a
to.

the

seen

basis.

seasonal

Aug. 21 there

For
was

example,

on

increase in

an

business loans

amounting to $77,(versus
a
rise
a
year

€00,000
-earlier

Aug.

of

$55,000,000).

the

28

with

■(compared

000,000
total
000

rise

in

the

a

1958

at that time
for

the

.increase
June

of

30

decline

Then

on

$54,000,000
drop of $10,-

was

Now all of this
1959*

The

earnings

too

is

in

the

course,

week).

banks

the

The

date,

against a
$224,000,000
at
the

of

period

a

year

earlier.
y
Now look at the rates we
•about almost every day. The
trend

in

the

United

bond

States

market

has

read
price
Gov¬

move.

in

carry

large

a

their

on

ability to roll

propor¬

books

and

into higher
interest rates by reason of the
banks'
preponderance
of shorfcterm
investments, there can be
little argument that 1959 earnings
will

be

over

of

above those

well

$

1

$

■

$

who

or

for

from the New York State

Banking

The indications are
Department of Justice
kindly to this con¬

the
not

must

con¬

was

a

partial

.

gravity

for

the

world.
I

♦

}

certain large

a

the

over

a c

!

An

rays

from

anti-gravity paint would be

ideal.

while so many syn¬
products
(from antibiotic

Now,

thetic

the

with

power

.

ainted

qu

must produce.
—
such as

man

natural

anti-flammable

Australia to Sell

$20,600,000 of Bonds
Howard

bassador

Holt,

Beale, Australian Am-1
to

United

the

that

stated

the

Rt.

States,

Hon.

jurisdiction in
this depart¬
the merger will

department

lacks

this

Treasurer of the Common¬

wealth

of

Australia,

has

ment's belief that

probably

effected,

not

many

days after Labor Day.

which

paints)
are
being
made
from filed a
registration statement on
petroleum, it seems possible that
Aug. 28 with the Securities and
ah anti-gravity coating will some
Exchange
Commission
covering
day be developed from petroleum.
$25,000,000 20-year bonds.
The metallurgists are also care¬
The issue will

been

has

made

i

such

along

this

in

lines

country

Netv

Roger W. Babson

of

Boston,

New

Hampshire,

but

I

am

riot

abijoad, especially in Den¬
and

mark

Germany.

In

Copen¬

hagen, where I have been invited

Mayor of Copenhagen,
the Bohr Institute. I

to visit the

is

located

therefore

hagen

on

the

month via the

nineteenth of

this

Swedish American

Not

would a partial in¬
gravity add greatly to

only
of

the

safety of all

but

it

would

add

work

is

to find
gravity.

a

an

is

not.

An

underwritten

elevator needs

offering of' the bonds is
expected to be mad6 about Sep¬
17.
:

tember

The

United

Land

recent

mo£t

sale

of

offices

at

business
Officers

of

West

210

the

to continue

fering
bonds

market

States

of $25,000,00,0
in

October

Holton,

Hull

&

1958.

.

long

days

in

or

of

any

dents

Bernice

and

O.

States

which

sunshine.

of

Donald H. Randell Will

Pyne, Kendall Firm

have

Persons

Donald H.

Randell, former Vice-

President of Mutual

Co., New York City, has been ap¬

possible
later
subdivision.
For
harnessing gravity—swamp land,
mountain land, wood land, or even
land

.property

could

be
equally
land .should be

Such
that

is

good

no

anything else and which
for

a

few

dollars

per

now

for
sells

pointed

Wall

of

representa¬

Kendall & Hollister,

Street,

members

New

the New

York

when buying acreage

for

possible subdivision or farm¬
ing, there are many other con¬

This announcement is neither an offer to sell nor a
The

AND

NATIONAL

BANK

Exchange.
Mr, Randell has been an active
of several

committees of

the New York Society of Security

Analysts.

solicitation to buy any of these securities.

offering is made only by the Prospectus.

September 3,1959

NEW ISSUE

Spcedry Chemical Products, Inc.
Price

Class A Stock

*.625 per

Share)

Share

Ofsthun,

GRIND LAYS

only from such of the several un¬
lawfully offer these securities in such State.

Copies of the Prospectus may be obtained in any State
derwriters, including the undersigned, as may

LIMITED

Alma/gamating National Bank of lmdlmLtii
and Grind/ays Bank Ltd,

S. D. Fuller & Co.

Head Office:

BANK

26 BISHOPSGATE,

LONDON, K£J

and
London Branches

INSURANCE

54 PARLIAMENT
13

STOCKS

:

STREET, S.W.I

ST. JAMES'S SQUARE,

Trnstee

Depts.:

13

St. James's Sq.; G»tL

54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54
Parliament St. A
Rd.(

Nairobi;

13

Laird, Bissell & Meeds
Members

New York

Stock

Members

American

Ins.

St. James's

Ernest M. Fuller & Co.

* SOMALILAND PROTBCTTn W

and
INDIA. PAKISTAN,

Telephone:
Bell

BArclay 7-3500

Teletype

NY

1-1248-49

Specialists in Bank Stocks




CEYLON, BURMA,

TANGANYIKA, ZANZIBAR,

ADEN, SOMALILAND

Hallowell, Sulzberger, Jenks, Kirkland & Co.

Howard, Weil, Labouisse, Friedrichs

Branches in:
120 BROADWAY, NEW YORK 5, N. Y.

Draper, Sears & Co.

George D. B. Bonbright & Co.

Sq.

Bankers to the Government in : ADEN, DMk
UGANDA, ZANZIBAR

Bioren & Co.

Dept.:

Stock Exchange

Exchange

Laird, Bissell & Meeds

Janney, Dulles & Battles, Inc.

S.W.I

UGANDA,

PROTECTORATE

NORTHERN AND SOUTHERN

RHODESIA.

Beru yn

Jones, Kreeger & Co.

Company

T. Moore & Co., Inc.

City,

York Stock

acre.

member

Of course,

-

registered

a

tive for Pyne,
52

Management

Secretary-Treasurer.

A recent issue of Treas-

.

land which might be desirable for

out¬

(Par Value $.50 per

.

our

Co.

President; Kenneth D. Mann and
Willard
Leabman,
Vice - Presi¬

5%

20-year

investment

Robert J. Henderson,

are

of¬

an

was

218,333 Shares

Seventh

bonds

of the Commonwealthin the

formed in Los Angeles

Street

firms

by Morgan Stanley & Co.

Public

a

valuable,

with which to operate.
Therefore, I eliminate all schemes
to overcome gravity by any form

investment

some

desert

side power

of

group

buying such land should insist on
very cheap acreage and not buy

,v-

think that an elevator
anti-gravity machine, but

a

headed

rays.

partial gravity insulator

Southwestern

Not

You may

it

a

Florida,

partial

Insulators Must

Gravity

by

day
discovered,
there
great jump in the price
of all vacant land, especially land
in a semi-tropical region such as

airplane travel,
greatly to the

seeking

sun's

Cheap
When

•

the range,

insulator of

the

Everyone Should Own Some Very

and the guid¬
ance of
missiles by which World
War III will be fought. Hence, all
nation's
are
now
desperately at

power,

is

harness

to

could be

Line.

sulator

Commonwealth

Phoenix, Ariz., where Mr. Walter
"1 The proceeds of the issue will
T.
Lucking,
President
of
the be used to finance various
public
Arizona Public
Service Co., has
works
projects
throughout the
gathered together a group of men Commonwealth of Australia.

leaving for Copen¬

am

the

that

nounced

be

Research
Foundation

to

fully watching
for
some
antigravity product. Personally, I feel
that gravity will be harnessed in
conjunction with the sun's rays. I
have
recently
returned
from

the

Gravity

Holton, Henderson

with

an¬

medicines

remains

It

Harold

p r o g r e s s

solidation, although it is felt in
some
qualified quarters that that

be

back¬

own

take

case.

world

diamond, them

so

used, these .would be satisfactory
for the harnessing of gravity.

well

kept

which

some

magnetic

have

.

rays

the skies, or
possibly the sun's rays—could be

can

conquer

insulator

Depend Upoii Power

Department.
that

this
column.
of the mail

story

all

long as they
be developed by an outside

If

1958.

change Bank and New York Trust
has
not
been
forthcoming
yet

does

the

hunted

finally found it in his

electrical

of

Cape Canaveral,

power

V

approval of the
Chemical
Corn - Ex¬

of

at

discovers

necessary

merger

More¬

it.

con¬

tinued downward in recent weeks,
•and there seems to be no end to
the

loans

which

reserves

LOS ANGELES, Calif.—Holton,

corresponding

.

carried in
condition, and

of

Henderson & Co. has been formed

quarter

ernment

the

of

we

the

for

banks, an
$187,000,000 since the

was

York

the skies'

coming from

power

vinced that the nation which first

reserves

unallocated
of

today

allowances,

statements

some

considered

Of

make

large bad loan
also

50%, a
earlier
years

been

secure..

must

to

to

have

not

shares.

loans

of

close

which,

would

bank

ratio

assets

figure

spells out better

.on

average

total

was

Florida, in the Spring, I

ment

$9,890,000,-

New

natural

some

elsewhere

seeing

reading

now-

Remember

anti-gravity device will be discovered

familiar with the state of develop¬

pal offerings.

The
the

back

be

are

partial gravity insulator is

a

sun's rays.
When I

through

ment's trip to

and

soft money people.

.

booming

economy.

tion

of other items in
(Yet just because

squeeze.

the

sapne
heavy demand for loan accomifio-

relatively,

,

with.

contend

to

addition. But with

because
the
demand
for
money
is
present.
Rates for labor go up, so do com¬
modity prices, and a multitude

rising; and

.

companied by high interest rates,

simply

in

volume

Loan

course, that country is simply
experiencing
what
we
in
the

as

•

back to the 1920s we

of

of

Fair

years.-

interest
record

a

the Dominion has been

of

go

to

stated

14

Canada's

stretched

Ot¬

An

6.41%, nearly one-half of a per¬
centage point above the figure of

there

Deal

Aug.

of

of

stream

we

alone.

States

funds,

If

it will

that

that

assumes

short-term

on

be understood that
is not applicable to

let it

And,

maintained low rates of-the New-

•

and

This

buy

never

or

yard!

this condition

States

v

that

as

long days of sunshine will jump

are

price, according to Mr. Babson, if

discovered.

first

finally

me

should

over, the best bargains may be
within a few miles of where you

governments?

shortage of mortgage money.. that

About

an

of

because

slowdown

a

boom

in

1964, was
quoted on Aug. 22 at a yield of
4.61%. When did we last hear of
a

a

Cheap land located where there

notes due in May,

ury

Let

per acre.

person

—without

By ROGER W. BABSON

the more
pay—probably

town,
to

land—in Florida

any

such land

nearer

or

afford

can

15

Peters, Writer & Christensen, Inc.

16

The Commercial and Financial Chronicle

(940)

on

President Warns Congress of Danger Inherent

debt management proposal

our

to offset

do much

could

the pro¬

have made toward fiscal
responsibility.
To manage the public debt in a
sound manner the Treasury must
be able to borrow money for long
as
well as short periods of time.
A' 1918" statute ~ now
prescribes,
gress we

in Continued Bond Interest Rate
President's

urgent follow-up

tion's

plea

to end the government

warns

inaction means harmful

Congress

to

sums

Ceiling

the Administra¬

up

bond interest rate ceiling.

inflationary consequences to the

He

econ¬

cussions

and at home regarding

opinion abroad

on

istration does not favor

to

The President

for

departing

Europe,

higfh interest rates.

reminded

Eisenhower

President

Congress of the dire need to re¬
move
the artificial interest rate

Government bonds ma¬
in five years and longer,
on
Series E and H savings

ceiling

The

bonds.

chief

The text of the

ly

the

President's

rnes~

On June 8,1

transmitted to

I would like to make two

ity

(1)

for
do

to

of

rate

more

limitation

the

on

can

pay

the

rate

savings

on

■■■ S-;
: t
week, the Committee on
Ways and Means of the House of
Representatives voted to suspend
consideration of these proposals

the remainder of this session.
action

was

pointment to
The

the

grave

a

These

rectly
There
the

people
to

Failure

have
enact

a

it

of

thrifty Americans
fairly treated, since the
Treasury will be unable to pay a
fair rate of interest on savings

be

all

fair

in¬

and

no

as

The cost of living may

Treasury

manage

in

At

no

and

its

debt.

be

able

that

Suppose that an
mortgage on his

a

had

be

to

renewed

months. He would be

few

every

for

borrow

to

periods.

individual had
home

simple par¬
the Treasury

to every shift in
the
and to every change in

exposed
economy

in

gress

effect

the

forcing

is

Treasury into this type of exposed
position. It is saying to the Treas¬

"When

ury,

have any borrow¬

you

ing to do, do it all

short-term

on a

bonds.

question
to

of all of the

a

our
way

We

will

be

$290,000,that adds

Abroad

and

a

there should

to

as

our

deter¬

our
debt
the best interests

.manage

people.

the next twelve months

$85,maturing se¬

amount
it

cover

normally

can

of

sively

carry

afford

sizable

a

short-term

connot

to

But

debt.

rely

exclu¬

borrowing that must be

on

continually renewed.
Congress
tinue

Yet, if the
that
we
con¬

insists

to

finance

wholly
with
securities, the whole
$200,000,000,000 will grow shorter
short-term

shorter.

and

This

harder to

even

ture. .'

will

handle

it

make

in

the

fu¬

/'

■

The vital interest of all Ameri¬

is at stake because excessive

cans

lar.

The

balanced
so

worked

tirelessly for

budget. We need this
that

we

can

avoid

the

the billions of dollars that
thrifty
and far-siglfited Americans have
saved. But

having been sold, this

of

amount

debt

issuance

Congressional inaction

of

a

short-term

would

have

large

Treasury
effect

an

not

greatly different from the issuance
of

new

money.

curities

are

their holders

can

be

paid

se¬

off,

treat them much

acquires

a

we

by

commercial

commercial

a

a

from

handle

bank

million dollars. This
a

million-dollar

in the money supply. When

the

money supply builds up too
rapidly relative to production, in¬

flation

is

announcement appears as a matter

New Issue

the

result.

of record

The

only.

September 3, 1959

the
good

our

if

we
the

in

piling

for

ment stems not

sound

only from domes¬

tic considerations.
tors

have

our

securities,

claims

Foreign inves¬

substantial

of

With

in

stake

our

these

other foreign investors

a

manner

our

affairs.

they,

in

which

It

is

central

dollar

that

view

Share

strong

PALIN
31

SECURITIES

Silver

Spring Road
West Orange, New Jersey




our

have the de-.

we

preserve

fi¬

our

integrity and to protect

currency.

issue

-

of

greater importance

before

come

this

session

of

Congress. In the best interest of
the American people, I urge the
Congress to enact the Administra¬
tion's proposals at this session.

DWIGHT D. EISENHOWER.

Alkow Opens New
Mutual Fund Dept.
Alkow &

Co., Inc., members of

the New York, American

and Pa¬

cific

Coast
Ex¬

simple result of legislation. It is
earned
by adherence to sound
practices.
Let

state

plainly as I
that this is not legislation to
me

interest

crease

ministration

high

is

interest

This

rates.
in

not

their

of

ment.

We
always
cheaply as we
resorting to unsound
practices.
The Treasury already
has authority to borrow at any
rates of interest on obligations up
we

This

new

d e p

artment

will

be

the
Gerald

Belfert

under

personal

direction

of

Gerald Bel¬

seek¬

are

Mutual

a

Funds depart¬

of

as

What

with the

establishment

in¬

without

to five years.

Mu¬

Funds

field

Ad¬

favor

the

tual

can

c-ed

entry

into

rates.

seek to borrow

ing is the authority, already pos¬ fert, formerly with First Inves¬
sessed by all other borrowers, to tors Corp.
Mr. Belfert was also
obtain funds for longer periods as Vice-President in Charge of Sales
of
well.
To
Peoples Planning Corp., and
prohibit the Treasury
from paying the market price for until joining Alkow & Co., Inc.
long-term money is just as im¬ was Group Supervisor of the Mu¬
practicable as telling the Defense tual Funds Department of Sutro
Department that it cannot pay the Bros. & Co.
fair market price of equipment.
The

result would

be

the

same

either case; the Government
not get what is needs.

in

could

Talcott Securities
Placed

Savings Bonds Attrition

Privately

James

The need for Congressional ac¬
with respect to the existing

tion

Talcott, Inc., one of the
country's oldest and largest inde¬

3.26% interest rate ceiling on sav¬

pendent commercial financing and
factoring organizations, on Sept. 2,

ings

pressing.
occupies a dual
trusteeship position with respect
to the 40,000,000 Americans who
own savings bonds and the
8,000,-

announced the placement with in¬

000

notes

The

is

bonds

equally

Government

people who purchase them
regularly.
The
average
holder
looks

Government

the

to
rate

of

for

a

reasonably

return,

all newly issued E and H

on

held

to

bonds,
Whenever

maturity.

stitutional

senior

of

investors

notes, capital notes and preferred
stock

The

$16,000,000.

totalling

issues

$10,000,000 of senior
due 1971; $2,000,000 of capi¬
are:

tal notes due 1974 and convertible
into

until

stock

common

July

1,

and 80,000 shares of cumu¬
lative
preferred stock, $50 par
value, convertible into common
stock until Sept. 1, 1969.
F. Eberstadt & Co. and White,
1969;

Weld & Co. assisted Talcott in the

placement of these issues.
1854, James Tal¬

Established in

cott, Inc. is engaged in all phases

will be made retroactive to

of industrial finance—accounts re¬

1, 1959.
return

savings

In addition, the fu¬
to

bonds

increased

investor

the

purchased

before

of 1%.

result

equitable rates of

on

maturity would

by y2

would

actions

Common

in

These

fair

and

return on sav¬

ceivable and inventory

NASSAU SECURITIES SERVICE
4

Hanover Square
New York 5, New York

DAVID BARNES & CO., INC.
Street

New York 5, New York

loans,

the

of

half

first

of

ume

of

1959

receivables

companv

vol¬

the

acquired

totaled

by

than

more

$495,000,000.

not be eaten away

erotion

the

In

of the trustee¬

of the Govern¬
ment with respect to holders of
savings bonds involves the pur¬
chasing
power
of
the
dollars
invested in the bonds. The savings
bondholder expects the Govern¬
ment to
try to insure that the
future value of his savings will

assure

financing,

equipment and special
factoring, industrial time
sales financing and rediscounting.
mortgage,

FREDERIC D. CARTER

ship relationship

30 Broad

to

has

be

UNDERWRITERS

Hanover Square
New York 5, New York

termination

nancial

a n n o u n

The second part

4

and abroad that

changes,

a

ings bonds.

KENNETH KASS

artificial

In a free market
confidence is not the

June 1 and held to

1

a
large public debt, but we
certainly handle it soundly
efficiently if we remove the

economy,

ture

—

and

Stock

June

(Par Value $.10 Per Share)

Price $8.50 per Unit
Shares Preferred

can

legislation is enacted, this rate in¬

and

4

our

and

crease

100,000 Shares of Common Stock

to

whether

stable currency.

if

(Par Value $2.00 Per Share)

have

the

to

as

raise the rate from 3.25% to 3.75%

6% Cumulative Convertible Preferred Stock

is

our
Federal debt.
Ours is the
richest economy in the world. We

handle

we

essential

continue

too,

American

foreign

practical interest in

very

the

proposals

so

banks and

have

Issue

respect

going to demonstrate re¬
sponsibility in the management of

other

as

nation.

financial

a

holdings

well

as

this

on

at

with

are

has

manage¬

competitive with
other savings
opportunities. The Treasury has
announced that when the ceiling
is
removed, it will immediately

J. W. HANCOCK INC.

we

No

Foreign Investors to Consider
need

issue

legislative

tificial restrictions.

The

trusteeship convital; the thrifty

is

obstacles to borrowing;
competitively in the free market.
By adopting the Administration's
do not proposals the Congress would be
proper demonstrating to people at home,
ex¬

the Government's requirements in
free credit markets without ar¬

fair

200,000 Share."

all

why the Treasury
capacity to finance

must have the

is

in¬

be

these

spending. But
efforts to keep

debt

is

our

preventing

rising

our

This

way.

million dollars of Gov¬

as

fail in

may

prices

securities, bank deposits

same

crease

lodged in

When

ernment

the

to

ready cash. Moreover, shortsecurities
are
more
likely

banks.

rise

Because these

soon

in

We have made

toward

progress

within

precautions

necessary

of credit.

use

can

to~ become

deficits that lead to higher prices,
to a rising cost of
living and to
an
eating away of the value of

Responsible people at home and

Within

like

Inaction Can Undo

the

The

en¬

exercise

must

we

of

What's

is

nation

live

must

Each

Treasury

the

economy,

the Government must borrow

term

have

balance

Home

All these shares

And

do

large
Vital Interest of All at Stake

question as to reliance on short-term financing
obligation
to can have grave consequences for
justly with the the purchasing power of the dol¬

patriotic duty, in Gov¬

soundly and in

rise fur¬

to pressure on prices;

Repercussion

which

di¬
the

of their savings, some¬

a

What

the

apply

in

way

be

mination

bonds;

debt

meet

to

to

handles

fairly

portion

a

be

cannot be

000,000

investor

millions of its citizens who invest

that:

to

order

considerations

can

ernment

as

in

the

the

while

joying

one

why

Government's

disap-, deal

me.

American

forced

show

curities, redemptions and seasonal
cash
needs.
This
Government,
with its great financial resources,

opportunities

to

times

ther,

suggest

me

part

as

require¬
different kinds

Common

Government

Handicaps

Now,

cessive Government

000,000,000 to

and, sec¬
ondly, that the purchasing power
of their invested dollars will not
be impaired.

legislation.
Millions

Each

securities

tremendous stake in this proposed
means

dollars

buys

needs.

vestment

Last

This

will not
periods

who

equitable in the light of other in¬

simi¬

bonds.

for

foreign

investment

own

He

by

investors

reserves.

securities

on

than

Government

legis¬

ment that the rate of interest
Eisenhower

Pres.

five years, and (2) remove a

lar

for

financial conditions. Yet, the Con¬

vestors, however, is the require¬
paid

is
to

borrow money

for

his

those

the

allowed

with

parity

and

and

accumulated

ments.

the

Treasury

re¬

we

borrow

basis."

banks

their

has

im¬

which

at

artificial

a

if the requested

institutions,

central

of

interest

on

4(4%,

to

to

longer

debt of almost $290,000,000,000
held by our citizens and finan¬

tion which the

on

and

enacted, those in the
Congress who. are unwilling to
pass it must assume full respon¬
sibility for the possibly serious

have

poses

from

free

so

lation is not

tificial limita¬

now

is

other borrowers.

is

ar¬

law

Administration

assume full responsibil¬
managing
the
Federal

strictions

cial

re¬

the

Let

allel

Government's debt if it is allowed

lic

that

islation

move

able

be

longer than five years.

This country's outstanding pub¬

leg¬

would

than

higher

should

the

First,

thhs keeps the
long-term borrowing

and

new

should

siderations

We

of

proposal

American is entitled to both.

unforeseeable time.

an

and

credit,

management

tion at

so.

things

absolutely clear:

re¬

questing

sound¬

consequences.

a

message

to man¬

as

should.

Second,

Congress of the United

States:

Congress

financial affairs

as we

Congress follows:

sage to

To

have not yet determined

executive" willing to

Congress to act in
order "to preserve our financial
integrity and to protect our cur¬
rency."
pleaded with

only conclude that we

can

age our

on

turing
also

abroad

Thursday, September 3, 1959

.

serious enacted.

a

means

long as the present prosperity
contributes to a strong demand
cost

Before

of

amount

pose^

a period of rapid economic
advancement, we want to keep the
cost of living steady.
And, if we
act wisely, we should be able to

however, that we cannot pay more
than 41/4% for long-term money.

stresses this is not an act to raise interest rates and that the Admin¬

*

debt

for

intent

our

keep our financial affairs clean and above suspicion.

excessive

an

.

threat that may generate both the
fear and the fact of future infla-

So

discriminatory unfairness to savings bonds' holders, and reper¬

omy,

of

up

short-term

.

the

by progressive

dollar.

To

help

that the value of the dollar

will be protected, the whole debt

Frederic Dewhurst Carter,
ner

in

passed
of

John
away

H.

Aug.

Lewis

24

part¬

&

at the

Co.,
age

62.

Murphey Favre Branch
CHELAN,
Wash. —Murphey
Favre, Inc. has opened a branch
office under the management of
Q

\\T

T

I ++1

c

Volume

190

Number 5878

.

.

The Commercial and Financial Chronicle

.

(941)
Soft

The Market...and You
BY

WALLACE

STREETE

the
in

results

New

pinches

situation and

money

favorable

more

able

in

the

result,

a

the

on

weight

the

yields

bond

the

far

avail¬

market

combined

on

tight

to

stock

as

put

market

this week.
*

.

*

*

new

that

ly offered

the

spread through the

mercial rate structure

com¬

rapidly

nomic

upset much of the Wall Street for

thinking

that

would loll in

dull

the
until

pattern

Labor

after

Day holiday is

now

that

seems

the

over.

the

It

mid-

August low around 646 in the
industrial average — sortie 32
points below the all-time peak
posted Aug. 3 — might be in
for a testing before there is
any important progress made
on

the

upside.

Steel

basis

Developments
Damper

a

for

sjc

enthusiasm

*

of

had

a

had

good

a

Industries
than 60

was

a

correction after

had

they
Litton

run.

soared

more

points above its year's

low of 72. Texas Instruments
had

raced

above

nearly 100 points
year's low of 61.

its

*

these

year's

*

twin

an

drags

of the strike have

operations

forced

into

the

red

score

An

ink

as
early as July when
their business slowed down as

make

rate

❖

It

will

❖

be

nearly

the

Ford

10%

more

proach

of

only

than for the

period last
company

same

Motor

a

peak

had

before the costs
become

One

steel

industry

fact
are

that

but

even the
dour reports

these

ahead

is

situation

a

calls for caution

that

the im¬

over

outfit that

nation's

of

some

is

also

is

not

r

The

took

a

th°

But

steel

result of the

had

a

nor¬

far

as

in

finished

burst

of

ried to

an

August,

-

with

strength, that
all-time peak,

a

it

a

ing

came

into

Other steels

the

were

first

That
in

vigorous

weeks
its

and

bearings,

rebound

*

and

was

a

historic

month

of

had

double

to

over

the

or

same

above

would be

mun¬

for dividend

peak to end

August,

was

clipped back and the easiness




a

15

lecturer

resumed

in the

a

fof

American

of Banking, Mr. White¬
partner of Nye & White¬
head, 44 Wall Street, New York 5,

head is
New

a

York,

and

40 cents

to

a

of'

Institute

investment

members

of

the

and American Stock

Mr.

than

Whitehead
30

years'

vestment

sec¬

stitute

1955.

time

views
do

expressed

not

necessarily

at

advisers

New

York

Exchanges.

has

had

experience

research

of

those

the

those

They are presented
of the author only.]

announced

pleted
Fifth

Logan
Street

of

This

and

more

in

in¬

advisory

charge of his firm's

the

Building,
and

for

plus

and

make

curities,

years

opening

joining

associatedStock

Ex¬

of

tax-exempt

other t3rpes of investment

cayne

have

of

an

announced

office

at

-

an

management

of

Richard

walske, Vice-President.

offer

The

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

buy

to

any

NEW ISSUES

of thesp securities.

September 1, 1959

Sea View Industries, Inc.
$420,000
■

'

•

'•

•

■'

■

■

,

.:.

v

7% Subordinated Convertible Debentures
Dated

September i, 1959

Due September 1, 1969

Price 100%
and interest accrued from

September 1, 1959

to

date of delivery

84,000 Shares
Common Stock

re¬

(Par Value $.10 per share)

Price $3.50
per

profits

vear.

1959

v

Share

for
The

run

to

reported
the

Copies of the Prospectus may be obtained from such of the undersigned
as may legally offer these securities in this state.

in

some

average

3¥2%.

Incorporated

sort

supplemental benefit. Even
the present rate,

Michael G. Kletz & Co.

$2 divi¬

the yield

Roman & Johnson

100

se¬

the
Bis-

Boulevard, South, under the

rush

the

half

dend candidate for

an

20

to

in

securities, and underwriters
distributors

vigorous rebound

and

is

ment

management of Girton .Viereck.
business

Pollock &

Co., Inc., dealers in U. S. Govern¬

and

securities

conducted

MIAMI, Fla.—Wm. E.

of

Union.

career

he

in Economics and Current

a

corner

Mr, Viereck began his

where

to

Exchange

a

the

$5 mark which

$2.10

at

of

successor

Stock

Wm. E. Pollock Opens
Branch in Miami

& Co.

opening

Finance,

York

Economic Developments
Affecting
Investments.

The 69th branch of Bache &
Co.,,
Seattle
office
is
under
the

is neither

announcement

the

reported

period last

the

of

courses

the

the

of

New

Institute,

any

with

coincide

SEATTLE, Wash.—Bache

bearing business

$1.16

a

this

New Bache & Co. Office

liberality in view

normal

once

with

first

the

in

"Chronicle."
as

the

with

buying

1958

also

Whitehead

work and is in

article

profited from

able

bound in its

projections

*

which

Ford,

the

also

pre-strike

over
*

reached

Timken
the

the

dane.

H.

the

the

production for

five

car¬

market.

more

a,

of

versity, and
Louis

quarter as

contract

continue

to

was

bit hard-hit when sell¬

also

one

g

the faculty of
Syracuse Uni¬

•

brighter facets. The
original quarterly rate

was

[The

candidate

a

the steelworkers that enabled

Steels had their share of sell¬

had

its recent

branch office in the
recently com¬

comnan'ee

was

ing
to
absorb,
notably
Youngstown Sheet where
various hopes of good news,
including a stock split, were
circulating. U. S. Steel, which

n

for

largest
where

gives Timken ap
selling when the
rough were, as edge up on the prime steel
the issues where en¬ makers when it comes to the
thusiasm had run wild earlier third quarter profit.
*
*
*
—the electronics particularly.
going
usual,

i

member

ond

strike ends,

brunt of the

meet

e v e n

strike, Timken

longer

business

the

22.

week

divi¬

a

has

-

that

items

fourth

ink for thnr third

strike.

The Former Favorites Sold

will

.

as

to be shaved

rate

is

Co. with a strong
position in the mattress

business. It is also

expected to slide into red

are

th^

mediate future.

Sept.

course

sessions.

trade

of

a

fully apparent in the

day,
The

;

earnings payout this
year—the 60-cent

dividend

be-^

ginning Tues¬

in mid-1958. But the indicated

1956. The return

dollar

the

60-cent

It gives the
chance
to
ap¬

the

the

of

year.

achieved in
on

sales

on

In¬

vestments

a
quarter the shares were sold
publicly
in the face of for the first time in
1956, its
unsatisfactory price condi¬ dividend record was not one

and

the

in

course

popularity is concerned. Since

nearly

tions

will

conduct

total

Simmons

shortages.

Exceptional Steel Issue

the

month
of the strik,e

Whitehead

above last year

retreats

manufacturer.

*

H.

above-average 4 Yi %.

any

of the economy.

Louis

approaches

better long ago as World War I the faltered,
the
third
Prior
quarter ago in Seattle.
reading. And shortages of the company set up its own steel rate was shaved to 50 cents Bache & Co., he was
with
two
New York
metal are starting to crop up mills.
In
special grades of
against the 70 cents paid pre¬ change firms.
to curtail activities in other steels it
currently is rated as
areas

that

7ormerly

re¬

upturn.. The company
mally considered in the steel
the steel mills closed. Their
Js in 1957.
category
is Timken Roller paid $3 in di
August reports aren't ex¬ Bearing. For its own needs as Last year when ousiness
to

Davison, Director of
the
Hunter
College
School
of
General Studies,
has announced

of

overcome

column

pected

present

Hunter

at

Dr. Edward

of
around
a
quarter — would only Investment
Counseling Depart¬
average
but the issue has come to $2.20 with first half
ment.
He
is a
points from the peaks been a
graduate of the
quiet one with a range profits
were
still moderate by the
already standing Wharton School of Finance &
this
year
that hasn't yet above $5 and indications that Commerce at the University of
yardsticks of the financial reached five
full points. So
Pennsylvania.
Since
1942, * Mr.
total 1959
earnings will run Whitehead has been a member of
community.
there has been little specula¬
•Jfi
:<c
well above the $8.19
reported the faculty of the New York In¬
tive
Their

been the rails, some of which
were

Course

since.

on

interest in the shares that
Apart from the money mar¬
The^relative stability of the
could be stimulated
ket, the business scene wasn't steels
by the
generally when their
prospect of record or nearoverly conducive to unbridled closed mills are so
large a record
enthusiasm
with
the
steel
earnings, and perhaps
matter of concern elsewhere
dividend improvement.
strike still dragging along and
is based largely on the think¬
❖
*
*
starting to interfere with the
ing that operations will soar
various
indices
of
Another outfit enjoying a
general to or close to
capacity once
business. So far the immedi¬
good rebound in operations is
they resume and struggle to
ate victims

maintained

moved, earnings for the first dend
item,
half of this year were able to
rebound

*

For the electronics it
case

With

eco¬

generally.

the
*

last

concrete

any

motors

market

irregular and

an

been

made

last year.

models will be received hard¬

of

has

interest

-

hikes in prime interest rates

timing

been

1

Whitehead Conducts

paperboard firms that Against this indicated payout
big inroads into of $2.40 this year, and operat¬
lines once dependent on wood ing earnings
expected to jump
spread rather easily to the
boxes and crates. Container to
around $5 with
others in the Big Three. It
perhaps
another- dollar
added
from
was
all psychological in' the Corp. like the others showed
a
good rebound from the drag non-recurring profit, it is felt
autos since most ox the
plants
of the recession, but in addi¬ that
the
present
rate
will
are
only now starting to build
tion had some
heavy start-up have to be revised upward. In
up output of the 1960 models.
costs that held down profits any case, the yield on even
The shutdowns
for
the

changeover and utter lack of
any indications how the new

The

has

•

the

have

•

Goods

Demand
viously. But by the fourth
Apart from the heavy goods quarter the directors recon¬
activities, soft goods demand sidered and nudged the quar¬
has held up well and one of terly rate to 60
cents, which

1?

Stanley Heller & Co.

M.

Ko-

The Commercial and Financial Chronicle

.

Thursday, September 3, 1959

.

with their fingers. Factory pre- equipment who already has the
ticketing hampers both the mer- facilities to handle the job or
chant and the customer in the en- entering into a joint venture with
joyment of their traditional right him.
For a small electric power tool
to bargain.
manufacturer, we may find that
(4) Competition Within ECM
a
wholly-owned branch plant is
It is necessary to know the size,
location, capacity, marketing
r solution. The electric motor,
the
die-cast
housing, the gears
methods and trade territory of
jj0iennai competitors. The past is and some other components can,
lnQ trustworthy guide to the fu- mitially at least, be subcontracted
to local suppliers leaving a rela¬
ture.
tively simple assembly operation
We have made reference to the
requiring little investment.
He
relative dearth of economic and can buy or build his own plant

sufficiently by such expedients-, he
will

European Common Market
Threat or Opportunity?

from

ery

War

II.

the

has been to date.

of

analysis

the fol.u.
ECM's foreign trade list in

ol

tOD

trucks

.

Ships and boats
Clothing—except fur
Metal-working machinery

much

that these categories of products

in varying degrees vulnerable
to ECM competition both within
and without the Common Market.
An American manufacturer whose
products fall into any of the above

are

to

manufactured
articles.
countries have only a few

foodstuffs

to

raw

materials

spare

for world trade, being heavy

or

specializjng fn heavy, custom-made steel
castings such as are used for the
base of a large machine tool, the
For

example,

importers of these items.
Our
exports, on the other hand, are
heavily weighted with agricultu¬
ral products of which we have a

frame

surplus. This spells sharper com¬
petition for us in world markets
other
than
ECM,
competition
which will be felt mostly in the
manufacturing
segment
of our

a

company

shipment

economy.

let us

Finally,
inroads

in

our

own

country.

We
The
is a

automobile
star performer and the most publicized
one. " Another
example
small

European

A A. A AW

which should

be more jarring to

of

the

should

Ixcef.

a

by law
same

whole imposes on

both cheaper and more effi¬

And, just recently, Euro¬

pean-built American farm tractors
have been landed in this country.

Tariffs

remains to be done.

low

product
not

and

the

value-per-pound

almost

certainly

the high cost of

stand

to Europe and still be
competitively priced.
ECM has
ample
facilities
for
producing
such

castings locally. By the same
token, ECM castings firm would
not likely be much of a competi-

are

still in

state of

a

,

.j

.

.

ket

.

..

1 he determination

,

,

fory

of

the

machine

tool

in

ECM,

several thousand manhours of la-

bor at European rates have been
added.
American labor rates for
auucu,

lean

lOWVl

this type of work range

ACAVWU

A.WA

from two

absorption to foreign destination,
The completed
machine tool is
now

dangerously competitive. So,

the American machine tool
facturer
overcome

must

look

his cost,

for

manu-

ways

to

handicap.

States

on

bciSt'?vl-

cussed

that

to

wh\tte tLTcanredresVhis™

5sas»«a.tasss
vulnerable. An analysis of United

information

It

company.

products

is

yet

history

and

host

a

already

to

be

mention.

touched

is

for

i0int

venture

eanuse

th

diffi—
infor-

margket

a

comnounded

have

We

the

reliable

upon

cultytof gathering
mation

marketed,

and reputation
other factors too

of

to

numerous

in

study.

This

ra£p

the

nf

a

aeoui<?itinn

or

elementary caution dictates
th

t

probing be ver
much
i_
y
Almost s certainly, more
one-'European prospect will

-

deeper.
than
have

be

to

looked

fine-toothed
is

with

over

comb.

All

a

all,

it

in

massive job.
final
alternative

a

Our

establishment

,

.

of

trends.
In

making this determination

a

large element of judgment enters
the

into

make

equation.
assumptions

We
ao

as

need
linn:

po-

is

branch

a

the

plant

unification will really
governing criteria will be
political as economic.

will

satisfy

ments.

Just

States,

labor

and

costs

Local
toms

n„

„„„„

„•

market require¬
in
the
United

as

availability,
be

must

laws, regulations and cus¬
governing the type of opera¬

need

Basic

Five

Ways to

Operate

this

does
a

But
There
an

are

five

basic

American
in
in

a
a

in

ways

seller

foreign
foreign

land
land.

He

He

ments and the governing aulhori-

Licensor

He

li-

can

Sites

most

respects,
differ
materially
plant location search.

not

U. S.

there

rather

scrutiny.

In

is

difference

a

crucial

A

one.

m

do

can

avail

may

careful

out.

from

himself of any cornIn this instance, too, we must
bination, or even all five, in diflook at existing practices and pol- ferent
parts of the world.
icies governing prices,
discounts(]\ The Straight Exporter—He
credit,
of sale,
delivery, ean E'e]1
terms
products made at home to
guarantee and serz ice as
being
foreign
buyers,
either
through
subject to drastic changes. For one foreign-based sales offices or
thing, the Treaty of Rome outlaws through foreign distributors and
the much favored cartel agree- agents.

and

eric

a

a n

yardstickS <*0 not always apply,
dollar-and-cents factors
be

can

assembled

and

compared,

the final choice will be influenced

either by tangible factors that do
not exist in the U. S. or
intangible

factors

with

which

have

we

no

experience.
One
In

one

example,

Small Clause

country in
there

is

Europe, for

buried

among

foreign manu- the complex laws which govern
fearers- to make and sell his labor-management r el a ti o n s a

cense one or more

affect
channels of trade,
rmLina and packaging poli¬
warehousing and narkaaLa noli! Product(s) in the foreign market,
(3) The Joint-Venture—He can
cies and have a profound bearing
acquire a partial or controlling
on sales and distribution costs.
interest in a foreign manufacturer
There AO, All JUV^AU, nowhere near
is, in ECM, A J V/ VV llvi
uvai
the standardization of basic marhome product in the forW

1

_

A-

_

J

1

J

wholly-owned plant in a foreign
country, either as a branch or-a
separately incorporated subsidi-

arymetic firm and installed American
(5) Outright Purchase—He
management to run it.
One old purchase a foreign

can

concer" lock"

stock and barrel
in

order

to

decide

on

a

cold

alternatfve

whteh

$

d^the'iZrns°tirif'of th?m

at'dUte

^e, case of^
^ very

severance

In the U. S. this matter is
subject to management discretion
pay.

collective

or

fect

of

bargaining.

The ef¬

the

vague, almost hidden
clause is to make it most difficult
to

separate

employee without
amounts to a
This
results

an

paying him what
life-long
pension.
from

current

"administrative

in¬

terpretation" rather than the

ex¬

act

wording of the status. A

com¬

with fluctuating, volume and
employment could be severelypenalized.

pany

Another
rise

dollar^-and-cents
nf
five
wave
serving the market is most suit

these

small clause relating to

to

a

which

area

kind

of

give

can

trouble

not

us¬

ually encountered in the U. S. is

religious

custom.

In

many

areas

of the

ECM, local Saints Days and
religious festivals are observed in
to

national

Manning continuous

The

skills

determined.

building costs must then be

which

all. Illustrative of this is the experience of an American pharmaceutical house some years ago. This
company acquired a French cos-

ties

checked

hnoinpcc
business

a IIVJ. U

sought.
probable

is

and

much

^ hOven%ompetition within^CM

be

it

area,

tion then arises how to capitalize
on these findings.

for

Marketing & Sales Methods—

(3)

should

the

tion

The

go.
as

to

Within

that several alternative communi¬

ing both vulnerability and favorable market prospects, the ques-

far

how

to

location

,.

firm's

addition

determine

the

financial

a
•

American

an

demand, hy end use, by counand major market area must

the

tigate the feasibility of improving




has

tential vulnerability to ECM competition and we have outlined the
take into account the impact of essential steps that must be unthe unification of the market. This dertaken to determine the extent
virtually makes useless any linear ancj potential of the market for
projection of pre-Common Market an ECM-based operation. Assum-

try

American busiaxiom That any product ean

Acting

the performance of his machine
to justify in some degree its higher
cost. If one or both are possible
without
excessive
development,

to

it

Up to this point, we have dis-

mar-

& wluundo^y = M? ^v^«

is

but

In

Tins being so, the first

competition

executive

9m i

■

thing for an American manufacturer to do after pondering this
over-all
picture
of
increasing

contrary.

and
the
be-

and

evidence in the his-

United

as

accurate

many

,

of total

.threal1_n tbeSu
finished

Where It Hits Us
no

and™n<" «

wide sweep of financial
information which, in

sales

tan

£nd

Market Demand—

(2)
'

established line of products was
ness
making a poor showing. To boost
In sum, ECM means more com¬ be improved and that some costs volume, tne company had recourse
petition for the U. S. made prod¬ can always be reduced by im- to a one month "special" sale at
uct everywhere.
proved manufacturing techniques, half price. The French housewife,

There is

other

divulg'e the

to

custom

or

process

the equipment in¬
plant
came from Europe because, in the
words of a company official, it

stalled in this new American

cient!

close-

corpora-

«mes higher." There is a keting and sales methods. Prac- .
this
» £°r leSSer e£fl" tices common in the United States ei®n market
Eighty! facturing the Eur°Pean freight may have in the introducednot at case> he can buy Plant
6 C'eS
most (4) The Branch or build a
and for manu- cautiously to be ECM—or

five per cent of

was

locomotive

a

The

would

ern' paper mm-an area'Vtechl
nolofv andragineerinl^wherewe 9
certainly

of

like.

look at ECM's

belabor this point.

not

need

moT

to

quotas

•v

of

These

as

,

special problems in Europe by the American manufacturer.
Wireless apparatus
flux and many
departures from which are alien to American ex- The pattern of potential sales re¬
This partial list shows that a
the pattern set by tne Treaty of perience. And it is precisely these
vealed by the -market study will
broad spectrum of manufacturing
Rome may still be made.,
that can prove most troublesome point to the general area in which
activities is involved. It follows
and

categories would do well to study
increase of
both the implied threat and the
It will be noted that total U. S. implied opportunity. The vulnerexports in 1956 were almost $2 ability of any single company debillion less than
those of ECM pends to a very large degree on
countries.
This is more signifi- the nature of the product it sells.
cant than at first appears.
The
may
that an individual
great bulk of ECM exports con- company is not affected at all.
sists

even

ing in the public domain. The veil
of secrecy has given rise to the
half-joking assertion that in some
countries a company,rRWSt, keep
is
not so easy to come by 'over- three sets of, books if it wants to
seas.
The
United
Nations
and stay m business: one for the Tax
ECM
authorities
are, making
a
Collector, one for the stockholdvaliant attempt to assemble and
ers and one to tell the managepublish complete and comparable ment what is really happening,
economic data but, though much
The market study has all the
progress has been made to date, problems familiar to any Ameri-

$18.9 billion, an
little more than 50%.

billion

$12.5

with-

any,

•

J

'JleceHaiT -t0
ab°Ut itS
rotoufaiftffiiig facilities, its patrnarS investment inorgan'- d^tribution,
ization,
its
new

immediately become apthe American mvestigator that statistical information
that he takes for granted at home

Rubber tires and tubes

world

be

Publicly helcl

ancj

concernjng

It will

parent

-Passenger cars, busses and

increasing suc¬
cess.
ECM exports to the world
4_._
_
have jumped from about $6.4 bil—
lion in 1948 to over $20 billion in
1956, a better than three-fold increase.
Over the same time span,
U. S. world exports climbed from

win

imports from non-ECM countries. United States, is regarded

pliances

markets and with

thew

~' *****

(All Countries):
Power generating machinery
Electrical machinery and ap¬

has been ag¬

sougS^bv^ po^ST^m^tor
mouthed.

plete

If

European giants.

f0?16

schedules, if

,

_

their affairs. This applies even to

in-

in ECM and the trade restrictions

ECM Exports

the average,

other

adequate

here concerned with the

are

which ECM

Miscellaneous machinery

to

courting

An

m1

To license a foreign manufacturer, enter into a joint venture
him or buy him out requires
that the American firm have com-

pattern of trade in ECM countries, tions in ECM countries hw*

Metal-working machinery

ually
establish common tariffs
and quotas that will be protective

gressively

do.

•

j

information in some or he can buy an existing facility
European countries. This is even outright,
including
trademark,
*ncKe disconcerting in the area of goodwill and distribution.

Market—
We

ances

ECM, while liberalizing trade and
integrating its constituent econ¬
omies within the block, will grad¬

European industry

to

and quota

ECM Imports (All Countries).
Electrical machinery and appli-

competition.

,

statistical

Characteristics of the EMC

specific

more

shows

Z

outsiders
than those now prevailing.
This
will aggravate the handicaps un¬
der which our exports to Europe
now compete.
Nor, unfortunately,
is this the whole story.

work

of

(1)

An

is'general agreement that

that

concern

rwwu/

an

vestigation will cover:

subclassifications,

i—_•

burdensome

exports

Rubber

signatory countries and that
...jn
American business will inevitably

nature,, and -oil*

A

u

occasional trade information.
Many entershipment
from
the
U.
S.
but Pnsas in ECM are closely held or
wisnes to -go into ECM business family-owned
companies tradimore aggressively will have a lot
tionally reticent about disclosing
merely

Cotton fabrics

its

more

an

have

zt-cv/toou/

n

that already has some

operation in ECM will
an idea
of what
market and the competition
of

naturally

Total ECM Exports:

been a significant

„

...

.

of Action

Course

concern

sort

Paper and paperboard

and
growing factor even before any
of
the beneficial results of the
Treaty have had time to exert
their influence.
We cannot avoid
the conclusion that further imple-

There

.

.

,

A

and thread

is the increasing volume Manufactured goods of—
of its world trade, including that
iron and steel
Copper
with the United States.
Thus it
Textile yarn and thread
is evident that the ECM's trade
Miscellaneous fabrics
with the U. S. and the rest of the

have to face stronger

-

.

,

:o

'

best be served from an

A

recovery

has

^

xi/

but also of those markets that can

Copper
Textile yarn

period, this recovery had
progressed to a remarkable de¬
gree. One indicator of European
10-year

world

,

steel

and

Iron

what

Pot °?*y °* the intra-ECM market
ECM base.
'

Manufactured goods of—

ravages of World
Towards the end of the

the

of

course

he must first
the present and

be,

|"tu,re(£°'fn"a' o£ th? markf 's
likely to be. This involves a study

Products are principally involved.
Total ECM Imports:
s

beginning

the

should

determine

period shows that the following
broad categories of manufactured

ECM countries
billion a year,
of the decade,
the European economy was still
in the initial stages of its recov¬
imports from

our

another

to

this

what

decide

To

took

to

of action.

action

^linunnc

averaged close to $1

At

have

course

States-ECM trade over a six-year

Continued from first page

in

.

(942)

18

those

days

be

can

holidays.

processes

most

on

trouble¬

since there is, in the minds
of the workers, no such
thing as

some

"equivalent" time off

some

other

heavy day. It is well to keep in mind
equipment such as large rolling that in
mills, the
investment
in Europe, the
Another Pxamnlp
•?' th<: enorm°us investment
tance of mSy European custom" Z°n f !?..Setting up „ma>™fac- l°eal clergy can have considerably
ers to buy such things
swlatm-s
vf ,f.aeilltlesJmay well rule out mare influence in labor relations

had to re-name and
Package the whole line
company

re-

•

enormous

j

it:

some

—

-c--

1—i

areas
i

*

*

'

'

as

aw.—-' — - «■

„p

S,„d V,?'5 S.iSS 8r£SaA»tf.Mr, A.V

JSTS^SSS

Volume

Number 5878

190

.

.

.

The Commercial and Financial Chronicle

(943)

in

character

than they are here,
actually constituting politi¬
cal parties. This presents the in¬
herent danger that an employer
may find himself struck or other¬
wise hampered as the result of the
union's
political
action
without
being in any way involved in the

familiarity with contempt. If
just remember to temper our

issue

tural

some

in

or

position

a

resolve

to

it.

sally

liked

in

their

Sanctity

of

in

contract

ECM countries

national

costly
tion

contract

a

the

of

case

across

both

be

can

difficult.

and

is

of

boundaries

illustra¬

An

shipbuilder

a

who needed several thousand tons
of

heavy plate to build

he

had

the

under

of

rounds

mills

in

bids

number

a

received

he

made

steel

of

countries.

several

failed

social

of

have

.

.

Some

to

<mee

his delivery

decorum,

breach

the

of

steel

of "Acts

plate

of

contract

.

.

just

a

friendly warning not 'to 'try/to
play one supplier off against an¬
other.

The

here

lesson

suppliers.

your

A

number

United

irk

the

cannot

be

risks

covered at all in some ECM courk.

tries

insurable

are

or

only

through state agencies. Such are,
for example, workman's compen¬
sation, health and medical insur¬
ance
and
performance
bonds.
Some
blanket
policies with
American firms take out, e.g., fi¬
delity

bonds,

may

cable to European
These

cative

examples
the

of

unusual
American

detection

not be appli¬
personnel.
only indi¬

are

of special

range

in ECM. Their

resolution

and

or

confronting

problems

concerns

are

Angeies Bonds

Association

A Bank of America N.T.

& S.A.

with

conditions

local

The

sumed.

be

can

as¬

going
watch out.

company

alone must really

department bonds. The bank

to

bonds

the

it

painted in a recen¬

tly published book about Ameri¬
cans stationed abroad may not be
a

representation of the aver¬
American's behavior. True or

true

age

false,

have

we

nevertheless been

roundly criticized by our own and
other nationals for a lack of sen¬

feelings of other
unwitting indif¬

sitivity for the
peoples

and

ference

to

an

local

which they

mores

of

syn¬

3.88%.

reOffered to

were

The

investors

dollar,

a

the 4% bonds, ac¬

par on

1,

1960-

1979.
Proceeds

of

the

bond

be used for various

provement

sale

of

America N.T. & S.A.
and
the
underwriting syndicates it man¬

ages have bought
million

of

Bands

The

months.

than $637

more

California

Municipal

in

bank

State

the

and

and

12

past

its

under¬

writing accounts, through a policy
of bidding on virtually all Cali¬
fornia
Municipal
Bond
issues,
provide

assured

an

for civic

source

of funds

improvements and public
required by the State's

projects

expanding economy.

•

and

customs

take seriously.

has

been

165

in

with

offices

securities

a

at

business.

Harold A. Swarthout,

are

sales

buying

or

tablished

in

language-in

Holland.

would

Hollander

German

or

alent

for

and

as

a

use.

consider

versational knowledge

not

is

It

widespread

a

a

A

con¬

French

of

the

American

it..
is

wicz

with Reynolds & Co.

was

decorum.

matter

Americans

of

are




social

univer¬

Company,
it

Horace

by

Y.,

C.

was

an¬

Flanigan,

Chairman of the Bank's Board of
Directors.
%

Irving
York,

sH

N.

Y.,

Company,

of

H.

New

the

announces

ap¬

Mr. Lawder

Lawder,
Officer
in

joined the Irving in

and has been associated with

the National Division for the past
15
years.
Most recently he was

charge of the Western District.
The

National

Division, through
geographical districts,
provides modern banking service
its

seven

❖

*

Federation

Company,

New

N.

by
J. Shanahan, President.
sis

*

Ira

York,

in

Bank,

Thomas

31,

with

announced

Chairman
election

the
as

Vice-President

of

New
of

Vice-Presi¬

a

dent of the Bank. Mr. Ruehle

was

of the Brooklyn

Company

and

Company.

the

of

He

the

is

Kings

also

as

I.,

L.

the

of

J.

Russell

Mr.

Meier

with

the

has

Bank,
for

Bank's

at

New

at

York

and

1180

opening of an of¬
Raymond Boulevard,

Russell

and

Reginald

E.

Now

Cain

H.

as

manager

Worthington,

its

91st

year

of opera¬

tains its headquarters at 25 Broad

Street,

located

New

York,
and
other
branches in Albany, Glens Falls
and
Schenectady, N. Y.; Boston
and
Worcester, Mass.;
Chicago,
111.; and Nashville, Tenn.

a

opened
the

at

S.

The

Opens Investment Office

City,

LOS
J.

ANGELES,
Benom

7967

is

Calif.—Jeanconducting

a

Boulevard.

is

Exchange

title

Church

St.

offices

321

at
,

24,

1944

(when

.

held

until
*

Edward
the

of

died
old

Aug.
and

The

24.

had

First

of

of

He

been

The

74

was

gional

111.,

New

with

Brown

General

for
became

1923,

in

from

he
and

to

Board

From

1934

President

had

been

since

of

to

Chairman

Continental

Bank

and

will

of

in

zation's

Illinois

Trust

Na¬

Company

Aug. 31 was named
charge of that organi¬

international

banking

department.
Mr.

Roberts,

£he

Anderson

has

retired.

joined the Bank in

Starting with the Bank's Com¬
Department
Assistant

shortly

he

Cashier

thereafter

ing department. He
to

was

in

1949,
as¬

was

was

promoted

Second Vice-President in

and

office at

motion

to

Vice-President

in

1952,

director for

the

Channing

McNamara, Simmons

HUNTINGTON, W. Va.—McNa¬
mara and
Simmons, Inc. has been
with

offices

in

the

President

J.,

Bank

ing to engage in
Officers

ness.

Simmons,

a

securities busi¬

are

Howard

President;

Aug.

on

B.

Simmons,

Secretary;

of

the

member

'<

an

the

of

'

■

2 Sets of

Bank.

formerly

was

'

'

offi¬

Commercial and Financial Chronicle's
FOR SALE

group

had
for

been
14

with

Chase

Manhattan

From 1895 to 1939 Inclusive

years.
*

Lawrence

sh

Keyser,

Assistant

Approximately 130 Volumes in All

sylvania Banking and Trust Com¬
pany,

Sept.

.-

Philadelphia,
1, after 25

with the Bank.

retired,
of service

.

business
with

Pa.,

years

started

career

the

private

.

1934,

he

vania and
the

joined
was

customer

ment.

He

was

in

banking
Co.

Pennsyl¬
Manager of

securities

elected

depart¬
Assistant

Set

1908-1928

Inclusive

WHICH SET INTERESTS YOU?
Write

In

First

named

Another

Edwin L.

or

Phone

—

and

McNamara, Treasurer.

OFFER

31

H.

McNamara, Vice-President; Louis

of

appointment
of
as an Assistant

R.

Corinne

EXTRAORDINARY

of

First

Huntington National Bank Build¬

John O.

1957.

44

Corp.

formed

1946.

and

his

firm's

Street,
New
York
City.
Mr. Carter, formerly Associated
Press editor, has been sales pro¬

Arthur

succeeds

who

Mu¬

Wall

Form

Anderson

W.

of

make

headquarters
Wm. D. Carter

of Chicago, III.,

officer

Com¬

tual funds. He

*

Roger E. Anderson, Vice-Presi¬
of

the

group

1945.
*

Se¬

Com¬

monwealth

the

of

North

pany, sponsors

until
Vice-President

1934.

was

York

curities

capacity

was

1923

1945

Bank

the

this

and

and

American

Attorney

Counsel of The First

National Bank of Chicago in 1910,

serving

re¬
c e-

representative

since 1910.

cago

a

regional

area

Chi¬

of

a

V i

President

years

associated
Bank

pointed

First

Chicago,

National

.

William D. Carter has been
ap¬

Chair¬

Brown,

Board

Bank

as
.

Canadian' b&h'k-

Of North Amer. Sees.

*

E.

in

common

William Carler V.-P.

his retirement.

*

of

ing circles.

President and officer in charge of
the Portsmouth Bank, which posi¬
he

Director

a

the Bank since 1952.

Bank); Vice-President
and
Cashier
(Portsmouth)
on
June
8, 1945. A year later, on
July 12, 1946, he was named Vice-

tion

been

corner

firm of Brown Brothers &

Alaska—Roy A.
conducting a securi¬
from

Toronto,

He
will, in effect, serve
Vice-President of the Board

Nov.

on

has

handling the Bank's business in
Jersey and New York.
He

1915

Roy A. Larson Opens

business

Scotia,

the Bank acquired the Commercial

Bell

New

His

ties

Nova

Vice-President of the First Penn¬

business from offices at

Sunset

of

Canada, by the Board of Directors.

31,

of The Chase Manhattan Bank
a

Bank

was

#

N.
the

Stock

Mr. Stock

and

*

Streets, within

SH

Vice-President

J.

(Special to The Financial Chronicle)

ette

Aug.

National

announced

E.

Newark,

on

Nickerson,

First

Jersey

He

*

Ralph P. Bell, O.B.E., has been
elected a Vice-President of The

Vice-President

signed to the international bank¬

southwest

si:

cer

Cashier.

Cur¬

will

the Four Corners.

block of

K.

stock

*

Assistant

the

be issued
shortly after
receipt of such approval.

Bank

as

Comptroller of

Mr.

the

and

years

Company,

'*

securities

25

*

of Broad and Bank

George

manager.

in

was

has

the

with

time

one

over

*

Trust

N.

Exchanges,

Stock

announced

fice

the

of

associated

been

building of the Fidelity

new

J.,

and

the

Final approval will be re¬
quested following favorable action
by the shareholders and the new

Virginia on
has continued

Board

Mr.

of
the
24-office
Riverhead branch.
ager

stock

common

March 5, 1937; Assistant VicePresident
and
Cashier
(Ports¬

Vice-President and Man¬

as

in

retired

on

tional

Aug. 25 announced

on

of

a

:J:

appointment

Meier

He

of

but

Assistant

an

elected

Highway

Maass, President of

ton,

Union

— The
invest¬
Spencer Trask & Co.,

Bank.

Bank

1957

the

dent
si:

H.

record

outstanding to 75,000.

Consultant.

Bankers

Security National Bank, Hunting¬

The

NEWARK, N. J.

that

*

*

ment firm of

Vice-President

was

The

Dec.

and

Brooklyn,

Alfred G. Ruehle

a

from

Mr.

*

Hirschmann,

Gotham

Y.,
Hill¬

Aug. 31, according

on

announcement

of

Tentative approval of the
capi¬
tal stock increase has been
given

by

man

office

four

every

rency.

Trust

Street and

number

formerly
charge of

National

York,

newest

169th

side Avenue
an

the

President, announced.
Wooldridge is Chairman of

Mr.
and

additional

one

for

stockholders

Sept.

shares

the Bank's Portsmouth Board and

*

Bank

its

Jamaica at
to

been

General

Va., effec¬
Herbert C. Moseley,

1,

stock

by

9, and an additional
15,000 shares with a par value of
$100.00 will be issued, bringing

Portsmouth,

Sept

nation.

the

opened

Virginia,
tive

Bank's

mouth)

Miller

Vice-President,
as
Charge of its National Division.

in

has

Such

the

$7,500,000,

of

of

as

Wooldridge
joined
The
Bank of Virginia on May 1, 1933

#

Trust

pointment

1923

Wooldridge,

member of the

a

25%.

the basis of

on

held

♦

Mr.

had been Assistant Vice-President.

Spencer Trask Branch
Opened in Newark

point which needs at¬ Larson
the

ap¬

*

Board of Directors of The Bank of

mercial

FAIRBANKS,

Another
tention

nounced

Trust

N.

elected

elected

reasonable equiv¬

respect

York,

B.

Company,

Miss Kluce¬

tion, Spencer Trask & Co. main¬

trip—should at least make an at¬
tempt
to
speak one European
language.
Few
would, for ex¬
ample,
want
to
learn
Dutch
unless they were permanently es¬

*

Long Island State Bank and Trust

Co., Inc.

only two points that need be re¬
membered and taken to heart. An
American businessman active on a

occasional

Manufacturers
New

been

pro¬

share

Mr.

Street Office of

was

sued

—

member of the Advisory

a

and

1955.

H. Hatch &

assistant

the

*

has

Board of the 27th

Herman

inevitably have indirect repercus¬
sions on the business. There are

basis in a European
as distinguished from

*

Galler

1947

and

Chicago,

of

approval
capital
making
a
total capital and surplus of
$17,500,000. The dividend will be is¬
to

in

President; Mahlon S. Kemmerer;
and
Edith
J.
Klucewicz, Secre¬
tary-Treasury. Mr. Swarthout was
formerly an officer of Frederic

American

—

pointed

in

of

increase

moted to Assistant Vice-President

Bank

Savings Bank.

Broadway, New York City, to

members

this article to touch
the subject. Just as in
this country, the businessman in
Europe must inevitably have a
social life in which his family will
be involved. Their social acts will

country

Morris

Trustee

Kremmerer, Inc.

formed

Vice-

foreign banking units of
Operating Division. He has

s|s

lightly

on

Assistant

an

the

Kemmerer Opens
Swarthout and

Treasurer

O.

been with the Bank since 1929.

Trust

It is fitting in

permanent

Formerly

Trust

Swarthout and

York,

1 at the regular meet¬

will

Bank

New

President, Mr. Sauter is assigned

municipal im¬

purposes.

of

ing of the Board of Directors.

across

Officers

Behavior Abroad

American

city

yield from 2.75% out to

price of

engage

The picture

Sept.

Eu¬

a

partner will simplify mat¬
greatly since his familiarity

ters

Bank

appointed Vice-Presi¬

*

underwriting syndicate, which in¬
cluded First National City Bank
of New York; Blyth &
Co., Inc.;
The
First
Boston
Corp.; Smith,
Barney & Co.; Security-First Na¬

ropean

with

dent

the

most

important to a U. S. company
planning a substantial investment
overseas.

City
was

Y.,

to

Los

to

CAPITALIZATIONS

stock

Frank Sauter of The First Na¬

President,
Bank

111.,
Aug. 28 announced the calling of a
special shareholders' meeting on
Sept. 9, 1959, to approve a stock

REVISED

will

_

cording to maturity Oct.

\-

either

States

Know

commercially in¬

of

business

surable

is:

OFFICERS, ETC.

Straus,

National

Company

dividend

tional

Bank of America Group
Offers $12.5 Million

cost

Trust

Banks and Bankers

was

.

BRANCHES

NEW

will

we

trouble.

no

fi¬ dicate bid a premium of $11,209
nally delivered weeks late. This for a combination of 4%%, 3%%
was ■ not
considered
a
serious and 4% bonds, or a net interest
and

NEW

E.

American

we

requirements. Others
out of line in price. Since tional Bank and California Bank,
he was bound by his own tanker Los Angeles, and American Trust
contract to a
specified delivery Co., San Francisco, on Sept. 1
the
date, he returned to those mills purchased
$12,500,000 bond
offering an acceptable delivery issue of the City of Los Angeles,
schedule and submitted his order Los Angeles County.
The issue consisted of $7,000,000
ht the lowest bid price. Several
refused it but one accepted. There police department bonds, 1,500,000
ensued in the vendor's mill an in¬ library bonds and $4,000,000 fire
God"

CONSOLIDATIONS

na¬

were way

terminable succession

Robert

News About

.

Trans¬

N.

tanker

a

He

contract.

country.

more

elastic than in the U. S. and legal
enforcement

own

some

somewhat

is

friendly,
ways

informality with due regard
the
European's- ingrained

for

Supplier and Your Contract

their

planted, however, such ways are
apt to grate on the European who
will
quickly
equate
excessive

sense

Your

for

easygoing and informal

19

REctor 2-9570

^

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

The Commercial and Financial Chronicle

economic

any

communist lands

Continued from first page

the better reason—and to find

the presence of other heads of states.

ing his campaign by

equivalent of it, appears to be with

The cold war, or some

long time to come—that is, if we define the term
all sorts of maneuvers and intrigue by the
Soviet chief (or some other Soviet boss) to take what we
us

to

for

a

include

him to have.

do not wish

This

contest

is

as

a

Adam Smith. A
struggle for men's minds is going on in this country, and
has been for a good while past—and the men with alien
.philosophies have been largely successful in that battle.
It would, however, be a grave error to suppose that
this is the only element or even, perhaps, the chief ele¬
ment in the world struggle that is now under way. It may
be that Mr. Khrushchev is as much under the spell of
Maxism-Leninism as is alleged. He may be as convinced
as
he says he is that socialism or communism will rule
the world within a few decades. What we are perfectly
certain of is that the Soviet dictator is a pragmatist who
aspires to be the actual ruler of the earth. In this, of
nothing of such liberal leaders

say

he

,

,

is

as

but

continuing and developing the im¬
perialism of the Czarist regimes. He has already effected
drastic changes in the Marxist-Leninist dogma in order

course,

to

make

it do the work he has

doubtless

is

determined

other countries

many

to

in

have

can

as

be

hand for
state

it

capitalism

arranged in

as

He

do.

to

in

short

as
a

; time as can be—with Mr. Khrushchev the real ruler of the
.states

so

much

as

.Russian

organized. The point is, though, that he is at least
interested in getting other peoples under the
thumb

he is in their

as

philosophies of life and

economics.
Natural

Advantages

And in this

campaign he has certain natural advan¬
tages, or at least certain advantages which he had nothing
to do with
creating. We should be more than foolish not
to understand and face this fact.

where

Many

areas

of the earth

a

great many people live are now governed by
governments whose tenure and whose general charac¬
teristics fail
of

these

Some

by far to meet

governments

of

them

live

are

on

our

ideals. Far Too many
inefficient and corrupt.

own

both

the

people they rule. Poverty is
widespread and extreme. Discontent, long
smouldering,
has now blazed
up in more than one instance. This, of
course,

is

intriguers

a

situation made to order for the professional
and around the Kremlin. Their

in

carefully

trained agents are sent in to foment trouble
and to start
revolts, with or without substantial direct

Moscow. It is
unnecessary to cite

help

cases.

from

There have been

too many

tion
a

and they are too well known.
This often leaves the so-called free
world in the
posi¬
of

bolstering and defending

regime

a

type of government,

clique which we ourselves can hardly
admire very much and which the
world at large is
hardly
interested in
saving. Obviously, in a situation of this sort
mere aid, either economic
or
military, is no solution even
in those cases where it is of
sufficient help to be worth
while. Some
slight relief from poverty is about all that
can be
expected, and some
or

a

bolstering of weak military
forces. What is needed
is, of course, a basic change which
would make these
peoples able and willing to abolish
their own
poverty. But such a change is of
necessity long
and
tedious, and many of these

and
are

more

to

accessible

to

areas

communist

are

much

countries

us.

/

nearer

than

they
J

Socialism No Solution

.

ment

•

would, of

be absurd to suppose that Socialany solution of this problem. Economic
improve¬

in such

course,

places

can

come

by that route only in the
^ay that the came to Russia—by toil, sweat, tears, and
it
blood. If
natives of these lands are
ready to undergo
any such rigorous existence in order to
improve their




that

communism

credit

has

ments

with
be

without

long

riously

adverse

fidence.
slow

had

What

could

rise

"upward

rapid

not

see

have
effect on

delay,

con¬

started

as

a

become

then

a

would

We

sweep.

higher

just

se¬

a

that

tion, and the speculative excesses
would
would

end

could
cm

it
it,

a promo a nv
accompan

anything but

in

rertive
rcctive

drastic cor-

a

^

also
that an upward creep of prices, if
it persisted for any length of time,
and

is

a

for

the

airect

into

turned

inci te

direct

mtervention.
into

it

would

inflation,

clamor

danger,

grave

before

even

lapid

governmenta
one
should la 1

No

of

error

controls

that

thinking

would

succeed

m

controlling inflation. Instead, they
distort an(T damage the economy
without reducing the inflationary
pressures which are the root cause
Of the trouble. And,

trols
do

critical

to

of

and

money

task

to

tell,

out, where the

year

promote

an(J prices. This is a
technical problem, and
namip

irreversible

and

as

difficult
in

dy-

a

hide-

ours

,!dmic economy sucn as ours, juag
will

often

among

seasoned

what t

tjc

•

..

.

differ,

even

experts,
thprp

is

tac_
more

a

fundamental nroblem here

It lies

Jn the the fact that monetary
•

questions

cagt

assume

form

Qr

jn

stand

such as
vital that

this

form

that

ours,

it

consistent with

are

tional

institutions.

is

under-

we

the problem

f^ght inflation in

are

we

of

pol.

distinctive

a

high-employ-

a

men^ economy

aksoiutely

to

as

ht and wh

fi

Bl?t

wronL,

to

tradi-

our

Briefly,

the

Money

demands

to

$20

amounts

credit

and

of

funds

borrowed

economically,
they must aiso be

but
with

to

the

ef¬

our

of

chances
and

for

achieving

balanced
growth.

at

terest rates
create

that would

costs

in¬

entirely false economy
artificially low in¬
today and, in so doing,
inflationary
pressures

borrow

to

eye

sustainable economic

It would be
to

an

the

later increase

sooner or

and

prices

generally,

in¬
cluding the costs of operating the
Federal

Government.

This

happen

can

oblieations

if

Federal

Diacecj in

excessive
ODiigauons are piacea. in excessive
in the commercial bankare

amounts

and the

tem

more

when

so

system, ana me mo e so wnen
in the
central banking system
This socalled "monetization" of the debt,
H it occurs on a scale that in-

*ey are placed directly

volves an increase in

money sup-

pL by more than is warranted by
the

growth of the economy's real
output, can create a serious in¬
flationary potential.
In

order

this

avoid

to

result,

Government must be free to

pete

in

com¬

the

capital markets with
borrowers, public and pri¬
vate, at competitive interest rates.
other

there

effective

are

the

in

limita¬

of its

doing so,
be compelled to

way

Government may

for

around

financing on the
flation problem, and thus on

fect

tions

Solution

When

large

be

When

There Is No Eaiy

course,
much
fiscal year I960,

amount

course,

if

ways

probiem js this.

harm

An

such

GCOnr)mV

require¬

of

do excessive amounts of

financing
borrowing or the

inflationary trend also has
consequences for our world economic position. The harmful ef-

capital are high and rising, as
they are in our economy today,
they tend to outrun savings and,

—whether

fects

inflation
engage in the

in consequence, interest rates tend

through the banking system. This

competition—which,
whether we like it or not, does
exist—is increasingly clear. Whatever
the possibilities of
rigging
our home
economy with escalator
devices in an effort to escape the
differential
impact of inflation,
gadgetry of this kind is not avail-

result, but the normal reaction of

on

of

and

cost

ability

our

price

to

international

able

to

economic

find

walls

by raising
placing restrictive
limitations
on
our

or

quantitative
with

other

could

such

things
does

that
do

actions

nations.
do

How

anything

but harm to the Free World

com-

and

Pursuit of

Government

Policies

Fortunately, the principal areas
of policy to which we must look

such

the

of

steps

expancan-

substituting

and credit for

more

increase

an

supply of real savings., This will

areas.

What

taken
is

in

each

needed

these

of

most

good public understanding of
problem, and based on that

is

a

the
un-

derstanding, public insistence that
the

needed

policies

in

are

fact

pursued.
which

ance

in

single area of policy
can
place full reli-

no

we
a

program

price stability.

to

achieve

Action is required

in

a number of areas
and the only
effective strategy is to harmonize
policies in all of them, so that

they reinforce

one

another.

begin with the area of
tary and credit policy.

me

Under

ization,

our

credit

Let

mone-.

policies

are

monetary

and

formulated

and

administered

by the Federal ReSystem, established by the
Congress as an independent

the

not

maturing

obliga¬

short-term

a

hold

to

way

basis

back

in-

flationary pressures. It is not the
way to hold prices steady.
It is
n°f the way to promote balanced,
sustainable economic growth. Our
laws should not, as they do at
present, put the Federal Governin the position of having to

ment

its debt in ways that may

manage

create

inflationary

Budget

pressures.

Surplus

Is

Needed

Third, I come to the Federal
budget. I do not put this critical
area
of
public policy
in
third

place because it is less important
than the two I have already discussed. Indeed, the importance of

venting

to move, to rise still further,

economic

This

must

The

is

the

be

resisted

right
in

only

way

the

an

upward
and the

rates,
that.is consistent

avoidance

ated

turn.

every

interest

the

promote

is

at

to resist

way

trend

of

are

with

inflation,

higher rates
needed for

economic

growth.

is

of

sav-

acceler-

pectation

rates,

by

as

way

we

taxes

that

^

manage

our

partly

Their

in

levied

are

impor¬

the
on

kind

of

individu¬

als and business concerns, and the
kinds of spending which Govern¬
ment

does.

It

relationship
and

revenues

lies

also

between

in

the

aggregate

aggregate

expendi¬

tures.
For

present

consider

pblicy

purposes

we

only the budget

that

is

or

appropriate

need
fiscal

to

a

getary surplus.

w

e height of the Federal Debt
The

lies

a

number

Thus
^

growth.

tance

the

they lend will

prices rise.

„

public policy in pre¬
inflation and promoting

period of high economic activity
and rapid growth. Under such
conditions—with the nation prosperous, with production, employment, and incomes rising, and
with capital and credit demands
heavy—what is needed is a bud-

this

which is the
investors that

value of the dollar

effective

ex-

And

case

interest

of

to

in
which
we
gain
strength from success. By following a monetary policy that avoids
inflation, we eliminate one of the
major factors making for higher
a

fap

governmental organ-

general

is

of

on

—

value of money, actually cause interest rates, so far as they are free

jngS that

There is
on

tions

proper tax and expenditure policies is such that we may properly
regard them as the sine qua non

"easy money" soluhelp pre- tion to the savings shortage probvent inflation are clear.
So also; lem, and it will not work.
It is
are the approaches to
policy that the inflationary solution, and it
be

refinancing

prices to rise and, by
undermining
confidence
in
the
cause

for the actions that will

should

new

are

The problem

not be solved by

only

freedom

more

areas

inflationary

an

sion of credit.
money

of

where

and

can

credit

available in

permitting

further

spread

make

needed, but we must avoid like
the plague the pseudo-remedy of
seeking to lower interest rates by

munity in which lies security and
hope for th§, strengthening and
democratic institutions?

contrived

a

government

to

economy

we

not

sively restrictive monetary policy,
or
"tight
money."
There
are

Nor

can

is

a
competitive market. Yet it inevitably occasions protests against
what is alleged to be an exces-

readily

solution

trade

This

international

our

relations.

viable

a

tariff

in

us

rise.

to

Fed-

of

when

fortably

budget

balanced,

Government
ditional

This would yield
significant benefits.

its

avoids

claimant

is

the

being

com¬

Federal
an

ad¬

funds in

the

Government

be¬

on

eral debt is the second major element in an adequate program for

capital

markets.

comes,

preventing inflation. The total of
this indebtedness stands today at
close to $290 billion; on a net

funds,

on balance, a supplier of
thus tending to ease the
of demand on savings

to it that the nation's
money sup-

basis,

cies there may

ply expands sufficiently to facilitate the growth of the
economy,

about half the net private debt in

serve

agency.

Federal

The

continuing

Reserve

policy

task

is to

of
see

Federal

debt

the" United States.

is

It is

equal
no

"'

balanced budget there will
in the public debt,

borrowed

is that divides the increases
money supply needed to help

*n

free institutions.

our

prices

in and

year

if direct con¬
carried far enough, they

are

and

refinancing^
the

increase

These

permit, let
inflation of

an

values generally.
It is not an
easy

ments

ndiimtment

aajustmeni,

There

induce,

the

billion.

of

to

as

in¬

but

billion,

refinancing needs of publicly
securities, excluding regular
weekly Treasury bills, are esti-

economic growth from
the increase that will permit or,
anyone
seriously be- still worse, promote speculative
such a surge of infla- excesses and an inflation of costs

lieves that
that
tnat

to

costs

consumer

prices, but also the assignment of
unreasonable
money
values
to
equity
interests
of
all
sorts.
I
doubt

alone

fast

so

fiscal

debt

but

Inflationary Pressures
not

capital

the

public

$8.4

In

a

no

must

but

significant

In

held

ANational Formula toCheck
Continued from first page

the

were,

larger.-

most

influencing

markets.

1959,
creased
by
Treasury's

Possibly

ears.

the

are

factor

year

previously claimed for it will
help to remove some of the scales from some eyes. But
the problem is a real one and will remain so regardless
of any exchange of visits by heads of governments.

9

It

China

appear

and

places

wholly inconsistent with the ideas of our own forefathers,
to

from

disclosures

recent

sympathetic

and

fallen far short of the results

battle for

in some circum¬
stances it is just that. We see evidences of that here at
home, at least those of us with eyes to see do. Of course,
there are very few if any who would admit that their
notions or programs have any resemblance to socialism,
and few who suppose for one moment that, they have
developed their programs under the influence of thinking
which comes directly or indirectly down from Karl Marx.
The fact is, though, that the historian will find that dur¬
ing the past quarter of a century we have adopted many
forms of paternalism, collectivism and restrictions which
are
consistent with the tenets of Marx, and certainly
in

actions

mated

described

sometimes

times,

At

minds.

the

worse

Thursday, September 3, 1959

.

single

Minds

for Men's

Battle

men's

often able to make the

are

.

der, then, that public debt trans¬

could get

ft

We See

As

position, leaders from the free enterprise nations
the desired results faster and better than could
socialist regime. But the proselytes sent out from

.

to

won-

pressure

and

moderating whatever tenden¬
be for interest rates

to rise,

Furthermore,

a

budgetary

sur-

,

Number 5378

190

Volume

.

The Commercial and Financial Chronicle

.

.

plus limits the Treasury's financ¬
the meeting of sea¬
requirements and the
refinancing of maturing obliga¬

ing needs to
sonal

tions.
of

This

reduces

chances

the

Federal

debt being monetized
creating a potentially infla¬
tionary expansion of the money
supply. It also gives the Federal
and

Reserve

authorities

freer

a

in the administration of

hand

monetary

policy.

in

by

reasonable

budgetary
surplus
closer to hand the
for constructive tax

opportunity
reform

and

measures

reduction. From

we

powerful

expect

can

stimulus to

Government

policy

the

portant

to

flation.

Let

sector

practices

of

restrict

our

cies

of

uniquely the mirror of governr
are judged in large part

ment. We

by

attitude

our

questions

fiscal

and

by
the way we
financial affairs that

the

manage

towarcj

reflected in the budget. A bal¬

are

anced
be

budget at this time would
to t'.e world that we

sign

a

not

only know what the right fis¬
policy is, but that we have the

cal

skill and the willingness to pursue
the right policy.
Other Activities Affecting Price

These

the

are

three

in

some

the private

I

economy.

myself

here

two

to

the

shall
im¬

pricing poli¬

business concerns, and

impact of

of

areas

increases

wage

the

costs

on

Can

Industry

Cut Price?

is

fourth

a

mentioned.
well

I

the

more

costs

of

is

has

be

less

others.

the

Federal

developed

direct

bearing

actual

prices,

it is

as

com¬

the

or

This

one.

fact, however,
importance
of pursuing pricing policies that
will
help widen markets, help
keep the cost of living steady, and
help
promote
sustainable
eco¬
does not

nomic
be

the

growth. True, prices cannot
or
changed without due

set

to

regard
to

diminish

the

but it is essential
operation of an

cost,

effective

to

tion

few.

a

For

-

of

thing,

one

goods

tariffs

and

devices.

country
by
other restrictive

our

by

By

limit the flow

we

into

reducing supply

and

insulating
domestic
production
from
foreign competition, these
measures

prices

keep

levels than would

at

higher

otherwise pre¬

is

the

itself

Federal

Government

large

buyer of
goods and services.
Indeed, in
some parts of the economy its
pro¬
curement, or that done by its vari¬
a

tiers

ous

very

of

contractors,

dominates the market.
from

the

ment

magnitude

virtually

Even apart

of

procure¬

demand, the methods which

Government

follows

in

letting

contracts and

executing purchases
invite cost and price

also

may

increases

that

could

otherwise

be

avoided.-

addition, the Federal Gov¬
ernment has, for various reasons,
entered
into
large
stockpiling
Beyond

programs.

their

direct

budgetary impact, these programs
have the effect of raising prices or
of
holding prices of many key
materials
at
higher levels than
would otherwise prevail,

Finally,

v.

has

ment

ly

Federal

This

by

not

bearing

what I

costs

on

the

prices.

mean

that

and
is

all the

by

impact

of

inadvertent
more

deserv¬

ing of attention. The various pro¬
grams were established to achieve
specific purposes and they must
continue to be operated with these
goals in mind.
But is it not also
reasonable

expect

to

that

*cost-and-price-increasing
should

held

be

to

the

their

impact

minimum

for the achievement of
goals?

necessary

program
.

As

group

may

you

was

know,

a

organized

special
recently

within the Executive Branch—the
Committee

on

Government Activ¬

ities Affecting Prices and
to

these pro¬
o*
a
continuing basis.
I
expect this group to be an

study

grams

would

Costs—

and

increasingly

follow

important




arm

of

ex¬

are

achievement

of

Effect of the Steel Strike

stability over the economy
generally. We should aim in these

The

impact

not
merely
to
hold
prices steady, but to extend part
of the benefit of

of

which started

the

steel

that this

July 15 has made

provement

form
we

productivity im¬

the

to

the

of

general

price

public

reductions.

consider the hardship
suffer from in¬

individuals

on

railroads

trict.

It

is

expected the

earnings will be

even

nance

more

flation,
the

it

vage value

pro¬

needed
more

steady

a

condition

achieving

balanced

and

growth.

Erie

for

Far

economic

from

being a goal
that is competitive with economic
growth,
oyer-all price
stability
provides the best framework for
achieving
Could

sustainable

growth.

believe
achieving a

that

of

stable rate of economic
the

our

high

and

anyone

chances

months

and

growth in

ahead

years

limitations, to reduce prices
maintaining a satisfactory
profit rate.
In
this connection,
pricing
formulas
that
may
be
based

experience

on

market

that

a

longer

no

invalidated

in

should

exists,

beliefs

be

sellers'
to

as

or

the

consum¬

reviewed

if
necessary, revised. But as I have
already noted, prices cannot be
set, or reduced, without regard to
costs.
And, since labor is em¬
ers,

bodied

in
in

ment

materials

addition

and,

and

to

equip¬
used

being

directly in production, it is idle to
think

unit

cost

were

less

con¬

tinuously? Is it not clear that such
expectation,

an

would

lead

increases

Is.

not

to

drive

clear

routing,

more

more

that

labor

cost

(including
fringe benefits).

but

iji

the

of

an

expectation of continual price in¬
would

creases

in

our

lead

might

at

appear

celeration

of

to

imbalances

which, while they

economy

first

an

as

growth, would

in the end to

ac¬

lead

economic

severe

re¬

verses?
Inflation

Threat

Fortunately,
has

stability

with inflation. The connection be¬

been

is favorable.

tween

Still

Remains

the

in
can

last

say

considerable

very

against

of productivity, which
inevitably arises when wages and
prices are discussed in connection

in

made

the

inflationary
and

year,

forces
think we

I

that the outlook for price
over the months
ahead
We

be

can

gratified

productivity and prices is
a simple one.
It is the concept of
productivity that enables us to

relatively stable for the past

iransiate

mistake

hourly
earnings into unit labor costs, and
the

costs

wages or average

of

movement

unit

labor

(including the cost of fringe

benefits)
trend

of

is

that

relevant

prices. If

hourly earnings

or

think

to

been
ance

be

is

be

that

of inflation has been

matter

have

But it would

disposed of.

the

(adjusted to

prices

consumer

more.

aver¬

to

rise in

a

that

been

a

the

year

grave

threat

permanently

The plain fact of the
the

that

threat

has

not

dispelled and that our vigil¬
respecting inflation must not

relaxed.

If

we

to

are

achieve

reflect fringe benefit costs) occurs
at the same rate as productivity

reasonable price stability we must
not expand Federal expenditures

improves, unit labor cost remains

without

regard

constant,

pile

new

hold

and

the

opportunity to

prices constant is enhanced.

On the other

hand, if this adjusted

rises more rapidly than
productivity, unit labor cost rises,
and pressure is created for prices
to rise. Conversely, if this
adjusted
average rises less rapidly than the
average

improvement in productivity, unit
labor
cost
falls, and
room
for
price reduction is created.
Wants

Productivity

Gains

Passed

On

It

is

clear,

we

must not

and

wage
outrun

the

nificant

costs for

the

virtual necessity.

a

that, for the
increases
on

economy

the

in

economy

labor

average,

productivity

as

This
as

is

a

whole
means

whole,

compensation,

should

equate

improvements,

the average. It does not
increases
in
the
rate

labor

a

labor

mean

at

compensated

to
on

that

which

should

match

wave

of

that

productivity improve¬
reasonably

we can

period

over

prevention in

of

the

ex¬

sig¬
Indeed,

our

to

means,

public

country today is
The right

opposite.

national formula

live within

follow

policy,

debt

to

is

to

a

prudent

conduct

our

financing

operations
on
a
non-inflationary basis, to
hold average wage and fringe in¬
within

creases

age

the

limits of

productivity
still

promote

aver¬

gains,

and
to
higher levels of ef¬

ficiency and thrift.
No

one

can

will in

part

as

feel

of

and,

the

since

wage

to

another;
increases
and

economy

fringe benefit improvements tend
to be

more

ployment
unit
as

a

that

Other

uniform from

to

labor

one

em¬

another, stability of

cost

for

the

almost

certain

strike

occur

on

control

needed

policies
But I do

the
tral

will

earnings,

feel

be

factor in

entirely
success

confident

in

this

in

effort

a
powerfully favorable
promoting the growth of

$10.75

The
to

and

seemed

to

have

Ohio.

&

been

July reported
compared

underwriting group
by Beil & Hough, Inc.

net

proceeds

reduce

will

outstanding

be

used

indebted¬

of the company,

program,

and

capital,

for

other

work¬

corporate

Florida

Water

&

Utilities

Co.

organized in Florida on May
1954, under the name South

was

hurt

4,

Pennsylvania Railroad

at
on

purposes.

earnings-wise than the East.
The

Co.

made

was

ing

roads

less

of

$1)

an

construction

The

Western

and

(par

Utilities

and to pro¬
vide a portion of the funds for the
completion of the company's 1959

steel

despite close
included

Baltimore

&

share,

per

headed

which

the

Water

Aug. 28 by

expenses,

Southwestern

Florida

for

Public

Service

adopted its present

deficit of $974,435
with net income of
a

It

Co.

of Flor¬

name

ida Water and Utilities Co. in De¬

$4,050,213 in June of this year and
deficit of $4,978,381 in July of

cember, 1957.

last

St., Miami, Fla., and a field
operating office at 9740 Caribbean
Boulevard,
Cutler
Ridge,
Dade
County, Fla., which is located in

executive

a

New
York
Central,
another
major eastern trunk line, reported
a July net loss of
$555,439 as com¬

the

pared

with a net income of $3,580,584 in June and a loss of $3,759,419 in the like 1958 month.

at

serviced

area

The company

1491

N.

W.

by the company.

has had extensive

relations

carloadings
continued to de¬

August
sharply from those of

with

panies

freight

during

It has its principal

offices

20th

year.

follows:

as

During

the

its

affiliated

four

past

com¬

a

years

a year
substantial part of the company's
and preceding months of this 'construction work was performed
year.
For the week of Aug. 22, by
Cutler
Ridge
Construction
loadings amounted to only 542,561 Corp. and Cutler Ridge Building
cars, or 0.2% less than in the pre¬
Corp.
Both are affiliates of the

ago

•

ceding week, 91,670

cars, or 14.5%
corresponding
216,679 cars, or
28.5% under the comparable week
two years ago.
The carloadings of

fewer

than

week

of

and

indicate

weeks

recent

the

in

1958

that

earn¬

ings for the month of August will
be

considerably below those of
substantially under those

1958 and

reported for 1957.
is

It

interesting

with

even

of

to

note

that

the drop

consequently
face

in traffic and
earnings and in the
negotiations this

labor

Billings for
during this

company.

performed
time
291

total
and

the

work

period

of

approximately $1,658,-

the

to

cost

the

affiliates

approximately $1,428,074. This
substantially all of
phase of the company's busi¬
ness.
Cutler Ridge Construction
Corp. is 65% owned by Joshua J.
was

constituted

this

Segal and 33% owned by David
BlUmberg. Cutler Ridge Building
Corp. is 461/2% owned by Mr. Se¬
gal and
231/2%
owned by
Mr.
Blumberg, and 30% owned by one

Fall, that Erie and the Delaware,

Morris

Lackawanna

Coral Gables, Fla.

going

railroads
tion

built 501

been

of

special
the

of

Sept.

proxies

consolida¬

the

meetings
roads

two

22.

sent

Approval

of the
will

be

Ridge

Cremona

Building

Ave.,
Corp.

homes and Cutler Ridge

Construction
homes

830

in

Corp.

the

built

Cutler

Ridge

288
area

serviced by the company prior to
June 30, 1958.

of

the
Commission

Commerce

Interstate
also

Cutler

support

holders

their

Fox,

merger

have

and

held

with

still

are

Stockholders of the two

program.

asking

Western

&

ahead

Coast Stock Exch.

is necessary.

It has been officially announced

that

the

Erie

Lackawanna

and

will begin an extensive
tion

of facilities

between

ing, N. Y.
tion

was

of

Work

started

actual

on

before

mergers

of

Aug. 31
and Corn¬

this coordina¬
the

the

for

move

properties

It involves elimination

made.

duplicate mileage between the

two

cities

and

miles of the

Officials

joint

economy

improvement

use

of

73

Erie.

of the

and
of

look

for

The

roads

Public

Coast

Stock

Ex¬

Labor Day.

Trading hours on the Pacific
Coast Stock Exchange on Admis¬
sion day
Sept. 9, 1959, will be
from 7:00 a.m. to 1:00
p.m.
(in¬
of

2:30

p.m.).

/

state

the progressive
our
economic

success.

Pacific

change will be closed on Monday,
Sept. 7, 1959, in observance of

stead
two

welfare.
I

Trading Hours

coordina¬

program

Binghamton

un¬

Western Pacific Sees.
SEATTLE,

Wash.

Western

—

Pacific Securities Inc. is engaging
in a securities business from of¬

derstanding of the inflation prob¬

fices

lem

of the policies needed to

Duane C. Frisbie

persistent upward drift
and prices has improved

the firm.

and

improved

I

of

stock

common

Florida

Pennsylvania, New York Cen¬

reasonably certain they will keep
inflationary pressures in check.

saying that

of

ness

carriers

Hough Group

offering of 86,000 shares

an

amount¬

pay

result

over

prevent

economy

to

that

fact be adopted.

mail

the

entirely confident in saying
that, if we pursue policies such as
I have outlined here, we can be

And

whole requires that increases
are

guarantees

Public

of

major

showed

our

give guarantees

to the effectiveness of
particular
policies, much less than he can give

productivity improvements
in
every
industry. Productivity
gains vary a good bit from one

in

at

& Utilities Co. Shares

of

ing to $1,691,897.

any

time.
the formula for effective inflation-

monetary

unit

a

increases

pect to be sustained

our

stable

indulge in

fringe

ments, that

achievement

of

and

revenues

tially inflationary character. And

exactly

then, that from the

to

budgetary deficits.
We
must
not
permit
excessive
credit expansion.
We must avoid
public debt financing of a poten¬
up

standpoint of inflation control, the

is

settlement

cline

fight

deficit

Revenue

progress

question

is

of

uses

thrift? Ahd is it not clear that

the

This brings us to the important

it

it

detriment

productive,

month

as¬

savings into

the

to

uses

first

at

the

longer

no

estimated

Offers Florida Wafer

$1,802,167.
This compares with an operating
profit of $284,173 in July, 1958,
although latter month's earnings
were augmented by a retroactive

as

the

end

widespread,
more
rapid

were

it

tend

speculative
of

if
even

than

sumed?

would

to

for

July, when the road reported
operating

that

prices can be reduced
significantly without due regard
to

more

Railroad

been

to

Sal¬

$2,000,000.

Beil &

reasonably

$1,000,000.

of materials

has

than

expected

are

than

more

Car-

August results.
have been falling

not

is

for

case

expenses

reach

drop in

in

nounced

project will cost the two

$1,630,000, while annual
savings in operating and mainte¬

marked

effect on the earnings
railroads, particularly those
serving the Eastern industrial dis¬
a

Railroads

on

strike

of the

industries,

prices

a

The

the

or

gov¬

have

prices.

of, the

much

activities

makes them

for

exhaustive

activities

that

these

enormous¬

list,
but it will suffice

an

means,

any

illustrate

Govern¬

programs

of agricultural
is

ernment

fact

into

entered

expensive

support

to

the

for

would be improved if

age

In

to

expected to rise

economy that business
explore and exploit the
opportunities they
have, within

vail.

Also,

reasonable

enterprise

on

prices. I shall not try
list them all, but let me men¬

most

concerns

habits and preferences of

and

is

essential

range of discretion
price setting, but this power to

a

on

it

pect the price reductions that

is not necessarily the final

wide

a

a

that have

programs

less

or

it

the

than

years,

Government
number

should

believe

understood

Over

that

But

especially

monly called, may well be exag¬
gerated. The initial or listed price

manufacturing indus¬
companies are reputed to

many

while

there

that

that

cost

inflation.

Railroad Securities

where

come

are

loadings
sub¬
surprising that
stantially, mainly as a result of
stable
the drop in heavy industry
ship¬
price level is frequently devel¬
ments.
oped
primarily
on
grounds
of
One
of the
most
drastic
ex¬
equity
and
fairness.
But
it
is
amples of the result of the steel
equally
important
to
recognize
was
the report of the
that over-all price stability is an stoppage

In

have

the

of

offset

Clearly,

rapid. And it is in these industries

in

prices.

public policy most significant for
prevention

gains

When

and

"administer"

impor¬
The budget

even more

tant, beneficial effect.

in¬

of

to

now

be

price

and

in

is

turn

im¬

cies

in

respects

that_are

prevention

me

like this would have another, and
some

should

elsewhere.

productivity

essential

tries,
time

declines

questions having to do with poli¬

gain

a

sectors

some

these declines should

So much for the major areas of

economic

budget surplus at

a

of

such

to

growth.
But

stability

prices.

portant matters:

Finally,
a
would
bring

a

Governmental policy in seeking to
achieve

of

a

costs

enormously of late.
that

I

It is on this
public
understanding
my belief that right
will
prevail,
and
that

base

policies

through right policies we will
forward to still higher levels
economic

welfare.

go

of

at

3046

Claude B.
EL

Oleny

PASO,

is

business

45th

East

is

a

Oleny Opens
Tex.

from

offices

Mart

Claude

—

conducting

ternational

Street.

principal of

a

B.

securities

at

Building.

206

In¬

22

The Commercial and Financial Chronicle

(946)

stopping inflation because of the

Appraisal of Our Monetary
And Debt Management Policies

An

evitable

of

mpaniment

a cco

out

started

Continued from page 3

inflation
sooner

growth.

general

the

outlined

have

I

argument of the "creeping infla¬
tionists" in order to contrast our
own
views. We believe that full

employment, sustainable economic

growth, and general price stability

interdependent in the
longer run, and that they must
be pursued as a whole if we are
to
preserve
our
free economic
society. This is because a national
policy of inflation—even creeping
vitally

are

inflation—would have destructive

economic

for

consequences

growth and economic and political
democracy. Many of these conse¬
quences

already much
the result of
have
already

are

apparent

as

inflation

we

ex¬

of

the

perienced since the end
war.
What
are
these

too
the

conse¬

First,

continued decline in the

a

of

to

bound

is

dollar

the

injure and eventually destroy the
will of the American people
to

thereby to
growth. Under
economic system the growth
voluntarily

save

our

and

economic

finance

springs from the willing¬
of the people to save some

process
ness"

their

of

income

and

invest¬

the

savings in factories,

ment of these

homes,
public works, and other capital
goods. Saving is also the basic
source of working capital, so im¬
portant for the growth of business
and industry. Who would have the
mines,

business

desire to
which

the

concerns,

attractive

invest

mortgages

as

it

such
as

deteriorated

in

value.

Moreover, under the expectation
of inflation—-creeping
or
other¬
wise—people would have the in¬
centive not only to stop saving
but also to incur debt more freely
in order to accelerate their spend¬

ing, for inflation robs creditors to
the advantage of debtors.
continuing
a

inflation
of

way

life,

redouble

.

galloping
that

reason

why creeping inflation
same

course

important consequence
of a continuing rise in the general
price level lies in the difficulties
encountered in Federal financing.
As the general public's expecta¬
tion

inflation

of

investors

grows,

bound to become less and less

are

willing

purchase

to

of

because

bonds

nature

come

government

ihe

fixed-in¬

sulh

of

securities.

especially
great when market interest rates

investors

cumstances

shift

the

to

time

for

restrictive

his

should

everyone

efforts

to

a

Fed¬

policy to have
restraining effect. Moreover, the
frequent Treasury trips to
the

a

refinance

to

seriously

effective

supply

the

by

sistent

hamper

control

authorities.

of

wise

the

and

money

of

level makes the sale of U. S.

ings

bonds

tends

to

tions

sav¬

difficult

more

accentuate

the

and

redemp¬

of

outstanding bonds.
This
is a highly important problem be¬
cause
there are over $38 billion
of

E-bonds

outstanding at
the
present time, payable on demand
by the U. S. Treasury.
Continued

Federal,

deficits

in stride

wages

with

the increasing cost of living
would
spread
throughout
the

the American people and
business would seek to ride along

ways,

However, to whatever extent a
stimulating effect of a rising gen¬
price

fact that

level

from

comes

the

elements of society
able to benefit at the expense
some

others,

weakened

the

stimulus

inflation

as

of life and
to

many

be

becomes

means

ride

will

found

are

along

a

with

it.

these

circumstances, it is
highly likely that bigger doses of
inflation would
to

be

produce

resorted

to

in

stimulating
effect. This is one of the
important
reasons why "creeping inflation"
is bound

to

more

by
a

:

has

a

out

and

most

A

is

more

inflation.

little wonder,

then, why

thoughtful students of fiscal

budget be brought under

third

consequence of infla¬
tion is that it breeds a multiplicity

government

controls

market

ample,
to

on our

For

economy.

inflation is likely to
and

more

over

ulti¬

and

mately places serious curbs

level.

"gal¬

to

rise

im¬

The

guard
of

the

history

inflation
the
experienced is that it
every

i)




a

more

direct

ex¬

lead

controls

the free

further interest

soon

to

be

hold

rate rise would

met by legislative efforts
down the rise of
rates

through direct government lend¬
ing and government purchases of
mortgages
bonds.

and
state
and
local
Since interest rates are the

prices

of

borrowed

funds,

if the

free movement of interest rates is
restricted by

sult

government, the re¬
only be policies

would

which

not

would

but also

the

accentuate inflation

spread of

a

network

of direct government controls

where

capital

ployed and

public

more

need

continuing

into
the

as

the

price

almost

world

break

inflation"

becomes

of

wages

It seems
would be

control,

under

this

and

would ultimately restrict the freedom

worker

the

of

select

to

his

on

funds

can

over

be

em¬

what terms.

The

Treasury's Financing

Debt

measures

would

ultimately

lead to

the spread of direct gov¬
ernment controls over wholesale
and
so

retail prices.
well

during

these controls

are

expanded money supply in the
capital goods fields, with its subsequent ramifications throughout

the rest of the economy, contributed to inflationary pressures and
provided a climate favorable to
the wage-price spiral. Excess demand for

goods using this money
wage-price push teamed

the

and

At

Perspective

As

we

World
not

learned

War

II,
effective iq

prices.

in
which
private
capital funds have not

of

been plentiful

„

enough, at rigidly

The problems of Treasury fi- fixed
interest
rates
to
meet
nancing and public debt manage- Congressional desires for FHA and
merit can only be studied profityA mortgage financing, the supably against the background of ply has
artificially been expanded
conditions in the capital ma£ket
through purchases of such mortand the economy as awhole.com-

peting demands for loanable funds
have

a

capital funds also must be viewed

has

occurred

the

this

money

and

direct

has resulted from

expansion of

an

bank deposits and

commercal

the

supply. It has thus had an
inflationary impact in the resim0ney

dential

construction

field

"and

consequently in the economy as a
whole_ It ig significant that durjng the period from 1946 to 1958,
the

Boeckh

index

residential

of

dwelling unit construction
rose
73%,
whereas
the
wholesale

in

years

for

figures.
During most
this period the demand

capital funds from

both

51%

rose

the

and

index

great

outrun the

to

supply of
outgrowth
pent-up desires during the war,
as

savings.
of

As

well

as

a

natural

other

as

forces

such

as

population growth and technologi-

funds

to

and

expand

industry,
to
build
homes, to construct schools, highways, and other public works, and
for
other
capital improvements,
has been

so

enormous

as

to

press

sorely against the relatively limited supply of savings. In addition
to the

purely domestic demand for
long-term funds, there has been a
heavy draft

on

to finance both

commitments
Federal
much

the capital market
public and private
abroad.
Repeated

deficits

contributed

have

total

the

to

funds.

demand

for

-

The

of demand for capital funds over the supply of savexcess

ings has persisted despite the fact
that

during 1947-1958 the total of
capital funds available from
ings

sources

lion to

the

in

uct

dollar

to

was

rose

from

say$16.9 bil-

$28.7 billion. This increase
of

amount

savings

limited extent the prod-

a

of

the growth of national

in-

in real terms, but it was also
largely the product of the inflated

come

price

level and the inflated money
of

incomes

does

raise

the

period.

Inflation

level of money in-

the

comes and thus produces a greater
aggregate «f money savings, but
not
real
savings.
However, as
noted earlier, continued inflation

bound

is

to

weaken

the

urge

to

thus the rate of saving
people. Moreover, as figpresented subsequently demonstrate, inflation raises the demand for capital funds much more

save

and

our

ures

than

it

amount

does

of

the

total

dollar

saving.

As the demand for

exceeded the

supply of savings in
.*

65%

or

of

con-

the funds financing dilending by the Veterans' Ad-

ministration have been raised
the

to

Usually

commercial

expansion

an

by

banks,

direct

of

government loans and FNMA pur-

chases has conflicted with Federal
Reserve

efforts

to

inf la-

restrain

and

active in the hous-

more

$13.5

net

billion,

increase

of

$20.8 billion in total assets.
The

above

in terms

discussion

the

of

has

been

huge demand for

government-insured and guaran¬
teed mortgage loans and the com¬

petition

such

mortgages

bonds.

government

offer

The

to

difficult

competitive

position of the latter
quite clear. In addition, there

have

been

Federally-guaranteed

ship loans and bond issues of vari¬
ous
Federal agencies such as the
Home

Loan

Bank System which
with the U. S. Treasury

compete
for

funds. But, it should also be
kept in mind that throughout the
postwar period there has been a

consistently

large

loans,

commercial

or

and

demand

for

uninsured mort¬

both

residential
industrial.

and
Gen¬

erally speaking,

the net yield

the conventional

loans,

allowing
risk of

for

on

even after

somewhat

greater

loss, is higher than the net

yield

on FHA and VA mortgages.
Moreover, the net yield on high-

grade corporate securities directly
placed with institutional investors
has

consistently been within the
range as the yield on con¬

same

income

rate

tax

has

reduced

effectiveness

of

increase

deterrent

rate

as

a

is

cost

to

Since

deductible

a

the

interest

an

borrowing.

rate

corpo¬

interest

expense

in

business

taxation, the effect of a
borrowing costs to a busi¬
concern
in
the higher tax

rise in
ness

brackets is cut in half.
it

is

also

Moreover,
to keep in

important

mind that double taxation of

porate

earnings

against

Throughout this period, as the
Federal Government has become
more

to

their

From
the
standpoint
of
the
Treasury's
ability
to
^compete
with
heavy
corporate
demands
upon the capital market, it should
be noted that the 52% corporate

of

often

too

sale

has

financing
stock

of

tributed

to

a

and

cor¬

militated

through
has

thus

the
con¬

greater

proportion
The combined

of bond financing.

ing and mortgage field, individual

effect of the above-mentioned fac¬

investors

tors

and

financial

come

to accept the govand
guaranteed

ernment-insured

mortgage

attractive

their funds.

institu-

desirable and

as a

paratively

corn-

for

outlet

and the heavy demand for
capital funds by business and in¬
dustry has made it difficult for the

Treasury

long-term

to bid successfully for
funds.
This has been

This has been doubly

especially true in that, after a dec¬
ade of very few business and industral failures,
many
investors
vestment in these mortgages. In- have come to regard corporate
deed, the readiness with which bonds practically as riskless as
Congress has been willing to ex- government securities. The result
pand direct government lending is that the risk element in the
and FNMA purchases has placed yield "spread" between corporate
true

because

pressure

policy
in-

government

has endeavored

to

encourage

investors

on

to

make

mortgage loans in order to avoid
having government replace private
capital
in the
residential
mortgage field. Of particular significance for the Treasury in its
financirig efforts is the fact that
the net yield to investors (after
all costs)

FHA and VA mort-

on

has consistently been appre-

gages

bonds and

government bonds has

narrcwed in the

postwar period.

In summary,

during the postwar
period the ability of the U. S.
Treasury to sell long-term bonds
has been reduced sharply and the
problem of maintaining a bal¬
anced
maturity distribution has
become

This

more

and

difficult.

more

is

primarily because of the
huge competing demands for cap¬
ital funds in the private sectors
It is apparent, therefore, that of the
economy and for state and
FHA and VA mortgages
(not to local financing which too often
mention
conventional
mortgages have exceeded the total supply of
and corporate bonds) present stiff
savings.
These
competing
de¬
competition
to
the
government mands,
encouraged
and
even
bond market. This has consistently stimulated
by government housing
been true throughout the postwar and tax
policies, have outbid the
period.
Through its program of U. S. Treasury in obtaining the
residential
mortgage
insurance available funds. The inflation en¬

ciably

higher than the yield
long-term government bonds.

and

guaranty,
has

ernment
an

js

considered

risk than

a

on

the Federal Govbrought into being

investment

instrument

have

to

which

little

more

government bond but

which pays a markedly higher net
ra+~
nf
return
Steadilv
rising

real

quoted

inflation
of

littie

estate

have

risk

valued

fortified
in

an

thl

in

the belief

FHA

VA

or

It is little wonder, then,
that many investors have substi-

mortgage.

FHA

tuted

and

VA

mortgages in

their

portfolios for government
During the period 19461958, for example, the net increase

bonds.

jn

ijfe

jngs
capital funds

period amounted

ventional mortgages.

prices 48%.
The
reason
why FNMA purchases have been
inflationary is that FNMA debentures have usually found their
way into commercial banks; also,
rect

banks' holdings

mortgages in the

BLS

sumer

pri^ tions have

vate and public users has been so

of VA and FHA

costs

commodity price index

affect--tionary forces,

above

during this period.
Even
strikingly, the net increase

of mutual savings

gage

sales

which

more

"conventional"

lending.
Too often
for FNMA purchases
government
lending

in
1958, for a real increase in
output of 40%. Associated with
this growth was a most unfortunate rise of over 48%
in prices,

inflation

assets

government

the Treasury by means of security

is.a highly important force

Thursday, September 3, 1959

.

gages* by
the
Federal
National
Mortgage Association and direct

$312 billion in 1946 to $438 billion

The

.

is

periods

Policies in

Management

sources

by

Moreover, continuing inflation¬
ary

was

and

job.

own

capital

There

of

capital market.
As
noted earlier, rising interest rates
with rising prices. Regardless of
are an inevitable market
phenom¬
how much escalation did
occur, enon under inflationary conditions
some
elements
of
our
society because of the heavy demands for
would be unprotected and would
capital funds relative to supply.
suffer
because
their
incomes Congressional reactions we have
would
be
comparatively
fixed. already experienced indicate that

general

brought

that

changes, the postwar demand

free

purchases, variable
annuities, purchasing power
bonds, and
in
countless
other

against

inevitable

modernize

and real estate

pressed

lectively remain intact?

col-

expectation

of

loping

bargain

cal

economy. Through other measures
such as increased common stock

order

to

labor

of

for

control.

Under

freedom

do

designed to keep

by

could the

much to promote inflation and the

Federal

way

trols, they are bound to multiply
and become more pervasive.
Under these circumstances

Federal Reserve ing Treasury financing today.
addition, a per¬
Analysis of the capital markets
the general price
in the period 1946-1958 confirms

In

rise

short-term

policy think it is urgent that the

of

con-

of bonds or mortgages in perspective, as well as the
bearing higher interest rates—or trends in public policy in importhey shift even more into equity tant areas such as housing, resiinvestments
of all types.
Thus, dential mortgage lending, and forthe government is compelled to eign aid and investment.
rely upon* short-term financing,
During the postwar period, with
much of which finds its way into comparatively moderate
iqtgrrup-;
the
commercial
banks,
which tions, our national economy has
create new money in purchasing functioned at
capacity or close to
it.
The
short-term
government capacity,,and w,e have achieved a
securities which do not lodge in commendable growth in national
the banks become highly liquid
output.
Measured
in
current
assets in the hands of corporations
prices
(i.e.,
without
correcting
and thus render the task of the for price
changes), gross national
monetary authorities more diffi¬ product increased from $211 bilcult in influencing the volume of lion in 1946 to
$438 billion in 1958,
spending in the economy.
With a rise of 108%. Expressed in 1958
corporate liquidity high, it takes dollars, however, GNP rose from

calation clauses in labor contracts

are

government

profound effect on Treasury policies, so that it is important
to
rise above the statutory rate on
analyze the trends in these
demands.
Likewise,
long-term government bonds, now competing
trends in the flow of long-term
fixed at 4%%. Under these cir¬

The difficulties become

hedge and protect against it. Es¬

eral

direct

of

the postwar years, the
filled by an increase in
the supply of
money
resulting
from an expansion of commercial
bank credit. The pressure of this
of

many

gap

to ratchet up

A second

corporate

under

being inevitable, people would be
spending a higher pro¬
portion of their current income

would

see

an

route

This is why, as we go the

in the United .States.

debt

anticipated

generally

become

can

market

driven to

If

we

no

would not follow the

fixed-in¬

in

conditions? If inflation should be¬

before

into

pace

inflation. There is

at

eral Reserve credit

to

or

come

moved

price level is
upward as a
Who would find it

move

obligations such

bonds

accelerating

creeping
proceeded, it

it

as

later

more

general
to

of life?

come

but,
or

under conditions in

save

expected
way

modest

a

actions.

purchase

quences?
value

as

breakout of "black market" trans-

.

insurance

yA

holdmortgages

company

FHA

and

expansion of the
supply of money to supplement
savings,
along with the wageprice spiral, has itself made it
more
difficult to sell long-term
Treasury bonds.,
gendered by an

This review of the Treasury fi¬

nancing and debt management in
the

perspective

market and
as

whole

a

for

government

(1)
and

The
the

fiscal,

total

i i ?" J

11

net

'♦')

'.i

increase

in

jit"..

is

bonds

Federal

Congress

21%

the

the postwar period

to

be

broadened:

concentrate

of

in

capital
economy

suggests that the following basic
steps must be taken if the market

amounted to $13.5 billion, or over
i

the

of

the national

Government

must

vigorously

monetary,

and

together

with

other

all
ap-

Volume

190

Number 5878

.

.

.

The Commercial and Financial Chronicle

(947)

propriate policies to bring an end
to
inflation
and
to
destroy the
psychology
of
inflation.
Sound

term

securities

mercial

bank

government financing requires

expansion
thus have

retire

the

of

bank

deposits

some

This is

to

too

and

and

private financing in order to

this principle has made the Treas¬

ercise

financing

ury

and

debt

problems much

cult. In

manage¬

diffi¬

more

fact, it is hard to

how

see

debt management problems can be
solved unless Federal budgetary

policy

is

conducted

on

sound

a

basis.

The

Employment

should

be

amended

clear that general

bility is

Act

of

to

1946

make

it

price levei sta¬

goal

importance with
full
employment
and
economic
growth. Moreover, government
a

must

cease
temporizing with the
wage-price spiral. The difficulties

involved here

nonbank
thus

investors

in

draw,s funds

boom

a

from

away

ex¬

restraining effect on busi¬
This theory of debt manage¬

ness.

a

ment

linked

was

the

to

idea that Federal

related

budgetary defi¬

cits should be incurred in
decline

ness

and

busi¬

a

surpluses

in

boom periods. Thus, debt manage¬
ment was viewed as -in important

tool

be

to

employed by govern¬
ment along with fiscal and mone¬
tary policy to combat the business
cycle.
Several

times

this issue has
the

in

recent
the

to

come

fore

as

S. Treasury has sought to
long-term bonds in order to

not to be mini¬

are

lengthen the average maturity of
mized, but inflation is man-made the debt. In June,
1958, specific¬
and can be brought under control
ally, the decision of the Treasury
by intelligent and determined ac¬ to sell a moderate amount of a
tion. The cooperation of private
long-term bond was roundly criti¬
elements

the

but

from

come

is, of
leadership

economy

essential,

course,

must

in

the

government

and Congress.

(2)

Foremost

to

finance

have

it.

been

faster

sorted

what

capital

certain

of

been

beyond
able

the

of

conditions

attention

must

reforms of the
which would
shortage

be

ties

In

savings
relative to the demand for capital
of

for

has

and

study

forms of taxation

eliminate

to
which

unneces¬

discourage saving. This is
not an easy task, in view of the
heavy revenue requirements of

sarily

the

government,
in

clear

ahead

mands

but

the need 4s

the

of

terms

for

a

little

ing.
be

a

great

capital

de¬

funds.

the
same
end, interest
policies of the Federal Gov¬

that

this

Either

bond

seemed

would

if they are

consistent with the

of

saving.

greater

The level of interest rates has

important influence on

an

the will¬

ingness of people to save.
(4) The only possible way for
the Treasury to raise long-term
funds

on

sound

a

basis in

a

free

theory

of

unwise

of

would

in

hurt

high

it

the

of

because

it

prosperity or require
interest rate for the

an

Treasury to
Our

a

recovery,

out

boom

a

such

because

considered

was

question
too

sale

hamper business

it

or

the

pay.

conclusions

regarding

basic

debt

the
governing

considerations

Federal

management

are

as

follows:

(1)

Debt

be

regarded
be

to
in

ment

cycle.

as

an

employed

combatting

Government

counteract

should

management

the

important

by

govern¬

the

business

efforts

cycle

have

to

much

greater potentialities in the
of

areas

The objective of lengthen¬
the average maturity of the

(2)

ing

Federal debt has proved so elu¬
sive, yet is so important, that the
Treasury should take advantage

opportunity

every

sell

to

means

that ef¬

forts should not be relaxed to sell

long

bonds

periods

in

high

of

business activity. It also means, as

practical matter, that the Treas¬

a

must be alert to the opportu¬
nity of selling long-term bonds
ury

in

even

periods

general

of

slack. If there is

ness

lation

of

an

busi¬

accumu¬

available

long-term

to

capital market is to pay the inter¬ purchase government bonds, the
rate
required to bid funds Treasury should make such bonds
available even though a business
away from other users. The Treas¬
ury task of bidding for long-term recession may exist. If such sales
the extent

outlined in the fore¬
going three parts of this summary
that

are

steps

carried

out.

If

Treasury

the

to interfere with business

seem

ures

can

monetary
be

used

policy

to

aid

meas¬

in

cor¬

the situation.

recting

for

(3) Treasury financing and debt

long-term capital unds, it must be
free to meet the going market in¬

management operations should be

is

to

be

terest

in

position to bid

do

recovery,

a

Questions

of

Federal

thetical
on

a

debt

shows

the

The

table

drawn

was

will

be

observed that

will

reduce

to

a

minimum

possible with the freedom of
the monetary authciities.
as

(2) What maturity distribution
Federal
debt
management policy? Since of the marketable Federal debt
the Middle Thirties a widely ac¬ should the Treasury work toward?
cepted
theory of federal debt In view of the great practical dif¬
governing

has

been that jn a

period of declining gene, z 1 busi¬
ness activity the Treasury
snculd
limit
its
financing (eilher new

refunding)

to




ficulties

which

experienced
average

short- might

the

in

Treasury has

lengthening

the

maturity of the d. ot, this

seem

to be

a

fruitless

ques¬

or

callable

in

Included

over.

in

10

the

the Investment Series

are

bonds

of

bonds

1975-80.

Although

themselves

they

are

non-

exchange¬
1%% five-

are

able

for

year

Treasury notes, and hence it
desirable

seems

data

Our

the

marketable

to

show

outstanding

include

that

them.

the

total

long-term

a

maturity of 10

totals
of

$37

the

billion,

total.

Treasury

longer
about 20%

years

or

Some

or

students

financing

and

of

Federal

debt

close

Treasury

end

billion
this

of

1958.
the

at

amounted

the

end

high enough. Others would

had

fallen to

2.0%

March, 1959 it

such

show

in the; longer
maturity
They would hold that the

for

case

extending the average
of the
debt
is not
a

maturity
strong

one

would

be

and that

to

sell

and

to

abandon

efforts

longer-term securities. We

believe
sound

Treasury
well off to

perfectly
financing to short-term

confine its

securities

the

that

this

argument is

that

and

important

there

not

highly
(discussed in

reasons

are

the

following paragraph) for the
Treasury to strive for a balanced
maturity distribution with a sub¬
stantial proportion of
bonds.
A

longer-term

maturity dis¬
tribution would have advantages
for the Treasury, the capital mar¬
ket, the Federal Reserve, and the
economy

to the

ing"

Treasury

Advantages
that a "bunch¬

are

of maturities

possible
tion

whole.

a

as

in

uncertain

would

the

face

market

of

be

reduced.

In

doing, Treasury efforts to raise
for

cash

new

seasonal

needs

or

budgetary deficits would be less
subject to interference from large

refunding operations with
tain

market

reception

uncer¬

attri¬

and

tion. Perhaps most importantly, in
view
of
the
uncertain
interna¬
tional political
for

sense

1945.

By

percentage

insurance

alty

companies,
marine

and

fire,

casu¬

insurance

com¬

panies, and "all other investors"
through 1957. This, latter category
includes

not

vestors but

only

also

banks and

companies

ance

individual

in¬

insur¬

not

reporting in
the Treasury survey, trust
funds,
corporations,
uninsured
pension
funds, and others. The uninsured
pension fund holdings are shown
separately as a "memorandum"
item from 1953

"U.

ment

S.

on.

Government

Accounts
Banks"

serve

has

Federal

shown

since

Reserve

All

abandoned.

of

Re¬

tend¬

a

1951

support

bond

government

Invest¬

Federal

and

decline

to

ency

Even the cate¬

after

of

market
the

the

was

groups

in¬

creased their holdings moderately
in 1958.

Against the

situation, it makes
Treasury to have a
portion of its debt in

the

trends

term

if

have

reviewed, similar
for most longinstitutional investors, what
we

have

we

as

background of the

anything

seen

able

long-term market¬

government bonds?
to

lution

cult

be done to restore

can

the market for

this

problem is

because there

one

The
a

so¬

diffi¬

have been

structure

term

the

From

of

interest

rates.

standpoint of the Fed¬

economic

spacing
duced

of

preservation
stability, an orderly

maturities

and

a

re¬

frequency and size of

re¬

operations

greater

would

freedom

policies

to

allow
pumuc

consistently.

Treasury

market wlmn
eral

debt

so

is

handicap the

trips

to

The
th

.

much of the Fed¬

short-term
use

greatly

of monetary con¬

lies

in

new

government

types of marketable
securities
and
im¬

proved sales

efforts to

dividuals it will still be necessary
to find ways to bring the major

institutions back into the
government bond market as net
purchasers, at least on a limited
scale.
Tins
leads, then, to the
question of what can be done to
accomplish this objective.
saving

Let

us

first consider this ques¬

tion with respect to the life insur¬

companies.

sured pension funds, and other in¬
stitutional investors. What can be
done

fore,

to

into

measures.

For

all

we

objective

of these

reasons,

there¬

believe that the primary
of

policy should

debt

be

a

management,
well-balanced

The basic nature

of the problem is about the same
for mutual savings banks, unin¬

market
heart

bonds

as

of

yield

life crmpanies
the government bond
net purchasers?
The

bring the

the

answer

offered
versus

the

on

lies

in

the

government

rate

of

return

recent

other

on

Treasury
years de¬

earlier in this
report, the interest
rate

on
long-term
government
bonds has
consistently been much
below the net
yield on FHA and
VA

mortgages,

investment

an

in

which there has been
great
public pressure for life companies

area

to

participate. Moreover, the rate
Treasury bonds has been con¬
sistently much higher than the re¬
on

turn

on direct
placements of highquality corporate bonds and con¬

ventional

mortgages.

between

the

yield

The

on

spread
issues

new

of government bonds and
the
new

consistently
make

tive
or

of high-grade
directly placed,
mortgages, has

bonds

conventional

or

been

too

life

great

bonds

government

to

yield

offerings

corporate

insurance

to

attrac¬

companies,

most other institutional invest¬

The

new

interest

offerings

bonds

has

rate

of

placed

on

government

generally

been

set

slightly above the yield on out¬
standing
government
bonds
of
comparable maturity.
It

does

not

adequately

to

seem

have

been

recognized

that
the
market for government bonds has
been an

exceedingly thin

which

the

artificial

prices

and

and

do

one

yields

in

are

not

begin to re¬
existing in
capital market.

flect the market forces
other parts of the
This is

due in part to the limited

supply

of

bonds

long-term

available.

time,

for

government

At

the

quotations

on

present

the

example,

market

outstanding

long-

term

government bonds (due or
callable in 10 years or more) in¬
dicate an average yield of about

4.10%.

This

would

suggest that
circumstances
a

under

present
rate of 41/4% on

a

cash

offering of

a
long-term
government
bond
would be fully competitive in the
mrket. Does this follow,

however,

under
and

conditions

VA

in

mortgages

which

FHA

be

pur¬

can

chased

5%

on a net yield basis of over
after costs, and they are now

receiving

diminishing share of
capital funds because

a

the flow

of

investors

are

gages

an

able to purchase top
quality corporate bonds directly
placed
and
conventional
mort¬
net

on

even

more

attractive

basis?

yield

The

situation

which
it

exists today is not unique;
has been characteristic of the

past several
ury

years.
If the Treas¬
desires to broaden the market

willing

postwar period.
There are
who believe that the answer

tack

trol

in

the

spite much talk about "competing
in the market."
As pointed out

for government

many

yield

has not done

powerful forces behind the trends

ance

frequent

the
This

of the

appeal to
individual investors, to personal
a long-term form in order to leave
trust funds, and to other investors
adequate room for emergency fi¬
than the major savings institu¬
nancing. From the viewpoint of
tions.
There are also many who
the capital market as a whole, a
believe that ways can be found to
mere even
flow of Treasury ma¬
increase sharply the net sales of
turities
and
greater
certainty
individuals so
about the standard disposition of savings bonds to
that a portion of the marketable
maturing issues would be advan¬
long-term debt can be shifted to
tageous, for it would mean Jess
the nonmarketable category. Both
interference with the basic pat¬
of these possibilities are consid¬
tern
of
corporate,
real
estate
ered later. There are others, how¬
mortgage, and state and municipal
ever, who hold that in addition to
financing. It would also mean less
broadening the market with in¬
uncertainty about shifts in the
substantial

with

investments.

9.4%. The data

recep¬

alleviated, and the
size and frequency of refunding
operations involving decisions on
would

of

this

was

petitive

ors.

steady and pronounced
decline in holdings of long-term
government bonds by commercial
banks, mutual savings banks, life

be

terms

of

the

gory

well-balanced

$17.4

8.7%. At the end of

sub¬

having

at

March

Treasury
30%
of the

end

1957

portion of the debt

stantial
as

ques¬

of

a

for

of

to

the

at

eral

'the* need

stood

outstanding marketable Fed¬
debt

management would question
whether this latter percentage is
tion

It

close

Long-term

year.

bonds
total

of

1957, with
$16.8 billion at

moderate rise to

the

debt. The portion of the debt with
a

the

at

other investments. The all-im¬
portant step for the Treasury is to
offer an interest return
fully com¬
on

on

billion

credit

little

as

years

debt.

defined here

are

or

of

maturity of five years and over,
or
nearly one-third of the total

in

to interfere

marketable

due

marketable,

a

questions of Federal .financing and
debt management.

way so as

those

as

ownership

hypothetical maturity distribution
$57 billion would be in bonds with

funding

a

in

long-term

these

eral Reserve and the

a

trends

on

bonds declined steadily from $59.8
billion at the end of 1945 to
$15.2

far

management

in

facts

B

principles; the
proportions in each maturity class
could
be
varied
considerably
without altering these
principles.
It

problem
financing.
Before
one

of_ Treasury
launching into consideration of it,
it will be helpful to review the

figures

to illustrate certain

trips to the market
by the Treasury. A major objec¬

the basic

re¬

merely

up

number

Long-term bonds

quired to keep this maturity dis¬
tribution
unchanged over time.

tive should be to manage the debt

should be

issues

new

the

course,

the

based

billion, which would produce such
flow
of maturing
issues, and

Against the background of the
foregoing discussion, I would now
to
turn to several specific

or

distribution,

a

also

proportion.

is, of

total marketable debt of $180

like

What

which

one

produce a smooth, regular,
steady flow of maturity issues
by means of an orderly spacing
of outstanding issues The accom¬
panying exhibit presents a hypo¬

the number of

money

is

substantial

can be done to restore
the market for long-term market¬
able Treasury bonds? This

and

of

primarily * (as
discussed
fully later) at developing
maturity distribution of the debt

which

(1)

debt

maturity
distribution
in
which
longer-term
issues
constitute
&
(3) What

would

aimed

Financing and Debt Management.

considerations

better

a

maturity distribution

more

rate.

Specific

ideal

the Federal

so

est

funds will be eased to

of

new

monetary and fiscal policy.

longer-bonds. This

requirement

years

Treasury financ¬
There never has seemed to
good time to sell a long-term

of

see

pur¬

long-term

Toward

should be reexamined to

bank

experience of recent

bond.

The

ranges.

rate

ernment

the

management has usually, as
practical matter, led to very

tool

careful

instead

1

proved

not

to

would

recovery.

debt

which will
continue in the foreseeable future,
our tax system needs to be subject

period,

that

-

The

funds which has characterized the

postwar

bond

a

business

commercial

chase.

Federal
encour¬

investment.

and

the

of

the

are

to inflation.

way

saving

view

to

supply

money

system

age

re¬

money

growth

Careful

given to
tax

creation

boom

(3)

saving

have

we

the

increase

under

we

grow

through savings. We have
the
painful lesson that
expenditures financed by

learned

an

to

have

we

finance

often

the

to

country

a

national

our

Too

finance

to

As

such

with

argued

was

is

attempting

than

justifies.

real in¬
requisite saving

the

that

grounds

the

on

fight Treasury should concentrate all of
need better its financing in short-term securi¬

economy

vestment and

quarters

some

the

in

inflation, we
understanding of the fact that the
only source of genuine growth, .in
national

in

interfere
It

against

our

cized

Treasury work toward
maturity distribution.

years

U.

sell

tion. We believe, however, that it
is of vital
importance that the

a

a principle which has been
easily overlooked in the post¬
war period. Failure to
implement

ment

an

stimulating effect on
business. On the other hand, ac¬
surplus
and cording to this theory the Treas¬
of the debt. ury should sell long-term bonds

budgetary

a

should

com¬

with

thought that this would lead to

that in periods of high prosperity
the
Federal
Government should
run

suitable for

purchase,

23

to

bonds, it must be

bid

realistically

for

funds.

Government bonds possess

some

favorable

qualities for life com¬
investors. For one, they are

pany

usually non-callable for nearly the
entire life of the
been

bond.

In recent

in which interest rates have

years

subject to sharp fluctuations,

life companies have come to place

great

emphasis

on

non-redeem-

ability. They have been successful
to
a
large extent in obtaining
this in industrial bond issues, but
few issues in the electric and

gas

utility

field have provided ade¬
quate protection against early re¬
demption. In addition, little pro¬
tection

is

afforded

against early
of rer'dential mort¬
Likewise,
although
life
companies have a high degree of
liquidity, the ultimate market¬
ability of government bonds has
some
advantage.
It may not be
very
great,
however, with the

redemption
gages.

government bond market a very
one.
These qualities of non-

thin

marketability
regarding life
purchases of government

redeemability
are

on

and

the plus side

company

bonds.
As is

life

apparent in this statement,
company
officers

insurance

recognize the inflationary poten¬
tial in the sale of government se¬
curities to the commercial banks.

They
the

understand and appreciate
argument that enlightened
Continued

on

page

24

24

The Commercial and Financial Chronicle

(948)

tractiveness of the

Appraisal of Our Monetary
And Debt Management Policies

An

hold the

Continued from page 23

should

companies

five

same

motivate

must

into

a

of advance fund¬

last

funding

advance

nadian

guaranteed marketable debt poses
the

Treasury

will be true

the same

of

institutional

other

It

is important to

also

the

that

life

commitments

forward

to

of

over

It would be

desirable, there¬

for the Treasury to permit
companies to pay for sub¬

life

scriptions to government bonds on
a
delayed takedown basis.
This
would

life

enable

better

com¬

panies to fit the purchase of gov¬
commitment

their

into

ernments

picture and their cash flow ex¬
pectations. Moreover, possibly
some

means

the

worked

be

can

enter

this

out,

bonds

with

commitments

into

on

scheduled

a

vestors

the

takedown

Thus,
have

regard

other

to

types

of

kets

savings institutions—mutual sav¬
ings
banks,
uninsured
pension
funds, state and local funds, trust
funds, and time deposits of com¬
banks—the

mercial

solution

basic

the Treasury problem of selling
long-term bonds is the same as
with life insurance companies. To

interest

the

vestors

of

such

in¬

the

in'government bonds

Treasury must
a

be willing to
fully competitive interest

With

rate.

of these investors also,

some

because

pay

forward

of

commitments

it would be

helpful for the Treas¬
to permit, payment for bonds

ury
on

basis.

deferred

a

Beyond the institutional invest¬
ors, are
be

there

taken

any

steps which can

In
than with
the savings institutions, the need
to deal a body blow to inflation
psychology is clear. Otherwise the
strong trend toward equities by
this

bonds?

government

area,

even

individuals
their

role

more

further

will
in

the

curities market

real

Assuming

thing can
inflation,

be

"hard
not

reduce

government

as

investors.

raised

done

se¬

long-term

that

to

some¬

deal

the

question

to

with

whether

can

be

through
selling" the Treasury couid
as

market

considerably
more
bonds to individuals.

long-term
Securities

sold

are

just

as

any¬

thing else in this country. Should
not
the Treasury
encourage the
securities marketing machinery of
the country to go out and sell gov¬
ernment

bonds?

This

means

the

and dealers.

tives

are

given

Perhaps if incen¬
to

salesmen

improvement in sales of
ments

may

the

v

to

loss

bonds

B

little

govern¬

be surprisingly great.

the

idea

that

investors

who realize capital gains, but who
invest the proceeds in government

securities, might be subject to a
lower capital gains tax—for ex¬
ample, 10 or 15%. In order to
qualify for the reduced rate, such
investors might be required
to




of

De-

March

being other good possibili-

These bonds

the

are

now

commercial

vestment range

coming

bank

in-

and will undoubt-

would

always

be

found.

source

The advantages which some life

insurance
officers

company

in

have

mind

H

be realized
through limiting the uncertainty
about allotments on subscriptions
and by permitting deferred payment for government bonds.
It
would be desirable to let savings
to

could

issue

tap

a

their hands.
of

Moreover,

a program

advance

will

funding of the 2V2s
up a hole in the inter-

open

mediate term issues and thus per-

information
apparently, that

over

a

more

have

than

come

five-year

notes. This issue, therefore, would
to be a nrime candidate for

might decide to offer $1 billion of

of

the

the

could

Treasury

do

a

For

rate.

terest

issue

new

in-

nurchased

a

for

par

basis

par

The

bond.

ratio

changeable

for

the

new

bonds

of

ex-

be adjustable
how much encouragement the Treasury wanted to
build up for the cash offering.
would

depending

It

on

would

that

seem

a

tie-in

be-

cash offering and advance

a

funding

such

outlined

as

above

could be

B

the

bonds the opportunity to exchange
them for a new marketable long-

the

market

be

holders

of

offer

the

Investment

issue at

term

the

to

yield

a

Series

undoubtedly

exchange

Holders of

Series

Investment

would

line with

in

going market rate.

the

current

attractive

bonds

B

find

such

an

they

because

would be able to dispose of a nonmarketable bond with a low cou¬
pon,

which

on

exists

the

if

a

substantial

conversion

is

bonds.

cash

offering

fully

If

ceeded
cash

to

The

is

advantage

extension

to

the

the

of

av¬

maturity of the debt and
stoppage of the persistent attrition
erage

the Investment Series B bonds.

on

Also, debt

would

the

of

hands

be

retained

nonbank

in

investors.

hold

ing

the

the

and

the

investors

of

far

the

as

cerned

purchasers, and
Treasury is con¬

the

bonds

would

remain

outstanding and the longer
maturity

That

would

is, if the

be

aver¬

retained.

issue of longterm bonds were sold
by some in¬
vestors, the only market would
be

other

vestors.
made

feature
1 This

of

long-term, nonbank in¬
The

new

bonds could be

nonmarketable

period,

ments

new

five

say

would
figure

includes

retirement

decrease

of
a

on

for

years.

$7.3

small
death

billion
sum

cf

a

given

Such
the

a

at-

retire¬

growing out

holders.

encouraged

likely

have

to

serious

the

might

new

im-

or

techniques

which

bonds?

to

under

sometimes

has

to

the

and

more

sell

savings

competition with equities
only this, but the $38 billion
0f e
bonds outstanding are demand obligations for the Treasuryancj p0se ^he threat of a big cash
drain

under

tions

inflationary

Therefore

condi-

is vital

it

be

made

the

to

dyings
jjne

bonds

wjtb

bonds

on

kept

in

if

continue

to

%

<

rate

rates

smaller

psy-

without

be

must

other

are

end

an

inflation

chology of our people
Beyond this
it
ffoes
saying that the interest

the

to

savings bond program that

to

these

appeal

investor.

It

has

been

argued that the sale of

sav-

jngs

bonds

sensitive'

is

comparatively

interest

to

rate

but

the

jng.

evidence

the

is

in-

trends,

Here again the basic

induce

convinc-

not

way

to

investor

individual

to

purchase savings bonds is to
interest rate in line with

an

ket

pay

mar-

conditions

/r7X

ou

(7)

bnould the Treasury issue

,,

advisory

Treasury

market

in

groups

of

+

judging the potential market for
Treasury
bonds. Assuming that

reasonably accurate estimates

(or the

interest) is tied to
some Prlc® index such as the
11?dex of consumers prices.
In
vl^w ot "je depreciation in the
value
the dollar which has
occurred in the postwar period,
f/1 +1/1 view °* the possibility
there may be more mflaaon
a"^ad, support exists in some
,

_

ca i

^ond.

be made of the potential market
for a long-term bond at any given
time and at a particular rate, it
should be possible for the Treasury
to be specific in advance
about allotments to savings institutions. This does not mean that
the Treasury would alwavs be able
to announce a definite allotment,
but it should be able to do so within a narrow range. Then, if sav-

?,rs,f £

?h»'tSsnoh7

It is argued tha such a
,7?

'

7„,",k

If. r'

the

bond

government

market.
We believe it would be

mistake

far

the

caiam-

a

Trea~urv

tous mistake for the Treasury
to introduce a purchasing power
bond. This would be tantamount

ings institutions could enter their

to

subscriptions

struggle to halt inflation. If

with

high

a

u,

therefore help greatly to
broaden

degree

an

admission

of

defeat

the

in

gov-

bond

available

Financial

in

the

are placed on an
and lf they knew in advance that "escalator" along with wages, an
could

be

made

on

a iimportant

fight

be achieved.
What

(6)

the

prove
,

.

in¬

of

life

officers

have

sometimes

government

sales

net

to

done

im-

years the u- shave lost ground

when

past

inflation

temporize

with

,

a

Outstanding

,

,

Year

a

Moving into

Moving out

maturity

of maturity

year

38

mo..

Total

class

138

class*

38

63

Certificate—12

«

100

A tided to

c!a:r: by
new

issue

100
—

.

«.

_

38

138

Bonds and notes ma¬

than

.

year___

12

years.—

48

years.—

20

10

to

15

years

the

15

to

20

years

are

Within

con¬

1

12
«...

20 years

reduce the volume of sales of

for

15

10

over.

12

Total bds. & notes

marktbie.

debt

—

12
i

8

4

1

2

3

1

2

1

1

1

—

A

■

Tot.

—

4

3

1

——

\

the market with

a small minority
but actually the
might well be to

and

.

«...

I

12

'

availability of a tap issue
would help to broaden the market
for long bonds. It might improve

-

turing:
5

to regard

to

...

,

each

25

Bill?—-3 month

10

that

not

purchasing

Maturing

beginning

Public Marketable Debt

to

be

A

billions of udollars)

to

reason

govern-

and

a purchasing power
of bond would undoubtedly enhance

means

1

A

be

savings bonds Moreover,
as

5

effect

the

several power bond would be temporizing.

government long-term issue. On
careful study, it is doubtful that

purchasers,

it.

Hypothetical Federal Debt Transactions During

a

overall

for

will

were

more

bonds

they

fight

-i

*

During the

to

savings

of

fronted at irregular intervals with

case

support

inflation

ment must redouble their efforts

be

can

0

for

for

moral

against

^vantages of a tap issue would lost. A11 branches of the

at

that if a tap issue
available, they would place

come

it

bonds in

narrow

improved

be

suggesbeen
made

Treasury should have a
issue of a long-term mar¬

would

"ex-

the

inflation

control

find

difficult

more

analysis by the Treasury. Progress
has
been
made
through
the

The

indicated

of

$300

Not

deferred ba:is, all of the apparent

the

companies

is

would

step

found

be

can

payment

outstanding

any

market

government

funds

Unless

continuing

will

Treasury

amount

to

col-

cxLfl^or'improve theCm"rkct

"tap"

Ways

bonds?

there

proved

tion

threat.

pectation of
is
brought

have

may

be

finane-

otherwise

Are

(5)

at

amount paid at maturity

encouraging

of

hold

governments.
of

investor

sold

vestors.

bonds to take place there

care-

offerings, in-

might

been

interest rates.
Regard¬
this, in order for sales of

new

the

securities

to

ketable

would have to be

be

which

future

of

course

less

bonds

new

cash

advantage

bonds

that

the

Treasury proregular limited

with

would

method

Whether this did take place
would depend on the interest rate

on

the

for

lateral

investors

gages.

explored

cas^^offeHng^XThusf7his

have

would

that

make

those

undoubtedly be argued
receiving the new
bonds, on which presumably there
would be little or no market loss,
would thus be in
a
position to
dispose of them to acquire higheryielding corporate bonds or mort¬

It

of

exchange

estimated

issues-1 of ^outstanding of certainty about the allotment ernment bonds

certain

vestors

market.

the

offerings,

bond

the

of

various investor
light of market

the

conditions.

bonds

Treasury

be

the

with
in

groups

offerings

terms

and

v)ould have to

cised, and

acquire a marketable
with a yield in line with the

The

long

loss

exer¬

cash

for

is

year

again, the spread of infiationary
psychology
pose«
a

uncertainty about allotments. One

on

year

mentioned the Treasury

bond

other ratio)

a

1959

a

bonds (either savings bonds or
marketable bonds) in which the

to

some

above

for many reasons, the most obvious being that in the example

B

(or

Similarly,

9%

are

Here

important

is

trend.

6%

are

with

a

this

on

limits,

May

ago,*

year

million.

need only for $1 billion.

bO

employed successfully by
Treasury to aid in building

would

within

least

through

also with a worsening trend,
cash basis, the net drain on
the
Treasury
of
an
excess
of
redemptions over sales of E and
H bonds in the second quarter of
On

would
reduce
the
Treasury's
ability to control the size of an
offering. For example, let us assume
that the objective of the
Treasury at a particular time was
to sell an issue of $1 billion of a
long-term bond. If it were certain
that the market for the bond with

given the right
exchange onO Investment Series

would

vestors

tween

funding.

What

competitive inevery two bonds

30-year bonds at

Sales of E and

concern.

bonds

ago,

allotments
such
a
step

vance

of

country.
The
has
become
a

1959

redemptions

institutions know in advance that
they would be given a definite
allotment. Every issue of a long
bond
by
the Treasury
sets
in
motion
a
guessing
game
as
to
what
the
allotments
will
be.

is

this

in

behind
a
worsening

investment
in regard

their way into bank Wrong guesses are bound to proThen the Treasury will duce
unnecessary
disturbances
the very difficult subsequently in the market. There
task of selling new cash offerings seems to be good reason, therefore,
of longer-term bonds to replace Jor miniminzing the uncertainty
them if a sound debt structure is about allotments. The big diffito be achieved.
Through advance culty involved in giving out ad-

funding, this portion of the debt,
now
in
the
hands of long-term
nonbank investors, can be kept in

in

record

with

faced

oe

Thursday, September 3, 1959

.

savings

edly find
portfolios.

seem

advance

age

Serious consideration should be

given

Series

be

to

so

payment of commissions to brok¬
ers

this

for

to

expand investment
by individuals in long-term mar¬
ketable

compensate

under conditions such as
prevailed in the capital mar¬
in recent years, the Invest¬

ment

to

restore

to

period of time by reinvesting the
funds at a higher rate of return.

basis.
With

able

were

themselves

government

buy

to

Throughout

notes.i

period, the sale of the fivenotes involved a loss, but in¬

year

forward

Treasury

V/>%

year

commitment
technique, whereby life companies
using

2y2s

the

and

and

that

.

present if nothing better could be

savings
institutions
and
other
nonbank investors was about $1
billion,
then ah
advance announcement of 1007c allotments
to nonbank investors would be
The danger is that if
March of this year, nearly $8 bil¬ Treasury might offer a cash issue possible.
of a long-bond, and at the same
such an announcement were made
lion remained outstanding, so that
time permit investors to exchange *n advance, and the total nonbank
in the intervening period $7.3 bil¬
(par for par) certain other issues subscriptions
greatly7
exceeded
lion had
been retired.
In other
for
the new cash offering
in a expectations, the Treasury would
words, holders of $7.3 billion of
fixed ratio to the cash purchases lose control over the size of the
these
bonds
had
exercised
the
made. For example, the Treasury
issue. Having such control, at
right to convert into
the five-

commitments relative to their cash

flow.

1965-70,

June

of

earlier, these bonds, re¬
mit
the
Treasury
to
do
some
1951 in ex¬
extending of maturities in this
change
for
Victory
bonds,
are
maturity range.
themselves
nonmarketable,
but
The treasury might find it usethey are convertible into 1V2%
ful to consider the desirability of
five-year notes which are mar¬
ketable.
The total amount of In¬ combining an advance funding operation with a cash offering of a
vestment
Series B
bonds issued
bond.
That
is,
the
was
$15.3 billion.
By the end of long-term

period of time. At any given time,
life companies have a backlog of

fore,

2V2s

ceived by investors in

extended

an

be

would

As noted

these

commitments

it

by

Series B, 2%% bonds of 1975-1980.

make

takedowns

and

meant

helpful to consider the Investment

normal

in corpo¬
and mortgages involves

rate bonds

loans

bear in mind
process
of

what is

funding,"

"advance

investing

company

measures.

illustrate

To

investors.

individual

and

question of whether the U. S.
should
not
undertake

similar

investors

the

into

of more than 40% of the Ca¬
Government
direct
and

year

com¬

issued

rates, and

a

with

ties.

program

into government
at

able

be an ap¬

The

ing?

in¬

company

insurance

which would be suitfor advance funding.
There
wide range of possibilities,

issues

in the flow of
government securities.

increase

(4) Should the Treasury under¬
take

will naturally flow
bonds if they are
competitive
interest

funds

pany

life

Life

vestments.

hence there should

funds

amount.
objective which

basic

the

not, of course, the only Treas-

ury

is

bonds

B

Series

1966-71

preciable

principal

the

of

is

The investment

cember, 1964-69, theAU/jjs of March

and

responsibility to strive to earn the
highest possible return on policy¬
holders'
savings consistent with
safety

were

are

outlet

10

as

legal investments unless there
some means of selling them,

be

here, there would be a greater
willingness to realize capital gains

time, the officers of
life insurance companies have the

This

life

icr

and possibly other inwnether ihey would

companies
vestors

exchange and

questions

xaise

gains because of the tax.
If
the tax were reduced as suggested

inflation.
Certainly the
life insurance policyholders have
a vital interest in
a sound dollar.
the

loathe to realize cap¬

are

ital

against

At

It is well known that

years.

investors

in the fight

ernment bonds to aid

government securities for

specified period such as two-

some

that
life
purchase gov¬

self-interest^ suggests

woum

.

117

180

12*

150

22

22

12

22

22

150

long
this

investors

might

the tap bond

as an

*Amount outstanding in each

class.
within each class.
of

years

in

the

Assumes

maturity clas?, divided by number
even distribution of maturities

on

.Volume 190

Number 5878

.

.

The Commercial and Financial Chronicle

.

(949)
the

expectation of inflation and
could thus seriously aggravate the

long-term

problem.

>

ing

Federal

Reserve

Open

Operations and

bonds

government

buying long-term bonds
short-term

by

and sell-

securities?

ready

contributed
to
increase in short-term

Moreover, there

sharp

a

other

are

dif-

ficulties involved
in
an
open
trous consequences of a
pegging market program of buying longoperation nonetheless argue that term government securities and
Many who recognize the disas-

Market

Treasury

Financing

the

The decline which has occurred
In the prices of Government bonds

Federal

duct

its

Reserve

should

con-

of

There

securities.

government

are

who contend that

some

the Federal Reserve should return
to the practice of

"pegging" the

prices of government securities

as

it did during and after World War
II until the Treasury-Federal Re¬
serve
"accord"
in
March, 1951.

There
that

others

are

who

recognize
operation would

pegging
not be in the public
interest, but
at the same time
they contend
a

that from time to time the Federal
Reserve should purchase longterm

bonds

government

in

order

to lend

stability to long-term in¬
terest rates, and at the same time
sell shorter-term

government

curities if such sales
to

prevent

mercial

required
expansion of com¬

an

bank

are

credit.

like to set forth
on

se¬

We

would

views briefly

our

these two questions.

Should

the

the

resume

government

disastrous

Reserve

of

bonds?

prices

of

After

the

under

the

experience

pegging operation prior to March,
1951, it is difficult to understand
support for such

proposal.

a

We

certainly oppose a return to peg¬
ging of government bond prices
because it would put our country
on
the road to ruinous runaway
inflation. The reason is clear and
well

understood.

Reserve

As

the

purchases

securities, it adds to the
of

the

tem

reserves

commercial

banking sys¬
thus permits a multiple

and

expansion
demand
six

Federal

government

of

times

Thus,

a

commercial

deposits
the

in

the

supplied.
operation con¬

pegging
of

of

reserves

verts the Federal Reserve

"engine

bank

ratio

inflation"

into

contribute to

pansion
of

our

of

uncontrolled

an

principal

running

to

the

the

Federal

support

Corporate

to

the

Reserve

prices

of

Financing,

1947-1958

Corporate

1947

1948
1949

1950
1951

1954

1955
1956

1957
1958

1.2

3.3

1.3

4.6

2.0

1.5

3.5

3.6

2.3

5.9

4.9

2.4

7.3

4.8

1.9

6.7

3.8

1.8

5.6

4.2

1.9

6.1

4.7

2.5

7.2

7.1

___

2.7

9.8

___

___

___

___

6.0

___

Components
because

2.1
may

of

8.1

not

government

add

to

To the extent that open-market

purchases

of

long-term

securities

ment

of

sales

would,
expansion
of

that

the

be

no

bank

operation
of

the

of credit and

would

presumably
have had any influence

not

the

level

general

So far

rates.

interest

of

interest

as

rates

are

concerned, the principal effect of
open market purchases of longerterm

government

matching
securities

would

securities

sales

.

,

of

and

short-term
to

be

alter

the

....

interest rate structure
ment

on

govern-

securities. That is, the pur-

chases
.

of

,

long bonds would

,,

,

to make the
than

lower

,

,

yields

tend
,

such bonds

on

they might otherwise

have been, and the sales of short,

.

,

.

,

,,

term securities would increase the

supply of such securities and thus
make
•

short-term

u

,

yields

.

,

government

].

t

,,

higher

than

,

,

,

might

wise have been the

other-

open-end

investment

com¬

of

Capital

Funds in

Government Financing,

(billions

of

costs

to

the

short-term borrowing
are very quickly translated into a
higher
service
charge
on
the
on

debt

because

of

government

in

one

year

taking

Year

is

is

on

not

in

order

so

much

short-term
short-term

Net

Uses

of

1947

Editor

Joint

1950
1951

1952
1953
1954
1955

1956
1957

to

hold

of

the
con-

its financing

issues
issues

has
nas

and
ana

alai

in

Funds

Selected

Pension

Stocks

efnments

0.1

0.2

0.4

0.3

0.2

0.3

0.1

1.0

___

02

0.9

___

0.5

•

In

Financial

.

„

,

,,

„

before the
Mr. Conklin

appearing

Committee

Sherwin C. Badger,

Vice-President,

New

Research,

Life

Insurance

England

Association

Associates Investment
of

offering

Aug.

$50,000,000
Co.

was

made yesterday
(Sept. 2) by an
underwriting group
headed by

Salomon

&

Bros.

and

Hutzler

Lehman Brothers. The debentures

priced

are

at

100%

and

accrued

0.1

Associates Investment, the
fourth largest automobile sales
in

company

States> win use net Proceeds from
issuance of the debentures to in-

notes

due

within

The debentures

one

year.

not redeem¬

are

aries

prices

at

to

ranging from

100%.
engaged

are

its

subsidi¬

primarily in
financing and

*

0.3

—0.3

1.3

___

1.3

automobile

—0.2

1.0

•*

Uses

of

Funds

in

sales

United States and Canada.

ing the

consolidated
year

1958

income

net

income

was

dur¬

$127,075,000

$17,171,000.
During the six months ended June
30, 1959, total income amounted
to $62,512,000 and net income to
$8,644,000.

Selected

1947-1958

Resi¬

dential

2.2

1947

2.3

Mtges.
1.1

1948

1949.
1950

2.4

8.0

3.1

1953

7.8

3.5

1953
1954

__

1955

—

1954

3.5

4.2

1955

2.0

3.5

1956—__

—4.1

3.3

1957

—1.7

4.9

1958

5.9

__

__

__

1956
1957

2.S

—1.6

*

—

4.1

—3.3

0.3

2.5

—1.5

0.2

1.7

—1.8

0.1

2.5

2.5

—2.4

3.0

—0.8

was

$50

Charles L.

2.6

—0.4

0.1

2.0

2.0

—0.8

0.5

2.7

1.8

—0.5

0.2

1.9

—1.0

0.2

1.2

2.4

—0.5

0.1

2.2

million.

—0.2

in Vietor, Common,
Buffalo, New York,
August 5th.

*

0.3

in¬

-V '

'

.

House Ways and Means Committee to
ceiling on long-term Government bonds,
level, could have considerable effect upon both
the

rate

market

and

the

capital

markets

in

the

not

>

distant

limit

-

The fact that the

$7 billion of

new

money

the interest rate.

on

Under the present and foreseeable

y

con¬

ditions in the money market and the
capital market it is evident
that the Treasury cannot sell bonds to the
public with only a 4% %

,

coupon
rate.
Accordingly, the near-term money market will
have to be used by the Treasury to
get needed funds from, as well
as for refunding purposes.
This, along with the demand for money
for
fall
and
winter business,
means
that the money market

will

move

to

higher

levels unless some of the restrictions
bit by the monetary authorities.
the amount of change that may come about in the

up

relieved at

are

least

However,
market, if

money

a

any

at all, will foe dictated in

no

small

measure

by the length of the steel strike since this disagreement between
labor and management is going to have a marked effect
upon the
economy, and the money and capital markets will certainly reflect
what takes place in the economic system.

\

Trend Is Toward Higher Interest Rates
Even

though the short-term money market has been relieved
its pressure by the offering of a smaller amount of
Treasury bills, this is not being looked upon by most

bit

a

;

of

:

market followers as more than a temporary breathing
spell unless the Federal Reserve Banks are inclined to give some
help to the money market.
So far some minor purchases have

money

made

of

Treasury

these commitments have not
market from getting more
forcibly illustrated in this week's
rise in the prime bank rate, and in other
money rate levels, all
of which suggests that an upping of the discount rate is a virtual
certainty.
done

than

more

This

prevent

bills,
the

condition

but

money

was

Commercial banks shiftings from Government issues in order
to

get

of

1964

loanable funds, along with sales of these obligations by
savings banks, mutual funds and certain pension fun^s so as to
buy higher yielding corporate bonds, has kept the pressure on
most sectors of the Treasury market.
Profit taking, in the 4%s
took

vestment

these

down

notes

to

about the

issue

price

and in¬

buying again appeared in this obligation.

World Bank

passed away

Pratt

is

The
the

United
issue

Aug. 16 at the age of 65. Mr. Pratt,

Co., New
of

stitute.

York

the

States,

of

City,

Board

was

of

of

United

a

&

Chair¬

Pratt

In¬

arranged
outside
the
$100 million
dollar

States

bonds. The sale was made

by pri¬
vate placement
with 62 institu¬
tional
investors
in
34 countries,
indicates

ing

of

for

World

The

further broaden¬

a

international

the

market

bonds.

Bank

bonds

new

will

known

the "Two Year Bonds of

1959,"
4%%,
payable semi-annually, with the
first payment due on March 15,
1960. The issue is dated Sept. 15,
1959, and matures Sept. 15, 1961.
as

will

and

carry

Keen interest

issue

new

received
the

and

were

haif

About

outside

the

in

cluded

United

States

million in

$310

the

of

United

bank's

out¬

the

In¬

States.

holdings

of

these

investors,
in
addition
to
non¬
dollar obligations, are some $650
million

of

its

of

of

the

the

total

dollar

bank,
U.

S.

or

bonds

and

about 40%

dollar

obliga¬

tions.

Vickers, Angelus & Daly

Opens in New York
Vickers, Angelus and Daly, Inc.

shown in the

has

subscriptions

30

than

double

institutions

that

previously bought bank
obligations and from buyers in
eight countries where bank issues
been

in

some

standing debt is held by investors

was

more

not

not

and

guilders, sterling and Swiss francs.

total

principal amount of bonds to
Requests for bonds were

had

$1,950,000,-

interest of

sold.

from

about

Belgian francs, Canadian dollars;
Deutsche marks, Netherlands

notes

be

to

denominated

dollars

has

Bank

entirely

held

included

before.

Pur¬

been

formed

with

offices

at

Broad

St., New York City, to
engage
in a securities business.
Officers
are
Barry M. Angelus,
President; Sydney G. Vickers, Jr.,
Executive Vice-President; Gerard
P. Daly, Secretary-Treasurer. Mr.
Angelus was formerly with Keller
& Co. Mr. Vickers and Mr. Daly
were

with Vickers Brothers.

central

banks,
accounts,

special
privately owned commercial

government

senior partner of Charles Pratt

man

World

sale,

and
away

amount

000, of which about $1,640,000,000

Bonds Outside U. S.

chasers

passed

in Sept. 1954, the total outstand¬
ing obligations of the World Bank
will

had

Jr., partner
Dann & Co.,

Richardson Pratt
Richardson

Privately

Places $100 Million

received

Gurney, Jr.

Charles L. Gurney,

•

1.5

0.9

—

'Under

1.7

2.5

2.7

1952

i

rities

very

not

are

Treasury will have to borrow some $6
by the end of the year means that
under the existing circumstances the
Treasury will have to obtain
these funds entirely in the short or intermediate-term
markets.
In other words, the Treasury cannot
go out more than five
years as far as maturity is concerned in its efforts to raise new
money because, beyond that time, the Government has a 4Y4%

be

Secu¬

Govts.

1.4

1951

1951--

U. S.

Bonds

2.7

...

>

1952

Local

Corporate

1.6

__

.

i

i

future.

to

insurance incident to such financ¬

ing, principally in territories east
of
the
Rocky Mountains in the

0.9

4%%

and

and

company

0.7

1.5

the

United

the

0.7

1.7

___

dealers

interest.

1.2

___

and

any

of

interest

money

5%%

1979

1,

State &

3.1

above
the

refusal

the

restrictive.

Debentures Offered

traders

Treasury Must Stick to Short-Terms
The
raise

weekly

Company, New

fairly important

time, but it remains

•

of

City,

doing

since

to

higher yields that have been available in short-term.
Treasury obligations continues to attract funds that have to be
invested in the most liquid issues.
On the other hand, the most
distant obligations are still
being liquidated with new lows for
the year being registered in certain of
these securities.

of

^°mimttee Life Executive Vice-President,
and Insurance
iNew York

market"

time

The

Company, Des Moines; and Richard K.
Paynter, Jr.,
Chairman of the Finance

The

0.5

JR.

positioning of these issues, especially
all-time lows are being made in
many of these obliga¬

new

pm.ej'?a» vew pYoi:!i ?,tyiL ^obert. .JPatrick,
Vice-President,
Bankers
Life

York

order

be

Mutual Life Insurance Company, Boston;
J. O'Leary, Director of Economic

103%%

(billions of dollars)

—0.4

to

James

0.9

___

Companies,

4.3




Note:

s

Economic

company

Investments of Life Insurance

—4.1

-

more

*

1.0

___

___

Obligations

>

would

able prior to Aug. 1, 1964, on and
after which date they may be re¬
deemed
at
the
election
of
the

0.2

0.1

0.4

___

0.1

0.4

„_

___

State & Local

-•

w

accompanied by

was

Total

1949

8.0

it

crease
or
maintain its working
capital but will initially apply the
proceeds to the reduction of short-

iqkq

1947-1958

*Under $50 million.

1948

—

,

due

solution.

real

0.3

___

1948
1949

!

•

...

term

i

!

securities,

government

and more pressure to move toward
pegging the prices of governments, with all the fatal consequences this would involve,

Investment

true when

Bonds

Year

1

out the entire maturity range of
immediately be exposed to

debentures

(billions of dollars)
Year

1.4

1950

should begin to conduct its

Associates

long-term governany

especially

centrate

—2.5

t

serve

open market operations through-

mature

Treasury is being obliged to

1947

I

J1 Jbe service charge

Public

less. Accordingly,
which
will
raise

rates

yields

ments

1947-1958

Governments

to

Reserve would wind up holding
the long-term government
b°nds' a"d short-term interest
^tes ■would be driven to a very

billion

$76

securities

or

steps

short-term

dollars),

U.S.,

order

same stabilizing effect,

Lw

clined

been

Net

Uses

in

^arried to the end, the Federal

and

panies.

!

~xert

shorts)

case.

interest

Corporate stocks exclude issues
of

of

I" addition, if the Federal Re-

not have affected the total

would

would have to increase its purchases of long bonds (as well as
sales

Treasury issues from

"an

tions.

not

had

Federal

Governments

on

CHIPPENDALE,

some

sales of
much

and

mortgages,

Reserve

supply

money
—

T.

The Government market
continues to be in an uncertain posi¬
as a whole very much on the
limited and pro¬
fessional side.
To be sure, there have been

since

artificially high prices. The result
would be that the Federal Reserve

and

money

JOHN

tion, with interest

on

?n the Federal debt much higher
m the process because of the huge
v°iume °t short-term debt,

the

this reason-the fact

For

supply
on

this

increase

no

supply.

by

Governments,

course,

commercial

from

reserves

thus

of

govern-

matched

were

short-term

there

1958

rounding.

bonds,

yields

term government securities at the

its

securities.

4.2
5.7

___

Re-

offsetting

an

amount of short-term

Funds,

1.1

___

Federal

r„n1017

3.0

___

the

reserves,

could have sold

serve

Total

4.7

___

___

totals

to prevent an
unexpansion of commercial

£vesSts of™orate

Stocks

1952
1953

needed

bank

Corporate

Bonds

Year

tent

wanted

finance

(billions of dollars)

the

as

state and local government securities moved upward in response to
term interest rates generally. It heavy
demand, investors would
is further argued that, to the ex- be encouraged to dispose of long-

in
in

Capital Funds in

Thus,

market

This

the

Uses of

in

the

down
more

money.

Should

lend

same

printing

presses to provide more and
paper

ex¬

longer-term
stabilizing this
and long-

aid

of

Treasury

source

the

to

it

supply-demand

money

as

corporate

purchased

issues

sector

Federal

the

deposits. It amounts

thing

have

Higher

forces the monetary authorities to

operations

entire

present.

an

because

the

clined, the Federal Reserve could

changed

Federal

pegging

open-market

throughout

BY

selling short-term securities. Such

purchases would tend to hold the
range
of prices of long-term governments
during the past year has revived government securities—long-term at an artificially high level (or
the
argument that
the
Federal as well as short. Thus, it is
argued, the yields artificially low) during
Reserve, through open market in recent months, as the prices of a period of tightening conditions
purchases,
should
support
the long-term government bonds de- m the capital markets such as at
prices

Our Reporter

rates,

25

George Nelson

,

Nelson, proprietor of
George
Nelson
Company,
New
corporations.
On completion of the current York City, passed away Aug. 12,
at the age of 66. Mr. Nelson had
transaction and after allowing for
retirement of $50 million of five- been in the investment business
banks,

year

insurance

2%%

bonds

companies

placed

and

abroad

George

for 45

vears.

r-

..

The Commercial and Financial Chronicle

Thursday, September 3, 1959

.

Products, Inc.

DUTTON

BY JOHN

S.

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

third

the

is

a

a

which on Sept. 3 of¬
218,333 shares of Speedry
Products, Inc. class A

Chemical

price of $6,625 per
total number of
offered 51,667 shares are

at

stock

being

series of articles that are

share.

tionary in the study of the relative attractiveness of various
securities and the balance sheet and income account items

the

Company

These articles are not intended to be all
more as a "Do It Yourself Kit" that
might become the foundation for further study if desired.

thal,

shares

but to

with

connection

In

Year~

obser-

the

well

...

.

izations,

much

and

known

activity

of

conversion

materials,

raw

$goO,000 but let us

or

not

and

goods,

states, and for the estabof a plant in England

will be made

the products

this and assembled for the Euglish as

1958

quick well as the European markets,
assume that The balance of the proceeds will
the business

between the two years

that
public utility companies, railof

sale

2

had the same net

company

distribution throughout the midiishment
where

and

1957

and

where its and assembled for
products will be

$800,000

ratio

current

the sale of

manufactured

1,600,000

r~

of

f

proceeds from

western

______

i

manufacture

the

is

quick

Net

principal

tne

wnerein

'400,000
$80°,ooo

current liabilities.

the
discussed
"current ratio" we are referring
to the ratios of business organthat follow regarding

vations

for

chinery and equipment in Chicago,

v

current assets^

Net

.

Director

and

51,667 shares of stock will be
used
by the company for ma-

ness can he shown by a simple
comparison such as the following:

Assets

Current Liabilities

jo

be available for general corporate

improved and manageadded to inventory in the

outlook

ce™*

current assets (other)

such

other

and

organiza-

investment

where the fixed

tions

large, and the need for current

workmg capital

tories, receivables, and

ratio,"

The "current

^tory

it is now

as

in

publicly
noticed during the last few years
of the nineteenth century By 1908
known,

commonly

net inventory

_

____

that the
ratio of current assets to current

i.2i to l

2,625 to l

ratio

current

p,

_

ii

•

n

i•

i

i

nf

■,

for

assets

safety

Added

was^ not

later accepted

was

receivables

when the ratio of cash,

securities was at

marketable

current

j

this day,

liabilities. To
and

balance

a

one-for-one ratio of cash,
and
marketable
seana
marketable
se

a

rpppivahles
receivables

accorded

liabilities

of

double

a

.

♦Trevor Currie

Trevor Currie

♦Richaid A. Wehrecke

Burton J. Vincent & Co.

♦Joseph D. Krasowich

Gregory & Sons

New

Bache & Co.

St. Petersburg, Fla.

Sidney Jacobs Co.

New

York, N. Y.

New

York, N. Y.

Troster, Singer & Co.

New

York, N. Y.

Troster, Singer <£: Co.

New

York, N. Y.

Wallace A. Boyd

re-

♦Thomas Greenberg

wherein

nate

is

sition

in

pos-

•

jn

rising market,

a

ahlitv

nSSSshrinkag°en in' inventory to
inv";
shrinkage
in
rnmnanv
company

overall

securities,

thp
the

an-

«samp
same

50%

least

at

rash
cash, mar
mar-

in
in

actjpts:
assets

itc current
its piirrpnt

ketable

hivinn
having
and

ratios

than

etc.,

debts,

bad

values,
nthpr
otner

good

and

re-

opi^ahlP«
eeivables-

r
r

The Current Ratio Is a Generality
as
As

continue
continue

we

will

of articles we
nrovide
provide

ratios
ratios

credit

the

analvst
analyst

than

much
much

ratio

overall

further
turther

by

this

of current

current liabilities.
starting
g

of
ot

coincom-

noint ,
P

offer

that

soundness

provided

is

that other

company's progress

parison of a
and

series

tnis
this

in
see

standards
standards

simple

However,

rertainlv
c
tain y

nn
no

to

as

a

mm
com-

York, N. Y.

Gregory & Sons

New

York, N

♦Maurice Hart

New York Hanseatic

Corp.

New York,

N. Y.

♦Walter F. Saunders

Dominion Securities Corp.

New York,

N. Y.

is

better

and

rood

re-

mfvlompanv

of

to

pass

such

a

com-

by and miss the rare op-

Denver, Colo.

Thayer, Baker & Co.

Philadelphia, Pa.

♦Barney Kiemam

Carl Marks & Co., Inc.

New

♦Leonard Friedman

Boettcher & Co.

Chicago, 111.

than

rarely

cit,

with

or

a

working capital defi-

inadequate current assets of

quality should qualify for further

for

cloge

tQ

thp

^

eyeg

ThP

hpst

and

mirapl^

'

happens

'
Harris

I In Lam Offir^

1><ew rtarris, Upham Uttice
MIAMI BEACH, Fla.

New York,

Allen Investment Co,

Denver, Colo.

George Warner

Allen Investment Co.

Denver, Colo.

♦Joseph R. Dorsey

Bache & Co.

New York, N.

♦Earl L.

Reinholut & Gardner

St.

♦

study.

The

matter

in

which

this

pffprf thp fieffect the

nancial soundness of

a




given

busi-

Hagensieker

JohiTW. Bunn

York, N. Y.

Wm. V. Frankel & Co., Inc.

New

York, N. Y.

Stryker & Brown

'-"v

♦Elbridge H. Smith

New

York, N. Y.

W. E. Hutton & Co.

^y.

Moriarty

New

Wm. V. Frankel & Co., Inc.

V

♦Joseph Donadio

♦James F.

Y.

Louis, Mo.
Louis, Mo.

St.

Stifel Nicolaus & Co., Inc.

.

CincinnatLOhio

J. V. Russell & Co., Inc.
J. Earth & Co.

•Frank J. Ronan

'.r-1?;

-

Angeles,

Los

Angeles, Calif.

New York Hanseatic Corp.

♦Robert M. Green

Los

Pledger & Co,

♦M. A. Cayne

Wm. H. Elliott

Cleveland, Ohio

New York, N.

Calif/
Y.

,

♦Mr. & Mrs.

A

fate of one share for each 50c face

fendered £or cancellation (no in-

—

Securities Offered

such

debentures

sur-

Sea

so

corporabon reserved the right to

of

e.,

complete range of
services including one

brokera§e

a

$3.33 per

D;

'

AMARILLO, TEX. —Bruce JR.

ever

in the State of Florida.

Juniper.

are

per

Industries, Inc. is en¬

gaged primarily/ in the business
of manufacturing aluminum awn¬
as well as aluminum carports,
patios and screen'.booms. Its man¬
ufacturing facilities are in Miami,
Florida. The underwriting syndi¬
cate
is
headed
by Michael
G.

ings

Kletz

&

Inc.- and includes
Johnson and Stanley

Co.,
&

Roman

& Co,.-

Heller

branch

Templeton has opened a
office

at

12345

Ventura

Boulevard under-the management
of

Martin

J.

Loan

Home

196*0 was

15,

June

Sept.

on

5%

Banks

notes dated Sept. 15,

due

and

Federal

by the

1

Bank

Board, through

Smith, fiscal agent of the

Everett

banks,

and

notes

security

of

group

a

The

dealers.

are

priced

at

100%.

offering

of

the

will
of

retirement

maturing

net

the

of

Part
the

on

proceeds from

applied

be

to

notes

$96,000,000

Sept. 15. The balance

proceeds

will be

•

used to

provide additional funds to mem¬
institutions

ber

Bank
for

mand

STUDIO CITY, Cal.—Mitchum,
&

1959
made

Loan

Mitchum, Jones Office

Jones

consolidated

$181,000,000

of

Loan

the

of

to

system

Home

meet: de¬

,

V,

;

offering
Home

con¬

Common stock aft
share as of Sept. 1, 1959.

Sea View

schools,

Bruce R. Miner Opens

$3.50

-

into

vertible

shopping centers,

3,000-square-foot fa-

new

cilities have

The

stock/; at

debentures

common

share.

state of Delaware on March 13,
1959 for the PurPose of engaging
111 the general construction business' with emphasis on institui'.

1969t and 84,000 shares

tures due in

porated under the laws of the

CGnstruction,

issue of $420,000 7%
convertible deben¬

an

subordinated

such debenture holders
le
proceeds will be added

tional

Public
Federal

View Industries, Inc. is of¬

fering

Harris, hospitals and the like, subdivid-

Beach, Florida.

FHL Banks Se!! Holes

Sea View Industries

of

am0unt

f! of the largest and latest model Miner is conducting a securities
Teleregister boards
installed business
from
offices
at
2325

imnortant ratio ran
important ratio can

~

♦John R. Stein

Upham & Co. have opened an ing and developing unimproved
offjce at 1085 Kane Concourse in land, and construction of resitbe
Bay Harbor area of Miami dential
housing
projects
and
The

N, Y.

J. K. Rice, Jr. & Co,

,

pany

York, N. Y.

John M. Trippe

♦Joseph P. Carucci

.

hoDe

Brooklyn, N. Y.
Bosworth Sullivan & Co.

♦John M. Hudson

P°rtunity where new investment lng caPdal of the corporation,
.
,
*
funds and work
ital
orrasionallv
rnrrppf
^ /
y occasionally correct
j
Hancock Inc was inrorand obvious and congenital weakVndl'LULK; mt; was incoi
nesg

11,

♦Bernard F. Kennedy

.

pany

?

Baltimore. Md.

Stein Bros, d: boyce

♦Charles A. Bodie, Jr.

competition and expand its activi^uiduua
. ine 1
lu
nlanned and dpsir- discontinue this, offering to deben^lllf1s in a wen planned and desii
t
holders at anv time after
able manner. No company that is „
/ 4U above-described units
U
J
-u J
-4
this nrimarv ratio" should
a11 of the
!}
primary ratio should h
b
ld without notice to
enlist the confidence of investors.
\r "9rn f1Q, w moui notice to
,•

~Newburger & Co.

♦Joseph E. Smith

Y.

Philadelphia, Pa. .'

♦Kathan A. Krumholz

h

withstand market reverses, face

It

New

♦William H. Gregory, III

Securities Sold

^

Philadelphia, Pa.

Invest-nent Dealers' Digest

P. A. Marcusson

merits current obhgTS,' !erest to surrendered). The
be paid on the debentures

insieht
insight

assets

f

ti

sec„rftie1

of

periods

withstand

to

York, N. Y.

„

Ke.taD^ securities, and good re

much less sound po-

a

panied

nf
ot

,

th

t

predomi-

receivables

slow

sibly

Chicago, 111.

Stroud & Co.

♦James E. McFarland

wherei^hlventorv^nd'pos' asJetl to current liabilities Ind toe ho'd«,s
,the. corporation's the
inventory and
subordinated debentures at 4%

ratio

Denver, Colo.
^

Unterberg, Towbin Co.

C. E.

.

♦Ernest Lienhard

Hancock Inc.

are

„

Fiikins

♦Walter L.

sh0uld be included in the current

,

ratio

'*.•>

.

.

♦Sidney Jacobs

.

.

quick

of

Detroit, Mich.

First oi Michigan Corp.

unit. This offering has been comceivables, and their quality, is iiabilities as notes receivable dis- pitted, all of the said shares havtherefore an important factor in COunted. The ensuing ratio will ing been sold.
_
studying
this
important
basic then be accurate.
The remaining 50,000 shares of
ratio. It is obvious that a comvof* mir„onf
common stock were offered to the
distribution

Security Traders Associa¬

tion, Inc., to be held in Boca Raton, Fla., Nov. 1 to 6, 1959.

contingent liabilityto the current »E four shares of preferred s ock
for• notes re- and one share of common stock
ceivable is added
assets-then
a
similiar
amount at the offering price of $8.50 per

strength.
The

following,.additional reservations have been received for

♦Clarence A. Horn

*

is

measure

current

to

cunties

The

the National Convention of the National

ratl° should als0 include contin- J- W. .Hancock inc. ine /UU,UUU
j
f
t
receivable dis- shares of preferred stock were ofgen9' ; 9
lt^eiVdUie
-th
non
nf the
counted that have been omitted ter«d with Ob,UUU snares oi tne
tbe
balance
sheet
If the common stock in units consisting
iror9 l
,rl®"rf bmieL- 11 ine
f f
chares of nreferred stock

two for one ratio
two tor one rano,

sheet showinc a
sheet snowing a

...

Kenneth Kass, heading an un¬
^nc[
business is conducted derwriting group, which included
without increasing profits such a Palin Securities,
Nassau Securicompany can meet with difficulties ties Service and David Barnes &
in a reiative short period of time. Co., Inc., on Aug. 19 publicly ofjn
case, the deterioration in
fered 200,000 shares of 6% cumucompany's ability to meet its lative convertible preferred stock
current obligations is obvious.
(par $2) and 100,000 shares of
thorough studv of the current common stock (par 10 cents) of
V inorougn siuay or ine current
Hanenek Tnr
Thp 200 000

another.

*or

Fitzgerald & Company.
40 Wall Street, New York 5, N. Y.

SECllRITY TRADERS ASSOCLATION

NATIONAL

added interest charges,

there ,are

liabilities

and

jncurred

cog|.

that

type of business

one

and

_and

expanded it
what was a
relationship between

current

not adequate
for the increased

profit margins
compensate

,

investigation

discovered

satisfactory
the

.

analysis

investment

A_s
credit
was

'

.

Committee,

c/o

was

«

■

TISCH, Chairman,

National Advertising

:

ing, stamping and stenciling inks

In this example the expansion created for use with manually opinventorv
hnspd linnn the
erated special devices.
Produc01 inventory was based uP°n
ODerations of the comnanv
assumption that prices would ll°n operations oi tne company
fnr
romnarTne rieerees of «1 rise a"d inveniorv could he ac- are also carried on andAlbuquerthat a profitable turn- Que» New Mexico, in
for
comparing
degrees
ol
sol
Chicago,
vency.
Many
businesmen
still over
inventory coum oe ac
i
look first at this ratio when in- complished. As is sometimes the
vestigating the credit standing of case> 9n increased volume of busthnoinP5c
ness 1S not always forthcoming,
(J. W.)
„n„ijt

.

^

Tiscb

„,

liabilities should be about 2l/z to
f/2
1. For many years the ratio
of
twn in one wa« thp standard basis-

.

F.

#£'-♦.

-

in the

application of guch inks The com_
pany
believes it is the largest
$4so,ooo $h350,ooo manufacturer in the United States
1,050,OUT)
l,y50,Uvv
400,000
1,600,000
in the field of specialized mark.

written

author had

one

inventory

I^et

other devices used

and

F.

~

,80^

eoo-ooo

was

ALFRED

Speedry

ers

----------

Alfred

Inc., who have both contracted for their usual half page space
the N. S. T. A. .Year-Book Convention Supplement.
This steady

support of N. S. T. A. is most appreciated.

purposes.

(to carry invenmeet Pa.y~
rolls) is not as heavy as that with
the former type of business con-

roads

jfc

Harry L. Zeeman,

Co.

Chemical
Products,
amoun£ 0f $1,200,000, and to ac- inc., with its principal plant and
COUnts payable by a like amount offices
in Richmond Hill, New
0£ $i;200,000.
The current situa- York, manufactures special pur^on (jf there was a 25% invenpose inks which are instant drytory
shrinkage
in both years) jng^
indelible, waterproof, and
wouid be;
smearproof. It also manufactures
1957
1958
Speedry Brushpens, Magic Markmen£

'

?

thanks go to Maurice Hart, New York Harry L. Zeeman, Jr. of Carl Marks &" *

its

—EDITOR.

1

This week ou£ sincere
Hanseatic Corporation, and

N. Rosen¬

of Sidney

President

the company.
*:

shares

and'166,666

account

the

serve

The Ratio of Current

TRADERS ASSOCIATION

SECURITY

NATIONAL

being sold for the account of the

pertinent thereto.

the

a

Of

published consecutively covering this most important sub¬
ject. The primary purpose is to furnish the salesman and
the investor with certain basic tools which can be used func¬

inclusive

is manager

Co.

group

fered

III)

(ARTICLE
This

of

Analysis

&

Fuller

D.

Notes

NSTA

Stock Offered

is

.

Speedry Chemical

Securities Salesman's Corner

of

.

(950)

26

Haims.

Upon
fered

mortgage

money.

_

issuance of the notes of¬

today and retirement of the

maturing Sept. 15 notes, outstand¬

ing

indebtedness

Loan

280,000.

of

the

Banks will total

Home
$1,402,-

Volume

Number 5878

190

.

.

The Commercial and Financial Chronicle

.

(951)

brand name a
plastering and

"Tiger"

The Electronics

Industry

Looks Ahead
and

Continued from page 13

sacrifice of proprietary posi¬
tion in marketing, this could be
resolved
by
having
the
sym¬
any

posiums held under the auspices
of universities in your respective
communities.

Finally, I would like to propose
that, as an organization, we create
a
special marketing award for
non-military products, recogniz¬
ing outstanding achievement in
this field the same as you do in

,

the

scientific field.

It is

recognize marketing

as

time

we

A special WEMA, or West¬
Electronics Marketing Award,

would

go
| a
long way toward
bringing recognition to the field

and

attracting

I

talent to it.

new

that

believe

recognizing

by

marketing talent in this

way,

and

making marketing a key function
in: our forward thinking, we wili
be unleasing a new and powerful
force in our economy,
one
that
will help push our gross national
product to the $700 billion level
by 1970.
In

conclusion

re-emphasize

scientists

our

ing people.
sponsibility
educate
ta what

be the

would

and

to
as

be done, and it should

responsibility of
people

our

mar¬

educate

to

the

Challenges

Industry's

of

in

I

that

believe

should

also

we

bigger.
first

industry

begin

think

to

Consider, as a starter, the
problems created
in
the

many

half

of

the

20th

century

by

industrialization. Per¬
haps we should begin to devote
the second half of the century by
solving them. Air pollution, un¬
necessary death on our highways
rapid

our

direct

us

an

tre¬

our

for low-cost
A breakthrough

is

water and energy.

leading to the

conversion of

mass

salt

water into fresh water, eco¬
nomically, is padly needed.
Medical

still in

electronics,

its

infancy, holds great promise both
in

diagnosis

have
in

and

treatment.

speeding

We

surface

electronics.

electronics

role

the

scratched

only

educational

will

The

in

play

the educational proc¬
enriching it, staggers

up

ess,

and

the

imagination.

in

We need

completely

a

new pro¬

duction

technology, ope that wili
to compete against lowcost foreign labor.
Surely a part
of the answer to this problem will
lie in staying ahead technically.
It
is
possible that the
break¬
enable

us

through
of

out

this

in

will

area

grow

the

neyy.-and exciting
molecular engineering.

of

This

is

not

fetched

far

as

art
it

as

might sound. Only a few years
ago
radios were shoe-box size.
Today,
without
compromising
quality or performance, we are
making

them

of

commercially

as

the

package of cigarets. It
possible to develop

a

appears

thimble-sized

radio

so

would not accommodate

an

as

attention.

still young, as

are

let

opinion,

my

a

Tomorrow

we

for

cry

are

man-created

vitality and knowledge
to fulfilling the promises of the
future. Civilization's greatest need,

now

r

the

mendous

size

what is needed.

on

While

of

that

industry,

these

spectrum,

few

problems

re¬

marketing people

our

scientists

market¬

It should be the
of our scientists

can

keting

to

like

importance of
communications
be¬

improving
tween

I

the

to 1975

radio

a

small

it

speaker

a

know them today.

we

of

We have

come a long way in a
time, and it is only the be¬
ginning. Our history, though short,
already points irrevocably to a
great and fruitful destiny.
Let's
live up to it.
Our opportunity is
great, so great as to be rare in
history; it may never be as great
again as it is today.

short

barrier
also

and

production

be

reasonable

participant in the
these processes. Since

direct

a

growth of

early 1958 the company has been
gaining a strong position in this
advancing field by producing tarbasic

bonded

oxygen

form

of

the

for

converters. In brick
(Tarblok) and in granular
(Tarmix) these refractories

new

form

are

refractories

Tarmix

for

used

heats.

the

furnaces.

oxygen

also

linings

construct

to

used

is

between

repairs

Furthermore, last year the

initiated a broad expan¬
sion program which included add¬
ing to its facilities for supplying
the oxygen steelmaking furnaces.
[Another attractive feature in
the Basic picture is the record of
growth
that
the company
has
achieved.
If
prospects
are
in¬
dicated
by
a
company's
past
record, Basic's future is excep¬
tionally bright. Sales soared from
$6.5 million in 1947 to $24.2 mil¬
lion in 1956. Earnings during the
company

-

dicate
the

a

1960

this

national

distributor

materials.

cently
tribute

refractories

to

period rose from 560 a share
almost
a
four-fold

$2.1-2,

for both

increase

sales and

earn¬

were

While 1957 and 1958 profits
affected
by the recession

(net

was

ings.

equal

to

$1.72

end

of

1958

company's

had

that

been

earlier. In the final quarter
year

posits

of the

annual rate of $2.80 a share. This

rising trend continued in the first
half of the current year as the
company

reported net of $1.81

a

share, highest for any six-month
period in its history. For the full
year

net

record

expected

$3.00

prolonged
with

is

new

a

to

share

reach

barring

a
a

steel strike. Moreover,
facilities

coming




into

from
a

re¬

powder
These

pea.

are

steel

The

ores.

the

are

largest

and at the present
could

continue

company's need for
years.
These de¬
located in northwestern
100

geographical center of

production

States.

company's

the

Ohio in the

in

Basic's

the

United

magnesite
and
situated
in

brucite

Nevada

the

major
part of one of the only two known
commercial deposits in the coun¬
try. Chrome ore is presently being
mined
in

the

at

are

company's

deposits

Cuba.

of

work

in

refractory materials
open

the

form

contains

stant

board

the

magnesite

Gabbs,

and

are

furnaces
basin

or

molten

steel

to

Agoxide

is

that

are

also used in electric

for original

developed

In

addition

names

used

plant

Magox
in
the

in

fertilizer

mixes

preparation

of

Metallurgical

There will be

a shortage of 130,000 public school classrooms in
complete enrollment will include 33,460,000 pupils
kindergarten through grade eight; grades nine through
12, 9,240,000 will be enrolled; in colleges 3,780.000 are expected
as against 3,590,000
last year. More than 7,250,000 students will
be in college by 1975 if all the eligible college minded boys and
girls increase at its present rate. Since 1929 college enrollment
has more than tripled.

board,

and

the

in

caustic

lime

soda.

is

shipped to
steel
industry
from
the
Buffalo, N. Y. plant and highmagnesia lime to the glass, paper
the

chemical

and

industries

Steel

its

from

not

manufacture^
six-state

is

marketed

adjacent

area

in

a

by

future
with

associated

major

four months

in

for

the

or

carrying out an extended program
of
prospecting for ore deposits

through the
tromagnetic

cobalt and
More

Maine.

iron

be made

the

and

current

Japan,

Africa

and

Australia.

in

million

some

than

It

While

also produces and

distributes various products to the

building

indtfitry.

was

no

this year

rate

indicated.

seems

apparently

$1.00

cash

on

the

Specifically, this
following a 20% stock

rate

in

1955

and

one

In

view

of

the bright

Under

a

&

Form Jerome Robbins Co.

Officers

the

Co., Inc., has
at

521

York City to

securities

business.

Jerome

Robbins,

are

Joel

A. Sherrow,

Secretary-Treasurer. Mr. Robbins
was

formerly with Baron,

Kolb &

Black,

Lawrence of Beverly

Hills.

have holes in

their

o\frn

Companies Continue Expansion in Spite of Strike
companies

are

continuing to expand and to

plan ex¬

by National Steel Corp. Republic Steel Corp. has ordered
plate mill for the Gulfsteel Works at Gadsden, Ala. Jones
Laughlin Steel Corp. has awarded contracts for two basic

steelmaking

furnaces at Cleveland.
And Youngstown
spend twice as much this year on capital

it did in 1958.
Other companies are also modernizing although construction
work has been interrupted at plants closed by the strike, the

projects

as

dustry's confidence in the years ahead, but it also indicates
want mills efficient to help keep prices down.

steel-

advertisements last week, the indus¬

try appealed for the union's co-operation in making labor con¬
tracts as modern as steel mill machinery.
It pledged that the
benefits of increased

productivity would be shared by employees,

shareholders, and the public.
Steelworkers have lost nearly a half billion

dollars in wages,
nearly $1.5 billion in sales and $272 million in other
things including overhead and salaries of nonproduction workers
in steel, and the government nearly a third of a billion dollars
in taxes—bringing the amount of direct losses to over $2.5 billion.
the industry

This

and

who

men

>

a

users

In nationwide newspaper

«■

in

steel

metalworking weekly said.
This expansion in the nation's steelmaking capacity (costing
hundreds of millions of dollars) is not only evidence of the in¬

1956.

purchase for capital gains.

engage

that

Sheet & Tube Co. plans to

earnings

offices

is

finding it increasingly difficult to fill them. This situa¬
more critical each week until the strike ends.

new

oxygen

i

good yield, Basic is an attractive

with

the steel service centers report better
total inventory, inventory holes are

of

Ind.,

is

prospects, relatively low price and

Jerome Robbins &

tons

pansion in the face of the strike, now nearly seven weeks old,
according to "Steel*" the metalworking weekly.
Construction of a new steel mill has been started at Portage,

new

in

result

Steel

done
dividend

of 25%

Although

million

business would have to come at the expense of established

are

Steel

was

shares.

or

demand

The

company's policy
by paying
and maintaining

the

dividends

concerned over inventory conditions

tion will become

to effect such increases

stock

stocks.

own

more

are

stocks

are

It

their
even

customers.

at record levels,
increase in the $1.00 cash divi¬

dend

in

are

products.

any new

be

to

15, orders
until February

points out that warehouse inventories, while outwardly
not uniformly distributed over the country and are not
uniformly distributed over all steel products.
Mills operating with company unions or extended contracts
report increasing requests for steei from users that are not regular
customers.
But these mills have been operating at capacity and

placed

operations

Sept.

user

This

in 1958,
as were increases in the preferred
and the long-term debt.
expected

by

the

three

large,

long-term

privately

was

end

becoming critical.

debt,
12,500 shares of $6.25 preferred,
18,000 shares of $5.60 convertible
preference and 773,777 shares of
common.
The
$5.60
preference
stock is convertible at $14 a share.
$3.5

strike

appliance industry, some major shutdowns are set for
fourth weeks in September. This hits at the peak of
for many major appliances.
Steel warehouse customers are already feeling the pinch in
In

Capitalization consisted of

President,

The company

ratio

the

should

their parts suppliers, who were less successful in inventory

seasonal

working capital equaled $7.7 mil¬
1.

they

the third

financing to
magnesia
production
further

pated), Basic's finances at June
30, 1959 were more than adequate
operational purposes. Current
assets totaled $9.7 million, current
liabilities
were
$2 million, net

to

inbalance

among

for

5

that

means

building.

in the

future.

lion

cold-rolled sheet, galvanized sheet, and hot-rolled
week, some steel mills are taking orders for these
the fifth and even sixth month after the strike,

on

into

But

now

will

minimum of three and probably

March.

some

to

borings

a

companies are already concerned over their ability
pipeline-filling. The auto companies, which had boasted
adequate inventories to get into 1960 model production, are feeling

zinc

and

State

V

sold out for

to last out

deposits in New
warrant geological
being conducted and
if these confirm previous evidence,
or

strike's

Some auto

recently this syndi¬

cate has found sufficient evidence

York

steel

products.

in

accessibly

the

already on the tight list are particularly vital
automotive, appliance and construction industries.
The scrambling for steel at all sources (warehouses, operating
mills, and foreign steel brokers) indicates that steel inventory
reports may have been greatly inflated. While total steel tonnage
was accurately reported, it did not reflect early shortages of some

occur¬

copper

situated

rences

after

These products

explorations, leases
acquired on promising

been

nickel,

Avenue, New

Europe,

hard-to-get steel products will

months

to the

of airborne elec¬
instruments.
As
a

use

result of these
have

six

to

placed for these products could not reach the

of

purpose

five

metalworking weekly states.
This

syndicate

a

the

now

But this

products

developments
company's

the

position

organized

are

en¬

are

for

delivered

sheet.

Longer range potentials
hanced

be

Mills

the

to

northwestern Ohio operations.

Fifth

pneumatic
America,

used in

Stringency Becoming More Acute

New orders placed for already

end, "The Iron Age" reports.

guns

of these

The

plants in Ohio. Agricultural lime¬
stone, a by-product of refractory

formed

aro

will

school.

of roof deck and insulation

been

which

the Aug. 31 issue.

College Enrollments to Set New Record

from

materials. The company is a lead¬

producer

of bank clearings in U. S. A., refer toy,
"Chronicle," issued Mondays. For'

the

impact

the fall.

construction

maintenance.

has

of

+14.6
+10.1
+ 8.2
+10.5

on business, trade, merchandise and mechanical
necessarily be great when 46,480,000 school and
college children return to the forthcoming September enrollment.
Last year's enrollment was 44,540,000, and the shortage of quali¬
fied teachers is placed at 195,000 this year, compared with last
year's 182,000. Since 1929, college enrollment has tripled, high
school almost doubled and grade school enrollment has increased
by one half. One out of four persons in the U. S. is now attending

bath.

also used for the con¬
repair work required on
hearths.1 The company's re¬

for

guns

The

facilities

processing of uranium ores, as a
bonding agent in the manufacture

to re¬
pair f u r n ajt. 0C linings by air
emplacement
of
the
refractory
ing

School and

the

at

Nevada

sold under the

Edition

this week's summary, refer to page 47 of

Brands

manufactured

company's
and

detailed summary

a

Statistical

$9,913,645,778
1,087,089,125
943,000,000
639,835,846

products

Tiger

2,000 dealers.

over

are

furnaces

Basic

hearth

hearththe

fractories

and

For

the

Chemical and agricultural prod¬
ucts are also produced. Calcined

the

Basic's
used

Boston

re¬

marketing areas. "Tiger" products
are
sold through a national net¬

resources

western

these

Basic's earnings were at the

grain

manufactured

operation

over

for¬

displayed

basic

deposits

meet

well

They

reverted to the growth

tunes had
trend

the

of

the country

share
the

a

in 1957 and $1.30 in 1958), by

experience has

a r e

chrome

dolomite

to

of

Although

dolomite, magnesite, brucite

of

has

%

1958

1959

$11,363,314,161
1,196,630,620
1,020,000,000
76,824,139

Philadelnhia

arrangements
Corporation to dis¬

insulation

several

and

year

fractories, ranging
up
to the size of

rate

division

Ending August 29—

York

Chicago

Owens-

rate.

manufacturer

in

for

completed

Abitibi

with

in

The

expectancy would

Over 50 years of

and

Week
New

Corning Fiberglas, Basic markets
a complete line of home insulation

near

led Basic to be the world's largest

from

follows:

Furthermore,
division and as a

nextr
round
out
in¬
facilities is expected before year
further improvement in
end, no equity dilution is antici¬

>

same

this

against $20,286,500,730 for the same week in 1958. Our compara- %
tive summary this week for some, of the principal money centers

protective coating, is

through

Industry

Continued from page 5

marketed.

test

Like Best

Continued from page 2

The State of Trade and

masonry

produced, including "Kilnoise," a foamed acoustical plaster.
"Tiger Polyroll," a polyethylene
roll sheeting used extensively in
the building industry as a vapor

surveys

The Security I

complete

limes is

airways, the over-population

our

only

profes-

a

sipn.
ern

of

line

27

does

not

include

losses in

other industries

affected by the

strike.

"Steel"

tailiag

or

though more companies are curoperations because of a steel shortgage, the
Continued on page 28

reported that even

closing

28

The Commercial and Financial Chronicle

(952)

The State of Trade and

sponding week in 1958, production of reporting mills was 4.1%
below; shipments were 5.6% below; and new orders were 11.5%

Industry

centers

inventories

sheet

Galvanized

-

almost depleted and cold

are

nation's

the

in

steel

rolled sheets are also coming

finished material.
Last

week, steelmakers operated their furnaces at 12% of
up seven-tenths of a point from the previous week's

revised

Production

rate.

$38.33

heaVy

melting grade

ton for the fourth consecutive week.

a gross

Foreign mills are cashing in on America's steel
boosting prices on experts to this country, "'Steel" said.
Deformed

fize

bar

bars,

angles,

strike

angles,

structural

by

American

The

Based

Iron

Institute

Steel

and

Sugar

operating rate of the steel companies will average :::21.5% of steel
capacity for the week beginning Aug. 31, equivalent to 345,000
tons of ingot and steel castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual rate of *20.7%
of
capacity and 332,000 tons a week ago. [ED. NOTE: A strike in the
steel

prices

reported
over

equal to

was

12.2%.

Estimated percentage for this week's forecast is

.

month

A

production)
the

actual

the operating rate (based on 1947-49 weekly
*19.8% and production 318,000 tons. A year ago

ago

was

weekly

production

placed

was

1,666,000

at

tons,

attached

rose

the end of

at

of production is

based

weekly production

average

on

,

Volume
The

final

industry

awaited

1960

Production

Cars

1960

on

for the 1959 model

wrap-up

Underway
has set the

run

U

Wholesale Food Price Index Up

S.

The Wholesale Food Price

its way toward

on

volume production of the long"Ward's Automotive Reports" said..

June

models,

street, Inc., advanced 0.3%
earlier.

The week's

(period ended Aug. 29) scanty turnout of an esti¬
17,565 units is expected to be bettered at least slightly next
week when more plants end changeover operations and
get into
the swing of turning out 1960 model cars. *
Chrysler Corp plants in Detroit (Chrysler Jefferson,
Dodge Hamtramck and Plymouth Lynch Road) and others at
Newark, Del., and Los Angeles will begin production of the 1960's
31.

The

Sites also

The

Rambler

started

Plant
model

1960

Imperial plant in

at

Detroit

Kenosha, Wis., and
activity on that day.
the

and

the

a

was

The Index
31

six

sion

Rocket

'

represents the

total of the price per pound of

sum

Commercial and industrial failures dipped to 257 in the week
Aug. 27 from 263 in the preceding week, reported Dun &

Bradstreet, Inc. Although at the lowest level in four weeks, casual¬
ties exceeded the 246 occurring in the similar week a year ago
but were off slightly from the 262 in 1957. Some 12% more con¬
cerns failed, however, than in
prewar 1939 when the toll was 229.

(14,119) in the week ended Aug. 31, remained
level with last week (14,698) even
though one major producer,

Chevrolet,
made

up

began turning out 1960 models. The difference
by changeover closedowns at Ford truck plants

and

reduced output by Dodge.
The

for

week's

combined

estimated

an

(46,546), but
(25,581).

car-truck

units,

increase

an

Car output

31,679

of

production

scheduled

was

31%

less than the previous week
over the same year-ago period

24%

(17,565) suffered

a

45% decline from the previous
,
/ ■
date is ahead of comparable

week's total of 31,848 units.
This year's car-truck volume to
1958 by 48%.
I

Carloadings Down 14.5% From 1958

Loading of
totaled

542,561

nounced.

This

freight for the week ended Aug. 22, 1959,
the Association of American Railroads an¬

cars,
a

corresponding week

decrease of 91,670

in

1958,

and

cars

or

decrease

a

of

28.5% below the
corresponding week in 1957.
Loadings in the week of Aug. 22, were 1,283
of

one

cent

per

about

below

the

165,000 additional

rent week if there had

preceding week.
would have

cars

14.5%

below

216,679

from 34

two-tenths

It is estimated

that

been loaded in the

cur¬

of

465

week

mills

mills

Trade Barometer were 0.9%
above
ended Aug. 22, 1959. In the same
week
were 2.9%
below production.
Unfilled
amounted

mills,
the

unfilled

current

to

41%

orders

rate,

and

of

gross

were

stocks.

equivalent to

gross

stocks

were

production.

For

new

of

failures

in

with
re¬

a

Twenty-two of the

year ago.

above

production;

new

of $100,000

The debentures will be redeem¬
able

in

heat

wave

many

The

ever.

over

concerns

.-^Compared with the previous

duction of

above;

reporting mills

new

orders

were




was

6.2%

week

2.4%

1, 1961

at

1, 1965 at 100%, plus accrued in¬
in each case.
The sinking

terest

fund

requirements
84%

retire

to

sufficient

are

the

of

debentures

with its principal

The company,

Ohio,

Cleveland,

at

plant

manu¬
absorbers

factures and sells shock
for

and

buses

trucks,

passenger

metal couplings for the rub¬
and
antenna
and
accessory equipment for the elec¬

cars,

ber

industry

missile

and

aircraft

in¬

Talco Engineering Co., a

wholly

owned

-

subsidiary,

de¬

signs, develops and manufactures
solid propellant ballistic devices,
for missiles and military aircraft.
Rocket

Inc.,

Power,

recently

a

formed, wholly-owned subsidiary,

plans

to
and

ture

engage in the
sale of solid

in

research

for

and mis¬

aircraft and
and related
Couplings

siles and for military
in

fuels

thrust rockets

moderate

those

International

fields.

manufac¬

of

the

country

last week slowed

cities.

effect of

the steel

strike

is

becoming

one

producers of an¬
for

of about 25

other components

tennas

and

radio

communications

systems.

Bohanan Division
manufactures force ejection sys¬
tems and other devices for mis¬
company's

The

siles and aircraft.

Slightly Over Year Ago

most

noticeable
in cities in the strike areas. Car sales in the
first 20 days of August
totaled 300,500, according to published reports.
?
The

total

dollar

Aug.

26

spot

estimates

more

was

—1

to

volume

+3%

collected

of

retail

trade

higher than

by

Dun

&

a

in

year

the

week

ended

according to
Inc.
Regional

ago,

Bradstreet,

estimates varied from the comparable 1958 levels
by the following
percentages: West North Central +3 to +7; Pacific and West
South Central +1 to
+5; East North Central 0 to

+4;

Atlantic, East South Central

For the five months ended

the

1959,

31,

May

showed

company

consolidated net sales of $11,726,886

of

income

net

and

$360,594,

to 53 cents per common
share outstanding.
Upon comple¬

equal

tion of the current

financing^ out¬

to

and Mountain —1 to

standing capitalization of the com¬

and its subsidiaries will con¬
sist of $6,395,000 of various debt;
pany

shares of 5% cumulativepreferred stock, and 675,438 shares
34,056

of common stock.

South

+3; New England

Forms

—6; Middle Atlantic —5 to —9.

the

Federal Reserve

decreased

1%

below

on

a

country-wide basis

taken from

as

Board's Index for the week ended
the

like

period last

year.

Aug. 22,

In the preceding

E.

Jr.

1% For August 22 Week
Departmcnt store sales

mills

to

m-o-

ended Aug. 15, 1959 pro¬
1.4% above; shipments were 6.6%
above. Compared with the corre¬

According to the Federal Reserve System department store

sales in New York
City for the week ended Aug. 22 declined 12%
over the like period last
year.
In the preceding week Aug. 15 no
increase or decrease was shown. For
the four weeks ended Aug.
22 a 1% loss over the same
period in 1958 was recorded and Jan.
1 to Aug. 22 showed a

3%

increase.

partnership

his inyest-

in

ment business which is now being
conducted
E.

Robert

week, for Aug. 15, an increase of 6% was reported. For the four
weeks ended Aug. 22, a
gain of 5% was registered and for Jan. 1
to Aug. 22, an 8% increase was
noted.
1

Mo.—Rob¬

CITY,

Holliway, 308 Jackson .St.,
has admitted Robert E. Holliway,
ert

Nationwide Department Stores Sales Down

reporting

above

Partnership

JEFFERSON

19 days' production at
equivalent to 42 days'

were

and after July

on

optional redemption prices rang¬
ing from 103% to par and through
the sinking fund beginning July

major producers of couplings for
the rubber hose industry, while
the Gabriel Electronics Division is

as

Despite promotions, fall women's apparel,
back-to-school clothing, men's wear and homefurnishings all suf¬
fered setbacks. Fans and air conditioners were in
demand, how¬

reporting softwood

of reporting identical

orders

for

equipment.

under

NEW

len

C.

C.

of

Corporation
.

N,; y.—Al¬

Baldwin has formed Allen

Inc., with

Colonial

Drive

investment

Baldwin

firm.

name

Co, '

HARTFORD,

Baldwin,

108

his

the

Holliway

Forms

r

2.2%
duction.

and

development

Division of Gabriel is one of four

excess

preceding week.

Retail Volume

J

Forothe year"to"date» shipments
were

and

against

The

orders of these

orders

concentrated

was

which fell to 216 from 229 but

commercial services, off to 26 from 27. More
succumbed than last year in all lines except retailing.

reporting to the National
production for the

Lumber

more,

except retailing where casualties climbed to 129 from 113. The
sharpest decline was registered by manufacturers whose total
dropped to 39 from 51, while milder dips occurred among whole¬
salers, down to 23 from 27, among contractors, down to 40 from 45,

Below 1958 Week

mills

Division

research

Tolls dipped during the week in all industry and trade
groups

.19 in the

—2

shipments

the

.

The amount of electric
energy distributed by the electric light
and power
industry for the week ended Saturday, Aug. 29, was
estimated at 14,109,000,000
kwh., according to the Edison Electric
Institute.
Output increased by 106,000,000 kwh. above that of
the previous week's total of
14,003,000,000 kwh. and showed a
1)837,000,000 kwh. or 15% above that of the comparable
1958 week.
•

Lumber

decline

or

failing businesses had liabilities in

or

15% Above 1958 Week

Lumber Shipments 5.6%

$5,000

week earlier and from 33

a

the

cars

been no steel strike.

Electric Output

week's

the
of

mained slightly above the 213 of this size last year. A contrasting
increase lifted casualties involving liabilities under $5,000 to 41

sales
cars or

of

liabilities

and among

Week

revenue

was

All

was

Divi¬

for

dustries.

The trade publication said the last U. S.-built 1959 cars were
produced by Ford Motor Co. plants located throughout the country.

Truck volume

Mass.;

Power, Inc. subsidiary; for

-added

ended

a

Electronics

Millis,

Bohanan

the
-

Drop in Business Failures Noted
/

the sale of
together
with

prior to maturity.

Chevrolet's Corvair plant at Willow Run, Mich.

on

Gabriel

at

tronics,

new

from

funds, will be used by the
for a capital investment
including new facilities

the

for

prices at the wholesale level.

Dodge-Ply¬
mouth site at St. Louis
already are turning out new models, as
is the
Studebaker-Packard
factory at South Bend, Ind., and

proceeds

program,

foodstuffs and meats in general use. It is not a cost-of-living
Its chief function is to show the general trend of food

raw

index.

share to and

per

company

ago.

year

$20

at

debentures,

other

Brad-

Dun &

for each

par)

30,1969, and at $30 per share
to and including June

the

Commodities quoted higher this week were wheat, rye, beef,
hams, bellies, cottonseed oil and cocoa. Lower in wholesale price
were
flour, corn, sugar, coffee, eggs, potatoes, rice and steers.

Three

Aug.

The current level

sponding date

mated

by

($1

30, 1974, the expiration date.

Aug. 25 to $5.97 from 5.95 a v/eek
7.3% below the $6.44 of the corre¬

on

1,

pur¬

thereafter

Slightly for Second Week

Index, compiled

and

Dec.

including June 30, 1964, at $25 per
share thereafter to and including

slightly higher than the prior week. United
States exports of cotton during the week ended last Tuesday came
to about 20,000 bales, compared with
£6,0Q0 a year ago. For the
current season through Aug. 25 exports amounted to about 60,000
bales, against 184,000 last year.
-

for 1947-49.

B-O-P

Exchange

after

of the company's

stock

common

Net

Cotton

shares

20

a

the New York

on

and

on

$1,000 principal amount of the de¬
bentures to which it is initially

earlier.

was

detachable

warrant,

entitles the holder to

1959,
chase

the week and finished

*Index

on

a

Prices

or

*103.7%.

auto

Each

exercisable

trading remained close to the preceding week, but
up moderately.
Coffee prices finished at prior week
purchases were down somewhat. Cocoa wholesalers
moderate gain in trading and prices rose substantially

week

a

share

common

.

significant decline in hog prices this week as
receipts in Chicago expanded and trading remained sluggish.
A
moderate rise in steer prices occurred with trading higher and
salable supplies slightly lower. While lamb turnover matched that
of the prior week, receipts were lower and prices fell moderately.
In contrast to the dip in hog prices, lard prices picked up moderately during the week.

11.7% of the utilization of the Jan. 1, 1959 annual capacity of 147-

633,670 net tons.

but

There

beginning Aug. 24

output for the week

were

levels,

industry began Wednesday, July 15.]

Actual

an

was

increased interest from Peru in purchasing United States rice.

the

that

announced

subordi¬

purchase warrants attached, is be¬
ing made today (Sept. 3) by Carl
M. Loeb, Rhoades & Co. and Prescott, Shepard
& Co., Inc.
The
units are offered at 100%, plus ac¬
crued interest from July 1, 1959 to
date of delivery.

export buying of rice picked up moderately during the week and
prices matched those of the preceding week. Exporters reported

12.2% of Capacity

on

with

June 30, 1974,

Although there was some scattered fill-in buying, over-all
trading in flour lagged and prices were down slightly. Some ex¬
port sales of flour were made to Colombia. Both domestic and

I-beams,

channels, and merchant bars are up $2 a ton at Atlantic, Great
Lakes, Gulf, and West Coast ports.
Steel Output

was

trading

;

of $2,500,000

fund debentures due

nated sinking

appreciable dip in corn prices during the week,
sluggish and supplies were adequate.
Volume in
rye and oats slackened and
prices were down somewhat.
Al¬
though wheat prices dipped at the beginning of the week, they
picked up at the end of the period following a government report
that at the end of July nearly 108,000,000 bushels of the 1959 crop
had gone into government loan under the price-support program.

about 340,000 ingot tons.

was

"Steel's" scrap price composite on No. I
held at

There

as

public offering

of The Gabriel Co. 5%%

prices on some grains, flour, hogs, lambs,
commodity price level slipped this wee^
The Daily Wholesale Commodity Price
Index, compiled by Dun & Bradstreet, Inc., stood at 276.27 (193032 = 100) on Aug. 31, compared with 276.68 a week earlier and
277.22 on the corresponding date a year ago.
lower

Reflecting

mills

capacity,

A

and rubber, tne general
from the prior perioa.

critically short supply.
As the strike drags on, nonintegrated
are
being squeezed out of the market for want of semi¬

into

Week

Wholesale Commodity Price Index Slips From Prior

service

Thursday, September 3, 1959

.

Offered to Investors

Continued from page 27

•

.

Gabriel Go. Securities

below.

large majority of users have supplies to last until mid-September.
A bare majority have enough to go into October or later.

.

is

to

offices at
continue

business.

President

of

the

Mr.
new

Volume

190

Number 5878

.

..

The Commercial and Financial Chronicle

.

(953)

The

Indications of
Business Activity

week
Latest

AMERICAN

IRON

AND

STEEL

Eteel

ingots

'AMERICAN
-"■•Crude

and

castings

PETROLEUM

oil

and

condensate

Crude

runs

Ago

J ;,/■'// £'C

output—daily Average

—

11.2

61.7

5

♦332,000

318,000

1,666,000

: Aug. 21

-

-Aug. 21

(bbls.)

6,817,125"

6,822,575 >
7,950,000

,.118,214,000

.Aug.,21
Aug. 21

29,316,000

2,059,000
13,197,000

12,024,000

(bbls.)—;
;
Aug. 21
refineries; bulk terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at.
Aug. 21
Kerosene (bbls.) at__.
Aug. 21
Distillate fuel oil (bbls.) at
Aug. 21
Residual fuel oil (bbls.) at
Aug. 21

6,241,000

5,973,000

(bbls.)

Z

—

Residual fuel oil output

—

29,077,000

—

Revenue

ENGINEERING

■

188,157,000

173,756,000

29,948,000

29,473,000

28,964,000
134,463,000

55,525,000

54,789,000

of

Total

CONSTRUCTION

481,599

524,802

Crude

Total

U.

S.

Private

Public

Aug. 27

$293,000,000

$377,900,000

$331,500,000

$397,801,000

—.—Aug. 27

140,200,000

210,300,000

140,900,000

195,490.000

——J——-—Aug. 27

152,800,000

167,600,000

190,600,000

202,311,000

Aug. 27

131,200,000

83,300,000

139,500,000

175,705,000

Aug. 27

21,600,000

84,300,000

51,100,000

26,606,000

Aug. 22
Aug. 22

7,095,000

♦7,225,000

7,285,000

8,223,000

352,000

341,000

359,000

426,000

construction

construction

—

State

and

—

municipal

——

Federal

COAL

—

OUTPUT

Bituminous

(U.

coal

S.

BUREAU

and

OF

DEPARTMENT STORE SALES

SYSTEM—1947-49
EDISON

ELECTRIC

Electric

100

=

AGE

INDUSTRIAL)

COMPOSITE

Domestic

Export

(New

Lead

(St.

IZinc

(East St.

.Aluminum
Straits

MOODY'S

V^$66.4T

,

246

of

Aug. 25

$40.17

263

for

new

(end

of

at_.

Aug: 26

(in

at

—

Louis)

6.188c

Wholesale

$66.41

$66.49

Retail

$^9.83

$39.50

$42.50

Construction

(New

York)

BOND

service

30.175c

29.600c

Total

29.575c

26.100c

27.900c

28.650c

27.125c

12.000c

12.000c

10.750c

12.800C

11.800c

11.800c

10.550c

—Aug. 26

99.5%)

at

DAILY

11.500C

Aug. 26

11.000c

—Aug. 26
—Aug. 26

24.700c

24.700c

24.700c

302.625c

102.000c

11.500c

11.500c

10.500c

11.000c

•

11.000c

10.000c

Total

COAL EXPORTS

AVERAGES:

To

North

85.33

85.72

92.06

To

80.93

Group

Utilities

—

1

~

]

Month
U.

S.

Group

81.42

85.20

To

1

84.43

84.55

84.94

89.09

1

84.68

85.07

85.20

91.62

Bept.

1

87.05

87.99

87.99

95.62

Sept.

4.36

4.24

4.13

4.76

4.72

4.71

—:

4.46

4.43

4.44

3.97

4.61

4.57

4.59

A

4.07

Bept.
Bept.
Utilities

Group
Group

5.11

5.07

4.82

4.79

4.76

4.73

4.63

4.56

4.56

381.8

Aug. 22

299,462

298,923

281,445

320,743

325,729

312,860

293,915

(tons)

Vug. 22
at

end

Crude

95

96

94

92

In

4.30

=

of period-

Aug. 22

511,267

551,214

533,760

109.35

109.40

109.36

FOR

ACCOUNT

OF

S.

To

OF

NEW

For

—

,_±

month

of

pounds)
2,000 pounds)

89,973

of 2,000 pounds)
stocks at end of period

Corn,

U.

(DEPT.

(running

Other

sales

Aug.

'

S.

OF

OF

484,130

494,010

7

1,745,160

2,044,190

2,538,550

2,118,840

Barley

2,086,070

2,454,210

3,022,680

2,612,850

Rye

7

246,810

360,650

499,530

7

10,900

40,400

45,100

33,900

7

251,980

7

262,880

405,160

-•

599,640

Cotton

513,810

364,760

Aug.

468,710

623,540

Hay,

all

Hay,

Aug.

*

me

on

sales

transactions for account of members—
Total purchases
:

660,150

923,955

845,290

Hay,

alfalfa

96,410

113,870

179,820

135,890

Hay,

clover and

759,137

895,970

892,010

873,007

1,075,790

1,027,900

3,054,696

3,451,130

4,464,145

II

564,290

709,050

3,168,087

3,903,230

3,083,143

3,732,377

4,612,280

Peanuts

3,610,490

Aug.

sales

4,274,290

of

Early

Early
Late

1,674,471

vug.

$91,910,446

1,834,992
$98,212,654

$115,413,588

purchases

Number

of

demeD-

"Vug.

1,450,162

1,546,095

1,941,000

1,578,423

Vug.

7.234

4,798

7,016

11,772

1,442,928

1,541,297

1,933,984

1,566,651

total sales-

other sales

—

-

value
-

Round-lot
Number

sales
of

bv

desiers-

shares—Total sales.
-

Short

sales

Vug

$77,539,779

vug

$80,042,388

$98,406,933

378,030

479,410

.uer

oi

47M10

371,820

378,030

ug.

563,640

672.830

741,420

TOTAL

ROUND-LOT STOCK SALES ON THE N. Y.
STOCK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS
round-lot

Short

Commodity Group—

-

-

—

C.

*

512,530

621,930

821,780

875,000

12,936,440

15,203,330

18,780,210

Vug.

13,448,970

15,825,260

IS,601,990

18,437,590
19,312,590

Aug. 25

119.2

119.3

119.2

61,574

61,797

67,134:

21,632

21,785

4,688

4,581

6,017

18,535

18,434

18,981'

4,045
______

24,441

2,475
574,413
1,835,800

3,874

3,874

4,971

1

——

:

3,311

3,311

4,703

22,553

24,152

13,614

14,659

33,664

33,206

34,308

168,957

(hundredweight)

(tons)

seed

17,598

17,434

1,783,199

1,736,204

8,048

—

(tons)

±

(tons)

17,852
1,863,801

—,—

—

and

sugar

182,936

265,729

8,048

16,075

—

13,918

6,681'
15,183
32

———.

31

52,641

—

51,492

48,407

—

118,707

119,122

126,610

—

(bushels)

crops

•_

75,781

71,069

32,680

28,890

3,129

3,251

3,026

-i--—

—t—

Z

(tons)

—

;

—

(pounds)

224

219

230

,

240

192
103-

174,750

138,200

figure.

((Includes
as

Monthly

Investment

one-half

cent

pound.




•.

trrime
'

of

July

Total

87.9

87.5

.92.5

extended

1,

barrels of
1958

Western

Zinc

25

120-3

128.3

128.2

125.2

sold

on

on

of

new

annual

orders

delivered basis at centers

where

not

capacity
reported

_

of
since

147,633,670

tor3
introduction oi

freight from East St. Louis exceeds

CEMENT

PORTLAND

of

Production

Shipments
Stocks at

Capacity

balances—

shares

borrowings

on

(BUREAU

$3,168,999
148,868

158,000

363,000

331,447

1,079.00^

1,094,000

1,079,936

298,785,388

234.506,830

106,135,307

issuescollateral—_

Govt.

other

$3,546,000

383,000
309,519,664

S—

bonds

borrowings on U. S.

97.1

§ Based

listed

Member

107.7

96.9

tNumber

of

Market value of listed

credit

11G 2

106.8

97.5

foreign crude runs
basis of 140,742,57a tons.

value

free

$3,528,000
153,000

banks in U.

in

customers'

of

accounts-

balances——

customers

105 4

25

Aug

and

hand

debit

net

to

Member

107.0

Aug. 25

and foods.

EXCHANGE—

(000's1 omitted):
carrying margin

customers'

Market
_

31

firms

Month

999,000

against. Jan.

Plan,

STOCK

YORK

As

118.7

87.1

Aug. 25

.

a

10,481

72,639

Total

foods

L-1959,.

—

for

Cash on

Aug

Revised

121,924

8,956

32,277

Member

-

commodities other than farm

as.of Jan.

—

(bushels)

Credit

products.
—

11,512
109,594

(bushels)

Pears

8. DEPT. OF

—

All

14,815

Grapes (tons)
Cherries (tons)

commodities

Meats

i—

—

Pecans

vug.

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

Processed

614,845

245,992

beets

Apricots

Aug
—

Farm

32,485

13,633

—

(pounds)

Peaches

NEW

sales

All

47,015

sales—

Total sales

•

39,543

52,166

22,553

(pounds)
Apples, commercial

452,750

sales

Other

—.—

1

Hops

(SHARES):

Total

—

—

Broomcorn

538,510

ug.

snares—.

27,596

531,439

—

summer

Sugarcane
Sugar

470,449

21,437

1,726,995
—

Sweetpotatoes

vug.

-

bags)

(bushels)

beans

summer

Tobacco

538.51C

-

sales

purchases by dealers—

lb.

Total

$69,512,553

371,820

lug.

-

Other
Round-lot

1,485,737

t

short sales_

Customers'
Dollar

oy

orders—Customers'

Customers'

2,186,078

414,355

20,996

22,077

4,101

—

Fall

$67,022,937

-

-

Odd-lot

Aug.

for

1,422,164

(hundredweight)—

spring
spring

Late

SECURITIES EXCHANGE COMMISSION
by dealers (customers' purchases >—■*

shares-

(tons)

(cleaned—100

Winter

—

value

——-—'

timothy

(pounds)

Potatoes

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT
OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y.
STOCK

Number

(tons)

field

Soybeans

663,800

2,634,923

dry

1,009,625

109,339

iespedeza (tons)
1—:
Beans, dry edible (cleaned—100 lb. bags)—.—

4,082,260

448,220

Aug.

;

.—

—

Hay,

734,193

1,048,533

282,294

260,217.

8,893

—

—___

(tons)

637,783

Aug.

sales

Dollar

j

(tons)

629,596

7

202,341

1,179,924'

508,394

„—

(bales)

7

•

19,913

"

7

Aug.

sales

'

——

7

Peas,

sales

EXCHANGE

bags)
grain
(bushels)

ug.'

Aug.

round-lot

—

—.

Aug.

sales

—

,

222,254

52,090

—

209,627

406,857

:

—

1,462,218

932,878

188,769

,—

3,799,844

1,155,132

20,858

——

4,224,450

1,118,960

23,231

—

——-——.—

Aug.

a

sales

589,748

909,333

lb.

wild

-

iiouj-

242,781

4,173,470

—

——-—

(bushels)

-Sorghum

77,523

*85,674

(in thousands):

—

(bushels)

(100

♦150,117

472,200

(bushels)

Rice

644,630

108,127

(bushels)

Flaxseed

110,130

REPORTING

.———

(bushels)

(bushels)

7

purchases

Other

410,020

Oats

—Aug.

sales

Short

2,592,340

Aug.

transactions initiated

Other

340,910

3,040,660

Aug.

sales

Short

2,430,330

73,302

138,403

AGRICULTURE—

(bushels)—
Durum
(bushels)
Other spring (bushels)

the floor—

sales

Other

2,178,290

♦110,771

COMMERCE):

CROP

—

DEPT.

spring

I_Aug.

sales

Other transactions initiated off
Total purohases

'•

Short

7

$966,000

(tons

bales)

(bushels)

all

All

7

$729,000

103,432

PRODUCTION

Winter

Aug.

134,020

,

(tons

16

Wheat, all

MEM¬

„

$759,000

July:

2,000

„,

sales

8,725

YORK—

omitted)

Crop as of August 1

purchases

60,074

5,824

OUTSTANDING—FED¬

BANK

of

GINNING

BOARD

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
of specialists in stocks in which reeisteiert—
Short

163,238

28,554

3,076

pounds)

Aug.

CROP

108.68

A.

copper

2,000

Transactions

•

of

(tons

419.411

Aug. 28

100

TRANSACTIONS

U.

of

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE

(tons

Refined

COTTON

activity

tons)

;

(000's

INSTITUTE

Refined

275,008

Aug. 22

4.77

232,037

120,180

37

(net

—

Deliveries to fabricators—

392.8

4.78

157,634

95,178

anthracite

America

Copper production in U. S. A.—

4.03

385.6

July 31

COPPER

4.48

4.81

4,164,000

$65,375,000

(net tons).

PAPER

RESERVE

of

As

4.27

284.1

(tons)

America

COMMERCIAL

4.77

'

Sept.

INDEX—

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

orders

5.12
4.83

-Bept.
Bept.

COMMODITY

Percentage of

4 83

Bept.

Group

5,069,000

$49,197,000

10,690

Pennsylvania

Central

4.27

Bept'.

corporate

of

and

South

ERAL
—

13,966,000

Undesignated

3.56

Bept.
Bept.

.

5,788,000
18,784,000

8,519,000

June:

exports

To

Bept.

:

1

80.81

Bept.

_—L.

:

of

$ 22,673,000

5,232,000
18,234,000

3,147,000

(net tons)

y

Sept

,"Z

Government Bonds

Odd-lot

$12,143,000

99

1,253'

105,905

Europe (net tons)
Asia (net tons)

'

Total

111

1,244

(BUREAU OF MINES)—

96.54

i

.

.

Aa

-

1C5

181

>1,197,000

95.01

Total

255
613

I

11,328,000

liabilities

89.64

Total

167

5,078,000

service liabilities

87.59

Total

,
"

130

633

$14,592,000

liabilities

Commercial

89.78

Total

203

518

17,052,000

87.86

Other

4/737,542

100

Z

87.32

Total

5,528,904

1,071

liabilities

Construction

94.875c

.

—

Industrials Group

•

I.

liabilities
liabilities

1

Total

25,994

5,679,000'

number

Wholesale
Retail

24.700c

102.875c

:——

at

PRICES

24.950c

MOODY'S BOND YIELD DAILY AVERAGES:

'•*

40,973

137

Manufacturers'

92.06

ROUND-LOT

2,113

4,273

113

number

88.32

1949

■_/

.

85.98

Untilled

376

3^950

26,000

28,972,000;

357

number

83.50

Production

by

_I_I

82.56

Industrials

8,054

23,125,000'
v

BRADSTREET,

.

85.85

Public

257,358,000

6,766,000

40,309

number

85.33

MOODY'S

279,435,000

undelivered

transported

number

'81.42

Railroad

17,699,000

.203

freight

1

Aaa

20,084,000

4,159

I"
and

number'':

Commercial

13.000c

——

.

at————-———

corporate

Average

22,270,000

—

tons)

1

S.

30,000

-

ASSOCIATION, INC.—

84.43

U.

193,215,000

26,132,000

export

INSTITUTE

BUSINESS FAILURES—DUN &
INC.—Month of July:

6.196c

—•——Aug. 26

——

..

Riifl

.

216,366,000,

26,606,000

29,534,000

and

cars..

order

89.37

;

217,685,000

•

16,885,000'

•

general

carriers

243,847,000

223,806,000
.

■

delivered
on

Sept.

Public

7,829-

32,000
29,089,000

—

month)

$'66.41 '

:—Z,——Aug. 26
Aug. 26

—

at_.
at

Government Bonds—

Railroad

75,513'

95,248

■

5,761,422

freight

cars

——I—I——I—I—IZZ—II—IIIII—III———IIH Sept.

Aa

277,287-

70,838

*

250,444,000

CAR

AMERICAN TRUCKING
Month of June:

QUOTATIONS):

360.629 •

341,894

„

gal¬

(barrels)———

domestic

Sept.

U. S.

Average

42

(barrels)— IIII

(barrels)

cars

of

6.1£6c.

6.196 c

423,155
■i 10,423

9,665

318,063

July:

freight

Backlog

12,272,000

422,976

4,944,700,

266,884,000

stocks

Manufacturing

—.—

J.

(primary pig.

tin

257

at—

York)

Louis)

(delivered)

Zinc

13,775,000

252

14,003,00C

-116,100

copper—

refinery

refinery

Lead

Orders

:

ton)
M.

&

14,109,000

—Aug. 25
——-———£1— Aug:-25

(per lb.)—

Scrap steer (per gross

Electrolytic

134

&
Aug. 27

PRICES:

steel

(per gross ton)__

(E.

DUN

—

—

Pig

METAL PRICES

117

(barrels of

output

RAILWAY

Month

Intercity
Aug. 29

AND

Finished

iron

132

oil

consumption
all

AMERICAN

INSTITUTE:

(COMMERCIAL

BRADSTREET, INC
IRON

132

Aug. 22

(in 000 kwh.)

output

FAILURES

INDEX—FEDERAL RESERVE

AVERAGE

145,200

\

_J*
__I

(barrels)

New

Pennsylvania anthracite (tons)

14,900

103,900

\

unit
—

(barrels)
imports (barrels)-

product

Increase

MINES):

lignite (tons)

factory

—.

imports

Indicated

construction

•

f

crude

gasoline output
output ,(barrels)

oil

Refined

NEWS-RECORD:

15,300

INSTITUTE—Month

each)

Benzol

ENGINEERING

—

6,583,200
6,422,700

10,800
1

——II—I—IIIIIIH''

l_

PETROLEUM

lons

634,231

483,610

486,504.

536,430

5,075,700 I

5,782,600
„

July:
L

domestic production

Natural

543,844

y

—

Domestic
<

of that dates]

May:

66,994,000

542,561

of

_■

washer-dryers

——

AMERICAN

132,398,000

56,629,000

--Dryers

27,548,000

147,907,000

(domestic)

Combination

6,710,000

153,122,000

ASSOCIATION—Month
laundry appliance

Washers '

are as

MANUFACTUR¬

home

sales

,

1,791,000

12,004,000

6,313,000.

183,104,000

ERS
Total

RAILROADS:

freight loaded (number of cars).
Z—Aug. 22
freight received from connections (no. of cars)—Aug. 22

Revenue
CIVIL

AMERICAN

181,422,000

28,005,000

2,056,000
11,802,000

.

Stocks at

.

7,892,000

28,750,000

1,£39,000

—.Aug. 21

__

(bbls.)

6,874,735

7,952,000

LAUNDRY

either for thsj

are

of

5,897,300

Manufactured gas sales (M therms)Mixed gas sales (M therms

AMERICAN HOME

6,855,125

of quotations,

cases

ASSOCIATION—For month
.■''■;•<•'

Total gas sales-(M
therms)—
Natural gas sales (M
therms)

.

(bbls. of

in

or,

GAS

June:

.

'11.7

VC'.../

—Z

.

(bbls.)_.

OF

Ago

§12.2

"

Distillate fuel oil output

ASSOCIATION

AMERICAN

§345,000

.Sept.1

tons)

to stills—daily average

Gasoline .output
Kerosene output

>

."

Year

* : "

'

INSTITUTE:

42' gallons each)—
''

(net

Month

Week

production and other figures for th®

cover

Dates shown in first column

that date,

on

5

Sept.

capacity)——

-

month available.

or

month ended

or

Previous

Week

INSTITUTE:

Indicated Steel-operations
(per cent
Equivalent to—
' ' "

following statistical tabulations

latest week

29

OF

527,000

2,316,000

105,872,009
473.000

2,350,000

116,425.440
639,0042,051,563.

MINES)—

June:

2

33.455,000

33,428,000

30.078,000

(barrels)——

36.082.000

32 992.000

30.262,000"

(barrels)-

33,621,000

♦36,527,000

33,350,000

100

96

98

(barrels)

from
end

used

oi

mills

month

(per

cent)

.

Chronicle

The Commercial and Financial

BO

\

(954)

.

.

.

Thursday, September 3, 1959

'

it INDICATES

sale of greeting

Abbott-Warner Co., Inc.

—Goldman, Sachs & Co., New

22, Pa.

Option Plan.
&

Missiles

Acme

Corp.

Construction

Co., Cleveland, Ohio,
26 filed 50,000 shares of common stock, to
fered under the company's executive Incentive

Aug.

per

share.

Discount,

ferred

shares of common stock (par $1),

publicly and
sale to the holders
DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
shares by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
1,000,000 shares are to be offered

of which

431,200 shares are to be reserved for
of 6% debentures due 1962 issued by

for cash

or

for the 6%

debentures of the parent at the

purchased. Price—$1.25

rate of one for each five shares

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment
per

Albertson's, Inc.

(9/14-18)

Aug. 13 filed 300,000 shares of class B (non-voting) com¬
mon stock (par $1) of which 200,000 shares will be pub¬
licly offered and 100,000 shares will be offered to com¬
pany personnel. Price—To be supplied by amendment.
Proceeds—For general corporate purposes including the
outfitting of new supermarkets. Office—1610 State St.,
Boise, Idaho. Underwriter—J. A. Hogle & Co., Salt Lake
City and New York.
t

at

25

cents

sued if the

exercised.

per

share.

These securities will not be is¬

options and subscription agreements are not
Proceeds—For

working capital and surplus
Un¬

of subsidiaries and for general corporate purposes.

derwriters—Allen

Investment

Co., Boulder, Colo.

Allied Colorado Enterprises Co.
July 13 filed 3,000,000 class A common stock (par 25
cents). Price—90 cents per share. Proceeds—For gen¬
eral corporate purposes. Office—Boulder, Colo. Under¬
writer—Allen Investment Co., Boulder, Colo.
'
•

Allied

Petro-Chemicals, Inc. (10/5-9)
100,000 shares of class A common

July

14 filed

(par

10 cents).

Price—$4

stock

share.

Proceeds—To be
added to company funds.
Office—Overbrook Hills, Pa.
Underwriter—Philadelphia Securities Co., Inc., Phila¬
delphia, Pa.
per

American

Beverage Corp.
July 16 filed 950,000 shares of common stock. Proceeds
—The stock is to be exchanged for all the outstanding
capital stock of a group of "Golden Age" companies.
Stockholders on Aug. 10 approved the exchange offer,
and voted to increase the number of outstanding shares
from 250,000 to 2,000,000. Office—118 N. 11th St., Brook¬
lyn, N. Y. Underwriter—None.

shares of common stock

and

related

American

Office—513 Inter¬

^

Mines,

Inc.

150,000 shares of common stock. Price—
Proceeds—To assume and pay an option
held by its Mexican subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned by
Compania Minera La Bufa, S. A., by paying to such
company $50,000; to construct and place in working oper¬
ation a mine, mill and accessories capable of processing
100 tons of gold ore per day estimated to cost $350,000;
payment of about $15,000 of other obligations; to carry
on with the balance of the proceeds an exploration pro¬
gram for additional gold and mineral properties both in
Mexico and the United States. Office — Bank of the
Southwest Building, Houston, Tex. Underwriter—None.
June

filed

29

of

its subsidiary, The Fund Corp.

Minneapolis.

it Associations Investment Fund
28 filed 400,000 shares of common stock.
Price—
be supplied by amendment.
Proceeds—For invest¬
ment in common stocks.
Office—301 W. 11th Street,j
Aug.

$5 per share.

American

&

Kansas

Underwriter-^Jones Plans, Inc., a sub¬

City, Mo.

St. Lawrence Seaway

Land Co., Inc.

8 filed 500,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—To pay off mortgages
and for general corporate purposes. Office — 60 East

July

^

sidiary of R. B. Jones & Sons, Inc.

^Australia (Commonwealth of)
(9/17)
Aug. 28 filed $25,000,000 of 20-year bonds due Sept. 15,
1979. Price—To be supplied by amendment/ Proceeds—
various

Underwriter—Mor-/

Stanley & Co., New York.

works projects.

public

Pastoral Co., Ltd.

Australian Grazing &

(par .10

Proceeds—For con¬

expenditures.

ing the offering.

Price—
share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes^
At

4,000,000 shares of common stock.

13 filed

Jan.

(56*4

par

cents

Office —1301

Avenue

Cisco, Texas.

L,

Underwriter

—

Kamon is President.

Robert

None.

per

Babcock Radio Engineering,

Inc.
100,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes including the reduction of
bank
loans, for additional working capital, and the
carrying of larger inventories.
Office—1640 Monrovia
Avenue, Costa Mesa, Calif. Underwriter—Schwabacher
& Co., San Francisco, Calif. Offering—Expected in Sep¬
filed

July- 29

V

tember.

Bankers Preferred Life Insurance Co.

notiifcation) 100,000 shares of common
Price—$3 per share. Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,

Jan. 30 (letter of
stock

(par $1.60).

Colo.
Basic

Materials, Inc.
(letter of notification) 1,200,000 shares of com¬
mon stock
(par 10 cents). Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
Roberte, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,

April 9

—

42nd

Street, New York.
Co., Inc., New York.
American States

Underwriter—A. J. Gabriel &

Insurance Co.

class

and

be

added

B

stock

held

as

of

the

record

date.

Price

by amendment.
Proceeds — To be
general funds of the company.
Office—

supplied
the

to

Street, Indianapolis, Ind.
Under¬
writer—City Securities Corp., Indianapolis, Ind.

542

North

Meridian

Ampal-American Israel Corp.
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3,000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬
pected sometime during September.
it Anderson Electronics,

Beico

Petroleum

(9/21-22)

Corp.

filed $7,200,000 of 5.83% convertible subordi¬
nated debentures, due 1974, and 400,000 shares of common
14

Aug;

stock
stock.

ceeds

to be offered in units, each unit consist¬

(par $1)

of

ing

$36

of

Price
-—

For

debentures and two shares of common
To be supplied by amendment.
Pro¬
general corporate purposes, including re¬

—

payment of all existing debts to banks. Office — 630
Third Ave., New York. Underwriters—White, Weld &

Co.,

and

Goldman,

Sachs & Co., both of New York.

it BEM Photocopy Manufacturing Corp. (9/30)
Aug: 27 (letter of notification) 100,000 shares of capital
stock (par five cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Office—42 W. 15th St.,
New

Underwriter—Myron A. Lomasney &

York, N. Y.

Co., New York, N. Y.
Berens

Real

Estate

Investment Corp.

filed $1,200,000 of 6y2% debentures, due 1969,
80,000 shares of common stock (par $5). Price—$500

July 31
and

Inc.

Letter to be amended.

N. Mex.
•

(9/15-30)

filed 108,144 shares of class A stock (par $1)
limited voting, to be offered for subscription by holders
of outstanding class A and class B stock at the rate of
one
adidtional share for each four shares of class A
3

Aug.

—To

Allied Colorado Enterprises Co.

July 13 filed 5,899,618 shares of class A common stock
and 551,140 shares of class A-l common stock for issu¬
ance under outstanding subscription agreements at 75
cents per share and 6,576,200 shares of class A common
stock for issuance under outstanding option agreements

600,000

New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La.
The SEC
had scheduled a hearing, to begin on Sept. 2, which will
determine whether a stop order will be issued suspend¬

i

Marquette Ave., Minneapolis, Minn. Underwriters—

523

gan

Inc.

national Trade Mart,

Priceeds—For general corporate purposes, in¬
cluding the providing of funds for expansion. OfficeAkron, Ohio. Underwriter—Paine, Webber, Jackson &
Curtis, New York.

shopping center in St.

Anthony, Minn., and other real estate dealings. Office—

For

Syndicate,

Price—$12 per unit.

($9).

struction

ment,

Feb. 25 filed 1,431,200

Investors

Underwriter—None.

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting
of 3' shares of common ($1 each) and 1 share of pre¬

1,

Alaska Mines & Metals Inc.

filed

25

June

1974, which will be convertible into common
stock, and in addition filed 150,000 shares of common
stock. Price—To be supplied, together with the interest
rate on the notes and the underwriting terms, by amend¬
Sept.

one

American

capital notes, 1959 issue, due

Aug. 12 filed $1,000,000 of

of nine shares of American
share of Massillon common. Office—
basis

the

on

Ridge Avenue, Evanston, 111.
Statement effective July 29.

(9/14-16)

Inc.

Supply Corp.

2020

Lomasney & Co., New York.
&

Hospital

for

common

Proceeds—For general corporate

including additional personnel, office space,
and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
Road, Oceanside, L. I., N. Y.
Underwriter— Myron A.
Investment

Co.

Rubber

a

ISSUE

To

American

equipment,

Aid

Stock

Office—102 Washington Street, New Brit¬

April 20 filed 20,610 shares of common stock (par $2) to
be offered in exchange for common stock of Massillon

^purposes,

r

be of¬

ain, Conn.

(9/11)

REVISED

made into

to be

land

of

ment

PREVIOUS

ITEMS

The issuing company and

it American Hardware Corp.

July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for public sale
for the account of the company, and 50,000 shares will be
offered for the accounts of the present holders thereof.
Price—$6

Underwriters
York, and McDonald &

cards and gift wrappings.

notification) 62,500 shares of common
stock (no par).
Price—$2.70 per share.
Proceeds—To
prepare estimates and to submit bids, as a prime con¬
tractor on specialized construction projects. Underwriter
—Strathmore Securities, Inc., 605 Park Bldg., Pittsburgh
Aug. 12 (letter of

•

.

ADDITIONS

SINCE

Registration

Securities Now in

'

.

unit, each unit to consist of $300 of debentures and
Proceeds—For working cap¬
Office—1722 L Street N. W., Washington, D. C. Un¬
derwriter—Berens Securities Corp., same address.

(letter of notification) 180,000 shares of class A
non-voting stock and 20,000 shares of voting common

per

stock, the latter to be offered to purchasers at ratio of
one share of common for each 20 shares of class A stock

ital.

Aug. 24

purchased.

Price—$1

per

share.

Proceeds—For general

corporate purposes. Office—1012 Chestnut Ave., Altoona,
Pa. Underwriter—None.

it Anglo Murmont Mining Corp., Ltd.
1 filed 250,000 shares of common

Sept.

—Initial
used

to

stock.

Price

price of 40 cents per share. Proceeds—To be
pay for exploration and development of mines
of the funds will be added to general funds of

and

rest

the

company

Prince

and used for working capital.
Office—
Albert, Saskatchewan, Canada.
Underwriter —

None.

20 shares of common stock.

•

Beverages

Bottling Corp.

(9/22)

,

July 6 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For construction or purchase of additional facilities for
the manufacture,
ages.

warehousing and distribution of bever¬

Office—800 St. Anns Avenue, Bronx, N. Y.
Un¬
Management, Inc., 11 Broadway,
York, N. Y.

derwriter—Financial
New

Bostic

Concrete

Inc.

Co.,

(letter of notification) $250,000 of 8% convertible
debentures due July 1, 1969 and 10,000 shares of class A
June 19

in units of one
A common stock.

common

of which 4,545,455 shares of this stock are to be offered
for public sale at $1.75 per share.
[Shares have been
issued or are issuable under agreements with various

Apache Oil Corp.
cV- »■
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock
(par $1.25). The offering is being made
only to the stockholders of the company. Each subscrip¬
tion to a unit in Apache Oil Program 1960, will entitle
the subscriber to subscribe also to 200 rights for the

policy holders in American Buyers Life Insurance Co.

purchase of

one share per right of the company's $1.25
value common stock. Warrants evidencing the rights
will be nontransferable prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962. Unless
Apache Oil Program 1960 commences operations on or
before June 30, 1960, all unexercised rights will be void
as
of 2:00 p.m. (CST) on that date, and their purchase
price will be refunded. Price—$12,000 per unit., Pro¬
ceeds— For general corporate purposes.
Office — 523

Aug. 24 filed $2,500,000 of

and American Life Assurance Co. (both of Phoenix) per¬
mitting them to purchase stock at $1.25 per share. Sales

par

Participation Agreement in Associates Oil and

American Buyers Credit Co.
Nov. 13, 1958, filed 5,000,000 shares

of

common

stock,

personnel have been given the right to purchase stock
at $1.25 per share up to the amount of commission
they
receive

on stock sales made
by them.] Proceeds—For the
operation of other branch offices, both in Arizona and

in

other states.

Ariz.

Office

2001

—

East Roosevelt,

Phoenix,

Underwriter—None.

* American Greetings Corp.,

Cleveland,

Marquette Avenue,

Ohio

28

filed

$5,000,000

of

20-year

dinated debentures due Oct.
1,

plied by amendment.
loans

and

for

general

Proceeds

1979.
—

corporate

The company is
engaged in the




convertible

To

subor¬

Price—To be
retire

purposes.

Minn.

Underwriter—

(par $1)

to

be

offered

Price—$600 per unit. Proceeds—To pay obligations and
for working capital.
Office — 1205 Oil Centre Station,

Lafayette, La. Underwriter—Syle & Co., New
Bradco

1960

Associates,

sup¬

short-term

Business—

design, manufacture and

participating interests under a
Gas Ex¬
ploration Program. Price—$10,000 per unit. Proceeds—
For the acquisition and exploration of undeveloped oil
and gas properties. Office—Bank of the Southwest Bldg.,
Houston, Texas. Underwriters — The offering is to be
made on a best efforts basis by 2338 Sales, Inc. (an affil¬
iate of the issuing company) and certain company offi¬
cers, including W. H. Hendrickson, Board Chairman.
Brush

Beryllium Co.

(9/16)

Aug. 20 filed $6,500,000 of convertible

Apache Realty Corp.
Aug. 13 filed $1,500,000 of 6% subordinated debentures
and 360,000 shares of common stock (par $1). Price—
$6,200 per unit of five debentures and 1,200 shares of

bentures, due 1974. Price—To be
ment. Proceeds—To retire funded

common

stock. Proceeds—For the purchase and develop¬

York, N. Y.

Inc.

APA, Inc., the corporation's subsidiary.

(9/29)

Aug.

Minneapolis,

stock

$500 debenture and 20 shares of class

subordinated de¬

supplied by amend¬
debt; for expansion;
and for general corporate purposes. Office—4301 Perkins
Ave.. Cleveland. Ohio. Underwriters—Kuhn, Loeb & Co.
of New York, and McDonald & Co. of Cleveland. •

Volume

•

Number 5878

190

.

.

Bzura Chemical Co., Inc.

offering.

(9/21-25)

12

new

a

Corp., Far Hills, N. J.
Aug. 18 filed 1,500,000 shares of class A stock (par $1)
and 225,000 shares of class B stock (60c par).
The 225,000 shares of class B stock are not being offered for
be

may

issued

commission

as

in exchange

Price—At par

of

a

class

of class A

shares

(par $5) and 6,468 shares of class B com¬
(par $5) to be offered in units of one share

A

of

shares

49

and

common

class

B

common;

$50,000 of 15-year 1%% promissory notes to be offered
in multiples of $250; $35,000 of nine-year lVz% prom¬
issory notes to be offered in denominations of $5,000
each
to

pilot plant; for measuring ore; for assaying;,and for

and

lx/z% promissory notes
multiples of $10 each. Price—Of stock,

$75,000 of eight-year

be offered in

$250 per unit; of notes, at par. Proceeds—For construc¬
tion
and
operation of a hotel.
Office—363 N. First

general corporate purposes. Office—3955 South StatgSjL,
Salt Lake City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.
r

Avenue,
•

Underwriter—None.

Phoenix, Ariz.

Central

Capital Shares, Inc.
*
Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
—To be supplied by amendment.
Proceeds—For invest¬
ment in the securities of companies engaged direcfe or

Corp. (9/14-18)
Aug. 3 filed 200,000 shares of common stock (par 10c).
Price—$3 per share. Proceeds—For manufacturing and

indirectly in the life insurance business. Office—ItQjTilfiam Street, New York. Underwriter—Capital Sponsors,

repay

Inc., New York.

ic Central

.

•

sales

10

each

will

unit

prior

determined

be

the ^f^Slic

to

•*3gK£»

York.

(Offering

'

Control Data Corp
CSmtfron
(Offering to stockholders—underwritten by Dean WittefvSPtCo.)
93,594' shares

Construction

Products

__1—Common

Financial Corp

Empire

Dempsey-Tegeler &

shares

260.000

Co.)

"

Co.,

&

$1,500,000

(William

Staacs &

R.

iMilton

D.

Co

St

Blau»'*>r

(Willis

Burnside

E.

(Myon

Lonaasnty

A.

Products,

Co.,

&

(Stroud

'

3500,033

Co. t

St

snares

Redpath >

P.rkcr &

States

United

inI

Kahn

Electronics,

(G.

Georgia

......Cc&tanon

September 9

i

(Bids

33 150,000

COT)

noon

Community Public Service Co
(Bids

11

|

Holman

A.

$156,250

Inc.;

J>..

&

100,000 shares

(McDonald & Co.)

(Thursday)

10

M. Jorgensen Co.

Earle

•

Blyth

...

Inc

Co..

Si

150.000

•

shares

...Conimon

Heritage Corp. of New York
B-m'-ack

(Golkin.

and

Co.

Ryons

St

Radio

Frequency Co.,

Research

York

invited)

id

shares

1,033.602

Lomasney

A.

«

Cliss A

Corp

(Myron

-

■

(P.

•

Co.)

&

$450,000

Brooks

Brooks

& Construction

Missiles

Acme

A.

(Myron

Lomasney

&

Corp

Co.)

_

New

A.

Hogle

(Alkow

Co.)

&

Maikan

Inc.; James Anthony Securities Corp.;

Co.,
F.

Foto-Video

\ '

$600,000

Co.)

Common

W.

Schwerin

Palm-Aire

(Hardy

&

—

St

Co.

&

Alex.

and

(Arnold

Malkan

t

Co.)

Inc._,
Co.)

Common

National

Cleveland

Corp

England Telephone Co

$600,000

Common

(Offering to stockholders—no underwriting) $24,115,000




Common

Corp

Inc.) 80,000 shares

.Common

St

Co.)

Common

...

Inc.)

$300,000

Common
Forgan

St Co.)

425,000 shares

Philadelphia

Inc.)

$300,000

Common

Harnischfeger Corp.
Finance

Pacific
(Blyth

First

&

Co., Inc.

Boston

(Bertner

Corp.)

200,000

shares

Common

Corp
and

Space Components,
Bros,

Western

Hornblower St

Weeks)

and Earl

160,000 shares

Common

Inc
Edden

Co.)

$200,000

Bonds

Telegraph Co

11

American

Bonds

Electric Co

a.m.

EDT)

$8,000,000

(Thursday)

22

Electric Power Co
(Bids 11 a.m. EDTi 1,200,000 shares

(Bids

to

invited) $20,000,000

be

(Wednesday)

& Light Co

Puget Sound Power
(Bids

be invited)

to

November 17

to

(Bids 11

(Tuesday)

received)

Bonds

Co
a.m.

EST) $16,000,000

December 1

Consolidated Edison Co. of
to be

Debens,

$250,000,000

(Tuesday)

24

November

.Bonds

$20,000,000

& Telegraph Co

be

Gulf States Utilities

(Bids

Bonds

Co..

Florida Power & Light

Common

(Tuesday)

27

October

Debs.

$70,000,000

(Wednesday)

Massachusetts
October

✓

$50,000,000

invited)

be

to

Corp.__Common

$340,000

(Tuesday)

20

October 21

(Bids

Common

Co., Inc

Co.)

(Wednesday)

Southern Bell Telephone &
(Bids

H. Walker 8i Co.)

(Monday)

Invited)

be

to

Common

(Mo.)

Co

Electric
(Bids

October

American Telephone

(Wednesday)

(Summit Securities,

&

October 28

(Tuesday)

Management,

Debentures
$25,000,000

Manufacturing

shares

80,000

Bottling Corp

(The

Debentures

Common

rights

Debentures

$5,000,030

St. Louis

of

(Schweickart

(Bids

8850,000

1,467,120

EDT)

a.m.

Peaoody

Fredonia Pickle

$750,000

(Merrill, Turben & Co., Inc. and Loewi St Co., Inc.)

Southern New

Common

*400,000

(Thursday)

invited)

be

October 14

.Common

Corp

underwriting)

to

Electronics

222,060 shares

September 23

'V:

Common
Brothers)

Shell

$45,000,000

EDTi

Co.;

Inc »

Inc

Corp.)

Co.,

St

.

(Tuesday)

6

(Offering to stockholders—underwritten by G.
45,000 shares

120,000 shares

Heublein, Inc.

$1,780,000

Matronics, Inc.
(Vermilye

11

(Glore,

$300,000

& Sons;

Common

Inc

Securities Co

Communications,

Manchester Bank

$750,000

Inc.)

England Telephone Co

(Financial

Common

Goodbody

Laboratories,

and

Preferred
$1,000,000

Co., Inc.)

Brown

September 22

$1,000,000

Co.)

Corp

(Monday)

5

Columbia Gas System Inc

Common

noon

Materiel

Beverages

82,700,000

Inc.)

Co.,

October 8

shares

60,000

Inc..

Brooks &

(Kidder, Peabody & Co.,

200,000 shares

$300,000

.....Debentures
&

(Philadelphia

Common
Redpath >

&

Waddell & Reed, Inc..
(Kidder,

Common

Corp

(Thursday)

1

October 12

Inc..

(No

(Bids

Technical

Co.)

&

Preferred & Class A

Petro-Chemicals,

shares

89,773 shares

Inc.)

Development

Southern New

Common

(Arnold

Florida

&

Corp.

Entron, Inc.

/'f

240,000

.——Common

Securities,

(Bids

Common

Albertson's, Inc.
(J.

-./</"

$1,000,000

Inc.)

...Common

Random House,

Southeastern

•

Common

Turner,

W.

P.

and

Co.

&

(Wednesday)

150,000 shares of each

Inc.)

Co.,

(Blair

England Telephone & Telegraph Co.__Deben».

./Jyotes

Inc

(Paine, Webber, Jackson & Curtis)

Central

'^3

&

(Bids

$2,400,000

Inc

Dickson

.Common

$1,200,000

(Monday)

September 14
Aid Investment & Discount,
*.

/.'/

(Friday)

Common

Inc.)

Co.,

Research,

&

and

(Mallocy

S.

$30,000,000

Co.

shares

Dooley Aircraft Corp

(R,

$5,000,000

St Co.)

Bonds

Lomasney

A.

October

Bonds

Co..

&

iAllen &

September 11

&

Parker

Chemical
Co.

Debentures

PDT)

a.m.

October

& Co.) $7,200,000

250,000

Co.)

St

Co., Inc

(A'ichincbss,

&

(Tuesday)

Manufacturing

Photocopy

Electronic

Crowley's Milk Co., Inc

(Hardy

$500,000

Inc.)

Qorp^

8:30

(Myron

Allied

Inc

(Eppler, Guerin &

Dixon

Common

Co

Co.,

St

October

(Monday)

Goldman, Sachs

Co.,

W.

W.

Common
200,000 shares

Co.)

St

September 30
BEM

..Debentures & Common

Central Transformer Corp

Fair Lanes,

Common

to be

:

...Cotumon
$300,000

Co.)

&

Co

(Bids

$^50,000

Inc.)

Durst,

St

Inc.__

Lomasney

A.

(Myron

Electric

Union

Chemical

..Debentures

Co

Wagenseller

(Lester,

$300,000

Co.)

x

Outdoor Advertising

Pacific

-M
Common
7/ |

Weld

Insurance

Sachs & Co.'^and McDonald

sstares

246,500

Co.)

St

Podesta

Chemical
(?.

'
vH—

September

(Goldman,

shares

Southern California Gas Co

Preferred

Transportation Inc

Bzura

..Coijrimon

Monarch Marking System Co.____

*

-w—Common

and

& Co.

Bzura

/■&'.]

.>

Weld

(Cruttenden,

..Common

Concert Network, Inc
(R.

(White,

Buckingham

Common
400,00C

Inc.)
>

(Laird

j

—Common
$600,000

Inc

Greetings

Pantasote

S18.000.0|0

September 21

Vrrtrrmi

_

$3,000,000

EDT»

m

a

Stuart St

Halsey,

(Monday)

Co.)

St

Co.,

(Kay

$4,000,000

Co.)

EDT)

Belco Petroleum Corp

...'

"s,

&

(White,

Life

Service

(Blair

Wednesday*

Burlington & Quincy RR.__Eq. Trust^Cifs.

and

$25,000,000

Inc

Co., Inc

Co.)

825,0.0,000

& Co. i

a.m.

Sachs

page

Debentures

Inc

Curtis

&

Inc.)

Industries,

Bonds

of)____

St

Jackson

/
11

(Goldman.

Chicago

Webber,

Airlines,

(Thursday)

Hoerner Boxes, Inc

,

on

(Thursday)

Products,

Magnuson Properties, Inc

Powei
(Bids

Was.ernun St yc>. )

m_:i,
$1.44 J,0 JO

Electric

(Bids

—Debentures

17

Walicer

H.

Continued

$700,000

Co.)

St

General Contract Finance Corp

$225,003

Lie.)

n-e.

Inc.-

and t'r

(Amos Tr .at St Co., Inc.

Plohn

Corp.__

(Morgan Star>l:y

Coupon

Inc

Communications,

(Heft,

Welling'on

$6,500,000

Co.)

St

Loeb

(Commonwealth

t

$1,030 730

debentures

Underwriter—None.

September 29

—Debentures

September
Australia

Del.

also be used to retire outstanding subordi¬
not exchanged.
Office—Georgetown,

may

nated

American

$25,000,000

-Debentures

Auchmaloss,

and

Inc.

118,270

Inc.)

Corp

ceeds

125,000 shares

(Offering to stockholders—underwritten by Smith, Barney St

~

initially applied to the reduction of
one year.
Part of the pro¬

but will be

short-term notes due within

Common

(Charles

notes, etc. Underwriter—None.

repay

Acceptance Corp.
June 29 filed $600,000 of series F 6% five-year subor¬
dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,
at face value, on the maturity dates of those securities
so
long as there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—
To increase or maintain the working capital of the com¬

National

(Wednesday)

Corp

Chemical

cable; to

a

Citizens'

Common

Kuhn

and

struct

(Blair

Co.)

Coi^nion

C"'..

Sc

Tex-Star Oil & Gas

Steel

Hooker

Corp._C^ggmon

Inc

(Lcewi

3ta-Rite

Edward

.^Ce^wnon
shares^.-.

200 000

>

Business Equip.

White &

by

Co

Co.

&

—

Inc

Co..

&

(McDonald

share*?#''

50.000

Inc.)

New West Amulet Mines Ltd
Nord Photocopy &

Brush Beryllium

Cdtflmon

Telephone Co., South China, Maine
(letter of notification) 2,000 shares of preferred
stock to be offered for subscription by stockholders and
the company's subscribers; unsubscribed shares to the
public. Price—At par ($25 per share). Proceeds—To in¬
stall a dial exchange at East Vassalboro, Maine; to con¬

(Dunne

$300,000

Co.)

&

September 16

shares

110,000

Cx)

Microwave Corp

Narda

China

Aug. 7

Guerdon

Common

(Blyth & Co., Ine.)

.

Cortimon

Lytton Financial Corp

Proceeds—To retire in part
Office—1758 La Cienga Blvd.,

loans.

Gateway

-—Common

(Simmons

share for each 10 shares

new

Calif. Underwriter—None.

$300,000

Co.)

West Coast Telephone Co

LunV^- Co.)

D.

(Scherck, Richter & Co.; Burnhim St Co. and S,

bank

current

Los Angeles,

one

share.

per

t

Transdyne Corp.

Debentures

Long Mile Rubber Co._____

its

Price—$4

September 28

Common

Inc

stockholders—underwritten

to

holders at the rate of

Co.

$303,902.50

$300,000

Inc.)

&

Sherman

D.

Century Properties
(letter of notification) 33,880 shares of common
(par $1) to be offered for subscription by stock¬

,

stock

(Paine,

Securities

$750,000

Corp.)

Shake, Inc.

(Offering

-

~

Cbfhlfton

Georgia-Bonded Fibers, Inc
(Sandkuhl

Steak'n

new

a

purposes

Aug. 5

Common

Laboratories,

(L.

$600,000

Co.)

&

Lomasney

A.

(Myron

equip

September 24

Corp

Securities

(Clayton

Electro-Sonic

.Common

plant in Florida, and for
including working capital.
West Sixth St., Pine Bluff, Ark.
Under¬
writer—Eppler, Guerin & Turner, Inc., Dallas, Texas.

Sylvania

Common

.

Dynex, Inc.

and

corporate

Office—2400

(Tuesday)

15

stockholders—underwritten by City
Corp.) 108.144 shares

to

(9/21)

Corp.

CALENDAR

ISSUE
September

Transformer

construct

general

pany

Co.

& Gas

American States Insurance Co

_____

Associates)$300,OCO

St

of subsidiaries; to

(letter of notification)

NEW
Oil

■—

(Williams

Electric

(Tuesday)

September 8
Collier Acres, Inc

working capital,

12,500 shares of common
stock (par $5) to be offered to employees of the com¬
pany or its subsidiaries.
Price — $19 to $24 per share.
Proceeds—For general corporate purposes.
Office—144
S. 12th St., Lincoln 1, Neb. Underwriter—None.

The number ofv$ftdres

cents) to be offered in units.

and

loans. Office—1315 Dixwell Ave., Hamden, Conn.

Aug. 19

Chemicals, Inc.
July 28 filed $3,500,000 of subordinated debentures/due
Sept. 1, 1979 and 205,000 shares of common stoctes^par
in

facilities

Underwriter—Arnold Malkan & Co., Inc., New

Cary

Central

held.

stock

stock

mon

'California Metals Corp.
July 27 filed 2,500,000 shares of common stock. Price-^
At par (20 cents per share). Proceeds—For construction
of

& Trust

common

'

the class A stock only.

Chemical

★ Castle Hot Springs Hotel, Inc.
Aug. 20 (letter of notification) 132

Agent—Dewey &
"best efforts" baslS&fbr

a

today

Bldg., Dallas, Texas. Underwriter—Pear¬
Murphy & Co., Inc., New York.

son,

for "property interests."

Grady Inc., Far Hills, N. J. on

Expected

—

•

Aug. 20 filed 98,750 shares of common stock, of whicfy
89,773 shares gre to be publicly offered. Price—To be
supplied by amendment. Proceeds—To retire debentures,
to

Casco

Bank

connection

in

Offering

York.

Corp.
July 10 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For marketing of "Resistolox 20," (an anti-oxidant) and
for general corporate purposes.
Office—207 American
.

Cador Production

but

New

of

Under¬
& Co.,

(Sept. 3).

Fieldsboro, N. J. Office-

with the distribution of the class A stock.

both

Inc.,

Broadway and Clark Streets, Keyport, N. J. Underwriter
—P. W. Brooks & Co., Inc., New York.

sale,

general

Proceeds—For

unit.

per

purposes, including working capital.
writers—Lee Higginson Corp/and P. W. Brooks

filed

plant in operation in

.Price—$500

corporate

$2,400,000 of QVz% first mortgagevbonds,
due 1979' and 240,000 shares of common stock (par 25
cents), to be offered in units consisting of $500rprin¬
cipal amount of bonds and 50 shares of common stock.
Price—$500 per unit. Proceeds—To be used for placing

Aug.

(955) * 31

The Commercial and Financial Chronicle

.

(Tuesday)

New York,

invited)

$50,000,000

Inc.—Bonda

32

32

The Commercial and Financial Chronicle

(956)

market

Continued from page 31

price at the time of sale. Proceeds—For general
purposes, including working capital. Under¬

r

Co,
July 30 (letter of notification) 120,000 shares of common
etock (no par). Price —$2.50 per share. Proceeds —For
working capital. Office—1005 Northeast Broadway, Port¬
land, Ore. Underwriter—R. G. Wilkams & Co., Inc., New
City Discount & Loan

York, N. Y.
Electronics, Inc.

-

stock (par $1)
offered to common stockholders on a basis of one
for every three shares held as of Aug. 21, 19o9;
to expire on Sept. 9, 1959. Price—$5.25 per share.

July 20 filed 353,535 shares of common
being
share

rights

reduce

Proceeds—To

outstanding indebtedness, for ex¬

pansion, and for working capital.
Office—San Diego,
Calif. Underwriters—Hayden, Stone & Co., and Winslow,
Cohu and Stetson, Inc., both of New York.
Aug.
mon

(letter of notification) 300,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—To
17

purchase properties; advertising and for working capital.
Underwriter—Williams & Associates, Newark, N. J.
Co.

Water & Power

Colorado

(letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common
(par $1) to be offered in units of $200 of deben¬
and one share of stock.
Price — $205 per unit.
Proceeds—For working capital.
Office—Suite 421, 901

otock

tures

Colo.

Cherman Street, Denver,

Development Co.

Columbian Financial

Aug.

Plans for Investment in
which $500,000 was for

of

$1,000,000

filed

14

Shares in American Industry, of

Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans and. Systematic Investment
3Plans With Insurance. Office—15 East 40th Street, New
York.
Underwriter — None. Offering — Expected some

Mining Corp. Ltd.
April 17 filed 260,000 shares of common stock.
80 cents per share.
Proceeds—For exploation
Office—2100 Scarth St., Regina, Saskatchewan,
Underwriter
Cumberland
Securities
Ltd.,
Regina.

Commerce Oil

Refining; Corp.

16,1957 filed $25,000,000 of first mortgage bonds dut
FJept. 1, 1968, $20,000,00 of subordinated debentures du«
Oct. 1, 1968 and 3,000,000 shares of common stock to b«
•Dffered In units as follows: $l,00u of bonds and 48 share*
of stock and $100 of debentures and nine shares of stock
ifrice—To be supplied by amendment. Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
York.

Investors

Corp..
ftfov. 28 (letter of notification) 900,000 shares of comimon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For investment.
Office—450 So. Main St., Salt
ILake City, Utah.
.Salt

Underwriter—Earl J. Knudson & Co.,
City, Utah.

Lake

Community Public Service Co. (9/9)
Aug. 7 filed 30,000 shares of cumulative preferred stock,
(par $100).
Proceeds—To repay outstanding

series A

bank loans, which

incurred for extensions and

were

im¬

property made in 1959 and for con¬
Underwriter—To be determined
by competitive bidding. Probable bidders: Kidder, Peabody & Co. and White, Weld & Co. (jointly); Eastman
f)illon, Union Securities & Co.; Stone & Webster Secu¬
rities Corp. Bids—Will be received up to 11 a.m. (EDT)
on
Sept. 9, 1959 at 90 Broad Street, 19th Floor, New
York, N. Y.
provements

to

struction

progress.

in

Concert

Network, Inc. (9/9)
Aug. 10 (letter of notification) 125,000 shares of common
«tock (par 10 cents). Price—$1.25 per share. Proceeds—
Vo discharge outstanding debts and for working capital.
•Office—171 Newbury St., Boston 16, Mass.
Underwriter
—R. A. Holman

&

Co., Inc., New York, N. Y.

iftr Consolidated

Development Corp,.
Aug. 28 filed 448,000 shares of common stock, of which
198,000 shares are to be offered to holders of the issuing
-company's 6% convertible debentures, and 100,000 shares
«tre

to be offered to the

150,000

shares,

above not

the

in

For

—

the

tiolders, 75 cents
at

which

underwriter, with the remaining
addition to those shares described

subscribed

underwriter,

l»rice

the

for

by the debenture holders and

respectively,
shares
per

to

to

be

be

offered

publicly
to

the

offered.

debenture

share, which is equal to the price

debentures

are

convertible

into

common

.stock; for the shares to be offered to the underwriter, $1
«jer share; for the shares to be offered to the public, the
f>rice will be related to the current price of the out¬

standing shares on the American Stock Exchange at the
time of the offering. Proceeds
For general corporate
purposes.
Qffice—Calle .23, No. 956, Vedado, Havana,
Cuba. Underwriter—H. Kook & Co.,
Inc., New York.
—

Construction

Products

Corp., Miami, Fla.

(9/15)
Aug. 25 filed 250,000 shares of class A common stock (par
$1), of which 200,000 shares will be sold for the account
of certain selling stockholders and
50,000 shares will be
sold for the company's account. Price—$3
per share. Pro¬
ceeds—For working capital.
Underwriter—Clayton Secu¬
rities Corp., Boston, Mass.
•
„

Control

Data

17 filed

Aug.
cents)

Corp. (9/8)
99,594 shares of

to be offered to

common

common

stock

stockholders

(par

50

of record

Sept. 3, 1959, on the basis of one new share for each
eight shares then held, with an oversubscription privi¬
lege; rights to expire on or about Sept. 22. Price—To
be supplied by amendment. Proceeds—For
general cor¬
porate purposes, including working capital. Office—501
Park Ave., Minneapolis, Minn. Underwriter—Dean Wit¬
ter & Co., New York.

it Cordillera Mining Co., Grand Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital stock, of which
2,179,800 shares are to be offered solely to the holders
of previously-issued options. These
shares, together with
the remaining 2,055,000
sale

by

market

the
from

Crescent Petroleum

holders

shares,
thereof

time to time.




may be offered for

in

progam.

Canada.
also
of

the

public

over-the-counter

Price—To be

related

to

the

123

12,559 shares of common ($1 par), 34,460
preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on Aug. 6,
$25 par)

1958.

Way, Syosset, L. I., N. Y. Underwriter—Myron A.

Edward Steel Corp., Miami, Fla.

(9/16)

July 8 filed 140,000 shares of common stock (par' 10
cents). Price—$5 per share. Proceeds—To repay loans,
to acquire property and equipment, and for working

Underwriter—Charles Plohn & Co., New York.

capital.

ic E. H. P. Corp.
Aug. 31 filed lb'0,000 shares of Capital stock, of which
100,000 shares are to be publicly offered/ Price—$2.50 per
share. Proceeds—To provide funds for the purchase of.

Corp., Tulsa, Okla.
convertible pfd. stock

and

ihares of the

Underwriter—None.

Crowley's Milk Co., Inc. (9/21)
March 26 filed 60,000
outstanding shares of common
itock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders.
Office—145 Conklin

vending machines, and for

a public relations and pub-licity program. Office—Hotel Troy Building, Troy, NewJ
York. Underwriter—John R. Boland & Co., Inc., New
York.
'
'
i*

ic Eichler Homes, Inc. (9/21-25)
18 filed 75,800 shares of common stock (no par).
Price
To be supplied by amendment.
Proceeds — Tof
Aug.

—

Auchincloss,

Office—2001 Ei Camino Real, Palo
Alto, Calif. Underwriters—J. S. Strauss & Co. and York
& Co., both of San Francisco, Calif. •
•

Crusader Oil & Gas Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to

Aug. 14 (letter of notification) 100,000 shares of common

stockholders

To retire

Ave., Binghamton, N. Y,
Underwriter
Redpath, New York.

—

of

record

remaining
658,387 shares will be offered publicly by the under¬
writer on a "best efforts" basis.
Price—To be supplied
by amendment. Proceeds—For repayment of notes and
tor working capital. Underwriter — To be supplied by
May

15,

1959.

The

amendment.
Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50).
price—$10 per share. Proceeds—For general corporate

including salaries,

cars, promotion, inventory,
offices, expenses incidental
business in other states,
and the establishment of a contingency reserve.
Office
—1420 East 18th Avenue, Denver, Colo.
Underwriter—
purposes,

branch

obtaining permission

to

do

None.
•

Desert Inn Associates

Aug.

7 filed $3,025,000 of participations in partnership
interests in associates. Price—$25,000 per unit. Proceeds

—$2,875,000 to
chase

Offering—Indefinite.

Commercial

•

Price—

May 26 filed 48,460 shares of 5%

to

JOec.

—

Lomasney & Co., New York.

Cree

the establishment of

October.

lime in

equipment, and expansion. Office

Eileen

Parker &

Feb. 25

new

Thursday, September 3, 1959

writer—None.

•

(9/8-11)

Inc., Miami Beach, Fla.

Collier Acres,

•

of

..

corporate

—

Cohu

chase

.

of

which

will

the

supply

Wilbur

cash

necessary

to

the

pur¬

Clark's

Desert Inn, Las Vegas, Nev.,
$7,000,000 balance to be covered
by mortgages; $200,000 for disbursements in connection

leave

the

with the transaction. Office—60 East 42nd

St., New York.
Offering—Expected before Sept. 15.

Underwriter—None.

Development Corp. of America
29 Registered issue.
(See Equity
below.)

June

•

Corp.

Gilbert's

Leasing & Development Corp,.
5.%% convertible de¬
bentures, due July 15, 1979 and 1,056,000 shares of com¬

stock (par one cent) to be offered in units consist¬
ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20 per unit. Proceeds—For
repayment of notes; to develop and construct shopping
mon

and

oontracts

a

and

super-market
for

working

Company formerly

known

under

existing

purchase

capital.
as

Name Changed —
Gilbert's Properties, Inc.

Office—93-02 151st
S.

D.

late

Fuller

&

Street, Jamaica, N. Y. Underwriter—
Co., New York. Offering—Expected in

September.

Dixie

Natural

•

Eectro-Sonic

stock

Laboratories, Inc.

10 cents). .Price—$3

(par

(9/15)
share.

Proceeds—

outstanding bank loan; to increase inventories;

for sales and

promotional activities; to improve produc¬
and to acquire new and improved tools
and machinery; for development and research and for
working capital. Office — 35—54 Thirty-sixth St., Long
Island City, N. Y. Underwriter—L. D. Sherman & Co.,
New York, N. Y.
facilities

tion

• Electronic Communications, Inc. (10/6)
Aug. 28 filed $5,000,000 of subordinated debentures, due
Sept. 15, 1974 (with warrants for purchase of 20 shares
of common stock for each $1,000 of debentures). Price—
To be supplied by amendment. Proceeds — For general
purposes,
including the repayment of out¬
indebtedness, the completion of construction,
and the purchase of additional equipment. Office—1501
72nd St., North, St. Petersburg, Fla. Underwriter—Laird

corporate

standing

&

Co., Corp., Wilmington, Del.
Electronic

Data
Processing Center,
Inc.
(letter of notification) 17,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To pay
an
eight-year lease of electronic machines, installation
charges
and
working capital.
Underwriters — Zilka,
Smither & Co., Inc. and Camp & Co., both of Portland,
Oregon.
June 29

Empire Financial Corp. (9/8-11)
stock, of which
25,000 shares will be offered for the account of the issu¬
ing company, and 225,000 shares for the account of sell¬
ing stockholders. Price—To be supplied by amendment.
Proceeds—For working capital. Office—13457 Van Nuys
Blvd., Pacoima, Calif. Underwrtier—Dempsey-Tegeler &

Aug. 6 filed 250,000 shares of common

Co., St. Louis, Mo.
•

inc.
(9/14-18)
filed 200,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of machinery and
equipment and for interim financing of coaxial cable
television transmission systems.
Office—4902 Lawrence
Entron,

July

13

St., Bladensburg, Md. Underwriter—Alkow & Co.. Inc.,
Anthony Securities Corp., both of New York,

and James

and F. W. Schwerin &
Gas

per

•

General

June 11 filed $4,400,000 of 20-year

centers

selling stockholders.

Corp.

July 30 (letter of notification) 277,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—For
expenses for developing leases in West Virginia. Office
—115 Broadway, Suite 1400, New York 6, N. Y. Under¬
writer—Michael Fieldman, 25 Beaver St., New York.

Co., Great Neck, L. I., N. Y.

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts.
Proceeds—For investment, etc.
Office—2480
16th Street, N. W., Washington, D. C.
Underwriter—
None.

• Dixon
Chemical & Research, Inc.
(9/21-25)
Aug. 25 filed 10,000 shares of 6% cumulative convertible
preferred stock ($100 par). Price — To be supplied by

June

amendment. Proceeds

America,

—

For general corporate purposes.

Office—1260 Broad St., Bloomfield, N. J. Underwriters—

Hardy & Co. and P. W. Brooks & Co., Inc., both of New
York.
•

Dooley Aircraft Corp.

(9/21-25)

14 filed 506,250 shares of common stock (par one
cent), of which 375,000 shares are to be publicly offered.
Price—$2 per share. Proceeds—To repay loans; to pay

Aug.

the

$80,000 balance due on the company's purchase of
complete rights to the MAC-145 aircraft; and for
working capital, including expenses for advertising. Of¬
the

fice—105

West Adams St., Chicago, 111.
Mallory Securities, Inc., New York.

Drake

Underwriter—

Associates

Aug. 20 filed $5,905,000 of limited partnership interests.
Price—$10,000 for each of 590V2 unit£. Proceeds—To buy
the Hotel

Drake, located at 56th St. and Park Ave., New
York, from Webb & Knapp, Inc. Office—60 East 42nd St.,
New York. Agents—Domax Securities Corp., and Peter I.
Feinberg Securities Corp., both of New York. OfferingExpected sometime prior to Oct. 1.
$2,000,000 of partnership interests, to be
offered in units. Price—$10,000 per unit. Proceeds—To
be
used
for
various
acquisitions.
Office — Broad
&
Chestnut Streets, Philadelphia, Pa. Underwriter—None.
^ Durrazzo Products, Inc.
Aug. 26 (letter of notification) 2,500 shares of common
stock to be offered for subscription by stockholders.
Price—At par ($10 per share). Proceeds—For additional
improvement and for the. purchase of machinery and
equipment. Office—2593 Highway 55, St. Paul 18, Minn.
Underwriter—None.

including

with Development Corp. of
registration statements seeking registration—
securities, as follows: Equity General, 500,000 shares
of common stock and 149,478 shares of preferred stock;
and Development Corp., 500,000 shares of common stock.
The Equity Corp. is the owner of 5,343,220 shares of
Equity General common stock and proposes to offer
500,000 of such shares to the holders of Equity common
in exchange therefor, on a one-for-one basis.
Equity
General is the owner of 2,399,504 shares of Development
Corp. common and proposes to offer 500,000 of such
shares to the holders of Equity General common in
exchange therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬
ance of a maximum of
149,478 shares of Equity General
preferred stock in exchange for shares of preferred stock
of Development Corp., on the basis
of one share of
Equity General preferred for two shares of Development
of

Corp. preferred.

Office—103 Park Ave., New York City.

ESA Mutual

Fund, Inc.
June 29 filed 2,000,000 shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment.

Adviser—Yates, Heitner & Woods, St. Louis,
Distributors, Inc., Washington,
W., Wash¬
ington, D. C.
Mo.

D.

•

Underwriter—ESA

Office—1028 Connecticut Avenue, N.

C.

Fair

Aug.

Lanes,

18

Inc.,

Baltimore, Md.

(9/21)

filed

120,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—For working capital and other general corporate

Underwriters — R. S. Dickson & Co., Inc.,
Charlotte, N. C., and Alex. Brown & Sons, Baltimore, Md.

purposes.

Fidelity Investment Corp., Phoenix, Ariz.
filed 1,799,186 shares of class A common
stock,
of which 1,700,000 shares are to be offered
publicly, and
the remaining 99,186 shares have been subscribed for

June 29

Dynex, Inc. (9/8-11)
Aug. 6 filed 120,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For general cor¬
purposes,

General Corp.
filed ' together

29

Investment

Drexelbrook Associates

May 22 filed

porate

Equity

product

research,

the

pur¬

in consideration for services rendered in
company

as an

organizing the
incentive to management. The company
I

Volume 190

Number 5878

.

.

The Commercial and Financial Chronicle

.

(957)
has agreed to issue to the organizers
200,000 shares of
class B common stock; and 100,000 class B shares have
been set aside for issuance to
keep personnel other than
the organizers. Price—To
public, $3 per share. Proceeds
—To be applied to
pay interest due on properties and to
purchase new properties and for working capital. Under¬
writer—None.
Financial Industrial Income
Fund, Inc.
shares of common capital stock
Price—At market. Proceeds—For investment. Office—

July 22 filed 1,000,000

950 Broadway,
Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
First

Northern-Olive

Investment

made

were

behalf of other Northern-

on

Olive

companies, numbered "second" through "eighth."
Price—-$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North Central
Ave., Phoe¬
nix, Ariz. Underwriter—O'Malley Securities Co., Phoe¬
nix.

-

First

.

and 45 cents per share to those brokers

selling more than
2,500 shares). Proceeds—For working capital; general
corporate purposes
and
to
develop dealer relations.
A broker-dealer firm

—

formed

to underwrite

and distribute

new
security issues. Office—40 Exchange
Place, New York 5, N. Y. Underwriter—First Philadel¬
phia Corp., New York, N. Y. Offering—Expected some¬
time in September.

• Flintkote Co., 30 Rockefeller Plaza, New York
Aug. 28 filed 324,483 shares of common stock, to be ex¬
changed for common stock of Calaveras Cement Co. on
the basis of 1.7 shares of Flintkote

standing
will

be

share

of

pursuant

will be merged

Calaveras
to

for each out¬

common

The

common.

exchange
whereby Calaveras
Sept. 30, 1959. Under¬

agreement

an

into Flintkote

on

writer—None.
•

Florida

Paim-Aire Corp.

(9/14-15)

Aug. 12 filed 1,010,000 shares of common stock (par $1)
of which 445,000 shares are to be offered to the
public.
Price—$4 per share. Proceeds—For further development
©f company. Office—Pompano
Beach, Fla. Underwriters
—Hardy & Co. and Goodbody & Co., both of New York.

Fortuna

Corp.
July 21 filed 1,000,000 shares of common stock. Price—
$1.50 per share. Proceeds—To complete race plant and
for general
N. M.

corporate purposes.

Office

Underwriter—Minor, Mee

&

—

Co.,

N. M.
•

Foto-Video

Laboratories, Inc.

July 15 filed 150,000
(par 10 cents). Price

shares
$2

—

of

(9/14-18)

class

B

share.

per

Albuquerque,
Albuquerque,

stock

common

Proceeds

—

For

general

corporate purposes, including the repaying of
loans, the purchase of new equipment, and for
working capital. Office — 36 Commerce Road, Cedar
Grove, N. J.
Underwriter — Arnold Malkan & Co.,
bank

New York.

June

18 filed

Price—At

Balanced

Fund,

100,000 shares of

market.

Proceeds—For

(par $1).

investment.

Office—

St., Nashville, Tenn. Investment Adviser—J.
C. Bradford & Co., Nashville, Tenn.
Distributor—Capital
Planning Services, Inc.
Foundation Stock Fund,

Inc.

June 18 filed 100,000 shares of common stock
(par $1).
Price—At market. Proceeds—For investment. Office—
418 Union St., Nashville, Tenn. Investment Adviser— J.
C. Bradford &

Co., Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
• Fredonia Pickle
Co., Inc. (9/23)
July 29 (letter of notification) 150,000 shares of

stock (par 10 cents).

Price—$2

share.

per

common

Proceeds—For

production, equipment, inventory and working capital.
Office—Cushing & Union Streets, Fredonia, N. Y. Un¬
derwriter—Summit Securities, Inc., 130 William Street,
York, N. Y.

■it Freeport Sulphur Co.
Aug. 26 filed 450,000 shares of common stock, to be of¬
fered to certain employees of the company and its sub¬
Stock Owner¬
Office—161 East 42nd Street, New York.

Fyr-Fyter Co.
Aug. 12 (letter of notification) 3,300 shares of 6%
lative

preferred

stock.

Price—At

($30 per share).
Proceeds—To go to selling stockholders. Office—2 West
46th

St., New York 36, N. Y.

par

fit

Field, Islip, L. I., N. Y. Underwriter—Dunne

Genesco

common

stock.

mon

General Contract Finance Corp.

Aug.

24

stock,

&

Co., New

[Genesco has

agreed

to

amendment.

—901

(9/17)

200,000 shares of convertible preferred
A, ($20 par). Price—To be supplied by

Proceeds—To

company's loan and finance
Washington Ave.,

aid

in

the

company

St.

Louis,

expansion

of the

subsidiaries. Office
Mo..' Underwriter—

G. H. Walker & Co., St. Louis, Mo. and New
York, N. Y.
General Merchandising Corp.,

Memphis, Tenn.

-

Feb. 18 filed 250,000 shares of class "A"

(par

common

stock

cent). Price—$10 per share. ; Proceeds—For
working capital and general corporate purposes. Under¬
one

writer

Tenn.

Union
Securities
Investment
Statement effective April 24.

—




Aug. 20

(par $1). Price—$100 per share. Proceeds—For
working capital. Address—Whippoorwill Lodge, Black¬
ball, Old Lyme, Conn. Underwriter—None.

exchange

Georgia-Bonded Fibers, Inc. (9/8-11)
July 10 (letter of notification) 100,000 shares of class A
common stock (par 10
cents). Price—$3 per share. Pro¬
ceeds—For general corporate purposes.

Office—15 NuttSt., Newark, N. J. and Buena Vista, Va. Under¬
writer—Sandkuhl & Company, Inc., Raymond Commerce
man

Building, Newark, N. J.
; Georgia
Power Co. (9/17)
Aug. 21 filed $18,000,000 of first mortgage bonds due
Sept. 1, 1989. Proceeds—Together with other funds, will
be used for the construction or
acquisition of permanent
improvements, extensions and additions to the company's
utility plant. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

Inc.;

Blyth

&

Co., Inc., Kidder, Peabody & Co. and
Shields & Co. (jointly); Lehman
Brothers; The First
Boston Corp.; Morgan Stanley &
Co.; Equitable Secu¬
rities Corp. and Eastman Dillon, Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc.
Bids—Expected
to

be

received

to

11

(EDT)

Sept. 17 at the
office of Southern Services,
Inc., Room 1600, 260 Park
Ave., New York 17, N. Y.
Gold

up

a.m.

on

Medal

Packing Corp.
June 18 filed 572,500 shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of
equipment and facilities and other general corporate
purposes. Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change—Formerly Eastern Packing Corp.
Offering—
Expected in September.
it Golden Point Development Corp. of Washington
Aug. 24 (letter of notification) 700 shares of 6% pre¬
ferred stock. Price—At par ($100 per share). Proceeds—
For construction, maintenance and operation. Office—
11149 Viers Mill Rd., Wheaton, Md. Underwriter—None.

Employees Variable Annuity Life

Growth Fund of
Feb.

stock

(par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held
(1,334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50)
of Government Employees
Life Insurance Co., on the basis of 1% warrants per share
of stock held

(216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of % warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible
cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374
per share.
If all these debentures were
a

into

common

stock prior to the

record date,

total of 164,733 common shares would be outstanding.

Price—$3

share. Proceeds—For capital and surplus.
Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
per

Office—Government Employees

Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass.
Great

American

Publications,

Aug. 11 filed 260,000 shares of
cents) of which 195,000 shares
on

ceeds

—

a

best

For

effects

working

basis.

Inc.
stock

common

are

to

be

Price—At

capital.

Office

(par 10
publicly of¬

market.

—

New

Underwriter—Mortimer

B. Burnside & Co., Inc.,
Offering—Expected probably in September.

York.

Pro¬

York.

New

it Great Lakes Bowling Corp.
Aug. 31 filed 120,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For general cor¬
porate purposes,

including the development of bowling
on various Michigan prop¬
erties.
Office
6336 Woodward Ave., Detroit, Mich.
Underwriter—Straus, Blosser & McDowell, Chicago, 111.

lanes, bars,

Co.,

Memphis,

and

restaurants

—

Great Western
29

Life

Insurance

cents).

500,000 shares of common stock and op¬
tions to purchase 200,000 additional shares of outstanding
stock, to be offered in units, each consisting of five
shares of common stock and an option to purchase two
additional shares, the units to be offered for subscription
by holders of the 1,500,000 outstanding common shares
at

the

rate

of

one

-r

America, Inc.

filed

250,000 shares
Price—At market.

Office —1825

Connecticut

Advisor

Washington,

D.. C.

ment

of

common

stock

Proceeds—For

(par 10
investment,

Avenue,

Washington, D. C.
Advisory
Service^
Manage¬
Associates, Inc., Washington, D. C.

Investment

—

Investment

Underwriter—Investment

Guarantee Mortgage, Inc.
Aug. 14 (letter of notification) $100,000 of 10-year 6%
sinking fund debentures (in denominations of $1,000),
Each debenture may be purchased with 100 warrants to
buy one share of class A common stock (par $10). The

right to purchase class A

common stock .by way of war¬
Dec. 31, 1969. Price—90% without
warrants. Proceeds—For investment
purposes.
Office—>
725 Failing Bldg., Portland 4, Ore.

rants

will

terminate

Underwriter—None.

•

Guerdon

Industries, Inc. (9/28-10/2)
Aug. 21 filed 400,000 shares of class A common stock (no
par). Price—To be supplied by amendment. Proceeds—To reduce

bank indebtedness by
$3,500,000, and to pay
$2,500,000 notes. Office—3782 South Van Dyke Road,
Marlett, Mich. Underwriter—Blair & Co., Inc., New York,
off

Haag Drug Co., Inc., Indianapolis, End.
July 27 (letter of notification) 16,650 shares of common
stock (par $1).
Price—Not to exceed an aggregate ofc
$300,000. Proceeds—For working capital. Underwrites*
—City Securities Corp., Indianapolis, Ind.
it Harnischfeger Corp.

(9/23)

Aug. 28 filed 200,000 shares of common stock (par $10).
Price—To be related to the market price of
outstanding
shares at the time of the offering. Proceeds—In
part to
outstanding

repay

unsecured

short-term

bank

loans,,

expected to approximate $4,000,000, with the balance to
be used for general corporate purposes. Office—4400 W„
National Ave., Milwaukee, Wis. Underwriter—The First.
Boston

Corp., New York.

Heliogen Products, Inc.
Oct. 22, 1958 (letter of notification) 28,800 shares of!
common stock (par $1).
Price—$5 per share. Proceeds—
For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. CL
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y. Offering—Expected in Septem¬

unit

for

each

15

shares

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—.
For development ol oil and gas properties. Office—70ffl
American Bank Building, Portland 5, Ore. Underwrites*
—D. Earle Hensley Co., Inc., 4444 California
Avenuffc
Seattle, Wash.
Heritage Corp. of New York (9/10)
Aug. 10 (letter of notification) 100,000 shares of comrstock (par 10 cents). Price—$3 per share. Proceed**
—For general corporate purposes. Office—12 State
St,,
Albany, N. Y. Underwriter—Golkin, Bomback & Co., 25*

mon

Broad

held

on

or

28, 1959; rights to expire on or about Sept.
28, 1959. The options Evidence the right to purchase the
200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
ment.
Proceeds—For
loan
to
the
subsidiary (Great
Western Building & Loan Corp.); and the balance will
be used to increase capital and surplus. Office—161-•

St., New York 4, N. Y.

v

Heublein,

Inc., Hartford, Conn. (9/22)
Aug. 21 filed 425,000 shares of common stock (par $5),
of which 300,000 shares are to be sold for the account of
the company, and 125,000 shares for the account of cer¬
tain selling stockholders. Price — To be supplied
by
amendment.

Proceeds—For

general

corporate

purposes^

including the reduction of short-term borrowings, th«*
financing of additional inventories and accounts receiv¬
able, and the general expansion of the firm's business.

Underwriter—Glore, Forgan & Co., New York.
Hickerson

Bros. Truck Co., Inc.
(letter of notification) 285,000 shares of comr*
mon stock.
Price—At par ($1 per share). Proceeds—
pay existing liabilities; for additional equipment; audi
for working capital.
Office—East Tenth Street, P. CL
Box 68, Great Bend, Kan.
Underwriter—Birkenmaym*
& CO., Denver, Colo.

March 11

• Hoerner
Boxes, Inc. (9/17)
Aug. 19 filed 246,500 shares of common stock (par $1), oJC
which 199,000 shares will be publicly offered. Price—T©~
be supplied by
amendment.
Proceeds—To finance as

equity

Co.

filed

about Aug.

4

ber.

Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common

converted

common

stock

454,318
common stock for an aggregate of
509,516
shares or approximately 84.9% of the common stock of
Formfit.]
Office—111 Seventh Avenue, North, Nash¬
ville, Tenn. Underwriter—None.

June

filed

series

it Griswold Aeronautical Corp.
(letter of notification) 2,000 shares of

on the basis of 0.891% shares of
stock for each share of Formfit com¬

shares of its

York.
•

,

shareholders of The Form-

common

—

corporate purposes, including the purchase of airplanes,
parts, arid equipment, the retirement of debt, and
the increase of working capital. Office — MacArthur
spare

St., Oklahoma City, Okla. Under*Mitchell, Jr. Co., Washington, D» C.; and
Co., Denver, Colo.

•

Co., Chicago, 111.,

Underwriter—None.

it Gateway Airlines, Inc. (9/28-10/2)
Aug. 31 filed 400,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds
For general

Second

—

fered
cumu¬

&

Greek Voice of America, Inc.
selling stockholder. Price—$1 per
share. Proceeds—For furniture
July 9 (letter of notification) 300,000 shares of class Br
inventory and improved
capital stock (par one cent).
Price—$1 per share. Pro¬
merchandising methods, to finance the real estate depart¬
ceeds—For production and publicity of Greek language
ment and insurance
policy loans. Office—211-215 Pine 7
radio and television programs and
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
.manufacture; >distribution and promotion of Greek language records. Of¬
Inc., Pine Bluff, Ark. Offering—Expected any day.
fice
401 Broadway, New York, N. Y. Underwriter —
Genesco, Inc.
Karen Securities Corp., 95 Broad
Street, New York,.
July 29 filed 535,000 shares of common stock (par $1),
N. Y. Offering—Expected any date.
to be

sidiaries pursuant to the Key Employees'

ship Plan.

W.

Purvis

a

Insurance Co.
stock

common

N.

writers*-G. J.

to be offered for the account of the
company

are

and 30,000 shares for

Inc.

418 Union

New

shares

Government

Foundation

111

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000

•

Philadelphia Corp.

Aug. 21 (letter of notification) 100,000 shares of class A
common stock
(par 10 cents). Price—$3 per share (gross
30 cents per share to brokers
selling 2,500 shares or less,

Business

mon

offered to the

Co.

Aug 17 filed 20 partnership interests in the
partnership.
Similar filings

General Underwriters Inc.

April 6

investment, and

finance a loan to Waldorf—
Co., which will be 50% owned
by the issuing company. Office—Keokuk, Iowa. Under¬
writers—Goldman, Sachs & Co., New York.
to

Hoerner Paper Products

Hooker Chemical Corp.
(9/16)
Aug. 21 filed $25,000,000 of convertible subordinated
debentures, due Sept. 15, 1984, to be offered for sub¬
scription by common stockholders of record Sept.
1959, on the basis of $100 principal amount of debentures
for each 30 shares of common stock held; rights will

expire Sept. 30, 1959. Price—To be supplied by amend¬
Proceeds — For capital expenditures. Office-

ment.

Niagara Falls, N. Y. Underwriter—Smith, Barney & Co,,
New York.
'

,

Continued

on

page

3®-

84

The Commercial ancLFinancial Chronicle

(958)

Continued from page

it Jostens,

33

of Israel
July 13 filed 39,000 shares of common stock (par $5)
and $1,560,000 of 6% subordinated debentures, due Aug.
I
1974. Price—$1,500 per unit, consisting of 30 common
shares at $10 per share and $1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish various
Hotel Corp.

properties and Tor general corporate purposes. Office—
II South La Salle St., Chicago, 111. Underwriter—None.
Hycott Manufacturing Co.
Aug. 28 filed 126,316 shares of common stock, which
were issued to Avco Corp. on Dec. 8, 1958, at $2,375 per
shares, and which will now7 be publicly offered by Avco.
Price—To be related to the prices prevailing in
the
over-the-counter market at the time, or times, the stock
is sold.
Office—1030 South Arroyo Parkway, Pasadena,
Cailf. Underwriters—The offering will be made through
+

registered brokers and dealers who are NASD

members.

Inc.

I C

600,000 shares of common stock

June 29 filed

(par $1).

Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and enfranchising cf bottlers, the local and national pro¬
motion and advertising
of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver.
Price—$2.50 per share.

Colo.

Ideal

July

Cement

shares

to

are

Co.

stock

the

Vinyls, Inc.
shares of common stock (par 10
cents). Price—$2.50 per share.
Proceeds—For the pur¬
chase of machinery and equipment to expand the com¬
pany's facilities for handling thermoplastics, to reduce
current bank borrowings, and for general corporate pur¬
poses including the addition of working capital. Office—
5511 N. W. 37th Ave., Miami, Fla. Underwriters — The
Robinson-Humphrey Co., Inc., Atlanta, Ga., and Clisby &
Co., Macon, Ga.

new

the

filed

Beneficial

500

cash

necessary

Trust

Certificates

in

Irando Oil &

&

Rumball, Regina, Sask.,
Jackson's Minit'Markets, Inc.

Can.

July 30 filed 223,000 shares of common stock (par $1),
being offered to stockholders of record as of Aug. 28,
1959, on the basis of one new share for each two shares
then held; rights to expire on
Sept. 15. Price—$5 per
share.

Proceeds

cluding

the

construction

—

For general corporate

equipping
of

new

and

stores.

purposes, in¬
stocking and possibly the
Office—5165 Beach Boule¬

vard,

Jacksonvile, Fla. Underwriter—Pierce,
Wulbern, Inc., Jacksonville, Fla.
•

Jamaica Development
Co., Inc.
15 filed 105,000 shares of common

June

being
on

a

offered

to

stockholders

of

record

'

stock

(par $1),
Aug. 20, 1959

basis of

2% new shares for each share held; rights
expire on Sept. 20, 1959, unsubscribed shares to
public. Price—$10 per share. Proceeds—To be used for
to

_

the purchase

of

land, cattle, machinery and equipment,

fishing lodge, and development expense. Office
1841
North Meridian St.,
Indianapolis, Ind. Underwriter—
—

None.

Statement effective Aug. 31.

Jorgensen (Earle M.) Co. (9/10)
Aug. 10 filed 150,000 shares of common

stock (par $1).
Price—To be supplied by amendment. Proceeds—To ex¬

pand existing warehouse facilities and to construct new
warehouse facilities, and the balance to be added to

working

capital. Office—10650 South Alameda St., Los

Angeles, Calif. Underwriter— Blyth & Co., Inc., Los An¬
geles, Calif.




share

new

for

area;

general funds of the

•

157,494

shares

the

on

owned

as

•

Office

—

1105

County

Road,

San

Carlos,

Underwriter—None.

Lincoln

Telephone & Telegraph Co.
Aug. 6 filed 30,000 shares of 5% convertible preferred
stock ($100 par), being offered to stockholders of record
Aug. 27, 1959, on the basis of one new preferred share

Sept.

14. To permit the
stockholder

has

offering

waived

Y.

Underwriter—Amos Treat & Co., Inc., New York.
withdrawn

Aug. 27.

4

Minerals, Inc.
:•
June 22 filod $921,852 of Working Interests and Over¬
riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla. Underwriter—None.

Dean Witter &

Mobile Credit Corp.
June 3 filed

for

sale

share.
for

—

in

15,000 shares of common stock to be offered
Michigan and Pennsylvania. Price—$10 per

Proceeds—To provide

the

purchase

of

additional working capital
interests in conditional

vendors'

sales contracts and other like evidences of indebtedness.
Office—11746
writer—None.

of other money

obligations. Underwriters—Scherck, Richter & Co., St.
Louis, Mo.; Burnham & Co., New York; and S. D. Lunt
& Co., Buffalo, N. Y.

20

Mid-America

Long Mile Rubber Co., Dallas, Tex. (9/8-11)
Aug. 18 filed $1,500,000 of sinking fund subordinated
debentures, due Sept. 1, 1974, with warrants for the
purchase of 60,000 shares of common stock. The state¬
ment also covers 225,000 shares of outstanding common
stock, to be offered for the account of certain selling
stockholders.
Price
For debentures with warrants,
100% of principal amount; and for common stock, to be
supplied by amendment. Proceeds—To be used to pay
off notes to bank and to repay $700,000

(par

common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stoqk option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter
—None.
Financial Adviser—Hill, Richards & Co., Inc.,
?Los Angeles, Calif.
1
;

such basis one
rights as to 5,004

—

stock

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250,000 shares of

shares. Price—$100 per share. Proceeds—To re¬
bank
loans
incurred
for
construction
program.
—

common

Expected sometime in September.

on

his

Industries, Inc.
200,000 shares of

filed

Metallurgical Processing Corp., Westbury, N. Y.
Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
retire debts; to acquire new equipment for processing
metals and to expand its overall capacity; to move its
facilities and new equipment into a new building and for
further development and expansion. Underwriter—Neth¬
erlands Securities Co., Inc., New York, N. Y. Offering—

during

the public.

shares

.'■ '•

Statement

stock, to be
basis of one

common

stockholders

to

Corp.; and Cortland Investing Corp., all/of

Medearis

May 14

Corp.

of

filed

29

cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N.

share held

Matronics,

New York.

Co.

each

Window

Aluminum

•

■

Under¬

Appleton Avenue, Detroit, Mich.
Statement effective Aug. 3.

f

>.

Monarch

Marking System Co. (9/9)
Aug. 12 filed 100,000 shares of common stock (no par),
of which 50,000 shares are to be offered for the account

Loomis-Sayles Fund of Canada Ltd.
July 6 filed 800,000 shares of common stock, to be of¬
fered initially at $25 per share through Loomis, Sayles &
Co., Inc., to clients, officers, directors and employees of

of the

the latter.

Ohio.

The

shares also

are

to

be

offered

to

share¬

issuing company, and 50,000 shares, representing
outstanding stock, are to be offered for the account of
selling stockholders. Price—To be supplied by amend¬
ment.

holders

of Loomis-Sayles Mutual Fund, Inc., of record
or about Aug. 18, 1959.
After Sept. 1, 1959, the offer¬
ing price will be net asset value. After about Oct. 18,

on

1959, shares will be offered only to shareholders of
Loomis, Sayles & Co., Inc., and its affiliated companies.
Proceeds—For

Carrison

the

to

comprehensive

a

Securities

Underwriter—None.

Insurance

Lincoln, Neb. Underwriter
Co., New York.

the

added

Inc. (9/14-18)
200,000 shares of capital stock (par 100).
Price—$3.75 per share. Proceeds—For sales promotion,
production test equipment, research and development,
demonstrators for special systems, receivables, inven¬
tories, prepayment of notes and other purposes. Office
—558 Main St., Westbury, L. I., N. Y.
Underwriters—
Vermilye Brothers; Kerbs, Haney & Co.; Mid-Town

share.

Unsubscribed shares will be offered to

duce

Exploration, Ltd.

Laird

—

•

the record

Office

April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of
explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can.
Underwriter

Life

per

of

Calif.

on

St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D. C., and Swesnick & Blum Securities
Corp.

•

Price—$25

share for each two

common

certificate. Proceeds—To supply
to purchase the land at 1809-15 H

be

S. E. 3rd Ave., Miami, Fla. Underwriter—Blair &
Inc., New York.
■ ■

June

common

per

in the Melbourne-Cape Canaveral

will

and used for general corporate purposes. Office

range of
business requirements.
Underwriter—Smith, Barney & Co., New York.
-

for each nine common shares then held; rights to expire

Investment Trust for the Federal Bar Bldg.

Price—$2,600

one

initially

stockholder.

Tuna Corp.
(letter of notification) 175,000 shares of clasi
stock (par 50 cents).
Price — $1 per share
Proceeds—For equipment and working capital.
Offic«
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.,
Gulfport, Miss.

an

—

for

Pa.

it Lenkurt Electric Co.
Aug. 31 filed 10,000 outstanding shares of class, B com¬
mon stock. Price—$83.31 per share. Proceeds—To selling

common

14

Kittanning,

per share. Proceeds—For inventory and for
working capital. Office—Jacksonville, Fla. Underwriter
—Plymouth Bond & Share Corp., Miami, Fla.

April 3

common

it Manpower, Inc., Milwaukee, Wis.
Sept. 2 filed 150,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To selling stock¬
holders.
Business
Provides temporary help services

Price—$4

International

Aug.

five-year
(par 10

200,000 shares of common stock, to be of¬

filed

28

date.

3% per unit; series C, $1,000,000, four-year 4% pei
unit; and series D, $3,500,000, 6-year, 5% per unit). Priw
—■100% of principal amount,
Proceeds — For working
capital.
Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.

balance

Co.

subscription by holders of outstanding stock on

basis of

offered

year,

Trust.

11 filed

July

International Bank, Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B, $500,000, two-

A

held.

National

Lenahan

20 filed 200,000

initial }

share. Price—To be supplied by amend¬

—20

the period ending June 25, 1959.
Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—To
increase capital and surplus.
Office — 1706 Centenary
Boulevard, Shreveport, La. Underwriter—None.

Industrial

r

share

fered for

Underwriter—May & Co., Port¬

Portland 4, Ore.

stock at

per

company

(W. S.) 1960 Co.
June 8 filed $3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.

June

land, Ore.

entitling the registered holder

share of such

Kilroy

Lee

$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬

warrant

one

the

25,000 shares of common stock

provement, and expansion.

(letter
convertible 6%

one

purchase

covering lands

and
50 shares of stock.
Price—$500 per unit. Proceeds—For
equipment and working capital. Office—600 Old Coun¬
try Road, Garden City, N. Y. Underwriter—None.

Corp.

of notification) $200,000 subordinated
debentures ($1,000 denomination) and

1

Aug.

and

$1, with common

subsidiaries and properties to the company; $106,000 will
be used to close certain options and purchase contracts

to be offered in units of $450 of debentures

cents)

par

Proceeds—$291,099 is to be expended during the
period ending Aug. 31, 1960 for mortgage payments and
releases; $465,000 will be paid on notes acquired by
members of the Magnuson family in the transfers of

Proceeds—In
part to repay a bank loan in the amount of $450,000 rep¬
resenting funds acquired for general modernization, im¬

Building, 821 17th Street, Denver,

Industrial Leasing

nue,

debentures

each

Colorado.

June

Underwriter—None.

Office—Anchorage, Ky.

stock,

common

ment.

it- Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares oi common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,000 shares.
Price—Of 30,717 shares, $115 each; and of
51,000 shares, $116 each." Proceeds—To selling stock¬

it Key Color Studios, inc.
Aug. 25 (letter of notification) $225,000 of 6%

A

price of $11

fered by subscription to holders of outstanding common
stock on the basis of approximately 0.212 new shares for

Portland Cement Co., in the
Denver National Bank

to

Aug. 24 filed 14,000 shares of common stock, to be of¬

(par $1) of the Volunteer
ratio of 3% shares of Ideal
stock for each share of Volunteer stock.
Office — 500
of the common

80%)

stock carries

cago.

holders.

of class

Thursday, September 3, 1959

stock-purchase warrants. Each share of class A common

filed

it Kittanning Telephone Co.,

675,000 shares of capital stock.
These
be exchanged for all (but not less than

filed

31

shares

Inc.

290,035 shares of class A common stock.
Price—To be supplied by amendment.
Proceeds •— To
selling stockholders. Business—The company is princi¬
pally engaged in sale and manufacture of class rings,
graduation
announcements, yearbooks
and
diplomas.
Underwriter—A. G. Becker & Co., New York, and Chi¬
Aug. 31

...

investment.

Lytton Financial Corp. (9/8-11)
Aug. 3 filed 110,000 shares of capital stock (par $l).p
Price—-To be supplied, by amendment.
Proceeds—To
enable the wholly-owned Lytton Savings and Loan As¬
sociation to increase its lending and investment capacity,
with the balance to be retained by the issuing company
and added to working capital. Office—7755 Sunset Blvd.,
Hollywood, Calif.
Underwriter—William R. Staats &
Co., Los Angeles, Calif.
M.

&

S.

Oils Ltd.

•

Narda
June

16

Ltd., Regina, Saskatchewan, Canada.

Magnuson Properties,

capital.

working

Office—Dayton,
Ohio.

Microwave

Corp.

(9/8-11)

filed

50,000 shares of common stock (par 10
cents) and 50,000 warrants to be offered in units, con'sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000
shares of common stock reserved for issuance to key
options. Price—To be supplied
—
To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New
employees

to

pursuant

by amendment. Proceeds

York.
National Citrus Corp.

April 20
For
R.

150,000 snares of com¬
($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬

(letter of notification)

stock.

mon

new

dress—P.

May 11 filed 390,000 shares of common stock. Price—60
cents per share.
Proceeds —For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities

Proceeds—For

Underwriter—McDonald & Co., Cleveland,

F.

O.

Price—At par
Box

1658, Lakeland, Fla.
Underwriter—
Inc., Detroit, Mich. Offering—Ex¬
Statement to be amended.

Campeau Co.,

pected in September.

• National Co., Inc. (9/28-10/2)
Aug. 28 filed 200,000 shares of common stock
of which

150,000 shares

are

(par $1)

to be offered for the account

of the company and 50,000 shares for

Inc. (9/30)
June 29 filed 500,000 shares of class A common stock
(amended on Aug. 24 to 150,000 shares of 6V2% cumu¬

present holder thereof. Price—To be supplied by amend¬

lative convertible

ing, „the

preferred stock, par

10), and 150,000

t^he account of the

ment. Proceeds—For general corporate purposes,

retirement

of

a

bank

loan

in

the

includ¬

amount

of

Volume

190

Number

5878

.

.

The Commercial and Financial
Chronicle

.

(959)
$675,000, which
vertible

incurred

was

debentures.

Office

retire certain

to

5%

con¬

61

Sherman St.,
Maiden,
Underwriter—White, Weld & Co., New York.

Mass.

—-

J National Cleveland Corp., Cleveland,
(9/14-18)
18 filed $600,000

Aug.

bentures, due Sept.
amendment.
bank

Ohio

of

convertible

1971.

Proceeds—To

subordinated

Price—To

be

to

used

additional

Industrial

Aug. 4 filed

be

supplied

retire

der

by

short-term

working capital.

Minerals

150,000 shares

Under¬

of

Ltd.
stock

common

(no par).

Price
$1 per share. Proceeds
To retire indebt¬
edness for construction of plant and for
other liabilities,
and the remainder will be used for
operating capital.
Office
Regina,
—

—

Saskatchewan, Canada. Underwriter-

—

&

Rumball

Ltd., Regina,

Saskatchewan, Canada.

National Life & Casualty Insurance Co.
March 25 filed 250,000 shares of common
capital
to

be

offered

insurance
and

ceeds— To

certain

stock

of

company's life
or prior to
Dec. 31, 1955,
Price—$4.44 per share. Pro¬
capital and surplus. Office — 2300
on

increase

Avenue,

Phoenix,

Ariz.

Underwriter—

.

'

t

of

employees.

Central

None.

holders

policies issued

to certain

North

•

to

'

*

'

•

National

:

•

.

-V.

-•

Sports

Centers, Inc.
July 2 filed $1,000,000 of 6% convertible income deben¬
tures cumulative due 1969, series
C, and 100,000 common
stock

purchase

amount.

warrants.

Price

—

100%

of

principal

Proceeds—To be usedfor completion of and/or

payment of certain bowling alley and other
and the balance will be added to the

properties,
company's general

funds

available for development of properties and the
acquisition and development of additional bowling prop¬
erties. Office—55 Broadway, New York.
Underwriter—
General Investing Corp., New York.
Offering—Expected
sometime in September.

\

"

\

-

'

■

,

'

*

•'/•'.

'

v''

-

•

National Telepix, Inc.
Aug. 4 (letter of notification) 100,000 shares of common
stock (par one cent). Price — $3 per share. Proceeds —
For acquisition of film
properties; for prints equipment,

machinery and supplies and working capital. Office—
545
5th
Avenue, New York,
N.
Y.
Underwriter—
Chauncey, Walden, Harris & Freed, Inc., 580 5th Avenue,
New "York, N. Y. Offering—Expected
today (Sept. 3). '
Nationwide

Auto

Leasing System, Inc.
July 16 (letter of notification) 142,500 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For financing of leased cars and for
general corporate
purposes. Underwriter—Investment Bankers of
America,

Inc., Washington, D. C.
•

Nationwide

Corp.
April 24 filed
cents).

Price

Small

500,000

'r

Business

shares

Capital

Navco

of

capital

stock

(par

—

50

Electronic

(par $1).

chase

plant,

a

Price—$2

per

equipment,

share.

common

Proceeds—To pur¬

material,

inventory and for
capital.
Office—1211 4th St., Santa Monica,
Underwriter—Aetna Securities Corp., New

working
Calif.

York,

N. Y.
Nedow

Oil

Tool

Co.

Address—P. O. Box 672, Odessa, Texas. Underwriters—
To be designated.

Telephone & Telegraph Co., the parent company, which
are expected
to approximate $42,700,000 at the time of
the offering, with the balance for
general corporate pur¬
Underwriter—To

bidding.

be

determined

by competitive
Stuart & Co.-Inc.;

Probable

bidders: Halsey,
Corp.; Morgan Stanley & Co. Bids—
Expected to be received up to noon (EDT) on Sept. 21
at Room 2315, 195
Broadway, New York.
First

N.

Furniture Center,

—For

par.

tem; to

pay

Inc.

the cost of

a

portion

a

supply and
12

new

of

cost

distribution

inch

well

in

& Co.,
September.

of

Standard Bldg., Van¬
C., Canada. Dealer-Managers—White, Weld &
Co., Wood, Gundy & Co., Inc., and Greenshields &
Co.,
all of New
York; and Wood, Gundy & Co., Ltd., and
Greenshields & Co., Inc., of Canada.'
> '*
>>•••<
couver, B.

Producers Fire &

Casualty Co., Mesa, Ariz.
400,000 shares of common stock to be
subscription by holders of stock purchase
rights acquired in connection with life insurance policies
March

per

issued by Dependable Life Insurance Co.
and to certain
and brokers of Producers Fire &

Price—$5 per share.
Underwriter—None.

suspending the

—

Office—1202 Myrtle St., Erie, Pa. Under¬
writer—John G. Cravin &
Co., New York.
Offering—.
Expected in September.
Radio City

Aug.

company, and 10,000 shares for the
present holders thereof.
Price—To

Boston

New West Amulet Mines Ltd.
(9/8-11)
July 30 filed 200,000 shares of outstanding capital stock
(par $1). Price—To be related to the current mhrket

price

on the Canadian Stock Exchange at the time df the
offering. Closing price Aug. 7 was 84 cents. Proceeds—
selling stockholder. Office—244 Bay Street, Tofonto,

Canada.
New

Underwriter—Willis

retiring trade notes, retiring loans out¬
research and development and for working
capital. Office '■*— Centrb & Glendale
Sts., Easton, Pa.
Underwriter—None.

standing,

Radio

Frequency Company, Inc. (9/10)
(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mass.
Aug.

be

Aug. 27 filed 222,060 outstanding shares of common stock
(par $1). Price — To be supplied by amendment.
Pro¬

supplied (for each issue) by amendment. Proceeds
purchase advertising structures and poster
panels,

—

ceeds—To

selling stockholders.
Office
457 Madison
Ave., New York. Underwriter—Allen & Co., New York.

liabilities, to purchase motor
trucks, to pay certain debts, and to assist in the purchase
similarly engaged companies. Office—995 North
Mission Road, Los
Angeles, Calif. Underwriters—Lester,
Ryons & Co., and Wagenseller & Durst,
Inc., both of
Los Angeles.
of two

Electronics Research Corp.
July 15 filed 165,000 shares of common stock (par $1),
subsequently reduced by amendment to 115,500 shares,
of which 100,000 shares will be offered to the
public.
Price—$8.50 per share. Proceeds—For general corporate
purposes.
Office—1029 Vermont Avenue, N. W., Wash¬

ington, D.C. Underwriter—Weil & Co., Washington, D.C.
Realsite, Inc.
July 28 filed 200,000 shares of class A stock. Priced— $3
.

20 cents a share, for each share of
Marine Drilling stock.
Marine Drilling also plans to sell
250,000 shares of the
680,000 shares of Pan-Alaska it now owns. Underwriter

per

E.

Burnside

&

Co.,

York.

Inc.,

principal amount. Proceeds
equipping, and placing in operation

—

construction,
new plant, with the
balance

to

be

used

1

Nielsen-Tupper Instruments, Inc.
Aug. 19 (letter of notification) 29,399 shares of class
common

stock.

Price—At par

($1

per

share).

A

Proceeds

—To

purchase machines, tools, office equipment, furni¬
ture, drafting and printing equipment and for working
capital.
Office -pi 1411 Fourth Ave., Seattle 1, Wash.
Underwriter—Crawford Goodwin Co.,
Seattle, Wash.
•

Nord

-

Photocopy & Business Equipment Corp.

(9/8-10)

^

July 21 filed 100,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To reduce hank
debts

and

for

general corporate

Hyde Park, L. I., New York.
Lomasney & Co., New York.
North American

purposes.

Office—New

Underwriter—Myron A.

Acceptance Corp.
April 29 (letter of notification) $300,000 of 6% ID-year
subordinated debentures to be offered for
subscription
by stockholders in. denominations of $100. $500^tnd
$1,000 each. Rights were to have expired July 31, 1959.




for general

three

a

cor¬

St., Passaic, N. J.
Inc., New York.

—

and

Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par
$1)
Proceeds—For

investment.

the rate of

Record

one

new

share for

each

two shares

date June

held.

2, 1959; rights were tb have expired
on July
31, 1959, but expiration date has been extended
to Sept 15. Price—1% cents
per share. Proceeds—For
working capital. Office—Soriano Building, Plaza Cer¬
vantes, Manila (P. I.). Underwriter—None;

common

one

stock

and

for

Under-*

stock

of

Brooks

Foods,

Inc.,

at

the rate

Ritter

of Brooks
for

each

and

two

share

of

shares

of

common

common

stock

of

The

exchange offer is being made by Ritter in
its agreement with Brooks and certain
of its
stockholders who own an aggregate of 18,805
shares of its outstanding common stock, or approxi¬
mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
accordance

-

of

share of Ritter preferred stock for each share of

Brooks.

writer—Investors Investments Corp.,
Pasadena, Calif.

at

mortgages

in

preferred stock

Under¬

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, being
offered for subscription by holders of
outstanding stock

held

of

Peckman Plan

market.

off

Co., Miami, Fla.

companies for joint exploration of conces¬
the Philippines.
Office—410 Rosario St.,
Binondo, Manila, Philippines. Underwriter — John G.
Cravin & Co., Inc., New York.
Offering—Expected in
September.
Ritter (P. J.) Cp., Bridgeton, N. J.
June 18 filed 4,827 shares of preferred stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
stock (no par) to be offered to the holders of preferred

Participating Annuity Life Insurance Co.
June 4 filed $2,000,000 of variable
annuity policies. Pro¬
ceeds
For investment.
Office
Hathcock Building,
Fayetteville, Ark. Underwriter—None.

Price—At

&

other

sions

porate purposes. Office—26 Jefferson
Underwriter—Blair & Co.

—

Ferman

Republic Resources & Development Corp.
Price
—$2 per unit of 100 shares. Proceeds—To be used in the
company's oil exploration program for the purchase of
oil exploration and drilling
equipment, supplies and ma¬
terials; to contract with U. S. geophysical contractors for
technical services; and to pay its pro rata shares of the
dollar exploration expenses under its agreement with

For

of

pay

Office—Jamaica, L. I., N. Y.

June 29 filed 1,250,000 unit shares of capital stock.

titling the holder to purchase 50 shares of common stock
of the issuing company for each
$500 of debentures).
of

Proceeds—To

writer—Robert L.

• Pantasote Co. (10/1)
Aug. 28 filed $2,700,000 of 6% subordinated
sinking fund
debentures, due Oct. 1, 1974 (with warrants attached en¬

100%

share.

working capital.

—Any stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,
Texas and Clark, Landstreet &
Kirkpatrick, Inc., Nash¬
ville, Tenn., at a price of 20 cents a share.

At

—

Raub

Pan-Alaska Corp.
Aug. 7 filed 2,612,480 shares of common capital stock to
be issued pursuant to
options held by Marine Drilling,
Inc. Latter
company will, in turn, offer its stockholders
rights to purchase two shares of Pan-Alaska
common, at

—

12

Underwriter—Myron A. Lomasney & Co., New York.
★ Random House, Inc. (9/21-25)

ac¬

To

Price

discount basis,

on

i

To

Products Co., Inc.
of notification) 100,000

shares of com¬
(par 25 cents). Price—$3 per share. Proceeds
machinery and electronic test equipment, envi¬
ronmental testing
equipment, placing accounts payable

Pacific

the

(letter

—For

Outdoor
Advertising Co. (9/10)
Aug. 10 filed $850,000 of 15-year 6% subordinated deben¬
tures, due Sept. 1, 1974, with attached warrants for the
purchase of 30,600 shares of common
stock, and, in addi¬
tion, filed 50,000 shares of common stock
(par $5), of
which 40,000 shares are to be
offered for the account

issuing

17

stock

mon

Underwriters—Blyth & Co., Inc., Los Angeles, Calif., and
Hornblower & Weeks, New York.

of

capital.

—

Pacific

the

working

rate purposes.

Finance Corp.
(9/23)
Aug. 24 filed 160,000 shares of common stock
(par $10)
Price—To be supplied by amendment.
Proceeds—To be

count

Casualty Co.

Proceeds—For

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds
For general corpo¬

—

of

filed

for

agents

Oreclone

•

31

offered

Concentrating Corp., New York, N. Y.
May 20 filed 200,000 shares of common stock
(par 10
cents). Price—$3 per share, Proceeds
For repayment
of
outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America,
Inc., Wash¬
ington, D. C. Offering—Expected any day.
•

Bloedel,

on the basis of seven shares of Powell River
stock
for three shares of MacMillan &
Bloedel stock, whether
class A or class B. Office — 1204

Philadelphia, Pa.

offering.

,AVy:..

Ltd.,

sys¬

to

common
stock (par 35
share.
Proceeds—To retire bank
loans and for investment
purposes. Office—513 Interna¬
tional Trade
Mart,..New Orleans, La.
Underwriter —
Assets Investment
Co., Inc., New Orleans, La. The SEC
has scheduled a
hearing, to begin on Sept. 2, to determine
whether a stop order should be
issued

Price—$2

.

shares (no par) to be
a two-for-one stock split in
September
holders of record of, and in
exchange for outstand¬
ing class A and class B shares of MacMillan &

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of

cents.

;

stock

to

increase
the company's
supply of water; and to pay the costs and
of financing.
Office—330 Main St., Mantua,
N. J.
Underwriter
Bache

Offering—Expected

600,000

Proceeds

offered, following

expenses

—

market.

Powell River Co., Ltd.
Aug. 20 filed 4,500,000 ordinary

Proceeds

the

Price—At

Pearson, Murphy & Co., Inc., New York.

■

water

stock.

investment.

300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For expansion.
Office—Alliance, Ohio. Underwriter-

Underwriter—Bache &
Co., Philadelphia, Pa. Offering—Expected in
September.
Oak Valley Water Co.
June 30 (letter of
notification) $125,000 of 5%% first
mortgage bonds series of 1958. Price—At

Valley,

Inc., Boston, Mass.
amendment) an additional

(by

common

Porce-Alume, Inc.
3 (letter of notification)

mon

construction of sewerage collection and
disposal system
and to pay the costs and
expenses of financing.
Office
Main St., Mantua, N. J.

the

Exchange Place, New York,
Woodhill, Inc., New York,

Aug.

—330

of

filed
of

H.

★ Polaris Mining Corp.
Aug. 19 (letter of notification) 200,000 shares of common
stock (par 50 cents).
Price—$1 per share. Proceeds—■
For mining expenses.
Office—636 W. Oro
Street, Tucson,
Ariz.
Underwriter—None.

Valley Sewerage Co.
30 (letter of
notification) $145,000 of 5y2% first
mortgage bonds series of 1958. Price—At
par. Proceeds
—To repay to Oak
Valley, Inc. a portion of the cost of

Oak

1

shares

Oak

repay

Underwriter—M.

★ Pioneer Fund,

June

—To

Y.

Sept.

Inc.

Aug. 4 (letter of notification) 600 shares of class B com¬
mon
stock (no par).
Price—$500 per share. Proceeds—•
To purchase
furniture, fixtures and equipment and for
other working capital.
Office—751 Summa Ave., Westbury, New York. Underwriter—None.

construction

Y.

N.

additional

___

"J

• New England Telephone & Telegraph Co. (9/21)
Aug7 28 filed $45,000,000 of 35-year debentures, due Sept.
1, 1994. Proceeds—To repay advances from American

The

working capital, advertising and sales
expenses,
machinery. Office—521 Park Avenue,
York. Underwriter—American
Diversified Mutual
Securities Co.,
Washington, D. C.
and

to pay Federal and state tax

May 5 (letter of notification) 150,000 shares of common
stock (par 50 cents). Price—$2
per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.

poses.

—For

New

added to the working capital of the
company, and may
initially applied to reduce short-term indebtedness.

—

Industries, Inc.
Aug. 18 (letter of notification) 142,800 shares of
stock

cents).

Proceeds—

machinery; electronic and
optical test equipment; purchase and installation of fix¬
tures and for
working capital. Office — c/o McNabb,
Sommerfield & James, 40

be

Investing

$1 per share. Proceeds
For working
capital and investments.
Office—Hartsdale, N. Y.
Un¬
derwriter—None. Statement withdrawn Aug. 27.
,

stock (par 10 cents).
Price—$1.50 per share.
Purchase and installation of

Cigarette Manufacturers, Inc.
150,000 shares of common stock (par 10
Price—To be supplied by
amendment._ Proceeds

Northeast

National

Photronics Corp., College
Point, L. I., N. Y.
(letter of notification) 200,000 shares of common

June 9

North American

writers—Loewi & Co. Inc.,
Milwaukee, Wis., and Mer¬
rill, Turben & Co., Inc., Cleveland, Ohio.

Laird

Proceeds—For working capital. Office—
795 Peachtree Street, N. E.
Atlanta, Ga. Un¬
derwriter—None.
Suite 487,

July 29 filed

1,

loans and for

Price—At par.

33

with

istration statement.

★ Roto-American

Corp.
Aug. 28 (letter of notification) 80.000 shares of common
stock. Price—$3.75 per share. Proceeds—To redeem preContinued pn

page

3$

The Commercial and Financial Chronicle
36

(960)

Continued from page

and

ferred

common

held

outstanding

stock

by

Roto

a

new

and

York, N. Y.

New

York, N. Y.

Underwriter—Morris Cohon & Co., New

■

Records, Inc.

+ Roulette

.

Aug. 27 filed 330,000 shares of common stock (one
of which 300,000 shares are to be publicly offered.

cent),
Price

Proceeds—For general corporate pur¬
poses, including moving to new quarters and installing
executive offices and sound studio facilities therein, ac¬
quiring technical equipment and machinery, and adding
to
working capital.
Office —659 10th Avenue, New
York. Underwriter—Chauncey, Walden, Harris & Freed,
Inc., 580 Fifth Avenue, New York. Offering—Expected
—$3.50 per share.

in

three

-

four weeks.

or

Bonus

Rozee

Club,

Inc.

July 29 filed 70,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For general cor¬

including advertising and promotion
expenses and the addition of working capital.
Office—
112 W. 42nd Street;.New York.
Underwriter—Jay W.
Kaufmann & Co., New York.
porate

outstanding stock, to be sold for the accounts
selling stockholders. Price—To be supplied by
amendment.
Proceeds—To retire 70%. of the common

purposes,

St.

Regis Paper Co.
filed 30,000 shares of common stock (par $5).
company proposes to offer this stock in exchange
outstanding shares of common, stock of Lone Star

of certain

for

Bag and Bagging Co. on the basis of

0.6782 of a share of

share of Lone Star common,
exchange offer effective if
95% of the outstanding shares of Lone Star common are
deposited for exchange, and may elect to do so if a lesser
percent, but not less than 80%, of all the Lone Star
St. Regis common for each
St. Regis will declare the

will enable it to control the business operations

(-common

and

policies of Lone Star.

St.

invest
seven

000; to add to-working capital; to retire certain longterm indebtedness; and to develop citrus groves.
Office
—250 South East First Street, Miami, Fla.
Underwriter
late in September.
•

The offer will be declared
effective if 90% of the outstanding shares of the Cornell
deposited for exchange, and may be declared
effective if 80% of said shares are so deposited. Office—
are

150 E. 42nd Street, New York.

Securities

Convertible

Samson

Fund,

Mining Co., Inc.
Aug. 5 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents) to be offered for subscription
by stockholders; unsubscribed shares to public. Price—
To stockholders, 80 cents per share; to public, $1 per
share. Proceeds—For exploration and mining operations.
Office—343.9 N< E. Sandy Blvd., Portland 12, Ore. Under¬
writer—None.
'-zr*"'" f
Seagraves

Life

Insurance Co.

(9/28-10/2)

Aug. 25 filed 25,000 outstanding shares of common stock
(par $1). Price — $20 per share. Proceeds — To selling
stockholder. Office—400 West Vickery Blvd., Fort Worth,
Texas.

Underwriter—Kay

and

Company,

Inc., Houston,

Shares

in

purchaser is also to receive a non-transferable option to
purchase a like number of shares on or before April 7,
1960 exercisable at $2.50 per share.
Of the total, 37,429
shares
are
to
be issued in exchange for outstanding
shares of Southeastern Building Corp., on a one-for-one

basis, conditional upon the tender of sufficient Build-,
ing stock for exchange so that the Development Corp.
will own at least 75%; 21,535 shares are covered by
outstanding warrants which are exercisable at $2.50 per
share. Price—For public offering, $2.50 per share.
Pro¬

market.

Price—At

Office—1033-30th

investment.

Proceeds—For

•Street, N. W., Washington 7, D. C. Investment Advisor—
Investment

^Shares

in

Fund

Management

Corp.

Former Name

—

America, Inc.

Shell Electronics Manufacturing

Corp.

(10/12-16)

Aug. 28 filed 170,000 shares of common stock (par 10
cents). Price—$2 per share. Proceeds—For general cor¬
porate purposes, including the repayment of indebted¬
ness, the purchase of equipment, and for working cap¬
ital.
Office
112 State St., Westbury, L. I., N. Y.
Underwriter—Schweickart & Co., New York.
—

Sire Plan of

Tarrytown, Inc.

July 13 filed $900,000 10-year 6% debentures and 18,000
cumulative, non-callable, participating pre¬
(par $10). Price—$100 per unit consisting
of one $50 debenture and one share of preferred stock.

flhares of $3
ferred stock

The minimum sale is expected to be five units. Proceeds
—For general corporate purposes incidental to the ac¬

quisition of land and buildings in T&rrytown, N. Y., and
alterations and construction thereon.

Office—115 Cham-

-bers

Street, New York City. Underwriter—Sire Plan
Portfolios, Inc., 115 Chambers Street, New York City.
Offering—Expected in September.

Skaggs Leasing Corp.
June 4 (letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share.
Proceeds—For
general corporate purposes. Underwriter—Harrison S.
Brothers &

Co., Salt Lake City, Utah.

*

Skiatron

Electronics & Television

Corp.
Aug. 18 filed 172,242 shares of common stock (par 10
cents), of this stock, 123,500 shares were issued or are to
be

issued

shares

are

To

—

used

be

to

and

Southeastern

complete building

to

of
Office—

program

divisions.

other

expand

Hattiesburg, Miss. Underwriter—None.
California

Southern

Co.

Gas

(9/29)

Aug. 24 filed $30,000,000 of first mortgage bonds, series
D, due Oct. 1, 1984. Proceeds-—To repay short-term in¬
debtedness to Pacific Lighting Corp., the issuer's parent

Sept.

15,

Oct.

of

as

is expected to approximate $3,000,1959, with the balance to be used to

1,

construction
and expansion program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and Merrill Lynch, Pierce,

finance

in

&

part the costs of the company's

Smith Inc.

1959,

pursuant

to

warrants

issued

in

to be issued to various persons

1956;

13,742

in lieu of cash

for

services rendered, pursuant to authorization of the
directors in January 1958; 30,000 common shares are to
be offered by owner Arthur Levey for sale by brokers.
JProceeds—For working capital.
Underwriter—None.

Office—New York City.

• Sottile, Inc.
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),

of which 1,543,000 shares are to be issued and sold for
the account of the company, and 457,000 shares, repre¬

on

the basis of one new
per share. Proceeds—

then held. Price—$4.62Vz

9 shares

corporate purposes, Including the developing
of three drive-in restaurants on company-owned building
For geneial

Office—1700

sites.

West

Washington

Stelling Development Corp.

(letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—
land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

(jointly); White, Weld & Co. and

(par one cent).

For mortgages,

Strategic Materials Corp.
of common stock (par $1), to
offered for subscription by common stockholders at

June 29 filed 368,571 shares
be

the rate of
—To be

one new

share for each five shares held. Price

supplied by amendment. Proceeds—For payment

of
bank
loans; for payment of a note; for working
capital; for expenditures by Strategic-Udy Metallurgical
& Chemical Processes Ltd., which owns and operates
a
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal subsidiary,
and by its other direct subsidiary, Strategic-Udy Pro¬
cesses, Inc., which owns and operates a laboratory at
Niagara Falls, N. Y.; as working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.
Lunt & Co., Buffalo, N. Y.; and Allen & Co., New York.

Stuart Hall

Co., Kansas City, Mo.
(letter of notification) 23,169 shares of common
(par $1). Price—To be supplied by amendment.

June

8

stock

Proceeds—For

—White

Underwriter

general corporate purposes.
Co., St. Louis, Mo.

&

ic Sylvania

Electric

Products,

Inc.

(9/24)

St., Los Angeles, Calif., at 8:30 a.m. (PDT) on Sept.*29,

Sept. 1 filed $25,000,000 mf'sinking-fund debentures, due
Sept. 1, 1984. Price — To be supplied by amendment.
Proceeds—To be applied to indebtedness.
Office—730
Third Avenue, New York. Underwriters—Paine, Webber,

1959.

Jackson

Dillon, Union Securities & Co. (jointly). Bids—
Expected to be received at Room 1216, 810 South Flower

Frontier

Southern

Co.

Finance

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working

10%

may

pay

with

the sale

a

Southern

of

officials, who are making the offering,
commission to dealers in connection
their shares.

Gulf

Utilities,

Inc.

135.000 shares of common stock

Price—To

be

supplied

amendment.

by

Leverton, Reiner Co., New York.
•

Southern

New

(9/14)
Aug. 24 filed 689,000 shares of common stock (par $25),
to be offered for subscription to stockholders of record
Sept. 8, 1959, in the ratio of one new share for each 10
shares then held; rights to expire on Oct. 9, 1959. Price
—$35 per share. Proceeds — To repay advances from
American Telephone & Telegraph Co. (owner of 21.3%
of the outstanding stock) which are expected to approxi¬
mate

England Telephone Co.

$20,000,000, and the balance, if

any,

to be used for

&

Curtis, and Halsey, Stuart & Co. Inc.,

both

York.

Tang Industries, Inc.
,
May 25 filed 110.000 shares of common stock (par 10
cents). Price—-$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
for

certain

49

expenses

working capital.

for

and

Jones

Barnes

(par 5c).
Proceeds—For
general corporate purposes, including expansion. Office—
7630 Biscayne Blvd., Miami, Fla. Underwriter—Jaffee,
Aug. 24 filed

New

of

capital and to purchase products for company. Office—
615 Hillsboro St., Raleigh, N.
C. Underwriter—None,

Road, Waltham, Mass.
& Co., Inc., New York.

Underwriter

Office—
—

David

ir Tassette, Inc.
Aug. 26 (letter of notification)

100,000 shares of class A
Price—$3 per share. Proceeds—
For purchase of furniture and fixtures, selling, adver¬
tising and other working capital. Office—170 Atlantic

stock

10

(par

cents).

St., Stamford, Conn. Underwriters—Amos Treat & Co.,
Inc. and Truman, Wasserman & Co., both of New York,
N.

Y.

•

Technical

Material

(9/21-25)

Corp.

Aug. 20 filed 85,000 shares of common stock (par 50
cents), of which 80,000 shares are to be publicly offered
and 5,000 shares to employees. Price—To be supplied by
amendment. Proceeds—To be added to working capital
for

the

additional inventories

of carrying

purpose

and

accounts receivable. Office—700 Fenimore

general corporate purposes. Office—-227 Church St., New

roneck,

Road, MamaPeabody & Co.,

New York.

^Southern New England Telephone Co. (9/21)
Aug. 24 filed 1,467,120 rights to purchase an undeter¬
mined number of shares of capital stock (par $25) to be
issued to American Telephone & Telegraph Co., which
owns 21.3%
of the outstanding stock of Southern New
England Telephone Co. Underwriter—To be determined
by competitive bidding. Probable bidders; White, Weld
& Co.; The First Boston Corp.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT) on Sept. 21.

^ Space

Components,

Inc.,

Washington,

(letter of notification) 200,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
working capital, etc.' Office—1048 Potomac St.,
N. W., Washington, D. C. Underwriters—Bertner Bros,
and Earl Edden Co., both of New York, N. Y.
stock

—For

•

Sports Arenas

Nov.

18

(Delaware)

Inc.

$2,000,000 of 6% 10-year convertible de¬
(subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinepotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand two present establishments by increasing the
number of alley beds by eight at Yorktown Heights and
by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on leaseholds, telephones and utilities; and
$395,000 for working capital. Underwriter—None. Stop•

proceedings instituted by SEC.

Sports Arenas

Nov.

18

(Delaware)

Inc.

filed

461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Road,

—None.

Great Neck, N. Y.
Underwriter
Stop order proceedings instituted by SEC.

Products, Inc. (9/8)
118,270 shares of common stock (par $2),
of which 52,100 shares are to be offered for the account
of the issuing company and 66,170 shares, representing
outstanding stock, are to be offered for the account bf a
selling stockholder. Price — To be supplied by amend¬
ment. Proceeds—For general corporate purposes, mostly
in connection with equipping a new plant and reducing
bank
van,

loans

incurred

for

its

construction.

.

Natural

'

of

Microwave

Gas

Gas Co.

This offer is

is

Transmission

on

the basis of

of

East

redeemed

y^K;

>

one

share

of Tennessee

Tennessee

and

shall

cancelled.

have

East

been

purchased

Tennessee

is

or

presently

negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the redemption of the 5.20% cumula¬
tive preferred stock. Office—Tennessee Bldg., Houston,
Texas. Dealer-Managers — Stone & Webster Securities
Corp., and White, Weld & Co., both of New York.

ir Tennessee Investors, Inc.
*
,
Aug. 28 filed 500,000 shares of common stock (par $10),
Price—$12.50 per share. Proceeds—To provide invest¬
ment capital and consulting and advisory services to
small businesses.

Office—Life & Casualty Tower, Nash¬
Underwriters—The offering is to be made
on a "best efforts" basis through NASD
members, who
will receive an underwriting commission of 90 cents
per share.

ville, Tenn.

•

Tex-Star Oil & Gas Corp.

Aug.

12

filed

$1,000,000 of

6%

(9/8-11)
convertible debentures,

due Sept. 1, 1974. Price—At 100% of principal amount.
Proceeds—For general corporate purposes, including ex¬

ploring for oil and acquiring properties and small,oil arid
gas companies. Office—Meadows Bldg., Dallas, Texas.
Underwriters—Stroud & Co., Inc., Philadelphia, Pa., and
Auchincloss, Parker & Redpath, New York.• Texmar Realty Co., New York
Sept. 1 filed $1,819,000 of limited partnership interests
the company. Price—At par ($5,000 per unit). Pro-

in

v
■

CIjM

Co.

subject to various conditions, one of which
cumulative preferred stock ($25

'■

;n':l

Tuba

that all of the 5.20%

.v,'

tov•

r

Electronic

Gas Common for 2.75 shares of East Tennessee common.

Office—Dela-

'

subscription

Inc.

Aug. 21 filed 473,167 shares of common stock (par $5),
to be exchanged for common stock of East Tennessee

Wis. Underwriter—Loewi & Co., Inc., Milwaukee,
-

Underwriter—Kidder,

stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L.
Wolf Associates, Inc., Washington, District of Columbia*

Sta-Rite

Aug. 7 filed

Wis.

the

full

Co.,

par)

filed

bentures

order

Y.

Tennessee

Aug. 20
mon

N.

Technology, Inc.
May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in

D. C.

(9/23)

frj




Bioomington,

St.,

Underwriter—White & Go., St. Louis, Mo.

111.

corporation, which
000

of¬
record
share for each

by subscription by common stockholders of

stock

(9/21)

Aug. 14 filed 738,964 shares of common stock (par $1),
of which 340,000 shares will be offered publicly.
Each

ceeds

(9/15)

Inc.

Shake,

June 3

American

Industry, Inc.
filed 50,000 shares of common stock.

12

Thursday, September 3, 1959

.

fered

Haven, Conn. Underwriter—None.

Texas.

Dec.

'

/

Development Corp.

Southeastern

but the company

Inc.

July 15 filed 200,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For investment.
Office—23 Hazelton Circle, Briarcliff Manor, N. Y. Gen¬
eral Distributor—Samson Associates, Inc.

Service

!v

Eastman

share of Cornell capital stock.

•

.

Aug. 24 filed 65,505 shares of common stock, to be

York. Offering—Expected

& Co., New

Stearns

—Bear,

Fenner

Regis Paper Co; ' *

Aug. 12 filed 453,731 shares of common stock, to be of¬
fered in exchange for the outstanding shares of the cap¬
ital stock of the Cornell Paperboard Products Co. on
the basis of .68 of a share of St. Regis common for each

stock

outstanding at the date of the stock offering; to
in the capital stocks of. six of the company's
bank subsidiaries; to repay a bank loan of $6,400,-

stock

June 26
The

Steak'n

senting

35

wholly-owned subsidiary; for the purchase of
tooling to expand production; for working capital
general corporate purposes. Office—93 Worth St.,

Bag,

.

--4i

,

"

,

•

c

„

Z

.

J

Km..

->'* t'

•

-*■

.»♦*«. i

SVOTt

■,

>'j

Volume

190

Number 5878

.

.

The Commercial and Financial Chronicle

.

(961)
ceeds—To be used to pay for properties.
—Lifton Securities, Inc. and

Underwriters

Hechler-Weingrow Secu¬
rities, Inc., both of 375 Park Avenue, New York, N. Y.
Textron

Electronics

Co.

Aug. 3 filed 500,000 shares of outstanding common stock,
to be offered
by Textron Industries, Inc., the present
holder thereof, to Textron Inc. stockholders on the basis
of

share

one

shares

of

of

Textron

Electronics

stock

for

each

10

Textron

Inc. stock held as of Sept.
2, 1959;
rights to expire on Sept. 25, 1959. Price—To be supplied
by amendment. Office—10 Dorrance Street,
Providence,
R. I. Underwriter—None.

• Tower's Marts, Inc.

indebtedness

by about $300,000, with the balance

to be added to
working capital of the

company and its
subsidiaries.
Office—210 East Main Street,
Rockville,
Conn. Underwriters—To be
supplied by amendment.
Transcon Petroleum &

Development Corp.,

;

Mangum, Okie.
"v_//
(letter of notification) 300,000 shares of
stock.

com¬

Price—At

par
($1 per snare). Proceeds—
development of oil properties. Underwriter—First

For

Investment Planning Co., Washington, D. C.

>'/

Transdyne

Corp.

(9/15)
Aug. 7 (letter of notification) 300,000 shares of common
stock
(par one cent). Price—$1 per share. Proceeds—
For relocation of
plant; purchase of additional electronic
laboratory equipment; purchase of additional machine
shop equipment; development of new products and for
working capital. Office—58-15 57th Drive, Maspeth, New
York. Underwriter—Simmons &
Co., New York, N. Y.

Tungsten Mountain Mining Co.
May 21 (letter of notification), $1,00,000 principal amount
of 7% first
mortgage convertible bonds, to be offered
in denominations of $500 and
$1,000 each. Price—100%
of principal amount. Proceeds—For
construction, instal¬
lation of machinery and
equipment and working capital.
Office—511 Securities Building, Seattle
1, Wash.
writer—H. P. Pratt & Co., Seattle
4, Wash.
Union Electric Co. (9/10)
Aug. 7 filed 1,036,602 shares of
to be offered for

Sept.

10,

1959,

stock

common

Under¬

(par $10),

subscription by stockholders of

on

the basis of

one

new

share

record

for

each

10 shares then

held; rights to expire Sept. 30. The com¬
will also offer to its employees and those of its

pany

subsidiaries
to

shares

not

deliverable

under

stockholders, and also 21,123 shares

treasury.

the

now

offering

held in

the

Price—To

be supplied by amendment.
Pro¬
general corporate purposes, including the
of additions to plant and property and the

ceeds—For

financing

retirement of loans already incurred for these
Office-—315
writer

North

12th

Blvd.,

St.

Louis,

purposes.

Mo.

Victoria
in Canadian

Under¬

To be determined by
competitive bidding.
Probable bidders: Lehman
Brothers; White, Weld & Co.;
Eastman Dillon, Union Securities & Co.
and Shields &
Co. (jointly); Merrill
Lynch, Pierce, Fenner & Smith,
Inc.
Bids—Expected to be received on Sept. 10, up to
a.m.

•

United

(EDTJ.

./V\.

Artists

Corp.
"
July 31 filed 100,000 shares of outstanding common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To

selling stockholders. Office—729 Seventh Ave.,

of

a

$3.50

of

common

stock.

Price—
pur¬

.

—

—

34th

Street, Newport News, Va. Underwriter—Willis, Kenny
Ayres, Inc., Richmond, Va.

&

United

Employees

Insurance

Co.

April 16 filed 2,000,000 shares of common stock (par
$5).
Price — $10 per share. Proceeds
For acquisition oi
—

operating properties, real and/or personal, including
office furniture, fixtures, equipment and office
space, bj
lease or purchase. Office
Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., if
—

President.
•

ible preferred

stock. Price
At par ($8.50 per
share).
Proceeds—To be used to pay for construction of
grain
—

elevator and balance will be used for
additional

Mo.
•

Underwriter—Dempsey-Tegeler

working

& Co., St. Louis,

Offering—Expected this week.

United

States
Communications, Inc. (9/8-11)
Aug. 5 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$2.25 per share. Proceeds—
For a plant and
equipment; purchase and construction
of research and development test
equipment and labora¬
,

tory and operating capital. Office—112 Clayton Avenue,
East Atlantic Beach, Nassau County, New York. Under¬
writer—Heft, Kahn & Infante, Inc., Hempstead, N. Y.
United Tourist

Enterprises, Inc.
shares of class A common stock
(par 50 cents).
Price — $2 per share.
Proceeds
For
development and construction of a "Western Village"

Jan. 28 filed 4,500,000

—

-

and

for construction

vention

of

a

Grand

Hall, to be constructed in

of Estes

.Office

—

Estes

Hotel

and

the immediate

Con¬

vicinity

Park-Chalet, located in Larimer County, Colo.
330 South 39th
Street, Boulder, Colo. Under¬

writer—Mid-West Securities Corp.,
Littleton, Colo.

it United Utilities, Inc. (9/29)
Sept. 2 filed 229,606 shares of common
to be offered for

in

the ratio of

representing

holders

thereof.

Proceeds—To

redeem

outstanding stock,
Price—About $28-$32
at

105%

of

the

by
per

value

par

thereof, 1,500 shares

of class A preferred stock
($100
par) and at 120% of the par value
thereof, 375 shares of
$160 par preferred stock now
outstanding and the bal¬

will

ance

be

added

to

the

company's working capital
"in anticipation of
further expansion of its business."
Office—20 West 9th
St., Kansas" City 5, Mo. Underwriter
—Kidder, Peabody & Co., New York.
Waltham Engineering and Research
Associates

July 28 filed $1,065,000 of participations in
partnership
interests. Proceeds—To
purchase land and buildings of
Waltham

Engineering and

Mass., and for

Research

Center, Waltham,

expenses connected to the

purchase. Of¬
fice—49 W. 32nd
Street, New York 1, N. Y. Underwriter
—The First Republic
Underwriters Corp., same address.
The offering is
expected in September.

Washington Mortgage and Development Co., Inc.
Aug. 24 filed 100,000
$5

per

notes

share.

secured

shares

Proceeds

—

of

For

by real estate.

stock.

common

investment

in

Office—3028

Price—

mortgage

Connecticut

Avenue, N. W., Washington, D. C. Underwriters—Amer¬
ican Diversified Mutual
Securities, Inc. and Gildar &
Co., both of Washington, D. C.
•

Wellington Electronics, Inc. (9/8-11)
May 6 filed 240,000 shares of common stock
cents.
a

Price—$6

bank

per

share.

Proceeds—For

75

note; to complete the automation of the etched
plant at Englewood, N. J.; for manu¬

production

to be leased to capacitor manufac¬
turers; and for working capital. Office-r-65 Honeck St.,
Englewood, N. J. Underwriters—Amos Treat & Co., Inc.,
and Truman, Wasserman
& Co., both of New York.

Statement effective July 8.
West

Coast

subscription

one

new

on

share

or

for

stock

(par $10)

about Sept.
each

10

29, 1959

shares

ihrice—To be -supplied by amendment. Proceeds
construction program.

-

held,

—

For

Underwriter—Kidder, Peabody &

Co., New York.




for

the

establishment of

Office

testing

new

a

& Co., New York.

com¬

—

180

laboratory.
/

•

ective
Allied

Radio

Aug. 25 it
fering of

was

Co.

(9/15)

Angeles and New York.

it West Florida Natural Gas Co.
Aug. 31 filed $837,000 of 7V2% 30-year subordinated in¬
come debentures and warrants to
purchase 25,116 shares
of class A common stock ($1
par). Price—$100 per unit
consisting of one $100 debenture and a warrant to pur¬
chase three shares of class A
To be applied, together with

common

stock. Proceeds—

moneys in the sinking fund
of the issuing
company, to the redemption of the out¬
standing 6% 20-year debenture bonds at their redemp¬
tion price of 103% of their
principal amount. Office—
Maple and 3rd Streets, Panama City, Fla.
Underwriter

&

Hough, Inc., St. j Petersburg,
Expected in September.

Fla. Offering,

'

--

•-

V-

.j4Ir

Western Empire Life Insurance Co.
June 29 filed 212,000 shares of common stock and
op¬
tions to purchase 172,701 shares
(plus the underlying

shares). The company proposes to make a public offer¬
ing of three blocks of stock in amounts of 40,430, 38,570
and 36,935 shares at prices of
$1, $2 and $3, respectively.
The remaining 96,065 common shares and
options for the
172,701 shares (together with sharer, underlying such
options) are to be offered by the present holders thereof.
The options permit purchase of the
underlying shares
at $1 per share.
Proceeds—For general corporate pur¬
poses. Office—2801 East Colfax Ave., Denver, Colo. Un¬
derwriter—None.

^- Western Heritage Life Insurance Co.
Aug. 26 filed 500,009 shares of common stock. Price—
$2 per share. Proceeds—For general corporate purposes.
Office—533 East McDowell Road,
Phcen:xt Ariz. Under¬

Corp.

reported that

common

a

registered secondary of¬

stock is being planned. Proceeds—To

selling stockholders.

Underwriter—White,-Weld & Co.

American Electric Power Co.

(10/22)

Aug.

26 it was announced that the company plans to
sell 1,200,000 shares of common stock
(par $10). Proceeds

—Principally to retire $52,000*000 of notes, due 1959.
Underwriter—To be determined by competitive
bidding.

Probable bidders:
Halsey, Stuart & Co. Inc., Eastma®
Dillon, Union Securities & Co., and The First Boston

Corp., all of New York. Bids—-Expected1t© be received
up

to 11

(EDT)

a.m.

on

Oct. 22.

American Gypsum Co.
July 15 it was reported that

ti

.

the company will register
debt and equity securities later this
year. Proceeds—For
construction of a gypsum products
plant in Albuquer¬

New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.
que,

it American Jet School, Inc., Lansing, Mich.
Aug". 31 it was announced that the corporation plans to
issue and sell 100,000 shares of common stock
(par $1).
Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to a national one, and
__

introduction
Business

of

new

and

courses

resident study

schools.

In correspondence school business.
Kalamazoo St.,

1609

Office—

—

Lansing, Mich. Underwriter

New

York

to

be

named

in

early

—
In
Offering—

October.

Planned for mid-October.

American Telephone & Telegraph Co. (11/17)
19 the directors authorized a new issue of $250,-

Aug.

000,000 of debentures. Proceeds—To be used for the im¬
provement

and expansion of Bell Telephone services.
Underwriters—To be determined by competitive bidding.
bidders: The First Boston Corp. and
Halsey,

Probable

Stuart & Co. Inc. (jointly); Morgan
Stanley & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
on

Nov. 17.

Atlantic

City Electric Co.
Aug. 3 it was reported that the directors are contemplat¬
ing the issuance and sale of a small amount of common
stock, after a three-for-two stock split.
Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬
curities &

Co.; and Smith, Barney & Co., both of New
Offering—Expected during the latter part of

York.
this

year.

Aurora

Telephone

Aug. 13 filed 335,000 shares of common stock (par
$10),
of which 10,000 shares are to be offered
to employees
under the company's Employee Stock
Option Plan, and
125,000 shares offered for public sale. Price—To be sup¬
plied by amendment. Proceeds—For construction, includ¬
ing the repayment of about $800,000 ©f bank loans al¬
ready incurred for this purpose. Office—1744 California

—Beil

Wilson

of

Ave., New York.

received

(par

repayment

St., Everett, Wash. Underwriter—Blyth & Co., Inc., Los

United (Industries
Co., Inc., Houston, Texas
Aug. 5 filed 100,000 shares of 60 cent cumulative convert¬

capital.

for

facture of machines

share. Proceeds—For general corporate
and to reduce indebtedness.
Office
222

per

distribution and

company

290,000 shares,

share.

foil

poses

of national

Wadded & Reed, Inc.
(9/21-25)
Aug. 17 filed 370,000 shares of class A common stock
(par
$1), non-voting, of which 80,000 shares are to be offered
for public sale for the
account of the issuing

of

United Discount Corp.
July 23 filed 500,000 shares

program

present

of

(par $2

•

the

stock, to be
Virginia Iron, Coal

common

of one share

shares of Virginia common.

Price—$4.50 per share. Proceeds—
operate a racing plant; and for work¬

working
capital. Office— 373 Herzl St.,
Brooklyn, N. Y. Under¬
writer—Caldwell Co., New York, N. Y. Offering—Ex¬
pected sometime in September.

and

the basis

on

funds).

Vita-Plus Beverage
Co., Inc.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation

New York. Underwriter—F. Eberstadt &
Co., New York.

(Sept. 3-4).

stock

.

Office—Stamford, Conn. Underwriter—Myron A. Lomas¬

ing capital and other corporate purposes. Office—Notre
King Street, Winnipeg, Canada. Under¬
writer—Original underwriter has withdrawn.

Offering—Expected today

or tomorrow

common

17%, or 34 cents
be paid to sellers of such shares

Dame Avenue at

—

11

and

-

ney

May 25 filed 1,000,000 shares of

be sold by sales¬

by registered broker-

or

exceed

—

for

Raceway

to

not

York Research Corp. (9/10)
Aug. 10 filed 150,000 shares of class A stock (par $1).
Price—$3 per share. Proceeds
For general corporate
purposes, including the discharge of various indebted¬
ness and the
purchase and installation of new equipment;

Variable Annuity Life Insurance Co. of America
filed $4,000,000 of Variable
Annuity Policies.
Price—No less than $120 a year for annual
premium
contracts and no less than

single premium
conu^cts.
Proceeds—For
investment, etc. Office—1832
M Street, N.
W., Washington, D. C. Underwriter—None..

for five

mon

Madison

Statement effective Aug. 11.

$1,500

may

Coke Co.

and

Underwriter—O'Malley Se¬

curities Co.

commission

it Wilson Brothers
Aug. 31 filed 261,752 shares of
exchanged for the common stock

(partnership in¬
Price—$5,378.39 per unit.

terests) to !.e offered in units.
Proceeds—For investment.

A

share,

per

Some of the shares
may

employed by the company,

dealers.

Vista Investment
Co., Phoenix, Ariz.
filed 80 investment contracts

29

To construct and

March 20
mon

Val
June

writer—None.
men

April 21

Aug. 28 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce

Universal Finance Corp.
\ ;
July 13 (letter of notification) 10,000 shares of common
stock
(par 15 cents); Price—$5 per share. Proceeds—
For general operating funds. Office—700
Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National
Corp.,
San
Antonio, Tex.

37

Plastics Corp.

July 30 it

was reported that the company plans earlyregistration of 225,000 shares of common stock (part for
selling stockholders), Business — Manufactures plastic
airplane models.
Underwriter — Burnham & Co., New

York.

•

Barton's

July 15 it

Candy Corp.
reported

that

the

is planning
19-year-old
company operates 67 retail candy stores in the Greater
New York area, and 45 other outlets in the area north
was

an

issue of

of

Atlanta, Ga., and east

common

company

Business

stock.

of

—

Chicago,

The

111.

Gross

sales

volume in the fiscal year ended June 30 was reportedly
about $10,000,000. Proceeds — In part to selling stock¬

holders, and, in part, to the

company, for the expansion
facilities, for the organization of additional
outlets, and for general corporate purposes. Underwriter
—D. H. Blair & Co., N. Y. C.

of production

Benson

June

10

Manufacturing

it

was

announced

Co.,
that

Kansas City, Mo.
the

company

contem¬

plates an offering of $4,560,000 of common stock.
Pro¬
ceeds— For expansion program and additional working

capital. Business—The company is engaged in
facture of aircraft and nttssile parts, aluminum

the manu¬
containers
and beer barrels, aluminum curtain wall sections for the
building industry and other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.

it Border Steel Rolling Mills
Aug. 31 it was reported that the company may issue and
.

sell in the

future $2,000,000 of

sinking fund deben¬
tures due 1974 and 200,000 shares of common stock to be
offered in units of $50 of debentures and five common
shares. Underwriters—First Southwest Co., Dallas, Tex,
near

and Harold

Boston

S. Stewart &

Edison

Co., El Paso, Tex.

Co.
,

,

.

.,

July 23 it was reported that at a meeting to be h^kl
Sept. 2 stockholders will consider issuing not more than
$15,000,000 of first mortgage bonds. Proceeds—To retire
short-term bank loans. Underwriter—To be determined
Crx-nfinupcf

nn

nacie

38

The Commercial and Financial Chronicle

38

.

.

Thursday, September 3, 1959

.

(962)

Continued from page 37

Essex Universal Corp.

i

by competitive bidding. Probable bidders: Halsey, Stuart
& Co., Inc.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Lehman Brothers; and White, Weld & Co.
Edison Co.

Boston

July 23 it was reported that at a meeting to be held Sept.
2 stockholders will consider issuing 271,553 shares of
common stock, to be offered to stockholders on the basis
of one new share for each 10 shares held as of the record
date. The last rights offering was underwritten by The
First Boston Corp., New

Brooklyn

York.

Gas Co. ■_
reported that the company is

Union

19 it was
contem¬
plating some additional equity financing, the form it will
take will be decided on shortly. Proceeds—For construc¬
Aug.

Offering—Expected before the end of the

tion program.
year.

Buckingham Transportation,

Inc.

(9/21-24)

July 17 the company sought ICC approval for the is¬
suance of 250,000 shares of class A common stock
(par

Underwriter—Cruttenden, Podesta & Co., Chicago,

$1).

Price—$10 per share.
New Name—The company's
name will be changed to Buckingham Freight Lines.
111.

Central & Southwest Corp.

May 19 it was announced that the company in view oi
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
writers
To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Harriman Rip¬
—

(jointly); Lehman Brothers and Lazard
The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.
ley & Co., Inc.
Co.

&

Freres

Sept. 9 for the purchase from it of $3,150,000 of equip¬
ment trust certificates to mature semi-annually from

on

March

1, 1960 to Sept. 1, 1974, inclusive. Probable bid¬
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

ders? Halsey,

House, Inc., Lansing, Mich.
was announced company plans to issue and
stock (par 10 cents). Price
—$3 per share. Proceeds — To build chain of coffee
houses, establish commissaries and for general corporate
purposes. Office — 1500 Clifton Ave., Lansing, Mich.
Underwriter—In New York to be named in early Octo¬
ber. Offering—Planned-for mid-October.
it Coffee

sell 100,000 shares of common

Columbia

Gas

(10/8)

System Inc.

Aug. 19 it was reported that the company is contemplat¬
ing the issuance and sale of $25,000,000 of debentures
due Oct. 1, 1984. Proceeds—For 1959 construction pro¬
gram. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc. and White*
Weld & Co. (jointly); Morgan Stanley & Co. Registratton
—Scheduled for Sept. 11. Bids—-Expected to be received
up to 11 a.m., (New
of the company, 120

York Time) on Oct. 8 at the office
East 41st Street, New York.

Consolidated Edison Co. of New York Inc.

July 30 it

(12/1)

reported that the company plans the is¬
$50,000,000 first and refunding mort¬
gage bonds. Proceeds — For construction expenditures.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey,-Stuart & Co. Inc.;
Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
was

on

Consolidated

19,

company

Dec. 1.

Natural Gas

Co.

James Comerford, President, announced that
plans later in year to issue and sell $20,000,000

of debenture

bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive

able bidders:

bidding. Prob¬
Halsey, Stuart & Co. Inc.; Morgan Stanley

& Co. and The First Boston Corp. (jointly);
White, Weld
& Co. and Paine, Webber, Jackson & Curtis
(jointly).

Cyprus Mines Corp.
July 15 it was reported that approximately 1,000,000
shares of a secondary issue common stock will be reg¬
istered in the Fall. Underwriter—Merrill Lynch,
Fenner & Smith Inc., New York.
Dallas

Power &

Aug. 3 it

was

Pierce,

Light Co.

reported that the company contemplates

the issuance and sale of about

$20,000,000 of senior

se¬

curities, but type

or types has not as yet been deter¬
Underwriter—To be determined by competitive
bidding. Probable bidders: (1) For bonds: Halsey, Stu¬

mined.

art

&

Bids—Expected Oct. 27.

Corp.

General

a

the company plans early
registration of $1,500,000 of 15-year bonds and common
stock, to be offered in units. This will be the company's
first public financing. Business—Manufacturer of stretch
wool panel flooring.
Underwriters—H. M. Byllesby &
Co., Inc., Chicago, 111.; Mason-Hagan, Inc., Richmond,
Va.; Howard, Weil, Labouisse, Friedrichs & Co., New

York

(11/24)

Utilities Co.

reported that the company plans the is¬
of $16,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Aug. 20 it

was

sale

and

Probable

bidders:

Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co.
(jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Lehman Bro¬
thers; Stone & Webster Securities Corp. Bids—Expected
Halsey,

be received up

to

to

11

Stuart

&

•

Harrison

(EST)

a.m.

on

Aug. 6 it

competitive bidding. Probable bidders: Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Smith Inc. and
Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬

Hawaiian

Co.

Inc.; The First Boston

Corp.; Salomon Bros.

&

Hutzler; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,
Union Securities & Co.; Blair &
Co., Inc. and Baxter &
Co. (jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc. and Merrill Lynch,
Pierce, Fenner & Smith
Inc. (jointly); Salomon Bros. &
Hutzler; Equitable Se¬
curities Corp.; Eastman Dillon, Union Securities &
Co.;
Lehman Brothers; Blair & Co.
Inc.; The First Boston
Corp. Offering—Expected in the latter part of this year.

Duquesne Light Co.
Aug. 3 it was reported that the company is contemplat¬
ing the issuance of an undetermined amount of subor¬
dinated

convertible

debentures.

Underwriter

—

To

be

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly); White, Weld
& Co.; The First Boston Corp. and Glore, Forgan & Co.

(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Offering—Expected later this
year.




Bids—Expected to be received sometime

it New-Era Corporation, Rochester, Mich.
it was reported that this company contemplates
approximately 200,000 shares of

Sept. 1

the basis of

Hawaiian
was

seven

one

shares held.

share

$4,500,000 of new bonds.

Northern

July 31 it

Last bond issues were placed

Electronics

Hoffman

Corp.

reported that there

was

is

a

possibility that

this company may issue and sell some additional stock.

Natural Gas

—$3
tions.
ard

share.

Proceeds—For acquisition of radio sta¬
Business—Radio broadcasting.
Office—130 Shep-

per

St., Lansing, Mich.
Underwriter—In New York to
early October. Offering—Planned for mid-

Philadelphia
Aug. 5 it

was

with

the

Electric Co.

SEC

and

Eastman Dillon, Union Securities & Co., Merrill Lynch,
Pierce, Fenner & Smith Inc., and White, Weld & Co.
(jointly); The First Boston Corp. and Harriman Rip¬

ley & Co.

(jointly).

Bids—Expected to be received

it I. T. I. Electronics Inc., Clifton, N. J.

B. Burnside

&

Co., Inc., New York.

Puget Sound Power & Light Co. (10/28)
May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds re¬
portedly in the amount of $20,000,000, later in the year.
Proceeds—To reduce bank loans.

determined

by

received

Oct. 28.

City Power & Light Co.
Dec. 29 it was reported that the company plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear.
Stearns & Co. (jointly).
Bids—Expected later in the
year.

*

Aug. 19 it

(10/8)
reported that the bank's stockholders will

was

Oct.

Louis

6

(Mo.)

to

approve a 2-for-l stock split of its
75,000 outstanding shares of common stock (par $20),
a 3V2% stock dividend on the 150,000 shares of new com¬
mon stock (par $10)
outstanding, if approved, would be
payable on or about Nov. 2. An offering of 45,000 shares
of additional common stock (par $10) would be issued
to stockholders of record on or about Oet. 8, 1959; rights
to expire on or about Oct. 2f2.
Proceeds—To increase
capital and surplus. Underwriter—G. H. Walker & Co.,
on

Louis, Mo.
I

Maritime

Aug .24

stock

on

(par $2.50).

Registration—Planned for Sept. 21.

The ICC has approved the proposed
Underwriter—Blyth & Co., Inc.,

two-for-one stock

split.

York.

Electric

& Gas Co.

June
to

22, S. C. McMeekin, President, announced plana
sell approximately $8,000,000 of bonds in
December,
Proceeds—To

1959.

construction

rent

bank loans incurred for

repay

Previous

program.

issues

have

cur¬

been

placed privately.
Southern

Bell

Telephone & Telegraph Co.
'

Aug. 24 company announced it plans to issue and sell
$70,000,000 of 35-year debentures. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be
Oct.

on

20.

Registration

—

company

offered to its

common

stockholders the

stock

on

held

the basis of
of

record

one

new

share for each

com¬
seven

July 24. Warrants will expire
Sept. 30. Price — $13 per share. Proceeds — For capital
expenditures. Underwriter—None.

for

Planned

late

September.
it Tex-Tube,
Aug. 28
of

Inc.

it was announced

have

company

authorized

stock.

common

that
an

the stockholders

additional

Proceeds—For

150,000

working

of this

shares
capital.

Underwriter—Moroney, Beissner & Co., Houston, Tex.
Offering — Expected in the near future of a block of
stock.

common

Transwestern.

Aug. 25

it

Pipe

reported

was

sell

issue and

Line Co.
that this

$40,000,000 to

company

$50,000,000 of
build

expects

derwriters—Lehman Brothers and Merrill
& Smith

Fenner

Western

Aug. 25 it
ance

a

sale

Electric

Co.

(10/21)

reported that this company plans the issu¬
of $8,000,000 first mortgage
bonds. due

Underwriter—To

1989.

bidding.

Un¬

Lynch, Pierce,

Inc., both of New York.

Massachusetts

was

and

to

securi¬
pipe line

new

from West Texas to the Arizona-California border.

Probable

be

determined

by

competitive

bidders:

Halsey, Stuart & Co. Inc.;
Eastman Dillon, Union Securities & Co.; Equitable Secu¬
rities Corp. and Lee Higginson Corp.
(jointly); The
First Boston Corp. and White, Weld & Co.
(jointly);
Blyth & Co., Inc. Bids—Expected to be received up to
11

Telegraph & Telephone Co. Ltd.

right to subscribe for 264,013 additional shares of
shares

To be

—

Ryder System Inc.
7
Aug. 3 it was reported that the company plans issuance
this Fall of an additional 75,000 shares of present com¬
mon
stock (par $5), or 150,000 shares of new common

ties, probably in units. Proceeds—To

Manchester Bank of St.

mon

Underwriter

competitive

bidding. Probable bidders:
Halsey, Stuart & Co. Inc. and Lehman Brothers (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith, Inc.; Stone
& Webster Securities Corp.; The First Boston Corp. and
Smith, Barney & Co. (jointly). Bids—Expected to be

received

Kansas

•

on

Oct. 14.

.

Sept. t it was reported that this company plans early
registration of 125,000 shares of common stock. Proceeds
—For general corporate purposes.
Underwriter—Morti¬

St.

the

mission

(10/20)

October.

vote

(10/14)

reported that the

company is planning to
Pennsylvania P. U. Com¬
$50,000,000 of 30-year first mortgage bonds.
Proceeds—To help finance the company's
construction
program. Underwriter—To be determined by competi-\
tive bidding:
Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable Securities Corp.; Kidder, Peabody & Co.,

file

be named in

mer

Co.

announced that this company has applied

was

South Carolina

it Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock (par 10 cents). Price

.

the Nebraska State Railway Commission for author¬
ity to issue up to 200,000 shares of preferred stock (par
$100). Proceeds—For capital expenditures. Underwriter
—Blyth & Co., Inc., New York.

New

Underwriter—Blyth & Co., Inc., New York.

j.

Proceed's-T-To

to

to

privately.

Co.

reported that the company plans the is¬

a
part of the company's construction program.
Underwriter—Blyth & Co., Inc., New York.

of common

Telephone Co.
reported company received approval from

\
Natural Gas

was

finance

Underwriter—None.

the Territorial Public Utilities Commission to issue about

*

of about $20,000,000 of debentures.

suance

Nov. 24.

be offered first

new

York.

July 31 it

Telephone Co.

on

Business—Manufacturer of mufflers and

Underwriter—Mortimer B. Burnside & Co., Inc.,

Northern

from the Territorial Public Utilities Commission to issue

stock for each

stock.

common

Aug. 3 it was reported company has received approval

stockholders

in Decem¬

the early registration of

Inc.
reported that the company plans to regis¬

209,000 shares of common stock, to

& Co., Lee Higginson
(jointly); Blyth & Co.,

and

ber.

133,000 shares of common stock (no par). Price—$3
per share. Proceeds—For working capital and expansion
of plant facilities, and for hiring more engineers. Office
—Newton, Mass. Underwriter—G. Everett Parks & Co.,
Inc., 52 Broadway, New York. Offering — Expected in
late September. Registration—Expected next^week.

Aug. 25 it

Corp., Kidder, Peabody
White, Weld & Co.

Corp.
Inc.

ter

Aug. 3 it

State.

England Telephone & Telegraph Co.
Aug. 19 it was reported that the company will issue and
$10,000,000 of preferred stock. Proceeds—For cap¬
ital expenditures. Underwriter — To be determined
by

Electronics,

was

For

sell

Aug. 19 it was reported that the company plans to reg¬
ister about $15,000,000 of convertible debentures or pre¬
ferred stock, conversion of which
would add about

600,000 shares to the number of common shares cur¬
rently outstanding. Proceeds—To assist in the financing
of the recently acquired Booth-Kelly Lumber Co. Office
—Olympia, Wash. Underwriter—Financing in past has
been handled by Blyth & Co., Inc.

—

New

New

Georgia-Pacific Corp.

in

stock.

common

supplied by amendment. Proceeds

expansion and working capital. Office—130 Shepard St.,
Lansing, Mich. Underwriter—To be named later in New

gears.

Orleans, La.

Gulf States

issue of about $500,000 of

an

To be

—

Lansing, Mich.

announced company plans to register

was

days

rities

Flooring Corp.

July 30 it was reported that

suance

few

.

(10/27)

Power & Light Co.

plans to file
with the SEC $20,000,000 of first mortgage bonds. Pro¬
ceeds—To help finance the company's construction pro¬
gram. Underwriter—To be^ determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc. and Kidder,
Peabody & Go. (jointly); Blyth & Co., Inc. and Lehman
Brothers (jointly); White, Weld & Co., and The First
Boston

Aug. 26 it
Price

Aug. 17 it was reported that the company

and sale of

to be received

May

sale of about $2,-

000,000 of debentures.
Florida

National Mail Order Co.,

;

reported that the company in the next

was

it

Aug. 31

suance

it

months expects the issuance and

few

(jointly);

Chicago Burlington & Quincy R R. (9/9)
Bids will be received by the company up to noon (CDT)

15

June

a.m.

(EDT)

on

201 Devonshire St.,

it: World

Fidelity

Aug. 17 it
its

best

stock

was

efforts

with

the

Oct. 21 at the office of the company,

Boston, Mass.
Life

Insurance*Co.

reported that the company plans to
to

register

SEC.

5,000,000 shares

Price—$1

per

First National Bank Bldg., Colorado

share.

use

of common
Office—314

Springs, Colo.

-

Volume

190

Number 5878

.

.

The Commercial and Financial Chronicle

(963)

i

The

Our

turnabout-

along

Reporter's

volume

the

off

write

Report

new

them losses

portions.---

to

released

Events

quently

original

this

week

proved

once

coming

that

events

fre¬

(do) cast their shadows
Certainly the top quality

before.

investment market, including U. S.
Treasury obligations forecast quite

accurately the further tightening
of

basic

rates.

money

U.
S.
Governments
and
top
quality corporate bonds had been
slipping steadily for a fortnight
following an earlier show of firm¬

that

ness

hankers
had

had

and

raised

"topped-off"

time

hopes

borrowers

the

being.

4.468%

better

the

for

Treasury

paying

six-months

money

(the

ceiling fixed on long-term
is 4.25%) on its last turn
around, it became clear that Con¬

notwithstanding,

the

Gov¬

ernment must meet market condi¬

tions

if

it

is

to

raise the funds

it

needs and successfully refinance
maturing issues as they come due.
The markup in rates, touched
off by Tuesday's advance by com¬
.

mercial

banks

in

their

prime

lending charge to 5%, highest in
29

from

4V2%, naturally
attention to today's meet¬

years,

turned

ing

of

the

New

York

Federal

Reserve Bank.
Both

of

line

count

in

the

3V^%

force

the

markup
J/
,,

will

course,

act

abnormal

in central
„

.

break

to
In any
be quite

devoid

bank rates.

by-(k>mment
Hull

week

only

business

large

market,

news

money

races

Synuicate

was

of

project

of

almost

case

reaching

advance

the

before

came

of

in

mar¬

in

by

the

business
with the

the

agreements

Electric
The

the

Investment

of

market

came

to

coupon

of

Co.'s

$50

yesterday

carry-

rate of 5*6% and a
100, tor a yield of

51/h%. Moreover, this issue is

non-

retundaole for trie first iive years,
So it

was

Co.

capital

no

particular surprise

bankers

demand

for

able
the

to

report

debentures

opening of the books. This
had been indicated by preliminary
upon

inquiry
on

upon

release of the terms

new

or

pays

in

pay

in¬

research

any,

normal

taxed

cir¬

only

as

Clinton Frasier Opens
Clinton

Investment

assistance

the

investment

is

fur¬

adviser

by Empire Trust

in

Burlington

road

due to open

shows

and

Community

Co.

bids

ferred

Chicago.

for

shares

common

sale

to

are

York

City.

MENT

Chi¬

only.

(Special to The Financial
Chronicle)

GREEN BAY, Wis.—Edmund D.

Quinn

business from offices at 611 Hub¬

Street, New

City, members
Stock

are

will

&

Joseph

and

New

member

new

a

poration, J. J. Harris
Officers

the

of

Exchange,

continued by

be
cor¬

Co., Inc.

J.

is

under

debentures

tively set for blading

on

of Directors

has

the Common Stock, payable October 1, 1959, to
on

Corp.,

shareholders
tember

11,

of

record

1959, and

ular

quarterly

37'/2

gets

cents

Bay Diocese.

Harris,

Treasurer,

DIVIDEND

and

shares

York

Canada,

of

Preferred

managed

New

Ltd., is

United

States

1940

a

as

Fund

Canadian

ies

in

the

sec unties

sources

States,
c*

of

a^^j

whicl

companies

Recent Issues

The

the

been

capital

CENTS

stock

of

quarter

the

than

erive their

the
was

From
to

the

net

Cumulative

incorporation in 1954
present ty#£..the Fund has

A

1959.

September 30,

payable

CiT

Stock of C. I.

CORPORATION




KENNEDY,

dividend

(25tf)

Robert G. Burns, Treasurer

of

per

payable

on

September

30,

September 15, 1959.'

on

Michael

D.

David

SERVING

HOME AND

cents

INDUSTRY

New York

of

per

fifty'five

share

was

declared payable September
24, 1959, to stockholders of
record

at

the close of busi'

September 10, 1959.

22, N. Y.
61

Broadway

John G. Greenburgh
Treasurer.

New York 6, N. Y.

EASTERN
GAS
AND

LONG ISLAND LIGHTING COMPANY
FUEL

THE TT

ASSOCIATES

STOCK

—

A

STOCK

8, 1959.

CUMULATIVE
—

PREFERRED

E. H.

Septem¬

BIRD, President

St., Boston 16, Mass.

1959

following
payable

to

Our stock is listed on the
New York Stock Exchange.

•

holders

Stock of record
on

October

of
at

quarterly
1,

the

COMMON STOCK

Preferred

the close of

401

PER

SHARE

September 11, 1959.

Series

Per Share

B, 5%
Series D,
4.25%

$1.0625

Series E,

Payable September 30, 1959
Record September 11, 1959
Declared
September 2,1959

$1.0875

Series
A-

Quarterly Dividend
on

the

————

STOCK

The Board of Directors has de¬
clared

Series

August 21t 1959

Company

(Incorporated)
PREFERRED

A

of

250 Stuart

estPenn

Electric
regular

dividends

dividend

.jr

W

DIVIDEND

1959 to shareholders of record

September

Symbol is EFU.
,.sr.

dividend

(55c)

ness

Park Avenue

WITH ESSENTIAL BASIC
PRODUCTS

1959.

27,1959.!Treasurer

A

Secretary
300

Series

G^John Kuhn,

August

July J21, 1959

twenty-five cents
share on the Com¬

1959, to stockholders of record

ber 8, 1959.

not

record

of

Directors

Stock of the Corporation,

mon

business

SeptembewlO,

of

27, 1959.

CORPORATION

ber

regular quarterly
$1.12 y2 a share,
payable October 1, 1959 to
shareholders of record

The transfer books will

stockholders

Secretary

de
Pasco
Corporation
meeting held on Septem¬
1, 1959, declared a cash

4'/2%

close. Checks wilt be mailed.

August

1959,
close

TENNESSEE

a

TV-Financial

Corporation, payable Octo¬
ber 1, 1959, ta4l$ckholders
ness

1,
the

1959.

Pasco

de

of

Board

tJtH# Common

on

of record at the close of busi¬

FINANCIAL

at

15,

of

at

Septem¬

1959

16.

on

quarterly dividend of 40 cents
a
share, payable September 28,

share in cfsn has been

declared

October

record

4.35%
F, 4.35%
G, 4.40%

.

$1.25

$1.0875

west penn

$1.10

Monongahela Power Company
The Potomac Edison Company
West Penn Power Company f

VINCENT T. MILES

August 26, 1959

Treasurer

a

August 18, 1959, de¬
clared a quarterly dividend of
seventy-five cents per share on
the capital stock, which will be
payable September 11, 1959, to
on

Cerro

on

1959, to share¬

of record

COMMON

quarterly dividend of $0.65

Dividend
The Board of Directors at

meeting

TtNNiSM* CORPORATION

The

DIVIDENDS

per

Stock

QUARTERLY

DIVIDEND

119th Consecutive

Y.

Paul E. Shroads
Senior Vice President

OIVIOEND NOTICE

1 50TH

of

September

on

in-

ass|t value of the

its

Preferred

payable

company,

stockholders
business

of

$27,5TOH78.

N.

the

third

50%

securities

New York 4,

on

Cash Dividend No. 157

share

on

the

for

United

from sourcgj outside of botn
Canada and the United States. At
1, 1959, the fund had about

Fund

per

declared

holders

come

1959^

going has been a bit rough
on syndicates sponsoring some of
the
recent
corporate
offerings,

Street,

Board

DIVIDEND

QUARTERLY
FORTY

has

Act

outside

.

on

A

of companfrom
£

ess

with
*9

Broad

Cerro

income
:

outsidg.

SCHNEIDER

Vice President and

of;thg holder. The

deriving

at
on

CORPORATION

basic policy of tnS»"Fund is to invest

E.

JOHN A.

METALS, INC.

co«*pany.

option

Treasurer

f».7ri/ Uiridvnd

redeemable at net asset value

the

at

record

and

August 27, 1959.

MACHINE AND

cf

under

1959,

CITY INVESTING COMPANY

to

diversified, open-end
Its shares

a

investment
are

\

of

cor

Investment Co.

B. M. Betsch,

Secretary

*

& Treasurer

M.

for larger sales,

registef^d

aeration

tember 8, 1959.

•

AMERICAN

$^£>ital

York

Canada,

at

Sep¬

I

Series

DaylighT Time, Sept. 3.
Ofrering prices will change twice
daily tfcereaftet^&id will be ad-

on

per

business

R.

the

<$^Co.

downward!

of

1959,

record

Secretary and Treasurer
Broadway, New York 4, N. Y.

*
25

common

Eastern

justed

of

of

close of business

of TDirectors
of
this
com¬
August 26, 1959, declared the
regular
quarterly
dividend
of
$1,375
per
share
on
the
outstanding
5',2%

single transactions involving
2,000^ares, the price
share is $13.75 until 2 p.m.,

per

close

Common

shareholders

to

dividend

($.50)

(35£) per
Stock,

cents

the

on

September 4, 1959.

pany

than

less

the

The

Carl

a

Dividend

payable September 29,
the

September 28,

•

Capital

by

thirty-five

share

capital stock of

stockholders

to

1,000,000

Ltd.

of

COMPANY

Cents
its

on

payable

!

being "^initiated
today
3)
by
p.n
underwriting

(Sept.

Fifty

•

Cumulative

205

the par value of $50 per share,

•

is

stock

of

share

•

of

ANACONDA

has today declared

25

New

of

Fund

THE

•

dividend
$25

NO.

of

The Board of Directors has
declared a quarterly dividend

The Board of Directors of

*

...

of

New York, N. Y.

Notice

August 27, 1959

•

Stock, payable November 2,
1959, to shareholders of

Sept. 21.

DIVIDEND

•

reg-

the

on

September 2, 1959

offer4ftg

NOTICES

ELECTRIC

_

NOTICES

•igusi^kjmtofl

*

Sep-

a

record October 9, 1959.

Public

securities

Street, specializing in Catho¬
lic institutional bonds in the
Green

Ana^ondA

•

par

value

tenta¬

now

Board

this day declared a quarterly
dividend of 25 cents per share

with^Jthe offering of
England^ll. & Tel. $45
of

a

BOND AND SHARE

•

The

way

million

conducting

bard

James F. Rafferty, Secretary.

I

NOTICE

pre¬

telephone fjfinancing

new

for¬

Middle-

York

:

DIVIDEND

SepLj$6, the calendar
light uijatil the rash of

continues

was

&

The investment business of J. J.
Harris & Co., 11 Wall

I

CORPORATION

Service

of

Hooketfjphemical

for

Frazier

Coburn

Edmund D. Quinn
Opens

•

In

by

Mr.

with

non-residents

Now Corporation

~

fact, asidb prom a "rights"
offering of $25-Mllion of deben¬
tures

of¬

Street, New

brook, Incorporated.

The

offered

of Canada

AMERICAN j

stock.

slated

engaging
from

COMPANY

certificates

Public

is

business

merly

DIVIDEND

for $3,150,-

$£5=ynillion

for

Frasier

fices at 122 East 42nd

•••••••••••••••••••••a*

Quincy Rail¬

fiids

equipmentssdkist

000

W.

securities

a

Co., New York,
Loeb, Rhoades & Co., New
York, and Stein Roe & Farnham,
Carl M.

President
contract for in-

a

With

Management

and

to

York

redeeming

services

Capital

Canada, Ltd.

nished

no

value

shares, if
or

are

advisory

York
of

39

cor¬

34f« of of Canada. As of June
^ tota^ssets ^vested
30,

Tuesday.

Rough

it

gains.

CQ$tfi&on stock.

previous

day

^

have

and

Co.

Since it is the

under

ber

debentures

'z0-year

ins

ta?

resi¬

New

income from

no

selling

cumstances

a

| vestment

DIVIDEND NOTICES

little

of

way

cago,

of

Associates
million

not

sources,

which

in

is

States

realizes increases

shares

peyond the sale,
Thursday, at £bmpetitive bid¬
ding, of 1,057,73(5
Shares of Union

in

issuer.

early

States

tax

Fund

United

S. income taxes.

only

on

jn

of

substantial

in the

handling

signed

brisk

the

of the Fund and its

Week

promises

Loeb, Rhoades

,

something

got

calendar

of

the

because it derives
U.

income

gains

corporation

in

The Fund has

Another

syndicate

for. Bankers

size this week. And

to

Because

United

that

this occasion since the

on

issue

price

Acceptance Corp.,

syndicate, were ex¬
weather
the
storm

quickly

gap.

.

Break

a

capital

no

Canadian
dent

taxable

J. H. ASMANN

is, of

now

Underwriters

had

its

15% flat rate in Canada.

a

is

Canada.

redis¬

feeling seems to
general in money circles that the
gilt-edged
investment
markets
have
pretty
well-discounted
a

the

There

member'

for

event

new

Corp.'s

quarters.

nothing

subjecting

Vice President

hope

Reserve

close

a

in

to

Next

the provisions of Canadian law of

borrowings.

The

the

with

rate

bauk

Electric

offering,-u&long with that of

well, judging

New

the

prime rate and the
Treasury's bill rates now are far
)ut

were

an

company under Canadian tax law.
This
has
had
the
effect, under

vestor

still

pected

bonds

gress

the

as

investment

policy of the Fund not to
dividends, the United States

General Motors

ket

Fortu¬

taxed

Gas

Pacific

both

their

be

owned

weighty in volume.

remnants

recent

resident

-

porate financing

with

But

prices.

that only here and there

we

for

offering

from

most of them had enjoyed
lhan
fai# distribution
so

of

that

last

at

nately

from

much as

as

four-joints

always elected to
non

only to

<pf instances these

wheri

ofierings
three

unsold

on

syndicate have yielded

again

market,
prospects

-—

number

a

of

weeksy. ahead, caused a
of
the£i to dissolve and

number

In

the

with thefpiling up of sub¬

stantial
tor

in

electric system

The Commercial and

Washington and You

whether there will be a
out of the program,

it

INTERPRETATIONS

BEHIND-THE-SCENES

.

.

f§59

Thursday, September 3,

.

ment

President
Eisenhower
the
$1,200,000,000 civil
appropriation bill, it is
certain that Congress will pass
another- bill — before - adjourn¬
vetoed

works

The regular primary, secon¬
dary
and
urban
highways—
those roads where the states and

WASHINGTON, D. C. — The
unpredictable American Con¬
-

with adjournment appar¬

gress,

Mr.
aggressive
and
has pulled the Repub¬

Halleck,

dynamic,
licans together. The

the air. As a new week
no
one, and
that in¬
cludes the pair of Texans, Sen¬
ate Majority Leader Lyndon B.
Johnson
and
House
Speaker
Sam Ray burn, knew what was

in

began,

of the

going to happen to some

beclouded measures

The most

to

interstate

schedule,

system going on

road

Administration

Eisenhower

the

financing

highway
keep the

the

are

proposal to raise the ceiling on
Government bonds, and "labor
has

unusual

been

not

on

for

Capitol Hill for days now
members of Congress

to
these bills dead for this

some

declare

only

.session,

a

fate

-

for

pas¬

Their

later.

hours

few

sage

re¬

prospects

with

favorable

somewhat

final

them

have

to

quickly

vived

is anybody's guess at

moment.

the

session of

first

The

normal adjournment

the

is

There

date.

had some

before them.

issues

momentous

The session started

like

but

question

no

the law-makers have

pace,

86th

the

weeks be¬

Congress is running

yond

off at a slow

but

sessions,

most

the most part
hard workers.

the members for

have

been

Although the picture can and

will

probably
is

there

quickly,

change

might take
in

odds

appear

later.

The

this,

however.

against
of
the

Some

Soviet

of Congress before

Khrushchev

Premier Nikita

in

rives

ar¬

States

United

the

the

darken

to

want

leaders

a recess,
October or

back

come

halls

that

discussion

some

Congress
and

Democrats

on

the Spot

the

on

session.

been

have

Democrats

somewhat

at

spot

control

They

this
both

and

lopsided majorities.
up to them to try
good session. Next
is the big election year,
they do not want to have

the

session

Houses

by

been

has

It

have

and
year

a

nothing"

capital

Republican Congress

Congress.

nothing"

this

usual

than
At

a

"do-

result

As a

Speaker

harder

worked

have

Rayburn

as

in

then

the

and

Johnson

Senator

1948

speeches

described

he

in

year.

beginning of the ses¬
sion
in
January
it
appeared
that
the
Republicans
in
the
House were
going to start a
political feud over their leader¬
ship. There were some bitter
words
spoken,
and
perhaps
there

some

were

in

welled

many

an

that

tears
eye

on

the

Republican side.

The

Republican
House

W.

Joseph

majority

Minority

Martin

Leader

Massa¬

of

and

A.

gave

office

at

Halleck

of Indiana.

then turned

Mr.
the

Martin
Capitol,

around
a
a

Cadillac limousine and a chauf¬

to take some of the sting
of the action by the ma¬

feur,
out

jority

of

the

House

cans.




Republi¬

Audit of

on

Union

$800,000,000. Mr. Eisen-

Cycles—Edgar Lawrence Smith
William-Frederick Press,

—The

business buzz

391 East 149th

Street, New York

-55, N. Y. (cloth), $10.00
of

Costs of Nuclear Power—Office

Technical

Services, Department
Commerce, Washington 25,

of

D. C.

(paper), 500.

Economic Indicators, August, 1959

the Joint Eco¬
by the Coun¬

—Prepared for

nomic Committee

cil

Advisers—Su¬

Economic

of.

would run
rampant. It has not turned out

fice,

Documents,

of

Government Printing Of¬

S.

U.

C.

D.

25,

Washington
(paper), 20c.

by any means.
Next year the Congress will
of
necessity have to
adjourn
around the July Fourth holi¬
way

will

open

in

11.

How

O

has been faced
of
the
greatest

This Congress

with

some

legislation
the way for Hawaii be¬
coming the 50th State in the
Nation
was
passed. Now the
States

world's

the

v

York

search Council,

Ore—1958—Statistics on the

Iron

industry

American Iron Ore
Bulkley Building,
15, Ohio (paper).

—

Association,
Cleveland

Provisions

units and furnishing them
an
annual outlay of

involves

of dollars. It is
affects the in¬

billions

many

great that it

employment

terest rates and the

generally.
the

in

the

total

the

Federal

insure

extend
ment

to

crease

Adminis¬

$8 bil¬

by

home

1, 1960;
improve¬

modernization

and

gram

*

1,

October

pro¬

in¬

1960;

maximum

the

the

mortgages

October

FHA's

to

Increase

Housing

could

through

lion

of

amount

the

sent

U

Ihow

FHA

imum

aid

to

should

the

in

statehood
measures

important
increasing the < debt
the

excise

Federal

struction,
vice

draft

for

airport

the

ser¬

extending
for two

William

con¬

Bank

authorizing the Tennessee Val¬

from

of

the

in

homes

bracket

$18,000

to

$13,500

range

to

Authority

$750,000,000
Passage

io%.
Other
measure

an

renewal

issue

the

Defense

partment appropriation

of the State of Delaware.
,

Bernard Jabin Opens
FARGO, N. Dakota — Bernard
Jabin is engaging-in a securities
business
from
offices
at
104 y2

of bonds.

of

away

Federal

grants

De¬

Broadway.

bill, an

j

-

of

up

to

appears

;.'.y

Superintendent
S.

fice,
Washington
(paper) 75c.

Attention

Our New

Carl Marks & Co Inc.
-

TEL:

1

20 BROAD

the

next

few days.

The

41,000 mile-interstate stop¬

25,

D.

C.

Brokers and Dealers:

J

Pub. Serv.

York telephone number is

SECURITIES SPECIALISTS
STREET

NEW YORK 5, N. Y.

•

LERKER & CO.

TELETYPE NY 1-971

HANOVER 2-0050

Investment Securities

10 Post Office Square,

get

within

Documents,

CAnal 6-3840

that Congress will

tion

of

Government Printing Of¬

Southeastern

FOREIGN

around to taking action on
the highway financing legisla¬

'yly.y..:

Official Films

•

Highway Bill Likely

Morgan, Inc.,- 101 Park
New York-17, N. Y.,

$6.95.

Botany Industries

tions.

It

&

Avenue,
;<

public

5,000

Data

Production

Book—Ernest M. Pittaro—Mor¬

Indian Head Mills

housing units; increase the re¬
volving college loan plan for
student housing by $250,000,000,
and authorize the FHA to in¬
mortgages

Film

and

TV

of

map

TRADING MARKETS

subsidization

37,000

for

except

U.

to

up

passed

enactment;

upon

additional

to

Paton

authorization

include

$550,000,000

the

in

provisions

urban

of

ley

each,
Southwest
(region 5), which is 250.

Washington 25, D. C., 200

Aug. 25, following U. S. Participation in the U N—
a brief illness.
He was Chairman
Report by the President to the
and
President
of
the
Farmers
Congress for the Year 1958—

raising life insurance taxes-, and

family

a

Documents, U. S.
Government Printing Office,
of

tendent

at the age of 65,

years,

more

K.

maps—Superin¬

regional

Eight

are

gan

providing

taxes,

funds

time

WILLIAM K. PATON

ceiling, extending the corporate
and

a

pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

this

to. Hawaii

addition
are

at

conditions

[Th's column is intended to re¬
flect the "behind the scene" inter¬

Approved

Written into law thus far

session

started

Utility Gener¬

Electric

ating Stations and Transmission
Lines
in
the
United States-

they

good and while he is trying to
balance the budget.

postal rates.

Measures

be

think

not

does

economic

when

the Supreme Court
United States, and in¬
of

powers

of

hower

provide Federal
education,
curb
the

wage,

home

on

ing, Washington 6, D. C.
Principal

$20,000 to $22,500, and re¬
duce
the
downpayment
on

from

—Independent Petroleum Asso¬
ciation of America, Ring Build¬

IVIiss Ploop?—
be to turn the water on?"

the water cooler,

fixed

pro¬

newly-enacted

include:

House

tration

pertinent

been

has

that

White

"Notice

Remember how hard it used to

crease

of

Some

Your

in

State—1959 anniversary edition

legislation
passed within .the
past few days is the revised
housing bill. Housing legislation
vitally affects the economy of
this country. Building of hous¬
ing

Industry

Producing

Oil

piece of

important

most

Larchmont, N. Y.

(hard covers), $5.95.

Senate, still one
most exclusive

Housing Bill

The

Market—

Maureee Schiller—Amer ican Re¬

clubs, has 100 members.
New

Special Situa¬

Stock

the

in

Creative
Relations

West 41st / Street,
36, N. Y.—$1.50.
-

230

tions

to pave

United

t—Industrial

u

How to Profit From

instance,

For

t p

New

Your

Increase

to

u

News,

peacetime issues and problems..
Furthermore,
it
has
enacted,
into law some historic legisla¬
tion.

26

Co.,

Street, South Norwalk,
Conn., $7.00.

Monroe

and

July

Publications

Industrial

Vice-Presdent,
Los Angeles on

President

Gudmundsen—

America—John

Convention,

in

Insurance

Life

of

Story

Dramatic

The

Provider:

Great

The Democratic National
to nominate a

days.

so

Business

and

Stocks

Common

majority in Congress

of

Ac¬

countants, 270 Madison Avenue,
New York 16, N. Y. (paper).

perintendent

that

Self-

a

Industry

-

Public

Certified

of

tute

77
an

pressing some apprehension that
the
overwhelming
Democrat

little
black

ultimate

Y.

N.

Fund—American Insti¬

Welfare

vetoed it only

funds for
would cost

17,

York

Administered

everywhere were ex¬

observers

sure

Charles

that

starts

Study

Case

members

family housing units (Capehart
housing)
at military installa¬

The House

bore

it

because
new

60 East 42nd

Women,

New

(paper).

big labor
fought so

the

Representative,

dent Eisenhower

toward

adjournment, it is now evident
that no action will be taken at
this session to increase the min-

Street,

Presi¬

con¬

chusetts, and replaced him with
younger

districts.

Bank

of

person¬

beginning of 'the ses¬
of Congress and

the

At

sion

of

ousted

have

bosses

authorize

Harmony in GOP

drives

Congress

Brochure—National Association

hard.

mortgage

the

the

which

bill

labor

Congressional

11

Halleck in
respect. Unofficially, the South¬
ern
Democratic leaders worked
closely with Mr. Halleck in con-'
nection with the passage by the
House
of the Landrum-Griffin

bill

Presi¬

how

slam-bang

his

Democratic

As

most Congressmen

in Banking—

Women

for

Career

hold Mr.

servatives

visions

Truman 'made

S.

political

which

"do

a

as

Congress.

Harry

great
in

tabbed

remember

They
dent

real niche for

a

so

they will not have to invite him
to address a joint session.

The

Halleck has
himself
in the Republican party. He has
proved to be a strong leader.
carved

Act.

Congress pass
a
this is a bill

Because

ally want.
It is worth a lot
politically to them. This annual
appropriation bill represents a
lot
of
construction
in
most

provision under
amendment to the

Byrd

Highway

Leader

Minority

that

priority over
system
in
the

interstate

bill?

•

pay-as-you-go

that

publicly

saying

are

union

reforms.
It

crats

the

are

Southern

measures.

measure

minority. Even Demo¬

House

the

effective

new

because they have

the

will

Why

and the Federal Govern¬
ment 50% — are not involved

50%

Republicans
a small, but

BOOKSHELF

ment.

government bodies put up

local

publicans did not last long.

ently around the corner, has a
series of important bills hang¬
ing in

the Re¬

cleavage among

Businessman's

services

though

the

_

The

than for
Govern¬

combined, has taken place. Al¬

13-

the

plan as provided under
Highway Act of 1956.

NATION'S CAPITAL

FROM THE

or

under

continue

will

all
other
agencies
and

operating

stretch¬
whether

year

larger

appropriation

light free expressway highways
are at stake. It is a question of

/

Financial Chronicle

(964)

40

\

- :

;

\

Telephone

'

HUbbard

2-1990

Boston 9, Mass.
Teletype
BS 69

•