Tucson Daily Citizen from Tucson, Arizona • Page 35

MONDAY, MARCH 7, A I I I PACE3S BUSINESS OUTLOOK Lot Of Money Around, But Still Not "Enough By J. A. LIVINGSTON Suddenly, money's commodity as well as a medium of The scramble for it is on. That's the shorthand explanation of the break in stock and bond prices. And no letup is in sight.

The calendar for new offerings by corporations, states and municipalities to raise money is as crowded as an airport on days of overcast. So interest rates advance, bond prices fall. Back in September, the Pennsylvania General State Authority sold $50 million in bonds at an interest cost of 3.5 per cent. Last week, this same authority paid almost 4 per cent for the same amount of money. That half-point advance in a half year represents a 14per cent increase in the cost of money.

THE HIGH COST of borrowing drove the Junior College District of St. Louis out of the market. The board of trustees refused bids on $20 million of bonds for construction. The 3.924 per cent interest cost was deemed too high. Presumably the school district will go ahead with construction.

But it might move more slowly. To that extent, demand for MUTUAL FUNDS YORK (AP)-Tht frilmriM tim. wertM by AaWi. of Security DMMCS Inc. Hfcn which Mcwrltlw cowW have awn sold (Wd) beutht Aberdeen Fd 3.20 Advltect ft M3 Affiliated Fd Am BUS Shn 4.12 4.44 Am Investors 31.13 31.83 Am Mutual 10.40 11.37 Assoc Fd Trust 1-82 2.0(1 On Business Axe-Houshton: A 7.24 10.75 PRESSURE OF PROSPERITY Incoming orders to manufacturers increase faster than shipments.

Backlogs now approach 1.6 months. 70 MANUFACTURERS'- OKDERS l.t UNRU.ID ORDERS TO SHIPMENTS 2 20- MANUFACTURERS' 1 I I I I '41 '41 '41 '45 '44 '51 '41 '42 '43 '44 '65 '44 Source: Dept. of J. brick mortar and building materials will be tamped down. Yet, there's no certainty that money will be cheaper in the near The grab for funds is dramatized by the offer of the First National City Bank to pay 5 per cent for nine-month deposits.

Promptly, the Chase Manhattan and other New York City institutions followed. Then the Franklin National Bank of Long Island, New York imaverick, topped that. It retained its 4.8 per cent on 90-day 1 deposits and went to 5.1 per cent for nine-month funds. THE IMPACT isn't strictly local. Deposits wffl be sucked out of New York savings banks and savings and loan associa- only per cent.

(Yes, and sales affected, even at the higher rate tions, which are pa; and bonds may I What will this do to residential construction? Savings institu- lions, along with insurance companies, are the main suppliers of mortgage money. If savings institutions can't meet demand, new residential construction throughout the U.S. will be cramped for funds. And it's already down. New York's 5 per cent will even reach to California SLs.

The shortage of money itself is an anomoly. Never has there been so much money around. Never have deposits been higher. But corporations, states and local; governments are all engaged in deficit financing. They need funds.

And financing has gone beyond the easy write-up stage; The Federal Reserve System can create money. It, can buy government bonds or make loans to commercial banks and so supply cbmmercial banks with reserves. Then banks can make loans, usually in the ratio of five or six dollars for each dollar of reserves. BUT THIS IS "SOUND" or feasible only when the newly created money or deposits produce additional goods and services, only when men are idle, machinery isn't fully used, and materials are going begging for buyers. But at the present time, the economy is operating near capacity.

Expansion of lending power by the Federal Reserve System increases competition for already "spoken for" manpower and materials and hence tends to be inflationary. Industrial congestion can be measured by manufacturers' backlogs. Deliveries of finished and serai-finished goods continue to fall behind orders. Backlogs have increased from 1.4 months relative to shipments in early 1964 to just about 1.6 months in January (see chart). THIS IS UNDERSTANDABLE.

Unfilled orders are secondary insurance in a congested market. If businessmen can't increase inventories, they put in orders with suppliers to guard against scarcity and higher prices. This invigorates demand for goods. And that's the current dilemma the dichotomy between Washington and Wall Street. The President is committed simul: taneously to the war and "great society" with its ever-onward upwardism.

And money markets can't handle it all. So Wall Street burps from indigestion. Bond and stock prices fall. Interest rates rise. Money, which has never been more copious, is in short supply.

Fvnd Fund Stock Boston Fund Broad St Inv 15.71 Bullock Fund li.42 Can Gen Fd J.JJ Canadian Fund 11-81 Cap Life Ins Sh 1.02 Century Shrt.Tr 12.42 Charming Funds: Balance 7 Com Stk Growth 1M4 Income Intl Grth Special Chase Fd 10.54 Chemical Fd Colonial Fund 13.43 Colonial Grth En 16.13 Commonwealth Funds: Income 1 Investmt Stock iv.oi Coruolldat Inv 1J-37 Convert Grth Corp Leaden I'-J; de Veflh Mut Ft 76.30 Decatur Income Delaware Fd Divers Gfh Stk 13.43 Divers Invstmt 1J-W Dividend Shrs 3.74 Dreyfus Fund Eaton I. Bal Eafw Stk TJ-41 Energy Fd Fid Mut Inv Co i 5.6y Mut Franklin Custodian: Utilities 7.45 Fundamtl Inv 12-54 GroUP Securities: Aerospaee-Scl IJ-JJ Common Stk 15.17 Fully Admin Growth Indust Guard Mut 26.11 Ham Fd HDA 5.80 Imperial Cap Fd Imperial Fd 5.60 Income Found J.70 Income Fd Bos Incorp Income Incorp Invest 7.53 Ind Trend Ins Bank Stk Fd 6.11 Invest Co Am 13.44 Invest Tr Bos VJ7 Investors Group Funds: Mutual Inc H-M variable Pty intereontl 7-OZ Invest Research Isfel Fuhd Inc Ivest Fund Inc 14.J4 Johnstn Mut Fd Keystone Custodian Funds: Inco Fd K-l GHh Fd K-2 Hl-Or Cm S-1 23.74 Inco Stk S-2 13-2 Growth S-3 2 2 0 LoPr Cm S-4 7.04 Intl Fund Knlckrbek Fd 7-78 Knlckrbck Gr "-M Lazard Fund 17-50 Life Ins Inv 8.02 Life Ins Stk Loom Say Can Ji.is Loom Say Mut Mass Inv Grth 10.81 Mass Inv Trust Mass Life Mutual Shrs Mutual Trust 2.88 Natlon-Wlde Sec .11.54 Natl Investors National Securities Series: Balanced 2 -'J Band Dividend "5 Preferred 7.51 incbrne Stock Growth S-37 Huebner's Visit Focuses Interest On Turbine Car 7.87 11.68 10.63 16.W 17.11 10.80 20.38 8.7? 13.57 15.14 2.3» 18.73 No 3.27 11.54 18.22 14.68 17.63 11.49 11.64 11.40 10.87 14.63 20.06 76.30 14.15 17.97 14.72 11.12 4.10 28.57 13.43 17.83 28.88 10.39 6.23 By Ted Turpin, Business and Financial Writer earth is Chrysler New England New Horlz RP Noreast Inv One William St Penh SO Phlla Fd PJne Street Pioneer Fund Price, TR Grth provident Fd Putnam Geo Putnam Grth 13.77 ,18.40 15.05 RCA's Plan To Acquire Random House Advances NEW YORK --Iff)- Directors of both Radio Corp. of America and Random House Inc. have approved acquisition of the publishing firm by RCA in a stock exchange The proposal still must be proved by stockholders of Random House a special meeting in May. exact date has not yet been set.

Under the plan, RCA would exchange .62 of a share of its ommon stock for each share of landom House stock. The publishing company become a wholly owned ubsidiary of RCA. It would re- ain its present personnel and lanagement structure. DUAL SPECTRUM 3M Brand DRY COPIER more effective meetings with this visual communication systems. Perfect projection transparencies or copies from any original! only 623-0351 Hughes Calihan BUSINESS (PRODUCTS CENTER corwritlBB 415 3rd St Rep Tech Scudder Funds: Com Stk Selected sharehl Tr Shares Am State St Inv Stdmn Scl- ....1..

Televlsn -Elert Texas Fund United Funds: Accumulative 17.W Income Science Unit Fd Can S-7S Value Line Fundi: Value income Speel Sit Wall St Invest Wash Mut Inv Welllnflton Fd Whitehall Fd Windsor Fd Wisconsin Fd (v) Net asset value. 13.74 12.07 14.61 11.44 22.21 24.11 4.33 10.75 4.09 2.96 9.20 10.81 8.23 14.33 4.68 14.69 14.83 12.92 23.15 10.82 9.32 No 20.83 40.45 16.22 18.20 10.82 7.60 15.92 15.04 24.10 7.69 18.51 8.52 11.01 17.75 8.77 6.40 31.15 16.19 11.81 18.42 13.75 17.03 2.94 12.51 21.69 13.91 7.21 6.03 8.21 7.18 10.36 11.33 12.40 13.91 18.40 15.05 21.13 16.02 12.80 12.85 21.14 6.13 17.62 13.45 5.78 12.71 13.19 13.26 22.97 7.25 11.OS 14.90 19.64 15.60 10.75 4.27 When on Corp. going to start marketing that gas turbine car? That's the question automobile buffs will be asking themselves, for the umpteenth time, this week, as a top Chrysler engineer comes to the University of Arizona campus with two of the turbine cars. Who knows? Maybe he'll ten us. George J.

Huebner former executive engineer hi Chrysler's missile branch, will speak at 7 p.m. Friday in the UA Student Union ballroom, about plans for the "car of the future." And on display, right outside between the Student Union and the "old" women's gymnasium, will be two of the turbine cars if they're not in the process of being driven by selected faculty members, engineering students or guests. The radically different, piston- less Chrysler turbine car has been around quite a while. But it's still experimental, apparently. (It's supposed to run on anything from high-octane gas to after-shave lotion.) I've seen it on display in suburban Chicago, at shopping centers around Cleveland, and at every auto show of any consequence.

You'd think Chrysler would be ready to start selling it. But apparently still "educating the market," the company currently is touring college campuses with one or more of the models, showing them to engineering departments and talking about plans --and methods -for marketing them. Some day. That's part of the reason behind Huebner's visit here. That, plus the fact that his son, David Huebner, graduated from the UA Business College with a major in marketing and is presently getting a law degree here.

The elder Huebner's credentials make him an impressive visitor, even for a campus that gets a lot like him. He's president of the Chrysler Institute of Engineering, and has received awards from the Society of Automotive Engineers anc American Society of Mechanica Engineers. He's a government consultant in several areas, such as metallurgy, chemistry and physics. It should be an interesting vis it. And maybe just maybe -we'll hear about plans for selling that car to us garden-variety mo torists.

0 0 0 BUSINESS BRIEFS: The Gen eral Electric Foundation has an nounced a $5,000 graduate re- niVJOENDS NEW YORK --(APJ-- Dividends declared, rate, period, stock of record, payable: IRREGULAR McCormick and Co. .25 3-18 4-11 INCREASED Crescent Corp 225 3-15 3-31 Mchnts Fst Mot Ln .25 3-11 3-25 Penobscot Co 10 3-15 4-1. Lance Inc 14 3-17 4-12 STOCKS Bush Term Co 2 PC 3-17 4-2 Fla Public Utll 2 PC 3-18 4-8 REGULAR Argus Corp 12 Bradley Milton Co .175 .55 .15 .35 .40 Cdn Imp Bnk of Com Fla Pub Utilities Ont Ylwknlfe Mns Mines Ed Lmbr Co Interstate Bakeries Jeff Lake Petrochem ..075 Liberty Loan Corp 30 Modern Materials 06 Mptvmourh Rub .125 Tidewater OH pf 30 Warner Bros Co 30 California Packing .225 Eversharp Inc 25 Holvoke Shares 05 Supermkts operating .05 Unlv Container A .075 PlumeJtAtwd BrsCop .10 Radio Corp Am 20 Torrinslon Co .40 TransueiWms Stl Fd. .30 4-29 3-25 3-31 3-15 3-14 3-11 3-14 3-18 3-15 3-14 5-2 3-15 3-15 4-22 4-8 3-14 3-15 earch and study grant for industrial engineering and manu- acturing processes will go to the University of Arizona hi 1966. J.

Lee Kleiner of West-Cap Arizona has been elected vice president of the Tucson Industry Association, succeeding Jack Jritton, who has moved from Byron B. Anderson has been named manager of the Tucson office of Universal C.I.T Credit coming here from Three Tucson firms -Levy's, Sid's Appliance Centre and Cork 'n Bottle Liquors, wen all awarded certificates of dis tinction for outstanding name retail merchandising the Brand Names Foundation That all-copper car 000 worth) in the Steinfeld's win dow downtown is worth see Two eastern managers Lusk Corp. properties William A. Baker a former i president and director for Lusl and Robert K. Jones, formerl assistant Lusk division manager have decided to "go it alone.

They're organizing a new deve opment and construction com pany to deal in properties Connecticut andWestcnesteran Rockland counties in New Yor state. The Daily Investor By WILLIAM DOYLE Q--You have warned about the risks of buying low-priced stocks, the so-called "cats and dogs." And I agree with you. But, just out of curiosity, I did some figuring and came up with the following facts. I took the first 50 stocks, in alphabetical order, on the American Stock Exchange (which I still remember as the old Curb Exchange) and compared their price changes for 1965 with the first 50 stocks (again in alphabetical order) on the New York Stock Exchange, where most stocks are higher in quality and price. Would you believe that those 50 stocks far "outperformed" the 50 "Big Board" stocks? A--Sure, I believe it.

But the only thing you prove Is that 1965 was a hot-shot year for speculation. Many, many low priced stocks ran way up in price last year. If you're a speculator who go in near the bottom and got ou near the top, that's great You have reason to cheer. But the vast majority of the more thai 20 million Americans who own stocks are not speculators. They are real investors.

The; buy stocks to keep for the Ion pull not just a one-yearo part-of-a-year fling. The battle cry, "Wait till nex year," applied to more tha Brooklyn's old Ebbett's Field It still suits sensible investors-who buy investment-grad stocks, not low-priced cats an dogs. ative stocks (on the American a and elsewhere) howed major percentage gains ast year. this is a new eir. How do you know it will appen again? Yes, many low-priced, Q--Is there an easy method to calculate the "yield to maturity" of bonds selling at some price other than "par value?" A--There's a method.

But it's wt easy. If you buy a bond, the issuer of the bond pledges to iay you interest at a fixed an- lual rate until the bond matures and to pay to you the par alue of the bond on the maturity date. So, if you buy a 4 per cent 11,000 par value bond at "par; you get $40 a year in nterest Your yield to maturity is 4 per cent. That's simple. If you buy that same $1,000 par value bond at "80," you pay $800.

You still get $40 a year in interest--4 per cent of par value. That works out to an in vestment yield (interest income divided by price) of 5 per cent When the bond matures you'll get $1,000. The $200 dif if the- bood is mature exactly 20 years from the date you purchased ft, that works out to an "increment" pi 10 a year--giving yoa a sill ugher "yield to maturity." The yield to maturity (the way bond yields are usually quoted) takes into consideraojb he investment plus an annual ncrement if the bond is trading below par and minus an annual increment if the rading above par. Complicated? You know it is. So, most people don't bother with figuring.

Instead, depend on brokers' and 'basis books," where theie hings are spelled out in tables-for every interest rate and maturity date. KEARTBURM? ference has to be taken into con- Tti We can make your house a better place to live in! CARPETING SLIP COVERS" DRAPERIES UPHOLSTERY CALL EA 7-5741 FOR Mil 6STIMATI HOUSE OF CARPETS 3ff7 E. GRANT RD. 5754 ttntf ST. 6-1 4-15 5-2 4-1 3-31 4-? 3-31 3-28 4-1 3-31 S-16 4-11 4-1 5-16 4-30 3-25 4-1 3-15 4-15 3-11 4-1 3-14 4-25 3-16 4-1 3-11 3-31 8.47 7.M 5.72 12.21 14.14 15.40 15.04 20.49 1.34 Rate Hiked Again CHICAGO The Beatrice Foods Co.

board of directors has voted the company's third common stock dividend increase in 20 months. The raise moved the quarterly rate from cents to cents, or from to $1.50 annually. FOR UNBIASED ADVICE ON MUTUAL FUNDS WEStAMERICA SECURITIES INC. Stocks MUTUAL FUNDS MEMBER PACIFIC COAST STOCK EXCHANGE PRESENTS WILLIAM A. DOYLE Nationally Syndicated Financial Cilumnlst Reid Dally In the Tucim Dally Cltlien LIBERAL ARTS AUDITORIUM UNIVERSITY OF ARIZONA MONDAY, MARCH 14, 1966 8:00 P.M.

Question and Answer Period After Lecture Phone FOR FREE TICKETS Admission by Ticket Only $3 MILLION SPREAD ROAD. CRUSHING CONSTRUCTION EQUIPMENT PIECE-MEAL AT nucTion WOODWARD CONSTRUCTION CO. Rttlrlnf After 40 Years AND YEIK CONSTRUCTION CO. of Terrinjton, Wyoming, Retiring Silt it CciMtnretlM Yirt HORTH ROCK SPRINGS, IYO. PfcjDAY AND SATURDAY APR.1S2 10:30 A.M.

EACH DAY UTE MODEL EQUIPMENT-MUCH LIKE NEW KOTPUKT: Gritiu 848A, remodeled with fictsiy kit. Cnuhlm: 18x36 Jiw; Sjrmons 4-ft, Short Held Cone; Pioneer 40 22 Roll; Cedtrapidi Sjrmons 4x14 nd Pioneer Buzzer Screens. (2) PiifmHIi: Universal Twin Shaft. (4) M.C. Cit.

D-397, 500 KW; (3) Cit. 75 KW. (4) Scales: Speedweifh Belt; (3) Murphy Portibli Truck Sciles. (19) Cuiveron: to 36" 100-ft. Pitlnj: (2) Cedenpidi BFS-2 Fivers; Ko- Cel Pickup Mechine; (2) Asphalt Retorts.

Irrlfltien Aluminum 6''; with risers, fittinjs, kltr hnils, etc. (22) Cnirfer Tnetore: (3) Get. D-9G, NEW '65; (2) Cet. D-8H: (10) D-8't; (3) Cet. D-7; (3) D-6; Cet.

D-4. (J) Meter Graters: (3) Cat 14; (6) Crene: Bucyrus Erie, IS 8, low hours. (27) Scnaen: (3) Cit. 641, HEW '65; (3) Cet 631B; (3) Euclid TS-14; (2) Cet. DW- 21; (4) Euclid 37LDT; (8) Cat.

DW-20; (4) LeToumeeu Pull Scrapers. (7) Rubber Tired Tractan; Michigan 380 Rubber Tired Dozer; (3) Rubber Tired Front Loaders: Cat 988, 966B and 96SA. (90) Tracts Truck Tractors: (25) White 900TD; (10) Int'l. (t-195 10-wheel Dampt. (35) Trailers: (13) Bottom Dumps, lo I hi beds; complete camp bunk outfit.

Misc. Equip; Pumps, Compressors, Welders, Lite Plants, Steim Clesners, Parts and Accessories, Shop, Very Late Office Equip. Aim HEAR HEW 15-StarJen Mobile with base and repeater, etc. AIRPLANE: 1K3 Ceaarw 210. Recant annual, full panel, 3 radios, Ilka NEW.

Inspect 10-4; Sena! far irechure MAX SONS AUCTIONEERS Senrinr Business and Industry Since 1920 3S1 SO. ROBERTSON BLVD. 5-9300 lEVERLTHlLLS.CALIFORKIA 1213) 131 Townnnd, San Francisco YU 1-0270 5906 Armour, Houston, Ten. WA 3-9136 INYOURHMRT YOU KNOW o.oy^e\^^A«inM. UEUIEK Of: rtOtHM.

HOME IOAN SVSTtU FtOtllM. UOMCS UH 1PAH HISUKmCt New York Life statement of condition New York Life had a most successful year in 1965. Payments to policy owners and beneficiaries reached a new high. More New York Life insurance was purchased than in any previous year and the total volume of insurance in force set a record. Premiums and investment income also reached new high levels.

Dividends set aside for payment to policy owners in 1966 are the largest in the Company's 121-year history. As a mutual company, New York Life has no stockholders. Through dividends our policy owners obtain protection at the lowest possible cost. ASSETS BONDS: DECEMBER 31.1965 Prepared from the Annual Statement filed with the New York State Insurance Department LIABILITIES 146,944,695 224,656,782 234,586,900 Public utility 1,256,931,736 2,525,353,019 4,386,473,132 United States State, Municipal, Authority and other Industrial and other. STOCKS: Preferred and guaranteed.

Common 348,316,017 350,480,214 698,796,231 FIRST MORTGAGES ON REAt ESTATE: Insured and guaranteed 1,073,932,259 Conventional loans. 1,377,185,791 2,451,118,050 REAL ESTATE: Properties for Company Rental housing and business properties 46,859,843 309,401,603 356,261,446 MINERALANDOTHER LOANS ON POLICIES CASH DEFERRED AND UNCOLLECTED PREMIUMS INVESTMENT INCOME DUE AND ACCRUED AND OTHER ASSETS. 33,379,216 655,319,251 40,363,287 153,471,129 79,030,520 TOTAL ASSETS 8,856,212,262 POLICY RESERVES. 6,496,159,271 These reserves are required, together with future premiums and interest, to assure payment of future benefits to policy owners'and beneficiaries. POLICY PROCEEDS LEFT WITH COMPANY AT DIVIDENDS LEFT WITH COMPANY AT INTEREST PROVISION FOR DIVIDENDS PAYABLE TO POLICY OWNERS IN 1966 PREMIUMS RECEIVED IN ADVANCE POLICY Benefits in course of settlement and provision for claims not reported.

MANDATORY SECURITIES VALUATION RESERVE 391,696,475 719,574,863 58,864,634 51,292,910 TAXES-FEDERAL, STATE ANDOTHER OTHER LIABILITIES. 230,403,015 33,085,125 36,907,956 TOTAL 8,239,340,350 SURPLUS SPECIAL SURPLUS-GROUP LIFE CONTINGENCY RESERVE UNASSIGNEO SURPLUS. 5,800,000 611,071,912 TOTAL 616,871,912 TOTAL LIAB5LITJES AND SURPLUS 8,856,212,262 Bonds subject to amortization under the provisions of New York State Insurance are stated at their amortized values. Income bonds and preferred stocks in "Good Standing" are valued at cost in accordance with the National Association of Insurance Commissioners Valuation Procedures, and all other bonds and stocks are at market values. Bonds valued at $90,268,448 are deposited with Governments and States as usq'Jired by BOARD OF DIRECTORS ELLIOTT V.

BELL Chairman of the Executive Committet McGraw-Hill, Inc. JOHNM. BUDD President Great Northern Railway Company CHARLES A. CANNON Chairman of Board Cannon Mills Company CHARLES A. COOUDGE Ropes Gray CHARLES D.

DICKEY Chairman, Directors Advisory Council Morgan, Guaranty Trust Company ofNewYorK DUDLEY DC-WELL President FREDRICK M. EATON Shearman -Sterling ALFRED M. SRUENTHER General, U.S. Army (Ret.) Former President American National Red Cross KENNETH HANNAN Executive Vice President Union Carbide Corporation PAUL G. HOFFMAN Administrator, United Nations Development Programme JOHN B.

HOLLISTER Taft, Stettinius Hollister ARTHUR A. HOUGHTON, JR. President, Steuben Glass DEVEREUX C. JOSEPHS Trustee and Corporate Director ROBERT A. LOVETT Brown Brothers Harriman i Co.

STANLEY MARCUS President, Neiman-Marcus Company KATHARINE E. McBRIDE President, Bryn College CLARENCE J.MYERS Trustee and Corporate Director RICHARD K. PAYNTER. JR. Chairman of the Board RICHARDS.

PERKINS Chairman of the Executive Committee First National City Bank WILLIAM S. RENCHARD Chairman Chemical Bank New YorkTrust Company FRANK STANTON President Columbia Broadcasting System, Inc. JOHN P. STEVENS. JR.

Director, J. P. Stevens Inc. MARK R. SULLIVAN Former President Pacific Telephone Telegraph Company J.

HARRIS WARD Chairman Commonwealth Edison Company 7 NEW YORK LIFE INSURANCE COMPANY 51 Madison Avenue, New York, New York 1OO10 A MUTUAL. COMPANY FOUNDED IN 1845 TUCSON GENERAL OFFICE: NEW YORK LIFE IN ARIZONA-1965 Life Insurance Sales in Arizona 66,173,193 Life Insurance in Force in Arizona $438,177,478 Paid tp Policy Owners and Beneficiaries in Arizona 8,971,337 28J5 E. Broadway: Robert E. Pope, Gen. Kenneth 0.

Lake, Asst. John Taylor, Office Mgr..