Front Matter

CFA Institute

Front MatterSource: Financial Analysts Journal, Vol. 24, No. 5 (Sep. - Oct., 1968), pp. 1-157Published by: CFA InstituteStable URL: http://www.jstor.org/stable/4470392 .

Accessed: 10/06/2014 06:40

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.

http://www.jstor.org

This content downloaded from 62.122.73.122 on Tue, 10 Jun 2014 06:40:22 AMAll use subject to JSTOR Terms and Conditions

http://www.jstor.org/action/showPublisher?publisherCode=cfa

http://www.jstor.org/stable/4470392?origin=JSTOR-pdf

http://www.jstor.org/page/info/about/policies/terms.jsp


September-

October

1968

The Journal at a Glance . . . . 2 Summaries of Contents

Economic Viewpoint

Planning to Meet Retirement Costs . . . . 13 F. C. McLaughlin & J. L. Moore, Jr.

Industry Reviews Outlook for the Aerospace Industry 25 John K. Koeneman Cosmetics / Toiletries Industry .... 34 Margherita Karo The Domestic Toy Industry . . . . 45 William D. Schwartz Machine Tool Industry . . . . 53 John J. Mackin

Accounting & Analysis

Accounting Changes and Earnings . . . . 59 Frank T. Weston & Sidney Davidson Securities and Exchange Commission . . . 67 A Release Have We Solved the Dilution Problem? . . 69 Sidney M. Leveson

Money Market New International Monetary System . . . 73 Ern.est W. Luther Mortgage Demands and Supplies . . . . 77 Alan R. Winger Coupon Bond Price Fluctuations . . . . 89 Richard I. Johannesen, Jr.

Investment Analysis

Risk Estimates .93 J. L. Treynor, W. W. Priest, Jr., Lawrence Fisher & C. A. Higgins

Growth Stocks: A Note .103 Nicholas Molodovsky The Growth Rate Appraiser . . . . 109 Ch.arles H. Jones, Jr. Fiscal Use and Financial Reporting . . . 113 Donald L. Richard

Investment Monagement Performance Investing .117 Charles D. Ellis Measuring Performance of Equities . . 121 Edward A. Fox Yield-Risk Performance Measurements . 130 Robert M. Soldofsky Venture Capital Financing . . . . 141 William Rotch Models for Call Option Decisions . . . . 149 Jerome Bracken

Foreign Investments

The German Stock Market . . . . ..153 James C. Baker

f f i ~~PUBLISHED BY ?"kc ;7iHaHCiaf Autalysts Ycdratiout Vol. 24, No. 5



White, Weld & Co. announces the formation of Interactive Data Services ...a new name in the world of finance

The first service to be offered by sources reflects daily, quarterly Analystics is designed to relieve Interactive Data Services is An- and annual financial information. you of the task of correlating facts alystics, a time-sharing, investor- Ample private storage facilities and figures. With Analystics, you oriented computer service. Here enable each user to store his own can organize data into a meaning- is what Analystics makes available programs, and estimates. ful format so that you can appraise to portfolio managers, security * FFL-the First Financial Lan- it intelligently. Analystics does not analysts, trust officers, and other guage-designed and imple- take away your decision-making decision makers of financial insti- mented directly by us specifically powers. Rather, it permits you to tutions and corporations: to allow portfolio managers and make decisions on the basis of

* A comprehensive time-sharing financial analysts with no com- more complete information, sta-

*fAciit whic henllowscivent aesshrn puter background to communicate tistically substantiated.

fa cilityrwhichallcowsuter clirents l directly with the computer. FFL is For more information, inter-

trom atcentral officosnmp r d tiretl easy to use and understand, yet ested institutions and corporations

fhromghout their officesuintmajor cpowerful and flexible in its appli- should write or call Richard Bruce cations. or John Thompson at Interactive

* Direct accesstoa large financial * A comprehensive customer edu- Data Services. They will answer data base containing information cation program designed to max- your questions about Analystics on over 1500 companies. This imize efficient and effective use of and discuss other important proj- data collected from various the service. ects now on the drawing board.

Charter subscribers to Analystics include: Bank of America NT&SA First National Bank of Oregon Morgan Guaranty Trust Company of New York The Bank of New York First National City Bank The Mutual Life Insurance Company of New York Bankers Trust Company The Hartford Fire Insurance Company The Prudential Insurance Company of America Capital Research and Management Co. Harris Trust and Savings Bank Putnam Management Company, Incorporated The Chase Manhattan Bank, N.A. Investors Diversified Services, Inc. Rockefeller Family & Associates Chemical Bank New York Trust Company

Irving Trust Company The Savings and Profit Sharing Pension Fund of Compufund Management Corporation Keystone Custodian Fund, Inc. Sears, Roebuck and Co. Employes

Company of Chicago Loomis, Sayles & Company United States Trust Company of New York The Danforth Associates Inc. MacKay-Shields Financial Corporation United California Bank

The Detroit Bank & Trust Company Manufacturers Hanover Trust Company Wells Fargo Bank The First National Bank of Chicago Metropolitan Life Insurance Company White, Weld & Co.

Interactive Deata Service,s o?o A Divisionl of White, Weld & Co. *20 Broad Street, New York, N. Y. 10005 * (212) 944-4900



N E s L& lectronics. '_ As soon as they turned it on, it sent out a continuous hom-

ing signal for any searching ships or aircraft. And later, it let them talk with their rescuers. But that's not what makes it special. What does, is that it's only about as big as two cigarette

packs.That it runs on just one flashlight-sized mercurybattery. And that it's so rugged, it works at altitudes up to 40,000

feet-and even after it's been dunked in seawater. Technically, it's an electronic breakthrough. Because It

uses special ci rcuits-call1ed hybrid microcircuits-that shrink - _ ~~~its receiver, transmnitter and voice amplifier down to match-

book size. _ _ _ ~~~~Right now, Sylvania makes this particular radio only for the

_ ~~~~~military. _ ~~~~~But someday we hope to make a version for civilians, too.

_ _ ~~~For hunters, campers, boatsmen, private pilots-anybody who _ ~~~~~runs the risk of getting lost. _ ~~~~~it's too good a thing not to.

_ a~~~~~eneral TelePhone & Eleclronles A group, of more than 60O comPanies, including Sylvania, Telephone Companies and Communication eouiprnert manufacturers,



at a glance

September- October 1968

Federation Activities A Neglected Area: The Smaller Institution .Theodore H. Schneider 9

Features Letters. 5 Financial Analysts Digest .Irving Kahn and Alan R. Kahn 158

PLANNING TO MEET RETIREMENT COSTS Frank C. McLaughlin & John L. Moore, Jr. 13

The present and expected cost of funding employee retirement benefit plans requires both corporate and investment managers to explore every means of increasing the investment performance of the assets in these plans to help prevent additional pressure on corporate profit margins. The economic outlook and pressures on capital markets today warrants an increasing emphasis on common stocks to generate the needed investment earnings. Corporate officers should assist the investment manager in clearly setting investment policy and objectives - which includes determining the real amount of liquidity necessary for the fund. In addition to documenting a case for a greater portion of common stocks in retirement fund portfolios, the authors present their estimates of future forces of economic growth in the U. S. These emphasize the attractiveness of technologically oriented companies, but also afford significant growth potential for certain consumer and service oriented companies. The authors also review the application of various portfolio management techniques in the current investment environment.

OUTLOOK FOR THE AEROSPACE INDUSTRY John K. Koeneman 25

An upsurge in air travel coupled with sharply higher defense spending in recent years has resulted in a "new era" investment psychology that has pushed the relative multiples of commercial aerospace manufacturers significantly above historical levels. The author disputes prevailing bullish attitudes toward the industry, however. A cyclical peak in commercial aerospace sales this year is indicated by airline industry data showing that aircraft production will overtake and surpass domestic airline capacity needs this year. Thus, while earnings in- creases should continue through the end of this year as outstanding firm orders are filled, a decline in commercial revenues and profits can be expected in 1969 and 1970. Concurrently, commercial aerospace manufacturers are likely to be saddled with a heavy R & D burden and this situation will be aggravated by anticipated major cost overruns on the SST. The author concludes that in general the outlook for securities of commercial aerospace producers will experience little, if any, price appreciation over the next several years, although certain well situated military manufacturers could do well.

COSMETICS/TOILETRIES INDUSTRY Margherita Karo 34

Cosmetics/toiletries shipments advance year after year. We believe the immutability of human nature- in conjunction with rising income and an as yet re- markably low per capita consumption-augurs well for their continued growth.

THE DOMESTIC TOY INDUSTRY William D. Schwartz 45

The major toy manufacturers should continue to expand substantially faster than the rapidly growing toy industry because of their managerial and financial strength. The sharp rise in disposable personal income, the majors' ability to capture a growing share of disposable personal income by means of heavy promotional programs, and the majors' ability to control their channels of distribution have all contributed to this rapid growth. Smaller firms should have an increasingly hard struggle to survive against these majors as the dramatic industry shakeout continues. The majors should be able to grow at least 10-15% annually as the toy industry continues its 7-10% annual expansion.

MACHINE TOOL INDUSTRY John J. Mackin 53

At present, the machine tool industry is plagued with declining orders. While orders, on an absolute basis, continue to flow in at nearly all-time high rates, they fall significantly short of the peak production rates to which builders have so assiduously expanded over the last few years. This imbalance between orders and shipments raises questions as to the industry's ability to maintain production rates throughout 1969. While the near term picture is somewhat clouded, the long term outlook, particularly for numerical control machinery, remains bright.

ACCOUNTING CHANGES AND EARNINGS Frank T. Weston & Sidney Davidson 59

The impact of accounting changes on the reporting of corporate earnings is recognized by analysts, corporate managements and accountants. The Account- ing Principles Board of the American Institute of Certified Public Accountants continues its active program towards improvements in accounting prin-



ciples and in financial statement disclosures. The discussions at a workshop at the annual conference of the Financial Analysts Federation in Boston on May 8 on the question of what accounting changes will do to earnings reflect the continuing develop- ments in these areas. The various projects on which the Accounting Principles Board is currently work- ing, together with an indication of the time schedule under which these projects may be expected to be completed, are also of interest. Financial analysts have a particular interest in the activities of the Accounting Principles Board and in the improvement of the end product of the financial accounting process. Effective cooperation between analysts and accountants can greatly aid in progress in these areas.

HAVE WE SOLVED THE DILUTION PROBLEM? Sidney M. Leveson 69

It is widely recognized that future equity dilution from outstanding convertible bonds and preferred stock, warrants and options can reduce earnings per share. The Accounting Principles Board has recommended that current earnings be reported both before and after dilution. However, this often understates the effect of dilution. For a growing firm, the per- centage effect of dilution will be higher at higher future earnings rates, and such higher future earnings may be necessary to justify the current stock price. An alternative reporting method is proposed, to make the reader of financial statements aware of this effect.

NEW INTERNATIONAL MONETARY SYSTEM Ernest W. Luther 73

The international monetary system organized at Bretton Woods in 1944 is facing its "moment of truth." The evidence is in the devaluation of sterling, in the abandonment under emergency conditions of the London Gold Pool last March, in the culmination of efforts initiated several years ago to create a new international reserve facility, in the breaking of all domestic ties between gold and the dollar, in the im- position over half a dozen years of a multitude of restrictions on international dollar transactions. The threat is international monetary collapse, world-wide recession, and a retreat into isolationism and cur- rency restrictions reminiscent of the 'thirties. The hope is that present difficulties c an be resolved through restoration of U. S. payments equilibrium, a return of dollar confidence, and basis reform of the international monetary system.

MORTGAGE DEMANDS AND SUPPLIES Alan R. Winger 77

Long-term forecasting in the nation's residential mortgage market requires assumptions about certain "crucial relationships" and "orders of magnitude." When these elements are made explicit, a basis for reconciling differences in the conclusions of "experts" is established. When these elements are examined as they are expected to come into play over the next decade, the author finds himself included among that group of analysts who believe that housing credit will not be so easily obtained during these years. Market pressures are forecast that will keep residential mortgage rates at a relatively high level over most of this period.

COUPON BOND PRICE FLUCTUATIONS Richard 1. Johannesen, Jr. 89

This study of the price performance of seasoned corporate bond issues with various coupons in each of the bull and bear bond markets since 1957, reveals a rational repetitive pattern of relative price be- havior. The widest price fluctuations in both bull and bear markets are to be found in low coupon issues selling at the deepest discounts. In contrast, higher coupon, higher priced issues were much more re- tricted in their price swings. High coupons are of great value in a declining bond market and low coupons are best in a bull market. The findings of the study suggest various investment applications to the bond portfolio manager depending on the outlook for interest rates.

RISK ESTIMATES Jack L. Treynor, William W. Priest, Jr. Lawrence Fisher & Catherine A. Higgins 93

The paper reviews the Sharpe Diagonal Model, according to which the return on a risky security is viewed as being subject to two sources of risk-(1) market risk and (2) specific risk. It suggests a way of estimating the magnitude of risk from these two sources under the assumption that its basic risk character is changing slowly, if at all. Risk estimates obtained in this way are applied to the problem of estimating the risk character of an actual portfolio, given a knowledge of its composition.

GROWTH STOCKS: A NOTE Nicholas Molodovsky 103

This "Note on a Pitfall" illustrates the difficulties which frequently confront analysts and investors in identifying growth stocks. It reviews the subsequent fate of a stock recommended for purchase by two distinguished analysts and a widely respected Invest- ment Review. The recommendation by the analysts was made at the beginning of June 1960. In the course of that month the stock advanced nearly 30%o reaching an all-time high. It soon collapsed, however. Over the following 21/2 years it declined, almost with- out interruption, from 80 to approximately 10. The Investment Survey staunchly continued to advise holding the stock all the way from 80 to 16. The author draws an investment moral from these hap- penings.

THE GROWTH RATE APPRAISER Charles H. Jones, Jr. 109

For a number of years the price-future earnings ratio has been used as a tool in judging relative values among common stocks having different rates of growth. In this article a ramification of the "years to earn price" concept has been integrated with another device designed to improve valuations by com- pensating for prevailing long-term interest rates. When applied to electric utility common stocks, the two mechanisms afford a logical method of measuring the growth rate anticipated by the market place itself for an individual utility's future per share earnings trend. Comparison of the market's appraisal of future growth against reliable analytical projections should assist equity managers in reaching decisions involving portfolio changes.



FISCAL USE AND FINANCIAL REPORTING Donald L. Richard 113

Financial analysts show a high level of interest in the investment credit. A random sampling found the majority of financial analysts favor the fiscal use of the investment credit, but are equally divided on whether it should be used on a permanent level, or adjusted, suspended, and restored as needed. In financial reporting they stress the need for uniform- ity but among the possible treatments prefer the "deferred" method. Financial analysts are seen to be in a more objective position and should individually and through their appropriate committees be important contributors to tax policy and financial reporting policy regarding the investment credit.

PERFORMANCE INVESTING Charles D. Ellis 117

Performance investment techniques have become so popular in recent years that the unusually high profits produced by these methods may fade. The results of performance success may prevent continued superior results. This article explains how this could happen, particularly for the individual portfolio. The discussion is intentionally provocative in hopes of stimulating discussion and consideration of the con- sequences.

MEASURING PERFORMANCE OF EQUITI ES Edward A. Fox 121

Large corporations such as Mobil Oil have created multiple Trusteeships for the investment of equity pension fund assets. Since it is necessary to accu- rately measure the investment performance of the Trustees, and to have a fair basis for comparison of performance, Mobil has created a computerized method of comparing a Trustee's rate of return on a time and dollar weighted basis against a hypothetical fund similarly constructed. Inputs are based on the Standard & Poor's 500 Stock Index. Additionally, the program compares each individual stock selection against hypothetical alternatives to determine the strength and weaknesses of the investment manager and to determine the reasons for the recorded performance.

YIELD-RISK PERFORMANCE MEASUREMENTS Robert M. Soldofsky 130

The ownership of common stock carries not only the prospect of more income but also includes a larger element of risk than other types of securities. This theme is as old as the stock market. The inten- sity of the interest in the problems of measuring the rate of return and the risk for common stock portfolios has been increasing for the past decade or more. The concern is to measure yield and risk much more precisely than has been done in the past; some of the reported work fully merits the accolade of "breakthrough." Articles reporting such endeavors have appeared in the Financial Analysts Journal, Journal of Finance, American Economic Review and in other publications. The most important develop-

ment in the securities profession in the 1970's may well be a consensus on the way to measure both yield and risk. Efforts undoubtedly will be made to develop one figure that relates both yield and risk into a single measurement of performance. Clearly, yield- risk measurements of performance that are on the horizon and the new single measurements that may be developed will provide a very significant stimulant for the improvement of both security analysis and portfolio management.

VENTURE CAPITAL FINANCING William Rotch 141

Providing venture capital to emerging enterprises has always been risky business. In this article the published statements of eight venture capital firms, covering the investment of around $165 million in 368 situations are analyzed to show that these firms lost substantial amounts in around a third of their investments and that an average of around six to seven years was required to mature the investments. Given this slow maturing process and the indicated pattern of losses, the key to success appears to lie in the selection and development of situations which will substantially appreciate in value. The article also shows how much gain would have to be realized on the average, the reasons why small venture capital firms have a hard time, and the nature of the challenge faced by the venture capitalist.

MODELS FOR CALL OPTION DECISIONS Jerome Bracken 149

Models are given for valuation of call options. First, the problem of deciding whether or not to purchase a call at an offered price is considered. Second, the problem of managing a call already owned with respect to holding it, exercising it, or selling it is treated. Variations of the same basic procedure are used in solving the two kinds of problems. Examples are given to illustrate the use of the models. Finally, assessment of a subjective probability distribution on the maximum price of a stock is discussed.

THE GERMAN STOCK MARKET James C. Baker 153

This article is concerned with the secondary share market of one member nation of the European Eco- nomic Community, West Germany, and an analysis of six major operating problems existing in that market. These problems are:

1) conflicting techniques of trading; 2) practice of settlement and delivery; 3) investor attitudes; 4) shareownership in Germany; 5) lack of proper accounting and security

analysis; 6) lack of a national stock market.

These problems are analyzed and observations are made, based on a four-year research study by the author of the German securities exchange system, which lead to implications about the attempt by the EEC to create a single European capital market.

5 Reprints of articles published in this issue are available in any For price schedule, please inquire at the offices of the Journal, Reprints quantity until the end of September 1968. Supply will be limited Room 704, 477 Madison Avenue, New York, N. Y. 10022. Tele-

thereafter. phone (212) 758-5252.



We're rworking o double our earnings per share within 3 years and we'vejiust taken a big stepfJorward! Write for'A Big Step;' our 1968-1st half report to shareholders.

U.S. Industres, Inc. uccessful people united for greater growth.

250 Park Avenue, New York, N.Y. 10017



Financial Analysts Federation

OFFICERS 1968 - 1969

GEORGE S. BISSELL, C.F.A. President FRANIK E. BLOCK, C.F.A. Executive Vice President C. REED PARIKER, C.F.A. Treasurer GEORGE M. HANSEN, C.F.A. Executive Secretary

VICE PRESIDENTS-1967-1968 WILLIAM M. MATTHEWS, JR., Atlanta GENE L. GUSTAFSON, Austin-San Antonio JOSEPH W. SENER, JR., Baltimore RICHARD L. BOWSER, Boston C. REED PARKER, C.F.A., Chicago HARRY ROSSI, Cincinnati LESTER T. MILLER, C.F.A., Cleveland RICHARD BACI(US, C.F.A., Columbus GERALD L. RAY, Dallas ERIK S. TAYLOR, Deniver JAMES D. KEMPiKES, Des Moines FRANK W. HAUSMANN, JR., C.F.A., Detroit HAROLD E. BIGLER, JR., Hartford JAMES L. BAYLESS, Houston MERLE F. I(UHLMAN, C.F.A., Indianapolis FONTAINE LEMAISTRE, III, C.F.A., Jacksonville CJIARLES A. DUBOC, I(ansas City KENNETH E. GERHARDT, C.F.A., Los Angeles RICHARD G. JACOBUS, C.F.A., Milwaukee CARL H. OTTO, Montreal DAVID STEINE, Nashville GEORGE S. DINWIDDIE, New Orleans JANE L. BRETT (MRS.), New York WILLIAM C. BEQUETTE, Oklahoma WILLIAM W. HILL, C.F.A., Omaha-Lincoln PAUL F. MILLER, JR., C.F.A., Philadelphia JOHN R. AAKER, Phoenix WATSON C. MARSHALL, C.F.A., Pittsburgh RALPH L. FLETCHER, JR., C.F.A., Providence CHARLES H. WHEELER, IlIl, C.F.A., Richmond THOMAS B. BROWN, C.F.A., Rochester R. W. M. KOHLSDORF, C.F.A., St. Louis GLENN E. ZICIK, San Diego JAMES R. VERTIN, C.F.A., San Francisco JERRY A. BOHLAND, Toledo JOHN F. G. SMELE, C.F.A., Toronto GERALD R. DIRI(S, C.F.A., Twin Cities MICHAEL M. RYAN, Vancouver CORNELIUS A. WOOD, JR., Washington JOHN S. SIVERTS, Wilmington GARY N. COOPLAND, Winnipeg

BOARD OF DIRECTORS-1968-1969 GEORGE S. BISSELL. C.F.A., Chairman CARL L. A. BECIKERS, C.F.A. CHARLES N. BERENTS, C.F.A. FRANI( E. BLOCI(, C.F.A. PHILIP P. BROOI(S, JR., C.F.A. M. HARVEY EARP, C.F.A. B. PAUL JONES, C.F.A. THOMAS H. LENAGH, C.F.A. ROBERT T. MORGAN, C.F.A. C. REED PARKER, C.F.A. ROBERT H. PERRY, C.F.A. THOMAS C. PRYOR SEMMES G. WALSH, C.F.A. DAVID G. WATTERSON, C.F.A., ex officio GEORGE M. HANSEN, C.F.A., Secretary to the Board

COMMITTEE CHAIRMEN - 1968-1969 GEORGE H. NORTON, JR., C.F.A. Admissionis PHILIP P. BROOI(S, JR., C.F.A. Articles & By-Laws ROBERT H. PERRY, C.F.A. Awards ROBERT T. MORGAN, C.F.A. Conferences B. V. WRIGHT, JR., C.F.A. Corporate Information WALTER D. SILCOX, C.F.A. Education DAVID NORR, C.F.A. Finiancial Accounting Policy THOMAS H. LENAGH, C.F.A. Government Relations WALTER P. STERN, C.F.A.

liternationial Analysts Relations FRANK E. BLOCIK, C.F.A. Policy & Planning CARL L. A. BECIKERS, C.F.A. Professional Ethics

DEPARTMENT CHAIRMEN - 1968-1969 DAVID S. LOVELAND, C.F.A. Directory NICHOLAS MOLODOVSKY, C.F.A.

Finanicial Analysts Journal JAMES R. VERTIN, C.F.A. Finanicial Analysts Seminar FRANIK T. PARRISH, JR., C.F.A.

Inivestmenit Management Workshop

INSTITUTE OF CHARTERED FINANCIAL ANALYSTS DAVID G. WATTERSON, C.F.A. President

JOHN STEVENSON, C.F.A., Salomon Brothers & Hutzler, New York . . Publisher Emeritus

PIERRE R. BRETEY, Hayden, Stone Incorporated, New York ..... . Editor Emeritus

PUBLISHER & EDITOR

NICHOLAS MOLODOVSKY, C.F.A. White, Weld & Co., New York

ASSOCIATE EDITORS

BARTON M. BIGGS IRVING KAHN, C.F.A. Fairfield Partners Abraham & Co.

Greenwich New York

FRANK E. BLOCK, C.F.A. RICHARD W. LAMBOURNE, C.F.A. The Citizens & Southern National Bank Insurance Securities Incorporated

Atlanta San Francisco

JOHN R. BURLEIGH, Jr. FRANK C. McLAUGHLIN Chemical Bank New York Trust Co. Lionel D. Edie & Company, Inc.

New York New York

JAMES F. COLE EDMUND A. MENNIS, C.F.A. Elliot & Page Limited Republic National Bank

Toronto Dallas

ROBERT I. CUMMIN ROBERT D. MILNE, C.F.A. Laidlaw & Co. Boyd, Watterson & Co.

New York Cleveland

M. HARVEY EARP, C.F.A. JAMES R. MORSE Burnham and Company White, Weld & Co.

Dallas New York

CHARLES D. ELLIS STEPHEN B. PACKER Donaldson, Lufkin & Jenrette, Inc. Mobil Oil Corporation

New York New York

JOHN C. FOUNTAIN C. REED PARKER, C.F.A. White, Weld & Co. Duff, Anderson & Clark

New York Chicago

DAVID L. GROVE GARY M. PENDY International Business Machines Eastman Dillon, Union Securities & Co.

New York New York

JULIAN GUMPERZ JOHN P. SHELTON Basic Economic Appraisals, Inc. University of California

New York Los Angeles

FRANK W. HAUSMANN, Jr., C.F.A. BERYL W. SPRINKEL, C.F.A. National Bank of Detroit Harris Trust and Savings Bank

Detroit Chicago

SIDNEY HOMER ADOLPHE J. WARNER, C.F.A. Salomon Brothers & Hutzler Smith, Barney & Company, Inc.

New York New York

GODFREY G. HOWARD PETER F. WAY, C.F.A. The Boston Company, Inc. First National City Bank

Boston New York

PATRICK J. JAMES, C.F.A. FRANK T. WESTON, C.P.A. Chase Manhattan Bank Arthur Young & Company

New York New York

Assistant to the Publisher: Eunice V. Esty

BUSINESS MANAGER: George M. Hansen, C.F.A. PRODUCTION MANAGER: Irving Stachel

ADVERTISING MANAGER: Katherine Sheppard

477 Madison Avenue, New York, N. Y. 10022

FINANCIAL ANALYSTS JOURNAL / SEPTEMBER-OCTOBER 1968 7



What's new at Warner & Swasey

Every one of these products has been added to the Warner & Swasey line within the past five years. Many are already contributing to the record sales and profits of Warner & Swasey; the others, the newest, will soon add their substantial share also.

Beller Steel Company Lima coil conversion of Canada - equipment.

logging machinery.

Balas collets and tools. Hydraulic cranes. Haskell-Dawes Wiedemann tape controlled heavy duty twisters turret presses and _g_ _S- --E- X EXt;t;X; C tx t-

i{04;for cordage and wire. mechanical testing machines.

Manchester cutoff and New telescoping boom Machines which cut, trim, New scientific instruments grooving tools. excavating machines. de-bark trees for such as this Rapid

is V I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~*8

za S .u'.Di;..,,.. han'...,.~~~~~~~~~~~~~~~~~~~~~~......

Material handling loader Electronic readout device Numerically controlled Lahr triple-spindle tape. and lift truck. which monitors a machine's positioning table. controlled gun drill.

-E-operation during use.----------. ,

Three new sizes of Permanent tooling concept Higher production Automatic machine automatic turret lathes. for numerically controlled textile Pin Drafter. cleaning system for

turret lathes. textile Pin Drafter.

These 18 additions or major improvements are typical of what is going on at Warner & Swasey today. For more information about any of them, and what they signify, write Warner & Swasey, 5701 Carnegie Avenue, Cleveland, Ohio 44103.

YOU CAN PRODUCE IT BETTER, FASTER, FOR LESS WITH WARNER & SWASEY MACHINE TOOLS, TEXTILE MACHINERY, CONSTRUCTION EQUIPMENT



Communications technology will soon give to man, no matter where he is, the power of instant interaction with a computer. Reshaping concepts of time and space In business management .

To exploit this power, Standard Oil of California uses the Bell System information network to link its refinery, research, and administrative operations to a giant computer.

No one knows more about moving information than the people who run the world's largest information network.

Bell System-the information movers (g ATd&T



Consol idated talks.

rubbish.

We're telling industry how clean-burning natural gas helps get rid CONSOLIDATED of solid, liquid and gaseous waste.. .the kinds of waste industry NATURAL GAS *U must dispose of every day. Natural gas incineration does it COMPANY efficiently, economically, with no smoke or odor. Gas systems eliminate the hauling of solid waste to dumps, the disposing of The EastOhio GasCompany,Cleveland,Ohio liquid waste into streams, and the dumping of toxic and dirty The Peoples Natural Gas Company, Pittsburgh, Pa.

fumes into the atmosphere. Increasing industrial interest in Consolidated Gas Supply Corp., Clarksburg, W.Va. The River Gas Company, Marietta, Ohio

waste disposal by natural gas is another growth prospect for CNG. Lake Shore Pipe Line Co., Cleveland, Ohio



ELECTRONICS: flashing safety signals to warn of crane overloads. The idea turned us on. Cranes - from small ones up to giants that tower 20 stories or more in the air - face the common danger of overloads. c Turned on by this safety problem, Eaton Yale & Towne technologists utilized electronic load cells to create a unique load sensing computer. This computer constantly monitors the crane load and the boom angle, flashes red danger signals and rings warning bells when critical load limits are approached. Can even be pro- grammed to stop the crane's operation. o In the materials handling field, our technologists have come up with other unusual electronic load cell devices that instantly report

the weight of loads lifted by fork lift trucks. Eliminate separate weighing. Warn of overloading. o Practical application of advanced technology is what Eaton Yale & Towne engineers do best. Special emphasis is given to the dynamics of control systems, materials movement, transportation, metal- lurgy, construction, security systems, and to products for your comfort, con- venience and safety. o For more about Eaton Yale & Towne, write today for our 28-page book, "PANORAMA."

.. .........i -

EAT4DN YAL.E &

Applying advanced technology TONV _

to bring you exciting new products IC

10 0 E R IEVI [W PLAZA * CL EVE LAN Op0H I 44114



~~~~~~~~~~~~~~~~-..

IS THE AMERICANA DREAM?'

The rags-to-riches dream-the Horatio Alger success story-does it still have a place in American business life today?

After all, the world has changed since single-minded drive alone could carry a man from peddler to company president. You need other things now.

Like a broader, deeper education. We go along with that idea. In fact Great Northern

is financing newsboy scholarships at six of the country's finest prep schools as an important-but often missing-basic training for the college scholarships that many of our newsprint customers offer.

What we don't go along with is-the attitude that American business success has become a formula that you can program on a computer. At Great Northern we still believe that individual values, individual initiative and individual judgement can lbold their own against the impersonal computer or committee.

In a society where the tumult and the shouting have recently placed so much emphasis on the negative, we find keen satisfaction in the positive approach expressed so frequently and so well by today's young corporate executives. We believe that what they're saying points toward a greater challenge for the individual. And a greater opportunity. Certainly this is the case with Great Northern.

American business is only 32 years away from the twenty-first century. It will be dramatically different in many respects. But then, as now, we believe individuals will still program the computers and act on the results.

And newsboys will still be a good source for company presidents.



We also mnake printing papers for magazines, catalogs, paperback books, telephone directories and GREAT NORTHERN

special supplements, kratt linorboard and medium for the packaging industry and plywood for construction. P E R C OJ M P 4 NJ Y



_ _10ff > t, ONE OF 1200 CHAMPLIN SERVICE STATIONS

CELANESE IS ACTIVE IN DRILLING AND O$JSHORE EXPLORATION

CHAMPLIN REFINERY, ENID, OKLA. AND (BELOW) PONTIAC RIEFINERT, CORPUS CHRISTI, VEX.

Celanese is ingas and oil

exploration, drilling, refining and marketing In 1964, Celanese entered the petroleum business through the acquisition of Champlin Petroleum Company of Fort Worth, Texas. In 1967, Celanese acquired the 55,000 barrel a day Pontiac refinery, which is managed by Champlin.

Champlin and Pontiac now have a combined refining capacity of 89,000 barrels a day. Champlin operates 1200 service stations and bulk depots in the Grcat Plains arca. These faCilitics are

backed up with an aggressive exploration and development program and a network of pipeline and other distribution facilities.

Champlin fits well into the Celanese program for long term growth and diversification. It is a sound, well- managed, profitable operation in its own right. Its exploration activities and rescrves provide a base for Celanese' future hydrocarbon requirements. And

its substantial refining capacity pro- vides the corporation's chemical company with additional product lines and future feedstock options.

Celanese currently operates more than 100 plants in 27 countries, plastics, fibers, plastics, chem- icals, coatings and forest products as wcll as petroleum. CELANESE



We cant c

You'd thi'nk that an outfit that helped put a man into space could figure out a wayfora guyto drop a few pounds. Something easy, with- out exerton and wothout desertinf desserts.

Sorry, short of sending you to the moon, even Abex can't help.

* | E

~~~~~~~But don"t go away mad, look at the fthingswe can co ntrol.

A The control of luid power for | I 111 1 I ~~~~mechanical hearts, oil wells and

! ! |

~~~~~~~~~And the control of frictio fo > e. a l I ~~~~~~fishing rods, copters and tractors.

;rz i _l I I ~~~~And the control of wear for cookware, freight cars and chemical plants.

We have a book that tells you all about it. It"s our 1967 Annual Report. It"s yours free. Just write: Abex Corporation, 530 Fifth Ave.,

- I NewYork 10036. X

(Abtw meanscontrolsl |



a a a 6 gg~~~~~~~~~~~~~~~~~A

For good reason. The Institutional Re- search Department at H. Hentz & Co. makes a special effort of looking for situations that promise exceptional potential.

At Hentz the emphasis is on interviewing corporate management rather than relying on secondary sources. Our analysts favor concise, timely reports rather than voluminous studies. Our aim is to avoid delays that could be costly

to investment performance. Of equal impor- tance to clients, we strive to maintain a continuing liaison with companies recommended.

If you feel this approach can work in your behalf, please call our Institutional Research Department Manager, Mr. George A. Kuhn- reich at (212) 797-8780. He will also be glad to introduce you to our alert Order and Block Trading Departments.

H. Hentz &Co. MEMBERS NEW YORK STOCK EXCHANGE

72 Wall Street, New York * Offices in Principal Cities Our 1 12th Year of Service

.1



Ifyoutink you now a about

Curtiss-Wriglht because

you remember

Pan Am s ankee Clipper...

tink agrain.

In the Spring of 1939, Pan American's its resources, skills and experience to nents for jetliners such as the 737 and Yankee Clipper inaugurated transatlantic technological achievement, but on an DC-9, as well as for the 747 and C-5 scheduled air service with two runs, ever broadening scale. For example, jumbo jets of tomorrow. New York to London and New York to power to turn the giant blades of the Curtiss-Wright today is a customer

Masells fogn h istlnsi h tro-arrig"Ciok helcpe s oine ranzto opn chai ofitrotnna omeca i ovydbyfu eaaetasisin ihnwotoks e oetasn trvlta a o suesc:eak- md:yCris-rgt h opex nwpromne abepootosi_h_ota er. erhuig o hs rnmsin

Ths aed"ligBot"wre aepoucdo u erial onrle poee y1-yidrCrisWih aemcie htoeae32 differn I Cyln nins hnth ihisti rcsintos

th_ol,ad_h is ccsil o CutsWigh oay is ascoti- URTS infih ear.uig oartasotporss,spl- S4IIHWo.,g.NwJ'e Cuts-Wih toa ssilapyn_n ajrarrm nniecmo

FaIliie lcth e d Sp in : Cofd1e39, E.PatAersonands WoRidgesore, N. ills B alo, Hempseadiande Lon slndeCty,N.Y fo Cleetland,s Ouhi as Tootoe C37an.



Notice: Thsconr

is moving its placeo business. ,BI.

Any day now, you'll be setting up offices in Ashland, Ky.

Or Roanoke, Wheeling, Can- ton, Fort Wayne, Kingsport. Or Three Rivers.

You're laughing? OK. But when you're through, take a look at the map.

Smack in between the East and Midwest's traditional business centers is an area now getting known as the "American Ruhr."

It runs from Michigan, through Indiana, Ohio, West Virginia, Vir-

ginia, Kentucky, and into Tennes- see.

And we think it's the area for American business growth.

We sell our electricity here. So we're not talking from a crystal ball. We're talking from an inti- mate knowledge of the trends.

Example: 2,350 industries have moved in or expanded within the past five years.

Example: The coal industry you thought was petering out has never been healthier.

Example: The mountain ranges which have kept West Virginia, and Eastern Kentucky from achiev- ing their potential are being cut down to size by the interstate highway system.

Example: Our kilowatt-hour

output-a pretty reliable index of economic health-has doubled in just over nine years.

Example: We expect to do even better in the next nine years.

In fact, we're getting ready for it now. By spending $1 billion on new facilities in the next 3 years.

We don't know of another electric utility investing that much in the future of its area.

But then, we don't know of another area with that much of a future.

NMERICAN ELECTRIC POWER SYSTEM APPALACHIANPOWERCO -INDIANA & MICHIGANELECTRICCO. KENRTUCKrPOWERCO. KIN6SPORT POWER CO. OHIO POWER CO. WHEElING E IECTRIC CO.



A Bedtime 8tof/

m nce upon a time, away out in Omaha (that's in Nebraska), there was a teeny, tiny, little company that sold nothing but

natural gas. And so, the teeny, tiny, little company was called Northern Natural Gas Company. It was a very nice little company and everybody liked it very, very much. So everybody bought lots and lots of natural gas from the nice little company. And the nice little natural gas company grew. And grew. And grew. And grew. Until it became a nice big natural gas company. Then it expanded. And expanded some more. And even more, until today it's a big, important company selling not only natural gas (and lots of it), but everything from anti-freeze to plastics and has a plant and equipment investment of more than one billion dollars. But even so, not everything has changed. It's still a nice company and its name is still Northern Natural Gas.

It's nfice to be important, but it's more important to be nice.

If you'd like to learn more about a little company that made good (and is doing better every day), send for more fascinating information today. It'll give you something to read in bed.

NJ Northern Natural Gas Company Home Of fice. Omaha,N.Oraka



Domestic crude oil

highest in Marathon Oil's

80 year history.

Earnings set new record

in

first half

_ ~~~~~~~~~~~~~~~~~- '

|~~~

~HON MARATHON OIL COMPANJY MARATHON ~~~FINOLAY OHIO

Rising volumes of crude oil from Alaska's Cook Inlet contributed heavily to a 16% gain in Marathon's North American production. By the end of June, our Alaskan volume had reached about 29,000 barrels per day. Earnings set a new first-half record, up 13.2%. Our domestic refinery runs were 16.4% ahead of mid-year 1967, and sales of refined products in the U. S. advanced 9.7% to a new first-half high. Outlook for the second half: continued growth in every area of Marathon's business.

First Six Months Financial 1968 1967 Total revenues ......... ................... $379,525,000 $331,770.000 Net income ...... $ 39,740,000 $ 35,095,000 Net income per share ....................... S 1.34 $ 1.20

Operating-U.S. and Canada Net crude oil and natural gas liquids produced-

barrels per day .147,600 127,200 Natural gas produced-thousand cubic feet per day 431,300 402,100 Crude oil refined-barrels per day .159,900 137,400 Refined products sold-barrels per day .187,100 170,500

Operating-Outside North America Libyan crude oil produced (tanker liftings)-

barrels per day .223,900 191,000 Crude oil refined-barrels per day .24,300 -

Refined products sold-barrels per day .31,100 23,500

MOVING AHEAD-IN EXPLORATION * PRODUCTION -TRANSPORTATION - REFINING * MARKETING * RESEARCH



Next summer, the petroleum industry will be2POO feetoser toaseaof o. The United States' known oil reserves will hold out for about 15 years. By that time we'll have to make some pretty big advances in discovery and production techniques if we're going to keep burning oil. One of the answers is the Beaver

Mark IV workboat . . . designed and built by our Ocean Systems Operations. Beaver is a workboat

that really works. And we'll put it to work next summer at the bottom of the ocean. Its two arms can lift and shift

heavy objects. A special compartment gives divers the freedom to come and go. Beaver can go down to 2,000 feet-about twice as deep as divers have ever worked before. And stay down for 12 hours at a time.

Because Beaver will help companies drill for oil, or lay pipelines, or bring up minerals from the ocean's floor, we expect to sell and lease a lot of these vehicles in the future. Small wonder that the financial

community refers to Oceanography as one of the great emerging industries.

NAinedcanRodiweil This content downloaded from 62.122.73.122 on Tue, 10 Jun 2014 06:40:22 AM

All use subject to JSTOR Terms and Conditions


POCKET-ROCKER

____I______l__ Opportunity: 50 million teenagers l

l ~~~~~want to take their kind of music

l alsli)l | ~to parties, the beach, and other

- < ^ l full-fidelity record so small, 25 or Z S ~~~~~50 fit easily into a pocket, purse

_ ~~~~~~~or beach bag. We call them HP's-Hip-Pocket records. And _ ~~~~~~~~~~they play on Philco-Ford's new mini radio/record player,

= B_ _ ~~~~~~~~~that weighs less than 2 pounds! And plays HP's, LP's and ^_^ ~~~~~~~~~~~45's. Growth potential: Last year, teens spent $177,500,000

{_ - ^ =~~~~~~~_ ~on their music. And there are more teenagers every year! ^ > > _ t O~~~~~~~~ Consumer electronics. Just one of Ford Motor Company's

_ ~~~~~~~~~~growing interests. Others: Education. Space. World nutrition.

g~~~~~~~~~~L Ford is where what's happening ..,. happens.

... has a better idea .......... / tor the teen musc ma.....

/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~w



In New Jersey, auto makers work

Each one of America's ih agreats "Big Three" auto w t a spark manufacturers has found for growth... a stimulating climate for growth in New Jersey. The Garden State's Public Service Industrial Corridor boasts E e ti n a o p n carsseblplatsElectric and Gas Company car assembly plants (including the world's largest), plus divisions

This IS only part of New that turn out automotive Jersey's amazing growth components and story. Eighty-six of accessories. America's 100 largest industrial firms have operations here. And in the last year alone, 400 major firms began operations or expanded facilities in the Public Service area, creating more than 24,000 new jobs.

This kind of growth _

requires energy, and it keeps us on the go to supply it. Within the past ten years, we have invested almost $1.4 billion in new and improved facilities. And our construction program over the next three years is currently projected at another $670 million.

The story of a progressive company serving a dynamic state is of interest to everyone concerned with exciting growth. Our brand new booklet about New Jersey has all the facts. Return the coupon ................................ for your free copy. Public Service Electric and Gas Company

Box HFA, 80 Park Place Newark, New Jersey 07101

ubhc ServiceElctric :Please send me a free illustrated copy of Publi'c Serv 'ce ectr 'c . "New Jersey-Land of Amazing Advantages"

and Gas Company . .Name.. ... .......... . :Firm.:

Street... : *City, State, Zip



Wsa~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~j small wovrld.;

Rohr's massive tracking antennas for ground terminals help bring nations closer together through modern satellite communications. To date we have designed, built, fabricated and erected 13 far-flung tracking antennas around the world-including several in under-developed countries. That's more than any other company anywhere. Rohr has become widely known for the precision performance, lower maintenance and proven reliability of its large, steer- able antennas. And because of our fully-integrated antenna capability, we deliver on time within budget. For the full antenna story, contact our marketing manager, Rohr Antenna Division, Department 92, Chula Vista, California.

ANTENNA CX DOIVISION

Dedicated to the Pursuit of Excellence



Specialization mlakes a great bank

gsreater. We at Chemical New York think we have some of the best all-round banking men in the business.

But today it's almost impossible for any one banker to know everything about the special financing problems of every industry. So in order to give better service in certain key industries where changing regulations, technologies and credit prac- tices have become increasingly complex, Chemical has specialized.

Now, supplementing the work of our general banking contact officers throughout the country, we have a Special Industries Division. It consists of four groups serving all industries that can be listed in these categories: Natural Resources, Public Util- ities,Transportation and Communications, and Aerospace and Electronics. By enlarging our capabilities in these growth industries,wehave simply strength- ened our overall ability to serve the financing needs of our clients.

It's just Chemical's way of msaking a great bank greater.

Chemical NewYork CH EM ICAL BAN K N EW YORK TRUST COM PANY 20 Pine Street, New York, N.Y. 10015



Expanding Horizons for Midland - Ross..

FINNISH PAPER, AUSTRALIAN PELLETS AND TURKISH METAL PART

Throughout Scandinavia, paper mills oper- Heat-treating furnaces installed in a Tasmanian low-grade iron ore is concen- ate Midland-Ross processing and drying Turkish metalworking plant were built in trated and pelletized in Midland-Ross fur- machinerymanufacturedbyRaumaRepola France by Stein-Surface S.A., a jointly naces built with the assistance of Woodall- Oy, an affiliate of our Ross Engineering owned company of Stein et Roubaix and Duckham, Ltd., an affiliate of our Surface Division. Midland-Ross. Combustion Division.

Growing demand worldwide for paper and pulp . .. discovery in farther corners of the world of iron ore suitable for pelletizing . . . increased industrialization by all nations . . . these and other

activities are expanding world markets for the products, equipment, and services of the

20 divisions of Midland-Ross.

Through equity participation and licensing agreements, Midland-Ross has 48 associates in

20 countries of Latin America, Europe, Africa, India, and the Far East. In addition, Midland-Ross

International Corporation will further increase the volume of our activities overseas.

Write for a copy of "lProfile of Growth." It fully describes our products, markets, and facilities.

MIDLAND-ROSS CORPORATION = 55 PUBLIC SQiUARE. CLEVELAND, OHIO 44113

DIVISIONS -Capitol Foundry - Industrial Castings * I-R-C Fibers * Janitrol Aero * Janitrol * Midland Frame * National Castings - Nelson Metal Products * Power Controls -R-P-C Ross Engineering - Russell & Stoll - Steel City - Surface Combustion - Unitcast - Waldron-Hartig-* Webster Engineering Oi In Canada. Power Controls * Ross of Canada - Surface Combustion



Dana believes in pufing all_ its eggs in one basket.

A 192 billion dollar basket.

Here's why Dana is putting everything its got into the $192 billion-and growing-transportation basket.

The U.S. auto population alone has tripled in 20 years. Right now it's growing eight times faster than the human population.

Studies indicate that by the early seventies transportation will account for 25 percent of the Gross National Product-about $250 billion.

Dana, with a total and diverse involvement in transportation, has a mighty good looking future in an atmosphere like this. After all, we are the largest

independent supplier of transportation components in the world.

For more information, send for a copy of our annual report. Write: Office of the President, Dana Corpora- tion, Toledo, Ohio 43601.

Con-Vel Parish

NA Perfect Circle Spicer Victor



The world of plastc I

is just a part of our gro ng

diversifty.

Itd one more reason our gtcmnwhnasales are apprpaching 42 billion a year.

ThENNE CEMe is TeNNlEE

TPAnKAGIN CORPORATION Otnrpfrrinf AMERICA O KERN r COUNTYn rlAND CO. O m r J.HI.CA .GH P UREMAN FOAMOATU

A TNNECO CHEMICAL PLANT IN N.J.



Sallieigl Talo wol b h

W x .

.............i.

. a s _-:. 0 - .t! 7 S I 11 | ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.......

first to tell you.-_ *

(0 a:: i::-it; ; _ 0 o :- itT:ftEf; T?:' .....I

TRWcn be rep^lacd

Her car came from the factory with about 185 TRW parts in it. And she knows there are more in her future if she needs them; service departments everywhere are stocked with TRW engine and chassis replacement parts.

But the growing automotive replacement parts business is just one of the many ways TRW touches Sallie's life. And yours.

Your radio, your stereo and your color television depend on TRW electronic components. The jet

planes you fly in have TRW fuel pumps and turbine blades, as well as bearings and radio components.

TRW systems and services are involved in everything from sub- marines and satellites to solutions of civil problems like traffic, urban renewal, crime, air and water pollution.

TRW has grown to be a billion- dollar company with over 70,000 people in more than 250 worldwide locations. And although we're proud to be a breakthrough kind

of company, we have to admit that there are times when being replaced is a good way to get ahead.

Why not write for our latest shareholder report?

Robert A. Newman, Director of Corporate Relations & Public Affairs, TRW INC., 23555 Euclid Avenue, Cleveland, Ohio 44117.

TRWv TRW INC. (Formerly Thompson Ramo Wooldridge Inc.), Cleveland, Ohio -Balanced diversity in Electronics, Space, Aircraft, Automotive, Defense and Industrial Markets.



When we say PreSsPriCh Is ueared br tradin ,,.we mean IL

We mean it because we respond with speed and precision to institutional requirements for a broad range of securities. Our Institutional Stock and Bond Departments are staffed by professional traders whose inti-

mate market knowledge is based on close institutional relationships throughout the world. And we mean it because we don't hesitate to put our own capital on the line-now-in order to perform

major trades swiftly, smoothly, and with maximum discretion. Stocks and bonds are made to move at Pressprich. We're a professional investor's investment firm, and performance is the reason why.

WTw.; pressprich & Co. INCORPORAiD Members New York Stock Exchange

S0 PINE STREET, NEW YORK, N. Y. 1005 * (212) 422.17W

BOSTON * CHICAGO * HARTFORD * PHILADELPHIA * SAN FRANCISCO

ALBANY * DALLAS * JACKSONVILLE - MIAMI a PORTLAND, ORE.



We told our companies to

mind their own business.

And they smiled. Because our corporate philosophy is like a declaration of independence for every one of The Signal Companies. It means Garrett can concentrate on aerospace. Mack thinks about trucks. Signal Oil and Gas Company pushes ahead in petroleum. Signal Equities Company (formerly Arizona Bancorporation) watches its many interests like banking, steel and insurance. And Dunham-Bush sticks to air conditioning.

But the big corporate-type problems, like long-range financing, acquisitions and capitalization, are handled by our strong corporate management team. Strong, and versatile, because we bring executive talent up from each of the companies, rather than just impose authority down from above.

Maybe this unusual management policy of letting companies mind their own business isn't right for everyone. But from the smiling faces around here, it's obviously paying off for us...and our stockholders.

The Signal Companies S ioio Wilshire Bouievard, Los Anglesncadifornia 90017

Garretn, Mack Trucks. Signal Equities, Dyunham-Bush, Signal OBi and Gas



m; a

l -

We're one of the important forestry companies in America. We control 1,321,310 acres of

prime wood- land throughout seven

_ X~~~~S o u t h e r n states.

Yet, all our l - poutput goes

Our mobile chipmill. o n I y t o o n e company-America's second largest producer of paperboard and kraft paper, and largest producer of fibre drums. We provide a ma jor portion of the

1.7 million cords of wood this company used last year.

Actually, our name, Conti- nental Forestry Company, is a pseudonym for the Woodlands Division of Continental Can Company, Inc. Like all nineteen divisions of Continental, we run almost like an individual company. That's the Continental de- centralized management policy-move responsibility down the line.

This diversification of management responsibility helped us develop a unique systems

SALES PRE-TAX EARNINGS (IN MILLIONS OF DOLLARS) (IN MILLIONS OF DOLLARS)

13 1397 145.4 1 154 1,198 1233.. 131.0

85.2 93 1

1963 1964 1965 1966 1967 1963 1964 1965 1966 1967

Our financial progress report.

approach to business. How does it work? Look at

the record. Our sales have grown at a

rate of almost 5% a year. Yet our compounded annual earnings growth is more than double that-over 12%. Divi- dends have been increased, 662/3%, from $1.20 per share to $2 per share. And earnings increased a healthy 11% last year.

We are not content to stand on this record. We have the people, knowledge, and resources to move even further forward in packaging and other fields.

We are now searching for new areas of diversification, new challenges that will put our systems approach to even greater tests. Continental

Can Company 633 Third Ave., N.Y.. N.Y.1lW1



At last

a boo k that sh ows you how ,lm

the $67IIi11ion schiool market!

Would you invest $35 to know everything about selling a $67 billion-dollar customer. Then we'll send you everything, for 30 days free examination, in this first all-inclusive one-volume guide to "The School Market"!

You'll learn how to overcome every obstacle...use every shortcut...grasp every opportunity to get your share of this market. Hundreds of practical facts and ideas it would take you a fortune and a lifetime to track down. And it's guaran- teed: you must start on the road to profitable school selling almost immediately or it won't cost you one cent!

Selling to schools is complex and different! To sell public and parochial schools... from kindergarten to college, you have to know whom to contact.. .and when... and where. You must know adoption procedures, names and addresses of key agencies... what the latest forms look like... what schools buy ... the special language of school selling . . whether to "go direct" or use a ready made sales force.-. the differences between public and parochial school markets. "TheSchoolMarket"shows you howw!

Everything you need to know is here! You'll discover how to displace long- entrenched competition... how to get your product "specified"...how you "work the school board" to clinch your order... how to get up-to-date mailing lists. You even get a complete guide to the people who do the buying for schools at local and state levels!

The potential is enormous! Imagine what your share of this eager-to- buy market could be in the 1970's when student enrollment will rise to well over 53,000,000! The time to stake your claim to your share of this business is NOW. The way to do it is through the

only direct line to every school buyer in America -"The School Market" by William R. Nixon, formerly Vice President

-Marketing for CIT Educational Build- ings, Inc., he is now President of Educa- cational Marketing Associates, Inc.

Mail coupon nowfor 30 days' free examination No need to send money now. We'll send you "The School Market" to examine at your leisure for 30 days. Then, if you are not satisfied, simply return the book and owe nothing. If you decide to keep the book you need remit just $35 plus a small shipping charge for the first copy, and only $25 for each additional copy -a saving of 29%. Surely this compendium is so important, you'll want your key sales and marketing men in each branch or department to see it right away!

Special Time-Limit Offer Mail Coupon Within 10 Days and Receive Valuable FEDERAL AID FOR SCHOOLS WallChart FREE!

@Howard S. Rowland and Richard L. Wing

Gives the names and descriptions of programs, amounts of appropria- tions, purposes of program, who may apply, agency or foundation to contact! A perfect companion to "The School Market." Act now!

* OVERSIZE, EASY-REFERENCE FORMAT

* DELUXE r HEAVY-DUTY BINDING r

* INNER SPIRAL KEEPS PAGES FLAT

* THUMB-TAB INDEX

*MONTHLY MARKETING ACTION CHART * COMPLETEPAROCHIAL SCHOOL SECTION

* CASE STUDY OF A SALE * COMPREHENSIVE SCHOOL-NEED LISTS

* ACTUAL SAMPLES OF FORMS, EQUIPMENT LISTS, ETC.

* COMPLETE GUIDE TO BUYING PERSONNEL AND PROCEDURES

* CHARTS, TABLES, EXAMPLES, CHECKLISTS, GUIDEUNES... AND MUCH, MUCH MOREI

30-DAY FREE EXAMINATION PERIOD! I I

MAIL TO: THE MACMILLAN COMPANY, Riverside, N. J. 08075 1 Please send "The School Market" (#48962) by William R. Nixon. If I

am not completely satisfied I may return the book within 30 days AT YOUR * EXPENSE and owe nothing. If ! decide to keep it you will bill me $35.00 for my

3 first copy and only $25.00 for each additional copy (a saving of 29%) plus a small ship- I ping charge. If I enclose payment now you will pay all shipping costs. The same guar- I I antee applies and you will refund my money if I am not satisfied. I

Please send copies E I enclose $ Q Bill me 5 Bill my company In New York and New Jersey, please add sales tax. 3

I NAME TITLE ___ | I l I COMPANY I I I

ADDRESS -

CITY _ __STATE ZIP __ ..

SP-14 I L_ ____ m mmmm_______ mmmmnmmmm m_?mmm-mm m



Date post:	12-Jan-2017
Category:	Documents
Upload:	phunghuong
View:	213 times
Download:	1 times

Front Matter

Documents