Evening star. [volume], August 23, 1963, Page A-11, Image 11

About Evening star. [volume] (Washington, D.C.) 1854-1972

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KING-SIZED 'EARS OF CORN'
No, the man at the left hasn’t been nibbling on an ear of corn. Cylinders
such as these, studded with thousands of connectors and diodes, will
play a big part in an advanced electrical research project sponsored
by the Bonneville Power Administration in Oregon. The work is being
ri done in the West Allis (Wis.) plant of the Allis-Chalmers Mfg. Co.
TRICKY MANEUVER
Treasury Bill Move May Help
To Solve U. S. Fiscal Problems
By SAM DAWSON
Aaepeiated Pren Business News Analyst
NEW YORK—Another move
to.bring United States Treasu
ry monetary policy closer in
step with Federal Reserve cre
dit management and with cor
porate financing needs will
.start next week.
I Changing the present quar
terly issues of one-year Treasu
ry bills to a monthly offering!
Iseems at first glance like a rou-!
tine matter of interest only to
security dealers.
I But it could go well beyond
that. It is further evidence of
■the important part monetary
policy will play in meeting the
problems that becloud the eco
nomic outlook.
! The change to what the
Treasury dubs "a more or less
automatic turnover basts’’
mljht have a role in tackling
the twin financial problems:
curbing the outflow of gold ard
dollars abroad by firmer con-
n i
, a
ALL COMPANIES
TO EQUIP CARS
WITH SEAT BELTS |{
DETROIT. (AP). All
five major American auto .
manufacturers say that ,
their passenger cars will be ,
factory - equipped with
front seat belts as stand- ;
ard equipment beginning
January 1.
Ford Motor Co. and 1
American Motors Corp. i
announcements followed 1
statements by General 1
Motors Corp, and Chrysler
Corp, that the move was t
prompted by increasing j
public acceptance of seat i
belts as a safety measure, r
Studebaker Corp, an- |
nounced last February that ;
it was making the safety
devices standard equipment . (
on its cars. .
American Motors said its ,
seat belts will be a new
type with an automatic
feature which increases '
their convenience.
The GM, Chrysler, Ford *
and American statements 1
said list prices of the new <
models will be adjusted to )
include the cost of the seat 1
belts. i
W s. I
■ Wl I
B » B
I F *
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" t
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*1 11$
INSURANCE LEADER
William J. Mileham (right), sales director of
the Washington agency of Mutual Benefit
Life Insurance Co. of Newark, was the com
pany leader nationwide in handling group
Insurance cases in 1962. The conwany liked
that, and Robert C. McQueen, Mutual vice
president, presented Mr. Mileham with a
silver tray at Mutual’s annual meeting a few
day ago in White Sulphur Springs.
BUSINESS
trol over short-term loans and
i interest rates, and the slmulta
i neous encouragement of eco
nomic growth at home through
! comparatively easy long-term
credit.
One of Several Changes
This is a tricky task at best
but one that the money man
agers see as ever more pressing.
The monthly bill offering Is
i another In a string of moneta
ry changes, in the last few
I months.
Early in the year the Federal
Reserve began to tighten the
short-term money market. If
only by foregoing steps that
would ease it. The result was a
slow rise in yields of short
term securities, such as the 91-
day bills and six-months bills
the Treasury Issues.
The aim, now acknowledged,
was to make returns here look
more attractive to those with
idle funds which they had been
shipping abroad where yields
where higher. This added to
the surplus of dollars in foreign
hands, part of which were
turned in from time to time for
gold held by the United States
Treasury.
i Then a month ago the Fed
eral Reserve went another step
and raised its discount rate
'from 3 per cent to 3.5 per cent.
This is what it charges member
banks for loans which they in
turn can use in making short
term loans to business. Such
boosts in the discount rate usu
ally make all such borrowing a
little more expensive, or at
least a little harder to get.
The moves have had little
effect on longer term borrow
ing, such as home mortgages or
state and local bond Issues.
This is because so far there has
been an ample supply of funds
building up from increased
savings entrusted to various
financial institutions.
In announcing its move next
week to start substituting up to
sl2 billion in one-year bills
maturing on a monthly basis
for the outstanding $9.5 billion
of such bills maturing in Janu
ary, April, July and October,
the Treasury noted that this
would make it easier for the
Federal Reserve to change cre
dit policies as it thinks best.
1 Now there is a maturing of
■ Treasury one-year bills every
’ four months in amounts rang-
J ing from $2 billion to $2.5 bil
lion. And The Reserve usually
puts off any steps that might
make it hard for the Treasury
t to refund at that time. The
’ Treasury feels that monthly
‘ refunding of smaller issues
. should give the Federal Reserve
r a freer hand.
The free hand is desirable
I just now to meet any changing
> in international monetary sit
’ uations that could put further
t pressure on the dollar, beset by
i a lately increasing deficit in
. the United States balance of
• payments with other nations.
> The money managers also
would like a freer hand in
> quick changes in credit policies
• that either could spur economic
i growth or discourage a specu
i latlve boom. Growth is the
' chief aim just now as a means
1 of meeting the problem of
unemployment. But a specula
tive boom, however remote it
may seem today, is always a
possibility in America’s always
changing economy.
New Pay-TV Firm
Files Offering
Os S3O Million
By the Associated Press
A new pay-television com
pany has filed a registration
statement with the Securities
and Exchange Commission for
the offering of about S3O mil
lion in stock to the public.
The company. Subscription
Television, Inc., is jointly owned
by Learsiegler, Inc. ahd Reuben
H. Donnelley Corp., a sub
sidiary of Dun & Bradstreet.
The company reportedly
plans to begin operations on the
West Coast in mid-1964. There
also have been published re
ports that the company has
reached agreements with the
Los Angeles Dodgers and San
Francisco Giants for telecast
ing the teams’ home games.
The registration statement
said the company would offer
2,550,000 shares at a proposed
price of sl2 a share.
It has been reported that
subscription television plans to
charge its customers $lO
for installation of the system
and a basic monthly charge o(
around $4, plus extra charges
of $1 to $1.50 a program. There
apparently would be an extra
charge for special events tele
cast in color.
Subscribers would have a
choice of two or three chan
nels.
Virginia Bank Merger
Voting Is Scheduled
RICHMOND, Va. (API.
Stockholders will vote in spe
cial meetings September 20 on
a plan to merge the Hallwood
National Bank in Accomack
County with the Bank of Vir
ginia.
The Hallwood National Bank
has total resources of $5,119,-
000. The Bank of Virginia has
total resources of $188,823,000.
A spokesman said merger
would be effected by the ex
change of 5.7 shares of Vir
ginia Commonwealth Corp., a
bank holding company, for each
share of Hallwood National
Bank stock.
Dividend Announced
Central Charge Service, Inc., !
has announced a quarterly
dividend of 5 cents per share
on the company’s common I
stock, payable September 30 to '
holders of record at the close I
of business September 10.
WASHINGTON, D. C., FRIDAY, AUGUST 23, 1963
Major Survey
Os U. S. Banks
Is Launched
By the AMoeMted Preu
A study of the United States
banking system has been
launched by the House Bank
ing Committee.
Chairman Patman said yes
terday “an entirely friendly sur
vey” is being started with the
mailing of the first of a series
of questionnaires to a 3,000-
bank sample of the country's
financial institutions.
The first questionnaire seeks
Information on banks’ policies
affecting top personnel, their
problems in raising capital and
their financial reporting to
stockholders.
Later questionnaires will deal
with correspondent banking
relations and the services pro
vided by independent, chain
and holding company banks
and, finally, with policies on
loans and interest.
Committee sources said the
object is to build up a fund of
information against which pro
posals for legislation on such
matters as tightening or relax
ing laws on branch banking
and bank holding companies
could be judged. It was indicat
ed the committee will take no
final action on pending propo
sals in these fields until the
study is completed—probably
next year.
• The committee said elaborate
precautions will be take nto
prevent disclosure of informa
tion submitted by individual
banks. Reply forms will contain
perforated sections on which
all individual identifications
are made. These will be re
moved by Federal Reserve or
other Federal personnel and
the committee staff will receive
only summaries of information
with no date that could be re
lated to individual institutions,
the committee said.
Piggyback Service
Gets Green Light
By Dow Jone.
Two ICC examiners termed
railroad piggyback service “one
of the most dynamic formulas
for transportation of freight
this country has ever seen"
and recommended that the
commission erect no roadblocks
that would slow its growth.
Examiners Harold P. Boss
and Richard S. Ries found all
forms of piggyback service
legal.
The legality of one plan
under which railroads haul
truckers' trailers and shippers
pay the truckers tariffs had
been particularly attacked by
freight forwarder companies.
Some other variations had
been attacked by truckers.
Gold Stockpile
Holds Unchanged
NEW YORK (AP). United
States gold reserves held un
changed during the week end
ed August 21, the Federal Re
serve Board reported.
This was the fourth week of
steadiness in the last five al
though in the previous week
there was an outflow of SSO
million.
For the year to date gold re
serves have been depleted by
$395 million through sales to
foreign central banks or gov
ernments. At the correspond
ing date last year the outflow
was $742 million.
At the close of business
Wednesday the stockpile totaled
$15,583,000,000, the lowest since
early 1939.
Meanwhile, the board's weekly
statistics showed that member
bank free reserves, or excess re
serves above borrowings from
the central bank, dipped to $95
million a day on average dur
ing the latest week from a re
vised figure of $126 million a
week earlier.
BUSINESS BRIEFS
Federal Land Bank of Louis
ville announced a $1.5 million
dividend, the largest in its 46-
year history, compared with
$840,000 last year.
Kaiser Al. 4 Chem Corp,
announced it is Increasing the
price of aluminum cable, steel
reinforced,. by IMi cents a
pound, effective today.
Kroger Co. sales in 4 weeks
ended August 10 totaled $156,-
792,668, up 9.7 per cent from
1962: for 32 weeks ended Au
gust 10 $1,255,080,826, up 7.7
per cent from 1962.
Earnings
Consolidated Foods in year
ended June 30 earned $10,477,-
170 or $2.18 a share vs. $9,068,-
314 or sl.Bl In 1962.
Falconbridge Nickel Mines in
6 months ended June 30 earned
$6,718,522 or $1.39 a share vs.
$10,527,109 or $2.19 In 1962
period.
Garrett Corp, in year ended
June 30 earned $5,450,000 or
$3.65 a share vs. $5,086,387 or
83.4Un 1962.
Western Mass. Cos. in 12
months ended July 31 earned
$4,786,761 or $1.83 a share vs.
$4,454,339 or $1.71 in 1962.
Beekman Instruments in
year ended June 30 earned 83,-
734.000 or $2.04 a share vs.
$4,824,000 or 83.10 in 1962.
Chi. Musical Instrument in
EMPLOYMENT NOTE
Government workrolls grow
TwlsWT iHwn |M IVUIWe
Employment f .
* (Pod- >w,
8 J NomOov’t
| < _
3*°
« S ( local Govrel
HZ— \ ‘ARE (
GROWING)
YIMLYMTA JM
M.UIU.D* MmbtaT
Hawaii Banker
Fears Tax Bill
By the AMoclated Preet
A special tax on United States
investments in foreign securities
would worsen the balance of
payments situation so far as
Hawaii's relations are con
cerned—and probably do little
good generally, a Honolulu
banker told Congress today.
James H. Shoemaker, vice
president of the Bank of
Hawaii, said the Island state
is hoping for a large influx of
Japanese tourists when ex
change restrictions are relaxed.
"If even a significant fraction
of the potential travel from
Japan to Hawaii were curtailed
as a result of adoption of (the
bill),” Mr. Shoemaker testified
before the House Ways and
Means committee, “the effect
would be to increase rather
than decrease out negative
balance of payments position.”
He said Congress should re
member investments flow both
ways and that recently a Jap
anese firm has contracted to
buy the Princess Kaiulanl
Hotel in Honolulu for $8 mil
lion—about one-third as much
as the total investment of
Hawaiian buyers in Japanese
securities to date.
Industry-Trade Plan Sought
Among Eight Latin Nations
BUENOS AIRES (AP).— A
ranking Argentine official has
expressed hope that Peru, Ecu
ador, Colombia and Mexico will
join four other South American
countries in planning for re
gional integration of industrial
development and trade.
The official, who asked not
to be named, disclosed recently
that Argentina plans to send
special missions to Peru, Ecua
dor, Colombia and Mexico for
talks on the subject sometime
in mid-September.
Argentina, Brazil, Chile and
Uruguay already have begun to
plan integration of their indus
tries and trade. It is being done
on a private basis initially, but
will be placed later under the
framework of the Latin Ameri
can Free Trade Association
(LAFTA).
Hope to Prod Association
The idea is to prod the slow
moving association with con
crete practical results. AU eight
countries together with Para
guay from the nine-member
group, founded in February,
1961, to offset the adverse in
fluence of the European Com
mon Market.
Dissatisfied with the scant
progress attained in LAFTA,
Argentina. Brazil, Chile and
Uruguay began exchanging
mixed missions last month.
The results have been ac
claimed as a definite success in
all four countries. The mis
sions, composed of government
officials and leading represen
tatives from business and in
dustry, find out what the other
country's needs are so that
each can better work out its
industrial development plans.
With industries better inte-
year ended June 30 earned 82,-
392,566 or $1.52 a share vs. 82,-
150,419 or $1.39 in 1962.
Meredith Publishing in year
ended June 30 earned $2,086,-
257 or $1.57 a share vs. 82,097,-
847 or $1.58 in 1962.
Soo Line R.R. in 7 months
ended July 31 earned 81.985,-
451 or 81-58 a share vs. a loss
of 8814,07 6in 1962 period.
Manpower, Inc. in year ended
June 30 earned 81.159,861 or
81.28 a share vs. 81,023,489 or
81.13 in 1962.
Malone A Hyde in year ended
June 29 earned 81.010,908 or
81.24 a share vs. 8753.129 or
81.04 in 1962.
Hotel Corp, in 6 months end
ed June 30 earned 8227,000 or
six cents a share vs. 8612,000
or 21 cents in 1962 period.
Friday's Special:
I Combinotion I
t SEA FOOD BOWL
Crabmeat and Shrimp
I Dinner & Evening Malic at
Wethington's Downtown
I Rathikeller ‘
*823 15th St. N.W. 1
7,700 SfTTLfMfNTS
'63 Wage Contract Gains
Are Up Slightly From z 62
By CHARLES COVELL
SUr Business Writer
Wage increases throughout the country, resulting from
union-management negotiations, have been slightly larger so
far this year than in 1962, the Bureau of National Affairs. Inc.,
announced here today.
In analyzing nearly 1,700 contract settlements, the bureau
found that Increases for the first half of 19§3 averaged 8 cents
per hour. For the corresponding
period In 1962, the boosts aver- in 1962 and for the year to
aged just over 7% cents. 1' August 17, 6 per cent over the
The bureau, a private organ!- same period last year,
zation publishing legal, labor Downtown stores, on the
and economic Information for other hand, showed no gain
business and professional use, ln the week ending August 17
said settlements in manufactur- over the “me week in 1962,
Ing industries this year raised but there wa ® a 1 per cent gain
the average wage by more thap for 1963 compared to the same
7 cents. In nonmanufacturing Period in 1962.
fields, the increase averaged 10 . . n
cents. Training Program
The biggest increases came For CP At Rpninc
in trucking and warehousing, 7 5 Degins
where the average was 20 cents. staff training program for
In the petroleum and construe- certified public accountants is
tion industries, the average in- under way at the University of
crease was 15 cents Maryland in College Park.
Th. h..r.... Sponsored jointly by the D. C.
Institute of CPAs, the Mary
-n‘ land Association Os CPAs and
65 / d h nOt the university, the course is
fHnJp th designed to provide two semes-
Hh2r. e uJ > / I < e * ltS ’ we . re ters of graduate training in
liberalized in most settlements. two wee fc s
New or revised health and It includes Jectures, discus
welfare plans appeared in 40 sions and problem-solving ses
per cent of the settlements and sions. The final event is a
pension plans were developed luncheon set for August 30. It
in 17 per cent. will be addressed by Andrew
Deferred wage increases, be- Barr, chief accountant of the
coming effective a year or more Securities and Exchange Com
after contract signing, also were mission,
provided by 50 per cent of all _
settlements, while weekly hours Financial General
of work were reduced in 2 per A-.-a-
cent of the contracts. Assets Mount
_ e i James A. Bancroft, president,
Store Sales Jump has announced that assets of
7 Dar r-ar,* tn \A/ the 24 banks affiliated with
' CCni In vv eeK Financial General Corp, rose to
Department store sales in the $992,641,355 on June 30, com-
Washington Metropolitan Area pared with $880,555,355 a year
were up 7 per cent in the week earlier.
ending August 17 over the cor- Net income for the first six
responding week a year ago, months of this year totaled
the Federal Reserve Bank of $3,017,000 after provision for
Richmond has reported. taxes and non-operating adjust-
For the four weeks ending ments, compared with $2,726,-
August 17 they had gained 000 for the like period in 1962.
5 per cent over the same week Gross operating 'income
grated, trade increases and tar
iffs and customs surcharges are
lowered among LAFTA mem
bers.
Governments Help
Businessmen do most of the
talking, with government offi
cials standing by to help on
technical problems or to deal
on the spot with government
to-govemment issues that
arise.
Last month, 10 prominent
Argentine industrialists visited
Brazil for a week. A small offi
cial delegation, headed by In
dustrial Secretary Luis F. Got
theil, accompanied them. To
the astonishment of all con
cerned, they drew up then and
there an agreement to ex
change sls million worth of
Brazilian manufactured railway
equipment for Argentine crude
oil. They also pledged to seek
ways of expanding trade on a
long list of other Important
items.
Brazilians and Argentines also
set up a special committee to
explore ways of improving
communications and trans
portation between the two
countries. As a beginning, they
agreed to lift all border restric
tions for overland truck traffic.
Explore Uruguay’s Problem
A Uruguayan mission came
here early this month. The
talks yielded no specific agree
ment, mainly because Uruguay
has a chronic trade deficit with
Argentina. But both did some
valuable exploration toward
solving the problem.
Last week, a Brazilian mission
traveled to Santiago, Chile,
talked about generalities, but|
also laid a solid groundwork for I
future negotiations. Talks will!
continue over the next few
months.
Meanwhile, a Chilean mis
sion visited Buenos Aires and
after a week's negotiation drew
up a temporary agreement to
integrate the Chilean and Ar
gentine auto-truck and trac-!
t o r-manufacturing Industries:
Argentine auto-makers can buy|
what they want in Chile, and!
Chilean auto plants will pur
chase a whole line of parts!
made in Argentina.
&•! I
I I
k NioHn’t ■
Fy “ ,,r ‘
STOCKS
in 1962 and for the year to
August 17, 6 per cent over the
same period last year.
Downtown stores, on the
other hand, showed no gain
in the week ending August 17
over the same week in 1962,
but there was a 1 per cent gain
for 1963 compared to the same
period in 1962.
Training Program
For CPAs Begins
A staff training program for
certified public accountants is
under way at the University of
Maryland in College Park.
Sponsored jointly by the D. C.
Institute of CPAs, the Mary
land Association of CPAs and
the university, the course is
designed to provide two semes
ters of graduate training in
two weeks.
It includes Jectures, discus
sions and problem-solving ses
sions. The final event is a
luncheon set for August 30. It
will be addressed by Andrew
Barr, chief accountant of the
Securities and Exchange Com
mission.
Financial General
Net, Assets Mount
James A. Bancroft, president,
has announced that assets of
the 24 banks affiliated with
Financial General Corp, rose to
$992,641,355 on June 30, com
pared with $880,555,355 a year
earlier.
Net Income for the first six
months of this year totaled
$3,017,000 after provision for
taxes and non-operating adjust
ments, compared with $2,726,-
000 for the like period In 1962.
Gross operating 'income
Both countries now have to
study the reciprocal lowering of
import duties on these pro
ducts.
The deal looks so promising
that officials here want to in
lude Brazil in the arrangement.
Plans are already well ad
vanced to have Brazilian, Chil
ean and Argentine study
groups meet in Buenos Aires.
GRANT
PrettnU
[HOOIENANRri
t»nit« starts S p'.m. ’
MICHAEL RYAN
■A THE NEWCASTLES
■ J JOE MARTEIIARO
1 JIM LIONEL
- ■ I SHADTOWN TRIO
I—. I ANDY WALLACE J
SUE A VAN
fM Cocktail
Th. Hl-Hot Trie Moy.
For Corttoili and 'HI Clotlng
DANCING freni 9:30 P.M.
No Covar—No Minimum
Dlaint Rmh
Csftee Shop
A Open 24 Hour.
.Ambassador
IN 14th A K Sts., N.W.
Announcing the Opening
August 23, 1963
if PRINCE WILLIAM ]
I SAVINGS and LOAN
’ ► ASSOCIATION < >
634 Jefferson Davis Highway
Woodbridge, Virginia
DIRECTORS
A. E Schonberger,
Chairman of the Board of Director*
John S. Alden John L. Eby
Jernei R. Armentrout 2“. rU ' B ’ M „ rD ' ni , rl
William C. Parrish
Gordon Armetrong GrQW w T .
C. C. Cloa, Jr. H. Ewins Well
Robert V. H. Duncan Arthur C. Weid
OFFICERS
Robert V. H. Dunean, President
Grover W. Taylor, Senior Pice President
Walter C. Dunham, Jr, Executive Pice President
Walter F. Meyer, Pice President
Roy Boland Elrod, Secretary
Wilbur Owen, Treasurer
GENERAL COUNSEL
John L. Scott
In Marumsco Ploza
Telephone [phone] Wwiw
Area Cade 703
A-11
NEV/ DEPOSITOR
STAYS AT BANK
AS EMPLOYE
A prospective depositor
at the new Commonwealth
National Bank in Arlington
stayed on to become a part
time employe.
John Doles of 1620 South
Fourteenth road came in
last Friday to start an ac
count. Seeing the jitters
bank employes were de
veloping trying to open t
crates of dishes to be given <
away to charter depositors,
he volunteered to help.
Mr. Doles did so well, the
bank asked him if he would
like a permanent job. Now
he works every day from
3 p.m. until 9 after his ’
regular shift from 6 a.m.
until 2 p.m. as a mail
handler in the Arlington
Post Office.
amounted to $25,302,000 for the
first half of 1963, compared
with $22,348,000 in the same
period last year. At midyear,
total deposits were $888,031,000,
against $789,787,000 at the
same time last year.
Capital funds of the 24 banks,
after dividends, were $69,255.- I
699 on June 30. compared with
$63,695,694 on the same date
in 1962.
“The continued growth of
existing banks, together with
the anticipated opening of new -
majority-interest banks in Tow
son. Md., and Herndon, Va.,
which should be accomplished
by early fall, should add con
siderably to total banking re
sources by the end of 1963,”
Mr. Bancroft said. “In addi
tion. we are acquiring a na
tional bank in Lexington, Va.
Garfinckel Dividend
The Board of Directors of
Julius Garfinckel & Co.. Inc.,
has decisued a quarterly
dividend of 45 cents a share
an the company ’s common stock,
payable September 30 to stock
holders of record September 13.
jgfl
1 FL M 897 11
DIXIELAND
pjnr
JOE RINALDI
& His Ftggy. Bottom I
Plua
TOMMY CHASE
“King of the Keys”
COMPLETE DINNERS $3.25
Coming Aug. 26!
IST ANNUAL
DIXIELAND ALUMNI
FESTIVAL!