CFA Institute Front Matter Source: Financial Analysts Journal, Vol. 21, No. 1 (Jan. - Feb., 1965), pp. 1-106 Published by: CFA Institute Stable URL: http://www.jstor.org/stable/4469753 . Accessed: 12/06/2014 05:33 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . CFA Institute is collaborating with JSTOR to digitize, preserve and extend access to Financial Analysts Journal. http://www.jstor.org This content downloaded from 195.78.108.77 on Thu, 12 Jun 2014 05:33:34 AM All use subject to JSTOR Terms and Conditions
Transcript
CFA Institute
Front MatterSource: Financial Analysts Journal, Vol. 21, No. 1 (Jan. - Feb., 1965), pp. 1-106Published by: CFA InstituteStable URL: http://www.jstor.org/stable/4469753 .
Accessed: 12/06/2014 05:33
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp
.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].
.
CFA Institute is collaborating with JSTOR to digitize, preserve and extend access to Financial AnalystsJournal.
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FINANCIAL ANALYSTS JOURNAL is published bi-monthly by The Financial Analysts Federation, a non-profit voluntary asso- ciation devoted to the advancement of investment management and security analysis. Neither the Federation nor its publica- tion's editorial staff are responsible for facts or opinions contained in articles therein. Copyright 1965 by The Financial Analysts Federation. Printed in U. S. A. Articles may be reprinted only by permission of the Editor. Indexed in the Business Periodicals Index. Second class postage paid at the Post Office at New York, N. Y.
Annual subscription $6.50, foreign $7.25; single copies $1.50, foreign $1.75; three-year domestic subscription $16.50; Educa- tional Institutions: 10 or more annual subscriptions to the same address, $4.50 each. Mail subscriptions to Financial Analysts Journal, 82 Beaver Street, New York, N. Y. 10005.
Address advertising communications, plates, etc. to Grant Webb & Company, 509 Madison Avenue, New York, New York 10022.
Headquarters of The Financial Analysts Federation: Charles A. Hoskin, C.F.A., Administrative Secretary, 85 State Street, Boston, Massachusetts 02109
For information concerning applications for CFA examinations, and any other information on the Institute, please contact:
Dr. C. Stewart Sheppard, Executive Director The Institute of Chartered Financial Analysts Monroe Hall University of Virginia Charlottesville, Virginia 22903
C.F.A. registration forms must be received by the Institute no later than October 1st.
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DIAT GT&E FOR PROGRESS At GTctE. we've made dive,'sification pay off /17 a/I-around growth. Thats because we've concentrated on
related fields of operation. For instan7ce, yesterday's mnetallurgical advance is today/s /improved semvicondu/ctor a/)d tomorrow's suiperior- commlunications system. This technological chain of events follows through the entir-e G TZ5 structur//e an)d accounlts for our/ con1tinLied progr-ess in comn)uf7ications by sight and souind. This is
anoth)er r-eason) why youl hear- people say. "CTZ5 looks hike it will neever stop growmi7g" And th1ey're righet.
GENERAL TELEPHONE & ELECTRONICS 730 Third Avenue, New York 17
GTdE SUBJSIDIARIES. General Telephone Operating Comnpanies in 32 slates General Telephone d Electronics Laboratories' General Telephoned Eflectronics International' General Telephone Directory Co 'Au/tomastic E lectric' Lenkurt E lectric' Sylvania Electric Produ/cts
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PIERRE R. BRETEY. Hayden, Stone & Co. .... ........ Editor Emeritus
JOHN STEVENSON, C.F.A., Salomon Brothers & Hutzler ...... Publisher
GRANT WEBB, Grant Webb & Co. ........ Advertising Representative
BOARD OF EDITORS
NICHOLAS MOLODOVSKY
White, Weld & Co. Editor
Associate Editors
JOHN M. BIRMINGHAM, JR. Wellington Management Co.
Philadelphia
A. HAMILTON BOLTON, C.F.A. Bolton, Tremblay & Co.
Montreal
LANDON T. CLAY Massachusetts Investors Trust
Boston
JULIAN GUMPERZ Basic Economic Appraisals, Inc.
New York
FRANK \V. HAUSMANN, JR., C.F.A. National Bank of Detroit
Detroit
ROBERT C. HEIM Empire International Corp.
New York
HARLOW J. HENEMAN
Cresap, McCormick & Paget New York
SIDNEY HOMER Salomon Brothers & Hutzler
New York
PATRICK J. JAMES Chase Manhattan Bank
New York
IRVING KAHN, C.F.A. Abraham & Co.
New York
RICHARD W. LAMBOURNE. C.F.A. Insurance Securities Inc.
San Francisco
EDMUND A. MENNIS Wellington Management Co.
Philadelphia
JOSEPH MINDELI, Marcus & Co.
New York
C. REED PARKER Duff, Anderson & Clark
Chicago
THOMAS W. PHELPS Scudder, Stevens & Clark
New York
THOMAS C. PRYOR White, Weld & Co.
New York
RALPH A. ROTNEM Harris, Upham & Co.
New York
BERYL W. SPRINKEL Harris Trust & Savings Bank
Chicago
To Our Authors All articles and communications
should be addressed to the Journal's publisher at 82 Beaver Street, New York, N. Y. 10005. Please send your manuscript in three copies. If not accepted, the original will be returned to you if you enclose a stamped addressed envelope.
Manuscripts may be of any length necessary, in the judgment of the editors, to make the author's point. Anything longer than that is too long. The old rule of saying first what you are about to say, then say- ing it, and finally saying what you have said and what you conclude from it is a good guide to organizing your article.
In a footnote at the bottom of the first page state your background and present occupation. Please submit all other footnotes on a separate page at the end of your article.
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It is the Journal's policy not to accept articles dealing with a single company, but papers analyzing one
industry and the companies therein are sought.
Each manuscript will be reviewed by at least two members of the edi- torial board. Editors may submit to authors recommendations or sugges- tions for changes in the text. All authors are expected to be scrupu- lously fair, and even generous, in acknowledging and referring to work done by prior writers on the subject. Receipt of manuscripts will be ac- knowledged promptly. The order of publication of accepted articles will be based on the editors' judgment as to the timeliness of the material.
The Journal is a non-profit organ- ization. It pays no fees for accepted and published manuscripts. How- ever, authors contribute to the ad- vancement of the profession which gives them a calling and a living. In addition, in working on their manu- scripts, they deepen their profes- sional knowledge. As a token of appreciation, the Journal will send each author 300 reprints of his article.
We earnestly trust that papers published by the Journal will contin- ually increase in quality and variety. We welcome not only articles but also suggestions of subjects that may be of interest to the profession.
:: *
SPECIAL MESSAGE FROM
THE CFA INSTITUTE
The Institute of Chartered Finan- cial Analysts needs penetrating and up-to-date articles for use in its an- nual Study Guides for CFA candi- dates and business school students. A special need now exists for institutional portfolio management articles on insurance companies, banks, fiduciaries, and investment companies. Inasmuch as the Journal continues to be the most effective single source of articles for the CFA program, it is hoped that analysts will make every effort to meet the Institute's need by forwarding manu- scripts to the Journal's publisher.
JANUARY-FEBRUARY 1965 5
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It would be easy to identify us if we made a product. Then we might be a Jones Paint, a Smith Steel, a Brown Electronics, and people would know instantly what business we're in. But actually our business is not a product, it's service. And not just a simple service, but many diverse ones that cover a lot of ground, both financially and geographically. In more than 1000 U.S. and Canadian offices our family of companies now serves over 7 million customers. Among these diversi- fied companies are Occidental Life of California. Pacific
Finance Corporation, Transamerica Leasing, Transa- merica Insurance Group, Transamerica Title Insurance Group, Transamerica Development Company, De Laval Turbine, Inc. Our principal interests are in insurance of all types, lending, leasing, real estate development, and manufacturing. But diversification is not enough. We are also quite proud of our per share earnings, which have increased an average 15% or more every year since 1960. If we had to choose a single word to go on a Transamerica label, it might be the word, "growth."
j TRANSAMERICA CORPORATION
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Everyone at the new Celanese polyester film plant has mysophobia*
* (fear of dirt)
At its new plant in Greer, South Carolina, Celanese is producing a new product line, Celanar polyester film, in a sealed-off "White Room" as clean as a hospital surgery. It's by far the most modern in the industry.
Why this emphasis on cleanliness? The tiniest dust specks on magnetic recording tape, for example, spoil the fidelity of the recording. And, of course, cleanliness is im- portant in polyester film used in computer tapes. Compact electrical components. Stationery supplies. Book and maga- zine covers. Drafting films, printed circuits, and scores of other applications.
So, in our temperature-humidity controlled "White Room" dirt specks the size of a pinpoint are filtered out. The finished Celanar film is wound on non-fibrous plastic
cores and inspected radioactively for possible dust con- tamination.
When an application makes it essential, each roll of Celanar film is accompanied by a temperature flag, to alert customers to any harmful environmental changes suffered during shipment - before they put it on their production line. Or, for highly critical applications, such as computer and instrumentation tapes, an impact re- corder may be included to warn of possible damage caused by jolting in transit.
Contamination-free production and delivery of Celanar is another example of how Celanese puts modern chem- istry to work for its customers . .. in fibers, chemicals, plastics, coatings, petroleum and forest products. Celanar?
Celanese Corporation of America 522 Fifth Avenue, New York, N. Y.
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More than 300 customers and guests attended Confer- ence, plant tour and related activities to mark official opening of Alpha's new Catskill, N.Y. cement plant on September 29, 1964.
.. B.. . . .
Alpha Conference on the Future of Concrete reveals
changing trends, brighter and busier outlook
A panel of fivTe distinguished spokesmen on concrete pro- duction and construction included, from left, A. Allan Bates, Chief of National Bureau of Standards Div. of Building Research; N. 0. Wagner, Alpha president; J. A. Nicholson, Toledo, Ohio, authority and concrete pro- ducer; R. J. Johnson, Director, Research Institute, National Association of Home Builders; Roger H. Corbetta, New York con- r ~~~~structor; and J. H. Webber, economist and Mgr. of Busi- ness News Dept., Engineer- ing News-Record.
Alpha's timely symposium on the Future of Concrete defined the role of concrete and con- crete products in today's modern construction, and pointed their direction through the nex-t decade.
The new Alpha multi-million dollar Catskill plant, which opened officially on the same day, is auto- mated to such a degree that operations throughout the entire plant can be controlled and recorded
from the electronic control room. Advanced, auto- matic quality control methodsk-incorporated here for the first time-are helping to produce cements with unmatched uniformity and quality.
The Catskill plant is the newest of nine Alpha plants and the most recent move in a concerted program of modernization and expansion. Infor- mation on Alpha's overall operation, or the latest quarterly report, is available on request.
first in comprehensive service to cement utsers ......mm.... PORTLAND CEMENT COMPANY AI ph a Bu i Id i ng, Easton, Pa.
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The international operations of Eaton and its Subsidiary,Yale & Towne, Inc., serve customers in expanding Free World markets Around the world people with changing and growing needs are demand- ing new and better products. That's why Eaton is there. Becoming a part of these expanding international markets. Investing capital and matching it with management know-how.
In each of the countries where Eaton and Yale & Towne plants operate, valuable contributions are made to the local economy. In job opportunities. In improved production methods. In the output of prod- ucts identical in quality to the high standards that have earned respect for the Eaton family of products in the United States for nearly a century.
Going where the growth is throughout the Free World has helped Eaton become more than ever before a true composite of the world economy... a leader in parts and products for consumers and more than fifty industries that serve them: automotive, locks and hardware, marine, truck, materials handling, farm equipment, power transmission, metalworking, many others.
Write for Folder M-2. It tells you much more about Eaton and its broadly diversified line of products.
t~~~ 0t .
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I .|S IP1W IAlO. t
International plant operations of Eaton and its Subsidiary, Yale & Towne, Inc., have over two million square feet of floor space, and represent a locally taxed, locally managed investment of more than $27,000,000 in build- ings, land, machinery and research equipment. Typical plants in England, West Germany, Italy and Brazil are shown above (top to bottom).
To our founder, we owe our heritage, our name and our formula for success:
"Producing highest quality products at costs which make them economically practical in the most competitively priced * markets."
873-1949~ ~ ~ ~ ~ ~ ~~~~~~~~i
EATON MANUFACTURING COMPANY
General Offices * Cleveland, Ohio 44114
Domestic and International Operations Throughout the Free World
* AUTOMOTIVE PARTS and ACCESSORIES
MATERIALS HANDLING and CONSTRUCTION EQUIPMENT
* LOCKS and HARDWARE *
* TRUCK and OFF-HIGHWAY COMPONENTS
* MARINE, INDUSTRIAL and GENERAL PRODUCTS
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This General Motors personnel expert is searching out bright young talent. He and others like him are charged with the important task of selecting the best prospects from among thousands of qualified people for jobs in industry. He conducts interviews at dozens of colleges every year.
His job calls for an analytical and understanding mind. He is very careful to get all the facts before making a decision. He looks into the background of each student-scholarship, mental attitude, previous work experience, health and scope of interests. Often the difference between the merely competent person and the future leader can be reduced to a matter of desire. It takes expert judgment to spot the real thing.
Getting its share of outstanding young men each year is vital to General Motors' future. And so, naturally, are the "talent scouts" who find them for us. They deserve much of the credit for the continuing success of the GM team.
GENEBAL MOTORS IS PEOPLE ... Making Better Things ForYou
1*~~~~~~~~, ~ i
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| | t g 41 L1 ov 1 s 7\Xss X i s % i*, l I_ G , ., ., . . Es 7 7 9i Ap + w 61 01 a, I a,f
_~~~~~~~~~~~~~~~~~~~~~~~~~ _ 11n S vUm \LLk;
Tunn ol t--raditions
iuntonew oldntraition
Change without reason is meaningless; true progress is change with reason- change with benefits-change with ac- ceptance.
A Phillips process which has many applications now in separating compo- nents of liquid mixtures has promise of generating such change in the world's giant brewing industry. A logical mod- ern link to traditional brewing art, this development has been termed by many as the most significant technological advance to face the brewing industry since the adoption of pasteurization 61 years ago.
By unique principles covered by more than 90 patents, the Phillips process separates water from beer under pres- surized, freezing conditions. It fulfills the traditional brewmaster's objective of preserving purity and flavor. The fla- vor is "locked in" the concentrate so faithfully that most beer experts who have tasted the reconstituted product
must resort to guesswork in attempting to distinguish it from the original.
The Phillips development offers widespread economic benefits to the brewing industry. It permits a constant year-round rate of production to supply highly seasonal markets-increased plant output at exceptionally low incre- mental cost compared to conventional plant construction - reduced time for lagering (resting) of beer in the brew- ery, a costly step in making beer-less capital investment per product unit- lower storage and freight costs-and introduction of new products.
Fully aware of the magnitude of these advantages, Phillips recommend- ed its process to the brewing industry only after it had evolved through re- search and practical experience in other industries, only after it had been fully tested with many beers, only after products were evaluated by the brewers themselves, and only after economics
were verified in terms of the brewers' own cost data.
Brewers in six continents have de- voted conscientious, unhurried atten- tion to every detail of the Phillips proc- ess. The evidence of these brewers' judgment is found in the growing num- ber of Phillips brewing industry licen- sees throughout the Free World.
Phillips shares with these brewers the credo that beneficial changes- when accompanied by careful preser- vation of the best of the past-produce true progress.
This dedication to true progress, and its implementation in a growing num- ber of fields throughout the world, com- prise another good reason for "looking ahead with Phillips Petroleum." IP
Bellcomm, Inc., is the newest-and by far the smallest-Bell System company.
But its job is one of the biggest. Bellcomm was set up at the request of the National
Aeronautics and Space Administration to bring the Bell System's planning experience to bear on the problems of manned space flight to the moon and beyond.
This type of planning, called Systems Engineering, is the art of mixing, matching and mating seemingly diverse equipment and functions and goals in order to create a unified, coherent operation like a nationwide phone sys- tem, or a moon flight.
Bellcomm's scientists and engineers are now busy ana- lyzing the many missions and tasks of Project Apollo.
This includes analysis of the hardware that has been de- veloped in the form of space vehicles, instrumentation, and the like. The hazards presented by the moon and by deep space are considered, and also the psychological factors of prolonged flight in a weightless environment.
Bellcomm's job is to think, to study and to advise; others design and manufacture. Bellcomm must see that all factors are considered, all questions asked and answered-and this means thinking its way to the moon and back many times before the actual flight.
Bellcomm is staffed by highly talented engineers and scientists who have been attracted by the arduous and exciting work. Every man and woman in the Bell System takes pride in the company's momentous assignment.
Bell System American Telephone and Telegraph Co.
/ and Associated Companies
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Airplanes and lock springs. What's the connection? It's Rockwell-Standard?. We've spread ourselves out without spreading ourselves thin. Nobody turns out more types
and sizes of springs. Our heavy duty springstakethe jolting loads of 100-ton off-highway vehicles. Our precision springs are as fine as a human hair for cylinder and tumbler locks.
And our new Jet Commander speaks eloquently for our com- petence in aviation. It's the first American executive jet aircraft to break the high-price barrier. We're specialists in springs, spe-
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cialists in airplanes, specialists in ten other major product lines. Facts testify to our ability to solve many problems well. We've contributed a number of "firsts" in all the fields we serve, for all
the people we serve, around the world. We'd like to serve you, too.
If you care to know more about us, the answers are in our book- let, "Dynamic . . . Diversified." Just write to the address below.
AXLES * TRANSMISSIONS. SPECIAL GEAR DRIVES * SPRINGS
W ITHIN just one exciting dec- IV Tade, W. R. Grace & Co. has become one of the largest chemi- cal companies in the United States.
Having started in Latin Amer- ica, Grace operations now are world-wide and include more than 100 chemical facilities in 18 countries. End products of the company's chemical manufactur- ing divisions include packaging films and sealing compounds, fertilizers and feed additives, construction materials, catalysts,
plastics, industrial and institu- tional cleaning compounds and a variety of industrial and special- ty chemicals. Effective research programs have led to the issuance of more than 1,300 new patents since 1956.
A forward-looking policy of service for customers has been a major factor in this corporate growth. The Grace divisions help to solve their customers' prob- lems in development of product applications, machinery design, production-line enginering, pack-
aging, label design, sales training and promotion, and market re- search and development.
Looking to the future, Grace plans continued emphasis on re- search and development, the manufacture of highest quality products, and a thorough service program. Customers throughout the world recognize this service as that extra touch of Grace.
W. R. Grace & Co., Executive Offices, 7 Hanover Square, New York, N. Y. 10005.
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The photograph above is of the Great Falls of the Passaic River, Paterson, New Jersey. It is the site of America's first industrial park. The year? 1791! The man? Alexander Hamilton! He helped form an organization known as "The Society for Establishing Use- ful Manufactures", the country's first plan- ned industrial complex "where should be gathered the most skilled artisans of the en- tire world under whose trained eyes and hands should be all the supplies ... needed to make this country independent".
What Alexander Hamilton started in 1791 has multiplied. Today, New Jersey has the highest concentration of industrial parks in America, and their continuing appeal to in- dustrialists is a strong indication of healthy economic growth within the state.
To learn more about New Jersey and its prospects for the future, send for your free copy of the new 48-page booklet "New Jersey - Land of Amazing Advantages". Return the coupon today. No obligation to you, of course.
Public Service Electric and Gas Company O 11NG AOVINS
| Box FAJY, 80 Park Place, Newark, New Jersey 07101
Please send my free copy of "New Jersey X - Land of Amazing Advantages".
I I. INAME ..I..
FIRM ....
STREET ...... .I.
I CITY .... STATE . L_____.I________
@ PUBLIC SERVICE ELECTRIC AND GAS COMPANY Taxpaying Servant of a Great State
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STRENGTH How does a nation gauge its strength? In terms of jet fleets, carriers and missiles? Or its basic industrial power? By the great transportation system that links together all its parts? Or the miracles of mechanized production that have freed its citizens to develop and enjoy the more creative aspects of living? No matter what the yardstick, the oil industry, which supplies nearly three-quarters of all U.S. fuel energy, is a main- stay of American strength. To maintain that strength and to supply future needs so vast that we can scarcely comprehend them is an unending job. Marathon, with extensive oil reserves in North America and Libya, plus exploration activities around the world, is helping to face that reality today and tomorrow.
MAR ATH NRIA C MP N
~~ A new era ~in Maahns 77yaaitr eanti umrwt
our entry into direct marketing of petroleum products in Europe~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Why are ASF trucks so popular?... ask the shippers American Steel Foundries freight car trucks have a lot going for them. El Practical research gives them better steels, better casting techniques, stronger parts, weight-saving designs. El Imaginative engineering gives Ride Control? and Ridemaster? trucks the unique cargo cushioning capabilities that make truly high speed freight service possible. All
ASF components for railroad cars are industry leaders in quality, performance, long life. No wonder so many specify ASF. The same imaginative approach serves ASF customers well in other markets: Fifth Wheels for highway trucks,
Wearpact? excavating teeth, industrial forgings. El ASF is one of the seven diversified AMSTED Industries, a
corporate family dedicated to purposeful growth; practical research and meaningful acquisition. El The others in AMSTED's family include Griffin Wheel Company; Griffin Steel Foundries, Ltd.; Diamond Chain Company, Inc.; South
Bend Lathe, Inc.; Pipe Line Service Corporation; and Griffin Pipe Products Co. El Interested? Ask for "The AMSTED
The rotationally molded 4-foot display piece below cost less
to produce than the conventionally molded 12-inch one above.
..LED BY NATIONAL DISTILLERS' MICROTHENE?
Rotational molding is one of the fastest grow- ing processes in the booming plastics business. It can produce display pieces like the big ham above quickly and inexpensively, even in small quantities.
Chief reason for the effectiveness of this process is Microthene powdered polyethylene. National's U. S. I. Chemicals Division pioneered in the development of powdered polyethylene when it introduced Microthene in 1960.
Microthene has proven its versatility not only for rotational molding . .. it is also used to coat fabrics and metals, incorporated as an additive in waxes and lubricants, employed for many specialty purposes. Available in a number of
types and colors, it is widely used for automobile carpet backing; industrial containers; appliance, gear and pump housings; automotive parts; children's furniture; luggage; and seating. Its possible applications are infinite.
Paced by Microthene, powdered polyethylene sales reached 7 million lbs. a year after intro- duction and should exceed 38 million lbs. in 1965.
The magical world of plastics is only one of the areas National explores to meet the growing needs of its customers. In all its major areas of operation, customer-oriented research and product development is a fundamental part of National's program for corporate growth.
NATIONAL DISTILLERS and CHEMICAL CORPORATION 99 Park Avenue, New York 10016
DIVISIONS: NATIONAL DISTILLERS PRODUCTS CO. * U.S. INDUSTRIAL CHEMICALS CO. I BRIDGEPORT BRASS CO. * FEDERAL CHEMICAL CO. * INTERNATIONAL
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I obsoletes these TV troubles Tube failures, and component failures caused by vacuum tubes, will soon become a thing of the past . . . thanks to high-performance, low-cost semiconductor devices from Texas Instruments. Transistorized television receivers will normally run for years without breakdown. These advanced new TV sets will give entertainment instead of irritation ... fun instead of frustration.
By using TI transistors instead of tubes, Emerson Radio and Phonograph Corporation eliminated the cause of the great majority of set failures. These new TV receivers are expected to show a reliability _ improvement of more than ten-to-one over conventional sets.
Until recently, such extra reliability cost too much! Semiconductors were too expensive for such applications as high-volume consumer TV. Texas Instruments engineers licked the cost problem by employing both germanium and silicon materials, plus several different
technologies such as mesa, planar and epitaxial planar, to provide a line of high-performance transistors, diodes and rectifiers priced to compete with vacuum tubes. This made possible the 11-inch set shown (inset) -the first designed and produced for high-volume consumer usage - which carries a suggested retail price of less than $150.00.
This major advancement is another result of close coopera- tion between TI and other American manufacturers. Ten years ago, Texas Instruments developed circuitry and sup-
plied transistors for the world's first consumer pocket radio receiver. Today, research & devel-
*s opment scientists at TI are working with still other manufacturers . . . . helping to create tomorrow's fascinating new products.
You can improve your company's prospects * = e: for profit by getting in early on some of these
^ l = 0new developments. A new brochure describing TI's capabilities is available on request. Please address inquiries to Marketing department.
I 0
TEXAS INSTRUMENTS gZ |~ N C O R P O R A T E D
P. 0. BOX 5474 * DALLAS 22, TEXAS RELY ON TI MATERIALS * COMPONENTS * ASSEMBLIES * SYSTEMS - SERVICES
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SALES AND INCOMING ORDERS REACH NEW HIGHS Sales of $105,271,654 during the 1964 fiscal year estab- lished a record for the third consecutive year and an increase for four consecutive years. Sales for 1964 ex- ceeded sales for 1963 by $14,447,979, or 15.9 per cent. Incoming orders obtained during 1964 were also at a record level. Total incoming orders exceeded sales, result- ing in a substantially higher backlog at October 31, 1964, than at the start of the 1964 fiscal year.
EARNINGS AT RECORD LEVEL-Net earnings for 1964 were $5,942,722, an increase of 47.1 per cent over the 1963 figure of $4,040,359. This was equivalent to $4.71 per share on the 1,261,726 shares outstanding at the end of 1964, as against $3.22 per share in 1963. Both total and per share earnings in 1964 exceeded those of any prior year in the history of the company.
DIVIDENDS INCREASED-Dividends totaled $2.00 per share during 1964. The $2.00 was distributed through four regular quarterly and one extra dividend, each in the amount of forty cents per share. Dividends in the prior year were $1.85 per share. The company has now paid cash dividends in the seventy-one consecutive years beginning in 1894.
OUTLOOK PROMISING-Throughout 1964 incoming or- ders, sales and earnings of the company reached new highs. The 1965 fiscal year opens with a higher backlog of unfilled orders than a year ago and with the anticipa- tion of further improvement in operations.
THE YEAR AT A GLANCE 1964 1963 Sales ... $105,272,000 $90,824,000 Earnings before income taxes ...... 12,721,000 9,225,000 Net income ........................ 5,943,000 4,040,000 Net income per share. 4.71 3.22 Dividends declared per share ....... 2.00 1.85 Net working capital ................. 45,377,000 39,416,000 Capital expenditures.... . 2,966,000 2,432,000 Facilities after depreciation. . 19,222,000 21,643,000 Book value per share. 44.52 41.78
Copies of the Annual Report are available upon request. Write J. R. Strassburger, Vice President-Fi- nance, REX CHAIN- BELT INC., Milwau- kee, Wisconsin 53201.
INDUSTRY'S HELPING HAND
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If control of our strategic air forces is ever shifted to SAC's Airborne Command Post, things will be happening fast. On board, ITT's solid-state switchboard interconnects with 85 circuits by fast push-button dialing. It provides the airborne commander with direct connection to radio and multiplex equipment, even 24-party conferences.
Should command remain below at Offutt and at other SAC ground command posts, ITT-developed Project 465L will provide up-to-the-minute information on the disposition of all SAC forces. At the same time, other ITT-built systems will keep commanders in constant communication. One of these is NATO's Ace High, the tropospheric-scatter system that extends from Norway to Turkey. An ITT System company designed it, installed it, helps maintain it, and trains military personnel to run it.
Speeding information is a job ITT
can perform uniquely well. For such projects, ITT delivers entire systems, including transmission systems (tropo and line-of-sight microwave, cable, radio, multiplex); switching systems (electronic message switching centers, toll switchboards, cordless boards, PABX's); and terminal equipment (displays, teleprinters, subsets). International Telephone and Telegraph Corporation. World Headquarters: 320 Park Avenue, New York, New York 10022.
THESE ITT COMPANIES ARE ACTIVELY SERVING U..S. DEFENSE AND SPACE PROGRAMS: FEDERAL
ELECTRIC CORPORATION * ITT CANNON ELECTRIC INC. * ITT DATA AND INFORMATION SYSTEMS DIVISION * ITT ELECTRON TUBE DIVISION lfl ITT FEDERAL LABORATORIES
0 ITT GENERAL CONTROLS INC. * ITT GILFILLAN INC. * ITT INDUSTRIAL LABORATORIES DIVISION * ITT LI
INDUSTRIAL PRODUCTS DIVISION * ITT INTELCOM INC. * ITT KELLOGG COMMUNICATIONS SYSTEMS * ITT SEMI-CONDUCTORS, INC. * ITT
WIRE AND CABLE DIVISION * ITT WORLD COMMUNICATIONS INC. * JENNINGS RADIO MANUFACTURING CORPORATION.
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Those straight silk pins shown above retail at 9 for a penny. They are made of solid brass, copper's most popular alloy. Why so cheap, even with nickel plating? In the first place, the metal cost per unit is insignificant. And secondly, brass is such a workable metal
that these pins can be knocked
out on automatic machines faster
than you can count them. The
same holds true for billions of
fasteners used annually by indus-
try-rivets, eyelets, grommets,
terminals, screw clips, nuts, special
stampings. The reason so many of
them are made of brass is that no
other metal at any price provides
all the high-speed tooling, fab-
ricating, and finishing qualities
that make rustproof brass such
an economical metal. 62202A
ANACONDAI
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Take oower in fle EnglandU... Over 260 companies have in the past five years! With only 1.8% of the nation's total land area, and 5.7% of its population, New England puts out 10% of U. S. manufactur- ing. And there's power to spare in this resource- rich region. Write our Area Development NEWENGLANDELECTRIC Department about plant location possibilities.
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Dura is o n th e The direction is up.u AIn the past two years alone sales have
flje fl ~increased by more than thirty percent . . . last year's increase was in excess of $11.1 million. It is also a matter of record that Dura Corporation has paid a quarterly cash dividend continu-
ously since 1935. u Our present fiscal year gives every indication that the upward trend will continue. Our automotive divisions continue to operate at high levels. Record sales and profits are still being attained by our Weaver Division. Dura Business Machines recorded a steep climb in 1964 . . . and indications are that the rate of climb will not diminish. * The record proves Dura Is on the move. Send for a copy of our Annual Report.
KC DURA CORPORATION *,
e ~~~Executive Offices, Oak Park, Michigan 48237t
ADRIAN DIVISION * DURA BUSINESS MACHINES DIVISION * DURA DIVISION * DURA FINANCE COMPANY * KOTA DIVISION
BALTIMORE GAS AND ELECTRIC COMPANY Serving one of America's Great Industrial Centers
QUARTERLY DIVIDENDS Dividends of $1.12V2 a share on the 4V/2% Preferred Stock, Series B; $1.00 a share on the 4% Preferred Stock, Series C; and 33 cents a share on the Common Stock, have been declared for the quarter ending December 31, 1964, all payable January 2, 1965, to holders of record at the close of business on December 15, 1964.
A. E. PENN, Chairman of Board
Dividends paid on the Common Stock continuously for more than half a century-always
earned-never reduced.
The Caribbean Cement Company Limited
(A Jamaican Company)
NOTICE OF INTERIM CAPITAL DISTRIBUTION
The Board of Directors at a meeting held on December 14th, 1964 declared a capital distribution (divi- dend free of Jamaican income tax and sur tax) of 2 Y2 N% on the ordinary shares, equal to approximately 7.50 Canadian funds per share. The distribution will be paid on March 15th, 1965 to shareholders of record February 15, 1965. Distributions now are to be on a quarterly basis, commencing with this distribution.
S. R. CHEN SEE Secretary-Treasurer
Kingston, Jamaica.
DIVIDEND No. 196 \
iThe Board of Directors on E
a Dcasmbviend for 1964
fcourth
cents per share upon the Company's common capitol stock. This dividend will be
paid by check on January 15, 1965, to common stockholders
of record at the close of busi-
ness on Deebe 4,16
WE TALK.. in depth to a broad range of companies
in California, the Northwest and Rocky Mountain States
. . daily with corporate management and industry contacts established over the years by our large staff of San Francisco- based security analysts
. . to institutional investors (all over the country) who have found our factual in- formation and objective viewpoints most beneficial . many of whom now consider our Research Department as their West Coast "arm"
WEST COAST
SE CURITIE S . for example, during the past two months, our security analysts have personally con- tacted, among others:
Ampex Broadway-Hale California Packing Colorado Interstate Gas Crown Zellerbach First Charter Financial Mountain Fuel Supply Rexall Thrifty Drug Transamerica Union Oilof California Valley National Bank
. when you want to talk West Coast in- vestments contact:
3. BARTH & CO. SINCE 1883
Mr. Bruce Blinn ^ Institutional Research Department 404 Montgomery St. * San Francisco * California 94104
Phone: 415-362-6400
New York * Chicago * Los Angeles and other Cities
Members: New York Stock Exchange *Pacific Coast Stock Exchange * American Stock Exchange
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"> ;'A SPRINGFIELD DECATUR A A %. I ...
,If INDIANAPOLIS "IA
TOPEKAI IDAYTON -KANSAS CITY WAVERLY I
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From the rich Panhandle and Hugoton Fields and Anadarko Basin.. .the vast Gulf Coast and off-shore areas of Texas and Louisiana, Panhandle East- ern transmits natural gas to a market area with a population of 20 million people.
Principal markets are located in Illinois, Indiana, Ohio, Michigan, and
Missouri, with Pan- handle's utility dis-
|[ 5 tributors serving
about 5 million customers in ap- proximately 2,200 cities. In addition, Panhandle Eastern serves directly a number of large industrial plants in the area. Major industries include auto- motive, steel, glass, chemical and firebrick. It's a big, growing market that con- tinues to grow! For several years, statistics prepared by the American Gas Association have shown that far more gas has been sold in these states than in any
comparable area outside of the pro- ducing fields. And, all estimates in- dicate a substantial gain ahead for both population and industry in the Panhandle Eastern system area, assur- ing the future growth of gas sales... well above the national average.
For 35 years Panhandle Eastern has pioneered and grown with Mid- west/U.S.A.-and as demand for more natural gas continues, Pan- handle Eastern will continue to ex- pand to meet these needs.
. lu Panhandle Eastern Pipe Line Company
Subsidiary: Trunkline Gas Company One Chase Manhattan Plaza, New York, N. Y.
Serving Midwest! U.S.A.
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