Full text of Commercial and Financial Chronicle : September 5, 1963, Vol. 198, No. 6296

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Volume

Number

198

EDITORIAL

To most

6296

New York 7, N. Y., Thursday, September 5, 1963

">

Cash Flow and Other Concepts

remarkable fea¬

through Congress of
the resolution which postpones (but hardly eliminates)„
a railroad strike is the concern of all legislators and of¬
ture of the formulation and passage

ficials with the

by

The

collective

would
not

was

efficient

as

and

as

as

refresher

in

ness

The term "collective
the
are

more

of

the

should find here

receives,

it

the

U. S. Government,
Public

the

materials

portunity

to

portray

the

in

our

money

hence
do

an

Municipal

many

a

banks.

to

one

de¬

be

some

primitive

Robert C. Tyson

barter

has

well

for

have

be¬

a

When

comes

a

firm

is

job," for that is

investors in corporate

an

a

profession.

pension system, the

much better be "on the

area

(Continued on page 20)

•

Dealers

623 So. Hope Street, Los Angeles 17,
California
Members

s

New

Exchange

Associate Member American Stock Exchange
Members

Pacific

Agency
Bonds and

Stock

York

Housing

Coast

Exchange

Notes

dale, Hollywood, Long Beach, Oceanside,

VU;U

DEPARTMENT

J

•

MIDWEST STOCK

im

Pasadena, Pomona, Redlands, Riverside,

1

MEMBERS

EXCHANGE]^

San

Diego,

Santa Ana,

Santa

Monica,

FIRST NATIONAL CITY BANK

Inquiries Invited

Bond Dept.

Teletype: 571*0830

New York

on

Correspondent

To

ESTABLISHED

Brokers

Canadian Securities
Block

Inquiries Invited

Commission Orders

BROAD

CANADIAN

Exchange

STREET

NEW YORK

BONDS & STOCKS

DEPARTMENT

IMIECT

4, N. Y.

WIRES TO

•

PERTH AMBOY

Dominion Securities

MONTREAL AND TORONTO

Goodbody &
MEMBERS NEW YORK STOCK

BRIDGEPORT

HOME
CONTRACTOR

Executed On All

Teletype 212-571-1213

25

Human Resources

CANADIAN

Canadian Exchanges

New York Stock Exchange

Stock

California's Diversified

Maintained

Dealers, Banks and

1832

Members

American

MANHATTAN

Pershing & Co.

BANK

Net Active Markets

T.L. Watson &Co.

THE

Southern

—

Chicago 3, III. FRankiin 2-1166

w

Municipal Bond Division

Whittier

California Securities

135 So. LaSalle Street

TWX: 212-571-1414




up

Municipal

Securities

CHEMICAL BANK NEW YORK TRUST COMPANY

770-2661

setting

State,

SEC and poten¬

Offices in Corona del Mar, Encino, Glen-

NewYork
•

pension trust funds, it is

or

him, if he is to do so advantageously, to

Corporate & Municipal

York 8, N. Y.

the selling of bonds or

to timing

foot in the economic forecasting

Lester, Ryons & Co.

STATE and

Chemical

770-2541

another foot out into

banking and capital markets areas.

Section, starting on page 24.

MULLANEY, WELLS & COMPANY
Distributors

P. O. Box 710, New

He also becomes

financing undertaken

new

financial officer had very

factories, materials, labor and services in

"Securities in Registration"

centipede.

a

investing corporate

of

One-half of each business
credit. Business firms as¬

largely history.

sort of

the investment

business

that

he

So

by his firm—so there goes

that

common

every

for lodging

in appropriate places—primarily
has to have another foot over in

central figure in any

a

of

economy—and

example,

officer, is responsible

and Public

Underwriters

phones:

procedures and

the

banking theory and practice—you see he is getting

complete picture of issues now registered with the

tial undertakings in our

really walk, rather than just

avoiding

financial

The

transaction is money or

semble

So the financial
in the accounting

the firm's money

and

functioning

transaction—now
come

can

accounting

in

thus

When it

is the

trends,

another

accountants.

implicit obligation to

nominator of

trends,

Perhaps he had better have two feet

that he

around

ments,

so.

money

Securities

BOND

market

and to bring

perceive

for

So he has to

market

state¬
misinterpretations of
accounting data often unhappily made by econ¬
omists, legislators, labor leaders and other non-

hop

rather special op¬

a

so

Housing,

State and

labor

the

job he has to have records, and these

profession.

homq to our own door¬

firms have

of

is available to pay for

compiled by the accountants.

there

abso¬

are

And

that the right amount

thing called depreciation.

a

are

At

economy.

our

time they

economy;

Note

afforded

in

over

in

one

To do his

such as profits,1

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and
are

timely

It seems pretty clear that
financial
officers of business

(Continued on page 20)

securities

see

right time

foot

one

another

taxes.

a

it to

them? The financial officer, of course.

have

step.

bargaining" has taken its place in

might be cited;

the

prices,: depreciation and so . on, are
most obscure, the least understood

of

same

it right

equal," the inalienable right of all men to

which

at

lutely vital to the functioning
■

,

and

and

matters pertaining to money and

the

features
"the

conceive to be of

"life, liberty and the pursuit of happiness"

is

money

and its manifold reciprocals.

money

designations

among

popular mind alongside of such phrases as "all men
created

inflation

intelligible guidance to enterprise.

job

^ taxes, wages,

preserve

all matters that the unions

on

I think that

good business man¬

primary concern to them.

price

earnings,

to be compared, measured and combined

whose

He does this by

But they

expressed in money equivalents if

be

officer has to have another foot

the so-called
right of monopolistic labor unions to dictate, not only to
the railroads but virtually all other branches of busi¬
agement could, provide,; but to

the

profits, cash flow, depreciation

as

financial officer, everyone

tion's

being said and was being said

inexpensive

money

are

to furnish

in

thaOhe most vital of all matters
the : country the inestimable cost of

save

have

Though the observations made are directed at the corpora-

suppose

to

of

undistributed

and

various

having the railroads of the country closed down for some
indeterminate period or to assure td 'the public that it
could henceforth have a railroad transportation system

to

clarifying the confusing array of ideas held about such
numerators

during the passage of the resolution through Congress
one

denominator" in our economy.

"common

bargaining is. not being eroded."

To hear much that is

Tyson admirably succeeds in removing the obscurity

surrounding the general understanding of money as

no means

members
Congress completely committecKto the preservation
private freedom, is the firmest assurance that free

of

provide something for market:

all

Corp., ISetv York, N. Y.

they
Mr.

nimity of the vote on this joint resolution, by
of

order to

Finance Committee,

Chairman,

United States Steel

alone when he hastened to
assure organized labor: that "the hard question
.
.
. has
been how this result (protection of the public interest)
could be accomplished without weakening, for the future,
the structure of collective bargaining. The virtual una¬
was

Tyson,*

Robert C.

By

preservation of our system of collective

bludgeoning usually miscalled collective bargaining.
President

Copy

a

Clearing Up the Confusion About

As We See It

thoughtful observers the most

Price 50 Cents

,

.

2-BR0ADWAY

>

NEW YORK" *'

Co.

EXCHANGE

1 NORTH LA SALLE ST.
CHICAGO

(orporatioti
40

Bank

Teletype 571-0880
Area Code 212

,

,

WHitehall 4-8161

of

America

N.T.&S.A.

Exchange Placet, New York 5, N. Y.

MUNICIPAL BOND
SAN

FRANCISCO

•

DEPARTMENT
LOS ANGELES

2

The Commercial and Financial

(918)

The

COMMON SENSE

Security I Like Best...
.

A continuous forum in which, each week, a different group of
in the investment and

(and Dollars, too)

experts

V--V* r

Forum

advisory field from all sections of the country

participate and give their reasons for favoring

.

.

.

Thursday, September 5, 1963

This Week's
•■■■;

■

MAKES CENTS

Chronicle!

Alabama &

*

■.-«

Participants and

Their

Selections

Louisiana Securities

particular security.

a

Over-lhe-Counter trading like any
of

form

buying

selling

or

quires, experience and knowledge
of where the best market may lie,
At Hanseatic
that

trading.

sense

common

for

we

OTC

rienced

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years

helped

has

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customers find
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right time.

many

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For
trading,

OTC

in

sense

common

'

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60 Broad

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Telephone: 363-2000
Teletype: 212-571
Boston

Philadelphia
World

>

1231, 32, 33, 34

—

Chicago

•

billion

rate

adding

per year.

Wire

additional $80 bil¬

an

ida .and

Force,

that

feel

the

of

one

the

in

Corp., doing

over

force* The

com¬

Tjie

Gulf

80%;

Life

Insur¬

All

of the

years

components

broken down in the

Franklin

111 Broadway

New York 6, N. Y.

Philadelphia 3, Pa.
LO 8-0900

CO 7-1200

1958

to

annuities

and

except

N.

Force has gone

individual

insur¬

term

written, has risen by 50 % in

This is

"pay

is

field.

fessional in securities who seeks

and-profitable

vestment

areas

dy¬

for in¬

heeds this remarkable

new

the

top

Insurance

very conserva¬

policy

showing

in bonds and less than

50%

life insurance slocks.
Arthur Milton,

an

investment

income,

and

less-understood

securi¬

ties to reveal the fortunes that have

been

made

vestment

through

in

judicious

AMERICA'S

in¬

LARGEST

Insurance

virtually

$13 to $25 million with

turn

of

earned

4.2%

Citadel Press, tlie

"one of the

most

documents

tute.

publishers, call it
revealing and as¬

(ever

written about

securities, and the first to

probe this

specialized and lucrative field."

in .15

ance

Life—Writes

employees, clients,

associates, etc.

and

states

Life

individual

written

on

-

1963.

A

Commercial

been

insur¬

Force

Western

or
M. 0. for postpaid
delivery. Sorry, no COD's. 1-4 copies
$2.95, 5-24 $2.50, 25-49 $2.25, 50 or

more

$2.00.

4% sales

N. Y. C,

tax.

residents

add

of

network
on

and

60%

are

in

mainly in stocks of Insurance

TIMELY

such

Life

Gulf

as

investment
but

Western

wail Insurance
company

in

Fire and

a

Alabama.

has certain

and

of

other

the

in

should

contribute

earnings

PL 7-3638




to

Funds,

American

Industry

The

flow

as

a

no

various

Insur¬

rank

the

of

26th,' /72nd,

in the

171st

U.

highly

the

vying

S.

Con¬

competitive

industry with
for

1400

this

ies, under the leadershop of Texas
Becker, have gotten to the top by
serving its customers and agents
with

to

up

date

equipment

and

expansion of coverage in lines and
extra

services.

Several
der

solicitation of

an

active

review

$11,500

of

double

enough

Quality,

Industrial

price

Reliability/

cash

to

value,

underlying

Speed...

asset

and the conservative

italization with

tractiveness

of

Grinnell

stock

a

for

Telephone: WOrth 4-3033
1889

in

the

manufacture

District

(ADT),

Telegraph

acquired

in

half

to

fill

it

en¬

joys the continuous growth of the
only nationwide organization

Price Range on Over

spe¬

lary

hazards.;

Grinnell

is

also

5,500 Stocks

a

leading producer of industrial pip¬
ing
systems,
valves,
fittings,

plumbing

and

other

and

heating

The

materials,

products

Unconsolidated

include 76%
Holmes

owned

Electric

which

contains the

ADT, 100% of

decade

is not

ago

tiie

against

York

central

than

burglar

Co.

which

supplies

fire

Invest¬

City,

alarm

and

in

be construed
any

also

Hajoca

tributor

as

has

New

satisfied

an

offer

dustrial

Earnings

equity

and

security referred

to

of

1962,

unconsolidated

amounted

$9.52

to

were

the

most

of

dividend

dis¬

comprehensive

redemption

ments,

announce¬

calls,

and

sinking fund notices.

earnings

and

FINANCIAL

CHRONICLE

25

of

shares

to

a

Park

Place, New York 7, N, Y.

un¬

Cash

caused

Canadian

flow,
and

per

Grinnell's

For

ADT's
in the

the

by

National

in

dol¬

States

Quotation

Grin¬
in

interest

amortization

subsidiaries,

of

Bureau

was

share.

unconsolidated

have

$9.94

dollar

including

proportionate

unconsolidated

111,250

were

non-recurring

relation to the United

sidiaries

COMMERCIAL

actually 1,-

amounted

of the

$20

The

1,203.323

outstanding

Such earnings

share before

48%

features

subsidiaries, ,and

charge of $509,000

one-

Other

proportionate equity ip:

stock

shares).

about

Over-the-

including

on

shares

31, 1962

decline

Market.

the

record

$11,467,000, equal to,

(The

Dec.

per

in

subsidiaries,

share

per

shares.
on

and

include

Boston.

undistributed

of

herein.)

the

interest

wholesale

for

in

aware

or

on

supplies.

depreciation

sell,

Counter

conditioning, refrigeration and in¬

growth.

to

more

plumbing, heating, air

to

customers

on

York

44%

a

Corp.,

of

policies

Over two and

range

auto¬

sprinkler

in

Philadelphia

nell's

will attest to this fact.

buy,

supervision

Grinnell

lar.

more

price

5,500 stocks traded

exchanges

City, Philadelphia and Pitts¬

of

one

Chronicle

and bank vault protection in New

consolidated

which

Financial

Co.

out

the

and

mercial

subsidiaries

Protective

furnishes

Monday Issue of the Com¬

associated

building and plant construc¬

tion.

such

progressive

million

1963

of

owned'.by two

S. family today

protection

Savings.

—

Company

1953,

124,212

their basic needs in both Insurance
and

Year

through its control of Ameri¬

but

Insurance,

Americans

Our 74th

automatic fire protection systems,

were

Greatamerica is pursuing
make

—

113

Grinnell

changing world.

most

St., New York 6, N.Y.

130 Cedar

Grinnell has been the

ago,

years

CO., INC.

PRINTING

preferred stock add to the at¬

or

iiiiiii

APPEAL

cap¬

long term debt

no

are un¬

wide/ range.. of risks in this fast-

two

to

of

from

Grinnell's

The average U.

lias

Casualty the

offer

Jones

314,573,

acquistions

new

complex.

loss

to

OTC

(abput 4V2), the substantial

matic

are

circumstances

ratio

discount

of

(This is under

Dow

low

SPECIALISTS IN

whose

the

Average is at 19 times learnings.

Alarm

and

financiers, Troy Post and Charles

prev¬

in

in

area.

burgeoning
business, Greatamerica's compan¬

American

company

in

holdings

firms

interests, through

management

Mutual

Loan

million

and

nature

com¬

or

the

system

where

return is

higher net gain

while

with

publications

550 Fifth Ave., N.Y.C. 56

Corporation,

available

Market at about .9 times earnings

company

effectively with

Conclusion

ing 17% of Gulf has 80% of Stone-

a

increased in

were

Greatamerica's

-

Dept. C

growing

state-wide

68

and

Position

stocks,

branch offices

good growth prospects,

burgh, and 87% of Automatic Fire

even

our

protection against fire and burg¬

Greatamerica in 1963.

ac¬

to

cializing in central station electric

institutions

$3.7

over

military posts

formulated

Investments

also

Deposits have

serves

more

Savings

First

to $1 billion

years

wires

com¬

Lend¬

with

compete

lending

is realized. American besides hold¬

Send Check

51st

Deposits.

Jan., 1962 to enable the

has

212 571-1425

_

Orleans, La.-Birmingham, Ala.
Mobile, Ala.

V

large,

a

divided up into

are

branches;" Rates

half

over

though voluntary terminations

alent

Guarantee!

in

ranks

Loans, 45%; Install¬

California

great, American is well below the

lower

Day Money-Back

—

ment, 15%, and Real Estate, 40%.

while

10

Trust

parallel gain.

a

ing Seryices

Personnel.

in

key

dealers

credited
has

Bank &

to $650 million while

First

is

leader

registered

Insurance As

Military

Insurance

-

panies

•/',

conventional

Total Assets have gone from $450

industry average in this category.

prospects,

in

Nation

find

to

to

a re¬

Govern¬

on.

Well

ment Reservations.

in

has

Force

stock

Total

the

those in¬

on

Exchange

St., New York 6, N. Y.

favorable long term

a

Grinnell

can

the

Exchange

Hanseatic

$400 long term capital gain.
cent of the in¬
Since
its
establishment

per

Western

sidering
American

Order Your Copies Today
and for

with

record arid

and

131st

"quintupled in 5

First Book of its Kind!

unusual

pany

and

to

York

exceptionally well managed

in

doubled

from

of

in

million

are

company

has

success,

Total

GROWTH INDUSTRY.

New

Corporation

is

banking business

vital

a

of

barometer

au¬

thority, lifts the veil from these littleknown

Grinnell

This company engages in a general

vestments.

acknowledged

policyholders bank

Sixty

First

ance

study of the history and potential of

are

cent in stocks, Franklin's

per

net
pro¬

the

a

investment

one

of

one

in

firms

Because of

tive
over

Every slock broker, amilyst and

70% gain since 1957.

a

considered

growth

by ARTHUR MILTON

per¬

our economy.

Total admitted assets of Frank¬
lin have had

It

the modern gold rush

namic

go" philosophy

you

as

mainly due to the

vading all aspects of

STOCKS

payment

deductions

$287

life and endowment has remained
static.

INSURANCE

col¬

are

monthly

a

Insurance

million.

from $3.1 billion in

the five year period while whole

LIFE

premiums

whereby

from

gone

in

$5 billion this year.

over

new

ance

Printing!

on

account.

in all

Insurance

Y.

important discernible trend is

that

Now in 3rd

Most

made from the

Life—Writes ordinary

policies

One

New policies of

mortgages.

states

The Alison Building
Rittenhouse Square

Texas

the overall Insurance in

as

following vestments

way:

life

last

method

in

companies in the

various

The

1963.

Trust

headed for banner

group are

BOENNING & CO.

as

lected

&

in

basis

individual term have grown twice

of the stock of

Bank

writes

and endowment

and New Mexico.

diversified

Greatamerica

Western

in

Established 1914

has

gain from $6 to $10 mil¬

..individual

an

Force.

by acquiring 96%

are

i

investment. portfolio
a

Amicable Life—Amicable

insurance

Stock
Stock

Corp., New York City

17%, and Amicable Life 38%

ance,

1963.

Melikian, Inc.

Vice-President,

like

for: Franklin Life

York.

HAnover 2-0700

Direct

.

First

Richardson Co.

19 Rector

HERBERT O. WOLFE

a

factor of the

a

New

Members^American

years

-

owned.

Keyes Fibre Co.

Members

City.

^

tors.

Alabama,

Rudd

as

whole life,,term,

& Co., Inc.

in 5

50%

policies showing

increase

shown

on

York

New

It

Service

New

in

Insurance

.

total.

Co., 24% owned, American Life of

!

has risen

120%

Business

Continuing Interest in

Steiner, Rouse & Co.

Vice-President, New York Han¬

pany's stock at about 18 (over-the- lion in the period" 1957-62 with a
counter), 29% under the market 5% "mean return on investment
value of its holdings, is attractive
with 147,% of funds going into resi¬
for long-term capital gains inves¬
dential property mortgages.

pany

L. E. Carpenter

Alabama.

with group life

cent of the industry total

per

Greatamerica is the holding com¬

A

Grinnell Corp.—Herbert O. Wolfe,

approaching the $2 billion

best- mark,

continued

of the insurance industry

San Francisco

•

Wide

Los Angeles

•

life^ term, and

endowment policies with some ac¬

$700

with $8 billion in
t

Bought—Sold'—-Quoted

City.

Life Insurance firm

reserve

which writes whole

is Greatamerica

AlA

Corp., New York

(Page 2)

(Page 2)

one

Associate Member*
~
American Stock Exchange

\

a

seatic .Corp.,

growth

CORPORATION

is

company

Richard E.

—

Richter, President, Shelton Se¬
curities

Life—The

staggering total of. cident and ^health business.
It
with 1963's current
operates mainly in Georgia, -Flor¬

participations

Hanseatic

Insurance

Corp.

has reached the

We

NEW YORK

.

legal

Life Insurance in Force in the U. S.

lion

HANSEATIC"

; "Call

City

Greatamerica Corp.

Life

and

Stock Fund.

Gulf

say

expe¬

our

Fund

ment

RICHARD E. R1C.HTER

President, Shelton Securities Corp.,

.

proud to

are

40

over

Greatamerica

re¬

shown

Incorporated

sub¬

excellent

Over-the-Counter Quotations
Services for 49 Years

eample, the number

subscribers
last 9

increased

years

Continued

to

46 Front Street, New York 4, N. Y.

83,541

CHICAGO
on

page

4

Established 1913

,

SAN FRANCISCO

Volume

6296

Number

198

What Kind of

.

The. Commercial and Financial Chronicle

.

(919)

1

•

.

'

•

.

3

CONTENTS

Business

a

,.v

r-

■.

...

.

Thursday, Septerhber 5,

1963

Cycle in the Years Ahead?

B.S.

JCHTfilSTflll
COMPANY

ND

By R. A. Gordon,* Chairman. Department of Economics,

Articles and News

University of California, Berkeley. C.alif.

Charter Memberships
PAGE

Except for wage and price resistance to economic downturns, our

cycles

postwar business
similar to
and

those

Dr. Gordon

What

Kind of

Robert C. Tyson

the

1

Exchange

Business Cycle in the Years

a

on

Obsolete Securities

Other Concepts

And

1939 except for more of an upward tilt,

prior to

unlikely to plunge into a really severe contraction.

Available

Clearing Up the Confusion About Cash F.ow

minor and quita

said to have been

are

details each of those observations and associates our unsatisfactory
Ahead?

growth rate and unemployment problem to the tact that wj have
in

been

Confident

Fall

before the new

ing boom not me .t an untimely end
the

to

problems

pursue deflation
growth prospects.

of

our

Ira

Tax"——

Foreign

to the

point where we

the

detriment

Finance

A.

Gordon

3

Cobleigh

U.

5

whole. We

a

So

far

I

as

Ended

alive

States—is

it

is

think of

not, many Americans—from

in

United

the

.Andrew N.

Overby

needless

by

FRB

9

cycles

out

1948

such

49,

-

1953

-

-

58,

1960

or

As

has

Economic

of

continue

to

influence

exert

INCORPORATED
Babson 31

Regular Features
As We

mild

Bank

See It

(Editorial)

and Insurance

1
13

Stocks

Coming Events in the Investment Field

this

of

sort

cycle that has

con¬

Dealer-Broker

32

Recommendations

8

Eve of I. M. F. Meeting"

9

Investment

Einzig: "Gold Boom

on

upon

From Washington

Indications of

Ahead of the News

Current

Business

23

Activity

duration,
and

themselves

four

mild
be

to

in

and

years

in

amplitude,

and You

.

(The)

11

Mutual

Funds

NSTA

12

Marrud, Inc.

12

Kennametal Inc.

r_-_

Notes

Bankers_^_

News About Banks and

18

Observations

business

adjustments.

Changed Cyclical Character
much with

Their

most

still

marked

to

us

have

of

National Old Line BB

I

Our Reporter on Governments

21

Public

Utility Securities

18

Singer, Bean

Securities Now in Registration,

24

sMackie.Inc.

Prospecitve

28

look

a

the

at

Let
ord

that

course

of American

velopment

had

least

of contractions

or

four

Recessions

Direct

the

recessions,

have

cyclical

to

both

been

although

Tax-Exempt Bond Market

1 G.

H.

Moore, "The

Contraction:

New

Economic

ican

1959,

pp.

292,

1957-58 Business

Model

Review,

or

Old?"

there

Vol.

49,

of

prewar

brief

are

May,

and

Duration

St. Louis

Washington

32

mild,

The

COMMERCIAL and

Published

Twice

example,

the

on

FINANCIAL
Reg.

Weekly

and

mild

page

26

Park

DANA

B.

CHRONICLE
S.

Palent

Piace, New York

CLAUDE

D.

7. N.

Y.

REclor 2-9570

Through

(Months)

Nov., 1948

Oct., 1949

11

1.45

WILLIAM

July, 1953

Aug., 1954

13

2.19

9.05

July, 1957

Apr., 1958

9

3.84

14.09

May, 1960

Feb., 1961

9

1.90

5.91

Ind'l Prod'n

8.48

to

SEIBERT,1 Treasurer

DANA

Thursday, September 5,

J.

MORRISSEY,

Editor

1963

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

Southern

9576

SEIBERT, President

22

GEORGE

Peak

pffice

COMPANY, PUBLISHER

,—Percentage Decline—,
Real GNP

U.

prewar

brevity

Continued

307.

Los Angeles

San Francisco

Philadelphia

expe¬

some

equal

mildness—for

Amer¬

6

Washington and You

WILLIAM

examples

14

to

as

rience, these postwar contractions

setbacks affecting the economy as

(The)

Wires

Cleveland

accompanying table.

Compared

three

Exchange Place, N. Y.

17

State of Trade and Industry

instability in

business

40

2

look at the postwar rec¬

cyclical

shown in the

economic de¬

at

Security I Like Best (The)

are

United States. Since 1945, we have

the last century

reveals

more

types

over

us

of

Mild

"

Teletype 212 571-0610

Security Salesman's Corner

recessions"

common.

Postwar

various

instability

HA 2-9000

as

Chicago

plagued our economy in the
Careful
scrutiny
of
the

past.

to

Offerings

Security

It will

generation.

cyclical

they

reason,

referred

"inventory

to appraise these changes

take

we

kinds

frequently

fairly

ity has changed its character dur¬
help

this

For

de-

and

"inventory cycles," and references

problem of economic instabil¬

ing the past

accumulation

cumulation.
are

it is true that

us,

Corp.

expectations and with minor mal¬

inventory
While the business cycle is

Greatamerica

j

4

with

associated

short-term

in

.

century

expansion

to

two

tend

a

together, they tend to

are

changes

pro¬

econ¬

our

repeating

.

cycles

feature consists of wide swings in

very

J.F.Reilly&Co.,Inc.

16

"1

omy

or

is

It

Taking

from

run

phe¬

a

been

more.

or

dem¬

business cycle

that

nomena

if

in

so-called minor

on

the -relatively

and

contraction

Outpost war

"sufficient to

onstrate

the

13

Opportunities Ahead

concentrate

to

in the United States for

Re¬

"The business

it,

cycle is not dead."

found

Economic

Roger W.

Market

Moore of the Na¬

put

has been

say

swings

long

want

cycles.

have

experience with cyclical instabil¬
ity

and

them

What I have called minor

badly deceived.

very

Bureau

search

Job

profits

contrac¬

these

during

Geoffrey

tional

to

prevailed before World War II.

-

businessmen who saw their

plummet

10

of this paper,

remarkably similar to that which

R. A. Gordon

the

tions—were

PANACOLOR

Heller

tinued to plague us, and in a form

61,

-

and

■—

W.

Why So Many Fledgling Insurance Companies?

cycles

accompany

about

I

minor business

54,

1957

Walter

business contractions that go with

in

work

of

or

something

first, however,

thousands
thrown

latter part

growth.

f

o

of
can

we

long swings

have

also

and

rying. And the
hundreds

(which

Policies

the downswing phases

as

depressions that

wor¬

YORK

4-6551

7

as

about major cycles and the severe

much

doing

NEW

WHitehall

major

(2)

periods

(3)

and

growth

the

shall

I

been

STREET,

growth).
In

States down—
have

recessions,

of successive

President

the
of

If

kicking.

and

retarded

refer to these

can

contractions,

the United

in

minor

(1)

business

the

know,

least

at

—

WALL

Banking and Financing Distinction

Updating Our Domestic and World Economic

cycle

99

not

hopes that we

He also

1960's.

late

fearfully over-occupied with inflation and balance of pay¬

become

ments

in

occur

in

The Case Against Proposed "Interest Equalization

build¬
crop of family

depression, Dr. Gordon hopes, nevertheless, that the present
formations

Fashions

capable of avoiding a serious

have wise management

we

R.

:

Telephone:

phase of a long cycle these past six y^ars.

downward

a

135 South

La Salle St.,

Chicago 3, 111. (Phone STate 2-0613).

Nitrogen
Co.

Copyright 1963 by William B. Dana Company
All

rights reserved. Reproduction in whole or in part
written permission
is strictly prohibited.
class postage paid at New York, N. Y.

without

Second

For many years we

have

specialized in

PREFERRED STOCKS

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4

The Commercial and Financial Chronicle

(920)

cated

OBSERVATIONS...

FIRMS

PUBLIC"?

"GO

"Going Public" of
member
firms

projected

Exchange

Stock

impli¬

important

several

harbors

cations. :V'-J

assuredly

would

It

-from providing

irig the step, apart
the

"selling-out"

.for

means

stockholders

in

subscribing

Their

boomtime.

highly

be

to those firms tak-

advantageous

solidify,

would

ex¬

the

of

areas

"The

surely be fully aired.

the

and

Delusions

Popular

As

he

points

128%
*

kerage

needed

of

retention

other reasons

factor,

corresponding dis¬

prestige

the

hav¬

size required

or

any

eventi, it would have at

one

destructive effect on the

interest.
Firms, particu¬
larly those in the borderline cate¬

public

of size or prestige for a de¬
sired offering, might well increase
gory.

existing

the

their

on

pressures

employes to promote trading

through

churning

portfolio

vol¬

accentuate

thus

would

It

ume.

the

conflict-of-interest element under

of

absence

a

transaction.

ley

formed

firm

existing

partners, could be extended

av body

share¬

corporate

of

holders.
The

proposal

offering

best-in¬

world's

authority

economic

on

require

amendment,

.In 1933,

of the

with

forth

came,

almost

is

crowd

his

Delusions

nancial

A

Smitley, then proprietor

famed:Busine^Hook Shop,

great

Popular Fi¬
("Why

*

have

to

ask

but to

always

financier's

Wrong.

that

maintains

author

that

in

acclaim

irrespective

will

men

also

lator

now

affairs;

of

Opinion,

Contrary

also of the Institute, in

This debunking work, based on
the

that

belief

the

"great

eco¬

and

their

violation

is

their

the

able

a

The

ful

;

-

right

.

with

the

becomes
the

luminous

negle

c

disease

as

as

he

of

first

the

incur¬

a

taxes

for

ticker

to

than

circuits

25%

Of

come

fs capable

From

be

six

ten

to

transactions

simultaneously.

seen

without

is

ticker
in use,

The unit

ticker

a

tape

activiated
signals

can

or,

the

by

the ticker

as

and requires

no

print¬

ing

\

mechanism,

illumination

tapes,

ink

earnings

The

$2.00

cash

current

of

underlying

earnings

underlying

cash

been the
clare

year-end

a

ptiliij.*

of its

sonville.
with

Courts

York, will

clothing.

...

the American Stock Exchange.

of the nation's

from New England through

NWC also operates three
of $9.9
a

million,

share,

a

14

up

per

the company are

16

the Midwest

.

.

.

perhaps

manufacturing plants.

per

plant is

among

them.

In the first half of 1963 volume

cent for the period, produced net income of 38 cents

cent increase. (A

available

your

on

copy

in

Jack¬

&"

Company,

the

in

New

trading

Atlanta.
will

the

manage

of the annual report and other data

Charles

replacing

Thompson,




SHERMAN

AVENUE,

ELIZABETH,

N.

and

co¬

worth

as

a

O.

Jenkins,

the

home

for

the

office

past

in

three

worth about

$46,000,000

only

home-owned

member

has branch offices in

firm

Exchange,

Birmingham,

Gainesville, Tampa and Atlanta.

the

than

Grinnell

figure

carries

which

at

Accord¬

same.

ingly, Grinnell's net worth is far
in

on

had

a

$113,000,000

balance sheet.

its

inventories
basis

on

a

;

Also,

last-in

carried

were

at

$29,00p,000 at year-end and

much greater current value.

With 80%

being

the

off

excess

of combined earnings

reinvested

in

expansion and acquisitions and

no

long

33-year-old firm, Florida's

of

unconsoli¬

is

Registered Repre¬

at

sentative

who

multiple
3

are

by

A.

the

This

assisted

as

same

dated subsidiaries

about

be

i6

regard the

we

the

$69,000,000.

Mr.

will

If

then

earnings,

offices.

Thompson

defendants.

Holmes and Automatic Fire Alarm

first-out

The

J.

times earnings.

certain

Department

still

is

ADT's market price is about

ordinate sales for the four branch

of the New York Stock

1100

case,

preliminary stages, is being

Institutional

Jacksonville

request.)

NATIONAL WORK-CLOTHES RENTAL
OFFICES:

protective in¬

which

The

shown

years.

EXECUTIVE

tral station electric

Vice-President, who will head the

has served

on

M.

unlawful

an

dustry.

more

Trading Department for the firm,

than 54,000 customers in 29 states

more

office

maintain

Smith

Mr.

major suppliers and launderers of industrial work

Its 24 laundries service

main

Depart¬

Harry Burgess, formerly

activities

one

asserting

contested by all of the

ment

NWC is

Fire Alarm

conspiracy to monopolize the cen¬

Smith, Jr., for¬

Trading

Com¬

Electric Protective

and Automatic

has recently announced the trans¬

the

against

case

in its

to

.

subsidiaries, ADT*

poration, 222 West Adams Street,

Atlanta,

has

dividend,

stock

civil antitrust

a

Company,

merly with their branch office in

It

•

April, 1961, the Government

JACKSONVILLE, Fla.

fer of Herschel F.

10%

and

flow.

having been paid in 1962.

Holmes

Cor¬

of

company's policy to de¬

KS

I

; I

dividend

of

pany

Rental

non-recur¬

share is only about 20%

per

Staff Changes
Murphey

were

with $5,154,000 last

Pierce, Wulbern

Wulbern,

taxes

despite the large

Grinnell and its

The

in¬

on

subsidi¬

of

qfter

ring charges this year.-

3%

—

year

a

Including equity in un¬

or

sources.

of

income

by $922,000 to $4,-

up

earnings

year,

In

Pierce,

net

provision for taxes

compared

as
,

characters-per-minute !ticker.

'. Accord¬

$5,185,000 in the first half of 1963,

and is

fully compatible with the present

developing

proud to be listed, effective Sept. 3,1963,

been

not

non-recur-

$43,000 from

up

was

aries,

price

of

filed

on

it

and

shows

income

ago but

in

%

is

had

the consolidated" statement

,

distributed

information at high speeds

Wishful thinking constitutes an¬

Ijpiif

Profit

•

about

up

started1' shipments.

yet

ingly

J

Lectrascan

now

■

were up

ago..

year

was

conservative

Exchange's continuous quota¬ 402,000.

500

"Mllll |i ! iili li HI iliiiiiiiili!! liiiiiiliijilliliiiiiiiiiiii

Grin¬

1963,

from

attach $3,214,000,

to

tions.

success¬

A, CORPORATION

to

were

;

of

$107,000,000

more

as

offices of approved subscribers to

same

.

L

♦

half

12.7 %

Extensive

Exchange

Lectrascan

projector,

■

the

16.3%

up

-profits

and

before

non-

charac¬

permission from the New

Stbck

York

works

5

were,

62.6% ' in

period, Grin¬

15%
designed to make ticker .but probably would have been up

was

received

have

continues are

foible

its

Ultronic Systems last month re-

experts in-crowd psychology.

specific

and

same

only 10.6%.

In

com¬

proved that stationary; characters' ririg charges'for starting expenses
are
easier, to recognize and re¬ Of certain hew* plants that had not

is cancer."

segment

income, the

sales

sales "

c own

tain than moving characters.

It is

in

nell's

to

testing by the U. S. Air Force

t to investigate

speculator.

with
orange

reports easier to read.

Street

and Freud

From '1956 fto

*

Standard,- Crane,

nell's sales of

Lectrascan,

subsid¬

favorably

figures showing declines'of

$219,891,000

fashion.

ters,

years..

profits. In the

characters. In

left

operations

.very

American

in sales and net

stationary

conventional

industrial

and Walworth all showed declines

projector type

The

wonderful thrill because

minor

moving1

than

term

with the results .of JJs, competitors

.1962,

Ultronic

of

means

moving

.

Wall

Over

speculators,

other

by

in; the

read

that

assumes

.1, II

;

•

the »in* recent

ticker, Lectrascan's information is

thoroughly the mental unbalance

always expiated" adds that "peo¬

a

a

1

:

;

long

of unconsolidated

10.2%

horn e

or

immediately

"Doctors Jung

missed

of

and( psychological laws are

he

Freud

of

,■

out

business', club

of speculator.

role

is

Wells, Vt.

points

insane the minute he

republshed by James Fraser,

nomic

own

:. A

all

and

compared

bined

matter how rational he may be

in his
This .fascinating classic, or near

author

the

the

'

devel¬

bols, number of shares traded and

of the stock specu¬

case

$15,896,000,

sym¬

failure

J

warranted?)

newly

earnings, i depreciation

debt has been eliminated.

income

,

in

major

10.3%,-from

to

amortizatioh increased ;168%

Grinnell's

Street,

Systems Corp., flashes stock

success

converse

single

a

Iii the"

for

believe

of

event

this

manufacturei; by

and!

contrast

not. the

J (Is

Broad

•

*

-

same

of net plant and equipment

Bache is the first, iaries

City.

install

to

is
prices
the public's
rather
of limitless

single

a

sufficient for winning

the

depreciation

-

excluding all dividends from and

new

.The ten foot long unit, designed

a

the

forecasting of the economic serv¬

ices,

$61,-

20.8%, and from 1-1.8% of gross
1810%. The cash flow,

to
;

in

now

Co.'s

&

60

stock

oped: electronic: unit- called

respond."

The

observations

money").

firm

at

room

New York

They

delusion occurs with regard to

no

what

on

board

Bache

in

operation

the public

and

ticker dis¬

shows

prices instantaneously, is

student's

doubted.

be

which

system,

Lectrascan.

will

the

constitutional ple

a

with

will

In

annual

plant

gross

12.4%

a

stock

revolutionary

play

question: "There never will be a
time when the credit of our .great
railroads

to

998,000 from $3,445,000, increasing

and

typically

doubting

a

$4,301,000.
the

Display System '5 -including
A

famed

a

to

interval

end

mis-

,

are better entertained by what
two-thirds they cannot understand than what
majority of the Exchange mem¬ they could easily understand if
bers' approval.
Hence these and they made the effort." It is dedi¬

would

answered

failures.

inflexible

public

famous

literature.

disciplining of,

and

over,

world

the

the

became

Institute

officials'

Exchange

control

of

proprietor

As

of the Century

turn

Yale economics professor

Exchange

book-seller.

gone

in

with an introduction by
the Humphrey B. Nei 11, founder of the

it is difficult, to see how

Also,
the

in

uncompensated

is

advice

Stock

a

House

broker's classic,

the

whereunder

system,

Smitley,

member

commission-compensation

our

to

L.

Fire

Old

the

at

eons

Dixie Business Book Shop, Smit¬

public offering.

least

of

econo¬

Cedar Street that included Robert

advantage to those firms not

In

group

and

mists who met for weekly lunch¬

would entail a

for

small

a

service

nineteen-

brokerage customers

into

ing

was

the

in

researchers

market

lip

than

more

credo

this

pf a
stockhold¬

consolidation;

the

namely,

"brokerage company's"
ers

Paying
to

twenties

u

mentioned

second

1932 edition.

the

withdrawal of

capital against the

partners' funds through death or

The

its

110%

continuously from 7;6% of yiear^

New Ticker

their bro¬ lished in 1847, and* carrying a forecasting, Mr. Smitley cites the
Also, it would preface by Bernard M. Baruch in railroad industry.
Shortly after

clientele.
the

$106,589,000, gross

charge increased by 219% to $10,-

out, in

pand and permanentize
insure

in¬

plant

gross

261,000, and net income increased

delusions."

are

2

page

increased

revenues

psychoanalyze him¬

delusions

the

these pages

from
while

creased 135% to

being unable like

Therefore, the greatest delu¬

1962,

revenues, to

of major

instance

an

to

a

"is

sion of all may be his. belief that

Epochal Mis-Forecast

Crowds first pub¬

the Madness of

one

others

self.

(through
credit expansion), to government
ON DELUSIONS
power,
mistaking e f f e c t s for
The
trail-blazer
showing
the causes, future forecasting, the in¬
impact of emotional factors on vestment
trust, I the
authorities
investor behavior has, of course, statistical
inanities, the s tock;
been
Charles
Mackay's
Extra¬ speculator, and forecasting.
ordinary

Smitley in

says

human

depression

a

Continued
in

The Initial Delusion?

all

gamut from reactions toward re¬
sisting

author,"

,

I Like-Best

is

"psychologizing"

but

handling of his money."

question will

in

chapter

The delusions depicted run
other

The Security

one's self than others.

and the

from the same

profits that come

MEMBER

may

clear

of

difficulty

greater

encountered

the

—-

every

Possibly

lure

and which seek to

invest

to

protection of his capital

SHALL

vestige

Thursday, September 5, 1963

.

economic thinking."

with money

him from his ultimate aim

The

.

which

state

destroy

the path of everyone

WILFRED MAY

BY A.

emotional

"an

reader's "learning to

the

to

identify the delusions which beset

.

is

retained

term debt

reasonable

tial

to

in

the

system,

expect

improvement

Grinnell
a

and

in

Corporation

it

substan¬

earnings.
stock

is

suitable investment for individ¬

uals

and/or financial

institutions.

6296

198, Number

Volume

.

.

The Commercial arid Financial

.

reflections

random

trends

in

whose

popularity has waned and on others enjoying an

is

It

companies, savings and loans,
banks and utilities. Regulation is

with

shares

uptrend.

tough

a

in

name

great fashion—compulsory

mi-

like those holding sway over

lady's attire for a-ball, banquet,
benefit or "brunch."
While we

investment :de-

like to think that

such
earning able today, with American Tobacpower, growth rates,
cash flow, co, the leader, down from a high
consumer
spending,
and
other of 55% in 1961 to 28% currently,
mathematical calculations, stock Steels - which
used
to
supply
cisions

-

determined

are

things

logical

on

assets,

-as

sturdy market leadership are in a
bayou of fashion1, with Bethlehem
emotions and U. S. Steel selling at around

iti fact greatly influ(as in laclies' styles)
by

prices are
enced

caprices,., whimsy and
which have no logical
Hence

tion.

get

we

Metrecal,
has

now

Cola and

with

way

We

control

girth

to soft drinks

slanted beverages by

—

month; and the failure to main-

a

Duffy-Mott, and low fat

met

we

at

party

ex-

plained his own theory that there
is a definite correlation between
women's

styles and stock prices,

two items

The theory is based on

hem

-hem lines and colors. When

lines

are

high,

stocks; and

are

so

feminine

when

call

fashions

for

light, bright colors (such as pinks
and

pastels

Fall by
the

offered this

Coming Attractions
In

like an

conclusion, it looks

lead.

These

metals

base

seem

1961, were in
demand for many months,
dut, have now taken on a livelier
>ook; Cements have been soggy
due to competition and some overcapaci y, aijid Qanadian shares
ave a"guls
°m a 15% lm"
P°st- Chemical and paper shares

So, on this Parisian market mo-

Year's

Day!

if

...

this

result

able,

but

than

those

v

different

offered

.

dreari

review

serious topic, let us

variations .in

cent
can,

what

and

markets

(and :
stocks

if

project,

a

stellar

new

more

continue

ket

Au¬

would antici¬

we

this

that

trust

be

Autumn,

your

participation

portfolio

fashionably

Chas.
NEW

appeal,

to

tailored

place

high

in

too,

+v.

M.

Beringer,
Assistant

and

Frederick

H.

at

in

all

La.

Richard
Jr.

Howe, Edmund J; Blake,
John

and

Presidents,

W.

Hurley,

of

Assistant Vice-Presidents.

hardt, Jr. has been added to the
of

staff

Bell

&

Farrell,

number

Limited

and

y.

Osier, Hammond & Nanton

Limited

pleased to announce the formation of

Securities Limited
to

the

Underwrite and Distribute

i

Canadian Government, Provincial,

Municipal

and

per

Corporation Securities
and

to

offer

a

certainly would, no doubt be Chrysler. The
popularity.;' inr a; oils have great appeal — the big

^of ; divisions,

boy^Rig fwas^: ftf

v

In fd961 international

ones

such

as

Stand-

Complete Stock Brokerage Service

„.

jmdriLyou*L|&- : ard ofNew Jersey,; and; the small-

*

„

'

iened

toboard:roorn% cl^ter,< er Canadian ones ^bout to be abwas ;about aate ?-sbrbfccL Texasi Gulf Producing, big
every,:'other, leisure; pastime nn in the Sahara Sands, is about to

' r;

J

on

all Canadian Stock Exchanges 1

-

bowliiitg I

America;-- We

going

were

do

to

everything^ but*4-eatv-breakfastY
bowling emporiums; and

ters

^

-

»•

.

.ral^10n; ac^unc^

at*-~com£ a-

:

.pinspot-^Sinclair. IBM is sturdily bought

seemed* almost. .as ^exciting

i'afcVa; gaudy multiple of $10.

DOUGLAS B. WELDON—Hon.
-

August 26, 1963
"Announcing the dissolution of the firm of

Officers and Directors

"

earn-

E. M.

...»

%

■

•

KENNEDYr-Pm«/c«t

-W'i'v'-v.%

J.T.SKELLY

\

;

> r

GORDON P. OSLER—Chairman ~

Chairman

DAVID B. WELDON—Executive

Vice-President

Vice-Presidents

-

E.H.GUNN R.G.McCULLOCH

W.A.STEW^RT

C.W.McBRIDE

Gerald F. X. Kane & Co.
....

.Directors

d.j.Mcdonald

t.w.meredith

w.a.dakinjr. ^w.r.franks h.a.leonard

September 3, 1963
-

—

We

MR.

are

pleased to

GERALD

announce

that

F.

KANE

X.

>

Members of
The Investment Dealers'

The Toronto> Montreal,

.......

..^

fjow

amcjate(i wjtfj

Association of Canada

Canadian, Winnipeg, Calgary and Vancouver

Stock Exchanges

us as

Manager of our Unlisted Trading Department
REekman

3-0525

TWX:

London Toronto Montreal New

571-0846

St. Thomas Sault Ste.

York Hamilton Kitchener Brantford

Marie Sarnia Winnipeg Saskatoon Regina

Edmonton Calgary

Vancouver and Victoria

bregman, cummings & co.
4

ALBANY

STREET,




NEW YORK

6.

N. Y.

•

RECTOR

Inc.,

2-0600

l-

•

v

-4.

119

Avenue, members of the

today

$8

A.

Schulte, Jr. and Robert W. Cease,

history;

around

Vice-

Frederick

and

of the motor market and generat-

earnings

Vice-

President and Assistant Secretary;

Charles

—

Midland Securities Corpn.

Midiand -Osx,er

and Chrysler moving toward 15%

we

Treasurer;

Midwest Stock Exchange.

magnificently successful in¬
concern

Vice-Presi¬

Monona

high

75V2

Senior

Herreilers,

+

and

and Treas¬

Hale,

for

Dupuy Opens

.

I

E.

borne Drive.

your

:■%/

Symmes,

Dupuy is engaging in a securities
business from offices at 817 Clai¬

i.

..

M.

past two years, we have

fading

Stuart

J.

With Bell & Farrell

ORLEANS,

consequently 'uptrending) share.
If you were to pick the
in coming months." In the most fashionable stock in 1963 it

noticed

a

York

MADISON, Wis.—Benjamin Bern¬

minded.

Give

in

NYSE

on

history),

we

Bruce
dent

growth and gain.

particularly to the income-

all-time high.

Motors

General

dustrial

the: popular; ing

may-,be

will

Rails

traded

million

91%

with

in

professional investors.

0

.

m0st

a

in-re-

fashion

become
New

Mark

.

t

priests of financial fashion

Descents

With this whimsical background

few

.

,

performers

are

a

„

_

The

Certain

Brooks

Vice-President and Secretary;

dividends.

pate an increased individual mar¬

are

flirting wth

designer).

to

...

,

^

reasons

the

by

the

Yet wlth a11 the lessened en-

ui

reasonably predict-

for

demand by

Favorites

(We happen to think
is

W.

will

of

Clarence

urer;

tempered by share alti¬

0 s anc* m°tors.

P on 0

the

New

before

average

increasing

(second highest August vol¬

Oils and chemicals are in

to°. lack th<; zft they had >".1961
and
and chemicals,
which led the parade two years
a*=? have now passed the leader-

ant mood!

Dow-Jones

in

be

find

ume

a

tudes.

past
of
companies
the

gust

must

vogue

those

interest

shares

synthetically produced by paying
^

in

might

you

Altogether,

will

and buoy-

tivation, expect a new high in

P.

Senior Vice-President

1 % %.

below

are

rewarding
and

their cash

rising conjecture.
Motors still
lobk vibrant, although enthusiasm

»ut depreciation reserves in cash,
ffv'ngs and loans shares had a

yields

that have been steadily

and

Dior, Bohan and St. Laurent)
market will be in a gay

City,

firm

Laurence

special

in

tain high "dividend" distributions

dress designer

dinner

a

York

member

dent;

decade,

'

a

12,

sustained buy¬

rather expect

sistently

in certain issues, which had been

Stock

Prices

v/.

New

Sept.

Incorporated, 120 Bradway,

Exchange.

Electric utilities have been con¬

excesses

Hem Line Influence on

Only recently

Co.

companies. The S & L's have

average

Royal Crown

cific Land and Kern County eager stock market this Fall with
such as the tulip mania in Hoi- Land)
have flagged, what with confidence in high fashion, sup¬
land, the 1929 Stock Frenzy Mar- overextension of certain individ- ported in many areas by prospects
ket, the zeal for uraniums in 1954- ual virtuosi in the industry, the for increased earnings. Where are
56, and for bowling shares two fading glamor of syndicating, and these
prospects?
Among
com¬
years ago.
of selling lots«-$10 down and $10 panies producing copper, zinc and

*

Effective
&

Stock

ing in this division/ even though

diet

margarines by many companies.

50% of 1961 highs.
Real estate
occasion stocks (except such as Texas Pa-

on

and

spread

the

led

Johnson

Mead

explana-

and

market. aberrations

To Be NYSE Firm

ar¬

pin-up girls. But the mood a share. In the population control just crossed $100 billion in assets will hold the firm's
excange mem¬
changed. American Machine and division, G. D. Searle at 140 and and their stocks should in due bership and will become a ViceFoundry which sold as high as Syntex at 114 attract buying course, trend toward price/earn¬ President.
based importantly on sociological
63% in 1961, reached a 1962 low
Other officers of P. W. Brooks
ing ratios more characteristic of
of 15%. Brunswick a co-leader in significance of certain of their other deposit institutions. The life & Co., Incorporated, which was
products and high hopes for fu¬
the bowling industry sold at 74%
companies now have $138 billion established in 1907, are Albert F.
ture earnings.
in 1961 and at 12 currently,
in
assets,
and
their combined Beringer, President;
Stuart
M.
Fat is also in the market fire.
Tobacco shares are less fashionearnings are at an all time high. Beringer, Executive Vice-Presi¬

visible and signifi-

fashions in finance, not un-

cant

P. W. Brooks Co.

understood as

sufficiently

not

life insur¬

5

ance

"great

loan

that there are

certain

to

—

but
bitration
of railway labor,
new
terrific
products
and
research,
SEC ground rules, and new lend¬
still has a great and zealous fol¬
ing powers in the offing for com¬
lowing even at above 280, roughly
mercial banks, and savings and
47 times projected earnings of $6

investment

plus comment on certain

issues,

and

industries

and

competition for copying machines,

fashionable

on

planning

regulated industries

enthusiasm

the

In

Xerox,
some

investment

only one

anywhere!

IBM

By Dr. Ira U. Cobleigh, Economist
Containing

is

there

because

ings,

Fall Fashions in Finance

(921)

Chronicle

6

light

Tax-Exempt Bond Market
k

issue calendar. This is

new

abnormally skimpy.

ago

this calendar stood

at $241,-

little

changed

is

and

531,000

BY GEORGE L. HAMILTON*

the

In

last

moderately
steady.

been

with

active
fair

Some

tax-ex-

has

market

bond

empt

the

reporting,

period last

will be

or more

$25,000,000

bonds

of

accomplished
older

recent to

Techmcal Factors. Favorable

these

The Commercial
Chronicle's
chronicles

bond

obligation

pirices
at

general

grade
grade

hieh
high

first

time in four weeks that this average

in

did not show

a

slight decline•

prices. On Aug. 7 the average

stood

3.02%

at

when

and,

iargely

shows

the

marks

This

com-

£

; ^

■

-

.

August of this,
volume
ing,

of

with

over

figure 'easily
vious

?

record

™

1960. The

in

' 11 -,.Sj'':'£>or

state

eight

coin,

bend

municipal

reported

pro-

approved

as

in

August totaled only $75,000,000 of
bonds compared with

this

when

we

first

loses

months
,

approvals
versus

ran

$1.6

poignancy

some

consider

eight

that

this

of

the

for

year

A

close

billion

$2

to

the

for

billion

Pinch

-

has

,

hitting

Donald

for

ufed

Douglas

$177,000,000

and

County,

bonds. This

revenue

project, located

the Columbia

on

River, would generate electricity
to

be

back

in

Fed

a

purchased by four private

be

land

seems

ton

of

for

there

as

note

is

Gas

&

$100,000,000
(1984)

(1988)
C.

I.

.

debentures

gotiated
group

by

Sent.

on

could

18.

The

struction

is

(Sept.

terday's

$100

as

million

change

Dow

fer

Barney

&

in

the

Chemical
Co.

of

of

factors

the

for

and

is

California, State
r
•Connecticut, State
New Jersey Hwy. Auth., Gtd

possibly

Close

late

in

municipals

is

than

people

Bid

most

would

municipal

tally

stands

The

prefer.

most

our

Street

to

$535,087,000

at

This figure, of

ago.

only

record

a

of

2.262,000

1964-1988

2,294.000

1964-2001

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

1964-1988
1965-1986
1965-2002

Noon
Noon
10:30 a.m.

bonds

include bonds which

does not

September 6 (Friday)

September 9 (Monday)
Ohio
South-Western City S. D., Ohio__

Massillon,

September 10 (Tuesday)
3,415,000

1964-1993

11.00 a.m.

Va.__

1,500,000

1967-1983

11:00 a.m.,

Fridley Ind. S. D. No. 14, Minn.__

1,730,000
1,750,000
10,000,000
1,000,000

1966-1988
1964-1986
1966-1992
1964-1989

8:00 p.m.
10:00 a.m.

,4,100,000 ,1965-1989
25,550,000
1,835,000 1964-1993

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

Franklin

Construction,

Sch.

Hinds County,

Miss

Jackson, Mich.
Nashville

-

New

York City,

Oyster Bay U. F. S. D. #18, N. Y.
Island

(State of)—

1964-1988

10:00 a.m.

1966-1983

8:00 p.m.

Aiken

Co.

Clark

are

50,000,000

Ky

Lewisport,

Public

Robeson County,

3.30%

3.20%

the unsold balance from the $116,-

3.25%

3.15%*

095,000 issue of Aug. 14. That un¬

University

3.20%

3.10%

3.30%

3.20%

jointly by the Bankers Trust Co.

3.30%

3.20%

and

3.22%

3.16%

$60,000,000

figure

approxi¬

various

of

Housing Authority bonds,

is

group

not

an

represents

total

warning to
and

the

in

buyer

potential

near

conges¬

When

future.

this float reaches $600,000,000,

the

"storm warning flag" is generally
run

up

LANCE, INC.

What

municipal
next

R. S. DICKSON & COMPANY

NEW




store

ATLANTA

,

JACKSONVILLE

market
is

the

the
the

to

So.

payments

gold

long-term

will

2,220,000

1965-2002

1
11:00 a.m.

1,275,000

Dormitory

Florida

Revenue

Hammond, La.
Universities

&

State

1964-1978

10:00 a.m.

1,750,000

1966-2003.

10:00 a.m.

College* of

Arizona, Board of Regents._—

Virgenes

problems

money

to be that

remain

Continued

Municipal

,

.

Salinas High

September 24 (Tuesday)

Cap. Imp

S. Hart U. H. S. D.,

page

31

Calif.

8,000,000
6,500,000
21,985,000
1,500,000

—

1964-1983

Mason

City

1965-1993
1964-1980
1964-1983

September 25 (Wednesday)
1,700,000 1964-1980
Ind. S. D., Iowa——
2,600,000
1964-1933
October 1

Worcester,

Mass

(Tuesday)
8,455,000

8:00 p.m.
10:15 a.m.

*

Mvers, Fla

relatively
on

j ,

La.

Carolina

William

Fort

long-term

3,500,000.
2,600,000

-

Sch. Dist., Calif

Honolulu, Hawaii

mar¬

con¬

Water

Calif

im¬

The complexi¬

foreign

related

seems

—

,

the

over

next

ket appear even more confused.

rates

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

2,025,000

September 20 (Friday)

North

clusion

September 18 (Wednesday)
2,500,000 1964-1983
La._^_
14,700,000
1965-1983

—

Fla. State Bd. of Control, Univ. of

Monroe,

of

;

2:00 p.m.
9:00 a.m.

11:00 a.m.

S. D, Calif.

N. C.—

Kentucky

Orleans,

ties of the money market and our

make

GREENSBORO
GREENVILLE

New

District,

for

Unfortunately, the general

RALEIGH

COLUMBIA

Excbenge

YORK

bond

months

possible to judge.

and

CHARLOTTE

few

% V

;

1964-1988
1964-1988
1965-1979
1965-2002

1.000,000
25,000,000
2,000,000

Barrington, R. I.

imbalance

INeORP«RATC»

hi

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

September 23 (Monday)

in

seems

Hospital Service

2, La

Angeles Unified

Las

V. >'

Member* Mldweet Stock

Los

No.

the mast.

Bleak Profits Outlook

Common Stock

r\

District

it

but

many an

possible market

some

Bank.

heavy,

though

even

unwieldy
a

underwriter

tion

r

Lafourche Parish.

managed

Manhattan

—

—

-

:

Chase

11:00 a.m.

September 17 (Tuesday)
Deptford Township S. D., N. J..„
1,895,000 1965-1984
Detroit, Mich.
12,820,000 1964-1984
Howell Township S. D, N. J
1,090,000 1965-1984

3.00%

this

the

Noon

September 16 (Monday)

3.05%

Moreover,
include

various

for

n :00 p.m.
8:00 p.m.
3:00 p.m.

.

3.15%

trading market in:

1:30 p.m.

-

3.15%

We maintain active

1965-1983

—

mately

of

3,410,000

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

September 12 (Thursday)
Akron City Sch. Dist, Ohio
3,000,000 1965-1984
Maple Valley Sch. Dist, Mich
1,420,000 1964-1992
Ramapo Central S. D. No. 1, N. Y.
1,810,000 1964-1990
Tazewell County, Va
V 1,180,000
1964-1983
Wayne Co, Mich
2,185,000 1967-2002

2.75%

r-r.: •i*?

Greenburgh,
Wis—

Cascade,

2.85%

<•

1965-1989
1964-1983
1964-1938

11:00 a.m.

District, Pa.—

1,500,000
2,120.000
4,680,000
5,000,000

Pa.

Pennsylvania, State
3%%
1974-1975
Delaware, State
2.90%
1981-1982
New Housing Auth. (N. Y., N. Y.) 3%%
1981-1982
Los Angeles, California
33A%
1981-1982
•Baltimore, Maryland
3Y4%
1981
♦Cincinnati, Ohio
3V2%, 1981
Philadelphia, Pennsylvania— 3%%
1981
•Chicago, Illinois—w
3%%: ^.1981 $■',
New York City
3%
1980
September 4, 1963 Index = 3.07%

is

Noon

Mich

Co.,

does

availability.

11:00 a.m.

1965-1993

Ind

Corp.,
Oakland

purposes.

apparent

1965-1978

4,789,000

Hempstead Cent. HSD No. 3, N. Y.
Mill Creek Comm.
School Bldg.

2.90%

*No

2,000,000

37, Wash

No.

Noon

School

Vancouver

County

District

Noon

D., So.

Ga

Athens,

Dist.,

September 11 (Wednesday)
Carolina
1,550,000
1965-1983
1,000,000 1964-1993

S.

3.00%

float,

11:00 a.m.
12:30p.m.

3,000.000

3.00%

' The

1964-1979
1984-1993

8.250,000

3.10%

,

1,000.000
9,000,000

;

Calif.

Col.

Jr.

Jt.

Co.

1981-1982

The

-f

Washoe Co. Central S. D., Nev.___

1981-1982

shelves

derwriting

>
-

Pompano Beach, Fla
Rhode

—

5:00 p.m.

Metro.;'-,.

N. Y

3.10%

,

•

Tenn

3.10%

not

Co.

Davidson

&

Government,

3.20%

—

-

Ind. S. D., Texas—

Houston

3.25%

State

1,800,000

—l

Metropolitan Dist., Mass.__

Boston

1981-1982

York

2,750.000

University of North Carolina

1982

New

1,000,000
1,345,000

Minn.——

Mahtomedi,

3%%,
3%

dealers'

1,395,000

Cuyahoga County, Ohio
Wash. State Univ., Bd. of Regents

3V2%

on

1,465,000
1,106,000

course,

the

presently advertised for sale and

Asked

2:30 p.m.

S.

D. No. 29, Ore.

of Sept. 4 versus $551,503,000 a

week

is

1965-2002
1965-1984

Grove

Valleys-Spring

Seven

etc., Jt. Sch. Dist. No. 8,

manageable proportions,

inventory,

]

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

Plymouth,

Signal"

which is

the

1,000,000

inventory situation,

relative

as

#10, Wash.

Pierce Co. Tacoma SD

Pittsburgh School

to "Storm

accurate

bullish

11:30 a.m.

Pittsburgh,

heavier

bond

as-

i

continuing

Maturity

for

the courts and

Warning

while of

Factor

MARKET ON REPRESENTATIVE SERIAL ISSUES
Rate

con¬

mill

rolling

a

The general

Co.

.

Bullish Tax-Exempt

One

plant

Blue List float,

t
'

bonds to fi¬

and

bonds

yes-

registration

sociates

'

of

Inventories

quickly,

1964-1982
1966-1993

is

Kentucky

September.

debe"turas to be underwritten by
Smith,

market

current

indicated
4)

for

validated by

been

ne-

1,235,000

South

issue

City Trustees are expected to of¬

-

however,

ap¬

Harvey Aluminum. This issue has

Dillon, Read & Co.

a

location

nance

Elec-

be

to

in

negotiated

tax-exempt revenue

Financial

are

public

be

Lewisport,

$50,000,000

debentures.
T.

Washing¬

The

to

considered

being

on,

Service

Public

Co.

is

date

other

The

competitive bidding. On

$40,000,000

Power

Water

Pacific

proximately six weeks.

sched'„

presently

Light Co., Port¬

Electric Co.,

General

reoffering

market

flotations

new

&

Power & Light Co. and

market

the

Oct. 22 bids will be received for

D.

Mackey.

11:00 a.m.
11:00 a.m.

1,300.000

Ing en & Co. is to sub¬

Dam Project

aP~

been

not

and the

one

volume

sale

same
*

*

,was,

,

corporate ; bond

approval of picture

$146,000,000 in August, 1962. However,

to

The

trie

the

Co.

companies, namely, Puget

one

high, and

of

side

&

Power

stantial

stands at $7,-

r;'c,ord.,ot close

other

&

Allyn

C,

power

;-

new

Kidder,

Sound

pre-

first

Smith,

&

buyers. However, at the moment

the

the

1965-1985
1963-2000

and

Washington Utility District, Wells

jor tbe next sjx weeks lacks sub-

n

and

posals

P

likeiy

$10 000,000,000 of bonds seems

the

i

momentarily

assured.

On

^

Van

,

Longmeadow Sch., Mass
Northeast Houston Ind. S. D., Tex.

Merrill

Co.,

A.

Ind.

Board,

College

State

proposals in the near future

for

high for August, of" continues firm with
business-light.

193,000,000, also a

f "Z 1
to

B. J.

mit

&

Smithers

S.

Co.

&

Fenner

Co.,

&

F.

The

market.

managers

Pierce,

of

process

Blyth

by

Nuveen

Co.,

the

for

as

Peabody

nt,ly wlthdraw"' at least emy'ln an
arJ.
trac£

w'C, was set back Tbe caieadar 0£
totahvolume of new

of this year

led

,

a es irJ

by general investment demand.
Dunpg. the past four sessions

This

surpassed

for

financings

Federal
.

..

1

t

~

market.

to

.

not warranted

orices

vw,

successful

$717,000,000 oinew

brought

issues

record

long-term financ-

new

group

supporting these issues For most
o£ the .summer thesehave been
supported at

readied

Indiana

schedule

issue

in

this",; operation

,

saw

year

3,000,000
2,865,000

District, Minn.

Yamhill County S.

^

o£ about'$7.50 per bond.

Park

County

11:00 a.m.

1965-1990
1964-1983

1,500,000
3,135,000

.V
Reserve

Conn._^_

Building Authority, Pa
University of Alaska

Pending

Deals

loans

being

John

for

up

I

negotiated

two

Lynch,

the

~

e Par

3.07%, the result for August was
net loss

The
has

the

on

*u

j

s

pared with the current average of
a

in

bonds

(1964-1980)
Sept. 24.

Negotiated

mediate and longer term markets

'unchanged from last week

3.07%.

sale

including

T*!ef ^ability

generalidnd

Index

ment

at

now

are

17 and $21,985,000 State of

North Carolina, Capital Improve¬

three year highs.

Financial

and

yields

(1964-

District

1988) bonds up for public bidding
Sept.

a

bills;
Yielf: Index Unchanged

Hennepin

School

Unified

in

is-

new

September 5 (Thursday)

_

As we move into the fall, and
hoped for more active municisues but the overall volume was
PaI bond market, the technical
not especially large. The advent factors
which have particular
of August vacations, plus the long bearing on tax-exempts are about
Labor ".Day
weekend, did much unchanged from where they stood
to slow down the tempo of the
a month ago. The U. S. Treasury
market by reducing and limiting appears to have brought the bili
general
investor
demand
from rates about where it wants them
appearing.
f°r the 90-day and the 182-day
apparently

was

Fairfield,

Los

;

v

bonds for Sept. 10;
Angeles,
Calif.

(1964-2012)

shortage of bonds,

no

Thursday, Septemberl 5, 1963

Douglas Co. S. D. No. 66, Neb

Housing

Profit

Limited

York

rate, there

any

prices
business

retail

At

year.

New

York,

New

$25,550,000

are

.

tabulations we list the bond issues of
for which specific sale dates have been set.

following

$1,000,000

The

$260,490,000.

at

presently

.

.

Larger Issues Scheduled For Sale

A week

still

only sizable loans on the schedule

Since

Chronicle

The Commercial and Financial

(922)

—

10:00 a.m.
9:00 a.m.

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

/

Volume 1S8

Number

6296

.

.

The Commercial and Financial

.

Chronicle

(923)

may

The Case Against

Proposed

"Interest Equalization
Andrew

N.

Overby,*

Vice-President

and

Institution

First

Emile

Boston Corp., Aew York City and Chairman of the IBA's Foreign

Secretary

of

the

Managing Director of Monetary
the

opposing
adverse
its

proposed

long-term

inconsistency

tax

effects

with

and

U.

S.

of

foreign

of

payments

freedom

of

Deputy

securities:

capital

for

tax

position;

creation of fears of further

tion, encourage

International

of

have

may

because

reduce our

rather

sense

Investment Bankers Associa¬

patriation of the investment

of

the en¬

stitute

"Inter¬

ceipts.

actment
est

the

of

proposed

Tax''

Equalization

following

the

for

rea¬

posed tax'will

since

afthe

United

States

foreign

payments

in

long

run

will

not

from

capital
know

improve

lion

in

rum.

Andrew N. Overby

term

capital outflows result from direct

investment

portfolio

A complete mea¬

and bank loans.

payments

of

balance

the

of

impact of capital flows must take
not

account

outflows

such

from
of

previous in¬

(b) the amount of the

dollars that go out of the
in the purchase of

and

again in the

United

of

services

country

foreign securi¬

back

come

purchase

U.

buyers
United

as

businesses

citizens and

are

Private

of

through
improve

position

of

Moreover,

United

the

asset
States.

indicated above, fu¬

as

ture receipts from

foreign invest¬

in

the

form

dividends

and

return, of .capital

ments

benefit

the

balance

of

interest,

of

two

of

million,

payments

modest

is

direct

a

offset

of international
the

in

than

extent

the

1962. ; This

figure

represents

U.

available
may

to

them

cause

nomic

them

purchases

in the holding of larger

probably, at

the

United States

words,
these

what

the

calls

outflow

net

a

Commerce

long

includes

net

under

Department

term,

-

bank

of

repayments

of

a

$248,000,000

"other

which

and

position

long-term balance of payment

position,
ment is

private
asset

an

iture.

but

which

to

income

previous investments

serves

to offset current net capital out¬
flows is indicated by the fact that

in

the

five

income

gate

private

to

to

to

outflow for

of

over,

all

amounted

compared

as

net

ment

1958

from

investment
000,000

years

1962,

foreign
$15,419,-

an

new

aggre¬

invest¬

million

$170

in

"amounted "

1962
to

compared to

alone

More¬
income

$3,850,000,000

a new

as

outflow of $3,-

*273,000,000.
Portfolio
which

H.R.

in

investments

States

8000

"unquestionably
contribution

to

the

aggregating

our

exchange

the

run

long

position

net

a

over

since the earnings

investment

and-ultimate




on
re¬

long-term

considers

one

Japan

situated

and

countries

flow
in

similarly

back

ments

ly

of

transactions

securities

Western

Purolator
mon

over

latter

period

a

of

transactions

not

minus

a

time

have

in

from

by

U.

S.

persons

Europeans

in

in

the

1963

against

U.

S.

purchases

of securities

the

of

came

first

tb

sales

five

$1,380,to

U.

S.

Europeans of $1,403,-

000,000, leaving
fect

that

snow

as

of

by

published

months

mar¬

the

a

net negative ef¬

balance

of

payments

proposed

tax

will

significantly

to

balance

of

our

reduction

payments

how

the

$500

been

per

commissions and transfer taxes

estimated

by

the

Another

Continued

on

applicable to the sale to Purolator will be paid

by Purolator.
THIS OFFER WILL EXPIRE AT 5:00

P.M.* EASTERN DAYLIGHT
TIME, ON SEPTEMBER 26, 1963.
common

stock tendered

up

to

200,000 shares. "
As to shares received by the
P.M.

Eastern

Depositary, Bankers Trust Company, before 5:00

Daylight Saving

Time

September

on

14,

term

private portfolio capital out¬

flow.
the

These

are

impact of longlarger than

even

which

income

returns

1963,

Purolator

will

nually to the United
such

investments.

less than 200,000 shares.
As to shares of

P.M. Eastern

the dollars that

foreigners
from

in

United

first

States

unless it elects to purchase a larger amount.

Payment will be made for all shares purchased promptly after acceptance of
shares in accordance with this Offer.

instance

purchases

To accept

of

1.

and

securities

back

way

find it

chase

of

of course,

that

are

in the

the

accumulating dollar
is of deficit

themselves

slightly
issues

and

more

A

in

($558

U.

1962

million),
reduction

are
in

for

new

S.

million

capital

of

a

such
the

total
coun¬

outflow

private long-term capital from

the

United

Japan
same

be

and

States

to

Request

a

Canada

foreign exchange status
trading

to

disrupt

bank

or

or

broker to effect the transaction for them.

member firm of the New York Slock Ex¬
change and to any member of the National Association of Securities
Dealers, Inc., w hose name appears on the Transmittal Letter accompany¬
ing a tender, a fee of 13Vi$ per
chased under the Offer.
Forms of Transmittal Letters and

share for each share tendered ami

pur¬

by calling

may

be obtained by writing

or

Read & Co.

Inc., 46 William Street, New York 5, New York (212 422-2828).
Transmittal Letter will also be accepted.

Facsimile copies of the

Dillon, Read & Co. Inc. is acting

as

Manager in soliciting lenders under

this Offer.

and

PUROLATOR

may

business

relationships

copies of the Offer

wiring collect either Bankers Trust Company, Cdrporate Agency
Division, 16 Wall Street, New York 15, New York (212 577-2345) or Dillon,

or

and other countries in the

expected

negotiable form, to Bankers Trust Company, Corporate

Purolator will pay to any

which

than half of the
in

of

that

in

coun¬

Japan,

accounted

floated

markets

position

reserves,

near-deficit

or

Canada

of countries

case

in

not

pur¬

is greatest,

exports

2.

States,

promptly, in the

our

certificates

Agency Division, 16 Wall Street, New York 15, New York,

their

find

United

.

the Offer, stockholders of Tung-Sol should either:

Complete and send the prescribed Transmittal Letter accompanied by their

stock

The

credit.

will

the

to

ex¬

the

chances that dollars spent to buy

foreign

September 14, 1963 and before the

our

foreign securities.
follows

on

of

obtained by

were

stock received by the Depositary after 5:00

are

They

the

common

piration of the Offer, Purolator will accept such shares in the order of receipt
by the Depositary until it shall have purchased 200,000 shares under this Offer,

States from

foreigners

by

Tung-Sol

Daylight Saving Time

an¬

and

September 4, 1963

Treasury

approach to the

share

purchase all shares of Tung-Sol

to

could be achieved.

Shares of Common Stock of

$22

us

million

annual reduction reported to have

only $23,000,000. The net effect

at

of

deficit.

Certainly it is difficult for
understand

con¬

of the

contribute

not

the

a

inter¬

that the imposition

Products, Inc. ("Purolator") offers to purchase 200,000 shares of com¬
Tung-Sol Electric Inc. ("Tung-Sol ) at $22 per share. Any brokerage

Purolator will

these

been

our

stock of

SAVING

Euro¬

national accounts, it must be

Data

(ii)
pay¬

current¬

are

our

with

of

countries, and (iii) the fact

pean

plus

in

to

States

exports,

balance

leakages that

occurring

that

United

our

small

very

expected

the

to

purchases

the

be

may

cluded

Treasury

(i)

j

Canada,

international payments.

by

com¬

when

to the imbalance in United States

000,000,

overcompensate,

Europe

significant contributions

no

persons

capital

private capi¬
with

Euro¬

that outflow of capital to

accept for purchase all or any part thereof on a pro rata basis, but in no event

other

are

of payments

of

States

make

1

$139

ance

curtail

United

transactions

from

transac¬

there

But

tries.

to

our

less

to

.close

very

securities

tions also that help offset the bal¬

abroad

represents ':
the

foreign
the

seeks

that

of

by $280 million.

peans

purchase all of such shares if less than 200,000 shares have been so tendered. If
more than 200,000 shares have been so received before that time, Purolator may

of $1,076

investment

the

chases

on

balance of payments position.

tries.

$16,626,000,000.*

to

.come

balancing out, with the result

which

will make
our

And of late these

S.

U.

from

Tung-Sol Electric Inc.

net,"

loans;' and

million, both of which assist

Trade

extent

persons.

Offer to Buy

previous investments and foreign

•

The

from

invest¬

foreign

creating expend¬

buy securities from United

peans

other

likely not merely to

exports of goods and services with

asset

In

adaptations

the

ready access to
are

of

expense

reserves.

countries

pensate

reserves,

have

we

citizens and businesses buy secu¬
rities from Europeans and Euro¬

of

transactions in out¬

of

recognized that

securities

exceeded total U. S. pur¬

Thus,

of these countries it

capital funds: United States

States

of

persons

securities of

standing foreign securities;
outflow

be

vate

million

of $1.1

issues of foreign

on

case

two-way flow of long-term pri¬

a

eco¬

result

be¬

are

chases

in

sidered from the standpoint of the
international

adopt

which will

policies

it

pur¬

European

reserves

compared with

balance

purchases

S.

longer

readily

as

to

causes

no

them to feel that this is

kets

Western.

as

$188 million deficit in

a

1962.
In
the
five'
years
1958
through 1962, total European pur¬

issues of securities

tal

it

States

of

-$696 million

a

us

investment,

S.

$1,076,000,000;

those

accumu¬

reserves;

low

a

ing accumulated?

j

that

not

United

new

countries where

to tideAhem over balance of

payments difficulties,

private capital,

direct

$55,000,000

on

relying

reserves

billion net outr

flow of long-term

new

are

operated

capital flows

are

having

to year,

year

high of

a

payments against,

roughly $1.1

other

the

effect

Canada

and
have

that

long-term

to

about

chases of
from

from

to

this, let

in future years. Accordingly, con¬

U.

opposite

the

the

on

mil¬

$800

reasonable

bulk

our

for

lating foreign exchange
What

transactions

surplus In 1959

much

In the

private portfolio investments. This

other factors

international

the

do

we

the

in¬

earnings,

retained

in value and

creases

investment

such

$600

say

for

was

seems

the

United

and

abroad

investment

'growth

it

and

that

and

but

total

1962

long-term

of foreign securities.

buyers

the

(c)

course,

securities just

S.

States

goods

States

of

and,

the fact that foreigners are
of

also

but

investments,

vestments,

ties, but

arise

which

receipts from

(a)

initial

the

of

only

dollars

of

port¬

short-term

from

the
in

attribute

Private

sure

the

of

investment,
that

combined

investment,

not

do

long-term

comes

signifi cantly

-

statistics

investment

which

long

invest¬

folio type as between that- which
arises

it

portfolio

official

of

short

pre¬

balance of payments

our

on

balance

the

the

separate the income, from private

fect

and

state

So

to countries that

re¬

"To

long-term

our

ment

the

con¬

payments

is difficult to

(1) The pro¬

adversely

of

cise effect at the present time of

'

sons:

It

balance

and

or

negative."

nancially dependent

tion

opposes

varies

re¬

Canadian

the

these.

reached

is likely to be nil

the United States, being fi¬
two flows have
upon us in a
to

upon

The

America

with

payments, and indeed

Japan

countries

Advances proposals for exemption.

Monetary Fund.

Uni-

before

probably won't help

it

dis¬

and temporarily draw on

abroad;

it

.

balance

competitive posi¬

increased foreign investment in U. S.;

non-asset-creating expenditures

statement
to

of

United States balance of payments

and Japan

must

Mr. Overby main¬

should improve our international

we

Stanford

testimony

applied

as

move¬

restrictions;

criminatory phases; administrative complexities.
tains instead

S.

July 29, 1963 made

on

fry to

Japanese securities:
.

foreign economies;

of

in his

U.

Professor

spect to the effect of the proposed

damage to U. S. capital market and damage to dependent

ments;

the

on

and therefore the balance of
pay¬
ments advantage when we

apply it to countries like Canada

Payments,

the following

for

reasons

balance

policy

our

Treasury

purchase

our

in

the Congressional Joint Economic

Fund, cites following

on

on

.

Depres

Committee
Assistant

pay¬

than

/Y

study

of

versity,

Investment Committee.

Former

less

no

The co-author of the Brookings

! Balance:

Director,

balance of

our

currently

the long run.

11

By

well hurt

ments

7

PRODUCTS, INC.

-

assess-

page

16

The Commercial and Financial Chronicle
8

Public

DEALER-BROKER

INVESTMENT LITERATURE

RECOMMENDATIONS

&

Brokers

—

and

reprinted

full

in

available

sub¬

on

current issue
$1—Wall Street Transcript, Dept.
scription—Copy

available is

of

Dover

Common Stocks for

Sound Income

—Report—Thomson &_McKinnon,
2

York,

New

Broadway,

Y.

N.

Review—Yamaichi Securities Co.
York, N. Y. 10006.

New

10004.

Earnings Estimates of Major U. S.

randum

FMC

Sauve

Co.,

N.

Lifetime

available

Brothers,

are

R.

37 Wall Street,

Inc.,

York,

Cobleigh—Basic in¬

Gains—Ira U.

—

&

Also

10005.

Y.

commnts

Co.

Incorporated,

Also available

are

cal, Dresser Industries, and Amer¬
ican

Chain

Mortgage

&

300

surveys

Ar¬

General

Mills, American Potash & Chemi¬

&

Cable.

'

Guaranty Insurance

Company

—

York, N. Y.

New

Avenue,

Gas,

Corporation —Analysis

S'urvey

—

Inc.,

Dittmar

—

201

North

St.

Mary's Street, San Antonio, Texas
78205.

,

Olin Mathieson

Chemical—Analy¬

sis—Fahnestock & Co., 65 Broad¬
way, New York, N.'Y:

Ward, Singer Co., du Pont,

gomery

Wells

Bank

Fargo

and

Quaker

Oats.

and

Florida

Bancgrowth

Inc.—Memo¬

randum—Dempsey-Tegeler & Co.,

Fifth Avenue Coach.

available is

a

10006.; Also

survey of Gardner-

Denver.

J.

Warren

on

Mathieson,

Olin

memo¬

a

Arvin Industries.

on

Corporation

Evans

Y.

N.

Electronics,

Sheet & Tube, Armco Steel, Mont¬

Vending—Sur ve y—W.

ABC

York,

2

Borg

Louisiana

of American Airlines, Youngstown

*

*

New

Also available is

10004.

10022.
#

Incorporated,

Beane,

Broadway,

Park

New

Life Insurance Stocks for

Revised
Burnham and Company, formation,
1963

for

Companies

Ill Broadway,

of New York Inc.,

Corp.—Analysis—J. R. Wil&

10005.
•

Amphenol
kansas

928, 54 Wall St., New York, N. Y.
Japanese Shipbuilding Industry—

analysis of Frito Lay

Inc.

liston

Transcript

Street

cross-indexed

MENTIONED WILL BE PLEASED
PARTIES THE FOLLOWING LITERATURE'

INTERESTED

SEND

TO

Co., Inc., 52 Wall St., New

reports

THE FIRMS

THAT

UNDERSTOOD

IS

Stocks—

Common

York, N. Y. 10005.
Wall

AND

Utility

Comparative figures—G. A. Saxton

IT

Thursday, September 5, 1963

...

(924)

C.

P

e n n e

y—Memorandum-

Dean Witter &

Co., 14f Wall Street,

New

York, N. Y. 10005.

highlighted for in¬
Inc., 1000 Locust Street, St. Louis,
study —
Revl on—Memorandum—J. •>. W.
Aero
Geo
Astro
Corporation—
Mo. 63101.
60 Broad Street, New York, N. Y. vestors, about the attractiveness of
life stocks, the historic growth of Analysis—Wachtel & Co., Inc., 729
Sparks
&
Co.,
120
Broadway,
10004.
Frontier Airlines Inc.—Report—R.
New York, N. Y. 10005.
representative life insurance com¬ 15th Street, N. W., Washington, L.
Warren Company, 818
Olive
Electric Utility Companies — An¬
panies, and criteria for prudent D. C. 20005.
Memorandum
Street, St. Louis, Mo. 63101. Also Seeburg
Bruns,
nual review, with comparative
current selection of seasoned life Air
Reduction
Company
Inc.—
available is a report on Holiday Nordeman & Co., 115 Broadway,
data in regional groupings—Carl
stocks with a view to long term
.

—

Rhoades & Co., 42 Wall

M. Loeb,

available

Also

analysis

an

of

Transport Industry.

the Air

Electric Utility

—Hirsch
New

is

10005.

Y.

N.

York,

New

Street,

&

Stocks

—

York,

Analysis

comments

solidated

Edison

Also

10004.

Y.

N.

are

10017—$2

Y.

N.

Street, New York,

East 42nd

220

per

Con¬

on

Incorporated, 650 South
Spring Street, Los Angeles, Calif.

New

Inns.

90014.

Life

American

All

Casualty—

&

York, N. Y. 10006.

■

i

Gelman Instrument

—F.

Co.—Analysis

J.

Winckler

Company,

nobscot

(quan¬

copy

tity prices on request).

Co., 25 Broad Street,

available

Analysis—Mitchum, Jones & Tem-

capital gains—Cobleigh & Gordon, pleton,

—

Building,

Detroit,

Pe¬

Mich.

Sharon

Steel, Corp.—Analysis—

Schweickart
New

&

Co., 2

Broadway,

York, N. Y. 10004.

48226.

Sta-Rite Products Inc.—Report—
&
Gulf Life Insurance Company of
Loewi & Co., Incorporated, 225
Salle Street,
Gold Rush—By Arthur MiltonJacksonville, Fla.—A n a 1 y s i s— East Mason
Street, Milwaukee,
Chicago, 111. 60603. Also available
Study of the history and potential
Equitable Securities Corporation, Wis. 53202.
is an analysis, of R. C. Can Com¬
A.:;
of life insurance stocks—Timely
322 Union Street, Nashville, Tenn.
pany.
Publications, Dept. C, 550 Fifth
Broadcasting—Report—
37203. ' Also available are analy¬ Stprer
American Telephone & Telegraph
Ave., New York, N. Y. 10036 —
Harris, Upham. & Co., 120 Broad¬
ses of Jefferson Standard Life In¬
Co.
Analysis — S'hearson, Ham- surance
$2.95 per copy (quantity prices on
way, New York, N. Y. 10005.

Life Insurance Stocks: The Modern

Co.,

South

39

Tegtmeyer

H.

Analysis—Wm.

La

•

.

Office

York,

New

of

Co.,

Kendall

Equipment,

Paddington Corp., Kroger Co. and

—

American Optical.

Electronics

Industry

—Goodbody
New

,

&

York,

2

available

are

American

Radiator

Also

memoranda

on

Standard

&

Sanitary, Borden Co., Emery Air
Freight and Minnesota Mining &

Manufacturing.
Funk &
tions

&

articles

tries,

Scott Index of Corpora¬
Industries

and

Index

—

corporations,

on

over 200

of

indus¬

business

general

jects taken from

sub¬

financial

publications, 350 broker's reports,
speeches> before
analysts

and

societies —1962

Annual

Cumula¬

tive Volume $30. Further informa¬
tion

the

on

issues

weekly

available

on

monthly

or

request—In¬

vestment Index Co., .206 F Colon¬
nade

—

NYC residents add 5%

sales tax).

■

-

.

Building, Cleveland 6, Ohio.

Long-Term Bonds

—

Discussion—

New York Hanseatic
60 Broad

Corporation,

Street, New York, N, Y«

10004.
New

Yqrk City Bank Stock
Comparison and analysis of
York

New

City

Meeds,

&

Over-the-Counter Index

—

,120

showing

up-to-date

an

in

used

and

Averages

the

National

market

35

to

as

—

Jones

-

over

-

the-

used

stocks

performance

period

industrial

Dow

Quotation

both

Averages,

year

the

industrial

counter

compari¬

listed

the

between

stocks

the

in

Bureau

yield
over

and
25-

a

National Quotation

New York 4, N. Y.

Bank, Ltd.,

Higashi-ku,

Osaka,

Japan. Also available is
of the Japanese

Japanese Market
Daiwa

review

a

Cement Industry.
—

Review

Nippon

&

York,

available

Co.,

Ltd.,

is

Street.

are

analyses

of

Express,

Nippon

Oil.

Portfolio
Bulletin

Dept.

Review

—

L.

F.

Co., 120 Broadway,
N.

an

Y.

Also

10005.

analysis

of

Chase

Selections for Inpome—
—

CFC,

Richard

Reynolds

available

Also
S.

Atlantic

G

S.

Graham,

&

Co.,

are

reports

Co.,

Inc.,

Phila¬

CFC,

Dept.

Gellerman,,

comments

are

Wflll Street, New

Co.,

American Com¬

u

1 f Oil—A

International 1 Minerals

House

Brunswick

Mining

Limited,

pany

320

Com¬

Street,

Bay

Toronto 7,

South

Hecla—Memorandum

&

South

111.

and

Company,

Salle

La

Lim-

available

Mathieson.

''/•

are

•

Memorandum

—

York,

West., Montreal

Canada.
Pacific

Plywood

Morgan

Manhattan

120

Y.

Inc.—

Co.,

&

Plaza,

memoranda

INC.

New

Com¬

—

on

Also

New

York,

available

are

Kelsey Hayes Com¬

National Distillers & Chem¬

Corp. and Ui S, Steel Corp.
Equipment
&

Memorandum

—

Co.,

Inc.,

74

Wall

Edison

Wall

Co.

of

New

Street, New York, N. Y.

10005.

a:

Report—Hill,

CO., INC.

Thompson

Co.

&

Inc., 70 Wall Street, New York 5,

Dana

120

For

dum—Paine, Webber, Jackson &
25

Broad

Marine

Co.

&

Broadway,

analysis—

Incorporated,

New York, N

Y.

10005.

Dial

.

—Hill

rated,
Los

Company—Analysis

Richards
•

621 'South

Angeles,

&

Co.

Incorpo¬

Spring

Calif.

in

recent

reasons

stocks;

undervalued

your

issues

own

in

for

offers

and

selec¬

today's

t-

this

copy

Bank

analysis

Trust—Analy¬

Allen

Co.,

Building,
Also

of

&

of

your

unique

letterhead

C;;\

Inc.,

just

book
to

the

available is

Tidelands

DEPT. C

220

Dallas,

send

$2

publishers:

^90014.

:

East 42nd Street

/

New York 17, New York

an

Royalty

Trust.

McQuay,

In

&

c.—Analysis—Piper,

Hopwood,

Street,

BROKERAGE

South

115

HOUSE

Minneapolis,

Minn. 55401.

REPORTS

Microwave
Analysis
111

—

Sutter

Electronics
Hannaford

Co r
&

p.—

Plus—over 140

Talbot,

Street, San Francisco,

,

Calif. 94104.

Street,
Also

leading business and
financial publications

Montgomery Ward & CompanyAnalysis—Hornblower
1

Chase

Manhattan

are

comments

on

&

Weeks,

Plaza,

INDEXED and BRIEFED WEEKLY

New

in the

Gardner Denver,
i

FUNK & SCOTT INDEX
o(

Brokers

Reports in Full

At Your
An

annual

STREET

Fingertips

brokers

comments

and

—
FULL ORIGINAL
TEXT
totaling millions of words complete
reprinted
and cross-indexed for in¬
stant and continuing use.
Send $1.00

Corporations and Industries

For Full Information and

FREE sample of latest index
mail this coupon

subscription to the WALL
TRANSCRIPT
brings you
of

[
I

INVESTMENT INDEX
Colonnade Bldg.,
Cleveland 6, Ohio

ad

for

this

week's

issue.

Transcript
Dept. 928

54 Wall Street

HA 2-4510

New York 5, N. Y.

j

NAME

I

with

complete, concise

Also' available

Wall Street

Finance

shares

powerful

life

Cobleigh and Gordon, Inc.

Petroleum

.

Teletype 212 571-1780; 1781; 1782

life

remarkable

prompt postpaid delivery of your

with

Street," New

f

Trinity Place, New York 6, N. Y.

of

tion

thousands

Corp.—C hart

McDonnell

Members New York Security Dealers Association

of
20

of

life

growing major

the

market.-

reports

Troster, Singer & Co,

gains

ownership

-

highlights

fastest

documents

gives

years;

Lighting—Memoran-

York, N. Y. 10005.

New York.




market

on

Steel

our

book

1

Cove Vitamin & Pharmaceutical—

i

as

industry;

York—Analysis—H. Hentz & Co.,

ASTRODATA INC.

HAnover 2-2400

insurance

Also

10004.

readable

Long Island

Jaffray

Broadway,

10005.

pany,

72

.

This

Street,

ments—Oppenheimer, Newborg &

Consolidated

T4

By Ira IK Cobleigh

Co.

&

practical guidelines for

Texas 75201.

Street, New York, N. Y. 10005.

1

FOR

Chi¬

and Great Western Sugar.

Texas

Report—Peter

Stone

Y.

are

St. James Street,

Que.,

De¬

LIFETIME GAINS

Smelting, Inland

sis—Brown,

1,

Michigan

Building,

LIFE INSURANCE STOCKS

,

N.

—Leggat, Bell, Gouinlock Ltd., 275

Carolina

Tanningof

York, N. Y. 10004.

' j\:

.

Pacific

Buhl

Co.,

&

Street,

25K Broad

Incorporated,

Glidden and Olin; Curtis,

on

&

Just Published

West,

208

Chicago,

Street,

Also

60604.

memoranda

—Walston

HENRY I. SIEGEL

Forgan

randum—Hayden,

American
Calumet

Clark

HOLIDAY INNS OF AMERICA

Company

Salle

La

111. 60603.

New

Shoe

troit, Mich. 48226.

Ont., Canada.

available

Toronto 1, Ont., Canada.

ical

McLOUTH STEEL CORPORATION

&

itfed', 67 Richmond Street,

Analysis—Glore,

Smelting—

&

Memorandum—Gairdner &

&

V;

10005.

Corporation,

Deetjen

New; York,

O i 1—Memorandum—G.

Nicholson

135

Y.

Broadway,

Memorandum—First

Interstate Fire and Casualty Co.—

,

ETHYL CORP.

La

cago

comments

ITEK CORP.

S'outh

120

N.

120

Leaseway Transportation—Memo¬

N.

IONICS INC.

Co.,

Street, Chicago, 111. 60603.

Imperial
W.

&

Co.,

Company-

Emanuel,

—

Wolverine

,

Vision Inc.—pAnalysis—

of

Freehling
Salle

.

tric, White Motor and Interstate

Neu,

Trading Room:

Building, De¬

troit, Mich. 48226.

Seventh

our

i s—Watling,

Department Stores.

Cities Service Company

Currently Active Stocks in

1 y s

n a

United States* Freight

Analysis

&

York, N. Y. 10005.

For Banks, Brokers and Financial Institutions—•

Insurance

&

Line Co., Deere

Chemical, Rochester Gas & Elec¬

120

on

on

mercial Barge

Chase

Rubber.

o m p a n y—

Chestnut Streets,

Bache & Co., 36

Life

Lerchen & Co., Ford

C

Analysis—Robinson : &

Henry

and

Company of Georgia.

t

,

Refining

Canadian

Broadway, New YOrk, N. Y. 10005.
U.

Electric.

—Sincere

149.

Ajinomoto, Iwaki Cement, Meimi
Seika,

Rothschild

—

Front

Manhattan Bank.

Securities

available

46

—

Broadway, New York, N. Y. 10006.
Also

Inc.,

Industry

Paper

New

&

Company,

Kansas; Gas

on

York, Ntf Y. 10005^/Also available

Folder

—

Also available

memorandum

10 Borman Food Stores—Comment-

Broadway, New York 5, N. Y%'

son

a

delphia 2, Pa.

stocks

bank

Bissell

Laird,

—Review

Kitahama,

Co., 14 Wall Street, New

15th and

Bureau,

Sumitomo

Co., Lamar Life Insurance

&

is

International Balance of Payments
—

mill

York, N. Y. 10005.

,

Broadway,

10004.

Y.

N.

Comments

—

Co.,

request

ADDRESS.

L

I
| CITY

I
I

STATE.

—

.

.

•

today!

00MPANY~T|

University Circle

I

j

j'

6296

Number

198

Volume

.

The Commercial and Financial Chronicle

.

.

the

If

Gold Boom

Eve

on

M.

I.

without

(925)

F.

meeting

major

any

passes

Midland-Osier Securities Formed

the

change

gold market is expected to settle
down

Of I. M. F. Meeting

more

once

to

normal

rou¬

TORONTO,
land

tine.

Ont., Canada —Mid¬

Securities

and

Osier,

Corpn.

Hammond

Limited,

&

Nanton

Limited, have announced the for¬

Foreign Banking

distrust evidenced
gold bullion market according to Dr, Einzig.
Examined are
the "pro" and "cons" on changing parity price of gold, the reasons for
present gold moves and the future fate of the gold buying pool—
questions bound to be discussed at the forthcoming I.M.F. meeting,
Foreign exchange market does not share dollar
the

mation of

And

By Paul Einzig

in

distribute

has

—

to

$35.11

over

the

29,

Aug.

on

crisis.

ration

to

of

Board

Governors

irresistible inducement

an

erate

market by Jew¬

the London gold

on

to

review

large scale, since

a

the
By

Samuel
Mocatta

&

■

:■

tached

to

arranged for the
.-following Tuesday, Sept. 2, which
delivery

\

was

gold

particularly

appear

It is safe

speculation.
that

the

this

for

but

at¬

risk

would have been

of

the

existing

rules,

in Stewart,

is

There

of

evidence

no

any

Euro-dollar

for

demand

heavy

dition

attrac¬

Vice-Presidents.
the

to

Donald,

T.

In

ad¬

officers, D. J. Mc¬

Leonard
The

directors of the firm.

are

new

organization,

extends across

which

Canada, will have

real, Hamilton, Kitchener, Brant-

couver

ternational and foreign commerce.

Another

important objective

to shorten and

was

merely

will

statutory

and

also

Victoria.

be

An

maintained

affiliate

in

New

York City.
The

simplify the regu¬

reiterated

de¬

Limited

will

be

not

&
af¬

fected by the merger.)

Three Join

McDonnell Co.
A v'

-AC'v-•••'■

' I'

-

'v-J'-' •.'/.".•/A,

A

WASHINGTON, D. C.—J. Newton
Brewer,

Jr.,

Edward

M.

Becker

and Richard L. Bruce have

joined

the Washington office of McDon¬
nell

&

bers

of

Co.,

Incorporated,

mem¬

the' New York Stock Ex¬

change, Washington Building. Mr.
Brewer

has

President

been

of

formerly

elected

the

firm.

officers

Vice-

a

All

were

of

Rouse,
Brewer, Becker & Bryant, Inc.

F. I. duPont Names

Omaha Mgr.

offices in London, Toronto, Mont¬

ford, St. Thomas, Sault Ste. Marie,
Sarnia, Winnipeg, Saskatoon, Revision was to enable Edge Act and
gina, Edmonton, Calgary, Van¬
agreement corporations to operate
effectively in financing in¬

other

and

Osier, Hammond

W.

The primary objective of the re¬

more

Nanton

of

Meredith, W. A.
Dakin, Jr., W. R. Franks, and H. A.

N.

tus

quirements.

an

The revision eliminates the for¬

first office of Osier, Ham¬
set

was

in Winnipeg in 1883 by Augus¬

up

re¬

OMAHA,

Neb.

has

been

appointed

the

Omaha

duPont &

Nanton.

Mr.

Nanton

—

Henry

office

Moss

B.

Manager

of

Francis

of
I.

Co., 305 South 16th St.,

it has been announced by Edmond

Senior

duPont,

nationwide

& Nanton Limited

•),
lation by deleting provisions which mond

heavier.

even

short-term specula¬
through purchases of spot

tion

to

assume

demand for gold

days instead of two.

m^ans five
This makes

the

Pool increased

Gold

on

This time

the following Mondays.

a

a

five agreement corporations.

Rothschild & Son, risk involved is negligible.
Montagu
&
Co.,
and allowing the price to creep up the
but

offer

to

Reserve System has company are Douglas B.
Weldon,
revision, effective Sept. Honorary Chairman; Gordon P.
1, 1963, of its Regulation K affect¬ Osier, Chairman; E. M.
Kennery,

adopted

op¬

ish firms, N. M.

Goldschmid),

and

all Canadian Stock Exchanges.
Officers of the new securities

the

of

division

corpo¬

complete stock brokerage service

official

the

of

cinity

in

important part played

the

and

Government,

Federa 1

the price in the close vi¬

to keep

that day was due to

on

Canadian

securities

insurance

partments

Osier Securi¬

Provincial, municipal and

American effect since Jan. 15, 1957, that are
technical causes connected with selling price plus costs.
But in applicable to so-called Edge Act
Labor Day in the United States recent
days it allowed a "pre¬ and agreement corporations oper¬
on
the following Monday,
Possibly in ating under Sections 25 and 25(a)
Nor¬ mium" to develop.
mally all spot dealings in gold doipg so it wishes to discourage of the Federal Reserve Act. Pres¬
are for delivery in two days, and
speculative buying. If the price ently there are 30 Edge Act cor¬
gold sold on Thursdays are for is pegged rigidly at a too low porations (including four which
delivery not on Saturdays (owing level it provides speculators with have not opened for business) and
boomlet

-

underwrite

the Central Bank's ing "corporations engaged in for¬ President; David B. Weldon, Ex¬
Gold Pool has changed its tactics eign banking and financing under ecutive
Vice-President; J. T.
The
in fgce of the present pressure. the Federal Reserve Act."
Skelly, E. H. Gunn, R. G. MeDuring recent months it sought revision follows a comprehensive Culloch, C. W. McBride, and W. A.

figure
since the Cuba
The accentuation of the

highest

to

Evidently,

price of gold

dollar

London

the

pressure

gold is likely to increase as
the I. M. F. meeting draws nearer.

brought

the second half of August,

buying

speculative

Financing

Midland

Limited

on

on

throughout

evidence

in

been

the

Buying pres¬
gold market, which

the

in

sure

ties

Distinction Ended
The

LONDON, Eng.

9

giving
but

of

the

He

David

succeeds

up

will

Partner

investment firm.
P.

Greer, who is

his managerial

remain

an

active

duties
mem¬

was

employee of the financial firm

ber of the t>maha office.

deposits. On previous occasions
Mr. Moss has been in the in¬
mal distinction between "bank¬ of Osier & Hammond in Toronto
speculative buying of gold was
when he was selected to expand vestment business for 17
ing" and "financing" corporations.
years,
any change in five- days are re¬
usually accompanied by such de¬
Since Edge Act corporations were the firm's operations into Western the last 14
mote.
Anyway,
this
technical
years in Omaha.
He
mand,
because speculators
and
cause merely accentuated the' ex¬
regarded under the former regu¬ Canada and he was made a part¬
hoarders financed their purchases
joined Francis duPont & Co. in
lation as either "banking corpora¬ ner of the new company. At first
isting trend which' had developed with the aid of Euro-dollars. The
1959
and
was
named
Assistant
activities
of
the
tions" or "financing corporations," the
i mainly in anticipation of the imWinnipeg
absence pf any borrowing forjthat
firm were confined to the sale of Manager in 1960.
some may *wish to combine these
i pending annual '• meeting of the
purpose on the present occasion is
International Monetary Fund.
activities, as permitted by the re¬ land and to providing funds for
•' "
tive,

though the chances of

even

'

.

AYear after year that meeting is
awaited with gloomy or pleasur¬
able

anticipation
case—of

the

such

adoption of floating exchanges or
widening

spread

the

their support points.

between

Even though

President Kennedy quite recently

rejected

and with the

more

once

utmost emphasis any

idea of dol¬

lar devaluation, there

is

widemark(et

a

spread feeling in the gold

i

that

in

spite

of

something

this

feeling

This

happen.

might

was

greatly strengthened by the dis¬
appointing balance of payments
figures published since the Presi¬
statement.

dent's

tive and
done

as

hoarding operations are

by financially strong buyers.

The

revaluation,

or

quarters

some

indicating that this time specula¬

major change

devaluation

as

to

according

—

some

in

interpreted

present movement

ditional
voiced

strength to

the demand,

in

recently

Central

some

quarters,

Banking

in the

presiimalby lend ad¬

market will

the

that

abandoned

be

should

price

level.

al¬

Why,

asked, should Central Banks

out of

go

its

find

the usual procedure.

that
both

It is possible

member banks

some

types

of

a

tion.

haying

corporations

large, general financial institu¬

may

Midland Securities Corpn.

want to merge them into a single

ited

was

corporation in view of the changes

Ontario,

made in the revised

Weldon.

regulation.

their, way to assist in

speculation and hoarding by plac¬
hoarders

of

gold

at

unlimited

—

established

in

1925

An

by

in

Lim¬

Douglas

affiliated

opened

a

branch

office

B.

stock

tion of Ross

Market Reaction Contrasted
('

'

,

V""

1

«

'

.'

There

1

Curiously enough distrust in the
maintenance
ficial
*

of

dollar

the

present

price of gold is

of¬
con-

fined to the bullion market. There
is very

little evidence of it in the
exchange market where

foreign

the dollar has been steady to firm

Whitman Sees. Branch
JONESBORO,

Ark.

—

Limited,

was

merged

with

the

Opens Hattiesburg Branch
HATTIESBURG, Miss.—American

order to facilitate the merger with

Liberty Planning Corporation has

the investment securities

division

opened

ington under the management of

of

Nanton,

Federal Building. H. W. McMillan

J. Lawrence Jones.

Limited.

Securities
branch

Co.

opened

has

a

office at 108 West Wash¬

Osier,

Hammond

&

(The operations

of the

is

a

branch office in the First

Manager.

low

gold

widely

-

assumption

held

President

staked

his

prestige

devaluation

might

of

on

has

the

his

[

de¬

unilateral

to

dollar,

he

consider

willing to

be

that,

Kennedy

resistance

termined

This

up.

be explained by the

can

while

A

bid

being

was

anomaly

all

member

the International
.

This would

an

Governments

of

Monetary Fund.

mean

in the Autumn
tion
a

that exchange

the

I.

not

cause

does

cause

price

any

On the
a

rise

a

change

weakness

of

other hand, it
in

the

dollar

The sub*

Allied Chemical

F.

that

Meeting.
the

termination

a

well

may

of

be

The possi¬

outcome
the

will

Common Stock

be

(Par Value $9 Per Share)

Pool

Gold

responsible for

Corporation

i

the

present demand for gold in antici¬

pation

of

a

in

rise

its

unofficial

price that would result from such
a

Price $51 per

decision.
Last

remained
of

the

Autumn

the

price

relatively

Cuba

crisis,

low
not

Share

of gold
in

spite

only

be¬

of intervention by the Gold

cause

but

the

also

because

Soviet

Union.

of

selling

This

year

Russian gold is conspicuous by its

absence.
Soviet

In

all

probability

Government

the

This announcement constitutes neither
The

an offer to sell nor a solicitation of an offer to buy these securities.
offering is made only by the September 4, 1963 Supplemented Prospectus, copies of
which may be obtained in any State from such of the undersigned as
may lawfully offer these securities in such State.
A ;

abstains from

Unless the Wash¬ selling gold oartly because it has
Administration makes it been borrowing Euro-dollars on

quite plain that it is opposed to a
rise in the dollar price of gold
action

237,512 Shares

of gold.

ington

even

M.

bility

by

of such

September 5, 1963

ISSUE

A repiti-

of 1960.

long way towards undermining

Pool

dollar.

NEW

experience might go

confidence in the dollar.

that anticipation

the

that

of

rates would remain unaffected, so

does

NOT A

picture. -Few people have

forgotten the unsettling effect of
the sharp rise in the price of gold

all-round increase of gold parities

by

is, however, another side

as

part
of

of

an

uniform

a

large

import

international

cause

devaluations,

the




it

scale

for

surplus,

hopes for

dollar

price

financing

and

partly

an

of

its
be¬

increase in

gold.

the

parent company in July 1963, in

Whitman

the price ject is certain to be argued out at

during the days when
of

the

to

in

Sheltori.

price?
f

American

London, Arcade Building under the direc¬

amounts

artificially

an

Miss.

brokerage firm, The Midland Co.

ing at the disposal of speculators
and

Greenville Branch
GREENVILLE,;

Liberty Planning Corporation has

that

and

gold should be

of

to

lowed

it is

of association in accordance with

Gold

Pool arrangement is a mistake and

the

mortgages on real estate, but the
business gradually developed into

vision, by amending their articles

Smith, Barney & Co.
Incorporated

Carl M. Loeb, Rhoades & Co,

10

(926)

The Commercial and Financial Chronicle

than

Updating Our Domestic and

it

would

covered

the

narrow

differential,

long-term

un-

it

because

curities

U.

been

held

partially compensating adjustment

assured

con-

Federal

The

President
and

attention

fiscal

with

policies, and

1 will

present international

domestic, objectives;

deliberately

our

credit level

rise

somewhat

free

censures

to

above

assessing

the

wisdom

associated

in¬

of

and
to

measures

bill

Treasury

other

and

For

the

ments

to

their

in

denominated

directly

benefits to the

change market,

balance of

do

enlarge

payments

not

cause

the

our

reserves.

kinds

to

domestic

the

of

in

differentials

between money

assemble

to

the

number, of

flows

sensitivity

capital movements

short-term

•

to

interest

rates

centers is difficult

and

to

respond

example,

tions

to

they

do
a

interest

not

hand,

to

in

S.

U.

rates

funds

to

are

re¬

financing

outflow

from

attract

invest

in

in

ments,

of

portion

buried

in

the

limited

very

in

does

strengthen the

foreign

exchange

kets and lessens the strain

mar¬

on

our

reserves.

Thus,
flows
our

affect

both

and

_

and

affect only the

affect

some

-

capital

deficit

our

These

reserves.

flows

ments

unmeasur-

flows

"unrecorded

is

trans¬

effects

short-term
In

only

-

considerations

term

U.

interest

S.

rates.

of payments.

U.K.

interest

in

short-term

rates

relative

■

abroad would have

the

reduce

to

U.

to

some

S.

those

tendency

outflow

of

U.

S.

short-term funds to foreign money

markets—perhaps
far

of

some

In

to

as

cause

these

addition,
rates

term

to

the

to

in<

rise

would

foreigners

so

repatriation of

a

funds

a

going

even

S.

short-

to

induce

tend

invest

U.

our

short-

more

term funds in U. S. money

market

instruments.

are

However,
in U.

not included

of

computation
rather

S.

as

and

deficit

as

a

but

pect,

we

net

was

a

lion

for

debit

January,

quently,

the
the

means

deficit.
attraction

foreign funds will

most

of

funds

from

the

hands

our

of

central

demanding gold from the United

to

of

respects, the impact of
capital

flows

serves

the

foreign

and

more

effects

on

on

our

exchange

re¬

important

our

than

official deficit.

ftlef

i

rates

credit

yields

or

struments

maturity in the

abandon-

ing its

policy

large

"Bills

February

first

January,

of its open

usually"

1961,

the

Federal

in

Re-

bought $2.6 billion of U. S.
securities

maturity

one-year

in

of

over

1961,

$1.8

we

of

become;

lending;
long-term in-,

on

permit

an;

total reserves,

above recent levels.
The Interest Equalization Tax
We need to moderate the

outflows

of

that

modest

a

interest
end.

the

form

of

believe,

we

in

will

But

which

balance of

our

rise

rates

this

short-;

capital

have contributed to

short-term

contribute

to

capital outflows in

portfolio

investment

by Americans, particularly in

new

foreign bond issues, are also large
and growing. These issues are at¬
tracted

to

our

markets

our

not

only

relatively low long-term

capital.

purchases have been in the 1- to

unequaled

5-year maturity,grange. The Fed-

and, of course, by the freedom of

Under

•

favorable

circumstances,

this

far

era^

modest rise in U. S, short-term

Most

year.

Reserve

also

of

these

of

are

capital

our

ket,

in

other

hand,

interest

reduces; the
the

if

accompanied

by

Euro-dollar

released

$767

probably expect some
compensating rise in Euro-dollar

availability

or

est

rates,

*

men^s against time deposits from
$ to 4%.

increases in long-term interis

likely

in

unrecorded

into

balance

transactions)

the

of

that

calculation of the

payments

,

interest

rates,

but

also

investment

markets

our

by

our

facilities—

from

the

all

other

deficit.

As

accomplish

equal

an

saving

in

but,

the other hand, the rise in
rates

foreign
U.

the
even

investors

pressure

though

induce

to

hold

this would
on

our

re-

it would not

statistical deficit. In addi-

our

tion,

reserves;

would

S. assets, and

reduce

cut

official

our

interest

some

discussions

ciates in the

with

OECD

our

asso-

in other

and

international forums, indicate that
the
discount-rate 'increase
may

well

have

foreign
and

on

other

its

beneficial

confidence

effects

in

the

on

dollar

their willingness to accept

to meet

moves

balance-

our

of-payments problem.

cash

financing
Since

there has been
billion

in

in

1960,

increase of $7

an

Treasury

bills

Impact

rates

the

of

flows

of

short-term

respond to differentials in interest
rates

after-the

cost-of

forward

has been taken into account.

A rise in U. S. interest rates
would

presumably

narrow

differential

between

foreign rates by

the

rates

be

S.

and

reduce

that

sure

ra

will

es

jec lve

covered

U.

should

higher

not

of

example,

relative
reduce
to

the

invest

U. S

in

in

the

U.

U.

S. rates
K.
would

demand

for spot Sterling
market and would

in

the

U.

reduce

the

supply of forward Ster¬
spot «Sterling
exchange

Thus,

rate

would

rate

to

ward

cost

course

the

interest
S.

tend

to

fall

and

the

forward

thereby reducing the for¬
discount on Sterling.
This decline

the

down

the

K.

rise,

the

U.

those

to

rise

a

to

of

of

forward

time

at

cover

least

would

partially

in

rate
some

the. narrowing, of the
differential, thus cutting

degree the benefits

from, the_inter.est.

rate,

to

the

increases.

can

we

with

our

domestic

expansion.

The record of the
past two years

maintaining

the

possibility

upward

pressure

short-term rates, with, at the

time,

reasonable

and stable

term
on

or

rates.

3-month

creased

the

1%

up

recent

to

the

ease

flow

of

funds

ducing

deposit

long-term

rates. The result of
rates has been

the

a

volume

tal

through
folio

funds

in

whose

in

State

and

have

debt

guided

Qf

years.

course,

acti0n

is

understandable.

past discount rate increases

traditionally been
attempts

to

restrain

bills

in-

time

of

policy

the

of

most

develop-

ments. Yet the rise in the
yield on

.rJrfqH'OiJjs"!

\0 i&oi'J

is

and

Presi¬

ings

maturities

of

borrowing
is

in

thus

rate

and

it

time

raising

restrains

com¬

the higher dis¬

short-term capital.
that

United

logical

a

a

to the

raising

or

the

measure to

while

in

The amount

graduated in such

panion

the

money

'

,

the

to add roughly 1%

as

It

have

do I

deposit ceil¬
the

of

cost

To the extent

the

outflow

of:

long-term funds, it has the inci¬
dental

benefit,

of

of

course,

in¬

we

creasing the availability of long-

interpret the increase in the dis-

term funds to finance real invest¬

count

ment in the U.

credit

generally.

However,

rate, on thq basis of
study and discussion of this

monetary

officials,

as

joint
it

objectives of putting moderate
ward

pressure

terest

is

rates

on

for

up-

short-term

in-

.balance-of-pay-

ments

reasons, while maintaining
relative
monetary ease. As the

to

S.

Ultimately, however, the solu¬

move

in implementing the

'.5

,

having

States.

associated with

could

our} own ex¬

which

capital

this

In

sig¬

fractional

a

three years.

equity

•

over'

,

the

long-

our

r

solution

count

concern

for

rates

damage to

the

in

even

long-term

and

monetary

policy

But

the tax

way

cost

be

objectives

management

past two

in

The

of

ac-

discount

rate fr0™ 3.to 3'{2^~neeud
with
the

inconsistent

that

nificantly.

excess of

ihe

payments,

securities

mortgages

monetary policy

difference

dent has proposed is a
temporary
tax oh U. S. purchases of
foreign

governmental securities and

The reCent

of

cate¬

we

In order to make

term rates would have to rise

seek

long-term debt instruin

significant

serious

us

interest

This advice

pansion.

port-

to

inevi¬

wish to stem this capi¬

we

export.

rise

flowing

them

cause

ments, particularly
local

will

long-term

our :

balance

pro-

interest

higher deposit

institutions

policies

outlets

rates

large increase/in

of

another step

yield

raise

rates if

into

major factor in

lower

with

the

field

Many Europeans have urged

a

higher
a

and

'

doxically,
have been

as

already noted,

as

this

gorically reject.

1961

three-quarters

monetary

on

But,

in

long-term debt instruments. Para-

declining long-

Treasury

about

of

same

monetary

even

From

off¬

effect,, of

outflow

short-term

conflict

continued

demonstrates
1 Frr

the

of short-term capital. But

o

lesser amount

a

Thus, higher short-term interest

funds

nations—as well

movement in this direction is

some

to

bank

on

savings and time deposits has in-

tion-the increase in

the Domestic Economy

on

that sizable portions

appears

these

own—that the capital markets of other countries should be

(4) The upward revision in the

creased

of

our

progress

deposit rates.
It

ests

tably be slow.

interest

nations
r

occurring.

out¬

standing.

maximum

controls

strengthened and broadened,

short-term

December

almost

We believe that it is in the inter¬

Treasury Department in

The

maturities.

not all of the reduc-

would

on

(3)

reduce; has concentrated the great bulk of

to

noticeably the short-term capital
outflows (including those hidden

mar¬

we can

general

any

any

rates

supply

,

rates, including the ceil- mllbon of reserves in 1962 through
rates; on time deposits, un-. a reduction of reserve require-

ex¬

to sup¬

>

is

it may well be
necessary to allow
free
reserves
to
rise
somewhat

billion in 1962, and $742 million by

steady

a

course

to

rise. 'To

to

there

for bank

or

of; payments deficit, and

than one-year

more

■

i

has

emphasis

so

.»




and

outward movement of short-term

serves

reason

the

in

of funds

set

i is

Reserve
purchases

market operations. Since

the

Since

stopped

shortof

however, there has been

the

rates—which

On

significantly

in

gold

securities of

short-term

for

zero

1963.

for

reason

term

Federal

Government

out

quarter

been

substantial

netted

more
on

balances

larger than

their

rise

ling.

short-term

The

serve

changes in

relevant to flows

the

also

States.f
some

short-

rate increase

have good

changed.

institutions,

which alone have the privilege of

In

(2)

flows and unrecorded transactions

tion

more

not reduce

andofficial

S.

U.

to and. from the U. S.—will not
be

of

Conse¬

statistical deficit, but it will divert

banks

has

recognition

which

of

Because

in

growing

inflation

made

$1 bil-

represented

flows.

The

moderate yields,

transactions,

portion

presumably
term

$600

about

unrecorded

significant

pay-

addition, there

of

increasing

an

less available

has been a fundamental factor
making investors willing to hold
long-term, fixed-interest claims at

re-

as

of

over

to

million in 1962. In

our

to

Canadian

that

cover

financing

in

However, unless the

are

pose

credit in the

our

treated

are

a

liquid assets

i

rates.

rates

our

payment

foreign

investments

rise

a

of foreign

response

effects of

rise

of

interest

addition, the effects depend

the

on

actions" component of the balance

A

(1)

capital

S.,

balance

our

reduction in credit

.

short-term

some

reserves, some

deficit,

convertibility.

capital

intermediate

framework of relative monetary adequate growth in

that

U.

amounted

U. S. money market assets, it does

have

capital

A substantial but

(c)

the

fleeted

noted above,

able

,

The recorded short-term

We

under conditions of

be

to

Voluipe-

enter

a

no

Four factors have contributed
rather
^is "twisting" of the interest;
by the ra^® structure'within a general'

Upward Short-Term Outflow

greatly increase the complexity of
been convertible only since 1958,; evaluating, the
balance of pay¬

currencies

with

as.,

impose.

Since

only

of

far

market

open

short-term financing,

on

Four Factors

short-term

of

indicated

is

through

by

ing

respond to changes in trade.

have

that

appears

"Twisted"

dollar

(b)

experience

Interest Rate

factors

and

most

reserves—so

through

necessary;

judg¬

ease:

inflows

does

rise

a

bank

have^ purchases

which

some

flect the needs of trade

that

for

generally judge the

movements

our

other

lending

interest

flows

and

the

foreign

more

expertise

greater than

on

cuts

but

the Federal Reserve

as

judg-

the

by

available statistical studies.

a

immediate drain

it

installment

sumer

deficit but it

a

possible changes

exchange rates,

extent

must

a

for

many

some

related

deficit,

deficit

short-term

caused ,by speculative considera¬
in

ex¬

To the extent that

On

We also have considerable evi-, of total
dence that rates charged on con-; possible

statistical
made

long

provides sufficient steady growth

Capital

(a)

reasons,

the

been

As

one-

half of 1%.

not show up as a reduction in our

evaluate,

other than interest differentials—

fpr

not

foreign

outflows,

reserves.

concerning

dence

the

to
do

reduce the pressure on our official

Walter W. Heller

evi¬

capital

offi¬

that while they

so

our

any

statistical

economy.

The

affect, the

of

special

than

rise in interest rates reduces these

and

have

as

these persons

our

market

and

Ipe done.

mortgages have fallen about

limited

-

deficit but have

outflows

dollar

-

formal

ing these matters. It

rather

on

policy

,

Moreover,5 dollar-

reserves.

the

of

supplemented

them

almost

reserves

our

possible

costs

being.

income

dollars

and
officials that they intend

been declining and that both con-| long-term
U.
S.
Government;
ments
of responsible
persons
sumer installment and mortgage, securities—and the
Treasury rein-,
whose
daily contacts with the!; lenders
have liberalized" terms: forces upward pressure on shortforeign
exchange
market
give other than interest rates,
term rates to the extent

Japan, countries which hold incre¬

Euro

the

risks

be

of Canada and

reserves

been

gold

available and the

such

studies

example, outflows which in¬

crease

cial

very

against

and

view

interest-sensitivity

gold, increase

must

weigh

for

official

our

on

of data

volved,

present arrange¬

little immediate effect

rates,

carefully

forces

have

Treasury

ah4[ local governments,"and home- open-market operations to avoid
-building have all declined. The any reduction in domestic credit
yields on high-grade corporate availability and any upward pres¬

make

complicated relationships in-

Fed

require

long-term yields

with trade

entirely

market

one

corrective

In

amount

maintain

to

and

rates.

of reserve growth."

short-term
open

Dr.

the

may

both

bonds and State and local govern- sure on long-term interest rates
mental, securities have declined while the economy operates be¬
be expected from a modest in- by 0.1 to 0.2%, while the yields low
capacity without inflation."
crease'in our short-term interest
FHA-insured and conventional We believe that this can

payment

warns

nor

after praising

pace

complexities

,by

Balance-of-

"I

and foreign exchange reserves to

gold which he avers is "an inadequate and undependable

the-' discountf rate

interest

of

levels"

recent

international

source

raise

unquivocally

liquidity which would keep

instead of

taking

deficit

of

protect the dollar, envisions need for new world inter¬

national

creasing

balance

that neither bank lending rates

so

rise;

ments

In

views

recent

"twisted" interest rate pattern

deflationary and slow-acting and,

:

the

Fed,i to deal with the payments-deficit without sacrificing

"free; reserve to

~

to

international liquidity problems and solutions.

worlds and

that

accorded

explains Administration's "determined" effort, in cooperation

the

our

be

Kennedy's economic adviser regarding domestic monetary

and near future

Heller

should

above

his

financing

difficult any estimatipn of the effects on our balance of payments

Advisers, Washington, D. C.

More

in

Payments Message:

stant, while the cost of long-term- to do
everything possible through
for corporations, State debt
management

in the cost of forward cover.1

By Dr. Walter W. Heller,* Chairman, Council of Economic

Thoughtful

a

President said

bank

lending rates have remained

least

at

se-

importantly,

0.2%.

cause

Thursday, September 5, 1963

about

would set in motion market forces
would

.

to

which

World Economic Policies

.

Government

S.

has

.

tion to

our

flow—both

problem of capital out¬
direct and

portfolio—

lies

elsewhere.

and

vigorous expansion of

mestic

economy

vide

market

a

It lies

in

which
here

Continued

a

strong

will

for
on

do¬

our

the

pro¬

full

page

19

-?

J Or.'.

>i"t si;'

.

.•

*fii..

'•••!?•

sob

-rny> Lubi'/ihci nl; ui

^-j-isqq

Number 6296

198

Volume

.

.

The Commercial and Financial Chronicle

.

(927)

disarmament

recently

The Market... And You

however,

stands

WALLACE STREETE

able

and

this

being

dividend
third of

a

a

century.
,

apprehension over the ponents.

The normal

approaches

time

but

the

for

one,

this

industrial

Dow

only

not

was

absent

conspicuously

noted
issues

year,

average,

able to bracket the

was

the

in

technician

market

that there

Day

Labor

when

market

stock

One

five

were

index

the

of

that

the

rally 70 to 100% to reach

prices they

peak

1957 on,

from

had

Y

"

-

composite

500-stock

°

1

Standard

the

around,

Poor's

&

aver¬

posted

to

including American

fact was
already at a new, all-time peak
after nudging through the level as
trading resumed right after the
age,

of

matter

a

as

the average sharply

harder

has

tially

in

reading

highest

history on Dec. 12, 1961, while the
didn't top

Dow

out until Dec. 15

that year.

of

there

Then when

overhead

was

in its

resistance blocking the Dow

bid
S.

for

&

1963

new

a

the

high,

easily to

moved

index

P.

a

high for the year before the

new

barometer

Dow

able to

was

con¬

below

Good

the

of

since

Meanwhile,;

is

that

good

ahead

are

they

work

have

previously

stages of

best

the

in

early

bull market. And with

a

General

their

done

Motors

prominent at

and

Chrysler

highs, the time

new

to revive the axiom

propitious

was

though the market itself did

onlly

So there was

that

be

trial

indus¬

registered by the

guessing

The

average.

was

somewhere

aimed

much

pretty

between 765 and 780 although, as

technicians

some

quick

were

to

point out, if all the stocks in the
retraced to their highs of

average

the last half dozen years,

read¬

a

the

mant

auto

all

to

shares

intents

and

generali¬

that it is

is

their

do

best

stages of
will

it

the

the

work

steels that

iq

the

last

take to

revive

interest

steels, they certainly

in

not

are

indicating that this market is

in

its last stages at the moment. But
here

again

United

caus¬

Since the market seldom moves

of Bethlehem which is the second

1960

shown.i

wasn't

with such unanimity, there

talk

much

too

immediate

the

readings

of

future.

But

been

in

run

there

1949,

handful

a

ever

have

predicting

read¬

"eventually,"
and they are sure to be in action
again when the industrial aver¬
age starts forging into uncharted

ings

Picking
since
few
the

an

exact reading on any

is obviously

unusual
the

of

risky chore
by only a

a

moves

alter

components can

story radically. The goals gen¬

erally

were

the

when

considerably higher
topped out in

range

prevalent today is

roughly comparable with the esti¬
mates

being

until

yardsticks

the

are

1961.

and

confidence

investor

measure

But
developed to

in

made

insatiable appetites of the in¬

stitutional
ures

thin air

buyers,

any

such fig¬

plucked out of
based on suppositions.

or

has

set

ability

to

break

plain is that the market
historic first
in its

a

in

recover
so

short

the debacle of

Nov.

23,

from

a

time.

a

major
After

1929, it wasn't until

1954—a

quarter century

later—that the industrial average

the

reached

|

30 stocks
tions
j

comparable

of

level

381. And by. then only 19 of the
were

having
Dow

years.

the same, substitu¬

made
Jones

through
&

Co.

the

peak

a

also

"statistical happenstance."

dip

a

to

in

1961

showing

good

a

company's

to

its

prove

ability
margin

profit

particularly in its

aerospace

im¬

work,

is low. It reported a good increase
in

per-share results for

half

this

of

the first

but

year

this

their

that

some

apparent

in

brice

the

discrepancy

individual




is

com-

rise,

oil

stocks

during

prices,

Coast

have

the

first

with

and

again

trend.

half

wars

retail

only

the

on

mid-continent

are

year,

based
now

of

most

the

on

coal

a

changing

be

New
FT.

that is

to oil, growth

opened

the

of

company

Grumman

to

showing for this
margin
sents

an

over

with

year

1.8%

of

projecting

are

a

that

and

improvement

which

upset

was

the

profit

development

a

Eversharp

least

at

of

that

rarily after it had been forging to
all-time highs. There were diver¬

gent

opinions

and

Gillette.

the

jump

chance

about

Gillette

to

improve

with

results

its

market

the

brink

stantial
its

of

reporting

contribution

product

has

the

to

made

possible.

Moreover, it could show
in

trend

the

sub¬

earnings
down¬

a

promotional

heavy

do

necessarily

not

those

with

cide

They

any

Gillette is at the point where it

has

to

make

heavy

expenditures,
its

profit.

projected
last

year.

start-up

be

reflected

lower

year

But

has been

years

to

Gillette is being

So

to

earnings this

the

and

yet

are

promotional

per-share

than it reported

Gillette

over

formidable

a

the

mer¬

chandiser and had gobbled up no
less

than

razor

until

clear,

the

of

the

picture

becomes

more

The

those of the

as

whose

persons

the

from

appear
entitled

and

names

records

unclaimed

to

of

the

in

property

AMOUNTS

Airhoppers Gliding'
Club

Real Estate
-i

jp

either

blade

of

^

Soaring

&

known

Association

National

Hotel.

take

of

amounts

DUE

ON

as

con¬

estate

their rela¬

and

Wallace

Brown,

on

Real

Estate

Syndication and

Co¬

"Distinguishing the Real

Bernard

Aidinoff,
will

real

of

Sullivan

discuss

tax

trust

estate

ac¬

quisitions in exchange for stock.
Frederick

Higginson
cuss

Penn

482

Broome

St.,

Hq.

|

32519344

E.

H.

Schroeder,

Corporation

"Use

discuss

Defense
much

issues

protracted

haven't

been

demand

for

Paul

Co.

Bn.

the

of

Trust

Connors,

Helen

Alfredo

Horn,

Miami

Wm.

a

long time and the possibilities of

P.

Park

A.,

20

Chester

( Lau Mach.

Ledercr,

Cyclical

ditions."
Other

Business

v

&

O'Neill

Stern,

.

,

Smith, Larry

wilR be

Smith &

Co.,

Larry

New

Seiden,

of

N.Y.

St.

J., Estate
Adm'x.

N.Y.

1844

Gucrlain

Battery

St.,

N Y., N.Y.

Allen

N.Y.,

PL,

N.Y.

St., N.Y., N.Y.

Unknown
Unknown

Realty

Corp.

1347! Bway.
Unknown

Charlie V.

G2

Louis

Zaubcrman,

Manhattan

C/O

Sigmund

AMOUNTS

HELD

NEGOTIABLE

OR

Co.

Pen

L.

Julius

OR

CERTIFIED

CHECKS

Unknown

Bway., N.Y., N.Y.
E

176 th

St., Bx„ N.Y.

Unknown
Unknown

Unknown

,

.

105

Store Inc.

Court

110

S

128

.

Delancey

34

David
State

12th

Park

St.,

Bklyn.. N.Y.
Vernon, N.Y.
N Y., N Y.

Ave., Mt.

St.,

Row,

N.

Y.,

N.

Y.

Unknown

Commission

Tax

N.Y.

Unknown

Revenue

Clarence

10<t

Dr.,

790

Inc.

Internal

Heyman, Bessie
Jeraci, Frank
&

Riverside

111

Candeuh, Morris
of

Ave., N.Y., N.Y.

Werthcimer,

Mrs.

OWING FOR THE PAYMENT OF

INSTRUMENTS

"Spec."

I.con

Benjamin

Secry of

%

N.Y.

N.Y., N.Y.

N.Y..

Unknown

Worsham,

5

St..

Bway., N.Y., N.Y.

11

'Tr'

Morris

Bomont

N.Y.

of,

L.

Collector

28,

Bklyn., N.Y.

St.,

N.Y..

11th

11

Restaurant

Yassky,

N.Y.

Ave..

Unknown

Jules

Stuart,

Unknown
Unknown

Collector

Video

>

Unknown

Unknown

Silverman,

Tax

11th

Bway.,

5G8

Italy

M.

State

America, Bos¬

Vernon,

N.Y., N.Y.

St.,

Water St..

28

Irving

Silverman,

Schiller,

York; Henri Bourneuf, Real Estate

v

Unknown

Douglas Grant,

Public

vv;/-

.

Park

138 W

M.

John

John

Gadson,

ir

speakers

^

St.,

N.Y.

Unknown
889

Association,

Fishbach,
v

Mt.

Blumcngarten,

Columbia

2GG

for War Orphans
Rellis, Eugene & Judy

63th

W

1225

Comm.

Relief

Scott,

Orchard

108

Eng. Co.
(Incompetent)

W.

Monopcx Inc.
Nisscn, Elaine J.

of

Con¬

Flushing,

Louise

Edward

Axelrod,

to

St.,

St.,

Nathan

581

Real Estate Market and Its Rela- s

N.Y.

Unknown

C/O

George

Elizabeth

Investment

Bronx.

"Dec'd"

of

Adm.

GG

Bayers,

"The

N.Y., N.Y.
Phila., Pa.

St.,

Lawrence

Kossatly,

will

oh

St.,

St.,

|Gist

Jackcl, Celia, Estate of
Jackel, Morris, Comm.
Knox, Isidore

Economics, New York University,
speak

I Kith

51th

Unknown

Estate

Horn, Edward

Corcoran,

Professor

Backman,

Inf.

Unknown

porations and Syndicates."
Jules

353rd

Unknown
Alves

Theresa

Form

N.Y.

N.Y., N.Y.

N.Y.

89,

W

3510

Rosenfeld,

Metropolitan

Bklyn.,

St.,

1st

5G5 5th Ave., N Y., N.Y.
(
Knickerbocker Hotel, 120 W 45th
N.Y,, N.Y.
\'Y,v .■■■ v,vY;..Y ■

Inc.

S.

Rhynders,

Television Inc.

1)2-15

172nd

St.,

Jamaica, N.Y.

ton; Abel E. Berland, Arthur Rub&

Co.,

Chicago;

George

A.

Kuhn, Jr., Klein & Kuhn, Indian¬

John

W.

Baird,

Baird

&

Warner, Chicago; Ralph B. Mayo,
in

Estates
# 1

Lee

by Publicly Held Real Estate Cor¬

apolis;
Outstanding Defense Issue

Country

dis¬

will

the outlook for public offer¬

William F. Purcell,

St.,

Phil,a., Pa.

Maria

Charles

Colbert,

Rey,

ings of real estate trust securities.

tion

be

more.

N.Y.

194

Lopes, Eduardo Andre
Markowitz, Mildred

Cromwell,

aspects

Clifford

Greater

Assistant

Syndicate."

M.
&

below

to

Elsie

Diaco,

Estate Trust, the Corporation and

predicting the market high,
of guesswork.

of

DEPOSIT.

APO

operatives, New York State, will

the

forth

set

are

banking organization
twenty-five dollars or

of

L.I.C.,

Aranofsky
& K Company Inc.
Bernstein, Irving PFC

Real

The

real

up

General,

for

Bureau

loff

is largely a matter
An

will

Attorney

speak

addresses

above-named

C/O A. Dawydorf, 3021 48th

B

o

the

producers

1617

Aranofsky, Joseph i/t

"QUQ 6/011161*61166

The

last

Inc.

David

Investment Trust of

evaluating

at

direction

only.]

"normal"

blade market. In any event,

American
with

70%

office

the

116 Fifth Avenue, New York 11, New York

time coin¬

"Chronicle

the

presented

are

author

at

of

Management Inc., New York, will

expenses.

under

OF NORTH AMERICA

sharply.

jump

[The views expressed in this article

a

penetration. And Eversharp is on

branch

a

COMMERCIAL BANK

margin could make the per-share

Eversharp

Eversharp has had

on

has

one-

last year's results. And

David Clurman, special

tempo¬

In¬

Corporation

UNCLAIMED PROPERTY Held By

repre¬

tionship to investment.

market

gains

APPEARING AS OWNERS OF CERTAIN

significant improvement in the

a

market conditions

in

though the

profit

NOTICE OF NAMES OF PERSONS

$3.50 per share

a

ference

Gillette

of

<mar£in °f less than 1.8%. Students

the

by

:

Joseph M. Huffman.

Cohen,

entry

-

Iowa—General

Sales

Elmhurst

Waldorf-Astoria

Eversharp

•

Branch Office

DODGE,

switching to stainless steel to meet

versus

j.

half.

S

Gillette

in-'

Service

wil slow down during the second

cur¬

to

Hemisphere

economy

over

even

year-to-year rate

E

Added to the picture was a late

the

an optimistic atti

tude is warranted

133

phenomenal competition from

dividend

industrially-

Eastern

Broker,

British maker.

several

prosnect,

vestment

With

restrictive'

factors

price weakness

developed

With

in

believes that

238

a

moderately priced
earnings than the aver¬

and

creases

temporary situation.

a

performers, they

more

favorable

many

however which may lead the
rent

of

disastrous

the

upset

There

good

internationals,,

likely to be avoided this ;
basic growth factors still in

303

shares

S.

espe-

firmed

1962, but recent price
West

than

•

taxes

effect,

points

the

industrial.

age
new

values.

gasoline,'

compared

still

relative to

the

popularity.

over¬

more

in the U.

been

Clcmente,

the

are

stocks, and

are

in

restored

product

Denver

Real

Estate

Report of unclaimed property has been, made to the State, Comptroller
pursuant to Section 301 of the Abandoned Property Law.
A list of the
names
contained in such notice is on file and open to public inspection at
A

the
of

principal

New

York,

persons
In

Investment

Association; and Boyd T. Barnard,.

Jackson Cross Co., Philadelphia.

office of the bank, located at 146 Fifth Avenue, in the City
New York, where such abandoned property is payable.

property will be ptaid on or before October 31st next to
establishing to its satisfaction their right to receive the same.

Such, abandoned

the

it

shall

thereof, such
State Comptroller and

succeeding November, and on or before the tenth day

property will be paid to Arthur LeVitt the
thereupon cease to be liable therefor.

unclaimed

The

has

profit

a

for these

year

particularly

jump

growth

institutional

to

1963

which,

true

itself

labeled the return to the previous

after

key

are

continuing

a

The Boston-based Service
points
that although oil

their fall conference Oct. 14 at the

in

Historic First

A

and

blade makers who have been

razor

expenses

What is

bodies

to

i
Comm. for Joseph Brown
Carroll, Francis M.

largely

are

the

the

truck

out

Estate Investment Funds will hold

average

just shy of 735. In fact the

1961

765-780

work

age

space

of

in

was

territory.

run-up

is

That

The only play centering on steel

recently

1,000

around

1961.

continuing

demand,

of the two steels in the average.

a

its long,

since the market started

historic

on

not in

at least

that high,

plane

and

of

Steel

States

topped out in 1959 without

ing any Concern in the markets of

would[

900

above

is

bull market. Whatever

a

be

well

ing

expanding
and

purposes.

zation

dence

slightly

en¬

a

double that

of close to 20%. Together with evi¬

cially bellwether

boats. Its operations

fourth

dor¬

were

The other side of the

And

Street.

where the ultimate top

was

will

item to

one

Wall

in

debated

while

impressive

an

is

Grumman

from

range

pleasure

when ithe motors are posting new
highs since history has shown
that

planes

corporate aircraft and includes

to

that

scored

1965.

variety of operations

a

Report

The Boston-based Service

once

right well between 1955 and 1961

be

in

gaged

cliches

market

pet

marketwise,

|

What 'Top?

prototype
'to roll until

slated

10%

markets

have

■

t

the

even

aren't

time

gome

woiTt

to

ings

represent good

for

however,

international

out

despite

work,

8%

businessmen and investors reports
that first-half oil industry earn¬

still

Motors

the

revived

was

times,

And

interest.

the

■

growth in demand for oil of about

Investment

latest

But

TFX

column

substan¬

they

of

its

group

making

ones

peaks

Times

One

that

even

firm the action.

issues

merits

investor

aluminum

rather

its

reached

in

the

and

the

over

TFX

in

and

the

commanded.

ahead of the Dow
consistently. It

been

Industrial

contract

increase

successfully

highs than in

new

the

favor

Projections of

seas

Business

Whatever benefit there will be in

since it is far

suggest

commitments

holiday shutdown. S. & P.'s aver¬
age

to

in

that award has not been calculated

c

age

participating with

official debate
have to

high

new

is

Dynamics

fighter-bomber

would

readings Tobacco, Bethlehem Steel, Alcoa,
for
the year and stand only
a Westinghouse-and United Aircraft.
hair away from the all-time high. Any sudden shift in the fortunes
The most comprehensive aver- of either would be reflected on
with

holiday

Grumman

oils.

Earnings Seen
United

Service

General

trends

Record Oil

un¬

profit¬

a

uninterrupted

paying operation for

done

Grumman,

in

out

certain business for

BY

have

little to enhance them.

11

12

The Commercial and Financial Chronicle

(928)

Cuban

the

expropriation,

never¬

.

.

Thursday, September 5, 1963

.

Williston, Beane

Mitchell, Hutchins

Effective

CHICAGO, 111.—John P. Henebry

and

POTTER

C.

Henebry Named by

Nothing in the foregoing is in¬
tended by this department to pass

BY JOSEPH

Four Officers for

operations.

FUNDS

MUTUAL

theless

impressed by cash flow

is

net

earnings

domestic

from

son

judgment

and

Prices

In these days of widespread popu-

textiles

on

sugars,

or

but

merely
to
underscore
the
character, intelligence and indus-

Values

in the early stages of their try of the fund fraternity.

were

In an

Telephone long-term uptrend.
age of do-it-yourself, a good many
& Telegraph, it is easy to forget
it is to the credit of fundmen people
have learned that it is

larity

American

for

easier to make home repairs than
to manage their nest egg. There
guessing game that asked whether of their unique judgment. Those |s n° easy home kit to individual
this was the meeting at which the who don't are not likely to remain investment management. . Even if
longtime $9 dividend would be re- long as stewards of other people's there were, it would still be a
duced. And the recent buoyancy money, a chore for which they are full-time job.
that there were years when Wall

Standard

Of

of

many

in

engaged

Streeters

of

prompts

Jersey

these

people

same

to

this high-

fact that

the

overlook

quarterly

a

that

values and

understand

they

not afraid to act on the basis

are

their

In

rewarded.

handsomely

investor who

The

ranks will be found the men who
buying

were

price
not

stantial
not service

stocks

railroad

dale of Atlanta will
Presidents

115

will

date

same

La

&

director

Salle

of

Street, members of the

New York and Midwest

Broad¬

Assistant

Secretary

Clement

of

formerly

were

Exchange.

John

S.

E,.

A.

Evans

the

and

HEWLETT, N. Y.—Victor Schaffzin

firm.

officers
&

Forms Victor Sees.

Kable

R.

Vice-President

become

All

Stock

York

New

the

Inc.

Williston

appointed

New York City, members of

way,

On

become Vice-

R.

Incorporated,

Beane,
the

J.

of

been

has

Co.

of

Company,

formed

with

Victor

pffices

at

Parkway to engage in

of Atlanta.

Securities

322
a

Hewlett

securities

business.

professional
of the

for

is

has

Corporate Development by Mitch¬
ell, Hutchins & Co., Inc., 231 South

Savannah, and Irvin T. Rags-

sub-

a

pays

of

Sept. 16, James T. Bee-

of Augusta, Arthur B. Simkins

unaware

so long ago,
a commitment dis- value
either, else mutual funds
friends. Even missed by their neighbors as a would not have attained their
mighty General Motors, a chronic kind of fiduciary senility.
present eminence,
money-maker and offering a fat
Lagt mon^1

grade investment issue only a few

had

ago

years

no

philadelphia-based

yield, went1 through a long period
Of neglect.

Wilde

once

waspishly

observed:

"There

know the

price of everything and
of

value

This is

lions

of

whom

nothing."

investors,

not

to be found each work-

are

ing day in Wall St
all,

Main

St.

Polaroid
ness

of

few

a

it

wasn

LaSalle St.

or

the

t

on

short

went

who

man

of

International

and

Busi¬

those

issues

Machines

when

Fllrir]c

rfYLp

goes

long

a

to explain why

way

the mutual funds have prospered.

early August, Delaware Fund
it

disclosed

stock

common

Stevens,

textile

stock

to

But

the

of

P.

a

for investment

distant

the

on

Fund

the

fiscal

on

net assets

791,096,

$8.63

or

Principal changes
quarter

were

a

share.
$279,-

Three

share.

a

$321,-

were

share.

a

in the

phone

elimination

and

Delaware

tional

tech-

*

incorporated

Income

$147,762,$6,

share

Compared wifh

man-

equaI

where

made fibers have become increas-

ingly

important

their

and

dling demands research,
nology and

new

han-

at

They

tage.

forcing

rising labor costs

see

installation

of

expensive

production equipment, which
quires large volume.
a

"balanced"

mutual

fund.

Sold

only

through registered investment dealers. Ask
investment dealer for free prospectus,

your
or

already
tions,

BULLOCK,

LTD.

23%

Established 1894

cf

NAME

Street

totem

s

denizen,

fellow.

of

ADDRESS.

the

free

men

before

from

est

of

across

an

the
it

again.

mings
New

This largits

the

X.

associated

the river had

position'

F.

Co.,

&

York

York

Manager
conducted

in the

visor,

the

"In

aspects

of

12:30

even

of

ad-^

Management,
as

life,

in

most

things

are

seem."

management, taking note of

office

Mr.

Kane
own

growth

"Horseback Ride in Foothills.

formerly

8:00

P.M.

Dinner.

+

WEDNESDAY, SEPT. 25, 1963

City, Gerald

Co., which has been

9:00

A.M.

Men's Golf Tournament—18-Hole Course.

9:00

—

J.

A.M.

Ladies' Golf Tournament—9-Hole Course.

9:00

A.M.

the

Markham

a

* Fishing

Trip.

and

Other Sports.

.

2:00

P.M.

S.T.A.N.Y. Cocktail Party.

7:00

Building

P.M.

6:00

branch

P.M.

3:00

Brad-

C.

Air Force Academy Tour or

P.M.

Outdoor

:!:Skeet

Pikes Peak Tour.

Shooting.
Steak

Dance Lessons.

Fry—Square

THURSDAY, SEPT. 26, 1963
1

••

'

•

\■

..

A.M.

12:00

N.

'

.■

,

•

-

■.

An

investment

a

Ladies' Bridge and Gin Rummy

P.M.

P.M.

request

New York
m

Atlanta

Meetings
T.

are

Chicago

Los Angeles

—

San Fraticisco

•

of Prizes

and

Tournament.

Presentation of New

C.

on

Items

at

Participants Expense.

cordially invited to attend the National Committee

Monday and Thursday mornings and the S.E.C. and

Forum, Thursday afternoon.

Reservations
may

——

Awarding
*

Ladies

Lord, Abbett & Co.

|§

/•

Officers.

O.

80 Pine Street, New York 5, N. Y.

••

Dinner.

P.M.

company

upon

'*

Cocktail Party.

9:00

reasonable current income.

Prospectus

•

S.E.C. & O.T.C. Forum.

P.M.

seeking
for its shareholders possibilities
of
lohg-term growth of capital

m

.

Ladies Luncheon & Style Show.

P.M.

7:30

Fund

.'

National Committee Meeting.

6:30

A Common Stock Investment Fund

.State.




Cheyenne Mountain.

investment

Address.

'

Tour of

3:00

and

■

Chicago,
Securities

2:00

Name.

■'«

of

Bank

Cocktails at Garden of the Gods Club.

Morse.

quality.

DISTRIBUTORS GROUP, INC.

Vice-President,

Wendt,

P.M.

10:00

Mail this advertisement.

City.

B.

National

P.M.

through seasoned

cfc

P.M.

under the direction of Samuel V.

stocks selected for

their investment

Invited)

6:00

pos¬

common

are

3:30

investing

sibilities

Hershberger, Assistant Trust Officer,

as

-

fund

First

The

trading

Exchange,

Co. has opened

in

Officer,

Committee of the I.B.A.
2:30

J* C. Bradford Office
&

Trust

About

Alexander,

R.

Chairman of the Municipal

Street,

unlisted

GULFPORT, Miss.
ford

Know

William

Luncheon.

Cum-

Albany

business in New York

-

Should

Mr.

and

First

V

mutual

P.M.

become

I

for income and

Woman

Planning,"

Tennis Tournament

investment

investing,

Break.

Every

"What

Presidents Breakfast.

Affiliate

Coffee

Speaker: George
has

GROUP SECURITIES, INC.
A

Officers &

National Bank of Denver.

seized

frequently not what they
Fund

A.M.

islands.

Delaware

other

STOCK FUND

Communists

fund's

says:

Ladies'

Vice-President

dissolved,

But

COMMON

4

his

appeal

power

Past

A.M.

VV 1L11

Bregman,

the

department.

;V.

First National Bank of Denver

Stock

of

'

Night.

SEPT. 24, 1963

A.M.

10:00

City, members of the

F. x. Kane &

little

Carlo

William S.

Kane

with

Sugar shares

the

Monte

8:30

1

Gerald

had

THE

TUESDAf;

CUHimingS
c-'

had

following

\f:

Dinner.

10:30

Castroite revolution.

precious

P.M.

10:00

JL)I*6 fflTlctll.

sugar

lost

Broadmoor Lake.

Sponsored by General Motors Corp.

tq

New

refiners

on

Speaker: Dr. Kenneth McFarland

t

cXIU. XY.CH1C

passed,

was

equity

operation

before

P.M.

(Gentlemen

at

was

American

Cuban

describes

com-

August

in American Sugar Co.

booklet-prospectus

Cocktail Party.

Flpr*9lrl T^oriP

that

so

output,

the word

completed

'

P.M.

Estate

liquidations,

it is

faded, Delaware
This' time,

Ice Skating Party (Prizes will be awarded).

8:00

$9.39

Activities and Games

P.M.

T

Motor Co.

pole than the Worth

then

Yet

or

P.M.

6:30

year

30> 1963

.

National Committee Meeting.

1:30

William T. Gossett of Detroit
^as t>een elected a director of
The One William Street Fund. He
is a former Vice-President, direct°r an(* general counsel of Ford

If there is a lower man on Wall

St.

SEPT. 23, 1963

A.M.

consolida¬

people,

Dinner.

in 1940.

pared with 8%

ONEJVALL 1ST REET ,_N EW _YORK 5

to

at¬

Subject: "Leadership that Leads"

1960 the 10 largest companies

controlled

CALVIN

re-

those

to

4:00

per

a

...

P.M.

10:00

$120,595,435,

share

a

on Apr

'

These forces

and

mergers

the Delaware

say

by

mail this ad to

led

have

$9.31

or

$i45)643,352,

and

share>

tech-

disadvan-

severe

a

earlier
a

$890

Recognition

tending their first Convention.

equipment, thus

new

placing smaller under-capitalized
companies

to

the

at the

Colo., Sept. 22-26.

Reception—Special

re-

taled

industry

Springs,

held

Registration.

MONDAY,

Fund

en-

They

announced

*

cyclical

an

Colorado

has

Convention to be

P.M.

8:00

*

ASSOCIATION

Association

N.

6:30

Tea.

over-capacity and subject to wide
visage

Hotel,

12:00

ports that at Jul„ 31 net assets to_

fluctuations."

Traders

SUNDAY, SEPT. 22, 1963

com¬

equity

of

Security

final program for the 30th Annual
BroadmOre

nologically backward, plagued by

Securities Company

National

investments in Burroughs and Na-

textile trade is "fragmented,

NATION-WIDE

The

holdings of Rochester Tele¬

mon

SECURITY TRADERS

NATIONAL

latest

increase in

an

to-

were

earlier, assets

year

issue with the view that the

take

that

rePorts

year,

taled $320,100,492, or $9.59
a

is

moon

Worth St.

men

Boston

of

Fi-

touch

wouldn't

nearby

the

J.

NOTES

July 31, end of the second quarter

of months earlier, assets
synthetics. 255,139, equal to $9.64

out

and,

the

purposes,

in

a

N ST A

_

producer

and

and

in

District

nancial

closer

position"

fibers

men

"completed

diverse

a

natural

Most

had

Ppnnrf

,

U.I1U.Q XVcpOI 1/

by

its investment advisory group that

In

fair assessment of mil-

a

After

people who

are

judgment

of

independence

As Oscar

the

Delaware Fund dem0nstrated that

and

information

regarding

Chicago,

transportation,

etc.

Sincere and Company,
111., who is Chairman of the Convention Committee.

be obtained from Edward H. Welch,

.

Volume

V

6296

Number

198

.

The Commercial and Financial Chronicle

.

.

(|929)

Smaller

BANK ANB INSURANCE

STOCKS

This Week

Why So Many Fledgling
Insurance Companies?

Insurance Stocks

—

terest

CASUALTY WRITERS—
Recent

semi

annual

-

reports

company

insurance

to

losses

perm it

Policyholders'

ing

proximately

and

for

fire

nation's

the

casualty insurance writers do

not compare favorably with those
of

the

In

most

first

six

months

the

cases

but

months

generally

the

of

well off from

were

Virtuall^

1962.

companies
for

the

first

with

year

specialty

major

the

all

in the

well

were

months

of

the

of

the

writers.

underwriters

than their brethren that

ily

committed

lines.

are

the

to

The latter

Casualty

c a n

of $40

excess

stock

valued

million.

in

latter

The

Accident

&

Casualty

Company

of

Insur¬

country-wide

by

losses

incurred

tended

accident

and

make

coverages

up

large portion of each company's

a

volume.

~

■

•

•.+

Weather

months

is

the

of

insurance
sition

for

Automobile

year.

still

was

most

showing

losing

a

propo-*

underwriters, but

definite

signs

of

Net

H

premiums writteh/Tpsd;> ahv
of .7%, benefiting from"

average

higher \ rate
panding

in

underwriting

due

the

entirely

loss

unsatis#

the increase':

as

the

recent

10%

its

f f

o

s e

between 5%

t underwriting-

Six Months Underwriting Results

19fi2

1!)<>3

(Fire)______

Allstate Ins._______
Boston

Ins

__:

Continental

Cas.

Continental

Fireman's
Glens
Gov't

—

Deposit
Fund

Falls.

+
—

—

Ins

Fidelity &

-

—

______

Employees

Great American.

+

Co.

of

Maryland

N.

A.__

Ins._

Phoenix

Ins

F.

Western

C.

S.

F.

&

2.6
4.2

M.

&

S.__

—

—

G._____

+

The

years.

includes

property,

undoubtedly continue into the in-'
future-in

definite
obtain

adl-line

the

desire

insurance

to

under¬

writing facilities and the savings
inherent

and

through

the

automation

volume

economies

permissible

operations.

+

in

■

United
to

States

month

of

July

was

the

Agency

the

recorded

months

of the

the

For

the

>11%

rose

from

Association.

gain

in

like

1961, according to the

Insurance

ment

6.6

in

The

These

the

in¬

first

seven

months

seven

of

+ 16.1

4.3

—

4.8

—

8.5

+
—

—

+

1.1

5.6

+

8.5

is

year

tum

rate

of

gain

over

steadily

gaining momen¬
the increases of 1.5% for

as

2.5

seven

0.6

0.8

of

month figures show

8.1%

to $39.2

million

for

dividual policies and 1.7%

in¬

to $9.0

million for group coverages.

well

2.7

+

1.9

of

1.2

+

3.1

Inc.,

2.7

72

Third

7..

The

for

and

•

SOMALIA

•

he

underwriter

personal

estate plan¬

ning,: his
life

The

insurance

that

company

for

vehicle

the

as

ful¬

the

fillment of his objectives is usually

following,

they

Schiff finds

Mr.

explain the rise of numerous small

Companies

EAST AFRICA

AND THE RHODESIAS




Stock Exchange
Stock

120

Exchange

BROADWAY, NEW YORK 5, N. Y.

This

to

place

on

willingness

small and

questioned reliance

life in¬

new

the

Institute

in

the

United

Of that number, the Institute's

doing business at mid-year

figure

is

figure

net

adjusted for mergers, absorptions,
etc. The gross, number of new

legal

life

reserve

formed

to

came

companies;

in

83

the

year

1961,. 94 in 1962, and 48 alone in
the first six months of this year.
Only about 1% of the life

Teletype

212

traders

the

York

New

invited

are

Stock

firm of Bache & Co. to attend
four

2-lecture

timing of invest¬

first

given

of studies will,

group

at

the

Norwalk

School, 125 East Avenue,
days, Sept. 3 and
second

a

on

10, followed by

Sept.

will

given

be

at

Road

(Route

Sept.

second
and

4

High

137),

and

Rip-

375

on

Stam¬

Wednes¬

11,

and

Mondays,

on

24.

lectures

the

School,

ford. The first will be

day's

and

two

High

powam

17

of

groups

Ridge

High
Tues¬

on

group at the same place

Tuesdays,

Two
each

in

fundamentals,

.

The
be

one

sessions

the

on

by

Exchange

the

Sept.

16

23.

un¬

deserved

reputation

insurance

industry.

of

life

the

It represents
insurance.

life

of

represents

It

ous

states in safe-guarding the in¬
of the

terests

The

the

to

service

the

lies

to

in

success

At

least

panies
with

two

insurance

life

are? chartered

than

more

having

at

40

Wall

St., New York.

15

or

the

half

more

in

numbers

states

companies.

home-based

of

com¬

panies, but Neyr York, New Jersey
Connecticut

and

companies

the largest amounts
ance

by

had

141

home offices are

different

with home

citiejs, led

offices

has

Edwards
the

&
J.

York

Hills,

Hanly

—

the

William
firm

in

the

rate

in
and,

Stock

Exchange,

executive

N.

their

in

branch

J.

office,

Millburn Avenue.

515

Mr. Tucker

South

Richard

E.

was

the Manager of

Orange
Kohn

&

of

office

also

Co.,

the

the early 1950s,

bers of

new

established

in

the

southwest, where

at'a

New Edwards Branch

that, since

the greatest num¬

companies have been
south

and

AMARILLO, Texas
wardp

Sons

So

—

have

A. G. Edopened

population has

under

fast pace.

S.

the

management of Walter

Mount, Jr.

growing

r

Special Trial Subscription Offer
NEW

FOR

-n

SUBSCRIBERS

forces

The COMMERCIAL and FINANCIAL

de¬

CHRONICLE

com¬

modern

important

in

25 PARK PLACE

are

Fill

needs.

insurance

of

many

companies

which

by

on

the

out

•

NEW YORK 7, N. Y.

the coupon below and we

information regarding

life

new

our

will send you complete

special trial subscription offer to

the Commercial and Financial Chronicle without

have

recent years

in

formed

obligation.

was
Name

Institute

i

—

of Life Insurance in the 1962 Edi¬
Firm

tion

"Life

571-1170

fastest

Specialists in Bank Stocks

the

t$+

Insurance

insurance

growing

is

one

'

Z'

w'i

i, :

|

'

-

-

u-

\
■*.

of

businesses

•

1

Z

—

—

Fact

following quote:

Address

the
City

in

nation], and the number of

•

r*

Life

the

of

Book in the

a

branch office in the Vaughn Bldg.

been

product

agency

and

more

story

a

member firm.

of

companies.

The Institute reports

willing to design policies for spe¬

The

of

Hanly, members of

account

Short

N.

joined

and

New
an

as

the

in 361

Edwards

Tucker

of life insur¬

in force.

Dallas

With

SHORTHILLS,

Company.

petitive

been

Bache & Co. maintains its head

I

office

com¬

in each state,

Texas, Arizona and Louisiana lead

the

expectations

favorable

future

o'clock in

8

evening.

policyowners.

answer

and

past

AH classes start at

the

com¬

great tribute to

a

+'

panies do business in all 50 states.

companies attests to the well

new

Telephone: BArclay 7-3500
Bell

Offers

securities

the reasons

-on

of

companies

located

commented

Laird, Bissell 8 Meeds
Members American

BURMA

Co.

&

Nearby Connecticut investors and

States has reached the 1,503 mark.

Life company 1

companies.

cial

ZANZIBAR

Bache

of

ly- that the: number of life insur¬

(Agent) who can advise and assist

INSURANCE

Members New York

ADEN

Company,

name

competent

a

concept

STOCKS

•

on

been growing faster

companies,

Many new companies have very

22368-9

CEYLON

brand

a

seeks

and
deliberately
signed their portfolio to be

Branches in
•

small life insurance companies.

Today* the consumer does not look

carefully

the Government in

PAKISTAN

In fact

companies have

for the emergence

This

com¬

Inv. Lectures in Conn.

techniques and

relationship that now exists
4962>
between policyholders and their

87

were

insurance in force.

Giving substance to Mr. Schiff's ments.

+

life

$1 billion of life

over

New Life Insurance

1,472

sional

and

BANK

June 30. There

panies with

September

ance^

ac¬

the

of

22 life companies in

were

Institute Reports on Number of

surance

60%

policyholders

Survey shows, there was a net
increase^ .31 companies over the
development of the-profesv

tide.
•

it .can..be>
ridingv the

,

achieved

Avenue, has been

changed to Oser and Co., Inc.

MINERVA LONDON

•

on

management skills rather than the

hope that
by merely

serving

and/ pi Mfe-Insurance reported recent¬

companies,

the regulatory bodies of the vari¬
name

Regency Estate Planning Co.,

Telegraphic Address

INDIA

small

deceptive

also

Now Oser & Co.
MINEOLA, N. Y.—The firm

0.8

•

'

institution

AO BISHOPSGATE, LONDON, E.CJ

UGANDA

as

complete public confidence in the

1.2

1.0

1.1

gain

a

Head Office

•

companies, tor

future-'success, will d.ep, e n d

the

1.7

4.4

last

0.1

+
—

The

first quarter and 10.6% for
the second quarter indicate.
The

6.7

-h 3.0

0.3

1962.

Primary Markets In

to

well
large as
as

has

than the big companies.'

Schiff, President of the

opportunity for old

new

as

acts

Bank Limited

KENYA

great industry.
according to- Mr;

business requirements,
monthly- his welfare and pension programs.

year.

first

There

successfully with

Madison Life Insurance Company,- observations above
create

National and Grindlays

•

without

coverage

facts,

the whole

created a

this

in

Miltorr A.

of

Bankers

for

demand

in

ADEN

insurance have

for life

the smaller

most

own areas,

companies
of

the

companies

companies.

our

throughout the country.

found

being

3.3

\

Telex Nos.

constantly

Manage¬ him in his
July

highest

in

millions

our popu¬

the

Being

insurance in force among all U. S.

companies

compete

biggest

about

10%

or

their second century of operation

policyholders in their
areas,

for

156

for

mutual

for

number

companies.

larger

the

count

growing too. Small, local
companies, serving thousands of

rising stand¬
living, and the new uses

growth,

are

insurance

and

account

while

mutual

part,

regulated industry.

a

the

that had formerly confronted new-

SALES

insurance

million

$7.0

Life

life

of

ac¬

,

INSURANCE
of

signs

in

faster

in

Not

of the total

companies,

older

companies

new

been

operated

and

explosive rate of

of

that

or

Sales

94

But

companies
90%

or

are

Mr. Schiffs comments pub¬

life

are

agents; has removed the handicaps
LIFE

of

of New York's most

were

growing

Companies Dominate in

Stock

1,347

—

—10.1

—

Travelers Ind

U.

+

which

a

they

course,

1963, total sales amounted to $48.2 only of minor importance in his
consideration.
In
listing these
+ 0.9 million, up 6.9% from $45.1 mil¬
identical period of reasons, and others immediately
7.2 lion for the

—

6.2

—

&

1.3

3.9

Casualty____

Paul

+

7.1

5.8

Cas.__

Peerless

St.

3.5

5.6

New Hampshire In.
Ohio

+

8.9

__

Home Ins.__
Ins.

2.5

+ 18.6
—

trend,

crease

(In Percentages)
Aetna

practically

Aside "

for most companies and

adequately,

on

weekly basis in recent

steady

years.

rose

occurred

expense

underwriting results, net in-j

vestment income
and

ex¬

experience

continued

of

decline
from

and

to

ratio

component

u

The;

coverages.

factory
was

structures

has

im+ casualty, and- life insurance,- will

provement.
•

The acquisition follows the con¬

ex¬

cold tinuing trend of important insur¬
experienced in the early ance company combinations which

if, of

managed

parallel

period of excessively

the

one

start —encouraging

with integrity.

heav¬

heavy fire, freeze and windstorm
during

this industry

ard

property

head

and

greater opportunity for growth
has ever before existed in

a

of

Health

larger companies,

and

Insurance Volume

dollar without trepidation of the big com¬

than

The

slightly under $50 million with

many

on

lation

operations.

Company,

In 1962, there

companies have

New life insurance

which is controlled by properly

company,
the

of

than

Number

by Mr. Milton A. Schiff, President

competitive vitality even in

Winterthur,

hard hit

were

i

m e r

been

Stock

ac¬

better

fared

competition

pany's

have

and the

companies to enter this well

of June 30, this year.

as

life insurance premium

Switzerland, has premium volume

balance, the casualty insur¬

ance

A

exchange

an

ance

Oh

CASUALTY

has announced plans to

the

Insurance

are

fact

recently published

lished below typify the reasons why fledgling companies pursue the

Company of Reading, Pa., through

red

exception

six

the

values

Life

Madison

of the

regions,

successfully

"Life Insurance Stocks" is

(Cobleigh & Gordon, N. Y. C.,

new

established industry is explained

The Continental Casualty Com¬

quire

many

their

competing

"Life Insurance Stocks for Lifetime Gains," by the "Chron¬

What prompts so

of the

by two

on

columnist, Dr. Ira U. Cobleigh

ap¬

ACQUISITION

pany

One

(Citadel Press, N. Y. C., 1963)

recently licensed companies.

CONTINENTAL

year,

the satisfactory second quarter of

by Arthur Milton

formed and 48

the

for

sonably better than the disastrous
three

market

evidenced

as

subject.

on

1963).

through June 30.

second quarter of 1963 were sea-,
initial

rose

the

on

icle"

black.

1962:

of

results

the

benefiting from

stock

past year

other

operating

in

surplus

5%,

in

rise

the

tot$l

remain

to

income

indicate that first half underwrit¬

results

the

authored

stockholders

to

in

succinct books

insurance needs
in

cording to the Institute.

The life insurance industry has aroused heightened investment in¬
SIX MONTH UNDERWRITING RESULTS FOR FIRE AND

companies, specializing

in the life

families

13

-

27-4-

-

State

—

—

14

The Commercial and Financial Chronicle

(930)

Electric

:

The State- of

:

Week End.

Production

Steel

Carloadings

—

Retail

Price

Food

Bos

Index

+

8.8

1.202.234 "+

i,114,0C0

1.020,000

Failures

Business

Frior

+j

4.8

capacity for

+

2.9

greater

Edges

Week

0.2%

From

13

continues

tory

through

pace

and

doldrums

downs,"

so

ecutives

The

shut¬

strife,

general

Ex¬

monthly

and

actual

continues

to

optimistic note sounded in

Co nmitteemen

Agents last month
this

in
the

month's

new

32%,

from

of- the

Na¬

borne ou

was

in

improvemeot

order

i

figures;

note

35%,

up

im¬

order

new

provement, while only 14%, down
from

21%, ncte

order

tmuss

at

last

lack

the

worsened

a

situation.

pace,

f

July

en-

Same

Better

35

—

______

the

mouth
ment

commitments

lengthening

47

— 32

to

held

19

July

31

48

21

June

and
then

Stability

no-strike
the

1964 expirat'on date will continue
to affect the general

the

next

this

to

several

is

national
the

the

tension

too

asked

half

first

half

cf

52%

sai:l

the

on

compare

with

half

in

tinue

13%,

in May,

exact

asked

in

* same

the

The

better, while 46%

11%,

say

same

43%

say

and

same;

/'

A.

■

Purchased
Last

becomes

that

Materials

inventory

ground to

Inventories

report^ observed
accumulation

had

and| that August

figures would bear careful analy¬
sis.

The

has

appearek

anticipated

27%

17%

is

reported

are

from

this

report

down

from

noting last month. Lower

so

levels

liquidation

Only

higher levels;

22%

last

by

26%,

month.

It

up

is

in¬

teresting to no*e that the period
cf

time

between

ment

of

ment

and

the

in

1962.

ment

in

price

liquidation
not

this

current

reduction

as

yet

takes
as

were

has

17%,

re¬

When

on

the

as

over.

known

reporting
slipped

to

to

occurred

cator

is

twice.

continues to

price

stability.

lackluster

place,

is

and

prices

f~at

attempts

stubbornly

has

of

the

doldrums,

the

period's

13-week.

weekly

average

the

was

lowest

October 20,

week's

output

that for
The

the year-ago

year's

2,626,000

For

the

May

increase

being

are

resisted.

the

year,

1

cumulative

total

a

tons

of

(*116.4%)

above

the

Jan.

production
In

rubber

cific

featured

are

commodities

with

stainless

the

the

on

steel

down

117.4,

1-Sept.

cumulative

this

116.7

week's

output

in

spe¬

up

side,

On

the

side

On

the

cor¬

down

are:

Poly¬

stainless

and

supply:

Cadmium

and

Clearings 91% Above 1962
Week's

the

ago.

latest
a

year;

Preliminary figures compiled

by the Chronicle, based
graphic

advices

from

upon

the

tele¬
chief

cities of the country, indicate that
for

t^e

week

ended

United

possible

Sat^dav.

Indications

States for which

to

were

obtain

9.1%

when

you consider the random fluctua¬

above

Our

preliminary

417,649 for the

those

Our
some

comparative
of the

ters follows:

totals

against
same

it

is

clear¬

corresponding week ldst

$30,335,735,151

ing Executives remains generally

weekly

of

year.
were

$27,808,-

week in 1962.

summary

principal

money

of

Chances

33

cents

pace

the

is

year,

the total

are'

■

composite
grade

.

$27

scrap,

a

rose

last

ton

gross

a

of

week.

94.5

94.7

production

Steelmakers'

plant

for

Iron

on

Age Predicts

steel

and

for

ceii-

Spending to

this

billion,

by the

survey

17%

that

34

com¬

(they produce 94%

steel)

of the

spending

are

$1,018,533,000 this

year

$870,-

vs.

Steel estimated

of

the

rest

of

the

industry would push the total
$1.1

billion,

companies
three

as

The

since

normal,
steel
in

as

Corp.

much

Co.

spending

its
is

is

spending

the

on

much

as

tyggest

history.

of

this

na¬

week

a

year

ago

production

in

of

Ward's Automotive Reports said
models

cars

than 75,000 new

more

have

August,

been

gain

a

the

over

produced

of

about

1962

in

32,000

"startup"

The statistical agency

industry's

on

fixed the

this

program

week

at

37,721 assemblies, rising 65.9%
from

22.732

7.4%

the

made

cars

above

last

35,115

corresponding

week

units

period

in

year

a

ago.

Chrysler
lead

Corp.
the

over

maintained

industry,

factory output to

yield

in

model

workers

of

layoffs,

last

period;

recalling

Co.,

thou¬
forced

from

planned

week

10,COO-unit spurt

its

boosting

its normal

near

'63

the

Motor

sands

a

token pro¬

over

duction of the prior week.
Studebaker

reached

Corp.,

full

a

in

third

its

assembly, had nearly

Motors

can

"buildup"; Ameri¬

Corp.,

at

operating

about 60%

of its average '63 pace

last

went

week

to

production
waukee

shifts.

two

encounter

however,

It

some

its

Mil¬

plant" which

im¬

problems

body

at

peded assembly work at Kenosha.
It

began

hiring at Mil¬

some new

this

attend

to

"bottle¬

users

tainty,

is

pro¬

and

22,911 "builds"
last week

the

market

The

conflicting

some

in

steel

Just

way.

how

it will go

factor

one

day-to-day

the slowdown in

the

Labor

Although

indicated

is the

would

be

had^
placing.;

the

orders

had

Other major steel users were also

(including Colorado Fuel &
Corp.

and

Alan

completed
year

or

the

Wood

maior
year

Steel

programs

of the industry's

capital spending.

Principal objectives

But
Iron

this

all

would

after

was

not

unexpected,

Age pointed out. Steel buyers

along

not

be

Labor

indicated

really

Day.

ment.

summer's waning days.

spending

is

Freight

new

Car

Gain

Tonnage

The di¬

built

about

truck models.

Loadings

and

Year-Ago

Over

Period
-

Loading

594,740

of

Aug.
...

the

cars,

freight

revenue

ended

American
This
cars

was

or

.*.

in

24, totaled
.*r»
» >•*

.

.

Association

Railroads

and
are

in

farm
a

of

announced.

lull

ap¬

in

increase

of

18,083

above the preceding

j

The loadings represented an in¬
of

equipment

seasonal

an

3.1%

week.

crease

makers

the

until

Further,

ting and product quality improve¬
of

they

active

pliance

Much

passenger

area.

already

16,000 of the

delivery,; the. week

fcjeen placed.,

cost cut¬

are

of

dragging their heels.

had

before.

Expansion is not the main aim

has

>.T

not

'64s

its)

record year in that

holi-«

ing

several

of

was

which
almost

pic¬

tures. Other companies are spend¬

October

output

Chevrolet,

ahead

weeks

automakers

they

ago.

year

making in its rush toward a

car

ordering

Day

a

by

output

began
three

vision

singled out

before

uncer-,

the

of

up

were

19,496 counted,

vs.

gain in truck

headed

in¬

an

14,168 made in the

and

week

same

for
Slated

week.

last

crease

too, according to

headed

general

J
the

reported in

were

output!
was

general

a

are

under

clouds

day.

nearly

Ward's,

as

into

fast and how far

just

auto¬

on

or

and

upturn

Iron Age

week

last

Truck

metalworking

there

the

market

week, although,all of its

strength.

crosscurrents

as¬

readiness.

normal,

come

23

no^ slated

are

regular '64 operations un¬

lines

for

group,

Corp.'s

this

pre¬

orders

this

Motors

to start

Age

big

less—in

General

Iron

buying

Although

six

Pittsburgh

October

in

tripling its expendi¬

last

it set

record

today that

til

tonnages

greater

ture

Steel

Co.)

1964

the

models.

over

the

taking

upswing

that

in

Iron

1963

gain

national

makers

this

gram

firms

all-time

10%

a

big question.
are

times

show

weekly said this is based

they did in 1962:- Wheel¬

Steel

times

largest

up

$1,521,000,000.

Some

ing

to

industry

I

dicted this week.

year

ahead

metalworking

reveals

October

shipments

should

September,

industry outlays for

equipment

magazine

to

.

7.4% Above

complete,

sembly complexes
Steel

1962, Steel magazine predicted.

year

eaten, up

moved well out ahead of the pro¬

10% Upturn

a

average

1957-59.

Capital

top $1.1

two

run.

bring

substantial

even

are

changeovers

waukee

In

based

Total $1.1 Billion in 1963

will

as

near

auto

did,

No 1

on

of

material,

raw

to

tion's

higher

higher.

melting

model

has to

Models

weeks of '64

rest

1964

early

neck."
industry

production

1960's

in

statement forged ahead of

ings

buying policy of Purchas¬

■Undex

weekly

to

Volume

clearings

were.

be

106

expenditures

Bank

they

operating

the

stedlmaking

108

94

812,459 last year.

the

has

107

country's

plywood.

Bank

be

heavy

74

panies
j
short

Con¬

output will reach 106 million
tons.

With

Ford

(1)

may

104

75

A

side

sugar,

current

Steel's price

;

95

103

Western

of

steel.
In

94

_____

Louis

U. S.

rugated, tires, and cartons.

ethylene,

;

in

Aluminum,

plywood,

bottom.

sheet buving sug¬

the

month

are:

silver,

July

101

Cincinnati
St.

straight month, reflects

vv

1963

139

to

25

late

of

thought

maintained

year.

every

hit

Auto

models

not

anticipated.

will

73

if

month.

a

stocks may be smaller than

If the

91

147-

Chicago

boost

tonnage

pace

Consumption

than

72

108

___

Detroit

Total

zinc,

(2)

ingot

90

New

a

already

possibilities:

steelmakers

91

-

79

«

Cleveland

the West Coast labor trouble.

lead,

91
74

Pittsburgh

bal¬

plywood, appearing for

the second

Coast_____

Buffalo

sugar

On

two

7.8

Index of Ingot

Youngstown

and

side.

East

to

steadily,

the

demand

gests

Week Ending
Aug. 31
Aug. 24

District—

for

substantially,

has

An upturn in

faltered

Southern

column

and

when

against 8.7 million

as

them

booking

above

of

Production for

Cadmium has been in the short

supoly

30%

July, and 7.1 million in August,

month; and stainless
this

They're

the

near

or

the

for

like this

orders

new

and

improve

of

wide

'63 models.

spectacularly, for almost

last

about

was

or

pickup in orders

upswing

mand

(1957-59=100).

million tons

in

in the up column for the

time

The

1962

total

tally

two

'

started. Major mills have seen de¬

net

with

index

accelerate

next

shipments

12.0%

1,;

months

the

automakers

record

production

Production

and

reported.

sumer

North

in the down column for

fourth

is

comparison

August's

the up's have it. Aluminum

apoears

Steel

of 67,978,000 net tons.

the

week's

76,116,000

which

Changes

Nonferrous metals, wood, paper,
and

total

topped the year-a<?o period

with

devel¬

looking

enable

scheduled

duction pace

burr

liberalized

are

post Labor Day
will

for

year

investment

the

of

Year-Ago

row

a

have

stocks of steel

the

~

Steelmakers

1962.

Commodity

in

20

of

out¬

the

likely

climb

predictions,

in

from

r

years.-

regardless
of

cold

technology,

will

improve¬

through Septem¬

25%.

50%.

rapid

Estimates

no

substantial

Ind.,

a

compared

that

and

expenditures

their

this

at

credit

that
in

the

year.

the

new

three

last equalled

week

of

advantages

tax

1960.

15th

has

in

Gary,

equipment

competition,

the

was

and

years

mid-March.

at

$41,977,912 last

depreciation

25-ending week unequalled in the
past two

which

facilities

$110 million this

opment

,

hi?h

to

expected

side.)

orders

a

record

Corp.,

predicted

vague

But

other

the

in

to

range

at

said

ment

Inland Steel Co., which operates

Steel

e

auto¬

auto industry is still

from virtually

semi-

solely in the Midwest, will spend
and

ti

on

and

market.

range

Burns

,,

mill

Age

buy by the

at

produced

the

the

on

users

extent they follow
into

Iron

estab¬

that will boost the company's

of

above

week.

sheet

the

what

is

mill

plants.

Steel

to

ber

Chicago area, is installing

with

1962

achieved

tons

S„

plant

(1,739,000

weekly

net

U.

Co.

to

giant production

around

output

5.5%

was

steel

Bethlehem

production

1982

*

Specific

La3t

5.3% percent¬

was

Ind.,*

September/

in

of steel

group

makers

utilize

rolling

Harbor,

in

western market by about

weekly

holiday week's tonnage. The latest

market

to

selective and

are

July

output

participate

examples:

Steel

minished

happens

general

put of this product for the Mid¬

13

past

1.6%

points below the 1957-59 base

age

indi¬

general

spite-

in

in

tags

This

summer

competition

of

as

the

in

the |

the

was

Jan.

Runaway
before

particularly

gain

gain

since

week's

output

up¬

steel

largest

reflect

In

net

Some

a

rolled

week-to-week

in

lishing

output of ingots and castings since

reported

the

and

years,

only

ending

24

Aug.

May,

Aug. 31 clearings for all cities of

appeared.




23%

report higher

three

over

38%

when

"up,"

number

the

unchanged,

when

for

except

inventory

Encouraging Short Run

The

that,

hike

prices

settle¬

at settlement

year

significant

more

was

in 'June.

reporting

27%

and

up

"no

report

those

were

up.

showed
still

only

at

1962, 44%

"up" side. This

the

of

lower

and

inventories

were

higher

set de¬

shorter this year t'*an

liquidation

time,

contract

Fu^the^o-'e.

time

porting
21%

announce¬

crossover

higher

month

one

steel

the

reporting

the

by

last

just 1 following:, the

1963

halt

a

71%

the

change

weeks,

reporting prices "up"

notes

steel,

I

month's

noting

so

week

against 1,761,000 tons

slim

second

in

fifth straight

worse.

-

paid

were

5%

large

22%

ance,

only

prices

fromi
A

to

now

ward

from 19% to 22%,

rose

lower

leading

that

prices

report con¬

In¬

1,765,000 tons

tons)—ignoring the Dec. 29,

August. Those reporting

up

question now, and it is interesting
note

month's

last

the

for

was

looked

Agents

same question
the

the

time,

and

Purchasing

They

we

that

At

second

received

answer.

Treaty.

to

35%, ; same;

asked, the
and

by

cn

affect

an

of. 1963

1953.

* The

worse.

inter¬

December,

members

our

better;

Ban

have

Last

second

A"ded

of

brought-

Test

may

business.

the

months.

lessening

A-Bomb

This

situation for

This

since

,

The upward pressures on

month.

steel

of

Executives

General Commodity Price

1963,

The

extension

confidence

Steel

week.

and

business

picture.

ma¬

fojr, at least, the immediate future.

one

and

vir¬

change."

reports

current

the

cut

Purchasing

by

talks represented a "big if" in the

settlement

bear

while

52

the

in

terials commitments, noted above,
seems

7%,

that

as

(*94.5%)

production

of

production

stitute,

(*94.7%)

remain

1962

and

mar¬

unavoidable

an

markets—particularly

Midwest.

What

instances,

more

is

Bethlehem

Iron

ended Aug. 31

facilities,

in

Out¬

Period

American

place. In far

ing

According to data compiled by
the

equip¬

Capital

1963

products to get

some

participation in the

byproduct of steps to

Year-Ago

12.0% Above

^

,

sup¬

hand-to-

the

Is

moved

MRO

the

members

category.

higher tags

1

May

in

as

30-day to

14

'.<•

29

noted

from

Some

commit¬

forward

noted

21

51

%

Worse

August—.
The

is

6-month

the

to

category.'

section

noted

August

as

one-year

ments

materials
members mo ved

90-day

with

deterioration

Orders

Production

to

con-

couraging.
New

the

from

new

Production

month's

of

mitments

com

put

lengthening is

some

noticeable in production

of; Purchasing tually unchanged from July. The

Association

tional

Nevertheless,

Above

Cumulative

And

indicator.

this

in

normal

plies

economy.

the remarks of the Business Sur*
vey

tion

lumber, shortening >of

railroads,

in

the

summer

latest

other [industries

and

alffect
■

the

Purchasing

their

Labor

'potential,

satisfac¬

a

vacation.

say

in

report.

at

5.5%

ket

boosting

are

expansion, particularly of finish¬

Second

Marks

Thursday, September 5, 1963

Octcber, and later depends

companies

763.655

Upturn in Past 13 Weeks and

Business

few

480,979

Output

Steel

Price Index

Commodity

A

495,069

City

.

facilities.

800,020

on_

Kansas

Production

TRADE and INDUSTRY r

obsolete

6.1
9.2

.

equipment to supplant old and

gr

$15,518,832

1,274,901

Chicago
Philadelphia

Trade

for

,

1932

1063
$16,890,437

York

New

(000s omitted)

/

Aug. 31—

Output

.

above the

1962, and

11,781

cars

or

2.0%

corresponding week in
an

increase of 2,475

cars

Volume

6296

Number

198

.

The Commercial and Financial Chronicle

.

.

(931)

15

■

four-tenths

or

of

T corresponding"

Ton-miles

1%

by

car-

loadings in the week ended Aug.

124,

1963, are estimated at
proximately 12.6 billion, an
{>f 6.1%

crease'

the

over

with

ments

new

in¬

corres¬

3.1%

rose

thousands

15,273

tainers

of

'included

:total).

1,723

highway

or

in

that

corresponding

week

above

the

1962

and

of

32.5% above the 1961

cars or

week.

of

increase

an

12.7%

or

Cumulative
the

piggyback loadings

first

totaled

495,099
of

crease

weeks

33

1963

of

for

cars

58,458

Aug. 17

1963

-New

13.4%

or

cars

in¬

an

and

above

in

134,132

the

1961.

37.2%

or

cars

corresponding

There

Monday

224,127

231,786

The

220,344

235,016

distributed
and

electric

of

amount

by

the

electric

this

type

traffic

in

this

compared with 60

ago and

year

in the corresponding

58

kwh.

to

and

the

Edison

Output

total

of

ac¬

Electric
99.000,000

was

than

more

week's

the

previous

18,082,000

kwh.

1,093,000,000 kwh. above trie

total output of

in

Rails'

Net Income

1961.

or

First

Half

Betters Past Three Years'
'

Estimated net income
railroads for the first

of class I

of 1963 amounted to $270

ago as

it

Failures Slip Lower in

3.4%

ending

industrial

to 247

dipped
Aug.

29

in

fail¬

the

week

275 in

from

Bradstreet,

While

Inc.

fewer

occurred

than in the similar weeks of

1962

1961 when tolls stood ^at 282

and

and 321

Dun

by

$5.90,

low.

Six

was

respectively, they still

ex¬

far

So

foods
corn,

sales

cocoa

week

pound

total of the price

31

of

cost-of-living

index.

dollar

in

New

ended
' the

A

the

Federal

York

City

flash figure

for

sale level.

June 1, there has been

the

Association

Railroads

and

of

made

ities of $100,000 or more, contrary

public today.
income

Net

months
it

riods

the

of 1963 was

of

Shears.

for

for the

was

first

greater .than

of

the

12%

was

less

than in

less

pe¬

three

past

than

first-half net income in

33%

six

corresponding

each

It

the

1959, and

1956.

to

28

failed

the

to

their

cover

•'"•

first

six

these,; 18

District,

charges

months

of

in

were

in

1963.

the

in

seven

enough

earn

fixed

the

Of

Eastern
Southern

Region and three in the Western
District.

net

30,

12

1963,

net

months

(averaged

railway operating income,

before

the

deduction

other

and

based

on

fixed

interest

of

charges,

and

value of road and

overall
from

49

and

41

last

39

The

a

prior week

toll

retailers

among

fell

to 107 from 122 and among, service

businesses plunged to 16 from 31.

Manufacturing

failures

at

47

as

against 50, and wholesaling, at 18

against

"

as

changed

22,

only

Year

show

ice

ment,

including materials inven¬

tories

and

cash, less accrued de¬

preciation.

-

to

toll

to

from

59

comparisons

year

-

decline in trade and

a

casualties

week

of

from

1962, | but

the

serv¬

similar

rise in both

a

manufacturing and construction.
six

In

is

equip¬

of

nine

the

major

the

of

stemmed from the

however,

Pacific

States,

Truck Tonnage

Intercity truck
week

ended

ahead

of

responding

series

today.

Truck

2.2%
cor¬

the

Associations

This

continues
which

two

over

tonnage

the

the

increases

lasted

now

wds
in

Trucking
of

in

of ,1962,

week

announced
a

24

volume

has

months.

0.4%

was

States, down

and the Middle

tonnage

Aug.

the

American

tain

2.2% Above

Year-Ago

■

above;

from 70.
of

the

in

South

Central

Atlantic

Regions.
held

levels;

registered.

>

,

findings

are

based

on

the

preceding

week

weekly survey of 34 metropolitan
areas

conducted by the

ATA De¬

partment of Research and Trans¬
Economics.

port
flects
than

tonnage
400

truck

carriers

mon

The

report

handled
terminals
of

at
of

general

com¬

freight

throughout the!country.
Lumber Production
Over

Lumber

1982

in

country totaled 232,196,000
feet

in

the week

according
from

to

regional

ended

reports
lumber

tions.




Easing
price

lower

the

week,

■

level

throughout

wholesale

slipped

reported

the

Dun

board

failed

to

pick

prices

to

drop.

four

wheat
and

Aug. 24,

rubber

received

commodity

associa¬

264.33
&

fell
corn,

also

up,

week.

the

three

declined.

which

causing

days

oats,

out

lambs
The

made

week-to-week increase

3%

City
4%

■

of

Associa¬

Bankers

America,

and

Leo

the

Communications

Satellite

Corporation, Washington, D. C.

Phila. Mgr. for

Blyth & Co. Inc.
PHILADELPHIA,
A.

Pa.—Lawrence

Quinlivan, Jr., has been named

fice

of

Philadelphia

the

of

manager

was

a

only
net

sugar.

Here, the domestic prices reflected

of¬

Blyth & Co., Inc., 2 Penn

Center

Plaza.

Mr.

Quinlivan has

been with the firm for many years.

one

Autumn-like

weather

women's fall
annual

apparel, while semi¬

sales

furniture

kept

and

appliances forging ahead. Demand
for

autos,

despite

slow¬

seasonal

by

solid

a

The

margin.

total

dollar volume

tail

trade

the

Wednesday

in

the

week

of

re¬

ended j in

statement

week

ranged from 5 to 9% higher than
last

year,

mates

collected

from

by

to spot esti¬

by Dun &

Regional

Inc.

levels
ages:

according

Brad¬

estimates

comparable

the

following

Mountain

—1

1962

+3;

+1
and

-J-7;

to

West

-f-5;

East

New

South

North

Central

Central

England

+4

+3

to

Middle and South Atlantic

to

+8;

+6 to

C.

over

A

broader

set

flash

a

figure

year

of

data

ago.
encom¬

passing total retail sales, compiled
by the Bureau' of the Census,
U. S. Department
of Commerce,
the

put
total

Aug.

sales

The

24-ending

5%

above

a

N—7

ago.

year

contrast

year-to-year

135th Consecutive

week's

gain

of

ment
of

5%.

store

Unlike

a

declared

data

over-all

quarterly dividend

a

capital

stock
outstanding.
The dividend will be
payable

Sept. 13, 1963, to stockhold¬
ers of
record, Aug. 30, 1963.

retail

adjusted

not

are

.

of 40 cents per share on the

depart¬

statistics, the Depart-

Commerce's

sales

the

Dividend

The Board of Directors at
meeting on Aug. 21, 1963,

/

for the

latest four-week period showed a

for

Paul E. Shroads
Senior Vice President
•«

seasonal

variations.

adjusted

basis,

sales
ago

gained

On

an

department

6%

the

over

un¬

store
year-

THE COLORADO FUEL AND

week.

IRON CORPORATION

First Nebraska Office

Pa¬

cific 0 to +4; West South Central

Y.

plus 1%

percent¬

to

N.

was

also !

encouraged interest in men's and

DIVIDEND NOTICES

Dividend Notice
The

OMAHA, iNeb.
Securities
branch
tional

Inc.

office
Bank

First Nebraska

—

in

has
the

opened
Omaha

a

Na¬

Building, under the

management of Fred S. Kuethe.

Board

and

Iron

of Directors of The Colorado Fuel
Corporation
on
Wednesday, August
declared the regular quarterly dividend
of 62V2
cents p^r share on the series A $50
par
value preferred stock and 68% cents per
share on the series B $50 par value preferred

28th.

stock.

dividends

These

holders

The

DIVIDEND NOTICE

to

payable September 30th to

at

the

close

business

of

of

the

Directors
common

took

stock

Kirk,

C.

The Colorado Fuel

BAKING

action

no

for

this

The Board of Directors has declared this day

quarter.

Secretary

$1.37h»

share

—

quarterly dividend of

a

the outstanding $5.50 Dividend Preferred Stock,
payable October 1, 1963, to stockholders of record at the close of business
per

1

•

Common Dividend No. 74

dend, for the third quarter of the

year

:■

:

regular quarterly divi¬

close

<3®

of
of

per

such

share
to

the

holders of

stock

business

on

at

the

September

a

cash

per

The stock transfer books will

dividend

share

Stock

of

the Common

of the

Corporation,

on

September 27,

1963 to stockholders of
on

rec¬

September 13, 1963.
Michael D. David

be closed.
M. C.

27¥>i

on

payable
ord

I3' 1963not

on

September 3,1963, declared

1963, of 55«f
record

Cash Dividend No. 173

The Board of Directors

r

outstanding Common Stock, payable October 1, 1963,

'J}

CERRO

on

September 13, 1963.

Secretary

WOODWARD, JR.
TREASURER

with

and Iron Corporation

COMPANY

Preferred Dividend No. 99

on

9th.

Board

respect

are

record

of

September

of

and

D.

Welch, Chairman of the Board of

surmise, however, how much

four-week

year-

corresponding

Brad-

Quotations

be

absence of the sales tax rise. The

volume

the

on

Wholesale demand for

hogs
for

last

commodity

to

stores

Y.
to

The Board of Directors has declared this day a

their

Week

for

pace

of

and Year

street, Inc.
1.2%

ago

retail

ahead

Slips Below Last Week, Month

Friday,

Gains

production

Wholesale Commodity Price Index

re¬

more

total

CONTINENTAL

but did not reach the 52 occurring
in the similar week last year.

the

the ' N.
from

Investment

tion

ago

I;

of this year.

in

department

hike

the

four

year

a

from

These

propelling

Canadian failures climbed to 42
28

will

Speakers

Amyas Ames, Kidder, Peabody &

with

other

the

gain for

a

areas,

even

the volume for the previous week

.

Wednesday, Aug. 28,

South

five

In

about

in

rose

and

decreases from

areas,

23,

On the contrasting side

failures

were

from

12

picture," business tolls

the

1962

to

Atlantic, off to 58

Hotel.

higher it might have been in the

ended

varied

decline,

C.

week

A susbtantial por¬

than last week.
tion

geo¬

tax

Astoria

since

can

street,

ran

Y.

plus 1 %

a

week

every

commencing last June 1. No

Buying of back-to-school cloth¬

lower

graphic regions, failures

off to 63 from 81 from the Moun¬
'•

sales

slightly from the preceding week,
ing, still topped last year's levels
while a contrasting increase lifted
construction

York

ing gained full momentum in the

considerably

year ago.

N.

In

notwithstanding

Momentum

Among

steep decline

to 198 from 236 in the

Back-to-School Purchases Gain

week

a

year.

was a

'

the

'year-ago

ing sales week revealed

the

in¬

involving losses under

$100,000, there

r

slide,

on

3.13%. Rate of return is calculated
on

earlier

to

casualties

50.

investment for the

June

creased

the

The railroads' rate of return

ended

week's

the

to

and 241

J Of the nation's 102 class I rail¬
roads,

Large-sized failures with liabil¬

for

New

increase.

with

store

Aug. 24> gained 8%

comparable

trend of food prices at the whole¬

American

Re¬

depaYtmeftt

function

general

Leo D. Welch

Amyas Ames

in¬

that

over

Co., New York City, President of
to

-

229 in 1939.

the

to

for corresponding period

ceeded by 8% the prewar level of

show

1

volume

Carriers

to

4%
com¬

(Jan.

million,
according to reports filed by the

is

ended

gained

City's sales for the Aug. 31-end-

chief

Its

period

ending Aug. 24.

foodstuffs

raw

America

of

week

week's figure. New
York City's
department store sales were up
9%
for
the
four
week
period

and meat in general use. It is not
a

Association

will be held Oct. 2 at the Waldorf-

row.

a

year

System,

Over

sum

New

the

ago.

serve

The
Dun
& •; Bradstreet,
Inc.
Wholesale Food Price Index rep¬

per

the

Investment

encouraging

(adjusted)

According

I

resents the

year

eight

milk, cottonseed oil,

and eggs.

7%

up

gaihs

wheat,

of

the

week's

year-ago

sales

retail

creased

Minor

flour,

namely

with

The

14th

this

districts'

at

noticeable

in

up

Bankers

of

Aug. 24), the 12 department store

a

fchalked

Dinner

Group

tricts.

lesser easing in cheese,
steers;.

in¬

Annual

York

period for the country's
leading department store dis¬

12

rung

and

the

1963,

a

parable

a

the

declined

most

1962.

last year's level for the

over

1962

in

in

Annual ■Dinner.

for the Aug. 24

four-week

24,

Board's

compared

the

the

Aug.

a year ago.

prices

the

over

In

fell

the

reached

9%

up

NY I. B. A.'Group

The
on

taken from

as

weekly uptrend in

with

index

$6.11,

it

food

sugar,

Store

sales

Reserve

period

In¬

Brad-

which

corresponding week
wholesale,

&

even

The

the

Which

Low

Price

the

appreci¬

casualties

Food

store

week

marked

Index

Ten-Week

below

peak,

Continuing to edge downward,
ures

Price

remained

week's

were

and

at

Inc.,

raisins

Pre-Holiday Week

commercial

were

lowed by

'

ably

six months

dex

be¬

Federal

being hogs, hams and bellies fol¬

preceding week, reported Dun &
for

the

like

Food

compiled

last

+8

Level

country-wide basis

on

month.

sharply

year

Department

time.

some

ten-week

17,088,000,000 kwh.

year-to-year gain of 6.4%.

a

ended

week

264.89

last

remained
a

Friday,

on

from

265.86

Wholesale

street,

year's

one

The

timated at 18,181,000,000 kwh.

U. S. railroad systems originating

week

down
and

Steady

light

Central

Department

-

Year's

gain

dex,

I

class

Nationwide

beet

Wholesale Commod¬

Wholesale

energy

ended Saturday, Aug. 31, was es¬

cording

North

doubtful

European

low the 272.26 of

industry for the week

power

East

+12.

Sales Rise 9% Above Last

index

has for

Output Shows 6.4%

to

Gain Over 1962 Week

The

period

6!

were

30,

229,409

above the corresponding period of in the corresponding 1962 week

1962,

Aug.

1962

227.618

224,317

orders___

Electric

the

The Daily

Aug. 25

1963

-f 10;

appre¬

crop.

239,116

Institute.

.

•

for

the

for

232,196

—

Shipments

were

overvall

week's

This'was

sugar

in

for

feet

where

ity Index fell to 264.33

Aug. 24

con¬

17, 1963 (which

cars

:3,743

board

figures

market

ing of supplies and the

weeks indicated.

(piggyback) in' the Week

ended Aug.;

orders

more revenue

or

•highway trailers

reported

cars

'the

are

j

•loaded with One

world

hension is growing about tighten¬

'outlook

Following

Production

were

and

the

I

ship¬

fell 4.5%.

ap¬

1961.

There

levels

1.2%,

ponding wepk of 1962 and 10.2%
over

1962

production'advanced

1961.

generated

Compared

the

above

in

week

CERRO CORPORATION

300 Park Avenue

New York 22, N. Y.

Chronicle

The Commercial and Financial
16

inated,

FROM WASHINGTON

BY CARLISLE

1963,

The American Revolution of

called, has now had its mani¬

it is

festation in Washington and
that

doubtful

of 200,000

crowd

a

people could have been more or¬

This is not un¬

derly anywhere.

of the precautions

view

usual in

Washington

taken.

practi¬

was

cally abandoned. Downtown park¬
ing

prohibited entirely. Busi¬

was

closed; relatively few

were

nesses

white

downtown
as

a

the
of

100

night

was

that

this

containing

bill,

rights

for

order.

and
And

filibuster"

be no

final action.

that this could not be

said

is

It

and

Senators

cratic

compromise to

or

prevent the enactment of legisla¬
tion to carry out the program out¬

it

the march.

of

chances

It includes a

all.

not

but

bands,

brighter

are

success

lasting effect

a

in the Senate

after it

—

has passed the House—before

the

bill,

bill

tax

Kennedy's

the

earlier

although

the

year

dent

the attractiveness

and

that

economic

the

which

adjustments

they imply are not easily

Against Proposed

The Case

legislative

in

improvements

industry and the full range
having

do

and

debt

of

structure

and

the

Equalization Tax

"Interest
7

Continued from page

persons

million

$55

effect would such reduction have
balance of payments

the

on

the

of

defi-

$56 million arising from

transactions

cit?

outstanding

in

for¬

significantly

deficit

payments

outflow:

dollar

We must

(a)

make greater progress in
economic

assistance

tures

dollars

of

States;

rates,

economic

S.

get at the real bases of

to

in

relating

expendi¬
United

the

We must lose no op¬

(b)

portunity constructively to reduce
the dollar drain from military ex¬

abroad;

penditures

improve
tion

to

our

and

(d)

and

We must

(c)

cost position in rela¬

our

abroad;

competitors

It is the

of

direct

foreign

in

portfolio .investment

the

United States.

clear

from
ban

test

bill

aid

the

and

bills

through

Chairman
Senate

the

nu¬

treaty, the foreign
half

some

propriation
put

House

dozen

will

the

have

Senate.

ap¬

been

Since

Harry F. Byrd of the

During 1962 new issues of for¬

'securities,

eign

equity,

sold

both

the

believe

We

and

debt

proposed

will at best contribute to a

this

Of

way

to understate our balance of

institutions

bill,

proposed
were

and

be

on

plenty

seller of

eral Reserve Bank

They consist,

billion, of which $1.1 billion in¬
volved "dollar payments to for¬

holdings of gold and foreign

are

would

have

been

of eign countries and international
Canada, the largest institutions." Based on what has

the

tax

proposed

issues, accounted for been published on these programs

new

$457 million, Japan for $101 mil¬
lion and Western Europe for $195

for the year

million.

Canadian-

lar outflow arises from the oper¬

ship is expected to give the nod to United States release of July 21,
the

tional

expected

reach

to

October

around

the

of

the

Senate

the

1st,

rights bill. The

stration

leader¬
demon¬

mass

civil

righters

Washington last Wednesday
have

the

effect

legislation

—

of

are

may

the

speeding
though

even

in

there

has yet been no visible change of
mind
vote

by

the

the

on

Senators

who

will

bill.

The

join>

1963. expressed

that virtually all of this

* the hope of both

has

governments that it would be pos¬
sible

have

to

limited

for

un¬

tying

its

chase

of

It may very

somewhat less than its

1962 total

to

assistance
from

goods

further progress,

well be that the Ca¬

nadian exemption will initially be

AID

significant progress in

the

pur¬

the United

States, but there is still room for

issues from the proposed tax.

new

latter dol¬

(AID).

Development

made

Canadian

in practice an

exemption

1961, it would appear

:

what

quite apart from
to

done

be

can

have

our

allies, especially those which are

them,

change;

formal

(b)

currency

ex¬

of

"swaps"

similar bilateral

or

ar¬

the issuance of

(c)

rangements;

special certificates and bonds de¬

ations of the Agency for Interna¬

As both House bills

measure.

of New York.

the Review sum¬
of
(a)
official

as

net balance of new se¬

a

of $890 million.

civil rights

a

well in the August,

very

Monthly Review of the Fed¬

marized

to

will

grants and capital

1963

outflows in 1962 amounted to $4.3

subject

there

Government

scribed

have been de¬

also excluded

countries which

the tax bill, running perhaps two
demand for action

million of the balance of payments deficit.

$102

securities of Latin American

which

months,

dressed to the fundamental causes

the

under

exempted

curities

hearings

(2) The proposed Act is not ad¬

sisted of securities of international

leaving

extensive

it is subject. The^te

$84 million con¬

amount

on

planning

Committee

nominated in the currency

of the

creditor

access

country;

(d)

and

the IMF.

to

These

demands

made

the

by

fenses that permit a

One of these demands

the in¬

was

Another was for the enact¬
a federal law setting $2

year.

ment of
an

hour

third,
tices

"fair

a

ipal

employment

Federal, State and munic¬

governments,

employers,

by

by contractors, employment
cies

prac¬

which bars discrimina¬

act"

tion by

the minimum wage. A

as

and

trade

manded, also,

unions.
access

agen¬

They de¬

to all public

accommodations; the right to vote

(presumably without reference to
any

the

educational test

poll tax);

withholding of Federal funds

from

is

or

States

where

practiced;

works

put
•black

and

all
and

a

discrimination

massive

training

program

unemployed

white,




Federal

back

to

workers,
to

work,

and

they

Japan,

considerably

higher.

$457 million.

of

ter

deficit

de¬

coun¬

without

sures

imposing

new

re¬

strictions, and to apply the basic
corrections

that

needed

are

to

bring international payments into
balance.

reasonable

this

type

not

are

Defenses

an

excuse

of

for

-

-

cit

to

50% of AID expenditures are cur¬

the defi¬

rently being spent on U.S. goods,
and it is our understanding that

securities

Japanese,

Americans

will reduce

significantly

sales

because

of

the

anticipated offsetting reduction of
American

tries. This leaves,

in

coun¬

essence,

only

But

United States.

sales

if the entire $195 million

even

sales

of

were

of

new

European

issues

eliminated without any off¬

set, and this is quite improbable,
the net effect of the proposed tax
on

the balance of payments deficit

in

1962 terms cannot be of

significance

even

term insofar

as

are

outflows arise out of the overseas

military

might favorably affect the deficit.

for

new

the

major
short-

foreign issues

concerned.

So

issues

far
are

as

outstanding

foreign

expenditures

reported

in

been offset

the

of

These outflows

having

as

028,000,000

reached

1962

and

to

are

$3,have

by only $660,000,000 of

what official statistics term "mili¬

tary

transactions"

by

the

of

amount

such

U.

be

offset

in

countries,

the
are

by
U.

military
S.

by

were

foreign

of diplomacy

re¬

would question whether
with

when

warranted

interest

securities

bearing

that

non-

is

the

a

pur¬

and effect of the Act is not

pose

that indicated by its
The

proposed

title.

be

would

tax

accurately described not

more
a

to

applies
other

and

indication

further

at all but rather

tax

as

as

new

a

protective tariff to limit the im-,
portation of foreign securities or,
viewed from the opposite point of

view,

as

duty

a

capital

exports

on

of

portfolio in¬
vestment abroad. So viewed, the

private

to

the

represents

the

movement of
from

for

"tax"

so-called

barrier

new

a

international

free

capital and

retreat

a

policy* followed in the

post-war years by Democratic and
Republican administrations alike,

maintaining and advocating the

or

flow

free

of

capital

na¬

across

tional. borders.

States capital
economies

United

The

(4)

and

market,

dependent

foreign
it,

upon

he seri¬

may

position of the United States

The

capital market in

the only free

as

which

the

which

an

and

amount
issuer

are

market

place

is

dissipated

w

se¬

the

precious

i t h o u t convincing
interest. Be¬

the United

of this position,

cause

effect

in

has

States

na¬

should not be

national

of

reasons

its

only by

a

asset which

tional

terms on

sell

can

limited

curities

the

become

has

banker for the free world and

attracted

a

large volume not only

of domestic United
but also of foreign

States capital

capital. In the

with

competition

international

the importance

socialism,

asset-creating

abroad

is

significant

no

to

capitalism of such a free inter¬
national capital market to which

for

private financing cannot be over¬
estimated.

proposed tax will under¬

The
mine

States'

United

the

unique

the world's principal
international capital market not
position

as

only directly by imposing a tariff,
on
new
foreign
issues offered.
also, indirectly

but

here

by

dis¬

couraging foreign investors from

purchasing foreign securities of¬
fered in the United States market
because

of

imposed

obstacle

the

proposed

the

the United States

market. One of

for¬
of
foreign issuers has

greatest inducements to

the

purchases

eign

dollar bonds of

and retention

the broad and open

been

steps have been taken to reduce

for

non-asset

market

United

States.

producing

such

penditures,
tourists'

countries

private

ex¬

American

as

expenditures

in

(which

(3) The tax is

foreign

a new

to

protective

capital transactions and
inconsistent
with
our
long-

tariff
is

stand

pur¬

matters that involve

the highest questions

more

any

investment

portfolio

expenditures,

tries, and the extent to which they

tax
stock

of

tax on the
drastic marketability of such securities in

amounted
S.
nearly $2^2 billion in 1962).

their distribution in various coun¬

can

if

measures

interference

yvith other countries. Clearly, the

chases

concerned, sales to U. S.

dollar

substantial

Similarly,

we

also

proposed
shares

by

Moreover,

quired,

place where decreased

a

their effect.

temporary

80% target has been set.

issues of European securities

new
as

these

exports to

an

capital markets. The fact that the

try to deal with substantial pres¬

sons

tegration of all public schools this

be

private enterprise might turn

provide

resources

countries,
But for the rea¬ reserve accumulating
failing to apply the conventional
previously
developed
it assume a larger share of foreign" balance of-payments disciplines.
demonstrators, to become effec¬
economic assistance programs. It
tive "now" will not be fully met seems unlikely that any reduc¬
They provide time for these dis¬
in 1963, though some of them may. tion in Canadian, or for that mat¬ is estimated that something over
ciplines to be applied and to have
The

Germany
fo

tend

Finally, without wishing in any

tax

slight

to

is

Finance

The interest rates

ously damaged.

eign securities.

term assets.

ceived

West

the

increase

must

We

attractiveness
ments of

U.

reduce

To

must

we

of

balance

our

interest

our

rate

payments problem, it should be
Americans (that
temporary reduction in our bal¬
noted that the United States is by
hope of the Senate's Democratic is, net of $221 million of these
ance
of payments deficit by re¬
no
means
without resources for
leadership that before the civil issues underwritten here but sold
ducing the accumulation of longmeeting the dollar drains to which
rights and the tax bills are re¬ abroad)
totaled $1,076 million.
request of the Congress.

"interest equaliza¬

an

measure.

prevailing in the capital markets

with

to

credit

monetary,

growth.

Presi¬

was

chief

in

S.

management policy, the level and

in 1962 amounted to only
more than sales
of
on
the
commentators
and
the ment of the short-term effect of
outstanding foreign securities by
the proposed tax is to analyze
newspapers are still giving it pub¬
Americans to foreigners.
If this
transactions in foreign securities
licity and referring to it as a his¬
in 1962.
It is, of course, by no figure is adjusted to exclude sales
torical event.
of outstanding issues of interna¬
means
clear how effective
the
In Congress there is talk of put¬
tional institutions and of Latin
proposed tax would be in reduc¬
ting civil rights ahead of the tax
American countries which would
ing the amount of Americans'
bill. In this event there will be no
be exempted under the Act, there
purchases of foreign securities.
tax bill at this session. As of to¬
was actually in 1962 a net surplus
But assuming that it is, how much
day, it appears the rights bill will
in the American balance of pay¬
had

march

tax-cut

increased,

of investment in the United States

S.

better

revenue

a

a

U.

the

was

the

that

clear
not

is

number of Sen¬
by foreigners be enhanced by re¬ In no meaningful sense can it be
ators would have to change their
lined.
duction in personal and corporate said that the proposed tax will
The President's program in the stand. And it is still questionable
income taxes and other appropri¬ bring about an equalization of the
administration
bill
now
before that any bill will be able to sur¬ ate measures. We
recognize that interest rates prevailing in the
House
and
Senate
committees vive a Southern filibuster at this these are
complex questions and United States, with those in other
of
Congress.
But
the
takes care of most of these de- session
that

had today;

fact

7,000

tax

giving Negroes access

questions

and

tion"

1963," the Treas¬
it

made

public

held in reserve. Un¬

were

up

balance of payments

our

of

type of Negro who participated in

come

recting

U.

Guardsmen

streets

has

Nor is it

reduced, and reduced substan¬

tially, there is little hope of cor¬

productivity,

a

tion Tax Act of
ury

accommodations section, deficit
In
by restrictions on normal of the world vary widely.
to all pri¬
certain
countries,
such as
the
private financial transactions.
vately - owned
hotels, motels,
a n d
The reduction of our balance Netherlands
Switzerland,
stores,
theatres, etc., obtains a of
payments deficit also requires long-term rates are comparable to,
unsegregated decent housing. necessary two-thirds vote to end that the competitive strength
qf if not lower than in the United
they demanded there should a filibuster by Southern Demo¬ the U. S. in foreign markets be States, while in others such as

BERGERON

taken called

National

the

questionably,

The

is

but

It is

the precautions

Marines

big question is whether a

The

civil

turned

had

their homes.

patrolled

it
the

unless

that

clear

be

But

strategy.

military

should

Be¬

all

over,

marchers

the

toward

and

bill is to get through
balance of payments leakage that proposed
at all. Yet it is one of the main
is involved in these expenditures measure.
demands made by the Negroes.

on

three minor police incidents.
fore

Thursday, September 5, 1963

today, particularly if President
accomplished—involving as they
the "public accommodations" section
Kennedy actually goes to work
do such matters as the relation¬
streets at all. (There which, indeed, promises to be the
most controversial of all its pro¬ on some of the Senators via the
matter of fact, only
ship of annual cost increases to
visions. It may have to be elim¬ Federal patronage (jobs) route.

appeared

people

were,

the

if

compromised,

or

civil rights

Ahead of the News

.

..

so

...

(932)

tal

on

policy of freedom for capi¬

movements.

While

the

proposed

is entitled the "Interest

such

are

the

open

to anyone. They are

markets, in which changes in
the volume of business done and

free

in the terms on

done are

ly

which business is

determined predominant¬

decisions taken

by

privately,

competitively and independently.
This is not to say that the govern¬

legislation ment
Equaliza¬

in

they stand, our capital mar¬

As
kets

bonds

or

do not

governmental operations

•

•

presently affect our capital *

Volume

Number

198

6296

markets, for they do. But under
of the sort proposed

tax

a

in H.R.

.

The Commercial and Financial Chronicle

.

.

by United States persons of out¬
standing foreign securities held
States

United

8000, government would enter the

by

capital market

functioning
reaching

in

a

far

and

new

From that time on,

way.

capital market would have to

our

be judged and forecast by people

doing business in it on

in

office

of

what

basis

of

likely to do.
what would
happen in our capital markets as
we approached the date at which
petitive market

are i

Uor example, consider

at

and

CORNER

States

demand)

the

principal foreign markets. A

number of American-held foreign

securities

selling

already

are

at

premiums.

The

other

friend

of

office.

We

in

once

morning

mine

together.

drove

a

his

to

close neighbors and

are

while

a

I

downtown

This

share

we

ride

a

investment

sales¬

Is with another firm and he

man

effect

the

sider

8000

H.R.

in

the market if

on

develop 7 of

to

were

rumors

as

were,

a

aspect

ture

abroad, namely, private port¬

change in the tax rate, or of the

folio

extension to other countries of the
of exemption already pro¬

leaving

hind

posed

for

Canadian

What

we

would

in

have

such

to a
certain extent already as a result
of the proposal of the tax, would
be

what

and

cases,

dominated

market

a

action

ernment

have

we

by

or

by

gov¬

of

rumors

the

In

a

light of the dependence
number of foreign coun¬

tries with economies such as those
and Japan have placed

of Canada

United States capi¬

the private

on

tal market in meeting their finan¬
cial

requirements, the temporary

demoralization
markets
the

is

It

this

at

relevant

and

Government

States

the ordinary course

international institutions, such

International

indicated

as

enhances,

bank

asset

international
the

and

of

pay¬

United

the

of

position

the

loans,

position

balance

long-term

ments

States.

Moreover,

of the trans¬

many

exemptions
in

effect

the

in

Act

proposed

economic

and

purpose

in

portfolio

of the consequences
the o Act may well be &n in¬
in

of

lieu

This

portfolio

well

very

may

effect

adverse

an

and? direct

loans

bank

in

crease

the

on

United States balance of payments

The proposed tax may cre¬ since i a substantial portion of any
of further restrictions. public offering of foreign dollar

fears

United

The

States today is the

financial

leading

to remain

all want it

We

world.

the

of

power

securities

the

obligation

crossers) have stuck in
ory

the

being

of having

and

the key

is widely

which

the

to

world

(7)

currency

recognized

as

a

standard of value and widely used

in world trade and

time

the

quent

but

non

throughout

transactions

exempt

-

tax.

of; the

life

the

subse¬

to

finance-^is to Compliance and enforcement pro¬

strong and free

will

cedures

burdensome

keep

our currency

from

restrictions

must

not, through one device or ing in outstanding foreign securi¬

its

on

We

use.

them

pass

can

on

Sales

One

of the

was

the

that

often

Meetings

lack

of "give and take"
effectiveness

the

mars

He said

meetings.

for

while

a

we

dollar

as

the key currency of

or

create fears that further

restrictions

imposed.

be

may

the

prove

(particularly in the case of trad¬

In

its editorial of July 19, 1963, The
.New York Times stated that while
the proposed tax—
not

"Is

direct

eign
it

to

be

restriction.

In

indirect

circles,

regarded

of exchange

harbinger

for¬

maintain,

an

foreign

be

well

may

many

still
to

amount

with

equated

governments

it

the

as

dollar

eigners
States

influence

may

to

the ' United

in

sell

significant

a

for¬

portion

of

their present holdings of securities
United

of

mated

the

at

amount

issuers

States

to

$27

end

of

billion

(esti¬

1961

to

including

:$14.5 billion of U. S. Government
obligations)
adverse

with

impact

the

them

of

aren't

in

every once

another

on

our

balance of

may

be further weakened by the

dual

price system which will

sult

from

standing

the

tax

States

in

on

purchases

persons

securities,

re¬

of out¬

particularly

equity securities. Since purchases




for

transactions

securities

in foreign

even

qualifying for this ex¬

emption be reported in quarterly
tax

returns

will

impose

a

heavy

a

The

discount

market

eign

securities

U.

the

from

price for U.

S.-held for¬

which

at

S.

U.

S.

could purchase the same
abroad through foreign

persons

securities

without

intermediaries
of

the

tax

unless

transaction
strain

on

impose

may

the

payment

they report the

heavy

a

self-reporting

re¬

sales

market

built

have

office

that

got

manager

usual

he,'gave

and

up

as

monologue

us

|

seemed

never

to

end.

Sure,

of the information he passed

some

along

vital

was

but after

important,

and

while most of

a

I

restless.

came

to

try

important facts,

but by and large, our

sales meet¬

have

we

have

continued, "Why don't
least

at

that

we

meeting

one

can

to

use

a

pass

selling ideas along to each other?
We have

men

in

have been

our

organization

selling for years.

They know how to bring in new

that
get upset, keep the back office
employees happy, use the tele¬
pacify

accounts,

basis

customers

portfolios; and just the other

where

securities

bearer

are

exceptionally,

be

may

difficult.
In

chance

stated

above,

for

the

the

reasons

believes

IBA

that the proposed Interest Equali¬
zation

Tax

enacted.

Act

should

not

then

effects

fall

far

shorj;

a

wonderful

a

only

we

had

the

ourselves,

among

try to help each other

a

of

lane

our

proceeded to dodge

our

as

way

through the heavy morning traf¬
change the subject.

United

the

conse¬

is most

It

quences.

adverse

injurious to

States

international

capital market, a national asset to
be fostered rather than injured.
It

imposes-

hardships

our

on

friends abroad that over the longterm
us

only be detrimental to

can

well.

as

fault finders

born

j ust

.

.

.

the foot soldiers of the infan¬

Possibly

unless

salesman

good

couldn't be

a man

long-term balance of pay¬
position

outlook

and

strong. It would be better to
with

our

proving

is

deal

salesman's

boss

this column he

he

happens

was

to

might find

thing here that

a

present problem by im¬
our

international

com¬

petitive position, encouraging in¬
investment in the

creased foreign

States, reducing our

United

non-asset

-

and ,;;even

abroad

drawings

the

creating
on

International

the

Fund
flow

as

temporary

by
or

rather than

free

position

;

expenditures

of

use

to

of

our

endanger

funds

our

or

the world's banker and

trustee of the key currency

of the

in the freedom of our

ket

cult

is

to

impaired,
rebuild

capital

*From

works for

some¬

does make some

of the

one

Stock

largest, best

crowded

he

He

privacy.

His desk

Exchange.

is j ammed into

space

a

has

said

which is

absolutely
the

other

a

statement

wealthy client called to

very

almost had

that he

no

and

by

Mr.

Means

should be de¬

selling,

to

place

to

office,

to

him.

put

he has

But

I've

seen

a

important,

more

even

his

like it, so
real problem.

this

By

the till."

in

cents

and

I

time

reached

the

for

I

telephone

quietly reply, "Good morning, Mrs.
How

Goldenrocks.

fine,

that's

call

five

and
.

.

pay

always glad to

are

accounts

of

the

And

think

I

George

;

.

menagerie,
waste

of
.

blue

.

with

telephone

the

others

take

with

air

conditioning,

office, and

a

Dawson-Smith
With Tucker,

Anthony
he
S.

Edward Dawson-Smith has be¬

with

associated

come

real producers

the

5 t

make

trainees

in

our

few

e x c

problem

we

of

Then

are

watchers

clock

to

add

have a con¬
clerical help,

of them

many

the

they have in

corps."

turnover

tent

as

during

incompe¬
think

who

they are doing you a favor when
they type out a letter."
He

warmed

was

"Here

time,

thousand

I

up

am,

good
a

by

twenty

year man—some years

a

less. I've been a steady

producer for many years. If my
office would fire half the border¬
desk

fillers

we

have

taking

k

E

x¬

and

leading

h

a nges.

Dawson-

Mr.

Smith

was

formerly with

Leeds

Spear,
6

Kellogg.

Prior
he

S. E. Dawson-Smith

thereto

was

with

Walston

them go and

office,

years,

"peace

but

c

other

have

good,

o

change

back

the

of

the New York

get important

by

City,

members

While those of us

I've seen as many of

stant

Tucker,

York

use

space,

up

accomplished

the

private

a

willing secretary.

office and by the secretaries. Sure,

past

handy

beautiful, efficient,

for unimportant

wait and beg to

come

pills

green

in

bottle

his

keeps

70% of the business. Many

are

some

that

in

foot in the

one

and

and

good friend

works

just think what he could do

.

and

of my

who

basket,

hand,

one

.

unproductive work, and small

work

as

large ones."

Why don't they wake

the clerical help

who

our

serve

efficiently

as

20 men, yet Six of us

over

over

...

have an¬
place with us.

you

other little order to

sinall

Gen¬

pleasure

a

They should look
at the figures.
In our office we
do

enter

thousand

it's

.

anytime

again

the

I'll

order for ten thousand shares

Steel

We

today?

are you

sure

to reality?

have

while

ring,

to

leisurely pick up the phone, and

do to make an Anthony & R. L. Day, 120 Broadw a y,
New
is to fill it with desks

and people.

line

,

have to

you

and

our

parking garage. He went his way,

I

continued, "Why is it that so many

to

and

talking with clients,

folios,

doing business that means dollars

sit him on

others

and

know

the

con¬

tacting, planning, managing port¬

see

top of his desk in order to find a

more, some

submitted

time

my

day

him, and he was actually ashamed

this

it will be diffi¬

to the House Ways
Committee, Aug. 21, 1963.

Overby

voting

scan

known member firms of the New

mar¬

it.

and
some

a

The salesman for that boss

sense.

to

re¬

like

errands

school kid, when I

congenital belly-acher. But if this

piddling orders.
Our

am

balances,

credit

running

eral Motors

salesmen of every breed are nat¬

and

I

securities, making

in

checking
even

of

Clerical Assistance

up

it.

checking

quests for transfers and deliveries,

your

You may rightfully assume that

so

afraid to send it

am

without

out

Why

Better Office Equipment, More

try.

I

frequent

and I went to my nice, comfort¬
suggestion- able, air-conditioned, spacious of-~~
late model sport car fice, where I can relax and wait

in front

swerved

to

is

it

after

first

his

was

just then
we

letter

every

them."

This

office

the

justifying

be

Any probable short-term

beneficial

if

talk

to

"crack

have to learn from

we

another

one

all

world. Once confidence in us and

summary,

What

book".

for
have

who

to

read

written because the errors are so

taking

business

men

cus¬

my

tax

They

securities, yet

how

week to my

a

bogged down with record keeping,

people in management think that

reserves

Policing compliance, particular¬

other

opportunity

information, man¬

obtain

phone,
age

good

a

learned

never

well.

worth

is

that

time

the

know

understand

very

themselves in these

York

pretty dry affairs."

are

month

be¬

us

always

make notes of the

who

and

bonds

exempt

who

men

a

We also

learn

I

and

meetings, I've been attend¬

Monetary

quirements.

ly

bond

while I talk with

salesman;

ments

administrative burden.

involved,

Foreign confidence in the dollar

by United

connection
with
the exemption
prior American ownership and

that

some

something. But when it comes to

of

requirement

employed
for

have

much, but

worth

ultimately for

that certifi¬
cates of American ownership be

resulting

payments.

and

itself.

Treasury

The

controls."

Any diminution of confidence in
the

nation

the

qualification

controls, which

does

of
the

good

missing

bet for certain accounts.

ideas fic, and possibly this caused him

pass

another, impair the value of the ties) both for the security dealers
world

I think I've been

solve

"Dutton, when you and I

me,

talk

to

Now

points he emphasized

of many sales

to

never

I do the

it!

week clerk, waste

a

thousands to

and

two

or

tomers, doing clerical work. I have

learn anything about them.

a

original issu¬

the

of

securities

of

ad¬

applicable not merely

It will be

at

I

my mem¬

to

I

but

years

and

Then he

is

proposed

Thq

ance

(while I

bothered

firm,

foij

ask questions, bring up problems,

accounts.

of the world—of

banker

that

so

be expected to be ings
by foreign dollar

tax
leading ministratively complex.

the

being

of

power

few of

a

busy dodging speedway lane

was

we

financial

Possibly

me.

nuggets he dropped

c$n

purchased

Part of the responsibility and

so.

friend write this week's

column for

dealing in them

$75

am

hundreds of dollars

My

firm has been

I

one

But what do

when I want a

now

valuable

my

told

"puts and calls"

to open certain new accounts.

in¬
ural
ing them for years. Just last week
securities. we had a one hour session. Our like

Indeed, one

have

(5)

to let my

they

going

am

"old-timers"

of the

one

how he used

entirely equivalent to

vestment

of

together

get

usually talk shop—and I

along to each other. Possibly some

U. S.

capital market of the capital

salesmen

two

When

to you.

do direct investment

as

investment.

requirements of foreign issuers.

learn from them.

can

portfolio

above,

commercial

and

given to the financing through the

Bank,

times

investment, unlike tourism, is an

have

ate

of the bank's

banking business..

investments

the

in

made

loans

bank

commercial

are

point to recollect the encourage¬
ment which in years past both the
United

foreign

investment and commercial bank

announced

was

perhaps

for tourism,
investment
and

abroad

commercial

As

ex¬

when

understandable.

is clearly

private

actions that fall within the direct

countries

tax

proposed

direct

while

tariff

securities

the

of

these

in

special

a

unaffected

asset-building expenditure which

government action.
which

through

restriction

for

investment,

'issues. penditures

new

expendi¬

private

of

one

day
me

do

...

work of a

just

week.

a

secretary

Manager, Are You Listening?"

temporary tax such as that pro¬

posed

from

come

I have to

"Mr. Sales

(6) The proposed tax is dis¬ has been in the
security .business
is criminatory.
for
many
years.
I am always
The proposed tax is broadly dis¬
suggested in the proposed legis¬
pleased to exchange ideas with
lation, to be removed.
Or con¬ criminatory since it selects only experienced men because I some¬
a

could

secretary,

the secretarial support

the pay for

BY JOHN DUTTON

extra trades

the

over

hands

prices for the same securities in
their

tarial help, or a private

with
the
a particular
securities
in

foreign

States

United

the

on

as

impersonal forces of a com¬

market

and some competent secre¬

vacy,

(varying
supply of

available
issue

persons

expected to sell

States

United

the

premiums

United

well

as

securities may be

government is likely to do,

what

the

basis of

a

other

valuable space, then give us an
where we have some pri¬

up

SECURITY SALESMAN'S

will be Exempt from the tax, such

influence its

and

17

(933)

&

York office
Cruttenden, Podesta & Miller.

Co., Inc. and the New
of
He

formerly

was

Security

Traders

a

officer of the

Association

of

New York.

King V.-P. of Laird & Co.
WILMINGTON, Del.—Richard V.
King has been elected

vice-presi¬

dent of Laird & Company,

ration,
ing,

Corpo¬

Trust Build¬

of the New

York

Exchanges and other

lead¬

members

Stock
ing

Wilmington

PYphanPPS

~

r"

18

(934)

The Commercial and Financial Chronicle

Nixon to Chair

NEWS
New

•

Branches

New

•

Former

Officers, etc.

•

ing

Stuart

Director

a

of

Bank,

New

Manhattan

•

the

'

*

-^Barclays

York,

'!"•

Bank,

Sept. 3, their
cated

,

.change
I

O.,

.

permit

•

New

will

branch.

undertaking

banking

the
1890

in

New

be

*

*WilIfred

merged

has

capital

Wpttrich,

Y.,

James

of

ing for

Savings Bank
died

*

thorized

Bank,

received

of

.the

'

the

preliminary

change

in

of

shares

on

of

approval

troller

provid¬

the

number

previously

au¬

for

in¬

and

an

announced

the

F

O

a-

new

at Oklahoma

plication

of

;

A

,

>J.,

with

eTx^f.*
Initial

•Monmouth County National
Bank,
Red Bank, Red Bank, N. J., will

...

,.

,.

r

on

The

Sept. 11,

ready
board

of

fected

directors, would be ef¬
vthrough an exchange of

stock.

Under the proposal, which

subject to the approval of the

Comptroller of the Currency, Long
Branch Trust Company stockhold¬
would receive "255 shares of
Monmouth County National Bank
stock for each share held.
•
ers

^ The Monmouth County National
Bank
its

of

tion

June 28 reported
depos¬

on

$100,081,000.

Its capitaliza¬

Capital $2,300,000;

was:

^

California, N.
Calif., it
will

$2,300,-

The Long Branch Trust Com¬

its

of

June 28 reported depos¬

$18,081,000.

Its

San

Charles

be

Francisco,

de

attached

of

today by

Bretteville.
to

the

Loan

Before join-

California, -he

second Vice-President at The

was

Northern

Trust

Company,

Chi-

111.

cago,

capitaliza¬

Calif.,

Sept.

4,

•

named

•

activities

lished

of

its

newly estab-

$700,000; undivided profits $281,000 and reserves
$557,000.

Brogger, who has had charge of
the bank's Corporate Finance

"

,

S:

■

.

.

Willard

s>:~

Perry,

Vice-

head office for the past 18
years.

President of Commonwealth Bank
and

Trust

Company,

Pittsburgh,

Pa., died Aug. 30.
Mr.

March

with

15.

Mr.

Perry

every
was

on

started

rapher and

1913, and

the

Appointed

Vice-President

as

position

in

the

Board of Directors in
*

Trust
will

23,

1942,

stenog¬

in
in

March,
almost
He

1950.

Valley

>■

•

Bank

Penn Towers




Reed

Canada,
O.

of
an-

Office

Prk
Uppenheimer & Go.
Francis

D.

associated

Hilton

speakers

Fenner

Who

H

Cabour
with

has

members

tional

of

Exchange,
research

formerly

the

obtained

in

1

the

will

be

&

Smith

of

on

impor-

institu-

research

Istel, Lepercq & Co.

He

and

un¬

1963 will

drill

and

of

74

1962

weather.
the

Its

pipelines of

share

of

Illinois

about

61%

the elec-

$3

but

year

1954

around

to

the

seems

one)

present
remark¬

a

seefti

in

promising, although the importaht

par¬

effects of weather conditions
must
be

about

kept

with

mind.

should

ers

The

annual

of

continue

around

'

30-

per annum and there is still

for

room

revenues

in

growth in the number of custom¬

35,000

Gas

every

in

Long terfn prospects also

sup¬

reserves

residential

normal

able achievement.
•

estimated at 46 bil¬

was

with

considering
earnings have in¬

that

(in

95c

level

were

completed wells in which it

ticipated

from

development;
had helped

$3 and might be

even

However,

fact

creased

it

wells which

gas

connected to the

exceed

slightly lower,

increase in saturation

an

househeating.v Despite vigorous

competition

ing, 6%; commercial and firm in¬
dustrial, 11 % each; and industrial
interruptible and miscellaneous,

ing, the

11%.

The

heating

saturation

of

buys its

eral

midwest

and

sev¬

pipelines—Peoples

Midwestern

sion

from

gas

Gas

Northern

Transmis¬

Natural

Gas.

Total daily gas supply at the end
of last year was, 715 million
cf and
another
from

25

million

cf

Midwestern

heating

is

for

residential

heat-

company is securing 99%
space heating, 95%
of water

•of

heating

and

business
homes
the

80%

in

(and

broadening and the
pects

to

obtain

from

family

slightly less in

growing

apart¬

new

ment house market).
The use of gas in

sales

range

single

only

rapidly

the

of

new

industry

company

substantial

gas-burning

is

ex¬
new

air

com

on

order

ditioners and on-site electric gen¬

the

for

next

erating heating and cooling plants
using gas. The company is one of

season.

"

manufacturing

information

from

the

be

may

Convention

at

reservoir

be

ficulties
On

of

Investment

Clubs,

Ancona.

the

Troy

A

as Soon as

are

finally

Herscher

of

25%

and

total

the

gas

distributed.

successful
with

Ju

„r

T

Pa.— Paine,

,

& Curtis,

b^rs of the New York
ckanSe

and

other

mem-

stock Ex~

leading►

ex-

^aJ?S^s>
,-uirt"eir

ai?4nounce that Harry J.
now. assoc^ated
Philadelphia office, 1400
Penn

Square,

tered representative

as

in

regis-

a

their

p

^

m

t,.

&

Co.,

has been active in the
business

ties,

Inc.,

the

dividend rate from

$1.52

end

.was

ritory). Some
were

area

tomers

and

ings

115

M.

com¬

industrial

added, with the
development

011

com¬

program

expanded scale.

during

enjoyed

cus¬

heating

over

the

the

cus¬

54,000

benefit

(to

Earn¬

year.

of

15c

a

branch

Broadway, New

'/V."
-nsHesi'}

.

of
-

in

the

from

The

Frank

/

about

year

This

year's

by

depreciation

an

rate

will

be

required

equity ratio
52%

The

tax
tion

12

months

ended

July

31

per

is

July
The

year.

March 31,

probably

p a n

are

1963,

some¬

y's

accounting
with

conservative,

normalized

vestment

tax

normalized.

turn

on

net

are

the

and

credit

The

rently earning

a

the

3%

in¬

substantially

company

is

cur¬

high rate of

re¬

plant, but rate reduc¬

being initiated, and

return

reflects

some

abnormally

cold weather conditions.
stock
on

has

been

selling

dividend

yield is 2.8%.
ratio

re¬

the Midwest Stock Ex¬

change around 61. Paying
rent

continued in 1963 to date. For the
\

this

in

financing

savings from rapid deprecia¬

The

rapid gain in earnings has

re¬

mortgage

now.

c o m

methods

$90

public

of

as

but

lower

which

issued

was

con¬

involve

will be

million

further

cently

2.9%

$20

issue

increase
to

A

for

money

no

was

will

million
new

and

earnings

2.5%.

coming 5-year

program

$200

quired.

what

growth

amounting to $48 million

million in

bond

rapid

heavy construction

a

this year. The

tions

January this

will be reduced 9c

office

company's

program

of

York City,

management

Curry.

The

has entailed

due to cold weather but the
record

should give a similar
fillip to 1963

opened

first
completely auto¬
multiple-module total gas

energy system in the U. S.

cold weather in

past

Diamond Doorley Douglas &
Co.,

manager, under the

$1.68).

the

year

350

increased

548,000)

Opens N.Y.C. Office

at

the

serving 343 communi¬
increase of 26
during the
(including Allied Gas ter¬

earnings.

have

of

now

The number of
gas

years,

Inc.

(and

an

continuing

investment

for

the

up

was

year

,

Curtis, Mr. Kirby

Blyth

the

pany

pany's

joining Paine, Webber,

&

At

very

41%

to

tomers

In-

stitutional Department.
prj0r to

$1.40

a

Company,

13%, per share
higher and an in¬

in

crease

wag

for the

year

revenues

earnings

the

struction

Nineteen-sixty-two

Joins Paine, Webber

tain

matic,

up.

last: winter

furnished

19%

legal dif¬

cleared

coldest -day

Grove

proposed

Crescent City will

near

developed

Registration Department, National

&

York

department.

to

end

Association

become

New

exploration
the

another

Further'

.

securities

Oppenheimer

times

S.

residential customers is 70%. The

j

t

will speak

aircraft

office, of
-

charges

Underground storage has been the leaders in
developing the ga$
and aerospace
industries; George an important factor in the com¬ turbine for these
purposes and has
A. Nicholson,
Jr., Smith, Hague pany's highly successful sales rec¬ equipped its new
headquarters in
&
Co., "Detroit; and Sidney B. ord. It has an allocation
Glen Ellyn with turbines which
of 31%
Lurie, Josephthal ' & Co., New in Peoples Gas Herscher
Dome; light, heat and cool the building.
York, who will speak on "The it also owns its own
Troy Grove Its new general office building',
st0ck
Market
Today — and project and is beginning to use also recently
completed, will con¬
Tomorrow."

Co., 5 Hanover Square, New York

for

their

associated with the Philadelphia

•

Ormcml-imrYinv

was

hold

developments

,

-

in
at

Etherington, President Gas,

Incorporated,

Hunt, has

Director.

a

p ,
y .
Gabour Joins

•

Stock
&

In-

of

American Stock
Exchange;
Archangelo j Catapano of Merrill

Jackson

City,

Company, Philadelphia, Pa.,

open its

that

Bank

on

Frx

bank.

$

Industrial

nounced

been elected

elected to the Commonwealth

The

Imperial

Executive

a

worked

50th

bank

Jan.

messenger

had

sjs

Canadian

Commerce, Toronto,

Perry, 66, observed his

anniversary

❖

The

depreciation

heating; residential without heat¬

•

South

Department at the San Francisco

*

Executive

frigid weather

likely that earnings for calendar

production and explo¬
company, NI - Gas Supply,

company

,LynCh;: pierce,

1950

participates with other companies

are

Cit

Webber, Jackson

Leasing Division.

due to the

was

for

How much of this

ih

higher

small

ration

a

He is Vice-President Neil C. O.

was:

staUer

the

D

A

since
three

over

that of the U.

Northern

America, San Fran¬

Capital $200,000; surplus

tion

Among

Senior Corporate Finance Execu¬
tive to head the notrhern Calif or-

nia

will

increase
or

double those of 1961.

11

Washington Boulevard Bldg.,
Detroit, Mich. 48226.
of

1962.

$2.65

January is hot clear,, but the
increase
was
effected
despite

population
Northern Illinois,

being

*

1300

Bank

and

gain
v

a

lion of gas and 1.2 million
barrels
of oil, both figures

A

Clubs

tronics,

ap-

sur¬

000.

on

A.,

announced

ihg The Bank

cisco,

pany

been

Vice-President

Supervision Section.

$1,283,000;
;

was

President

The

reserves

Assistant

A<

Lines.

a

tance to the investor in
•

has

at the Head Office of The Bank of

plus $3,200,000; undivided profits
and

*

Wineman

1

.

the

Edwin

c
San

r
of

^

Jl#

*

B,

pointed

He

at

reCent

_

Paul

Air

1 ? Prvntj

n q

New York
:

M onio.

proposed consolidation, al¬
approved
by the
banks'

is

Wti
i"b I
Lackland vTo
National Bank

william

United

of the

^ankrWll ^ountto ^°°^00, and

ings

-ri vi

19

new

<be submitted to both banks' stock¬

months

appears

the

74%

pliers.

annual Convention Oct. 17, 18 and

...

capitalization of the

holders at separate

special meet¬

gtan

and

of

vestment

Antonio,

The

12

calendar

$175 million recently.

3,240,000 in

growth,

of

McCabe

The National Association

^

N.

of

Benjamin

VJUIIV

!;i

Branch,

1954: to

The company serves

award

Cagh

..

value of $5 each, to $623,- .for the organizers.
'992.50 consisting of 249,597 shares
of the par value of $2.50 each. '
The Comptroller of the
Currency
tjs
on
Aug. 27 announced preliminThe proposal to consolidate the
ary approval to organize a new
Long - Branch Trust Company,
San

in

in-

j

.

Cq

r

28, 1963,

in

the

Thomag

/ni

The ap-

Bank

Company

vious

annual revenues from $62
million

;Unitedb States

the

Qf
Begister
c

by James F. Davis, correspondent

National

of
slo

ilHV. (jlUbS ASS

group

filed May

p.

Qf

gc()tt

disapproval of

City, Okla.

was

in

^

par

Long

Fairlegg

Patterson

National Bank charter

new

a

Gas

pre¬

Edison in 1953, has
enjoyed very
rapid growth with an increase in

being

Motors. Cor

Airplane Cq

Comp¬

the'^application of another
for

award,

steel Corp.; Thomas J. Watson of
International Business Machines
Corp.; William Allen of Boeing

$600,000, and

time,

Year

specialize

Alfred

General

Oklahoma City.
same

America

include

City, Oklahoma.

the

recipient of the

the

Previous winners

Currency

in

At

of

North

operand under the of
Southwestern National Banktitle

Brook¬

approval

$445,consisting of 89,142 shares of

Y10

'

„

of

Illinois

Northern Illinois Gas, which was share
earnings of $2.99 have just
"spun off" from Commonwealth -been
reported vs. $2.73 in the

dustrial real estate.

'

it will be

in capital stock from

crease

e
1 e

Initial capitalization of the

*

State

value

t

J.,Saxon,announced

27

homa

Aug. 31

Incorporation

a

par

"

19

excluding Chicago which is served a rate reduction
equivalent to 7c
by Peoples Gas. A new
subsidiary, a share for calendar 1963.
An¬
Allied Gas; serves 11
communities other rate cut of about
0f the National Association
$1' million
in the same area. The
many sub¬ a year, primarily for heating cus¬
of Real
Egtate Boards
The So_ urban
communities near Chicago
tomers, was scheduled to become
c]ety's 994 members throughout
have
enjoyed rapid population effective July 1.
It

f.n ^PPhcation for Bank organizathe
tion of a National

^Certificate of Amendment of Cer¬
tificate

for

remains

bank will amount to

*

N.

„

Comptroller

Chair¬

Board

Brooklyn, N. Y.,

lyn,

structure

bank

^

into

]at the age of 66.
Central

by

Sept.

on

standing industrial executives who
jiave been nominated
by members
of the Society, a
professional af-

i*s

of the Lincoln

The

p an y,

National

a

Northern

Waldorf-Astoria

York

OWEN ELY

leading

The award board headed
by Mr.

$403,972.40.

same,

Aug.

*

into

12

Nixon will choose the 1963 winner
from more than a score of out-

management under the title Fust

The

the

New

1963

ap-

The

National Bank of Arclibold

York,

,the Barclays Group.

and

Ohio,

operated

,

subsequently

30
of

its

^originally by The Colonial Bank,
which

Aug.

on

conversion

will

in-

at

in

of

BY

Richard

a meet-

presented annually by the Society
0f industrial Realtors.

The bank

de-

of

representation

maintained

man

Saxon

the

converted

Since

been

J.

Archbold,

all

PUBLIC UTILITY

professional organi-

to select the

*

will

business

acceptance

*

Peoples State Bank Com

posits.

In

*

Banking Association.

of

heads

Industrialist

proved

be

Thursday, September 5, 1963

.

-

on

The

status

agency

Philadelphia,

Hotel

Comptroller of the Currency

James

York office lo-

full

a

the
of

eluding

.

City,

the

zations

Boulevard

Sept. 9.

effective

Broadway

as

from

•.classes

.

it

Pennsylvania

Center

The

C.

D.

new

120

at

conducted

•

in

❖

;VYork,; announced that,
.'

Chase

1801

,

r'

.

at

been

announced Sept. 4.

was
V

has

Saunders,

of

business and

,

T.

Vice-President

capitalization,M' Nixon will preside at

Reviml

;

i elected

.

Industrial Award

BANKS AND
Consolidations

;

.

based

rate

The

on

of

a

cur¬

$1.68,

the

price-earnings

the

earnings

$2.99 for the June year is 20.4.

of

Volume

6296

Number

198

.

.

The Commercial and Financial Chronicle

,

national trade in the years ahead.

further

the

Despite (the

Updating Our Domestic and

devolve

upon

have been

World Economic Policies

improvements

volume

of

rich

our

Thus,

should

10

page

element

long-term savings that
economy

again,

once

most

The

important measures we

take

can

to

protect

system tends to impose deflation¬

balance.

financing of

and

Other

Elements

Balanced

of

of

•

Payments Program *
The Home Committee

■

Bank¬

on

ing and Currency, is familiar with

recently

measures

represent

the

other

the

President's

ments

balance-of-pay-

for

to

us

there

and

program,

need

in

included

measures

is

no

them

discuss

at

length.

our

problem.

payments

blind

a

has

not

alley of crisis

which

sacrifice

would

world-wide economic and po¬

our

litical

objectives

balance-of-

for

payments reasons. To weaken our
defenses,

overseas

aid

restrictions,

to

The Depart¬

Export expansion.

has underway

vigorous

a

export

of

program

financing and insurance are now
available

improve

American

to

Increased

exports

exporters.

only

not

will

balance of payments

our

but will contribute

directly to the

strength of demand in the domes¬

January,

imposing

by

change

controls

direct

ex¬

Federal overseas
expenditures will be re-

dollar

not the

are

sarily
nate

a

in

dollar

the

would

we

in

and

has

deliberately

lays

under

dollar

overseas

defense

our

out¬

program

In

measures

nor neces¬

avoided

Balance

of

such

additional

an

measures

worth.

their

would far exceed
-

But

in the modern world characterized

In

countries,

Monetary

the last 2V2

System

nerable

crises

to

and

to

provide

facilities for dealing with specula¬
tive attacks

national currencies.

on

neces¬

expenditures

curement,
These

tying
S.

U.

to

reduced

and

other

of

costs

will

amount

additional

from

come

AID

$200 million in

further

substantial

Federal

overseas
programs.

will be accom¬

reductions

plished without weakening the ef¬
fectiveness of

our

programs.

Investment by foreign

:

securities

the

of

of

slow-acting and since the func¬

tion

of, official

the

serves

is

reserves

to

fi¬

required.

are

re¬

Moreover,

potential payments im¬
will

increase

in

size

as

world income and trade grow, re¬
serves

must expand

steadily. In

re¬

cent years,

and

markets, in the

ar¬

ad

for

sources

in'

exchange

pooling arrange¬

dealing with speculation

London

the

in

gold market,

and

coordina¬

generally improved

S.

U.

tion.

has been possible to deal with the

Through

it

devices,

these

firms.; The President has directed

speculative

the government to cooperate with

curred in connection with the re¬

the

valuation

in

financial

private

developing

community
for

means

new

en¬

couraging: foreign. investment
be

celerated,
can

cent

which

trend

in the

reversal

a

found

has

eign investors reducing their in¬
in

vestments
IMF

above

deficit

the

payments.

portant

designed

in

balance

our

In addition

new

im¬

an

has

measure

to

been

taken to aid in financing that def¬

icit.

Under

now

unable .to

its

payment

of

been

time

def¬

in

dollars

re¬

indebtedness

the

nations.

Under

the

of

new

pool

made

These

notable

are

draw

continuing
deficit

to

extreme

actions,
to

and

giving

the
hold

currencies
dollars

;

In

wish

and

indebtedness

the

to

addition

nations

to

to

pay

off

Fund.

the

to

which

this

important

action

step

in

time

solution

to

represents

an

strengthening

been

bank

of

"crisis"
dollar

crisis

prospect.

drawing
But

today

our

there

rights

as

there is

nor

is

one

a
no

in

Use of the Fund at this

time by the United

lines

now

tendency to regard the

measure.

States under¬

belief that




its

of

pay¬

facilities

techniques of

cooperation

worked

out

in

in

are

Europe

—

that

the

by

cen¬

have

past two

have been

feel—and

we

shared

adjustments
of the

con¬

feel¬

our

many

IMF.

generation of

officials

that further changes

in

to

open

any

The

the

future

if the system is to be able to meet
the

needs

prosperous

of

an

world

expanding
economy

and

and

a

proposals

new

advanced

'■

>

■

other

V

.

development of

international

by

and

not

of

entirely to

reserves

The

current

U.

S.

problems.

payments

Other

get into surplus, and

we

selves

we

our¬

expect the periodic

can

re¬

system,

monetary

that

process

time.

however,

will

is

a

inevitably take

reached

countries

participating

the particulars of the

on

to

be

settled/

Moreover, it

cannot be looked uppn as a solu¬
tion to
as

our

immediate.problem,

substitute

a

for

cedures,

seems

Gold

of

reserve

increments

of

dollars

to

will

succeed in eliminat¬

Under
S.

past

surplus

pro¬

would

on

from

monetary

ar¬

rangements which provide greater
that the growth of world

assurance

will

reserves

and

come

trade

pace

but not

to exert

as

influence.
that

keep

with

in¬

deficit—although

its

available for

grow

were. now

continue

We

to

in

must,

take

pru¬

the

latter

readily

are

when needed.

connection,

stand-by
IMF is

In

ter of

course

of

a

crisis.

a

country is in

implying

the

the

question

systematic

of

a

for

reserves

to

the world's needs, it would be de¬

sirable to share with

burdens that
centrated

on

to be

reserve

and

the

cies

now

reserve

United

con¬

States

and

Progress has

disruptive

from

reserves

between

and

reserve

one

another,

speaker at
The

luncheon meeting of

a

Philadelphia
to

be

Securities

held

As¬

Wednes¬

on

'

Rubin
ton

Hardy of The First Bos¬

Corp., is in charge of

arrange¬

ments.

,

Slade, Others Join
Nemrava

Co.

&

Colo. —Russell

James

Bates,

and

W.

Allen

to

adapt national

objectives. Therefore,
be

should

icies.

made

of

effort

every

increase

to

the

national fiscal

associated with Nemrava

it becomes

taneously
ance

of

-

easier to

pol¬

quickly,

adapt simul¬

domestic

to

has

;

Capital

number of

a

recently

bal¬

and

example, if the tax cut pro¬
by the President were

posed

al¬

ready in effect, there would be a
stronger case for an increase in our
interest rates

with

been

and-

Corp.

Investment

Amos C. Sudler & Co. Mr. Davis''

formerly with,

were

with

was

Schmidt,

Cabe>& Co.

Mr. Bates

Mc-

Sharp,

J

.

v

;

White i &; Co. Opens

has

offices at ;

with

formed

been

C

Ore.—White & Co., V

PORTLAND,

3817 Southeast Belmont, to engage
in

securities

a

and

White,

Raymond

and

president

,

president,1

vice-

White,

D.

>

Officers

business.

L.

Donald

are

B 01 h

secretary.

formerly with Francis I. du,

Pont & Co.

Bache Lecture Series

-:

rppolitan
New

invited by the;

are

Stock

York

as

means

a

action at the present time to meet

firm.-

Exchange

of Bache & Co. to attend two lectures

to

"fa

on

,

triple check approach

market."

the

Designed to show how knowl- '

edge of fundamentals, techniques
and

timing

metn

improve invest-,-

may

lectures will be

the

success

given

Thursday

and

Monday

on

evenings, Sept. 9 and 12, respec-

in

tively,
tioned

office

branch

Avenue at

7:30 p.m.

.

& Co. of-*

is

Klein

Joseph

which

of

724 Fifth ;

at

each night.

be made at this Bache

fice,

*

reservations may

for

Requests

.

air-condi-;

firm's

the

of deal¬

ing with our balance-of-payments
deficit. The need to take monetary

the met- '

traders in

area

payments requirements.

-

&

Mr.*

Slade, who has been in the in-vestment business for

•

be adjusted

can

Davis

Go,, Denver Club Building.

mone¬

If both fiscal and monetary

policies

Slade,

F.

Lloyd J. Harty, Jr., have be¬

Manager..

intensifies

lems

vigorous

tax

problems

persistent

need

the

action to

domestic

of

employment

offers

economy

basis

for

full-utilization

and
us

mastering

of-payments

soundest

the

balance-

our

in1

problems

currencies

and

Named Director

for

meet the

way

a

PHILADELPHIA,
J.

McGinnis

we

need to

clarify

Co.,

the

nounce

Pa.

—

president

McGinnis,

Patrick

food brokers,

election of

an-

of

directors.
Mr.

of the

is

Rambo

a

investment

vice-president f
securities firm

Inc.

•

r'X-;

•'

Appointed Manager
WHITE
III-VI

Parts

inclusive

Stock

by
Dr.
Heller
before
the
Committee on Banking and Cur¬
Washington, D. C.

Now Charters &: Co.
MIAMI,

Fla.—The
Charters

&

firm

Co.,

Pont

Plaza

changed

to

Center,
Charters

name

of

Inc.,

du

has
&

been
Co.

Miami. Inc.

'

k

the .New

Sept. 4 an-..
that Edwin D. Pollaine -

been

on

appointed

Manager

the firm's White Plains

of

ciate
the

Pollaine, who was an assomanager

last year

ciated

of

office, 222>

Avenue.

Mamaroneck
Mr.

Kempf,

York

ol

Exchange,

nounced

has

,

;

members

Co.,

House

£

PLAINS', N. Y.—Bache &

of

Statement

rency,

-

of Janney, Battles & E. W. Clark,

the free world.

of

1

Joseph S.

fully consistent with leadership in

text

■

H. A.

of

Rambo to the company's board

o/-»

And

Sym¬

the

ington Wayne Corp., will be guest'

Investors and

or

gold, but still further protection is

steadily growing volume of inter¬ desirable.

H.

W.

—

of

more

tenden¬

result

may

currency

between

difficult

become

tary policies primarily to domestic

♦Full

Kingdom.

eliminate

of

increasing capi¬

mobility, it has

currency

been made in developing means to

that

ble currencies and
tal

rec¬

other indus¬

pressures

tend

now

countries—the
the United

the

the

Pa.

President

world of converti¬

ex¬

provision

adapting the growth of

countries

Bateman,

were

a

balance-of-payments unemployment and underutiliza:;';: tion. In the final analysis, a full-

from

Apart
more

of the

resources

when

without

istence

S.
the

be drawn upon as a mat¬

can

Lunch

to establish the' urgent balance-of-payments prob¬

principle that the

deficit

U.

significant step forward,

since it will help

IMF

the

arrangementwith

a

deficit.

our

Finally, it is important to

so

inflationary

an

reserves
use

Ass'n

at

or

effective

more

a

situation.

present

For

We also need to insure

existing

Sees.

PHILADELPHIA,

balance of payments

our

flexibility

reserves.

clear that all countries

would benefit

Phila.

.

attack

inadequate and ognize that, in

actually shrink worid
It

which

need.

source

U.

a

to

the

deficit.

our

•

To Hear

determined

a

relation

ing

plan¬

ning.

Amos: C. Sudler & Co.

tails

little

we

with

associated

now

improvements to be adopted, and
and Mr. Harty
there will be many technical de¬

bear

holdings

director of research

as

years,

the

among

with

foreign

them

Agreement will have to be

factors

stop when

is

come

Strengthening the international

chance

and

Mon¬

E.

talette

of deficits.

currence

upon

growth,

Pierre

DENVER,

rely

undependable

Exchange, havq,

that

deficit will

dent and responsible action to deal

an

Stock

day, Sept. 11, 1963, at The Barclay

countries is to

is

York

announced

Hotel.

is

the end of world balance

mean

gold production and to the deficits therefore,

production

New

improved

economy.

payments

Broadway,

120

system

an

monetary

world

Co.,

City, members of the

important to the long-run expan¬
sion of the

&

York

sociation

operation might help the U. S. in

country and another, between one

in

own

payments system.if ft

shifts

needed

our

re¬

leave

tem

be

within

the

the

To

in the international
monetary sys¬
will

pro¬

studying them

we are

both

con¬

of reserve currency

trial

and one-half years

ings

exercise

t h—meas¬

balance

our

But while the

tral

structive,

a

g r o w

constructive and lasting

a

nancial

has been

accel¬

and

Which, when fully in effect,

promise

immediate

Until

bring

to

measures

unemployment,

productivity,

the Fund's role in international fi¬

affairs.

resort

costly restrictive
us

economic

of

ments problem.

help which this gives to the United
States,

balance

constructive

bear

ures

sell

mone¬

without

deficits, and from

con¬

possible for the U. S. to
a

payments

erate

and

accomplish¬

tary system, they have helped to

foreign currencies from the fund
dollars

use

hoc

rapidly

bility of the international

in

exchange for

for

tinue.^By Contributing to the sta¬

increase

to

currencies

continuing and will

scope are

which will reduce

enabled

$6

to

up

ments, and efforts to extend their

States

be

of

available

stand-by arrangement, the United
will

re¬

of emergency.

finance

accepting

by

other

has

special

the

of

the

Through

convertible

of

make it

in the financing of the U. S.

icit

billion

rules, the IMF is
assist

Fall of

the Cuban crisis

1962.

additional

an

continue

to

the

and

arrangement in the IMF,

sources

in

country.

are

measures

October,

negotiation

stand-by arrangement. The

reduce

of

this

oc¬

1961, the Canadian exchange crisis
in

for¬

mark

crisis in the Summer and

in mid-1962, and

re-

which

guilder in March, 1961, the Berlin

ac¬

is

As investment becomes

expect

the

the

as

economy

our

attractive in this country we

more

i

effective

increasingly

in

This effort will

the United States.

expansion of

<

outbursts

of

S. payments

"swap"

intervention in forward

ment for

U.

its

government and in joiint delibera¬

inevitable deficits that

felt, it follows that large

techniques

currency

rangements

in

savers

private

eral Reserve System in the devel¬

of- opment

pro¬

But

Reynolds

countries will have deficits when

Since the basic corrective forces
are

itself

has

years, much

these forces

continue while the discipline of
these corrective forces is making

Long-Kim Evolution of the

of

judgment

a

by domestic policies aimed at the elimination of the

nance

International

flexibility

at

countries.

strategic

for

payments

posals.

carefully,

imbalances do set in motion basic

the growth of reserves
Central banks of the leading in¬ has resulted
primarily from gold
materials; dustrial countries have cooperated
production, from increased foreign
acquired from foreign sources. A with the U. S. Treasury and Fed¬
holdings of dollars generated by

and

arrived

initiatives

balances

the

over

payments

tional monetary system less vul¬

in

appropriate

measures.

us.

for such

pay

increasing

operations. U. S. officials have not

sarily work slowly.

price

IMF,

an effective way to elimi¬ tions with other interested coun¬
deficit and the United States tries. Moreover, we remain fully

since the

occur

deflationary

cases,

been done to render the interna¬

$300 million of this reduction will

g e s

which they have little control.
such

duced by approximately $1 billion
More than

a n

Reynolds & Co.
New

cerning the merits of specific

h

c

Montalette With

num¬

yet

hardly increase world-wide
The

the

and

scope

of

fidence

meet

A

deficits may also frequently arise

from the level of 1962.

i

through

all

con¬

to

from

structural

as

ber of these proposals would oper¬

ments deficits, though they would

measures

system

all of these needs.

balance

such

—

that

well

as

improving the interna¬

monetary

maintenance of high employment
and reasonable price stability in

By

1965,

tional

some or

corrective forces working through

convert¬

progress toward currency

ibility

case—

hard-won surplus and deficit countries.

negate

to

a

price and income changes in both

tic economy.
Federal expenditures abroad.

in¬

our

In addition, improved might temporarily reduce our pay¬

promotion.

payments deficit results from

import

splash

increase

to

program,

'

ment of Commerce

of

ent U. S. situation is such

Administration

measures

balance

a

the

proposed

the

Such pressures are

when

surplus

Many proposals have been ad¬
vanced for

the modern world—and the pres¬

But

taken

which

reacted favorably to

of

the

in deficit.

appropriate

countries

on

ate

determined effort to deal with

t:

pressures

flation. But for major countries of

balance
-

pay¬

ary

responsibilities

deficit countries.

upon

Foreign financial

policy

taken

payments

our

the

normal

a

as

this innovation.

'President's tax program as one of
the

in

circles have

the

see

we

employed

deficits.

ments

generate.

can

be

that

introduced, the present

are

Continued from

19

(935)

with
Tir„n

of
was

■

office, for
formerly asso- ;
the

Bache's headquarters
10

20

(936)

The Commercial and Financial Chronicle

As We See It

led

precise meaning of which n(o
has

one

undertaken

ever

to

determine. It has become sac¬

rosanct; it is not to be
tioned

or

ques¬

examined

even

change

Continued from

too

1

page

the

liberal others

so-called

elements which

from the

run

soft-hearted

mind

the

to

little evidence in actual prac¬

of

that matter

in

the

union

ganized labor is in
to

on

or¬

nonsense

dealing

What

Cash Flow
public officials
But no one needs to stop at that
legislators for not doing
all things which do not appear to point for a new wrinkle seems to
be becoming the vogue to minimize
the meet with wide public ap¬

hands
as

with
have

we

laws

those

are

practices

place the

the

in

strike,

which

from

more

event

known

in Congress

men

has

called

beginning

and

do

try to

lead

ment

the public rather than

cerned

law

leads

en¬

Now,

of

This leaves

the

it

shoulders of

us

course,

is

use¬

and

file

of

the

the

with

problem.

voters.

onus

alarm

the

man,

employ of the struck

con¬ his
cern but in most instances do...

-teeth

eye

cepts

knows

well

enough that the railroads
not.find, it advisable to enter, have been obliged since time ;
the grounds for the purpose out of mind to
pay out mil¬

and

procedures

is

tending

credit

collection .policies, the
officer/ needs to have
,

"

work

at

or

partrtinie. work.
of these pro¬

most; only

Every

one;

things that would be many

•

of

•

business, firms,
most

I -sometimes,

despairingly,

.

my

whale

It to

ad-

minister, the common denominator

the

have

integrity and productive, and

consistently ficials are well aware of these usefulness of Our
money,
then
meaning of or¬ facts, too, but for them there leadership from those less well
dinary words beyond recog¬ is always the hope that the equipped by their occupations to
the

nition in order to find
the" acts
within

by

the

some

pickets

law.

and their unions

The

to

of F

have,

more¬
or

d

e

and

Government will

take

meet

of

out

vir¬ else

tually exempted, from all of

1

e r a

be either

pickets

been exempted,

over,

the

operating

the

public

subsidize

that

they

roads

can

is not

so

indicate

the

deficits standing
or

roads

so

continue to pay

rational prospect.

a

Perhaps I have said enough to

over

purse

the

do

financial

breadth

think

I

officer

it

of

under¬

well

to

for

the

cultivate

and

several

the

corresponding breadth of

portunity and obligation that

op¬

goes

restrictions

Solution at All

nationally organized or na¬
tionally cooperative, so that
they can bring unbearable
pressure upon

employers who

must be careful not to

act in

conjunction with others who
are

competitive with them in

order to

gain something like

to

It

is

be

called,

All

in

this

the

connote

"right"

what
and

in

not and in its

very nature can not do

more

than postpone the
day when
either the railroads are told
that

they

must

out vast

continue

to

be

of

included

collective

the term is to

partly idle employes
that

the

manded
an

practice
strikes
labor wants

does, and what is toler¬

employees
to

idle

It may

until
are

or

are

else
com¬

such

time,

as

again quite lawful.

be,

as

many

are

and

abuses

by large could

do

to

powerful employers, but otherwise
all

ment
a

its
is

extreme

definitely

develop¬
a

trend of popular




passe

product If

terminate

threatening

say¬

or

such

is

the

going
the

I

con¬

for

concepts

and

of

profits

is

are

and

as

illuminating measure of

an

corporate health

I

definition.
as

ment inappropriate. to the partic¬

of

originally

believe,

analysts. It has

so

well-being. It

or

measurement

a

vised,

different

•

indeed surprised that cash

am

one

its

be led astray when a measure¬

be some non-business

may

r groups who feel that their selfinterests

might better be

the obvious

to

needs

,

hard

no

Mostly

being ; the

de¬

by: -security
and

fast

it
of

sum

is regarded
profits

and

depreciation cost—about which

depreciation,
of

ure

provide

may

a meas¬

management discretion

to

served

begin to count incoming dollars

In

try

to

to

be

outline
where

some

of

confusion

dissipated by clarifi¬

accountants and used by financial
officers are too often misused or

by

others.

They

and

of

concern

especial

are

but

they

secured.

been

Facts

and

stead

they

display

•

We
the

might just

confusing

profits.

The

as

well start with

of ideas about

array

confusion

the

mis¬

apprehensions, the misrepresenta¬
tions, the emotions, the contro¬
that

versies
of
It

profits

are

indeed

is

to

enshroud

im¬

not

regarded
a

ment.
has

hard

a

The

one

The

not

hold

accounting

profits.

to

up

called

item

an

profit. In¬

or

might

"profits
approxi¬

an

mately double-size figure vis

vis

a

Certainly

no

bearing responsibility for the

results

of

business

a

consider

could

the

term

it

of

measurement

enterprise
legitimate,

a

profits.

tends

In

fact

confuse

to

in which

manner

the

certain

a

cost—

the income tax—is computed with
the

fact

is

that,

regardless

computed,

other

under

definitio

imagine,
might
how

n

accepted

any

be

can

that

surprised

be

I

shown.

nevertheless,

all

we

learn

to

people have gained

many

quite

cost like any

a

that mustr be met before

one

profit

any

how

of

it is deter¬

once

mined, it becomes

notion

exaggerated

a

the

of

true extent of stockholders' profits

in

America
the

due, at least in part,

careless

tentional

publicizing

which

those

by

test

deception.
the

on

anyone

taken in,

As

extent

have

may

part

to

been

of gross national

thinks

corporate

is

represented

dividends;

then

to

as

know

what

profit

is

or

to

be

a

loss

is

accounting

definition

of

he

see

look up the actual figure and

how

facts.

he

came

people

will

to

be

the
sur¬

prised to learn that the figure is

add

profession
a

need

different

taxing authority has still

nrofits.

3%. This

for

can

publicly

accuracy

emphasize

establishing

about

recorded

back taxes

to

as

profits.

'

The

misuse

this

of

measurement

be

may

of:

type

partly

at¬

tributable to the vocabulary quirks
in

which

the

indulges
preciation
those

as

is

of

perhaps

funds,

then

can

those

"The

say,

had "better mind

we

that the
cash

of what

the better!" So

source,

language,"

mothers

as

our

used

The fact is, of

admonish.

de¬

that depreciation

well-informed

bigger the

of

of funds. If

to know

say

source^

a

fraternity

speaking
source

a

supposed

they speak
less

financial

when

to

course,

only continuing source of

that

firm

any

which

to

sales

receipts

cover

all

has

its

of

out

costs

from

Among those costs

its

is

customers.

the prepaid

are

expenditures for facilities. It takes;
a

long time to get them covered.

Depreciation is the record of their
cost

that

slowly being covered. To hold
big depreciation cost in the

guise of big cash flow is good for
a

is the

company

same

saying'

as

that the bigger its costs the better
off

it

sense!

in

is.

And

that

is

which

clarification

understanding

is

establishment

of

of

public

prudent

for

public*

-

Undistributed
Still

dealing

between

Profit

with

differences

professional and popular

concepts

profits,

of

note the "once

still

non¬

necessary

policy.

-

plain

Here, then, is another area,

too

should

one

quite prevalent and

belief

widespread

so-called "undistributed

earnings" is

that,

profit"

a

or

stagnant,

pool of purchasing power—a pileof

cash

siphoned

economy
back to

—

off

transfer

higher

from

the-

that ought to be put;

work through

its
of

less than

profits, the
a

close

Most

factual

profession

it is to

"retained

where

seemingly

a

lacious to: add these two items

a

he might jot down some¬

what

product he

by

in¬

least loaded

at

are

semantic

time

sometimes

or

of data which, if not tech¬

quizzical

can

matter of unanimous agree¬

case

one.

as

subject

first

almost without end.

begin. Even such

thing

the

also

might

before taxes" which is

with

Fancies

They

culation of income

nically false,
Profit

has

interest

accept the accountant's-cal¬

even

groups

citizens, i

equal to

investment

to

that,

of vital importance to all

are

amount

an

the

on

to

financial officers but beyond

as

profits until not only all /the ac¬
countant's costs have been covered,

are

important.

cation where the data compiled
by

simple

basic need is for

-

it

involved

and

situations

economic

thought

becomes

numerous

the

in the railroad industry.

indeed

numerators with

the remainder of my paper I am

arbitration

have done

past

both

he

the

or

accept willy-nilly

unwelcome

award

actual

organized

of

which

that

abused

to

sums

ated, to say the least, by gov¬ ing, that there is under exist¬
ernment
and
the
general ing conditions not very much
public. This situation is the more that
Congress or the
product in some part doubt¬ President could
less

find

proper

Included

must

bargaining" if

provided by

now

Congress does

pay

Is

evident

enough that
"solution," if such it is to

the

equal status with the union.
Much

appropriate

measurements
can

one

with it. Perhaps another way of
placed
on their employees, or
many of
saying much the same thing is to
others by the anti-trust laws.
them, for work they do not point out that he whose business
Many if not most of the do.
it is to deal in the common de¬
unions, moreover, are now
nominator of all business is sure
No

the

pqrpojsq is mis¬
a
different and.

.

that: if .those; whose." joh

The

strained

for

flow should be considered by any¬

special purposes. Most people,

there

al¬

that

feel

of all business transactions fail, to
s^vhen done by the
indefinitely continue this
provide. leadership, in preserving
: courts, ; mean- waste.
Of course, union of¬

jeven

pickets;

one

appropriated

meas¬

amount

money

choose between paying dividends,
if corporate profits could be made;
paying
off
debt
or : spending
tional
feet, and
.start. growing. to look very large. They would, money
to... replace
depreciated
the - railroad com-t
not use the economist's concept facilities. But as a
measure
of
h*ands;to, throw :up. .However^ that;
of profit, for that concept does not
- this- country
are; mood fades as / realization- rises
corporate success it is just as fal¬

outrageously unlaVrfitl If done panies in
by-any one Jelse^^^d
in¬ now so near the end of tfyeir
frequently definitely unlaw- rope that they simply can not
fdl<

technical

a

a

-

also knows well enough that • financial officer centipede .might
cedures the pickets, regularly this
is one; of the reasons that > just as well give up growing addi¬
do; many

of

another

;

moving goods for delivery JtoJ less
.course

now

be

would

is
inadvertently
or
When it comes to taxes,.to fiscal ular ; issue
latter I will have a word to say
of dollars every year to •
and monetary policies which. may : deliberately employed,' >
" •"•" in a moment. For the security
"of; re-; mem who either
perform use-1 rescue or wreck a
Consider, for example,
that analyst the sum of profits plus
country and its

.or

customers,."
In the

cash

designed for

interest

however, do not know there

ex¬

;

be

may

own

couple/

a

officer's

all three of them. Each

spans

cept

financial,

feet for those arfeas.

more

financial

supplying the cohcern with ; lions

essential: materials

bigger-than-ever

instance where

another definition for its
purposes.

The

establishing,

and

could,

by pointing to

unwarranted purpose.

mighty

important.: When it comes; to

alarm

conse¬

they

corporate America

urement

Cash Flow and Other Terms

who has cut

everyone

re

adverse

think

may

that

rising public

a

its

"enjoys." This

Clearing Up Confusion

this

time—might opine

about

dandy,

a

What¬

to

squeezing, despite

all.

flow that

-

picket line to enter

is

govern¬

wish to perpetuate profit-

reasons

the

on

time

quences,

oper-. ever may be said on the sub¬ Continued
from page 1
ating during periods of ject by any of the so-called full of
quicksands for the finan¬
strikes^-Not- qhLy. do wage special • pleaders j. for the cially unwary, and a foot or two
earners ordinarily not dare to
in the actuarial profession's con¬
"down
trodden"
working
a

which
in

appear

that those who for whatever
queer

soothe

themselves

flow,"

to

publications and in testimony

from

pleasing

change in

but the laws
themselves.

wage earner

through

rank

prevent employers frorn

'•cross"-

"cash

to

us.

equivalent thereof to underlying

enterprise
gripped. I refer to so-

been

and elsewhere in
government
can

.

the perilous profit squeeze situa¬
tion in which American

course,

as

the-exercise of force

as

the

or

cf

strong

of

are,

who

excuse

common

of

matter

a

forcement than of

Nqither^ the specific action
"peaceful requested by the President
picketing" but which must, of nor the action taken by Con¬
course,
be regarded in any gress for a moment even con¬

in

few

a

require it), and what has

become

of

proval. There

which

observance

ordinary

many

equal footing with the

an

»

merely of government officials before
please the voter, but the Congressional committees. A sus¬
law requirements—-although, fact is that
by and large the picious person—and I sometimes;
of course this latter is
usually road to public office usually wonder if I am not unduly that

for

or,

unions

of

how to pre¬

even

railroad

a

rest of

position

a

this

how to

compulsory

membership (where

all

vent

acquiescence

of

notion

well

Thursday, September 5, 1963

.

and

as

.

less to rail at

the

through the gamut permit full
monopoly by labor
anything but senti¬ and

tice to

does not include

conditions

tie

the
to

formed all

few have mental communist of the day.
undertaken to
"hard
inquire into The
question," the
what it implies and as to how President
might well have
it
operates. One can find said, is not the preservation
suggest that this right

in

unions.

ill-in¬

and

Certainly

closely.

in

tend

of government

by

mere

which

.

to

others

wages,

taxation

or*

in the form

dividends

or*

purchases. The fact is, of course,,
that

undistributed

that

accountants

profit is

nut

on

a

part

tag
of

the money that

Number 6296

198

Volume

repay¬

the firm for the most part. More

ability

reinvested income, as
this item is increasingly called, is

wealth,

than

that,

that exists in

is because only as

America. This

of profit
dividends with
something left over for reinvest¬
for or can

it, out of its own resources, engage
in
new
job-creating productive
investment or attract funds from

in

it

For

intentionally

rather

mean

then,

increased. The net effect remains

these

zero.

at

There

possibility

the!

of

horn

the fact that,

reduction,

per¬

out

arises

of

without expenditure
reduction

tax

means

a

as

would
indeed by truly pitiable. Financial
officers, I would judge, may well
have especial responsibilities in
promoting clear understanding of
the concepts and consequences of

profit facts and functions

to overturn the existing order

way

of

than

society

is

and,

there is

of

doing

they, like everybody

so

thing

such

a

economic
the

basic

not

will have to face the dis¬ deficit dilemma. One of them is,
concerting facts of inflation and fQE example, to avoid or minimize
taxation
and
how
they
affect the deficits, not so much by re¬
profit measurements and prospects ducing taxes, but by gradually
Nobody doubts any more that this substituting more nearly propor¬
nation has
experienced a great tional taxation for the present

and

sideration to

with

steep progressive taxation.
This
ir¬ would greatly release incentives
loom¬ compared tp^the presents system .f

basic immorality

the

that throughout
history when governments resort
printing

inflationary

to

things

known

issues

out

with

which

r

systems.

to

the

1970/1972

the

being*

proceeds

savings deposits

as

commercial

several

in

and

/

sav-;

ings banks.

are

In

the

new

will

ever, a

makO

attractive.

more

Howtj

Government issue with an£

attractive

of

rate

maturity

right

have to

and refunding ob¬

money

ligations

that

is believed

addition, it
Treasury

its

and

earnings

as

these two

spread around

It is not to the bank's ad¬

profits.

authority

rates

on

being taken in selected Treas¬

area,

very

a

not'

paid by member institu¬

on

ury

4%
in

will

persuade the Congress

ceiling

a

Federal

the

Board

Bank

It is also indicated that profits

i

other pur¬

play

which

of

to

be

tions

This

that

funds

loaning and

all

put

may

important1 part in the scheme of

press

-

to

are

deposits

Loan

the

banks-

that the Federal
and

to grant them stand-by

influ¬

area.

commercial

-

-

be-'

are

time deposits by

Board

able

be

capital markets

obtain

for

used

of the

note

I

process.

capital

will

savings

and

to

poses

an

redeemable paper currency,

is

time

order

economic consequence;

troversial
it

is not any con¬

me

Home

it is believed

and the savings banks can pay
on

banks,"

Competitive

Be

means

Reserve

that the commercial banks

means

But

bit delayed.

a

deposits.

some

rate

interest

4%

a

beyond that, the controlling con¬

inflation, by any definition, since
Nor,

perhaps

probably

in what is being termed

now

are

changed-—it is only obscured

else,

mid-1980s.

of view. To me
arithmetic involved is

funds seeking

more

savings deposits in

and

Media

The money and

points

for a

savings

rise

Other Investment

on

will

there

higher rates that
on

long-term rates over a period.

Impact

revival

no

fear,

Must

ing paid

interest

recent

rates

likely be

These

be creating a bit

among

just the right amount of

as

the tax-

resolute people to escape

caution

suppose,

is

there

the

of

issue buyers because

good deal of argument

a

whether

about

of

minds

the

long-term

that short-term

I

there is

as

inflation

Treasury

There is some

time and savings

on

ence

Tax Dilemma

the

Escaping

There are, of course, ways

the

be

of

This appears to

believe that continu¬

can

the

termed

been

in

because

rates

may

inflation is not evil.

There

long

the commercial and savings

in the discount rate and the higher

inflationary deficiteering from the
Inflation

has

now

trend

rates

of those who plump

some

deficits

profits.

In

this, but it

ing

deficits.

destructive

ture

few economists

Very

for

of
the
dilemma are
sharp and strong.
One is destructive taxation; the
other

that

be

horns

Both

currency.

deficits.

of

long-term investors about the fu¬

that is the modern equiv¬

openly advocate

th^

debauch

to

which

long-term funds.

printing press.
This is the inflationary financing
of

that

growing amount of the

a

money

alent of the money

also be bad for there is no surer

of

ignorance

through

effected

tracting

instead, to be printed or newly
created by the debt monetization question

existing
dangerous
stepping stone towards augmenting
deficits that can, by the evidence
more and more government con¬
ultimately result in
trol—could be sufficiently tragic; of history,
but for it to be unintentionally currency debauchery. That would

haps

As

investment in

se¬

are,

process

stocks.

common

of

use

indicated

is

It

money.

the

for

the dividend returns obtainable in

looking

now

many

substantial than

more

most

to

be

to

not

are

mediums

much

mercial and savings banks are at¬

cured directly from the public but

other

The

dollars

the

that

deficits

cover

other

are

savings deposits is in

cases

time and savings deposits in com¬

then, only the

remains,

securities

this

MonetizatiOn

Debt

dilemma.

be

to
—

horn

one

from

if the taking The investment of funds in fixed
through taxes is reduced and that income bearing obligations is still
through borrowing equivalently sizable even though the buyers of

taxation.

present

is

CHIPPENDALE, JR.

giv¬

taking and the

metic is not changed

of

substituting

the

for

equitable

the same thing

economy.

our

undertaken

I

loophole

JOHNT.

BY

some

each other. The arith¬

ing offset

centives to the more productive. I

progress-stopping

thus one and

are

reform

by

so-called

mean

the governed in

The

fashion.

closing to reduce further the in¬

Profit- This,

others to enable it to do so.

and

not

do

from

them

im¬

structure

tax

our

clear—and

thus

is

pay

ment has it any reason

squeezing

public purchasing without taking

reduction in the rates of taxation

prospects

has

firm

a

adequate to

that

tion

accounting

dollars to increase

cannot give out

Our

pedes our economic growth. The
case for reform in the type of and

industrial

Our Reporter on

particularly

the

of

aware

—

debit principles—that government

eroding

wealth.

private

monetary

,us

21

private profession's double-entry, credit-

new

stjeadily

recognition of this truth is often,

for

corn"

"seed

essential

progress

while

represents the perhaps usually, in the observa¬

savings margin. It
most

create

to

existing

valid measure of a firm's

he only

thosej

impair both the incentive and the

and out of

ment, passed through

tells

arithmetic

simultaneously

These

elementary

Thus

and capital gains

estate

taxation.

(937)

Chronicle

The Commercial and Financial

.

eroding

has come into and,

by reinvesment or debt

.

.

and

return

(priced)

the.;

meet

to

techniflu^j of financing, either, vantage to get these deposits un¬ competition will always be V
and continu¬ Thus progressive taxation, with overtly or indirectly, it generally less they are able to make money sell-out.
:
i'ilt,
ing fiat wage cost inflation, is rates on individual incomes run¬ ends up as the sinful any system¬ on them.
there certainty that the inflation ning up to 90% or more, confronts atic fleecing of all creditors—and
However, it is the overall effect
has run its full course. The dollar any one capable of more than many of them are the "little folk"
Button
:r"
that this recent increase in the
buys far less of labor, of materials, average
productivity
with the in our land: the savings depositors, rate which the banks will pay on
life
'of plant and equipment, of gov¬ prospect that additional income the
insurant and savings
savings deposits will have on the Inv.
ernment and of living than it used resulting
f^om added effort or in¬ bond holders, the pension and
money and capital markets that is
to do.
vestment on his part will be taxed other fixed income receivers. This
being considered in more ways ELIZABETH, N. J. — Edward NV
reinforces my belief that there
Similarly, no one doubts any aw&y at much more than average
than one by the financial district. Button has been elected a Viceis no proper place in American
rates. So his incentive to do so is
more that the dollar total of an¬
It is evident that a 4%
rate on President of Investors Manage-*
undermined.
Can
you,
for ex¬ fiscal policy for deliberate resort
nual depreciation charges
on a
savings deposits in savings and ment Company, of Westminster at
ample, imagine any possibility of to inflationary means of financing
Parker, i n-v
commercial banks is going to at¬
plant bought many years ago will
peacetime deficits.
vestment
ad¬
not provide enough' buying power negotiating a union wage contract
tract
a
considerable amount of
which called for less than straightUndoubtedly there may be other
visor to
four
to equal that originally expended
funds which could be put to work
time pay for overtime work? Yet ways of escaping from the di¬
mutual funds.
for it. More dollars than that must
in other investment media, none
ing Federal deficits

V.-P. of

Mgmt. Co.

J

-

this is exactly the situation created
if the company is just
even—if it is to be able by progressive taxation.
There is no such thing as incen¬
replace the plant when it is

found

to
to

tical

However, the most prac¬

lemma.

stay

be

Those

out.

worn

have to be earned as
—there

profit dollars
else

nowhere

is

dollars"

"more

them. The new burden on
is thus to make

in deprecia¬
is thus less

There

amounts.

tion

profits

good the inflation-

deficiency

wrought

get

to

available to perform the

profit

functions

normal
there

to

seems

to

income

earn

in appraising the profit

facts of our economy.

That

however,
the

is

fact

plain

me

that

dilemma

terrific

taxes.

to

the

have

we

are

respect. If we substituted for it a

It

is

now

in

in

a

lished

seriouslly interferes with

effective

economy.

which
Marx

have estab-^

type and degree of taxa¬

a

tion that

the

spend¬

spell it out briefly:
generally recognized

operation

of

our

It is a type of taxation
described
by
Karl

was
as

making despotic inroads

on

property rights and so intended

to

overthrow our form of

The

tax

features

society.

are

steep

progressive income taxation, pun¬
ishing profits

thus

enterprise.

and

the

ex¬

needed to
thus mini¬

entirely

them

avoid
mized.

to escape from the

dilemma is for the nation to some¬
how find the courage

to insist that

there must be expenditure

reduc¬

This is obvious arithmetic.

It may

not be practical politics. It

is, however, about the only
tion

those

that

occur;

the
that
but

deficits

the

posi¬

insight into

with

these matters can take. For

wise

will

other¬

certainly

they will be dangerous; and

extenuating
they
may

is

a

rationalization

not really harmful

are

even

compensating
purpose

brief

these

concluding

ob¬

serve

a

"prime

than
the pump"
more

quite unsupportable

exchange

of

—

ing paid on

something
this competition.
In not

opinion is held that the Gov¬
ernment should have raised its
savings bond

rate to 4%

It

evident from

is

of

the

money

in

the

equity

could

have

other

expressed.

be

must

calculations

terms of it

costs and

business

all

that

consumption

is in

It

bridged.

are

produc¬

specialized

diversified

is

been

being

now

which
market,

in

deposited

paid

on

that

higher

the

of

rate

time deposits. It is
income

the

or

in that market,

commercial and savings banks
cause

has

now

the
be¬

being

evident

available

preservation of its integrity
essential. Without it the econ¬

The
is

as

know it would perish,
would individual liberty

we

as

omy

also

and

form

our

of

government.

should

matters

There

therefore

command the concern and
the

require

insight of all. I cannot better

express

it
in

words

Senator

than
a

by

recent

quoting
speech

the
of

Harry Byrd, whom I re¬

great statesman and
patriot. Hp said, "It is up to all of
gard

as

a

In—

vestment

Edward N. Button

Diver¬

Fund,

Mr.

Button

of

organization
in
Assistant Vice-Presi¬

as

an

Previous to his

association

Management Com¬

has was

a

general partner

Before his

affiliation with

Andresen, Mr. Button was
ated

as

a

rity

associ¬

Life
Canada,

Manufacturers

with

Insurance

York

New

Co.,

&

Andresen

City.

invest¬

the

joined

advisory

with Investors
pany

and

'

Westminster Fund.
r

Fund

Stock

Growth

sified

dent.

reports that

Di¬

versified

1961

Equity Money Lured

been

and

Invesors,

ment

some

transfers,

long

a

time ago.

are

Fundamental'

in the financial area

few places

a

denominator of our econ¬

Through its income flows, as
and profits, the basic in¬
centives are expressed. Through

Management

the Treasury does

meet

to

by

Company

that are be¬
time deposits by the

commercial and savings banks un¬
less

su¬

Investors

among

higher interest rates

omy.

tion

be

are

pervised

of

feel the effects of the

the first to

the

is

ments

quarters

the

I

-

will

Government

the

wages

its

Another way

tions.

with private

now

reduction

taxatiohand capital proposition.




those

ducted in competition

In

could be

and especially in
subsidized operations con¬

some

that the savings bond program

areas,

many

prevail. servations I would like to em¬
production, employ¬ phasise again that money — the
than

narrowed

be

penditure

higher

the

government expenditures

growth-deterring

less

far

have

income
rates. And reduction in

bracket

in

that

incen¬

heavier re¬

require

in

duction

common

limits of American

that over the years we

could

levied in alternate ways that

reduction

individual

believed in

is

It

funds
invest¬

Govern¬

ment bonds.

combination

a

are

The
whose

which

of

least

the

and expenditure

tax

would

tives

The ingly be expected; deficits might

There is no

fortitude in halting welfare

Let me

kind in that

worst

A

release

would

medium

readily apparent escape from its
within what many regard

ing.

in
different

be

of tax reduction

reduction.

is also

which

one

would

feasible

might accord¬

horns

the present

of

which
of taxes act as disincentives.

ment and tax bases

with respect to

taxation in our land.

as

sake

difference

to

degree

kinds
We

great

a

consequences

Great Tax Dilemma

brings

the

for

paying it out in taxes. There is,

Increases

The

is inspired

one

profits than less bad type then the same total
and this is tax load now carried might be

of

be;

something to be remembered by
every one

taxation—no

tive

and

one

Co.,

Toronto,

portfolio manager and secu¬

analyst.

He is a member ,of
Society of Security

the New York

Analysts.
us

who

believe in

our

system of

government to fight for the kind
of progress we know to be sound;
the kind of progress that is built
on
the faith
in the future that
only

a

♦An

Zainer

has

Wis.

joined

—

the

Roland
staff

of

blessed with our Splaine & Frederick, Inc., 1800
freedoms can have."
North Marshall Street.
He was

nation

fundamental

Eastern

Frederick'

Joins Splaine &
MILWAUKEE,

by Mr. Tyson before the
Conference of the Financial
Institute, Spring Lake, New

address
Area

Executives

formerly

with

Wisconsin-Con-

wrflwin»W«,itr«M

ft""*1 i

,

-»•*.

\*

22

The Commercial and Financial Chronicle

(938)

TT7"!

jr •

.

W u£)l,

_£

1

•

,

resistant

more

Kind OT £L ftUSineSS

t

•

j_1

m
111

v^lv^

thP
U-LAVy

Continued from page
.:
business dip in 1927.
.

\T

3
.

What

.

is

in

1

f\ H ("*£)(]

kJ

•

Presumably, this change does

war.

.

,.

A

-

Y

reflect

to

.

the

degree

some

*

.

im-

manage-

25'*years—since6193^—wUh1988
witn

gone

out

zo

since

years

into

running

really

a

ment and in managerial informa,

sharp

of

1921

1938

or

without

the

and, of course,

—

catastrophe of

Jwonf
Th
in

i0Rn,f

this

connection,

it may

Qprinns

HpnrPQJnnc

hnvP

dnrina

tbp

Bern-

,

reiative

Helps

Long-Term

the

on

long swings

fluence of changes in investment

have

built

of

in

of these;

one

growth.

enough

But

stability

we

into

in

postwar

The

(4)

structure

of

employ-

or

not

may

continue

to

be

•

so

in prawar minor ment has been changing in a sta- lucky. I am confident that we
general, there is evi- bilizing direction.
Government, can continue to do this well—or
dence that the monetary author" the service trades, and white-col- better — with wise management.
lThan

swings. In

iti;es hav<; efercised a more sen" [arthe wide cyclicalare not subject My chief concern is that the pres-v
t°bs generally swings in em- ent building boom not meet
to

sitive control over the money sup-

during
cycles. One illustration of

during

postwar

this is the marked
commercial

Investment Trend

noting

sensitivity

cyeles

prewar

Construction

worth

-

monetary side. Short-term inter- is further weakened by the ef- the economy so that no serious
rates have shown greater feet of the automatic stabilizers,
depression has resulted. We may

•

pro-

a

Thursday, September 5, 1963

est

ply

business contraction—of the order

.

clines. There are also some dif- the case, and the destabilizing inferences

/^1
1
I iVfHP

.

de- fraction of GNP than was once downward phase

cyclical

to

.

than

in which

way

banks. have

to

had

an

ployment characteristic of
facturing,

i mining,

untimely end before the

construction,

transportation;

freight

and

manu-

and

it is these relatively stable

kinds

so

up-.-

in family formation in the

surge

late '60s—and that

?

new

preoccupied

not become

we

with

the

fear

of

reduce their holdings of securi- of employment that have shown inflation ■ and of budgetary and";
private investment-Jn construe--ties .during postwar expansions - the most rapid increases in re- balance-of-payments deficits that;
tj
nd machinery and equip- in order to meet the rising de- cent decades.
we deliberately force ourselves,,
ment There has been a change in "land for loans,
,
(5) The government's commit- through deflationary policies, into;
Let

turn

us

to long-term

now

.

laVt

.

,

ord

IS

n

f

The

ppntnrv

follows

as

nrpurred

imintprriinfpri

ol_

(i.e.,

hv

rec-

intervals

qpriniK?

n

dp-

.

x.

pression;.

.

«i!3 °r

«««

997

ZtlZ

in

veam

or

ionfl

s

or

1907

lovn'
wu w'

i

years

o

irIMrot Z

19

veiro

or

R

4

vears
years

.!■

Depression-Free

■'*< Against

1930's,
Ai7UU

this

and
..

change
"

.

.

has

..

been

„

stabilizing

a

^ ^

direction.

^ but they were !ess

record,
free

the

So

far,

interval ending in 1873.
But

-

minor

past

■

;

t

have continued to have

we

contractions, and these mild

postwar

recessions

bly similar to the

remarka-

are

minor

cycles

the

features

ord.3
In

still
look

at

this

mechanism

of

revealed

as

is
us

Let

us.

in

the

'

f-.

be

ex-

TJ

ed, we have continued to experience minor business cycles
which, while different m various
details, bear a strong resemblance

much

very

some

underwent for many decades be-

-

Durable
As

,

'

rec-.

;

have

Swings

remarked,

postwar cycles have been marked

particularly

by

wide

swings

^went°ry of prewar
investment.
^also true

in

A

bit

of

here

paradox

a

Underlying

clearly

been

rection

of

mation

base
and
one

on

its

have
the

in

inventory

agement, j lower

inventory

di-

man-

sales

-

infor-

accurate

more

which management can

short-period

production

.purchasing plans. All this,
should think, would make for

less wide swings in

inventory in-

vestment.

A

increased

importance

partial

offset
of

is

and

For

We
continue, then, to have
minor cyclical fluctuations. Do we

once

also have to worry that eventually we shall be hit by something

or

particularly wide.4

a

and

costs

has

variety

of

for

200,000

of
per

cycle than

was

share.

over

the

Businessmen do not

in

expenditures

Any

recessions

brokerage

agreement that here the situation

ers'

has

looking

note of caution

a

into

future.

the

Our

maintain-

in

level

of

ag-

gregate demand and employment
much exacerbated

very

if there should be

significant de-

a

changed

better.

profoundly

Significant

for

changes

the

propensity

the

of

contraction

time.

changes

These

a

frlom

have

to

been

about

sensitive

as

CyCiicai swings
fore the

they

as

be-

were

Recall, for example,

war.

the rather sharp drop
on

minor

to

producers'

in spending

durables

in

1957-

our most recent re-

tures

producers'

on

constant

15%

prices)

from

the

durables

declined

second

(in

almost

quarter

of

i960 to the first quarter of 1961—

and

the

decline

level

began

satisfactory,
under

the

monetary

of

that we can count on the Federal
Reserve System to follow an ac-

sible

business

°p'

We

all

being

1957,

Say,

and

the

consumption when

has

been

the

GNP

de-

pared

been

has

slow

(2.9%

during^

3.8%

to

level

year

of

corporate

taxes,
profits,

tent,
ers.

list—since

this

postwar cycles

One change in the cyclical be-

stabilizers

personal

undistributed

subsidy
This

and

include

and,!; to

some

payments

audience

cor-

will

ex-

tressingly

persistently

dozen

long
We

years

swing

This

,

or

in

that, for
more,

we

farm-

iong swings in growth for

be

inter-

back

ested to hear that, in the postwar

7s

These

we

swings

i'

can

in

1[mce

the

growth

far

accompanving

of 4^vTpti^

the

elppt«?

to

an-,0,int

a

h

tender

r7fnr

a

fee

Joh

cents per snare ior eacn
faratendared and purchased uner 1 e 0 er: Bankers Trust Co., 16 Wall
Z

7

Street, New York, has been named
as Depository ftj>r the-tendered
skares-

a~

these
as

ppr

1]nder

it

T

.

have

growth.

to

<,uarp5;

unlp<?«;

nSLrtlnc'^senSe
of th^4rnn^tt»l S-

half

phase of

economic

;

y

^xchanf.e a"d Ato any member_of

dis-

a

-0,00.

a d
Purolator will pay to any mem-

other

been exneriencing

have

nffpr
h

com-

and

"•

0
P

2f)ft nnft
,

1947-57)?

and

ime on

P

unemployment

high.

re

a

e:*P at

unsatisfac-

per

been in the downward

1956-

is short—some of the other
our

the

h

^ event lesTthan \oQQQQ

Economic

sation),

in

Prewar Behavior

in which

of

states.

onnonn

flares. Aite Sept.^14^1963^ a d

growth in the United States since

United

evidence suggests

significantly

* in

esent situation

'
in-

the

torily

porate

ways

int and to the

Savins

1963

ber firm of the New York Stock

in

social security payments (particularly unemployment compen-

;

^

final

t0

me

Davlieht

26

^a*-olatar may purchase a 1 or*

'

A

IV

but

reached

not

it

brings

creased importance of the "automatic stabilizers," which help to
hold up disposable income and
These

have

fore the war.
This

promptly

^uu'uuu s a_Ees a :
Priof t0 a p.m. Eastern

^

has declined
somewhat
in
relative
importance; it probably is less subject
to catastrophic collapse than in
the
past;
and
the
structural
changes that I have listed make
it easier for the economy to absorb at least moderate swings in
investment than was the case be-

^

Sept

Day lght Saving

econ-

de-

know

on

'

emnpieteiy stabiiized private inbut

200,000

tender offer,

"

instability

We

clines.

-Wages and Prices. Differ From

paper

experiences.

with the

private

private enterprise

a

anything

was

merely

cyclical

purchased

Eastern

Time

should

•.

-

(2)

recession

the

for

vestment,

tiv£ Program of monetary ease if

a

income

me

so

of

the

57.

Let

policy,

volatility

which

from

level

conduct

shares

investment that is chiefly respon-

omy

.

the

is

to

up

pur-

Tung-Sol

The tender offer will expire at

Volatile Capital spending
Less Important Relatively
It

will

of

Payment will be made for

accordance
Si..

really

time

frequently commented on but are
building perhaps worth repeating here.5

long

past,

all

firm

shares

after acceptance of the shares in

tractions.

which

the

help to support work-

latter

tendered

shares.

on

have

cline in the volume of construeIn

time,

same

pressure

incomes during business con-

American

to plunge into

economy
severe

upward

wages may

occurred which markedly reduce
the

rapidly. At the

steady

commis-

to the sale will be paid by Puro-

it also suggests

the

liquidate

common

sions and transfer taxes applicable

the postwar building boom. But

case

an-

tenders

shares

Electric

decline

severe

a

Inc., has

iAviting

Tung-Sol Electric Inc., at $22

to fall

least

worse—at

i

less

case.

to

I OF

be

reasons,

to

seem

the

try

-

UieLlIlL

Purolator Products,
nounced that it is

variable

defer

■

.

UX1&

prob.

contribution to

some
gl.eater stability.

„

luilQ'-Sol ElPCt/FlP

in general, bet-

business' plaAning

ter

rUFChaSe Utter

man_

planning™

like that of 1937-38, if not a
since World War II. This, catastrophe like that of the early
of course, reflects the strength of -'30s? There is fairly widespread
the

the

durable

goods, in which inventory swings
are

w;seiy

be

seems t0

investment

Dillon, Read & Co. Inc.; 46 Wil-liam Street, New York, is acting
as

manager

in

soliciting

tenders

under the offer,

data

are

not

recessions, the most important of regular and by no means periodic,
these stabilizers have had their but they tend to fall in a range
source in the volatility of corpo- 0f iq to 20 years. They bear some
rate profits, combined-with the relation
to
the
long
building

n

ii

Hvioric

UllUIl, IvfcJIU VjpCIlD
t

1*

"D

"L

resemble or differ from prewar
lnCll3J13>P0llS ijEEnCu
havior of
inventory investment minor swings. Incomes have been
te
t
a
u
since -the
prewar - period
does relatively stable in postwar re- stability of dividend payments. As cycle. Their downward phases— INPIANAPOLIS>
Ind- — Fulton,
seem
to be evident. In the
post- cessions, but this was also true a result, the decline of undistribu- periods of slow growth
have Rcdd & Co'' Inc*' members of the
war period,
inventory investment of the minor dip in the 20's. Con- ted profits and corporate income tended to be associated with seri- Midwest Stock Exchange, have
has pretty
regularly begun to de- sumers' spending has been a very taxes has made a major contribu- 0us depressions 6
opened a branch office in the
cline before the
peak in general str°"g stabilizing force in post- tion to holding up disposable inMy own interpretation1 is that
v

v

.

K,Sm,eSS,^-JreaChed- ™S notice" r" recesslons' but thls was aSaln come m postwar recessions.
the trae mwprewar minor contrac(3) Government spending is

ablejead did not exist before
thl

2Th„<!

industrial

r

a

i

Production

•I ££, iSTS
section

J

is

based

on

tions. Where we do get sigmtidedS les^than cant contrasts is in the area of
u

t

mat,-Hal"

Sneis0 Fluctuations (rev- ed.,
4 The

most

thorough study of

.

,

,T
my

1961),
postwar

1962).




during the last hal£ doze„ years
have been living through the

we

much larger fraction of GNP than

before

the

and

war,

wages and prices. Since the war, vestment is
waSes have not declined during Thus,

as

private

in-

„6 Thfese ,.on5 swi4^s aret ,t,oday1 gen^r_

smaller fraction.

a
iong

as

government

M°ses

s.ef

Abramovitz'

mg - under the management of

^rV^s formerly with City s2"
fomfeHv wit^Cin Se
bers was
curlties Corporation.
Am

testimony

in

•

n

I lWv

RranrK

American Liberty Branch

periods of rising^unemployment

spending is maintained,

given

ETploymTnTcr^w^Tand Prlc^Leve™

BILOXI, Miss.—American Liberty

1X1 recessl0nst although, of

percentage change in private in-

Part 2 <1959), PP. 411-66. See also the

Planning Corporation has opened

mTting^f th"5A'meHfa^E^nomlc Asso!

a branch office at 27 Oakwood
Drive Under the management Of

course,

Invc«to^ behavior is T, M. Stanback, tbe^Upwmrd trend has been re- vestment
Inventories (National Bure^of Economfc ^rded
dUlTng
SUCh
periods. ■'
Research,

a

Prices,
'

also,
'

have

become

much
uv"u

215-17.

my

represents
.

a

a

smaller

1

Bustness

1962, published in
1963 Papers and Proceedings

ciation in December,

Fluctuations,

pp.

the

May,

issue

of

the

American

Economic

Review.

•.

j—
*An address by Dr. Gordon before the

all

cession, that of 1960-61, expendi-

involved

trends

working

better

ratios, and

is

Em-

,

The

This was 58. To cite
cycles,

minor

the

chase

be

already

.

m()re

prices

upward tilt than

Goods Inventory

I

its

tion.

postwar

in

lft.„

simply because they expect prices

of- would be

^ -

an

*

A

(6) Bllsiness

aging

(7)

III

booms have eventually ended,
c
.
although not usually- in the sort
Changes Forestalling Serious
prewar minor cycles. That is, on" of complete collapse that characDeclines
the
average
expansions
h a v e: tenzed the 1930's. This is a nutter
(1) Banking and financial retended to be longer,- and con-whi°b I shall (briefly return forms have greatly strengthened
tractions briefer, than before. But at the end of this PaPer: thc banking system, reduced the
we still get significant declines in
Let us now turn to the cyclical extent
of financial speculation,
industrial production, particular- behavior
of
business :expendi- and otherwise improved finanly of durables, during cyclical tures on, machinery and equip- cial practices. We should also incontraction.'
ment. These expenditures seem to clude here improvements in the
of

more

A

i.

ysv.

general, postwar cycles have

had

expression

concrete

T

<■

lator.

Apparently, the kind of dynamic-present difficulties
mechanism
which
creates
these ing
a
satisfactory
with

could

j

inventories

variety, in

prewar

•

d.

nonresidential

also,

serious

of

i

7

™re

building has been less sensitive
to minor swings in business than
depression stands out strikingly, before the war. Commercial and
The longest previous period free industrial building was more senof serious depression in the past sitive to the mild business recescentury and more wa the 16-year sions of the 1920's than has been
this

j

some-

House

marked.

Performance

century

quarter

behavior

postwar

F

or

tended almost indefinitely. But I ployment Act of 1946, has un- 47th Annual Meeting of the National
building has tended to taper off hope I have said enough to make doubtedly
influenced
business Industrial Conference Board, New York
early in cyclical upswings—thus my main point. During the almost and consumer expectations in a
1 y*
tending to moderate the expansion 20 years since World War II end- way that is favorable to stability, -px
-i
r\pp
(*
in

respect.) Such leads existed before to those which the United States ably made

Striking Postwar Serious

-

residential building be-

way

in aggregate demand-and it has
'ended to turn up well before the
low point in general business.'
(1961 was an exception in this

v

or

1933-1937'

This list of similarities and dif- ment to maintain a high level of prolonged stagnation
haves in minor cycles since the ferences
between
prewar
and employment, which was given thing worse.
the

R

^

Kjng

The Commercial

6296

Number

198

Volume

and Financial Chronicle

The

Indications of Current

week
Latest

Index

operations

94.7

94.5

this

in

of quotations,

cases

ALUMINUM

1,672,000

95.7

either for the

are

are as

of that date:

(BUREAU

89.8

short

(In

cent capacity).
discontinued issuing

of

OF

primary

Previous

Year

Month

Ago

1,782,000

(per

Iron & Steel Institute

in

or,

Latest

Production

Aug. 31
steel

indicated

The American

that date,

23.

production and other figures for the

cover

Dates shown in first column

Year

Ago

1,761,000

on

production

weekly

1957-1959

for

Unofficial

month available.

Month

Week

1,765,000

-Aug. 31

or

month ended

or

Previous

Week

INSTITUTE:

STEEL

AND

IRON

ingots and castings (net tons)
of production based on average

Steel

following statistical tabulations

latest week

Business Activity
AMERICAN

(939)

Month

Ago

MINES)—

aluminum in

tons)—Month

of

the U. S.

June.—...

192,491

192.868

179,122

83,307

Stocks of aluminum (short tons) end of June

88,195

132,602

'

..

late

data

oil

Crude

output—daily

condensate

and

gallons each)
Crude runs to stills—daily
output

Distillate

fuel

oil

oil

fuel

Stocks at

Aug.
Aug.
Aug.
Aug.
Aug.

output

Finished

gasoline
(bbls.)
fuel

Distillate

Residual

Revenue

oil

OF

(bbls.)

at

(bbls.)

at

at

;

RAILROADS:

AMERICAN

coal

Bituminous

(tons)—

—

PLANNING

ADVANCE

14,246,000

14,097,000

13,227,000

13,140,000

In

4,966,000

5,314,000

4,598,000

5,710,000

In

184,232,000

*186,179,000

—

running

32,303,000

Cotton

156,179.000

LINTERS

month

COMMERCE):

bales

607,375

151,514,000

138,955,000

705.094

of

51,849,000

88,512,000

50,419,000
89,524,000

70,302,000

Aug. 3
spindles

28,817,000

594,740

-

3

3—

of

689,951

1,522,413
6,118.949

105,536

July

V-u
of

as

659,941
1,349.040
10,064.349

Aug.

112,132

85,413

533,574

617,104

576.078

15,692,000

3

15,767,000

16,773.000

600,850

582,959

476,010

•;

SEED

9,550,000
•475,000

501,904

490,322

9,385,000

9,445,000

8,587,000

459,000

$432,900
261,900

Aug. 29
Aui- 29
—Aug. 29

404,000

268,000

$701,500
455,000

$583,300
400,400

1

COTTON

AND

OF

SEED

PROD¬

COMMERCE—Month

of

July:
Seed—

Cotton

Received

at

(tons)

Stocks
Cake

$217,200

142,200

246.500 .;

171,000

.182,900

Aug. 29

165,100

105,300

5,900

77,600

75,000

234,900

Aug. 29

11,600

:

'

:

72,500

2,500

mills

and

70,200

July

31

175,900
303,300

280,500

187,300

31.

96,800

220,700

(tons)

July

24,100

152,800

(tons)

210,800

133,900

183,400

Meal—

Stocks

.—

Aug.

1,214,944

9,684,685

of

as

-

UCTS—DEPT.

.576,657

494,365

COTTON

(tons)

Produced

Municipal

690,272

;.

month

active

OF

BALES:

July

142,078,000

51,900,000

8T,843,000

DEPARTMENT

—

consuming establishments
public storage as of Aug.

Crushed

planning by ownership

and

OF

COMMERCE—RUNNING

Consumed,

ENGINEERING

Federal

(DEPT.

15,

AND

Stocks.

34,837,000

189,551,000
34,173,000

159,461,000

34,690,000

J

(000's omitted):

SERIES

—

State

2,661,000

Aug. 24

Private

Public

8,346,000
30,179,000

3.006.000

,—Aug. 24
Aug. 24

NEWS-RECORD—NEW
advance

8,736,000
30,815,000

2,709,000

*

anthracite

Pennsylvania
CONSTRUCTION

8,634,000
31,617,000

2,617,000

(no. of cars)—Aug. 24

lignite

and

August

8,732,000

:

OF MINES):
(tons)

of

COTTON

31,367,000

.

BUREAU

(Ui-S.

OUTPUT

7,274,010

GINNING

Linters—Consumed

£

freight loaded (number of cars)
freight received from connections

Revenue

Total

23
23
23
23
23

at

(bbls.)

oils

ASSOCIATION

(bbls. )

at

oil

fuel

Unfinished

COAL

(bbls.)

average

output

Kerosene

:

7,648,860

COTTON
As

7,665,760

23
23
23
23
23
23

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

Residual

0.57

"

Aug.
—Aug.
Aug.
Aug.
Aug.
Aug.

(bbls.)
(bbls.)

output

Kerosene

0.58

7,661,110

of

(bbls.

average

42

Gasoline

0.575

INSTITUTE:

PETROLEUM

AMERICAN

0.575

Aug. 31

1960

.

(tons)

Shipped

71,300

86,600

85,200

92,400

187,300

107,000

33,800

41,200

83.800

37,100

46,500

52,300

44,500

61,800

68,200

130.900

175,500

95,600

130.900

170,500

95,600

77,600

...

(tons)

93,300

58,800

HullsStocks

(tons)

Prouuced

July

[

31

(tons)

Shipped

——

i._

'

(tons)

Linters—

AVERAGE

SYSTEM—1957-59

Electric

(in

output

Finished

steel

107

113

117

(bales)

Stocks

(bales)

18,082,000

18,607,000

275

238

282

!

PRICES:

|

6.279c

6.279c

6.279c

$63.11

$63.11

$66.33

$27.17

Aug. 26
Aug. 26
Aug. 26

Pig iron (per gross ton)
Scrap steel (per gross ton)
PRICES

Electrolytic

$27.17

$25.83

,

6.196c

$66.44

<E.

QUOTATIONS):

J.

M.

&

refinery

SPINNING

Export refinery at
(New York) at

Lead

(St.

Louis)

at

(delivered

tZinc.
Zinc

(East

at)
Louis)

St.

at

Aluminum

(primary pig, 99.5%)
tin (New York) at

Straits

MOODY'S
U.

S.

PRICES

BOND

at

August

Aa

1

Railroad

Industrials

Averagc=lOO— Month

11.500c

11.500c

11.300c

11.300c

13.000c

13.000c

12.500c

Group

12.500c

13.000c

11.500c

22.500c

22.500c

22.508c

24.000c

ERNORS

115.000c

114.750c

113.750c

108.625c

SYSTEM

16,773,000

8,621,000

391.6

344.8

FED¬

FEDERAL

-

(average

daily)

Sales

(average

seasonally

89.09

89.34

88.71

88.81

88.81

91.19

90.20

89.23

89.09

86.91

84.43

81.66

adjusted)

91.77

90.20

90.20

89.09

89.09

84.30

84.43

3
3

3

Sep.

3

;

.

3
3

f

•'

86.91

THE

OF

U.

S.

Seasonally adjusted
Unadjusted
LIFE

INSURANCE
LIFE

OF

\

PURCHASES

Average

Bonds

---

INSURANCE

(000,000

Month

—

of

87.05

83.53
88.81

Group

89.51

89.51

89.51

89.23

.

557

3.98

Industrials

Orders

$6,967

Unfilled

4.29

4.33

4.40

4.47

4.48

4.64

3

4.84

4.83

4.83

5.05

3
3
3

4.64

4.63

4.64

4.90

ttLondon,

4.43

4.43,

4.42

4.50

ttThree

4.45

4.45

4.45

4.47

3

358.2

357.8

364.2

365.6

(tons)

4.30

4.29

.

AVERAGE=100

Total

Total

382,870

342,959

ttThree

378,185

368,518

363,121

98

98

97

97

East

597,036

572,414

472,925

99.31

.

1

97.30

98.03

98.98

.Other
Total
Other

2,272,530

2,462,060

515,320

422,020

446,190

289,510

Laredo,

61,900

83,700

71,700

Laredo,

boxed

397,270

410.440

253.850

459,170

494,140

325,550

369,990

•

436,790

initiated

on

the

floor—

878,540

907,535

661,995

Cobalt,

205,060

176.920

127,740

820,846

913,920

Aug.

824.880

Aug.

3,102,426
3,927,306

594,645

937,724

708,860

1,037,756
3,898,180

1,114.644

722,385

3,517,920

3,775,055

2,879,555

800,970

828,300

LOT

DEALERS
sales

Number

-

Dollar

Odd-lot

SPECIALISTS

AND

SECURITIES

—

by dealers

ON

N.

2,844,650

3,242,544

2,279,745

3,645,620

4,070,844

2,932,665

Y.

STOCK

-Aug.

of

short

Customers'

„

_

Dollar value

Round-lot

sales
of

Number

Short

Round-lot

purchases

ROUND-LOT

$70,143,574

$50,323,120

ACCOUNT

SALES

ROUND-LOT

OF

ON

THE

STOCK

MEMBERS

N.

Y.

-

19,043

18,915

1,146,633
29,902

1,564.696

1,116,731

Net

$73,493,84?

$69,426,086

$76,568,649

$52,781,054

1,376,772

1,583,611

471,900

584,260

379,370

532,340

471,900

584.260

379,370

354,620

347,180

337,870

328.050

.

DEPT.

All

i

Farm

All

commodities

farm

and

foods

on

Ratio




.

* ■

(in

long

1.045,820

1,054.040
13,463,390

Stocks

19,012,710

14,517,430

22.500c

79.000c

79.000c

$2.25

$2.25

$2.25

$125 ,393,559

U.

OF

CLASS

S.

$295,390,933

$117,045,152

74, 197,290

188,089,872

I

Commission)—

71,044,720

income

16 ,159,695

107,022,963
402,413.896
25,595,717

charges

183 431,154

376,818,179

172,649,549

91 520,873

from

fixed

for

91,824,842

91,888,513

284,993,337

80,761,036

charges

199 590,849

91 910,281

I

15,440,323

10,269,651

10 371,517

10,365,896

81 538,764

274,627,441

70,491,385

165 484,328

171,942,239

160,756,358

34 025,026

Cr38,117,169

63,596,367

77,626,469

114,840,659
6,609,373

76,773,730

11,811,413
2.00

4.10

1.88

26,960

27,780

7,380
34,340
27,125
7,215
230

6,730
34,510
26,960
7,550
130
7,420
5,290
2,130

32,055
6,950
39,005
32,140
6,865
155
6,710
4,735
1,975

——

equipment)

(way & structure &
taxes

stock

._

stock
fixed

to

charges

TIN
OF

IN

PRIMARY AND

11,824,915

THE

STATES

UNITED

MINES—Month

of

SEC¬

June

tons):

in

beginning of

period
•

Stocks

100.4

100.4

100.3

100.6

97.6

96.2

96.1

96.8

101.6

101.7

101.4

101.9

95.3

95.4

94.3

100.0

Aug. 27

100.7

100.7

100.6

100.7

Western Zinc
available.

;

at

end

of

Consumed

in

scrap

:

transactions

manufacturing

tr

■&.

«rtb.

tt

•»'{>

*. ui v<

fioiW.ti

*<■

6,985

.

Primary
Secondary

.

v

5,035
1,950

..

figure. ([Domestic five. tons or .more but less than carload lots
§§Delivered where freight from East St. Louis exceeds 0.5c.
*S!Port Colburn,
duty included. ttAverage of daily mean and bid and ask quotations per long
morning session of London Metal Exchange.
•Revised

k

,.*?/.
mr/n

;

period

processed

Intercompany

i

vt»;"l

24.000c

22.500c

—

Receipts

OF

t»w>

AcnA

$1.50000

22.500c

.—

income

BUREAU

17,966,890

figure. tNumber of orders not reported since introduction of Monthly Investment Plan.
JPrime
delivered basis at centers where freight from East St. Louis exceeds one-half cent a pound, (a) Not

■

$1.80000

$1.50000

appropriations:

of

1,055,750

•Revised

sold

$2.40000

22.500c

t

fixed

preferred

16,948,300

Aug. 27

than

$2.40000

income..,

deductions

common

On

15,892,550

Aug. 27
other

$1.75000

—

after

Dividend

19.074,810

„___,.__Aug. 27

foods.

Meats

$2.35000

79.000c

___J.

income

1.088,020
1

Aug. 27

products

Processed

$2.35000

charges

Depreciation

Total
:

$82,000

.

income

17,986,790

;_Aug

Group—

commodities

$77,000

22.500c

Supply
S.

33.000c

$77,682

.

deductions

ONDARY

V

LABOR—(1957-59=100):

Commodity

ITEMS

TIN—CONSUMPTION OF

.

SERIES —U.

32.500c

33.000c

p.

STOCK

Aug
NEW

36.250c

32.500c

$1.50000

pound)

available

Income

On

TRANSACTIONS

—

PRICES,

36.250c

33.000c

pound)

export.

operating

income

fixed

Other

1,357,729

[-Aug.

sales

WHOLESALE

$35,000
$192,000

32.500c

income

Income

15,443

Aug

Other sales—

$35,000

$182,000

36.250c

I

INCOME

Miscellaneous

1,513,402

(SHARES):

sales—

pig

(per

railway

1,497,959

Aug.

dealers—Number of shares

STOCK

AND

round-lot

by

$35,000

1

(Interstate Commerce

Aug.

:_Aug.

\

Short sales
Total

1,135,669

532,340

sales

;

108.511C

pound).

pound).

.

Federal

sales

EXCHANGE
FOR

1,352,211

Aug.

shares—Total

sales..

Other

Total

$69,972,634

-

dealers—

by

$2.80382

115.426c

Quarter:

Aug.
Aug.

..

.

sales

(per

RYS.

Total

sales

total

sales

other

91.801d

$2.80078

$182,455

(per

primary

SELECTED

Aug.

orders—customers'

Customers'

TOTAL

1,260,039

1,319,083
$67,751,959

Aug.

value

111.038d

$2.79959

grade ingot weighted average (per lb.)

Total

purchases by dealers (customers' sales)—

Number

99%

99%

Other

purchases)—t

shares

of

£65.497

108.304c

111.077d
.

U. S.- price),__
—.i
flask of 76 pounds)—

(per

••Nickel

Net

COMMISSION

EXCHANGE

(customers'

£73.943

128.991c

652,920

•

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

11.500c

-114.892c

First

Aug.

.

£64.582

£75.914

ounce)

grade-(per

Bismuth

sales

12.000c.

£74.340

128.782c

ton)

(check)

boxed

97%

:

sales

12.525c

Aluminum—

Aug.

purchases

ton)

pound)
—
Platinum, refined
iper
pound)
;
Cadmium (per pound) delivered ton lots
(Per pound)
small lots

927,620

Aug.

sales

Odd-lot

York,

216,910

.Aug.

—

...

£51.682

12.025c

Antimony—

Aug.

:

.

sales

(per

Aug.

sales_

£64.668

13.000c

—

*

purchases—

Other

-

ounce

Quicksilver
UNew

——Aug.

9.300c
£51.048

£76.363

pound)

Straits

bulk

66,800

.—Aug.

Short
Total

(per

2,452,760

Total round-lot transactions for account of members—
Total

Gold

Aug.

sales--u—w—

10.868c
£65.122

£66.851

ounce)

(per

(per

York

1,431,250
1,884,730

i

9.500c

11.068c

11.154c

ton)

(per long
Exchange—

Exchange

New

1,894,380

floor—

Other ■sales^—
Total

London

Tin,

long

(per

York

1,738,520

sales

Short

New

Aug.

the

|_

£230.705

11.354c

a

_

long

months

Sterling

Aug.
off

initiated

transactions

Total

three

2,217,360

453,480

£235.082

12.500c

ton)

(per

pound)
delivered (per

prompt

and

1,911,590

sales
-

ttLondon,
ttLondon,

Sterling
534.010

28.564c

£234.125

£67.060

pound)-—

(per

Western,

2,455,240
541,170

sales

purchases

Short

§§Prime

Silver,

Aug.

28.397c
£234.136

£234.798

ton)

pound)—

(per

long

(per

Louis

St..

—Aug.- ■

.

(per

Louis

months,, London

Silver,

1,928,050

28.409c
£234.125

1

Silver

2,426,330
567,680

York
St.

prompt

Zinc—

600,015

long

(per

30.600c

30.600c

30,600c

[

pound)
pound);
long
ton)

(per

London

——Aug.
—

—

transactions

Total

$6,273

' "'

371,221

OF

sales

Other; sales
Other

ACCOUNT

FOR

months,
New

376,429

purchases

Short

$6,971

QUOTATIONS)—

(per

(per

prompt

East

Aug. 30

—

__

TRANSACTIONS

refinery

refinery

Common,

381,243

MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

ROUND-LOT

Export

24
24
24
24

Aug.
Aug.
Au&Aug.

of period—

__

J.

August:
Domestic

ttLondon,

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1959

M.

&

Copper—

Common,

ASSOCIATION:

at end

(E.

Lead—

Sep.

activity

orders

PRICES

4.40

(tons)

of

METAL

4.48

(tons)

Percentage

4.62

4.48

INDEX

PAPERBOARD

received

1,090

3.86

4.50

4.40

Group

Production

3.89

4.50

3

Group

COMMODITY

NATIONAL

3.94

4.51

3

Group

MOODY'S

549

1,192

'

3
3

—

Baa

Utilities

588

1,217

Sep.
Sep.
—Sep.

i

A

Public

$4,634

$5,193

Industrial

89.92

Sep.
-

-

Railroad

$5,191

July

omitted):
.__

Sep.
Sep.
Sep.
——Sep.

!

corporate

Aaa

Aa

114

INSTITUTE

—

Ordinary

89.78

"

~

119

*128

AVERAGES:

YIELD DAILY

BOND

Government

*126

RESERVE

FEDERAL

Avcrage=100—Month

1957-59

—

Total

MOODY'S

113

July:

89.78
.

86

120

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

86.91
■.

116

121

unadjusted

87.18

91.77

94

123

127

Sales

88.86

July:

of

9.300c

>

11.050c

:

of

91.62

;

19,489,000

7,833,000

12.000c

12.500c

3

19,305.000
15,767,000

8,162,000

NEW YORK—1957-59

OF

9.500c

•

11.250c

,

1

•t

3

Group

SECOND

DISTRICT

RESERVE

3

Group

Utilities

Public

BANK

30.600c
28.500c

Sep.
Sep.
Sep.

—

—

A

RESERVE

30.600c

Sep.

Baa

SALES

28.400c

Sep.
Sep.
Sep.
—Sep.

Aaa

STORE

30.600c

88.67

corporate

Average

19,306,000
15,692,000

326.5

28.425c

3

Sep.

—

COMMERCE):

OF

3

30.600c

AVERAGES:

DAILY

Bonds

Government

(DEPT.

Spinning spindles in place on Aug. 3___
Spinning spindles active
on
Aug.
3
Active spindle hours
(000's omitted) Aug. 3
Active
spindle hours for spindles in place

ERAL

Lead

:

__

28.375c

Au£- 30
Au8- 30
Aug. 30
Aug. 30
AuS- 30
Aug. 30
Aug. 30
Aug. 30

at

31

$27.50

■

copper—

Domestic

31-

July
(bales)

DEPARTMENT
METAL

July

17,088,000

247

COTTON

lb.)

(per

18,181,000

INDUSTRIAL)—DUN &
Aug. 29

COMPOSITE

AGE

*

,

Aug. 31

kwh.)——

000

INC.

BRADSTREET,
IRON

Aug. 24

—

Stocks
Shipped

(COMMERCIAL AND

FAILURES

100

=

INSTITUTE:

ELECTRIC

EDISON

INDEX—FEDERAL RESERVE

SALES

STORE

DEPARTMENT

i.,a

.tf-ais

our"!

?U

i

1J7SI{

jk

4

I

r

'

,0U(>

boxed.
U. S.
ton at

24

dhronicle

The Commercial and Financial

(940)

.

.

.

Thursday, September 5, 1963

* INDICATES

Securities Now in Registration
preferred. Price—By amendment

vertible

Business—Consumer

NOTE

—

Registration statements filed with

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

are

carried

now

tion." Dates shown in

the

separately at the end

company's

name,

Also

I

caption "Effective

those issues which became
and were offered pub¬

Registrations"

are

effective

week

this

licly.

and

debt

Proceeds—

repayment.

Management Co.

Co.

Adkins-Phetps
—

capital. Office—403 Magnolia St.,
North Little Rock, Ark. Underwriter — Trulock & Co.,
Proceeds—For working

Business—
long-term
growth of capital and income. Proceeds — For invest¬
ment.
Office—35 Congress St., Boston. Underwriter—
Kidder, Peabody & Co., New York. Note—The exchange
will not be consummated unless $25,000,000 of securi¬
ties are deposited and accepted. This means that the
Fund expects to issue a minimum of 1,000,000 capital
shares. Offering—Indefinite.

Bede

Inc., Pine Bluff, Ark.

Aileen, Inc.
(9/10)
Aug. 9, 1963 filed 200,000 common, of which 100,000^ will
be sold by company and 100,000 by stockholders. Price—
By amendment (max. $25). Business—Design, manufac¬
ture and distribution of popular priced sports and casual
wear
coordinates for women and girls. Proceeds—For

plant expansion. Office—29 West 38th St., New
Underwriter—Goodbody & Co., New York.

Airway

York.1

the

proceeds and loan them to Ventura.
Address—Washington
National
Airport, Washington,
D. C. Underwriter—None.
Amerel

Mining Co. Ltd.

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

Under¬

American Vitrified Products Co.
Aug. 6, 1963 filed 79,137 common to be offered for sub¬
scription by stockholders on the basis of one share
for each three shares held. Price—$19. Business—Manu¬
facture of various clay and concrete products. Proceeds
—For

debt

repayment, plant improvement,

and accounts receivable.

inventories

Office—700 National

City Bank

Bldg., Cleveland. Underwriter—None.
Atlantis International Corp.
April 30, 1963 filed 100,000 common. Price—$4. Business
—A real estate development
company. Proceeds—For
debt repayment, property
improvement, and working
capital. Office—700 Park Ave., Plainfield, N. J. Under¬
writer—S. Schramm & Co., Inc., New York.
^

Life

Insurance

Co.

of

N.

Y.

health insurance. Proceeds—For general corporate pur¬

Office—122 East 42nd St., New York. Underwriter

poses.

—None.
Bradford Speed Packaging & Development Corp.

Allegheny Ventura Corp.
July 12, 1963 filed 37,231 outstanding common shares to
be offered for subscription by stockholders of Allegheny
Airlines, Inc., parent, on basis of one Ventura share for
each 25 Allegheny shares held.
Price—By amendment
(max. $10). Business—Oar rental. Proceeds—Allegheny
receive

Standard

June 28, 1963 filed 200,000 common. Price—By amend¬
ment (max. $4). Business—Writing of life, accident and

Underwriter—None.

will

Aircraft, Inc.

July 16, 1963 filed 600,000 common. Price—By amend¬
(max. $3). Business—Company is engaged in the
design and development of several airplanes, including
a
light sports plane. Proceeds — For debt repayment,
product development, working capital and other cor¬
porate purposes. Office — 350 South Fountain Ave.,
Springfield, Ohio. Underwriter—Consolidated Securities
Corp., Pompano Beach, Fla. Offering—Indefinite.

Hotels, Inc.

April 1, 1963 filed 200,000 common. Price—$5. Business
—Company owns and operates a chain of motor hotels,
apartment buildings and a shopping center. Proceeds—
For loan repayment,
expansion and other corporate
purposes. Office — 901 Fuhrmann Blvd., Buffalo, N. Y.

• Atlas Finance Co., Inc. (9/9-13)
July 29, 1963 filed 37,500 shares of 6% cumulative

con-

(9/23-27)

July 22,

1963 filed

stockholders
on

shares

819,024

of Atlas

the basis of
held.

common

General

Bradford

one

Price—About

to be

offered

to

Industries, Inc., parent,

share for each two Atlas

$9.44

per

share.

Business—

Company holds a 40% stock interest in Maryland Log¬
ging Corp., which conducts logging operations in Liberia
and will acquire from
Atlas, Kliklok Automated Pack¬
aging Division, engaged in the manufacture and leasing
of
packaging machinery. Bradford also owns 69,509
shares (9.59%) of Foster Wheeler Corp. Proceeds—For
selling stockholder, Atlas General. Office—62 William
St., New York. Underwriter — Burnham & Co., New

shares for each share held. Price—50 cents. Business—
Production of a light two-place helicopter. Proceeds—
For

debt

repayment,

product development, working
capital and other corporate purposes. Office—1129 Club
House Road, Gladwyne, Pa. Underwriter—None.

Bridges Investment Fund, Inc. (10/1-4)
July 25, 1963 filed 200,000 capital shares. Price—Net
asset value (max. $10). Business—A new mutual fund.
Proceeds—For investment. Office—8401
Omaha. Underwriter—None.

W.

Dodge

Rd.,

C. I. T. Financial
Corp. (9/11)
Aug. 23, 1963 filed $100,000,000 of debentures due Sept. 1,
1984. Price—By amendment.
Business—Company and its
subsidiaries are engaged in the financing of retail instal¬
ment sales of goods,
making of consumer loans; leasing
of automobiles and
equipment; factoring; writing of life,

health and accident

insurance; and manufacture

of x-ray

equipment. Proceeds—For reduction of short-

term

borrowings, and working capital. Office—650 Madi¬
Ave., New York. Underwriters—Dillon, Read & Co.
Inc., and Kuhn, Loeb & Co., Inc., New York.

over-the-counter securities

Canaveral Hills
Enterprises, Inc.
May 10, 1962 filed 100,000 common. Price—$5. Business
—Company was formed to own and operate a country
club and golf
course, swimming pool and cabana club,
near
Cape Canaveral, Fla., and develop real estate,
erect

....

specializing in

NEW
ISSUES

:

au

BOUGHT-SOLD-QUOTED
for Banks, Brokers, Institutions

homes, apartment houses, motels, etc.

For debt repayment and
expansion.

a

ESTABLISHED

1942

Castle

39

Broadway, New York 6, N. Y.

Dlgby 4-2370

TWX: 212-5714)320

Direct Wires

to

R. J. HENDERSON & CO., INC., Los
Angeles
WOODCOCK, MOYER, FRICKE & FRENCH, INC., Philadelphia




&

Hospitality Services, Inc.

Dec.

14, 1962 filed $500,000 of 8%
Price—At par
($1,000).

debentures due

Business—Company

1969

plans

to

offer management and consultant
services to motels and
furnish them with
equipment.
Proceeds—For

general

•

purposes.

Beach, Fla.

pano

Office—1068

S.

Ocean

Blvd., Pom¬

Underwriter—None.

Chemair

Corp. (10/1-4)
^8, 1962 filed $150,000 of 6% subordinated income

Dec.

Members of New York Security Dealers Association

Proceeds—

Office—309 Ainsley

Bldg., Miami, Fla. Underwriter—Willis E. Burnside
Co., Inc., New York. Offering—Indefinite.

corporate

d SIEGEI, ¥ %J*u,

Industries, Inc.
29, 1961 filed 300,000 class A
common, of which
225,000 are to be offered by the company and
75,000 by

debentures

due

1973

and

30,000 common shares to be
offered in units
consisting of one $10 debenture and two
common.
Price—$12 per unit. Business—Production and
sale of chemicals
designed to control
growth

odors,

and

air

bacterial

pollutants;

and development, produc¬
electronic vaporizing unit for dis¬
pensing such chemicals. Proceeds—For debt
repayment,
tion

and

sale

of

an

equipment, sales promotion and working capital. Office
N. La Salle
St., Chicago. Underwriter—Price In¬

—221

Price—$5.

Business-rDesign

and

manu¬

facture of women's, misses' and junior
sportswear co¬
ordinates, and dresses. Proceeds—For debt
repayment
equipment and working capital. Office—2025

McKinley

St.,

Hollywood, Fla. Underwriter—-Clayton
Corp., Boston, Mass. Offering—Indefinite.

Securities

Life Insurance Co. of New
York
1963 filed 40,000 capital shares to be offered
subscription by stockholders on the basis of two I

March 26,
for
new

shares for

each

three

held.

Price—By amendment

(max. $26). Business—Writing of life,
accident, health."
and disability
insurance, and annuities. Proceeds For'
expansion. Office—444 Madison Ave., N. Y. Underwriter

—Alex. Brown &

Sons, Baltimore. Offering—IndefiniteColeridge Press Inc.
1963 (MReg. A") 50,000 common. Price
$5.
General book publishing.
Proceeds
For

June 19,
Business

—

—

—

working capital and purchase of equipment. Office—60East 42nd St., New York.
Underwriter—Hannibal Secu¬
rities, Inc., New York.

v./;

Mining Co.

/

.

I

Sept. 20, 1962 filed 200,000 common. Price—$1. Busi¬
mining. Proceeds—For exploration and!
operating expenses. Office—Creede, Colo. Underwriter

ness—General
—None.

Commercial

Life

Insurance

Co.

of Missouri

Nov.
for

26, 1962 ("Reg. A") 46,000 common to be offered',
subscription by stockholders on the basis of one sharei

for each 3.36 common shares held.

Price—At-the-market..

Business—Sale of health,
accident, life and hospital in¬
surance.
Proceeds—For working capital.
Office—3570'
Lindell
&

Blvd., St. Louis. Underwriter—Edward D. Jone«'
Co., St. Louis. Offering—Indefinite.
1

Common Market Fund, Inc.
March?;7; 1963 filed 2,000,000 capital shares. Price—Net;
asset

value

plus

8.5%.

Business—A

new

mutual

fundi

specializing in securities of foreign and American com-panies operating in the European Common Market.
Proceeds—For

investment. Office—9465 Wilshire Blvd...

Beverly Hills, Calif. Underwriter—Kennedy,
Co. (same address). Offering—Indefinite.

Cabot

&•

Community Health Associations, Inc.
April 12,
to

are

1963

be

filed

offered by

150,000 common, of which 100,000'
company and 50,000 by Harry E.

Wilson, President. Price—$15/Business—Sale of hospital,
surgical insurance contracts. Proceeds—For invest¬
ment, sales promotion, and other corporate purposes.;
Office—4000 Aurora Ave.,
Seattle, Wash. Underwriter—and

None.

Computer Sciences Corp.

Brantly Helicopter Corp.
July 23, 1963 filed 588,780 common to be offered for
subscription by stockholders on the basis of three new

son

3>

Chestnut Hill

Nov.

York.

and related

in

vesting Co., New York. Note—This company
formerly
named Chemair Electronics
Corp.

Colorado Imperial

ment

Beneficial

ISSUE

ITEMS REVISED

Citadel

A

Aug. 7, 1963 ("Reg. A") 50,000 common. Price—$6. Busi¬
ness
Wholesale distribution of agricultural products.

ADDITIONS

PREVIOUS

was

writer—None.
Bay State Exchange Fund, Inc.
May 29, 1963 filed 10,000 $1 par capital shares to be
offered in exchange for certain acceptable securities on
the basis of one share for each $25 of deposited securi¬
ties. Exchange is believed by counsel for the Fund to
be tax-free for Federal income tax purposes.
closed-end investment company seeking

I

•

stockholders.

28, 1963 filed $1,500,000 of 6% conv. subord. de¬
due 1978. Price—At par. Business—A holding
company for two insurance subsidiaries. Proceeds—For
loan
repayment, investment, and advances to sub¬
sidiaries. Office—112 California Ave., Reno, Nev. Under-

the underwriter but

under the

shown

capital

bentures

parenthesis alongside

not, in general, firm offering dates.

are

Atlas

and in the index, re¬

flect the expectations of

working

March

"Securities Now in Registra¬

of this section

(max. $20).

financing.

dealer

and

Office—262
Spring St., N. W., Atlanta, Ga. Underwriters—Marshall
Co., Milwaukee, and McCormick & Co., Chicago.
For

SINCE

Aug. 6, 1963 filed 200,000

(9/18)

of which 175,000'
by the ^.company and 25,000'
by stockholders. Price
By amendment (max.
$13). Business — Company provides various computer'
shares

to

are

be

common,

offered

shares

—

services to

industry, government agencies and scientific

institutions.

corporate

Proceeds—For

purposes.

working capital and other"
Office—650 N. Sepulveda Blvd., Ell

Segundo, Calif. Underwriter—White, Weld & Co., Inc.,.
New York.

Continental Reserve Corp.

May 13, 1963 filed 45,000 class B common. Price — $40..
Business
Company plans to acquire, organize, and',
manage life, accident and health insurance concerns..
—

Proceeds

East 40th

—

For investment in

Defenders
Jan.
ness

subsidiaries. Office—1/14*

St., New York. Underwriter—None.
Insurance Co.

30, 1963 filed 100,000 common. Price—$12.50. Busi¬
Company plans to write automobile insurance.
—

Proceeds—For general corporate purposes. Office—146;
Old Country Rd., Mineola, N. Y. Underwriter—None.
•

Denny's Restaurants, Inc. (10/1-4)
Aug. 26, 1963 filed 167,000 common, of which 111,110 areto be offered by company and
55,890 by certain stock¬
holders. Price—By amendment (max. $10). BusinessOperation of 71 Denny's restaurants located in the west¬
ern

United States. Proceeds—For general corporate
pur¬
Office — 7051 Monroe Ave., Buena Park, Calif-

poses.

Underwriter—Dempse^-Tegeler & Co., Inc., St. Louis.
Deuterium Corp.

Sept. 28, 1962 filed 120,000

common

with attached

war¬

rants to purchase an additional 120,000 shares to be of¬
fered for subscription by holders of its stock and deben¬
tures in units
(of one share and one warrant) on thebasis of 3 units for each 5% prior preferred share
held,
one unit for each 5%
preferred A stock held and 40'

units for each $1,200 face

amount of non-interest bear¬

ing subordinated debentures held. At the

same time, thewill offer the securities to the public. PriceTo subscribers, $20; to public, $22.25. Business—Com¬
pany plans to erect a small size production and experi¬
mental plant for the limited manufacture of deuteriunn

company

and deuterium

oxide, and to establish and equip

eral research laboratory. Proceeds—For working

a

gen¬

capital*

construction,

equipment and other corporate purposes*.
Office—260 Lexington Ave., N. Y. Underwriter—None.
Doman Helicopters,

Inc.
19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held. Price—By amendment (max.
$1.25). Business—Research, development and construc¬
April

tion of experimental

helicopters.

Proceeds

—

To obtain

Number 6296

198

Volume

Conn.

debt, etc. Address—Municipal Airport, Danbury,
Underwriter—None. Note—The SEC has issued a

stop

Dominguez Water

Price—By amendment

70,000 common.

Aug. 5, 1963 filed

$8). Business—A public utility engaged in sup¬
plying water in a service area located within Los An¬
geles County. Proceeds—For selling stockholder, Domin¬
guez Estate Co., parent. Office—21718 South Alameda
St., Long Beach, Calif. Underwriter — Eastman Dillon,
Union Securities & Co., Los Angeles.
(max.

(9/10)

Producing Co.

Dorchester Gas

convertible

July 25, 1963 filed $3,500,000 of subordinated
debentures due Aug. 1, 1975. Price — By amendment.
Business—Production of natural gas and its various by¬

products. Proceeds—For debt repayment and working
capital. Office—1501 Taylor St., Amarillo, Tex. Under¬
writers—A. C. Allyn & Co., Chicago; Allen & Co., New

Dallas Corp., Dallas.

York; Metropolitan
Dri-Zit Corp.

! ;

.

May 29, 1963 ("Reg. A") 115,056 common. Price—$2.50.
Business—Manufacturer of dri-zit (a home product used
to absorb odors and moisture); a cleaner for oven and

diaper garment for infants. Pro¬
ceeds
For expansion, inventory and debt repayment.
Office—2 Ryland St., Reno, Nev. Underwriter — First
Nevada Securities Corp., Reno, Nev.

barbeque grills; and a
—

Dynapower Systems Corp.
Sept. 28, 1962 filed 750,000 common. Price—£1 Bust*
ness—Manufacture of electro-mechanical vehicles and
electronic devices for medical and marine purposes.
Proceeds—For working capital, equipment and debt re¬

Office—2222 S. Centinela Ave., Los

payment.

Inc.

Fund,

Income

May 31, 1963 filed 2,000,000 capital shares. Price—Net
asset value plus 8%%. Business—A new mutual fund
seeking current income. Proceeds—For investment. Of¬
fice—65 Broadway, New York. Distributor—F. Eberstadt
&

Inc., New York.

Co., Managers & Distributors,

Electro-Optical Systems, Inc.
June 11, 1963 Tiled 403,000 common,

BusinessDesign and manufacture of optical systems for the De¬
fense Department and for private industry. Proceeds—
For debt repayment and working capital. Office—300 N.
Halstead St., Pasadena, Calif.-Underwriters — White,
Weld & Co., Inc., and Kidder, Peabody & Co., Inc., N. Y.

r;

f. s,-'•*•••.

(max. ..$10).

amendment

Price—By

holders.

NEW ISSUE CALENDAR

(Roman

11

(Bids

$12,000,000

EDST)

a.m.

(Hemphill,

Dillon,

(Eastman

Securities

Union

Co.)

37,500

shares

Common
497,500 shares

Co.)

Noyes &

Equip. Trust Ctfs.
$6,900,000

Units

Bond Fund, Series 5
$15,000,000

Co.)

&

Nuveen

Weld

Debentures

Producing Co

Allen & Co.; Metropolitan Dallas
Corp.) $3,500,000

Langley

C.

Pierce,

Lynch,

Fenner

&

I.

Financial

T.

(Dillon,

Read

Smith

Inc.)

shares

500,000

—Debentures
and

Inc.,

Loeb &

Kuhn,

Co.,

Nevada

Packaging & Development
:
.Common

Morton
(B.

(E.

F.

&

N.

Common

:___

Hutton

Inc., and Baker,
330,000 shares

Co.,

&

Co.,

Inc.)

Co.,

12

EDST)

noon

'

777-7'

V"

540,000

Rogers

(V,

Lewis Business

&

Common

—Debentures

Forms, Inc

(Reynolds & Co.,

National Fence Manufacturing Co.,
Securities

Resort

Corp.

Co.,

Inc.)

Inc

L.

Warren

$1,000,000

Common

Summit National Holding Co
Reid

(Fulton,

;

September 17

Atlantic

&

Co.,

Inc.)

12
■

\




Jersey Central Power &
(Bids

EDST)

11

a.m.

130,000

Common

f

shares

Light Co

EDST)

...

Bondj

$18,525,000

Natural Gas & Oil Producing Co
(Peter Morgan & Co.) $900,000
October 3
Wisconsin

(Bids

10

a.m.

October 7

Common

Bonds
$20,000,000

December 3

December 4

Bonds

World's

„

Fair

Corp

(H. S. Caplin & Co.)

$500,000

-Preferred

$10,000,000

(Wednesday)

•

.

Debens.
.

•

Bonds

Electric Co
to

be

received)

$10,000,000

(Tuesday)

Equip. Trust Ctfs.

Pacific Ry
■

(Bids

12. noon

EST»

Virginia Electric & Power
.

•*

$10,000,000

(Tuesday)

December 10

$15,000,000

(Monday)

American-Israel

Bonds

Power Co

(Bids

Corp

CDST)

(Tuesday)

19

Pacific Northwest Bell. Tel. Co.———Debentures
(Bids to be received) $50,000,000

(Thursday)

Public Service

$7,000,000

received)

(Bids to be received)

Northern

(Tuesday)
noon

Co. i

&

be

shares

$1,800,000

£oast Line RR
(Bids

167,000

Massachusetts

Units
Co.)

Wheat

to

(Bids to be received)

$875,000

of Missouri
(R.

Common

C.

(J.

Preferred

England Power Co

—Common

Inc.)

Co.,

& Materials Corp

Stone

and Saunders, Stiver & Co.)

Inc.

$1,250,000

(Netherlands

General

Bonds

received) $30,000,000

New

$5,000,000

Inc.—
&

be

England

RR.__Equip. Tr. Ctfs.

CDST)

noon

to

New

$180,000

Co.)

Chicago Burlington & Quincy

$300,000

Co.)

(Thursday)

November

Units

Restaurants,

$6,420,000

12 noon EDST)

Capital Shares

200,000 shares

Investing

(Dempsey-Tegeler

—Equip. Trust Ctfs.

Georgia Power Co

105,458 shares

Corp.

12

$5,000,000

received)

Georgia Power Co

underwriting)

(Bids

(Monday)

Anderson

E.

Common

Co

(Price

shares

Bonds

be

7

November

(Bids

shares

Juniper Spur Ranch, Inc..

—

(Bids

Chemair

to

Ry. Co._
(Bids

534,000 shares

(Tuesday)

October 1

60,000

received)

Common

Co

(Dean Witter & Co.)

Denny's

September 16

(Bids

"

Southern

stockholders—no underwriting)

Brothers

be

Brockton Edison Co

•

'•

(Wednesday)

September 25
to

;V

$1,485,000 : '

\

Preferred

Co

to

(Bids

$7,000,000

received)

(Tuesday)

Edison

Brockton

Common

7

'

'

Bonds

be

to

October 29

Common

Securities Inc.)

(Tennessee
V

-.

.

Debentures

Otter Tail Power Co

600,000 shares

Allyn & Co.)

v.

(Wednesday)

October 23

Common

Recording Industries Corp.-

i

-Common
Brothers)

$10,000,000

$750,000

Co.)

Financial Corp.
C.

(A.

Preferred
100,000 shares

Public Service Electric & Gas Co
(Bids 11 a.m. EDST) $40,000,000

(Tuesday)

September 24
First Western

(No

$6,540,000

Tektronix, Inc.
(Lehman

Inc.)

____

Fuller &

D.

•

Ben. Int.

Underwriters

Funds

Bonds
$11,000,000

received)

be

(Tuesday)

October 22

.

Debentures

Bridges Investment Fund, Inc.-

Simonds

Y., Chicago & St. Louis RR._-Equip. Tr. Ctfs.
(Bids

400,000 shares

$2,500,000

(B. C.) Realty Trust
Morton

C.

to

Common

Marking System Co
Co.)

$9,000,000

(Monday)

October 21

$450,000

Life Insurance Co. of Florida
(Pierce, Wulbern, Murphey,; Inc.)
&

Debentures

Light Co
EDST)

Gulf States Utilities Co
(Bids to be received)

Common
(Charles Plohn & Co.)

Monarch

a.m.

(Wednesday)

(Bids

General Industries, Inc.
Co.) 819,024 shares

—underwritten

11

Co

Power

Inc.)

$100,000,000

Handleman Co.

(Tuesday)

15

(Bids

(Monday)

to stockholders of Atlas
by Burnham &

(Offering

(Offering

Corp

Co.

&

Co
Units
stockholders—underwritten by Pierce, Wulbern,
Consolidated Securities Corp.) 338,755 units

and

$100,000,000

Inc.)

Co.

&

Heck's, Inc.

•;

Common

(Wednesday)

September 11

Inc.

Rum

Jersey Central Power &

Debentures

;

Hawaiian Telephone

C.

Murphey,

200,000 shares

(Monday)

14

Florida

(Offering to

.—Bonds

(Thursday)

Barney

Corp.

Capital Shares
100,000 shares

Co.)

&

Foote, Cone & Belding, Inc.
(Merrill

Old

& Co.)

and Sanders

Corp.

October 16

Co.;

Electronic Associates, Inc
(W.

Boston

(First

(Bids

200,000 shares

(Goodbody & Co.)

&

page

on

Co.___Capital Shares

Republic National Life Insur.

October

(S.

Common

Allyn

Continued

200,000 shares

Inc.)

Co.,

&

(McDonald

Inc.

C.

Milk
&

filed

1963

26,

October

Northern States Power Co. (Minn.)
(Bids 11 a.m. EDST) $15,000,000

September 10 (Tuesday)

(A.

130,000 common, of which 120,000
are to
be offered by company and 10,000 by a stock¬
holder.
Price—By amendment (max. $8).
Business-*
Company is engaged in the sale of terrazzo and quartz
aggregate, marble, granite and related items and in the
production of certain marble and quartz aggregates.
Proceeds—For debt repayment, working capital, equip-

Common

Teaching Machines, Inc

<

Co., N. Y.

(10/1)

Corp.

General Stone & Materials

*

Piedmont Natural Gas Co., Inc.
-Common
(Offering to stockholders—underwritten by
White, Weld & Co. Inc.) 139,940 shares

.

•

Aug.

(Wednesday)

September 23

Inc.

Nuveen Tax-Exempt

Dorchester Gas

Newark, N. J.

Offering—Postponed.

shares

70,000

Co.)

&

Computer Sciences Corp

Units

Inc

Preferred

McCormick &

(Bids 12 noon EDST)

Aileen,

Office—1180 Raymond Blvd.,

Investment.

Underwriter—Godfrey, Hamilton, Taylor &

Common

Dominguez Water Corp

Bradford Speed

Western RR

(John

Investment Co.

Oct. 27, 1961 filed 330,000 common. Price—$3. Business
—A small business investment company. Proceeds—For

St., Boston. Underwriter—Paine, Webber, Jackson
Curtis, Boston. Offering—Indefinitely Postponed.

$300,000

Co., Inc
and

City, Mo.

Garden State Small Business

primarily in equity type securities of Israeli

September 19

(Monday)

Hawthorn-Mellody,
&

Kansas

15, 1962 filed 2,750,000 shares of beneficial in¬
Price—$10. Business—A mutual fund which plana

(Smith,

(Midland Securities Co., Inc.)

Norfolk

24, 1963 ("Reg. A") $300,000 of 6% subordinated
debentures due Aug. 1, 1978, and 30,000 common to be
offered in units of one $500 debenture and 50 common.
Price—$500 per unit. Business—Operation of a discount
type department store in the Greater Kansas City area.
Proceeds—For working capital, and other corporate pur¬
poses. Address — 95th & Metcalf Sts., Overland Park,
Kansas. Underwriter — Midland Securities Co., Inc.,

Chicago. Underwriter—None.

Dow Chemical Co

French Market Shopping Center,

Co.

(9/6)

Inc.

French Market Shopping Center,

Merrill

—

June

First American Israel Mutual Fund

$6,420,000

(Friday)

September 9

Price—By amend¬

Park Ave., New York. Underwriter
Lynch, Pierce, Fenner & Smith Inc.

July 1, 1963 filed 64,000 common to be offered for sub¬
scription by stockholders. Price—By amendment (max.
$20). Business—A holding company whose subsidiaries
are engaged in the sales finance business and the writ¬
ing of marine and credit life insurance. Proceeds—For
redemption
of
outstanding second preferred
stock,
working capital, and other corporate purposes. Office—
1701 Pennsylvania Ave., N. W., Washington, D. C. Un¬
derwriter—Mackall & Coe, Washington, D. C.
/

invest

(9/10)

Foote, Cone & Belding, Inc.

—200

Federal Services Finance Corp.

companies. Proceeds—For investment. Office—141

1962 filed 300,000 common. Price—$5. Busi¬
Operation of Jai Alai games and pari-mutuel

(max. $17). Business — Company is the seventh
largest American advertising agency in terms of 1962
total volume. Proceeds—For selling stockholders. Office

Corp.
filed 20,000 common, of which 17,500 are to
be offered by company and 2,500 by a shareholder. Price
—By amendment (max. $15).
Business—Design and
manufacture of tools, dies, molds, beryllium castings and
the distribution of plastic, metal and glass products for
home use. Proceeds—For a recession offer to stockhold¬
ers And reduction of accounts payable.
Office—3600 W.

to

Vegas,

ment

Equip. Trust Ctfs.

September 6

Finance

•

Fedco

terest.

28,
—

Aug. 16, 1963 filed 500,000 common.

Oct. 29, 1962

(White,

Bonds

(Bids 12 noon EDST)

(Marshall

,

geles. Underwriter—To be named. Offering—Indefinite,

Aug.

Proceeds—For ex¬

agencies.

leased quarters,
Office — Fern
Park, Fla. Underwriter—Consolidated Securities Corp.,
Pompano Beach, Fla. Offering—Indefinite.

Equity Fundng Corp. of America
March 29, 1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50). Business—A holding company for
firms selling life insurance and mutual funds. Proceeds
—For hew sales offices, advances to subsidiaries and
working capital. Office—515Q Wilshire Blvd., Los An¬

Pratt Ave.,

estate

betting. Proceeds—For rent, purchase of
building improvements, working capital.

Office—118 E. 28th St.. New
Co., New York. Of¬

fering—Postponed.

$266,000

Johnson)

&

Southern Ry. Co

Atlas

ness

York. Underwriter—L. D. Brown &

September 18

Common

Inc

Distributors,

Book

Public Service Co

Iowa

June

and processing of tray-forming and chip-covering mate¬
rials. Proceeds—For operating expenses, equipment, in¬

advertising.

real

and

Florida Jai Alai, Inc.

Dispenser Corp.

29, 1963, filea o0,000 common. Price—$2. Business
—Manufacture of the SAFER Butter Chipping machine,

(Thursday)

September 5
International

insurance

pansion. Office—112 Las Vegas Blvd., South, Las
Nev. Underwriter—A. C. Allyn & Co., New York.

Jan.

ventory and

15,

<

::r

•

puter and instrument manufacturer. Proceeds—For loan
repayment, equipment, working capital and other cor¬
porate purposes. Address—Long Branch, N. J. Under¬
writer—W. C. Langley & Co., New York.

of which 140,000 are

and 263,000 Shares by stock¬

to be offered by company

1963 filed 100,000 capital shares.
Price — By
amendment (max. $70). Business—A diversified com¬
1,

Electronic

(9/24)

Financial Corp.

1963 filed 600,000 common, of which 150,000
will be sold by company and 450,000 by stockholders.
Price—By amendment (max. $25). Business—A holding
company for First Western Savings & Loan Association,
and Nevada Bank of Commerce. Company also operates
Aug.

.

(9/10)

Inc.

Associates,

Electronic

Angeles.

Underwriter—None.
Eberstadt

•

Aug.

statement.
Corp. (9/17)

suspending this registration

order

to.purchase the company's assets.

Western

First

Xerox Corp.,

Note—This statement may be withdrawn.
has agreed

25

(941)

The Commercial and Financial Chronicle

.

train service personnel, repay

of models,

certification

.

.

.'(Bids

$4,800,000

Co

to be received)

$30,000,000

T

—Bonds

26

26

(942)

Continued from page

insurance.

(jointly); Eastman Dillon, Union Securities & Co.; Equi¬
Securities Corp.; White, Weld & Co.; First Boston
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. Bids;
vi—Sept. 5 (11 a.m. EDST) at 20 Pine S't. (10th, floor),

25

table

meiit, and other corporate purposes.

Office—1401 Frank¬

Va. Underwriter—J. C. Wheat

Rd., S. W., Roanoke,

lin

/■New York.

Richmond, Va.

& Co.,

Continental Real Estate Investment Trust

Great

3, 1961 filed 300,000 shares of beneficial interest.
Price—$10. Business—Real estate. Proceeds—For invest¬
ment.
Oitice—d3U St. Raul Pi., Baltimore.
Underwrite!
Xo be named.
Note—This firm formerly was knowD

Aug

Continental Real Estate Investment Trust.

ms

/

April

Diversified

Fund,

Proceeds—For investment. Of
Broadway, N. Y. Underwriter—Filor, Bullard
Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd. Offering—Indefinite."
fice—26

Under¬

Lord Jim's -Service

Inc.

Jam

550,000 common. Price—Net asset:
mutual fund special¬
izing in Israeli and American securities. Proceeds—For
investment. Office—54 Wall St., New York. Distributor—
Israel Fund Distributors, Inc. (same address).' v

'

Fund,

20, 1963, filed 3,000,000 common. Price—$2, Busi¬
ness—Company plans to operate subsidiaries in the field#
insurance, finance, etc. Proceeds—For gen¬
Feb.

Office—1107 Federal Securities

"Isras"
June

Inc.

Israel-Rassco Investment Co.,

bridge, Detroit. Underwriters—E. F. Hutton & Co., Inc.,
New York, and Baker, Simonds & Co., Inc., Detroit.

Jaap Penraat Associates, Inc.
Jan. 30, 1962 filed 100,000 common. Price—$3.
—Industrial

(9/25)

/Lambert

& Stephen,
Offering—Indefinite.

.

Co.

Oct.

investment

Price—$3. 'Business—A

company.

Office—760 S.

Hill

Proceeds—For

St., Los Angeles.

in¬

not

&

resorts

Wil-

Pine

Beane, New York. Note—This statement will
as
previously reported, but will be

Horace

a.m.

1, 1963 filed 200,000 common, of which 80,000 are
to be offered by company and 120,000 by stockholders.
Price
$12.50. Business—"Writing of life, accident and

-

For

—

health insurance. Proceeds—For

general

Office—216 E. Monroe St., Springfield, 111. Under¬
writer—Horace Mann Investors Inc., (same address). /V]
•

International

June 24,

Book

Distributors, Inc. J 9/5)
66,500 common. Price—$4. Business

1963 filed

St., New York. Information Meeting—Oct.
EDST) at same address.

general

Anderson &

corporate pur¬

poses.

10

of

encyclopedias,

Proceeds—For

Rd., Dallas.
Sons, St. Louis.
Investors

July

3,

asset

value

1963

filed

Fund, Inc.
capital shares. Price—Net

3,000,000

plus

Business—A

new

mutual

fund

which
will
succeed
to
business
of
Investors
Group
Canadian Fund Ltd., and invest in securities
throughout
the Free World. Proceeds—For investment. Address—
1000 Roanoke
Bldg., Minneapolis. Distributor—Investors

Diversified Services, Inc.

(same address).

50

Congress St., Boston. Underwriter—Keystone Co. of

Boston.

May 31, 1962 filed 200,000 shares. Price
—A

real

struction

estate
and

investment

investment.

trust.

Office

Ave., N. W., Washington, D. C.
Iowa Public Service Co.

July

19,

1963

—

—

3315

$10. Business
—

For

con¬

Connecticut

Underwriter—None.

(9 5)

filed

$12,000,000 of first mortgage bonds
due 1993. Proceeds—For loan
repayment and other cor¬
porate
Sioux

able

purposes.

City,

Address

Iowa.

—

Orpheum

Electric

Underwriters—(Competitive).

bidders: Kidder, Peabody




-

Bldg.,

Prob¬
& Co.-Blyth & Co., Inc.

end./Proceeds

-

,

Meridian

:

Proceeds—For

due

Sept.

1,

1975. Price

Business—Manufacture of

a

—

diversified

By amendment.
line

of

business

Proceeds—For

plant expansion, loan repayment
working capital/Office—243 Lane Ave., North, Jack¬
sonville, Fla. Underwriters—Reynolds & Co., Inc., New
York, and Saunders, Stiver & Co., Cleveland.

medical

electronic

equipment.

';

/>•// ■///•./ ;/;;/;/>':

investment.

Office

—•-.714

Denver." Underwriter—Centennial
search

•// .,.
Priced-Net

Boston

Management

Bldg.,
&

Re¬

Corp., (same address').■■"/'3
'V'

Middlesex Water' Co.

/•/•:'

//5'/'• %'

June

/,

5, 1963 filed 35,000 common. BHce^By •' amend¬
ment (max. $36). Business—Collecting and
distributing
in

water

certain

areas of New Jersey? Proceeds —( For
Office—52 Main St.,. Woodbridge, N." J.
Underwriter—Kidder, Peabody & Co., Jnc^ New York.

debt repayment.

,

Offering—Expected in]
Midwestern

-

Industries

Corp^:^-^

•Aug/n3v 1963 '("Reg/1 A''}" $300,000 of; 7% convertible
sinking fund debentures due 1975. Price—At par. Busi¬
ness—Manufacture
For

of

small (pleasure

craft.. Proceeds—

debt

repayment, equipment, research and working
capital. Address —r Harlan; Ind. Underwriter 4--::Smith,

Houston

&

Co., Inci,. Fort- Wayne;-"

Midwest Technical

Development Corp^ */ / '//]
Feb. 26,- 1962 filed 561,500 common to be offered for
subscription by-stockholders on the basis of one share
for each two shares held.
Price—By amendment (max.
Business

—

A

2615

debentures

of

March 4, 1963 filed 500,000 capital shares:
asset value plus 5%. Business—A new mutual fund to be
offered initially to members of the medical profession.

Office

forms.

the

•

Fund, Inc.

ment

Business

investment in

City,
Corp., Los Angeles. /• •/'

Proceeds

expensively priced men's and children's belts. Proceeds
—For debt repayment, sales
promotion, and other cor¬
porate purposes. Office—33-00
Northern Blvd., Long
Island City, N. Y. Underwriter—T. W. Lewis & Co., Inc.,
New York. Offering—Expected in late September.

For

general corporate purposes.;' Office—
Calif.
Underwriter
Financial -Equity

company.

1963 filed 125,000 common. Price—By amend¬
(max. $5). Business—Volume manufacture of in¬

—

For

—

Studio

June 28,

Forms, Inc. (9/16)
July 22, 1963 filed $1,250,000 of convertible subordinated

Proceeds

-

Manufacture

—

$7).

■•/■/(/ ../£/;

open

Proceeds

Key Finance Corp.
June 7, 1963 filed 80,000 common.
Priced—By amend¬
ment
(max. $5). Business—Operation of a small loan

Lewis

Investors Realty Trust

'U:V(

•/■
/-./;•'
; /z
'•i'13, 1961 filed 250,000 common.. Price ^ $1. Busi¬

ness

;

•]/. Krasnow Industries, Inc..

Inter-Continental

Underwriter—

Medical Video Corp.
Nov.

corporate purposes. Underwriter — V. E,
Co., Newhouse Bldg;;' Salt Lake City,
j

dictionaries, atlases, etc.

a
selling stockholder. Office—2925
Underwriter — A. G. Edwards &

Atlanta./
/-"'.'Vv-

;

industry and capital growth situations./Office
Lafayette St., Denver. Underwriter—* Medical As¬
sociates, Inc. Denver. '■' /■■■ •/•/•' '/']///'•//■'•'•
"•'

—

Merrell

Bldg.,

•■:

.

—677

-

ceeds—For

vices.

Federal

medical

(10

business in Puerto Rico. Proceeds—For loan
repayment,
expansion and other corporate purposes. Address—Rio
Pro¬
working capital and sales promotion. Office •"* Piedras, Puerto Rico. Underwriters
Morris Cohon & •
—6660 Biscayne Blvd.,
Co., and Street & Co., Incs New York. Offering—In¬
Miami, Fla. Underwriter—Ro¬
man &
definite.- 'r/■ \//./-■ ■''
Johnson, Fort Lauderdale, Fla. Note—This state¬
:-■■'.
ment has become effective.
Keystone international. Fund, Inc.
International Data Systems, Inc.
Aug. 13, 1963 filed 200,000 common. Price —r Net asset
Aug.T2, 1963 ("Reg. A") 11.000 common to be offered
value plus 7%Business—A new mutual fund which
for subscription by stockholders of record Oct. 23,
will acquire assets of Keystone International Fund.
1963,
Ltd.,
on
a
pro-rata basis. Price—At-the-market. Business— / a Canadian
corporation, and invest in securities through¬
Development, design and manufacture of electronic de^:
out the Free World. Proceeds—For investment. Office—

—Sale

Fulton

become

('/;/;

Juniper Spur Ranch, Inc. (9/16-20)
May 27, 1963 ("Reg. A") 300,000 common. Price — $1.
Business—Construction of a gasoline and diesel oil fill¬
ing station, a restaurant and allied facilities. Proceeds—

Mann Life Insurance Co.

Feb.

v

Salomon Brothers & Hutzler-Merrill
Lynch, Pierce, Fen¬
ner & Smith Inc.
(jointly); Kidder, Peabody & Co.; Har¬
riman Ripley & Co. Bids—Oct. 15 (11 a.m. EDST) at 80

amended.
'

/

Bowl Rd., Morristown, N. J. Underwriters—(Competitive). Probable bid¬
ders: Halsey, Stuart & Co. Inc.; White, Weld &
Co.; First
Boston Corp.; Eastman Dillon, Union Securities & Co.-

withdrawn

be

v

Marshall Press, Inc.
vlay 29,: 1962 filed 60,000 common. - Price—$3.75. Bualoess—Graphic design and printing, Proceeds^-For pub¬

Address—Madison Avenue at Punch

throughout ! U. S. Proceeds—For
debt repayment, construction, and other corporate pur¬
poses. Office — 4344 East Indian School Rd., Phoenix.
liston

—130

None.

Jersey Central Power & Light Co. (10 15)
Aug. 21, 1963 filed $9,000,000 of debentures due Oct. 1,
1988. Price—By amendment. Proceeds—For construction.

bentures due 1978, and 75.000 common to be offered in
units consisting of $50 of debentures and 3 shares. Price
—$68 per unit. Business—Development and operation of

Underwriters—Boetteher & Co., Denver, and J. R.

,

,

Holiday Mobile Home Resorts, Inc.
March 27, 1963 filed $1,250,000 of 6%% conv. subord. de¬

home

Central

Ohio. Underwriter—None.

.

Alto, Calif. Underwriter
Distributors, Inc. (same address)/
* :

address.

same

Under¬

writer—None.

mobile

Address—402

purposes.

-

16, 1961 filed 2,265,138 common to be offered for
subscription by stockholders of Union Bank of Califor¬
share-for-share basis.

corporate

.

provide fixtures and inventory for a new store, and
for working capital. Office—6400 MacCorkle Ave., S. W.,
St Albans,. W. Va. Underwriter—Charles Plohn & Co.,

a

general

lishing a sales catalogue, developing a national sales
ttaff and working
capital. Office—812 Greenwich St.,
Jersey Central Power & Light Co. (10/1)
N. Y. Underwriter—To be named.
Offering—Indefinitely
Aug: 15, 1963 filed $18,525,000 of first mortgage bonds
'postponed/'
;//']///
' '
due Oct. 1, 1993. Proceeds—To refund outstanding 5%%>
/-'-Medic Corp.
*
'/ ' "
*';*'/ '
first mortgage bonds due 1990, and reimburse company's
Feb. 28,
1963;^ filed./T,006,000:f"jelSa^ts
treasury for construction expenditures. Address—Madi¬
$1.25. Business—A holding company for three life insur¬
son Ave., at Punch Bowl
Rd., Morristown, N. J. Underance firms. Proceeds—For loan
repayment, operating ex¬
writers—(Competitive). Probable bidders: Halsey, Stuart
penses,
and investment in other insurance concerns.
& Co. Inc.; White, Weld & Co.; First Boston Corp.; East¬
Address—714 Medical Arts Bldg., Oklahoma
City. Under¬
man Dillon, Union Securities & Co.-Salomon Brothers
writer—Lincoln Securities Corp. (same address)!//;
/
Hutzler
Merrill Lynch/ Pierce, Fenner " & Smith : Inc. Medical Industries Fund, Inc.
(jointly); Kidder, Peabody & Co.; Harriman Ripley &
Oct. 23, 1961 filed 25,000 common; Pricer^$10/ Business
Co. Bids—Oct. 1 (11 a.m. EDST) at 80 Pine St., New
—A closed-end investment
York. Information Meeting—Sept. 26 (10 a.m. EDST) at.
company
which plans to

---To

vestment.

//////:;^

29, 1962 filed 2,000 common (with attached war¬
rants).
Pticer--$500. Business^—Company plans to; furpish equity capital to firms in tlie
atomic;, space > and
missile fields, and provide
advisory and management
counseling services on a fee basis.
Proceeds—For re¬
payment of loans, and general corporate
purposes. Offioe

Office—467 Hamilton Ave., Palo

Heck's, Inc. (9/23)
12, 1963 refiled 180,000 class A common. Price—:
$2 .50. Business—Operation of discount stores/ Proceeds

on

Ingram,

New 'York.
>'* ' '

St.,

Aug.

Fund,

—Mutual Fund

June

nia

1

50-Broad

Management Investment Corp.

Business

designing, the design of teaching machines

Inc.
April 10, 1963 filed 500,000 capital shares. Price — Net
asset value plus 8%%v Business—A new mutual
fund
seeking capital appreciation. Proceeds—For investment.

Underwriter-—Hemphill, Noyes & Co., New York.

management

For

#

Janus

Inc.,

^ower Bldg., Youngstown,

the production of teaching programs. Proceeds—
expansion, new facilities and working capital. Office•
—315 Central Park W., N. Y. Underwriter—R. F. Dowd
& Co.,, Inc., New York.
Offering — Indefinitely post¬
poned.-'/Z. "• ;/
,
i

r—

Street

Price^$5.75. Busi¬

common.

July 26, 1963 filed 200,000 common.
Price—$3. Business
—Company plans to engage in the exploration and de¬
velopment of Canadian mineral properties. Proceeds—

For

Hawtkorn-Mellody, Inc. (9/9-13)
Aug. 7, 1963 filed 497,500 common. Price—By amend¬
ment (max. $25). Business—Processing and distribution*
of milk, ice cream and other dairy foods in Chicago area. Proceeds
For the selling stockholders, Processing &
Books, Inc., parent. Office—4224 West Chicago Ave., Chi¬

Hill

.V:^

Mahoning Corp.

filed 60,000

and

to be offered for
basis of one new
share for about each 10 held of record Sept. 25. Price—
By amendment (max. $23). Proceeds — For expansion.
Office—1130 Alakea St., Honolulu. Underwriter—None.
20, 1963 filed 534,000 common
subscription by stockholders on the
Aug.

New York.

and
working /capital,: :Offiee—
Canyon Rd., Los Angeles, Underwriter

production of television films. Proceeds—For
filming and production and' working 'capital/ Office—
543 Madison
Ave., New York. Underwriter

—

ment

cago.

equipment

ness—The

Ltd.

July 29, 1963 filed 330,000 common. Price—By amend¬
(max. $13). Business—Wholesaling of phonograph
records, pharmaceuticals, beauty aids and sundries. Pro¬
ceeds—For selling stockholders. Office—670 East Wood-

1963

28,

$1.

—

of drive-in restaurants. Proceeds—

Inc.
Aug. 31, 1961 filed 125,000

ordinary shares. Price—$55.
Business
A real estate development company which
also owns citrus plantations. Proceeds—For general cor¬
porate purposes. Address—Tel-Aviv, Israel. Underwriter
—Rassco of Delawarie Inc., New York.

(9/11)

Hawaiian Telephone Co..

Price

common.

—

Building, Lincoln, Neb. Underwriter—None.
Co.

Mandeville

100.000

Lunar Films,

Hayward Ave., Baltimore. Underwriter—Inves¬
Planning Corp. of America, New York.

tors

purposes.

leases,

1601

lnc///z/:!:/'©:>r^S^'":;

Systems,

("Reg. A")

—Keon & Co., Los Angeles.

—4200

eral

corporate

1963

For

invest in Israeli firms. Proceeds—For investment. Office

of banking,

Handlemar

14,

Business—Operation

July 18, 1963 filed 500,000 common. Price—$12.50. Busi¬
ness—A closed-end investment company which plans to

Greater Nebraska Corp.

....

11, 1962 filed 250,000 capital shares. Price -- B
(max. $10). Business—A diversified closed

end investment
company.

1963 filed

Israel

'Jacksonville,://;//J

amendment

value plus 8V?.%, Business—A new

duPont Plaza

corporate purposes. Office—811
Center, Miami, Fla. Underwriter—None.
-

American

Israel

April 22,

25,

general

Fund, Inc.-

investment. Office—17 East 71st St., New York.
writer—Israel Securities Corp., (same address).

p:

1963, filed 136,094 common to be offered foi
subscription by stockholders on the basis of one share
lor each 4% shares held. Price—$5.50. Business—Acqui¬
sition and development of real estate. Proceeds — Foi
Feb.

;,;;/:/:•
*
•/',//:--■/
Price—$10. Business

July 29, 1963 filed 300,000 common.
—Fund plans to own stock of companies which will in¬
vest in securities of Israeli enterprises. Proceeds—For

Industrial Park, Inc.

Greater Miami

;

'

Proceeds—For investment and! eventual; ex
pansion. Office-—2960] Coral Way. Miami/ Underwriter

Pierce, Wulbern, Murphey, Inc.,
Logos Options, Ltd. .•;>

■;/;

/]

Israfund-lsrael

;

•

—

closed-end
—

First

management investment

general

For

National

Bank

Underwriter—None.

corporate

purposes.

Bldg;^ Minneapolis.

•

Co., Ltd. '
^
filed 10,000,000 common (represented by
500,000 A. D. S.) being offered for subscription by stock¬
Mitsui

July

9,

holders
of

&

1963

on

record

the basis of

one

new

share for each two held

Rights will expire Sept. 12. Price—
$2.78 per A. D. S. Business—Domestic and foreign trading
in a broad range of goods and commodities. Proceeds
—For

July 20.

expansion

ments."

of trading activities, and new invest¬
Address—Tokyo, Japan. Underwriter—None.

and

•

Life

Aug.

Insurance Co.

16,

1963

of

filed 400,000

Florida

(9/23-27)

Price—By amend¬
ment (max. $6). Business —
Writing of industrial life,
accident and health insurance as well as
ordinary life
common.

Mobile Home Parks Development Corp. <

*

Jan. 28,

1963 filed 1,250,000 common. Price—$2.50. Busi¬
ness—Company plans to develop mobile home parks and
residential

general
lanta.

and

commercial

corporate

purposes.

real

Underwriter—Overseas

ville, Spain.

estate.

Office—82

Proceeds—For

Baker St.,
Investment Service,
7
'-v'

At¬
Se¬

.

T

•

Monarch

Number 6296

198

Volume

Marking System Co.

.

.

Brothers-Riter & Co. (jointly). Bids—Sept. 18
CDST) at 111 W. Monroe St., Chicago. Informa¬
tion Meeting—Sept. 12 (2:30 p.m. EDST) at 57 Broad¬
way, New York.
"
*
'

(10

Business-^Maoufacture and distribution of price-mark- /
ing tickets, tags and labels, and machines tor imprint¬
ing and affixing such tickets. Proceeds—For a new plani
and moving expenses. Office — 216 South Torrence St.,

•

Morton

(B. C.)

Nuclear Science &

Engineering Corp.
Price—By amend¬
ment (max. $15). Business—Research and development
on contracts using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬

Co., Cleveland.

June 21,

1963 filed 1,000,000 shares of beneficial inter¬
est. Price—$10. Business—A real estate investment trust.
Proceeds—/For investment. Office—141 Milk St., Boston.
Underwriter—B. C. Morton Funds Underwriters Co.,
Inc.

withdrawn.
•

debt

repayment, store

—John

•

registration will be

National

Inc.

Busi¬

fence
related
products. Proceeds—For construction of a plant in Ire¬
land, and working capital. Office—4301. 46th St., Bladensburg, Md. Underwriter—Netherlands Securities Co.,

•

reinforcing

welded. concrete

Inc., New York.

fabric,

filed 4,750,000 common. Price

$1. Busi¬

—

—.Company plans to engage in cemetery develop¬
ment and to establish and operate a life and disability
insurance concern. Proceeds—For general corporate pur¬
Office—713. S. Broadway, Red Lodgej Mont.
derwriter—Security. Brokerage Co., Billings, Mont.

Un¬

poses.

National

Mortgage Corp., Inc.

.

•/

<

address).

s\t

Producing Co.

185 Franklin

New

Corp.
March 26, 1963 filed 312.465 common being offered for
subscription by stockholders on the basis of one new
share for each 1V2 held of record July 31. Rights will
expire Sept. 7. Price—$2. Business—Writing of general
insurance.
Farwell

Proceeds—For

Ave.,

expansion. Office—1840
Milwaukee. Underwriter—None.

Northern States Power Co.

(Minn.)

(9/18)

July 26, 1963 filed $15,000,000 of first mortgage bonds
1993.- Proceeds—For

ment/Office—15

construction

and

loan

repay¬

S. Fifth

St., Minneapolis. Underwriters
—(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston Corp.-Blyth & Co. (jointly); Men-ill

1,250

class

A

shares

to

construction.

luxury

a

land

of

Office—3615
Warren

L.

hotel

and

for home

Olive

Co..

St.

resort

sites.

do

war¬

will

facilities,

Proceeds—For

St., St. Louis.

Under¬

Louis.

Retirement Foundation, Inc.
April 8, 1963 filed 190,000 memberships in the Founda¬
tion./ Price—$10 per membership. Business — Company
will operate retirement centers for the use of rent-free
private Jiomes and apartments by members upon their

retirement.

Proceeds—For

working capital, construction
Office—235 Lockerman
St., Dover, Del. Underwriter—John D. Ferguson, Dover,
Del. Offering—Indefinite.
and

other

corporate

purposes.

Rogers Brothers Co.

(9/25)

Aug. 7, 1963 filed 105,458 common,
be sold by company and 35,458 by a

of which 70,000 will
stockholder. Price—
Business — Processing of

By amendment (max. $18).
potatoes, and the raising of high

grade pea, bean and
Proceeds—For working capital. Ad¬
2188, Idaho Falls, Idaho. Underwriter—
Dean Witter & Co., Los Angeles.
*
sweet

seeds.

corn

dress—P. O. Box
•

Gold

Satawa

••

Mines

Ltd.

Aug. 9,; 1963 filed 1,000,000 common. Price—By amend¬
ment (max. 30 cents). Business—Gold prospecting. Pro¬
ceeds—For

mining

debt

expenses.

repayment, construction of a mill and
Address—Port Arthur, Ontario, Canada.

Underwriter—None.
Selective
Feb<

28,

Financial

1962

filed

Corp.

/

;/

500,000

common, of which 405,000
subscription by holders of the A*
B and C stock of Selective Life Insurance
Co., an affili¬
ate, on the basis of 4 company shares for each class A or

B

offered

be

to

are

share and

for

two-thirds

in

gage

Potomac

(9/9)
to

be

basis

offered
of

one

for
new

Office—4301;

investment trust.
Bonifant

Proceeds—For investment. Office—880

St., Silver Spring, Md. Underwriter—None.

Powell Petroleum, Inc.
Sept. 28, 1962 filed 100,000 common. Price—$5. Proceeds
—to drill for and operate oil wells.
Office—418 Mar¬
ket St., Shreveport, La. Underwriter—None.
v

held.

share

each

for

C share of

class

Remaining 94,822 and

finance,

consumer

related

businesses.

Oct!

19,

N.

Research

Princeton

28,

1963 filed

Lands,

40,000

Business

Bust-

St.,

chiefly un¬
Proceeds—For debt repayment, and ac¬

additional

of

Princeton, N. J.

Provident

Stock

properties.

Office—195

Nassau

Underwriter—None.

Fund,

April 11, 1963 filed 1,000,000

real

estate

and

working

—

writer— McDonald

—

Price—Net asset

Provident Management Co.

sheet music. Proceeds—For construction of

Corp.-Eastman Dillon, Union Securities & Co. (jointly);

Tennessee

ing

capital,

and

other

corporate

offices, work¬
Office—801
Underwriter—

purposes.

Ave., South Nashville, Tenn.
Securities Inc., Nashville.

Under¬

Cleveland, Ohio.

Cleveland.

Offering

—

In¬

:/;V;.'

-

v;

Squire For Men, Inc.
July 9. 1963 ("Reg. A") $135,000 of 8% convertible de¬
bentures due 1969. Price
At par
($100). Business —
Manufacture and isale of custom hair pieces. Proceeds—
For new products and working capital. Office—328 S.
—

Beverly Dr., Beverly Hills, Calif. Underwriter—Samuel
Co., Los Angeles.

..Stein Roe & Farnham Foreign Fund,

Inc.

July 1, 1963 filed 1,000,000 capital shares, Price—Net as¬
set value. Business—Company was recently formed and
will succeed to New York Capital Fund, Ltd., a Canadian

corporation. It will provide investors a
vesting in Canada, Western Europe and
areas.

Proceeds—For investment.

of in¬
other foreign

means

Office—135 S. LaSalle

St., Chicago. Underwriter—None.
Subscription Television, Inc.
Aug. 22, 1963 filed 1,900,000 common. Price—$12. Busi¬
ness—Company plans to establish and operate a sub¬

scription television system in the Los Angeles and San
Francisco
metropolitan areas. Proceeds—To complete
developmental work, and establish the initial system.
Address—Room 2600, One Wall St., New York. Under¬
writer—William

in

—Expected
Summit

R.

Staats

&

Co., Los Angeles. Offering

early October.

National

Holding Co.

(9/16-20)

Aug. 9, 1963 filed 150,000 common. Price—$12. Business

stock of
Feb¬
ruary 1963 in Ohio as a legal reserve life insurance com¬
pany. Proceeds — For investment in above stock, and
working capital. Office—2003 West Market St., Akron, O.
Underwriter—Fulton, Reid & Co., Inc., Cleveland.
—Company

plans

buy

to

Summit National Life

Feb.

1,

all

the

outstanding

Insurance Co., organized in

Mortgage Investment Trust

1963 filed

30,000

./Price—$100. Business
Proceeds—For

—

shares

of

beneficial interest.

A real estate investment trust.

investment/ Office—4900

Wilshire

Blvd.,

Los Angeles. Underwriter—None.

Company develops and sells
teaching machines ex¬
clusively for Grolier Inc. Proceeds—For loan repayment
other

and
N.

E.

New

•
Recording Industries Corp. (9/24) /
July 19, 1963 filed 297,000 common. Price—$5. Business
—Company plans to engage in the recording and man¬
ufacture of phonograph records, and the publishing of

Sixteenth

Co.,

Teaching Machines, Inc. (9/23-27)
April 1, 1963 filed 150,000 common. Price—$5 Business—

value plus SVz%. Business—A new mutual fund. Pro¬
ceeds—For investment. Office—316 North Fifth St., Bis¬

marck, N. D. Underwriter
(same address).

&

trust.

Office

capital.

•

Inc.
common.

Phoe¬

investment

A

investment

Union Commerce Bldg.,

Sutro

Price—$25.

ness—Purchase and sale of real property,
improved land.

Ave.,

Properties

Proceeds—For

Inc.

common.

fi¬
general'

general
For

1962 filed 215,000 shares of beneficial interest.

Price—$15.

•

Corp.
1963, filed 200,000 capital shares. Price—$4.75.
Business—Company plans to manufacture a new type of
brake unit for heavy duty automotive vehicles. Proceeds
—For equipment, and working capital.
Office — 2604
Leith St., Flint, Mich. Underwriter—Farrell Securities
Co., New York.
28,

March

—

Central

unsub-

any

mortgage,

Proceeds

corporate purposes/Office—830
nix
Underwriter—None

Power Cam

Jan.

•;

the

and

nance

Real Estate Investment Trust

July 6, 1962. filed 1,000,000 shares of beneficial interest.
Price—By amendment (max. $5). Business—A real estate

;

Life

B. Franklin &

South Carolina. Proceeds—For construction.

Lynch, Pierce, Fenner & Smith Inc.-Kidder, Peabody
& Co.-White, Weld & Co. (jointly); Equitable Securities




Gas

Manila, The

Yancey Rd., Charlotte, N. C. Underwriter—White, Weld
& Co., Inc., New York.

quisition

Northern States Life Insurance

Natural

—

-

—

—

Blvd., Los Angeles. Underwriter—Gregory-Massari, Inc., Los Angeles.

in

share for each 10 held. Price
By amendment (max.
$18). Business—Distribution of natural gas in North and

}

—5455 Wilshire

due

gas

Co., Inc.
Aug. 19, 1963 filed 139,940 common
subscription by stockholders on the

Blvd., Los
Angeles/ Underwriter — New World Distributing Co.
(same address).
"■-■■■■•

North

new share for each two held.
Price—By
(max. 1 cent). Business—Exploration for oil
the Philippines. Proceeds—For debt repay¬

Piedmont

ceeds—For investment. Office—4680 Wilshire

/

Busi¬
on its

one

and operating expenses. Address
Philippines. Underwriter—None.
t

Fund, Inc. -C/.:
Feb. 21, 1963, filed 250,000 common. Price—Net asset
value plus 8^2%. Business—A new mutual fund. Pro¬

Corp. Ltd.

acres

Shaker

ment,

St., Boston.

1963 filed 60,085 capital shares. Price
By
amendment
(max. $3.25). Business—Acquisition of oil
and gas properties, and the production of crude oil and
natural gas/Proceeds—For selling stockholders. Office

—

definite.

and

World

Nordon

purchase

consisting of four shares and one
$32 per unit.
Business — Company

operate

sell 80

—1956

amendment

July 29,

and

erect

and

to

units

Price

rant.

Mines, Inc.

the basis of

(10/1-4)

parent, A. T. & T., and for other
—

in

Philippine Oil Development Co., Inc.
June 11, 1963 filed 325,000,000 capital shares to be of¬
fered for subscription by U. S._ resident stockholders on

Underwriter—None.

life

PMA Insurance Fund Inc.

property. Proceeds—For mining operations, debt repay¬
and operating expenses. Office—1218 N. Central
Ave., Phoenix. Underwriter—None.

share for each 12 held of record Aug. 27. Rights
Sept. 23.
Price — $45.
Proceeds — To

advances from

warrants

year

offered

jcribed shares will be offered publicly. Price—To public*
$6; to stockholders, $5. Business—Company plans to en~

expire

corporate purposes. Office

Corp. of Missouri (9/16)
Nov. 27, 1962 filed 125,000 class A common and three-

ment

New England Telephone & Telegraph Co.
Aug. 1, 1963 filed 2,099,857 capital shares being offered
for subscription by common stockholders on the basis of

repay

-

—

Campbell Island Mines Ltd.
Oct. 13, 1961 filed 475,000 common, of which 400,000 are
to be offered by the company, and 75,000 by a stock- 1
holder. Price—50 cents. Business—Exploration, develop¬
ment and mining, Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. McPherson & Co., Toronto.
v

new

*

Price—$1. Business
Proceeds—For equipment and working capi¬
Address—Creede, Colo. Underwriter—None.
1

Pacific

New

one

"

-

July 24' 1963 filed 100,000 common. Price—$1.50
ness
Company plans to explore iron deposits

Sept. 7, 1962 filed 180,000 class A common. Price—$5.
Business—^Production of natural gas and oil. Proceeds
—For drilling expenses, working capital and other cor¬
porate purposes.
Office—Tekoil Bldg., Oklahoma City
Underwriter—Peter Morgan & Co., N. Y.

will

■

—

share>held;. Price—$12/ Business—/Writing of fire,
marine, casualty and property insurance. Proceeds—For
general corporate purposes. Office—1511 K St., N. W.,
Washington, D. C. Underwriters—Ferris & Co., Wash¬
ington, D. C., and Reynolds & Co., Inc., New York.
Oil

St., Chicago.

April 8, 1963 filed 200,000 common. Price — Net asset
value plus 4%. Business—A new mutual fund specializ¬
ing in insurance stocks. Proceeds—For investment. Ad¬
dress
Plankington Bldg., Milwaukee. Underwriter-

each

&

Co., Beverly Hills, Calif. Offering—Indefinite.

Resort

Selective

/:

proceeds-— For- general corporate pur¬

Aug. 12, 1963 filed 64,000 common to be offered for sub¬
scription by stockholders on the basis of 1.78 shares for

Gas

capital investment, and working capital. Office—
West 7th St., Los Angeles. Underwriter—Costello,

tal.

National Union Insurance Co. of Washington

Natural

For
411

Russotto &

—Mining.

113 S. Hydraulic, Wichita, Kan. Under¬
writers-National Mortgage Agency, Inc., (same address). /
Note—This offering will be made only in the State of
Kansas.
■/':/'■..// /

•

Salle

Outlet Mining Co., Inc.
Feb; 28, 1962 filed 900,000 common.

:

Office

poses.

La

Proceeds—For investment. Office—1802 N. Central Ave.,
Underwriter — O'Maliey Securities Co. (same

1962 refiled $8,000,000 face amount certificates

company,

So.

Phoenix.

(series 20) and 300,000 common shares. Price—For cer¬
tificates, $762; for stock, $1.15.. Business—A mortgage
loan

135

Investing Corp. !
Aug. 9, 1963 ,filed 300,000 common. Price—$10. Business
.—Aureal estate investment and development company.

ness

Dec. 28,

Co.,

O'Maliey

National Memorial Estates

Oct. 11 j-1962

&

other alcoholic beverages. Proceeds—For
working
capital, loan repayment, sales promotion and equipment.
Office—1035 N. W. 21st Terrace, Miami. Underwriters—
Pierce, Wulbern, Murphey Inc., Jacksonville, and Con¬
solidated Securities Corp., Pompano Beach, Fla.
*

1

*

Nuveen

Office—Chicago,' 111. Sponsor

and

and

gates

interest-bearing obliga¬

Old Florida Rum Co. (10/14-18)
July 29, 1963 filed 338,755 common, and warrants to
purchase an additional 338,755 common, to be offered
for subscription by common stockholders in units of one
share and one warrant, on the basis of one unit for
each two shares held. Price—By amendment
(max. $4).
Business—Company is engaged in the production of rum

(9/16-20)
Nov. 29, 1962 iiied 100,000 common. Price—$8.75.
ness
—
Manufacture of galvanized chain link

26, 1962 ("Keg. A / 7o,ouu common. Price — $2L
Business—Sale of travel and entertainment. Proceeds—

•

withdrawn.

Manufacturing Co.,

Fence

in

Note—This statement has become effective.

ex¬

Underwriter—Cortlandt

This

invest

Proceeds—For investment.

working capital. Address — Portage, Pa
Investing Corp., N. Y. Note—

and

Fund will

tions of states, counties, and municipalities of the U.
S.,
believed to be exempted from Federal income taxes.

& Plastics Corp.
Sept. 28, 1961 tiled 105,000 common. Price—$5. Business
—Operation of a cleaning and pressing plant and affili¬
Proceeds—For

Tax-Exempt Bond Fund. Series 5
(9/9)/
.

ness—The

National Equipment

Industries, Inc.

Nov.

writer—R.

.

New York. Offering—Indefinite.

Recreation

27

Nuveen

Aug. 2, 1963 filed $15,000,000 of units representing frac¬
tional interests in the fund. Price—By amendment. Busi¬

municipalities and territories of the U. S. Proceeds—For
investment/Sponsor — Ira Haupt & Co., Ill Broadway,

pansion

Proceeds—For

equipment, debt repay¬
ment, expansion and working capital.
Address—P. O.
Box 10901, Pittsburgh. Underwriter—Johnston, Lemon &
Co., Washington, D. C. Note—This registration will be

(same address)

stores/

services.

ment

Municipal Investment Trust Fund, Series B
April 28, 1961 filed $15,000,000 (15,000 units) of interests.
Price—To be supplied by amendment.
Business—The
fund will invest in tax-exempt bonds of states, counties

ated

a.m.

March 29, 1962 filed 100,000 common.

(9/23-27)

Realty Trust

(943)

Lehman

(9/23-27)

Aug. 14, 1963 filed $2,500,000 of convertible subordinated
debentures due Sept. 1, 1983. Price — By amendment.;

Dayton,: O, Underwriter—McDonald &

Financial Chronicle

i The Commercial and

corporate

Albuquerque.

purposes. Office—221
San Pedro,
Underwriter—S. D. Fuller & Co.,

York.

Tecumseh Investment

Co.j Inc.

Jan. 21, 1963 filed 48,500 common.
—A

Price—$100. Businew

which plans to organize a life in¬
company. Proceeds—For investment
in U. S.
Government Bonds and in new subsidiary. Office—801

holding

company

surance

Lafayette Life Bldg., Lafayette, Ind. Underwriter—Amosand

Inc.

(same address).
Continued

011

page

28

•

28

The Commercial and Financial Chronicle

(944)

17, 1963 ("Reg. A") 245,000 common. - Price — $1
Business—Company plans to erect a mill to produce cer¬

Jan.
•

(9/11)

Tektronix, Inc.

V-V-':./

Aug. 9, 1963 filed 540,000 common, of which 100,000 are
to be offered by company and 440,000 by stockholders.
Price
By amendment (max. $25). Business—Manufac¬
ture of nrecision cathode ray oscilloscopes. Proceeds—
4"or working capital and other corporate purposes. Un¬
derwriter—Lehman Brothers, New York.
Texas Plastics,

working

capital.

Underwriter—To be named. Of¬

Texas.

fering—Indefinite.
Top Dollar Stores,

Inc.

May 1, 1962 tiled 200,uup common, of which 100,000 are
be offered by company and 100,000 by stockholders

to

Price—$6. Business—Operation of a chain of self-servretail stores selling clothing, housewares, etc.
Pro¬
ceeds—For expansion, equipment and working capital
Office—2220 Florida Ave., Jasper, Ala./ Underwriter-

Van Alstyne, Noel & Co., New York. Offering—Tem¬
porarily postponed.
->v* Transarizona Resources, Inc.

May 28, 1962 filed 500,000 capital shares. Price—$1.50.
Business—Exploration, development and production of
the Lake Shore copper deposit near Casa Grande, Ariz.
Proceeds—For equipment, exploration and working cap¬
ital. Office—201 E. 4th St., Casa Grande, Ariz. Underwriter—None.

Transpacific Group, Inc.
July 26 1963 filed 155,000 common. Price—By amend¬
ment (max. $15). Business—An insurance holding com-1

Proceeds—For expansion. Office—520 S. W.

6th

Ave., Portland, Ore. Underwriter—None.
?!
Trans World Life Insurance Co.
July 31, 1963 filed 465,000 common. Price—By amend¬
ment (max. $5). Business—Company plans to sell general
llife and disability insurance policies. Proceeds—To in¬
crease capital and surplus.
Office—609 Sutter St., San
^Francisco. Underwriter—Alex. Brown & Sons, Baltimore.
:: United Investors Corp. (Minn.)

50-Winter

A- Rasscc Plantations Ltd.
27, 1963 filed 400,000 ordinary shares.

Aug.

amendment

i U.

S. Controls,

pending this issue.

rael.

Address—Suite

.

International, Inc.

March

$4,000,000 of 6 V\ %

filed

1963

29,

subordinated

400,000 common. Price—For
debentures, at par; for stock $3.50. Business—Company
will take over and operate Western Union Telegraph's
international telegraph operations. Proceeds—For sell¬
ing stockholder, Western Union Telegraph Co., parent.
Office—60 Hudson St., New York. Underwriters—Ameri¬
can
Securities Corp., and Glore, Forgan & Co., New r
due

debentures

1983,

and

Offering—Indefinite.

York.

William Penn Racing

Association

I

.

mon

rAug. 8, 1963 filed $210,000 of 63A% debentures due 1973
and warrants to purchase 31,500 shares to be offered for

public sale in units of one $100 debentures and 15 war¬
rants. Price—$100 per unit. Business—Development and
manufacture of heating equipment and automatic control
systems. Proceeds—For inventory, sales promotion, note

prepayment and working capital. Office — 410 Fourth
-Ave., Brooklyn, N. Y. Underwriter—M. H. Meverson &
Co., Inc., New York. Offering—Expected in November.

and

a

1'

;l

A* Wisconsin

Public Service Corp.
(10/3)
27, 1963 filed $15,000,000 of first mortgage

Aug.
due

Oct.

for refunding of outstanding 5 V4%
first mort¬
bonds due Nov. .1, 1989, or for construction. Office

gage

North Marshall St., Milwaukee. Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.

—1029

The

following registration statements

Our

that

we

can

prepare

Would

at

an

item

hereunder.

write

details, where available, will be carried in the

telephone

you

us

REctor

2-9570

at 25 Park Place, New York 7, N.

us

or

Y.

Monday issue of' the "Chronicle."

Prospective Offerings

Allied Chemical Corp.

New

12, 1963 it was reported that this road plans to
sell $20,000,000 of first mortgage bonds due
1988 in
September. Proceeds—To refund $8,100,000 of bonds ma¬
turing June 1, 1964, and for working capital. Office—

Aug.

York.

.

Devices,

offered

at

Co., New York.

$3.20

per

share'

the basis of

Aug.

one

new

42nd

E.

tive).

by Charles

..."

.

St., New York. Underwriters — (Competi¬
bidders: First Boston Corp.; Halsey,
Stuart & Co. Inc.;
Morgan Stanley & Co.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Salo¬
mon Brothers & Hutzler-Blyth & Co.-Lehman BrothersMerrill Lynch, Pierce, Fenner & Smith. Inc. (jointly).
Bids—Expected Sept. 17 (12 noon EDST), at above ad¬

220

Inc.

New England Telephone & Telegraph Co.
v.
2,099,857 Capital shaires being offered at $45 per share
on

(9/17)

Atlantic Coast Line RR.

237,512 common offered at $51 per share by Smith,
Barney & Co., Inc., and Carl M. Loeb, Rhoades & Co.,

share for each 12 held of record

Probable

dress.

27. Rights will expire Sept. 23.; No underwriting.

•"

.

Bethlehem

Steel

Co.

:

.

(/;('( (•"'/
.

>y.(V.-&:|/(//v

(• ',

Feb., 26,-1963,/Arthur B. Hpmer, Chairman, announced ...
that the company will embark on a $750*000,000 cajpttal; ; j
^

A,

T

materials reinforced by
repayment, and working

.

so

planning to register?
would like

Department

News

similar to those you'll find

*

^

y ?•

"'

f

•

T'

'

-r

<

*"

'

''

"

#'/l

Va.

•

,

>

•

_

improvements program to - be completed: by 1965.
He said that approximately two-thirds, of the financing fpr ;
* .
;
the.program..will bevgenerated internally and the;bal- * ...V i
ance
secured externally..
Mr. Homer added thai.thia/ ; /.(.*;
would not be required until at least 1964. Office — 25 V /
. t,
Broadway, New York. Underwriters—To be named. The.
last public sale bf securities iriVMay*
195^^yas hanm^,/;./(^
by. Kuhn, Loeb & Co., "and Smith, Barney & Co.j New

t2m

,

capital. Address — Commonwealth Ave., Bristol,
-,Underwriter—None..,'
(j/.,,/■;(/.'

Corporation

to know about it

de¬

were

j Universal Moulded Fiber Glass Corp.

or related
fiber glass. Proceeds—For loan

bonds

1, 1993. Proceeds '— To repay bank loans and

either

Effective Registrations

Aug. 23, 1963 filed 738,408 common to be offered for
subscription by stockholders on the basis of three new
shares for each four held of record Sept. 19. Price—By
amendment (max. $2.50). Business — Production and

/molding of plastics

Real, Palo Alto, Calif. Underwriter—

Do you have an issue you're

common

7't United Variable Annuities Fund, Inc.
'Auril 11, 1961 filed 2,500,000 shares of stock. Price—$10
per share. Business—A new mutual fund. Proceeds—For
Investment. Office—20 W. 9th Street, Kansas City, Mo;
Underwriter—Waddell &• Reed
Inc.. Kansas City, Mo

operation

ATTENTION UNDERWRITERS!

Plohn &

(

and

order temporar¬

an

225,000

—

development,

small loan company. Proceeds—For debt repayment,

ily suspending this letter.

Construction

(same address).

Price—$23.

common.

Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; East¬
man Dillon, Union Securities & Co.-Salomon Brothers &
Hutzler (jointly); First Boston Corp.; White, Weld &
Co.; Kidder, Peabody & Co. Bids—Oct. 3 (10 a.m. CDS'T)
at 231 South LaSalle St., Chicago. Information Meeting
—Sept. 26 (10:30 a.m. CDST), same address.

Service, Inc. Billings,

Global

Indianapolis. Distributor

'

13,043

realty acquisition, expansion and working capital. Office

•

Proceeds—For investment. Address—207

Guaranty Bldg.,
Unified Underwriters, Inc.,

Un¬

None.

Wyomont Petroleum Co.
May 10, 1963 ("Reg. A") 120,000 common. Price—$2.50.
Business—Production and sale of petroleum products.
Proceeds—For debt repayment, construction and work¬
ing capital. Address—P. O. Box 670, Thermopolis, Wyo.

Aug. 22, 1963 filed 750,000 capital shares. Price — Net
asset value plus 8Y2%. Business—A new mutual fund.

!

Inc.

Bay-to-Bay, Tampa.

r

estate

—2390 El Camino

Enzyme Corp. of America
120,000 common offered at $2 per share by Bristol Se¬
curities Inc., New York;

Unified Mutual Shares,

Office—2909

A")

of

Electronics, Inc.
Dec. 28, 1961 filed; 125,000 common. Price—$4. Business'
—Design and manufacture of ( precision electrical and
electronic measuring-devices and test equipment. Pro- /
ceeds — For debt repayment and other corporate-pur¬
poses. Office—1005 First Ave., Asbury Park; N. J. Under¬

Underwriter—Northwest Investors

investment.

ir Sutter Hill Co.
21, 1963 ("Reg.

Wins low

Montana. Note—The SEC has issued

Corp.,

A' Research Capital Corp.
Sept. 3, 1963 filed 400,000 common. Price—$12.50, Busi¬
ness—A small business investment company. Proceeds—

Aug;

working capital. Office—3 Penh Center Plaza, Philadel¬
phia. Underwriter—Stroud & Co., Inc., Philadelphia.
Offering—Indefinite./
"
'<

„

Dallas, Texas. Underwriters—First Boston
York, and Sanders & Co., Dallas.

way,

New

Business—Real

unit. Business—Company

has been licensed to conduct harness. racing with parimutual betting. Proceeds — For debt repayment and

writer—To be named.',

—

derwriter—Hensberry & Co., St. Petersburg, Fla.

shares to be offered in units of one $100 debenture

and 10 shares. Price—$220 per

Business

Underwriter—Rassco of Delaware, Inc., New York.

For

filed $1,000,000 of 6Vz% sinking fund de¬
bentures due 1978 and 100,000 class A non-voting com¬
March 8, 1963

(max. $3,166).

A Republic National Life Insurance Co., (10/7-11)
Aug. 30, 1963 filed 200,000 capital shares. Price—By
amendment (max. $80). Business—Writing of life, acci¬
dent, medical
and pension
insurance. -Proceeds—For:
selling stockholders. Office—3988 N. Central Express¬

clared effective this week by the SEC. Offering

Inc.

Price—By

Company culti¬
vates, processes and markets citrus fruits in Israel. Pro¬
ceeds—For selling stockholder. Address—Tel-Aviv, Is¬

A holding company for United Investors Fund Corp. (a
broker-dealer which sells mutual funds) and United

Bank Bldg., Minneapolis. Underwriter—None.

Garden, Fla. Underwriter—Prudential Invest¬

ment Corp., Miami.

July 29, 1963 filed $500,000 of 6% convertible debentures
due 1973 to be offered for subscription by stockholders
on
an i unlimited
basis.
Price — At par.
Business—

Capital Life Insurance Co. of Minnesota. Proceeds—To
increase capital and surplus of United Capital Life
Insurance Co. of Minnesota. Address—1300 First National

Thursday, September 5, 1963

.

412-413 Hynds Bldg., Cheyenne,
Wyo. Underwrite*—C. B. Hoke Agency, Cheyenne, Wyo.
Note—The SEC has issued an order temporarily sus¬

(,tee

pany.

iron by the new "Taylor Process."- Proceeds
construction and general corporate pur¬

Western Union

Proceeds—For

products.

Address—Elsa,

plant

poses.

Inc.

July 27, 1962 tiled 313,108 common. Price—$3.50. Busi¬
ness—Operation of a plant producing plastic film and

packaging

tain types of
—For

.

ing capital and debt repayment. Address—West Highway

Western Steel, Inc.

Continued from page 27

.

"A-

.

,

1

Urethane of Texas,

Inc.

York.

Feb. 14,1962 filed 250,000 class A and 250,000 common to
be offered in units of one share of each class. Price—

V

$5.05

.

per

foams.

unit.

.Business—Manufacture

Proceeds—For

equipment,

-

of

working

urethanc

capital

leasehold expenses and other corporate purposes. Office
—2300-Republic National Bank Bldg., Dallas. /Under¬
writer
?

—

First Nebraska Securities

jf

—A

new

mutual

fund.

common.

Price—$1. Business

Proceeds—For

investment.

/dress—Sidney, Montana. Underwriter—To

Ad-

be named.

Warwick Fund
June
•*

*

17, 1963 filed 300,000 units of participation in the
Fund to be offered in exchange for certain acceptable
securities

on

the basis of

posited. securities.
mutual

.

*

.

one

Business

Office

—

3001

unit for each $100 of de¬
A new exchange type

Philadelphia Pike, Claymont, Del.

Distributor—Wellington Co., Inc., Philadelphia.
Waterman

Steamship Corp.
Aug. 29, 1961 filed 1,743,000 common. Price—By amendment.
Business—The carrying of liner-type cargoes.
Proceeds—For the purchase of
vessels, and working cap¬
ital.
Office—71 Saint Joseph St.,
Mobile, Ala. Under¬
writer—Shields & Co., Inc., N. Y. Note—This registra¬
♦-

tion will be withdrawn.




:

I

V

(1

-

Busiifess^Ci^c 'develbpmeht^ of Albany; /Ore.

Pro-.

ceeds—^^FdF aCquisitiqri'

arid^development of real property,
building construction.; Office—435 W.; First Ave.,
Albany, Ore. Underwriter—None.
• '('V^'
:';:V
and

ir American-Israel World's Fair Corp. (10/7-11)
Aug. 26^ 1903 filiedf $500,000 pf 6subordinate^ partici-'
pating debentures due Dec; 31, <1966. Price-^At; par, Busi¬
ness

Company will/operate

—

a

pavilion

at

the

New

York World's Fair for the purposes

of depicting the his¬
tory and culture of the Jewish people, and promote and
sell arts, products and services of Israel. Proceeds—For
construction and later demolition of the
building, and working capital. Office—3 East 54th St.,
New York. Underwriter—H. S\ Caplin & Co., New York.
landscaping,

—

fund

which plans to continue
indefinitely to
exchange its units for additional contributions of securities, and to seek long term growth of capital and in¬
come.

$10.

•

19,(1963 (/'Reg. A") '25,000 capital shares/Price—

Corp., Lincoln, Neb

Offering—Temporarily postponed.

Valley Investors, Inc.
Jan. 23, 1963,-filed 328,858

★ Albany Development Corp.:; ; :
Aug.

^ Dow Chemical Co. (9/19)
Sept. 4, 1963 filed $100,000,000 of debentures due Sept;
15, 1988. Price — By amendment. Business — Manufac¬

' ■/

ir Brockton Edison Co. (10/29) •/. •
Sept. 3,, 1963;>4t^was. reported that the;
to sell

$5,000,000 x>f .bonds at competitive bidding.: Pro-;..s
For refunding purposes. Office —( 36 Main
Brockton,^. Mass. Underwriters—- (Competitive >/Prc^ble
Z/) (
bidders: Halsey, Stuart & Co. Inc.; Stone & Webster Becurities Corp.;. Kuhn, Loeb & Co.-Salomon Brothers &.
•
Hutzler-Wood, S'truthers ;& Co. (jointly); Kidder, Pea- ;.
(
body & Co.-White,Weld & Co.-Shields & Co. (jointly);: :
;
Eastman Dillon, Union Securities & Co. Bids—Expected
...

ceeds

.

Oct. 29.

Sept.
to

3,

.

-

j;--.

5 !-V..

!:

1963,

it

was

Co.

(10/29) /.*•

reported that the company plans
of preferred stock ($100 par) at

/

60,000 shares
~:
competitive biddings Proceeds—To refund a like amount t y./• .
of 5.48% and 5.6%.preferred stock. Office—36 Main St.; ;
Brockton, Mass. Underwriters—(Competitive). Probable
bidders:: Kuhn, Loeb & Co.-Salomon Brothers & HutzierWood, Struthers & Co.

icals, plastics and metals. Proceeds—For loan repayment.
Address—Midland, Mich. Underwriter—Smith, Barney &
Co., Inc., New York.
:
<
Hull, Inc.
Aug. 21, 1963 ("Reg. A") 133,333 common. Price—$2.25.
Business—Fruit growing, publishing of a farm news¬
paper, citrus fruit brokerage and operation of a retail
store. Proceeds—For expansion of the newspaper, work-

(:''(;/•;//'(;(/

sell

curities

Frazure,

..

Brockton Edison

Oct. 29.

a

,

—

diversified line of organic and inorganic chem¬

ture of

/

r

company4^pIaris|/V;;// /

(jointly); Stone & Webster Se-

;

Corp.; Kidder, Peabody & Co. Bids—Expected
;

'/.. '.((;

;-;(-

Canon Camera Co.
June

26, 1963

it

was

reported that the company plans

$5,000,000 of convertible bonds in the U. S. Busi¬
—
Manufacture of cameras and other photographic

to sell
ness

equipment. Proceeds—For expansion. Address—Tokyo,
Japan. Underwriter — Yamaichi Securities Co. of New
York, Inc.
O.'i-

N
•

.fc

::

i- j,c .v'

_

<-

* *
-

—

•-

198

Volume

Number 6296

-

.

.

The Commercial and Financial

.

Proceeds—For loan repayment. Office—101

basis.

Industries, Inc.
Aug. 28, 1963 it was reported that the company plans
to file a registration statement shortly covering $1,700,000 of sinking fund convertible debentures due 1978.
Proceeds
For loan repayment, and working capital.
Address
Chicago, 111. Underwriter — Walston & Co.,
Capitol Food

South,

St.,

Petersburg,

St.

named. The last rights

Fla.

offering in May 1959 was under¬

Kidder, Peabody & Co., and Merrill
Pierce, Fenner & Smith, Inc., New York

Lynch,

—

General Aniline & Film Corp.

Chicago.

(Brooklyn, N. Y.)
Aug. 23, 1963 stockholders approved a 2-for-l stock
split and the offering of 71,313 additional shares (par'
$2.50) to stockholders on the basis of one new share for
each 2% shares held of record Aug. 23. Rights will ex¬
Centra] State Bank

12. Price—$18. Proceeds—To increase capital
Court St., Brooklyn, N. Y. Underwriter

pire Sept.

Hammill & Co., New York.

r'

/

,

»

.•»*,.►

„

.

-

.

•

Probable bidders: Salomon Brothers" &
Stuart & Co. Inc.
Bids—Expected
CDST) at above address.

(Competitive),

Halsey,

October 1

(12 noon
Gas

Columbia

System, Inc.

Morgan Stanley &

ders:

Co.-First Boston Corp.; (joint¬
Fenner & Smith Inc.-White,

ly); Merrill Lynch, Pierce,

(jointly); Halsey, Stuart & Co. Inc.; Blyth
Co.-Lehman Brothers-Salomon Brothers & Hutzler.

Weld
&

&

Co.

Communications
Feb.

D.;C.
value,
Issued

Company's common voting shares, without par
will be divided into two series: Series I will be
to the public, firms that produce space explora¬

other non-communications con¬
cerns.
Series II wvill be issued; to FCC-approved comi munications common carriers, with the provision that
no
more
than half the company's total shares can be
held by these carriers, and no individual or group may
tion

and

equipment

Price—Maximum
of $100 per share. Business—Congress has authorized
the company to provide satellites and ground facilities
for the international transmission of telephone, tele¬
graph, television and other communications. Office—
3029 Klingle Rd., N. W., Washington, D. C. Underwriters
—To be named. Note
Leo D. Welch, Chairman, has
announced that the company hopes to make a public
offering of its stock "not later than the early part of
hold

over

of the remaining 50%.

10%

—

1964."

Connecticut Yankee Atomic Power Co.

April 23, 1963 it was reported that the

.,

12 utilities which

jointly own this new firm, have petitioned the SEC for
exemption from the Public Utility Holding Company Act
to permit the negotiated sale of $55,000,000 of the firm's
bonds. The request has been opposed by a major under¬
writer who wants the bonds to be sold at competitive
bidding. Business—Company was

formed in December,

1962, to own and operate a 500,000 kw. atomic power
plant at Haddam Neck, Conn. Proceeds—For construction

$70-$80,000,000 plant. Office—441 Stuart St.,
Underwriters—To be named.

of the
ton.

Consolidated Edison Co. of New York,

Bos¬

Inc.

May 22, 1963 the company stated that it will have to
raise approximately $800,000,000 through the sale of
securities, to finance its five-year construction program.
In addition, it will have to refinance $52,000,000
of
maturing bonds in the period ending 1967. Office—4
Irving Place, New York. Underwriters—To be named.
The last public bond issue, in December, 1962, was won
at competitive bidding by Halsey, Stuart & Co. Inc.
Other bidders were Morgan Stanley & Co., and First
Boston

Corp.

Consumers

Power Co.

Aug. 16, 1963, it was reported that the company plans to
sell $20,000,000 of straight debentures in the 4th quarter
of 1963. Office—212 W. Michigan Ave., Jackson, Mich.

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co.-Shields & Co.

(jointly); Harriman Ripley & Co. Inc.-First Boston Corp.
(jointly); Morgan Stanley & Co., Salomon Brothers &
Hutzler-Blyth & Co.-Lehman Brothers-Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly).
Duke Power Co.

April 22, 1963 it was reported that the company has ten¬
tative plans to issue $50,000,000 of first mortgage bonds
In the first quarter of 1964. Office—30 Rockefeller Plaza,
New York.

Underwriters—(Competitive). Probable bid¬

Halsey, Stuart & Co. Inc.; First Boston Corp.;
Morgan Stanley & Co.; Stone & Webster Securities Corp.
ders:

Eastern

Freight Ways, Inc.

1962 the ICC authorized the company to issue
common. Price—By amendment (min. $5). Busi¬
ness—A motor vehicle common carrier operating in nine
eastern states from Vermont to Virginia. Proceeds—For
Oct.

9,
100,000

working capital, debt repayment and advances to sub¬
sidiaries. Office — Moonachie Ave., Carlstadt, N. J.
Underwriter—Allen & Co.. New York.
Florida
March

12,

Power

Corp.

the company announced plans to offer
sometime in 1963, the right to subscribe

1963

stockholders,

for about 457,265

additional common shares on a l-for-20




a

by the U. S. Govern¬

German asset. The; stock represents

appropriate," Merrill Lynch will request the governors*
the required
changes in the Exchange's constitution to permit this.
Industry sources believe that the move is several years
away. Business—Company is the largest brokerage houses
in the U. S. with 139 domestic offices and over 2,300 ac¬
to recommend that member firms approve

count executives. Office—70 Pine St., New

—(Competitive). Probable bidders: Blyth & Co.-First
Lehman Brothers-Kuhn, Loeb &
Co.-Glore, Forgan & Co. (jointly); Bache & Co.
1
(11/7)

Georgia Power Co.

subsidiary of The
of first mortgage
$7,000,000 of preferred stock in November

Jan. 22,1963 it was reported that this
Southern Co;, plans to sell $30,000,000

and

bonds

Office—270 Peacntree Bldg.,
(Competitive). Probable bid¬

Proceeds—For construction.
Atlanta.

Underwriters

—

(Bonds): Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co. (jointly); Halsey,
Stuart & Co. Inc.; First Boston Corp.; Harriman Ripley

Morgan Stanley & Co.; Lehman Brothers. (Pre¬
ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Co.-Equitable
Securities Corp. (jointly);/Morgan Stanley & Co. Bids
—Expected, Nov. 7, 1963.
J
_

& Co.;

(10/21)

Jan. 29, 1963 the company announced plans to sell 100,)00 shares of preferred stock (par $100) in the second

1963. Office—285 Liberty Ave., Beaumont, Tex
Underwriters—(Competitive). Probable bidders: Stone
Webster Securities Corp;; Lehman Brothers-Equitable
Securities Corp. (jointly); Glore, Forgan & Co.-W. C
Langley & Co. (jointly): Lee Higginson Corp. Bids—
Expected Oct. 21. Information Meeting—Oct. 15 (11 a.m.
ECST) at One Wall St. (47th floor), New York.
half of

Hartford

Electric Light Co.

April 30, 1963 the company announced plans to sell $15,$20,000,000 of securities in 1964 to help finance its $26,000,000 construction program. Office—176 Cumberland
Ave., Wethersfield, Conn. Underwriters — First Boston
Corp., New York; Putnam & Co., Hartford; Chas. W.
Scranton & Co., New Haven.
International

Milling Co.

July 8, 1963 the company announced that it expects to
file a registration statement covering its first public
offering of common stock. The sale will include both a
primary and a secondary distribution. Business—Com¬
pany is one of the world's largest flour millers with op¬
erations in five countries. Proceeds—For expansion, re¬
search and debt repayment. Address —1200 Investors
Bldg., Minneapolis. Underwriter
Co., Inc., New York.
Iowa Power &

—

Kidder, Peabody &

Light Co.

reported that the company plans
$10,000,000 of bonds in the first half of 1964. Of¬
St., Des Moines. Underwriters—(Com¬
petitive). Probable bidders: First Boston Corp.; White,
Weld & Co.; Halsey, Stuart & Co. Inc.; Equitable Securi¬
ties Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Lehman Brothers; Blyth & Co

Jan.

16,

1963

it

was

to sell

n

York.

,/y Mexico (Government of)
July 16, 1963 following the public offering of $40,000,000 of external bonds, it was reported that the Govern?
ment
is
authorized to sell an additional $65,000,000
of bonds in the U.

Bo$toii Corp: (jointly);

i?

ity of "going public." He added that, "when the time

Loeb &

Gulf States Utilities Co.

Satellite Corp.

20, 1963 it was reported that papers of incorpora¬
tion have been filed for this company, in Washington,
•

as

ders:

1963 the company stated that it plans to sell
$25,000,000 of debentures in .early Decemoer to raise
money for construction. Office—120 E. 41st Street, New
York.;^ Underwriters — (Competitive).
Probable bid¬
27,

Aug.

1942

^

19,

approved by Interhandel; stockholders, also
must be approved by the U. S. District Court at Wash¬
ington, D. C. Business-^Company is a leading domestic
producer of dyestuffs, chemicals and; photographic ma¬
terials. Office—-111 W. 50th St., New York. Underwriters

*.

Hutzler;

General Aniline seized

of

ment in

recently

Chicago Burlington & Quincy RR. (10/1)
May 20, 1963 the company announced tentative plans to
sell $5,000,000 of equipment trust certificates in October.
Office—547 W. Jackson Blvd., Chicago. Underwriters—
,

shares

Lynch, Pierce, Fenner & Smith Inc.

1963, Michael i W. McCarthy, Chairman, stated
that the company has held informal discussions with the
staff of the New York Stock Exchange as to the feasibilT

Aug.

and Interhandel about

1963 it was reported that the company plans
to sell about $3,780,000 of equipment trust certificates in
late September. This will be the second instalment of
ay total
$10,305,000 issue. Address — Terminal Tower,
•Cleveland,^ O. Underwriters — (Competitive). Probable
bidders: Salomon Brothers & Hutzler; Halsey, Stuart &
16,

Co. Inc.

April 3, 1963 Attorney General Robert F. Kennedy an¬
nounced that the Justice Department had reached an
out-of-court agreement with Interhandel, a Swiss hold¬
ing company, designed to settle the 20-year old dispute
over control of the 540,894 class A and 2,050,000 class B

lion, the Government would receive about $140 million
$60 million. The settlement terms,

Chesapeake & Ohio Ry.
July

_

98% of the voting control of the company. Mr. Kennedy
said that if General Aniline should be sold for $200 mil¬

funds. Office—32

—Shearson,

,

Merrill

Fifth

Underwriters—To be

written by

—

29

(945)

Chronicle

S. and abroad.

Underwriters—Kuhn*

Co., Inc., and First Boston Corp., N. Y.

y

>

»

(10/16)

Nevada Power Co.

July 29, 1963' it was reported that the company .plans to
sell about $11,000,000 of first mortgage bonds in October.
Address—Fourth and Stewart Ave., Las Vegas./Under*

writers—(Competitive). Probable bidders: White, Weld
& Co.; Eastman Dillon, Union Securities & Co.-rKidcler
Peabody & Co. (jointly); Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith—Lehman Bros.—Salomon Bros. & Hutzler Bids—Expected Oct. 16. In*
formation Meeting—Oct. 4 (11 a.m. EDST) at 20 Broad

.v/

-/

St., New York.
Nevada Power Co.

July 29, 1963 it was reported that the company
sell about 120,000 common shares in October.

plans to
Trans<-

approval by Federal and State re^r

action is subject to

ulatory authorities. Address—Fourth and Stewart
Las Vegas. Underwriter—White, Weld & Co., New
New

England Power Co.

Ave.,
York.

(11/19)

10, 1963 it was reported that this utility plans tji>
sell $10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441 Stuart St., Bos¬
ton. Underwriters —
(Competitive). Probable bidders:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman BrothersEquitable Securities Corp.: (jointly); Kuhn, Loeb & Co>
Eastman Dillon, Union Securities & Co.-Salomon Broth¬
ers
& Hutzler-Pari.bas Corp.
(jointly); Merrill Lynch,
July

Pierce,

&

Fenner

Smith

Inc.-Kidder, Peabody & Coy-

White,
Weld &
Co.
(jointly); First Boston Cor$.
(Preferred)
First
Boston
Corp.;
Dean
Witter &
O).-Smith, Barney & Co.-Wertheim & Co. (jointly);
Equ table Securities Corp.-Kidder, Peabody & Co.-Le«
Higj.inson Corp.-White, Weld & Co. (jointly); Lehman

Brothers; Merrill Lynch, Pierce, Fenner & Smith Inc.Eastman Dillon, Union Securities & Co. (jointly). Bids
I V,
—Expected Nov. 19.
'

New York,

Chicago & St. Louis RR

(9/11)

1963 the company announced plans to sell $6?540,000 of 1-15 year equipment trust certificates in Sep¬
tember.
Address — Terminal
Tower Bldg., Cleveland
July 30,

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co., Inc.; Salomon Bros. & Hutzler.
BidsSept. 11 (12 noon EDST) at the above address.
New

Electric & Gas Corp.

York State

April 3, 1963 it

was

to

reported that the company plans

$20,000,000 of debt securities to finance its construc¬
1964 and 1965. Office—108 East Green
St., Ithaca, New York. Underwriters — (Competitive).
Probable bidders: Kidder, Peabody & Co. - Salomon
Brothers & Hutzler (jointly); First Boston Corp.-Glore,

sell

tion program for

Forgan & Co. (jointly); Halsey,

Stuart & Co.; Harriman

Ripley & Co.; Blyth & Co.

_f( 1

fice—823 Walnut

(Government of)
May 1, 1963 it was reported that the Government plans
to sell an additional $35,000,000 of external loan bonds
in the U. S. during the fiscal year ending March 31, 1964.
It is expected that the majority would be sold by Dec.
31, 1963. Underwriter—First Boston Corp., New York.
Japan

(9/9)

Norfolk & Western RR

July 2, 1963 it was reported that this road has scheduled
the sale of about $6,900,000 of 1-15 year equipment trust

for

certificates

Office—8 North Jefferson

September.

St., Roanoke, Va. Underwriters— (Competitive).
able bidders: Halsey, Stuart & Co., Inc.; Salomon

Prob¬

(12

noon

&

Bids—Expected

Hutzler.

EDST)

the company's

at

Pacific

Northern

9

Sept.

or

10

Bros.

rx*

Philadelphia office.
(12/10)

Ry.

July 2, 1963 it was reported

that this road plans to

sell

$4,800,000 of equipment trust certificates in De¬
cember.
Office—120 Broadway, New York. Underwrit¬
about

ic Long Island Lighting Co.
Aug. 29, 1963 the company announced plans to
$25-to-$30,000,000 of first mortgage bonds in each

issue
of the

finance its $285,Office — 250 Old
Country Rd., Mineola, N. Y. Underwriters—(Competi¬
tive). Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc.-First Boston Corp. (jointly); W. C. Langley
1964 to 1968 inclusive, to help
000,000 5-year construction program.

years

& Co.

Power & Light Co.

it was reported that this subsidiary of
Utilities, Inc., may issue $25-$30,000,000
in 1964. Proceeds—For construction. Of¬
fice—142 Delaronde St., New Orleans. Underwriters—
Feb. 20, 1963
Middle"South

of bonds early

(Competitive.) Probable bidders: Merrill Lynch, Pierce.
Fenner & Smith Inc.- Kidder, Peabody & Co.-Harriman
Ripley & Co., Inc. (jointly); White, Weld & Co.-Blytb
& Co., Inc.- Shields & Co. (jointly); Halsey, Stuart &
Co.
Inc.;
First Boston Corp.-Glore, Forgan & Co.
(jointly); Salomon Brothers & Hutzler-Eastman Dillon.
Union
Securities
&
Co.-Equitable
Securities
Corp

(jointly).
Massachusetts

Electric Co.

(12/4)

Aug. 27, 1963 it was reported that this company plans to
sell $10,000,000 of bonds in the fourth quarter. Office—
441 Stuart St., Boston. Underwriters — (Competitive)
Probable bidders: Halsey, Stuart & Co. Inc.; First Bos¬

& Smith Inc.:
Kidder, Pea¬
& Co.; Blyth & Co.-Whtie, Weld & Co. (jointly).

Corp.; Merrill Lynch, Pierce, Fenner
Dillon, Union Securities & Co.;

Eastman

body

Bids—Expected Dec. 4.

Power Co. (Minn.)
reported that the company plans to
771,110 additional shares to stockholders on

Northern States

May 14, 1963 it was
offer about
a

Louisiana

ton

ers—(Competitive). Probable bidders: Halsey, Stuart':&
Co., Inc.; Salomon Bros. & Hutzler.
Bids—Expected
Dec. 10 (12 noon EST).
"
Jj

l-for-20 basis in 1964, to

Office—15

raise

South Fifth St.,

an

estimated $25,000,000.

Minneapolis. Underwriter—

rights offering in July 1959 was
underwritten by Merrill Lynch, Pierce, Fenner & Smith
Inc., New York.
To be named. The last

Otter

Tail

Power

Co.

(10/23)

4

1963 it was reported that this company plans
to sell $7,000,000 of bonds in the fourth quarter. Office
—215 South Cascade St., Fergus Falls, Minn. Under¬

Aug. 21,

writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co. Inc;; Glore, Forgan & Co.-Kalman & Co. (jointly); White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Smith Inc.-Salomon Brothers & Hur¬
ler (jointly). Bids—Expected Oct. 23.
Pacific

Gas

&

Electric Co.

Aug. 19, 1963 the company

$70,-

announced plans to sell

bonds in the
San Francisco.
Probable bidders: Halsey,

of first and refunding mortgage
fourth quarter. Office — 245 Market St.,
000,000

Underwriters—(Competitive).
Blyth & Co.; First Boston Corp.

Stuart & Co. Inc.;

V""

.

Continued on page

30

The Commercial and Financial Chronicle

29-.

Continued from page

•

$36,000,000 of outstanding 3% debentures maturing Nov.
1, 1963 and for construction. Office — 80 Park Place,
Newark, N. J. Underwriters—(Competitive).. Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Smith Inc.-Lehman Brothers-Salomon Broth¬

27,v 1963 the company announced plans to offer
stockholders the right to subscribe for additional com¬
mon in mid-November. The number of shares, price and
the ratio to shares held will be announced later. Business
Furnishing of telephone service in Washington, Ore¬

reimburse the company's

and Idaho. Proceeds—To

Co.
June 19, 1963 the company stated that it will need $650
million of new money in the years 1964 through 1966 to
help finance its $1.3 billion construction program. This
means that the company must sell about $217 million of
securities a year, it was stated. Office—140 New Mont¬
gomery St., San Francisco. Underwriters—To be named.
The last issue of debentures on

Halsey, Stuart & Co. Inc. One other bid on
the issue was tendered by Morgan Stanley & Co.

000.000

maturing

of

Stii., Allentown, Pa.
bonds

of

sale

last

sell

$8,Hamilton

For construction and the retirement of

—

and
Underwriters—To be named.
Office—9th

bonds.

on

Nov.

29,

1961

won

was

The

the

that

said

fund

Shields & Co.

to

Philadelphia Electric Co.
5, 1963 the company reported that it plans to
spend $478,000,000 for construction during the five-year
period 1963-67. It added that about half the money re¬
quired will be generated internally, and the balance
obtained by bank loans to be converted into permanent
financing, from time to time, through the sale of bonds
and common stock. Office—1000 Chestnut Si., Philadel¬

of

Pierce, Fenner
Hutzler (jointly).

Brothers &

be

The last sale

named.

(jointly); White, Weld & Co.-Stone & Webster Securi¬
ties; Corp. (jointly); First Boston Corp.-Blyth. & Co.
(jointly); Eastman Dillon, Union Securities & Co.Smith, Barney & Co. (jointly); Lehman Brothers-Bear,
Stearns & Co. (jointly). (Preferred
Stock) White, Weld

& Co.-Stone & Webster Securities
Corp. (jointly); First
Boston Corp.-Blyth & Co.
(jointly); Kidder, Peabody &

Co.; Eastman Dillon, Union Securities & Co.-Smith, Bar¬
ney & Co.-Salomon Brothers & Hutzler
(jointly); Leh¬
Brothers.
;

of com¬

man

15, 1961 was made to a group headed by
Dillon, Union Securities & Co., Blyth & Co.,
Equitable Securities Corp. Other bidders were: First
Boston Corp.-Lehman Brothers (jointly); Morgan Stan¬

Eastman

2, 1959, underwritten by Drexel & Co., and Morgan
Stanley & Co.
*
.

Potomac

Edison

ley & Co.-Kidder, Peabody & Co.-Merrill Lynch, Pierce,

Co.

Fenner &

this subsidiary of
Allegheny Power System, Inc., plans to sell $12,000,000
of bonds in the first quarter of 1964., Office—200 East
Patrick St., Frederick, Md. Underwriters—(Competitive).
Probable bidders: W. C. Langley & Co.-First Boston
Corp. (jointly); Halsey, Stuart & Co. Inc.; Equitable
Securities
Corp.; White, Weld
& Co.-Shields & Co.
(jointly); Lehman Brothers, Eastman Dillon, Union Se¬
curities & Co.-Harirman Ripley & Co -Merrill Lynch,
Pierce, Fenner & Smith Inc (jointly).
Aug.

16,

1963

it

was

that

reported

the

amount

or

year.

to

420,000

the

is

Office

guides

ning..

Probable
Co.-Mer-

The

Provided Business

To

By Pace College

are

the

business

organized
York

by

research

Pace

Trust

College, New
staffs

seeking
to

new

approaches and solu¬

administrative




They are:

comprehensive guide

Executive

the

Research

Confer¬

April

17,

natural

it

1963

gas

was

Corp.

reported

pipeline company

statement

covering

U.

S.

York

ORANGE, N. J.—Jerome
and

Josef

appointed

the

Orange office of Rich¬

E.

newly-formed
registra¬

a

number

of

initiallv to stockholders of

Kohn

&

managers

of

Co., Lackawanna

Mr.
to

and

Walston

Applefield

the

&

before

brokerage

firm

Co.,

coming

taught

school for several years in
New

Plaza.

City

Inc., in East Orange.

Karpinski

have been

South

this

Corp. Address—9601 Wilshire Blvd.,
Beverly Hills, Calif. Underwriter—None.

Applefield

ard

that

plans -to file

undetermined

an

shares to be offered
Natural Gas

R. E. Kohn Appoints
SOUTH

N. Y.

with

Union,

Jersey.

Bank¬

Chicopee

With L. F. Rothschild
M.

poration; The Lummus Company;

ciated

with

Morgan Guaranty Trust

Co.,

General

Western Transmission

common

41 Park Row, New York 38,

Edwin

Inc.;

on

Dillon,

Co. Inc.

&

Pipe Line Co.

able from Dr. J. S. Schiff, Direc¬

-

Company;

Eastman

Foods

Cor-

Levy has become

The

asso¬

with

new

the

managers

firm

for

have

several

been
years

White, Weld Office

!

L.

F.

Rothschild

&

customers'

as

SANTA

representatives.

BARBARA,

Calif.—

and

facilities for corporate
enterprises

tions

affiliated

service

Mills,

City, to provide

are

Gas

Conference for 1963-1964 is avail¬

tor,

bidders:

Co.; Equitable Securities Corp.; Kid¬
der, Peabody & Co.; First Boston Corp.;
Halsey, Stuart

tion

ence,

..

date, seven major American

Conference.

ers
new

V

Probable

Union Securities &

was

A

plan¬

vVV-"i4 -'v ■' -'C'

"cooperative business

.•

corporations

Executive Research Conference is

for long-range

(Competitive).

ers

May 6, 1963 it was reported that the company plans to
issue $30,000,000 of debt securities in September. Pro¬

key words of the research

research."

70 Pine St., New York.

(City of)

Transcontinental

T-'v

service

was reported that this
utility plans to
$20,000,000 of bonds in the second quarter of 1964.
Office—1100 H. St., N. W.,
Washington, D-. C. Underwrit¬

sell

ing—Indefinite.

Witter &

!

Washington Gas Light Co.
July 2,1963 it

reported that the Diet had authorized
City of Tokyo bonds in the U. S
during the fiscal year ending March 31, 1964.
Under¬
writer—To be, named. The last issue of Tokyo bonds in
March, 1927, was handled by Kuhn, Loeb & Co. Offer¬

Ripley &

(jointly); White; Weld & Co.; Stone

Manhattan Paza, New York.

Pine

70

—

May 1, 1963 it

(jointly);/First Boston Corn.; Lehman BrothersKidder, Peabody & Co>White, Weld & Co. (jointly);
Blyth & Co., Inc.-Smith, Barney & Co. (jointly).

and

Inc.—Lehman Bros,

& Webster Securities
Corp.
Bids — Expected Dec. 10.
Information Meeting—Dec. 5
(11 a.m. EST) at One Chase

(10/29)

the sale of $20,000,000

Co.

a

at

Tokyo

sell $35,000,000 of 30-year first mortgage bonds in
April,
1964. Proceeds—For construction. Office—900 15th St.,

Research Service

Underwriters—(Competitive). Probable bidders:
Halsey, Stuart & Co., Inc.; Salomon Bros. & Hutzler—
Goldman, Sachs & Co. (jointly); Eastman Dillon, Union
Securities & Co.—Merrill Lynch, Pierce, Fenner & Smith

a proposed $12,840,000 offer¬
St.,i New York. Underwriters—
(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—Oct. 29 (12 noon

ing.

reported that the company plans to

(Competitive).
Halsey, Stuart & Co. Inc.; Harriman,
Co., Inc.-Eastman Dillon, Union Securities &
rill Lynch. Pierce, Fenner & Smith Inc.-Dean

mond.

is the second instalment of

EDST)

bidders:

September.

Aug. 5,11963, the company announced plans to sel(l $6,420,000 of equipment trust certificates in October. This

(jointly); First Boston

—

trust certificates in
instalment of a proposed

first

Southern Railway Co.

Service Co. of Colorado

Denver, Colo. Underwriters

equipment

$12,840,000
offering. Office—70 Pine St., Ndw York. Underwriters—
(Competitive), Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—Sept. 5 (12 noon
EDST) at 70 Pine St., New York.

the
Office—929

offered.

of

This

Corp.; Halsey, Stuart & Co.

was

Virginia Electric & Power Co. (12/10)
July 30, 1963 the company announced plans to sell $30,000,000 of securities, probably first mortgage bonds, in
December. Address—Seventh and Franklin
Sts., Rich¬

Railway Co. (9/5)
Aug. 5, 1963, the company announced plans to sell $6,-

St., N. W., Washington, D. C. Underwriters—To be
On Feb. 19, 1963 the company sold $50,000,000
bonds to Dillon, Read & Co., Inc.; Lehman Bros.,
Eastman Dillon, Union Securities & Co., Stone & Web¬
ster Securities Corp., and Johnston, Lemon & Co. Other
bidders on the issue were Kidder, Peabody & Co.—Mer¬
rill Lynch, Pierce, Fenner & Smith, Inc.—White, Weld

1963 it

holder, Blackstone Valley Gas. Address—Pawtucket, R. I.
Underwriters—(Competitive). Probable bidders: Kidder,
Peabody & Co.; Stone & Webster Securities Corp.

Co.;* Blyth & Co. Inc.; Merrill Lynch, Pierce, Fenner
Smith Inc.; Halsey, Stuart & Co. Inc.; First Boston
Corp.

of

June 4,

—

&

named.

Public

Price—At book value
($11.15 per share on Apr. 30, 1963).
Business
Company was formed by Blackstone to take
over its gas
properties. Proceeds—To the selling stock¬

Southern

be

Vallejf Gas to stockholders of BlackEastern Utilities Associates, the latter'
parent.

stone and

&

E

& Co.—Salomon Bros. & Hutzler

shares holdings of

the fourth quarters Address—P. ■ O. Bo*
2736, Terminal Annex, Los Angeles 54, Calif. Under¬
writers—(Competitive) Probable bidders: White, Weld

However, it has not determined

type of security

(jointly).

gage bonds in

expects to do permanent financing in the early

part of

Inc.

Jan. 2, 1963 it was reported that this subsidiary of Paci¬
fic Lighting Corp., plans to sell $27,000,000 of first mort¬

July 30, 1963 the company stated that it will need $50,000,000 of new money in 1964 for its construction pro¬
gram and

Smith

Southern Counties Gas Co. of Calif.

Potomac Electric Power Co.

i

Valley Gas Co.
Aug. 28, 1963 it was reported that the SEC had scheduled
a
hearing for Oct. 10 on a plan under which Blackstone
Valley Gas & Electric Co., would sell its entire 400,000

and

June

(Los Angeles)

North Temple St., Salt Lake
City. Underwriters—(Com¬
petitive). Probable bidders (bonds): Salomon Bros. &
Hutzler; Halsey, Stuart & Co., Inc.; Kidder, Peabody &
Co.; Merrill
Lynch,
Pierce,
Fenner
&
Smith
Inc.

Feb.

on

Bank

Power & Light Co.
was reported that this
utility plans to sell
$20,000,000 of bonds and $10,000,000 of preferred
stock in the second quarter of 1964.
Office—1407 West

,

mon

(jointly); Ffirst Boston Corp.

about

W., Atlanta,

Office—1330 West Peachtree St., N.

Underwriters—To

Ga.

Co.,

Utah

Southern Co.

gram.

&

July 2, 1963 it

Aug. 12, 1963 the company stated that it isl considering
the sale of $35 to $40,000,000 of common stock early in
1964 to help finance its $570,000,000 construction pro¬

phia. Underwriters—To be named. The last sale of bonds
on
Oct. 15, 1959 was handled by Morgan Stanley &
Cc
and Drexel & Co.
Other bidders were: Halsey,
Stuart & Co. Inc.; First Boston Corp.; White, Weld &
Co.
The last sale of common was a rights offering on

Blyth

Los Angeles. Underwriter—None.

Inc.-Salomon

Smith

&

Co.;

stock

common

,

21,

Lynch,

&

to be offered on the basis of one new
shares for each 12 shares held of record
Sept. 16. Proceeds
—To increase capital funds.
Office—600 South Spring St.,

a

would

sell

Merrill

Weld

Aug. 27, 1963 the bank announced plans to offer its
stockholders the right to subscribe for about
$25,000,000

quarter

March

White,

United California

1963 it was reported that the company plans
$50,000,000 of first mortgage bonds in the first
of 1964. Office—601 West Fifth St., Los An¬
geles. Underwriters — (Competitive). Probable bidders:
Halsey, Stuart & Co. Inc.; First Boston Corp.-Dean
Witter & Co. (jointly); Blyth & Co.-Lehman BrothersAug.

Brothers;

Inc.,_(Bonds); Halsey; Stuart & Co. Inc.; Lehman Brothow"?lyto £ Co» Inc* (jointly); White, Weld & Co.-

Southern California Edison Co.

at com¬

by White, Weld & Co., and Kidder,
Other bidders were Halsey, Stuart &
Inc.; First Boston Corp.-Drexel & Co. (jointly).

bidding
Peabody & Co.

petitive
Co.

it, if Sears' itself owned

state

1963 through 1967.

in the period

$75,000,000 of bonds

mutual fund." Earlier, All¬
be in operation late in
1963 on a "very small scale," and would be started on
a state-by-state basis as approval was granted.
Office—
925 So. Homan Ave., Chicago. Distributor—Allstate En¬
terprises, Inc;/ Chicago.
of

Co.

Underwriters—(Competitive). Probable bidders: (Pre¬
First Boston Corp.; Dillon, Read & Co,, Inc.;

Lehman

ruling which "has been construed by some to mean that
registered
investment companies could not purchase
Sears' stock or would be required to divest themselves

written by

Proceeds

ferred );

Electric

19, 1963 the company stated that it plans, to issue
$20,000,000 of preferred stock and $40,000,000 of bonds
by the end of 1964. Office—315 N. 12th
Blvd., St. Louis.

Sears, Roebuck & Co.
Feb. 19, 1963, Allstate Enterprises, Inc., subsidiary, an¬
nounced that it had delayed its plans to form a new
mutual fund until it received clarification of an SEC

Feb. 16, 1960 was under¬

Pennsylvania Power & Light Co.
March 18, 1963 the company stated that it expects to

March

Rochester, N. Y. Underwriters— (Competitive). Probable
bidders: First Boston Corp.; Eastman Dillon, Union Se¬
curities & Co.-Kidder, Peabody & Co. (jointly); Kuhn,
Loeb & Co.; Halsey, Stuart & Co. Inc.

_

and

Co., N. Y.

Union

—

Pacific Telephone & Telegraph

stock

on

commodity market action of
selected issues. Proceeds—For
working capital. Address
—Pennsauken. N. J. Underwriter—Bache &

May 7, 1963 the company announced plans to sell $16,000,000 of debentures in the first quarter of 1964, but
may
do so earlier if market conditions are favorable.
Proceeds
For construction.
Office — 10 Franklin St.,

Co. Inc. Bids—Expected

desk

instantaneous

information

Rochester Telephone Co.

Underwriters—(Competitive). Probable bidders: Morgan
Dec. 3,

—

rental and service of the "Ultronic
Stockmaster," a
unit used to provide stock brokers with

(28th floor), New York.

Plaza

One Chase Manhattan

at

plans to sell $50,Proceeds—To re¬
$48,700,000 debt due Pacific Telephone & Telegraph
former parent.
Office — 1200 Third Ave., Seattle.

Stanley & Co.; Halsey, Stuart &

been

Corp. Bids—Expected Oct. 22 (11 a.m. EDST) at above
address. Information Meeting—Oct. 17
(2 p.m. EDST)

Aug. 27, 1963 the company announced
000.000 of debentures due Dec. 1, 2000.

stock.

While the size of the
offering has not
determined, it is said to be a relatively small deal,
involving over 50,000 shares. Business
Manufacture,
common

(jointly); Blyth & Co.; Goldman, Sachs
Co.-Harriman Ripley & Co. (jointly); First Boston

&

for construction expenditures.
Office — 1200
Ave., Seattle, Underwriter—None.
Pacific Northwest Bell Telephone Co. (12/3)

treasury

Ultronic Systems Corp.
May 28, 1963 it was reported that a registration will be
filed shortly covering the first public sale
of this firm's

Hutzler

&

ers

Third

Co.,

Thursday, September 5, 1963

.

expansion. Office—3100 Travis St., Houston.
Underwriters—White, Weld & Co., and Stone & Webster
Securities Corp., New York.

July 23, 1963 ' the company announced pians to issue
$40,000,000 of debentures due 1983. Proceeds—To redeem

Bell Telephone Co.

Pacific Northwest

pay

.

ceeds—For

(10/22)

Public Service Electric & Gas Co.
.

Aug

gon

.

(946)

30

problems,

of

New

York;

Company

National

Biscuit

120

Broadway,

City, members

New

of the New York

Company; The Sperry and Hutch¬

Stock

inson

and welfare fund department.

Company.

Exchange,

in

the

Before

York

pension

Mr.
a

coming to Kohn

Karpinski

customers'

Cosgrove

&

was

Co.

&

associated

as

White, WTeld & Co. has opened
branch

office at
under

representative

with

Street

Whitehead

New

John

in

E.

150

the

East

direction

Freeman, Jr.

:

a

Carillo

V

of

i

Number 6296

198;

Volume

.

The Commercial and Financial Chronicle

.

(947)

Shearson, HammilhJoJ} anc[ Economic

TAX-EXEMPT5 BOND MARKET

..

f

Gundy & Co., Freeman & Co. and

Continued -from page 6

Kugel, Stone & Co.

steady; that competition will con¬

keen

tinue^ overly

Scaled

between

as

banks and dealers in buying

new

issues; that millions of bonds will
be underwritten with

in

balance
The

little

no

or

yield

to

is

account

$2,265,000.

1963

in

due

bonds

not

were

reoffered.

insurance

tations of note and

the

sit

circumstances,
while

hands

will,

their

on

waiting

On

under

to

due

week

there

the

to

flo¬

no

Monday of
holiday,

issues scheduled.

no

were

were
on

Tuesday's only flotation of men¬

that

tion consisted of $4,000,000 Forest

liable

underwriters

to

individual
wait and

investors

and

will

take

attitude until

see

tax

a

The

i

have,

to

making much money.

.

Ripley & Co.

bid,

up

The

runner-

2.93% net interest cost,

a

submitted

was

|throat business..; %

the' successful

was

net interest cost bid.

getting to ;be a < ijeally tough,■? cut-

,

by

bidder for this issue on a 2.8996%

time
This is just
hard

a

bonds.

jointly

John Nuveen & Co. and Harriman

assurance

going

are

(1965-1979)
headed

account

The

from all this
travail is that municipal dealers
only

serial

Illinois

bill is forthcoming.
■

Cook County,

Preserve District of

a

The

by

Chase

.

Manhattan Bank and associates.

\R'ecent; Awards
*

The

>

account

issue calendar for the

new

Bidding
laxed

at

was

a

Illinois Co.,

slightly more re¬

Co."-'

the

-syndicate
&

Nuveen

Co.

New

State

{Board

Regents

of

Refunding

On

\

Other

major

from 2.00%

with

the

the

Pressprich

W.

R.

Boettcher

&

Stern

Co.,

net

Seattle

the

&

Bros.

Webber, Jackson &

First

Co.,

Curtis, Hay-

Michigan

of

issue

revenue

{marked

and

Isold

inclusive

Township,

New

School

$3,243,000
bonds f to
John

J.

the

on

-The

also

for

from
line,

3.45%

a

the

Other

Reoffered

bank

came

still

.

the

of

include

New

1991)
of

for

York

bonds

101.0028

pon.

also

School

The
for

from

the

on

a

to

7"

.

runner-up

3.20%

a

Oneonta,
(1963-

dollar price bid
a

Marine

3.20%

bid,

cou¬

Trust

syndicate

Kuhn,
Co.,

are

Loeb

of the

came

Co.

of

winning

White, Weld & Co.,
&

American

Co.,

de¬

it

to be good and
Orders

are

bal¬

no

we

as

to

go

Bonds

the

long-

public utility and other
type issues have done

Winslow, Cohu & Stetson, Wood,




1:

■

a

New

4.20s

York

and

3%s gained
such

a

Kansas

point

items

Author¬

Power

on

Turnpike

the week

Florida

as

Turn¬

pike 43/4s, Indiana Toll Road 3V2S,
Maine

Turnpike

4s,

New

York

Thruway Authority 3.10s and Vir¬

ginia

Toll

Many

more.

The

3s gained

which
turn

23

and

revenue

averages

on

point

issues were

Commercial

Chronicle's

V2

or

%.

up

Index

the available

re¬

of the most prominent

issues showed the market to be up
more

week
t-j-

or

than

14

of

a

point

on

the

a

4"

first

1 ,-;i

f

Itri-'t'/-'.

■■

.v

who

where

this

than

like

to

good

a

job

regretful later

he

long

me

and I have told my

ago,

the

is to appraise

thing:

same

step in planning
your

interests,

own

State Bonds Being

a career

that

there

chances

in

for

and

.

.

be

should

those

excellent

interested

researching,
motivating

look

now

ana¬

human

wants.). College• freshmen
,

a

prod¬

new

women

will

surveying,

lyzing,;

be

My father told

turning out

and

men

job

looks

and

now

,

on.

be

materials, and still-un¬

new

note

The '

applications

^ar from saturated.

very

Young

Better

what

also

television

conditioners.

dreamed-of gadgets.

a

road

air

as

blankets,

dishwashers,

and

ucts,
■

domestic

electric

never-ending array of

to

the

accept

is

wants

planner

values,

should

toward
1967.
They
recognize the fact that

should
there

s

will

be

.

demand for

teachers,

still

a

doctors,

insatiable

preachers.

and

school

nurses,

And,

if

may

be

job you're doing, too.

goals,

abilities.

An

underwriting

by

The

is

National City
Seattle

and

-

Bank,

National

$35,-

4 purchased

Sept.

sad

a

got

see

against

compete

in

he

lacks

to

too

com¬

butt

the

which

for

proper

per¬

sonality and the basic aptitude. If
you

want to be

a

selling( intrigues

that

you,

the best 1967 job of all!

NASD Issue New

wall trying to

position

a

the

fellow

a

a

both

and

like

much

and

to

his head

Bank of New
First

personality,

You've

sight

mon

managed

group

Manhattan

Chase

develop

success,

Training Guide
The

National

curities

Association

Dealers

has

of

Se¬

begun

your

assets and do work for which

750,000 State of Washington Pub¬

you

are

lic

School

you

happy. These steps I feel

Dec. 1,

essential, but they do not go far

dates

enough.

dis¬

qualification examination.

on

Building

Public

and

Plant Facilities Bonds, due
1964 to

1981, inclusive. The group
for

100.009999

bid

coupons..

of

2.90%, 3%, 3.10%
3.20%, setting an annual net

41/2%,
and

2.80%,

On

cost

priced

of

State

the

to

2%

from

yield

to

growth

to

out

the

of

The

National

Savings Bank;
of

Commerce

The First National Bank

Seattle;
of

of

Bank

California

United

Oregon;

Bank, Los Angeles; First National

Dallas; The Bank of Cali¬

Bank in

&

and

Inc.;

Co.,

Federation

Trust Co.;

of

Bank

National

Island;

of

State

Bank, Newark; Trust Company of

National

Georgia;

The

Bank

Boston;

of

tional

of

Bank

National

First

Sfiawmut
First

The

Na¬

search,

the

industries

definite
than

has

gains

right

lie

70,000,000

climbed

the

over

shorter

of

and

being

now

and

is

further

ahead.

to

$580

More

billion,

ahead.

working week

production,

With
and

wages,
about

a

more

people

our

and other income

interest,
$550 bil¬

by the time this year's col¬

Spendable income should
should

for

certainly be

expansion
as

in

those

going

and

the

My

forecast

that

the

will

not

consumer

advertising
of

international

Coffin & Burr; Banco Credito and

there

will

able

situation

that

generally favor¬

a

climate

that

so

without

operate

can

serious disruption.
Labor
and

Secondary Offer

to

costs

—

so

industrial

give close attention to

industries that make labor-saiving
A

cortimon
cal

of

237,512

Allied

Chemi¬

offering

secondary

shares

of

Corp. is being made at $51

share

by

Smith,

a

.

M.

New

by

Co.,

equipment,

ery,

was

stockholders

processors.

and

auto¬

and

that

roads,

hospitals,

and

to

construction

received

the

Gas Corp. was

merged into Allied

Chemical Corp. in February

will

not

1962.

receive

part of the net proceeds from
of the shares.

the

boom

more

will

metals

new

schools

increases.

development

materials

light

for

need

population

further

and

new

gains

high

as

Still

of

ensure

is

-

in

speed

alloys. Look also to the chemical
industry,

a

of

topics
in

the

to

In

and

series

pointed

ex¬

review

of

questions

the

that

out
also

and

be

relating

availability

the

publication

valuable

a

review

aid

for

already in the business
who

dividuals

study

persons

for in¬

or

just wish

to learn

about the financial industry.

NASD

to

one

ten

cop'es

Training Guide

for

able

most

Training Guide, the NASD

would

more

be

covered.

announcing

tool

to

in

discus¬

Association's
a

topics

of the

books,

found

the

amination and

problems

assignments

75

quantities
50 cents

cents

of

apiece
than

more

of

the

avail¬

are

and
ten.

in
for

apiece from the National

Association

Securities

of

Dealers,

1707 H Street, N. W. Wash¬

Inc.,

ington 6, D. C.

Chicago Municipal
Bond Club Outing
CHICAGO,
Club

of

111. —Those
the

attend

which * could

surpass

planning

Municipal

Field

Chicago

Bond

Day

on

Sept. 12 and 13, at Fontana. Wis.,
are

urged to get their acceptance

mailed

6,

as

press

on

The

Monday, Sept. 9.

of

day ^nd
pools
is

outdoor

to

fa¬

swimming

and, for the first time
on

stay

return

both

indicate

acceptances
and

all

Abbey for Thurs¬

Friday—which includes

available

plan

received

has

The

and

indoor

Friday,

the guest list goes to

Club

cilities

than

later

not

Sept.

over

early

O'Hare Field

golf

days.

Early

that

many

Friday

night

Saturday from

a!nd Chicago.

Frank B. Hutchinson of

Hutch¬

John X.
unending research in farm chem¬ Kennedy of White, Weld & Co. in
icals,
drugs,
petrochemicals, Chicago, may be contacted for

most

Chemical

sion

difficult

Remember, too,

Co.,

owned by certain

who

reading
reference

machin¬

&

shares when Union Texas Natural

any

office machinery,

mated

farm

conveyors,

construction

machinery,

the

Allied

materials-handling

Inc.

Rhoades

York.

Loeb,

The stock

as

bound

&

Barney

Carl

headed

group

a

devices such

conc'i-

publication presents

new

cluding

to

both

agricultural—should continue

rise,

assist

representative

course,

and

worse

economic

be

to

products.

new

assumes,

grow

will

opportunities

into

selling of

and
con¬

a

This

result.

a

broader

ever

The

Allied Chemical

The

Train¬

page

designed

preparing for the NASD

From

grow

period,

greater in the coming

open

in

115

new,

planned, 80-hour study course in¬

lege entrants graduate in 1967.

spending

a

Guide

registered

and

in store

are

should receive in

lion

ing

the

are

years

efficient

tributing

selected

190,000,000,

Miami;

Memphis;

Bank

should

expansion

population
to

there

'

National

Industrial
Rhode

their

in

are

considered.

fornia National Association; A. G.
Becker

hunters

still further advances

National Bank;

Philadelphia

job

which makes

gainfully em¬
ployed. Our gross national product

under¬

writing group include:
Harris Trust and

and

future

are

3.20%, according to maturity.
members

All

probable

close

bonds

fitted

investigate,

Our

the

reoffering,

the sale
•

the

that

rapidly

appliances' such

dryers,

Engineers .will

example, the

$35,750,000 Washington

a

ago.

is

woman

career

The first

Financial

bond

is

holds

' of

uses

Both

market for electronics

who gets

hopes to .take is heading.

toll road, toll

little better market-wise this past

and

For

grandchildren

Up Slightly

speaking,

& average.
The Index stands at
Corp., 3.463% yiel'd as against 3.475%

•••■-

know

business

Reynolds

Securities
"

Berkey

of

Creations.

2.00%

coupons,

and

man

tinued

company

dollar quoted

term

100.879

coupon,

Western New York and associates.
Other members

Director';

a

just

one

job

a

Barr Brothers & Co.

week.

ac¬

successful

District

naming

from

tabulated

Dollar

ity
.

was the
$2,730,000

business.

Corporation and Youthcraft

Bank

various

available

is

bridge,

syndicate headed by Smith,

Barney & Co.

Association

spoken for.

being

Generally

count totals $2,048,000.

bidder

appears

revenue

2.10%

3.50%, the present balance in

The

is

Co., Inc.

yield

casualty

of

Bank

press.

JjWi-H. Newbold's Son & Co.
yield from

ne¬

Good-

Co., Hanauer, Stern & Co. and
to

and

to be well

bid

jHenry Harris & Sons, Fahnestock
Scaled

Na¬

Seattle,

is expected that this issue is going

five

were

to

for

3.20%

mand

Co.,

Ibody & Co., Commerce Trust Co.,
jKansas City, Northrop & White,

!

Co.,

Oregon,

Dallas,

National

■.

i&

of

Bank

Becker &

&

members

account

Trust

on

ahead.

careful
James R. Lowell, Jr.

McCullough Corp., Radiation Re¬

Trust

Chemical

and

in

Bank

ance

major

winning

Bank

and A. G.

Tor this issue.
•

Bank,

California

which

syndicates

Harris

by

100.08

Stuart

there

and

group

'additional

tional

to

coupon,

Halsey,

are

National

3.45%

bid,

second

group

the

of

tional Bank of Commerce,

dollar

a

bid of 10Q.235 designating a
coupon.

members

who

job and the

look

young

underwriting

gotiated

Other

1985)

-

headed

Ryan & Co.

by

Dillon, (Union Securi¬

Philadelphia National Bank,

were

awarded

(1964

account

to

of

Hammill's

search

a

the

output

ahead.

electrical

heaters,

successful climber knows enough

Shearson,

net

Edison United California Bank, First Na¬

ago

Jersey

3.13%

a

submitted

was

Savings

First

week

a

all

He

graduate

promoted

responsible

for

syndicate.

National

pre-sale.

Thursday

bid,

after they get

—

to

and

move

sets,

down

will

Lowell
be

The

Bank New York Trust Co., Mellon

The bonds matur¬

1993

jointly

Corp.

major

winning

sold and the syndicate

to

cost,

Other

Boston

final

and

ties & Co.

casualty insurance

closed.

ing 1989

First

The

the Eastman

the initial order period, all of the
were

account

Halsey,

Co.,

&

interest

companies and banks and during
bonds

runner-up

now

end

no

clothes

of school.

Mr.

1963.

1,

|

foreign markets will expand

for

instead,

consider,

lege

Sept.

on

3.091%.

wide¬

was

part¬

interest

third

Rowles, Winston & Co.

among

out

will
and

likely to look good several

from

years

right

to

nership in the
firm

Bank

interest ' cost,

net

should

what is

in

now.

major

to

good

seems

see

electricity,

The difference between the col¬

general

Stuart &

and

:in 1965 to 3.60% in 1988, demand

spread

They

was

admitted

I

and

men

necessarily

not

Lo¬

Co., Inc., Harriman Ripley & Co.

Corp.,

J If. Reoffered to yield from 2.40%
for this

R.

York

3.091%

a

The

the

from

Barney

Rauscher, Pierce & Co., Reynolds
& Co. and

an-

Jr.,

well,

Na¬

managed by Blyth & Co., Smith,

den, Stone & Co., William Blair &

young

entering college this Fall

whatever

that

nounce

best

the

State of Wash¬

cost.

3.11%

a

came

Co., Hornblower & Weeks, Paine,

.

exchanges

First

First

submitted

Bank

interest

bid,

to

is

leading

City

ington Building and School (1964-

Co.,

&

led

group

VJ& Smith, F. S. Smithers & Co.,
1981) callable bonds of
I Goldman, Sachs & Co., A. C. Allyn
Co.,

Stock

Offered to Investor^

National

bid for $35,750,000

Co., MertilLLynch, Pierce, Fenner

&

York

New

\ 1

By Roger W. Babsoit
advice

My

It

Sale

the

First

and

tional

syndicate include White, Weld &

ji
I*

present

The Chase Manhattan

by

Bank

this

of

members

yield

Wednesday

Bank,

of 3.6092%.

est cost bid

to

fajr,

jointly

v( 196o-1993) bonds on a net inter¬

,

.

Week's Major

University,

Mexico

"

been

$11,060,000

for

the

a

^

'

'

;

Opportunities Ahead

in¬

and

balance in account $2,420,000.

the successful

was

bidder

and; only

has

John

by

headed

p

■

2.95%, initial investor demand

to

Late last Wednesday

mixed.

yvas

The

Co.,

&

Rodman & Renshaw,

Reoffered

and initial demand for these loans

v

of

firm

and Kenower, MacArthur &

cago

than in recent weeks

pace

Hammill

National Boulevard Bank of Chi¬

bonds.

purpose

other

Hayden, Stone & Co.,

are

Shearson,

pst proportions totaling but $65,-

^40,000 of various

of the winning

Other members

past week has been of very mod-

banking

member

James

bids for bonds which are unprof-

.

..

York City, national

New

vestment

Exchange and

Friday there

this

make

v

St.,

' ' '

1

.

.

5

women

profit to dealers; that banks will
buy only what they have to; that
companies

Admits Lowell

in ShearsOn, Hammill & Co., 14 Wall

2.00%

from

in 1991, the present

1964 to 3.20%

31

other

lines

as

a

result

plastics, and synthetic fibers.

of

inson, Shockey & Co. or

further

information.

32

The Commercial and Financial Chronicle

(948)

.

Thursday, September 5, 1963

..

Sept. 12-13, 1963

WASHINGTON AND YOU

(Chicago, 111.)

Municipal Bond Club of Chicago
27th annual field day;
cocktail

Abbey,

behind-the-scenes interpretations

registration,
party and dinner at the

Fontana,

field

capital

from the nation's

day

at

Wis.

Big

Sept.

Foot

12;

Country

Club, Fontana, Wis. Sept. 13.
Sept.

18-20,

1963

(New

Orleans,

La.)

C.

WASHINGTON, D.

of thousands of per¬

Hundreds

Nearly

—

person who
witnessed at first hand the recent

mighty "March on Washington"
demonstration probably was im¬

commerce

not

engaged

now

the great¬
est protest rally in American his¬
tory because in the neighborhood
of
200,000
negroes
and whites
Unquestionably it

14th

Bond

affects

which

Amendment

pressed.

Sept. 20, 1963

the

only

fall

under

action," would come under

"state

was

In

the

and

Sept.

statements
civil rights

legislation

Hill

Capitol

on

a

unknown1

that is generally
people.

story

is

Act

proposed Civil Rights

The

in

1963

of

rights and 90% extension of

civil

according to
foremost
constitu¬

Federal

raw

power,

the

some

of

tional

lawyers

If

have studied

who

beginning to the end.

from the

bill

this

does

President

Bar

it is

do,

ministration
in

have

would

"Never in the history of nations

the head

of

untrammeled

naked

is embodied

as

State demanded

any

such

power

this Act,"

in

says

John

C.

Satterfield, former Pres¬

ident

of

the

Bar

State

the

on

checks

of becoming

verge

dictatorship.

is

it

If

balances

and

Constitution

the

States

will

,

be

set

little

United

The
than

more

local government) agencies,

ing

by

up

the

of

a

the

destroyed.

be

will

States

enacted

exist¬

appendages of the central

as

government and largely subject to
its

Mr.

Satterfield,

reputation
civil

and

who

being

of

has

the

brilliant

a

constitutional

lawyer,

contends that the so-called "Civil

Rights
the

Act

1963"

of

National

would

give

Government unend¬

ing authority to intervene in all
private affairs among
and adjust

control

in

tionships
judgment

men,

with

Government

of
-

and to

property rela¬

accordance

sentatives.

the

repre¬

which

of

'

other

and

financial

•

•

"education

grade school through grad¬

uate

school,"

United

at

authorize

and

the
of

Commissioner

States

local education.

nection

with

activity by

guaranty

"participating
from"

such

in

programs,

or

This

Deposit

or

Insurance

labor unions, indus¬

Corporation,

tries having Government subsidies

benefits,

veterans

contracts,

without
written

bill

Obviously,

the

.

candidate for public

the

has

he

has

said,

of

hours

most

cleverly
read.

ever

it

required

writing

the

by

It

of

Rights

to

against

pressure

municipalities

disturbing

and

and

penalties

Where

process.

process is

that

and

the

Club

of

New

Sports Out¬

ing at the Sleepy Hollow Country

dicial

•

Scarborough

-

on

-

Hudson,

One

does'

member

of

ington
and

the

bar

this

that

the

have

not

of the Federal

and

to

would

the

Wash¬

lives

It

the

of

and child.

own

of

one

United

the

of

i.e.

man

Annual

be

could

that

Oct.

States,

"Every

17-18-19,

National
ment

financial

lishment in the country
transformed

from

a

America

is

at

to

reflect

Oct.

20-24,

institution

judicial

provided, jury trials

are

of

bring

reforms

judgment

would

of

.

about

National

the

Harbour,

Association

Americana

Attention

COMING

of

Bank

Hotel.

Brokers and Dealers

Indian
Maxson

MARKETS

IN

INVESTMENT

New

York

Mills

Electronics
Films

Waste
Oar

FIELD

Head

Official

EVENTS

King

telephone

number

is

CAnal 6-4592

loan

Sept.

commit¬

11-13, 1963

(Pebble Beach

Calif.)

the

of

Bankers

Governors

be

Association

the Del Monte Lodge.

or

businesses

LERNER & CO., Inc.
Investment

Investment
Board

contracts

(Bal

Botany Industries

tees and would require that loans

made,

Invest¬

vietvs.}

The

social

supersede

the

of

inspectors

Federal

to

.

1963

TRADING

so¬

political reform.

and

an

Association

Clubs annual Convention at

may or

in¬

for

to

York

Women 41st annual convention at

not coincide with the "Chronicle's"

would be

stitution

(New

Miami Beach, Fla.)

cross-roads.

estab¬

business

1963

the Statler Hilton Hotel.

President.

major

Association

Bankers

Convention.

City)

the

appointees," said the ExBar

is

be in

S(tates would
of

the

measure

from the nation*s Capital and

financial institution in

most every

death

American

Hotel.

(Washington, D. C.)

*

...

,

controversial

[This column is intended

may

or

the Waldorf-Astoria

at

Oct. 6-9, 1963

the I "behind the scene" interpretation

al¬

life

destroy

Senate Bill 1731.

controls

more

every man, woman

his

in

over

more

powers

The

a

would

measure

Gov¬

beyond the constitution,

balances.

be

bench

or

Government

President

to

ner

violate the constitution by extend¬

it

Investment

re¬

already said the act would

that

Group

be

would

Numerous members of Congress

powers

(New York City)

Bankers Association Annual Din¬

would be used."

ing

York

ju¬

quired. Administrative procedures

have

Oct. 2, 1963

New

No

agency.

proceeding

found

as

fundamental system of checks and

Death" Authority

or

policies followed to

Federal

ernment

appointed

administrative action without

judicial

by

this

be intro¬

even

judgment
sanctions

Bond

York 2nd Annual Fall

agency

Jury Trials Denied
Permit

by

appears

cial

Meeting

at

Securities

10 Post Office Square, Boston 9, Mass.
Telephone
HUbbard

Teletype

2-1990

617

451-3438

denied.

(

of

Federal

Federal

agencies ad¬

financial

pro¬

activities through grants,

Title

act

VI

of

authorizing
nancial

nection

the various States
ernments

in

more

than

grants

are

and

1962

$10

local

gov¬

amounted

billion.

to

These

increasing from

year-

to-year, the records show.
acts

the

money

with

loan,

withhold,

restrict

ticipation

in

such

or

right

deny

programs.




to

par¬

or

in

Cove Vitamin &

con¬

of

|

program

guaranty,

Business

Small

loans,

and

Housing

System,

System, FDIC

all

Federal

a

such

Administration,
Administration,

Administration,
few.

Carl Marks & Co. Inc.
FOREIGN

Administration

loans

and

Warrants

Bought—Sold—Quoted

banks,

as

the

Federal

SECURITIES

20 BROAD STREET

•

SPECIALISTS

NEW YORK 5, N. Y.

Annual Report available
on

request.

TELETYPE 212-571-1685

TEL: HANOVER 2-0050

WILL, THOMPSON & CO.,

Public
~

Federal

National Mortgage Association, to
name

Common

or

|

Reserve

Loan

Pharmaceutical

|

of grant, contract,

Federal

Housing

the

for

fi¬

§

ing

personnel

or

indirect

or

any

insurance

Veterans

to give the adminis¬

way

every

otherwise. This would include the

would be amended by this sweep¬
measure

amend

providing

direct

assistance

activity by

Home

creating such agencies

appropriating

would

Congress

guar¬

trative

"Life

of the present

Civil

on

Federal

anty, etc. Federal grants-in-aid to

All

one

A

'discrimination'

prevent

and

American

Federal

new

ought

the far-

i

hands

a

St.

man

financed

Government Would Wield

and
up

is

duced.

United

any

.

it

but

bill would

the

far-reaching

loans, contracts, insurance,

and

a

the

office.

the proposed act is

doubt

grams or

next

or

such

primary elec¬

or

Main

to

provisions.

for the purpose of elect¬

.

.

every

familiar with

'^Financial

Extend Federal control over all

.

but

bill will not be enacted this year

social security, etc.

"general, special

constitu¬

all

certain all of the proposals in

agricultural

all

St.

Wall

become

to

give

studying

Scores

from

is not

measure

to

lawyers,

realize

been

minister

tional

leasing of homes, banks served by
Federal

sweeping

frightening

as-

States.

authors.

This

only

persons

construction and sale

other

says

K

New York.

benefiting

or

programs.

includes

sertedly

all

control

to

or

of graht, contract,

insurance,

loan,

con¬

program

any

way

otherwise"

"in

assistance

financial

some

have

well-dressed to be

customers."

Municipal

Club,

reaching

Authorize manipulation of Fed¬

exert

who

is—he's too

he

our

level

every

Education to supervise State and

Set

38th

controls

from

individuals,

attorneys

know who

don't

-

over

distinguished barrister, and

lon^

"I

that States "license and

Grant Federal authority to exer¬

.

Philadelphia

Sept. 27, 1963 (Ne>v York City)

corporation

private

every

protect" all corporations.

ing

(Philadelphia, Pa.)

of

Huntingdon Valley Country Club,
Huntingdon Valley, Pa.

the theory

tions

Club

Congressional finding that
act is "state action."

Commission

proposals,

Bond

pays

Extend Federal control to every

^

Exchange

annual outing and field day at the

State

a

upon a

eral

Stock

of

br municipality,

to

tax

(Salt Lake City,

meeting of the Board of

Sept. 27, 1963

corporation or
a license

individual,

every

and extend powers

V.''

"Cleverly Written Bill"
The

Firms fall

control

Federal

under

association

or

CHRONICLE'S Special Pictorial

Association

legislative enact¬

and

the

conrol."

Asso¬

Governors at the Hotel Utah.

Place

Asso¬

"except when such

ciation,
was

American

Traders

Utah)

ments.

cise

governed by elected officials has

(Colorado

Security

Sept. 23-24, 1963

present judicial

clause far beyond

its

lent

presenting it.

1963

Supplement Oct 17.

commerce

formed under State statutes, upon

will

disturbing that the Kennedy Ad¬
name

interstate

the

of

American

it

says

•

citi¬

act

the

of

Association

Allegheny

Broadmoor Hotel.

over

By legislative definition, exten¬
sion

of

22-26,

National

immediate past

the things that the

the

and the States as follows:

zens

every

half

even

control

Federal

for

k

business, industry, individual

10%

is about

reality

Pittsburgh annual

at

ciation Annual Convention at the

proposed

Mr. Satterfield said the

definitions

to the American

(Pittsburgh, Pa.)

of

Springs,' Colo.)

Over All Businesses

Controls

wo

con

pending

the

about

and

pro

Club

outing

Bill Would Establish Federal

historic legislation would lay the ground-

demonstration

between the

Tax

this legislation.

Some speakers cor¬
rectly described it as the greatest
outcry for rights since the

Tulane

Country Club.

participated.

Emancipation Proclamation.

Annual

Institute.

and thus not subject to

control

Federal

Thirteenth.

professional—
in interstate

sons—business and

fair-minded

every

\

\

INC!

70 Wall Street, New York 5, N. Y.
Tel: WH 4-4540

Tele. 212 571-1708