The Austin Daily Herald from Austin, Minnesota on January 5, 1959 · Page 16
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The Austin Daily Herald from Austin, Minnesota · Page 16

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Austin, Minnesota
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Monday, January 5, 1959
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Page 16
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t«-MUSTIN (Minn) HERALD LEGISLATURE OPENS TUESDAY Jon 5, 1059 j ROGER BABSON GIVES HIS VIEWS LEGISLATURE OPENS TUESDAY ft* P 1 * * I I™ if*! f\ C /\ 15/0 Job 9 Fmdina Way "usmess, Financial Forecast for 1959 «7 2r ^*^ jF i 1- Not too gocxl am5 not to 0 bad ' wno reduce advertising and other in 1959. for installing automation (automa- pulpwood may be expected in 1959; good btnk lewwt Both the boom and the recent re- selling appropriations will surely 16. This means that it should be tic factories), the machinery in- but this should largely b* offset b* araflibl* to buy *.— __.__ cession will be awaiting develop- suffer. . more difficult, on average, to sell diisirv will continue oulet durintr hv the increased domestic demand a Sufficient hrftftk 6 fo Raise $84 Million ; Both the boom and the recent recession will be awaiting developments following the recent November elections. 2, 1959 will be a "do nothing" By JACK MACKAY j stale government, daylight saving, jterests by legislators and othei ST PAUI*:"fll — Faced will thei a one cen ' ; additional state gas public officials, enormous UuST'of raising 84 mil- itax ' Rbolition of the ceilins on old ! Ejected to come in for oonsld- lion dollar* In new revenue, year for Congress. Both parties will hold their cards close to their I chests until 1960, — when the Rel publicans will want good business. Most Democrats will vote for most assislance pay , nenlSi theji, oc i s j n mental hospitals, more'jer-able debate is the coordination °' tne inflationary legislation; but mini-1 of higher education facilities at onlv a tew of these Congressmen Minnesota Legislature opens its j mum wage laws, automobile safe- the University of Minnesota with' wi11 vote for sucn legislation over !y. laws, lobbyist registration nndjstale colleges and public junior! the Preside nt's v e to. The Demo- legislation on recommended codes • colleges, and proposed expansion i crfl . ts wi " he '" a dilemma. In of ethics to control conflicts of in-jof the junior college system. l ' ieir nearls tne V will not want good business in 1960; but they must be very careful not to do 6iKf biennial session Tuesday noon. The new Legislature will he confronted by a request by Gov. Freeman to approve the high- esl biennial budget In the state's history — 466 million dollars. Administration C o m- missioner Arthur Naftalin has indicated that 84 million dollars more will be needed in the form of new or increased taxes and license fees to balance the proposed budget of the governor. Donovan to Preside Secretary of Slate Joseph Dono-' ran will preside in the opening i minutes of the House of Representatives and Sen. Thomas P. Welch of Buffalo, president pro tern of the 1957 Senate, will open the Senate session. Lt. Gov. Karl Kolvaag Is the regular president of the Senate, Chief Justice Roger L. Dell of the Minnesota Supreme Court will administer the oath of office to the C7 Senate members and Associate Justice Thomas Gallagher will •wear in the 131 lawmakers in the lower house. Freeman to Take Oath Gov. Freeman will be sworn in Wednesday noon for a third term by Judge Dell at a joint session of both houses. Then the governor will deliver the traditional inaugural address. The governor'* reception for (he public will be held In the Capitol rotund* Wednesday night. Many problems will arise in connection with finding ways to pay for elate government. There will be discussions, undoubtedly, of a sales tax, possible overhaul-!day attempt to convince a federal ing of the state's tax structure, j judge they acted legally. After the hearing in U. S. District Court, the judge will rule on the officials' contention they lawfully withheld from the federal agency evidence on Negro voting. The ruling of U. S. Dist. Judge Frank Johnson Jr. can be appealed, however, and the clash of federal vs. state authority eventually may reach the Supreme Court. Immunity Argued Arguing immunity to civil rights anything which could against them in 19BO. be held 16. This means that it should be more difficult, on average, to sell 6. Despite competition, the pro-i long-term bonds in 1959 than in fits squeeze will be eased fot many 1958. But only non-callable serial concerns by strenuous cost-cutting programs and improving business. 7. More foreign goods will enter the United States during 1959. This especially applies to German, Italian, Japanese, and Russian goods. bonds or bonds of reasonably short maturities. 17. The supply of non-taxable state, municipal, and revenue bonds will increase during 1959. This will be due both to less readily available credit and to rising 8. New cargo ships, built in:needs of municipalities. Japan, England, Germany, Nor-; 18. The "fly-in-lhe-ointment" will way, Sweden, and Italy, will be launched in 1959. This should re suit in mos|, American-built and American-registered ships operating at a loss. More subsidies will be demanded. 9. Failures may not increqse Every act of Rockefeller's and!during 1959. Some big corporation, of other leading Presidential can-1 now listed in the Dow-Jones Ave- d.dates of both parties will be j rages, may get in financial diffi- careftilly scrutinized to analyze:cullies. vote-getting possibilities forj j,,. Federal cost-oMiving figures on these i W jii be disputed in 1959. Labor j serious, only short-term bond is 1960 possibilities in our Forecast I960 a year from now. be the uncertainty of the Federal policy regarding the new $30,000,000,000 roadbuilding program. Will, it compete with or protect toll! roads recently built? I believe this] program will not harm outstanding Turnpike Bonds. 19. Many investors will switch from stocks into bonds in 1959, thus tic factories), the machinery industry will continue quiet during 1959. 25. I now see no probability that either wages or retail prices will be "fixed" during 1959 unless Russia threatens World War III. 26. Most wageworkers will be more efficient during 1959, which should enable some managements to increase their productivity and profits. 27. Executives will attend more strictly to business during 1959, reducing time spent on luncheon clubs, golf, etc. ' 28 - buildin B land on obtaining both higher income and better security. 20. As inflation becomes more for;rales and wages which have been!sues — Hied to the Federal Tables will i bonds — 3. So long as Russia is fearful! be disputed by both Labor and of China's loyalty, she will n o I Management. intentionally start a shooting war. I hope that Chiang Kai-shek will come to his senses so that China will become an ally of the United rity. Bonds should no longer be considered good "permanent" investments unless they are nontaxable or convertible on a reasonable basis. 21. The best investment policy during 1959 will continue to be a well • diversified portfolio — of stocks, short-term bonds, and „ u_ , r ,, . ,„-. ,. i. ,„ — " lan cash. Every conservative investor a heavy deficit m 1959. This and > m 1958. Due to fear of unfavorable wiu ke ep one-third of his 11. On the basis of the above statements, I forecast, on the average, no wide change in 1959 for commodity prices. The recent re- States. Marshall surely bet on cession is not over. Russia is still the "wrong horse" when he made his report to Truman. fighting us with an economic war. 12. There will be more strikes other than convertible should be held to matu- 4. Our national budget will show and labor troubles in ETCHED INTO HISTORY — A skilled engraver at the Federal Mint in Munich, Germany, makes castings for a series of gold medallions that will be issused at banks in commemoration of the crowning of Pope John XXI11. Alabama Officials Face Federal Judge Today other factors should cause a con- labor legislation and poor busi- linued gradual, although not dan- ness conditions, labor leaders were on their good behavior in 1958. gerous, inflation. 5. Serious competition will continue at all levels in 1959. Manu- 13. It is now difficult to forecast the unemployment situation faclurers, merchants, and others for 1939. Owing to the increase of Bandit Loses; Finds Victims Too Tough MONTGOMERY, Ala. W — Alabama officials, who defied the U. S. Civil Rights Commission, to- and how. to finance a proposed S3 million dollar state building pro- cram. Other Hot Issuet Other hot Issues will be h e installation of an income tax withholding system, legislative reapportionment, reorganization of Sam Rayburn 77; Celebrates With Tarty' WASHINGTON (AP) — House Speaker Sam Rayburn (D-Tex) reaches his 77th birthday Tuesday. The Texan will meet with fellow Democratic congressmen in the morning at a. party caucus to map plans for the 86th Congress, which convenes Wednesday. A birthday reception in his honor will be given during the evening by Dale Mil-, Jer, Washington representative ofj the Dallas Chamber of Commerce, and Mrs. Miller. Born Jan. 6,1882 in Roane County, Tenn., Rayburn went to Texas with his parents when a. child and was reared on a farm in the northeastern part of the state. Once speaker of the Texas legislature, the Bonham legislator was elected to Congress in 1913. ( He has been speaker of the U.S. I House since 1940 except for four! years when the Republicans were in the majority—longtr than any ether man in history. Clue: Robber Must Wear Size 42 Suit OWENSBORO, Ky. Wl — Police havt one clue to a men's store burglary here Saturday night. They said J3.000 worth ol clothing w»s ttoltn. All size 42. STATE TONITE & investigators are Circuit Judge George Wallace of Clayon and five present or former voter registration officials. Wallace refused to appear at (he Civil Rights Commission hearing here Dec. 8-9. The registrars balked at testifying under oath about the Negro voting complaints. Designated judicial officers under state law, they claim the federal agency has no right to ques- ion them about their official duties. Failure to convince Judge Johnson they are immune from the; commission's probe would put, them under federal subpoenas once again — at the risk of jail terms for contempt — to produce the requested evidence on Negro voting. Johnson already has ordered the rebellious officials to obey the commission subpoenas. He p o s t- poned execution of his command pending today's hearing. LOUISVILLE, Ky. MV-A would- be holdup man. was swept off his feet here. The bandit entered a liquor store and pointed a gun at manager Sal Waldman. Waldman, 67, grabbed a broom and started pushing the man out of the store. Janitor Cointon Calbert came from a back room and helped. Waldman and Calbert wrestled the gunman, identified by police as Charles Ray Booth, 31, to the sidewalk, hit him with his own gun, and held him until police arrived. port- I automation, working forces will continue to be cut.'Looking ahead to the elections of 1060, manufacturers, who are mostly Republicans, will want no more serious unemployment to occur. 14. Many plans for expansion-of plants were postponed during 1958 for fear of a real depression. Some of these plans will be executed in 1959, although on a more moderate scale. There will be a need for continued economic readjustment in folio liquid, to have funds available in case of a sudden very severe drop in the stock market. This will come some day. 22. As the 1958 Congress has not accomplished more in correcting abuses in the Teamsters Union, the 1939 Congress will do little to improve the labor situation. Therefore, invest in companies which will not be subject to strikes. Banks and utilities probably arc the most nearly immune. 23. The Taft-Hartley Act will not be amended, nor will labor's exemption from anti-monopoly laws be removed, until after the 19f>0 election. Labor leaders will get more and more power until — with 1959; 'but the playing of politics I KU f, P " by both narties mav i.pmno.-.nrilv real depression. ; Russia's help — they bring on a by both parties may temporarily postpone it. I 24. Due to unemployment and 15. 1959 will not see any marked! the difficulty of borrowing funds change in money rates. However,' borrowers who have not establish- : ed good credit will continue toi find it difficult to get new funds; proper side of growing cities will continue to increase in price notwithstanding a decline in suburban building. Small farmers holding such land should-not now sell. 29. Small farms without any suburban possibilities may well consider selling to adjoining farmers if offered a fair price in 1959. 30. Large commercial farms but this should largely b* offset by the increased domestic demand for cartons and packages for Shipping and displaying merchandise. 38. Both timber and oil reserves of Canada will gradually increase in value. I am bullish on many Canadian and African investments. 39. The greatest factor in determining the price of city land and businesses in general is the automobile and availability of parking space. This is responsible for both the boom in. suburban real estate and the decline of city property. Buying city real estate without nearby parking facilities is a great mistake. 40. I was wrong in my forecast a year ago as to the Dow-Jones Averages. Although many stocks sell lower today than a year ago, the Dow-Jones Averages —• especially the Industrials — sell higher. However, I will again run the risk and forecast that they will sell with latest machinery should pros-| lo wer sometime in 1959 than they per during 1959; but small farmers may not do so well.' 31. Pending a serious war, there will be no radical change in the Government's farm policy during 1959. 32. With less fear of serious war, the real estate situation in the larger cities may improve; but municipal taxes will increase. 33. Some suburban houses now owned by well-paid executives will come on the market in 1959, due to loss of positions or moves to other sections of the country. 34. Real estate mortgage money will be tighter in 1959 than in 1958. Furthermore, due to inflation, it will be worth less when due. 35. The demand' for motels is largely satisfied; but there will be an increasing demand for very modem apartment houses, — especially of the co-operative type. Old houses of all kinds will depreciate during 1959. 36. Woodland will continue to be in demand during 1959. This especially applies now to pine, which is used for the best lumber, and to spruce, which is used for pulp. Hold woodland in 1959. 37. More Russian imports of do today. 41. My forecast of the bond market for 1958 was correct. I am inclined now to reverse that forecast in the case of long-term nonconvertible corporate bonds, that is, they should sell for less sometime in 1959 than they are selling for today. 42. I continue to forecast that high-grade, cumulative, non-call able first preferred stocks will sell higher sometime during 1959 than they do today. 43. I repeat what I said last year regarding "cheap" stocks: "The large fortunes made in the stock market have come from buying non-dividend • paying common stocks at $5.00 a share or under. These will be the first to reach a buying level." If you are to buy these low-priced common stocks, you should seek companies without too much prior debt or cumulative preferred stock outstanding. They are the best common stocks for "capital gains." 44. Convertible bonds should hole up fairly well during 1959. 45. The best investment policy for 1959 is for one now to have a be arailabl* to buy btrflint vtMft a sufficient break OOEMI la •took*. bonds, real Mtftti, and «>maxxft» ties. 46. There iHtt bt ttaay in hastily organised nuclear, and dmilw during 1089. 47. With two * Ibm «MtplhM4 railroad stocks should bt iwUtl during 1959 and until • long ' rang* program ol meat aid is assured. 48. For steady faeomt uA fcfc marketability, will » establish^ utility stocks should bt tb« bftii tor conservative investors not look> ing for profit. This especially ip plies to cumulative first prtftmj non-callable utility stocks. 49. The three handicap* to Aflto erican business are the far a) inflation, the fear of union Itbof leaders, and the fear of Pr«ddMti Eisenhower's physical collj.pt*. 50. The three hope* for ca ar« our churches, our and a desire to "pay M you foC* For these to function properly «4 must depend upon the permit <n our nation. WPBSON Tne* Jan. {, 8:30 Mayo Ok And. Theater —OOCIICSlUt i $3.75 - $2.73 • $2£ - • - — company tom'»i Jlnd from • * * M* Ctfuift TfcUfc on S*U M*w CM* Auditor!** KocbMftr. AT 9-4003 for FAMILY NIGHT FAMILY PARTY TONIGHT AT 8:00 p M. MOOSE LODGE TONIGHT - TUESDAY EVENINGS ONLY AT 7:00 and 9:00 P.M. A BEWITCHING COMEDY ABOUT M EUWIMtTWfl SUBJECT-ieu BOOK, AND' CANDLE RUKDKOCtU ESMMSIt! mm unaoa tmaam TECHNICOLOR* STERLING THAT Mf ANT WOMAN-TROUBld M-G-M Pnwnb A SOL C Frank SINATRA WAIT! WAIT! - Furniture Buyers Look!! - WAIT! WAIT! Al*o Roy - Cliff Robertwn Raymond Massey IHOWI It* UU St. C yt « .. tiiit S 8 3,000 FURNITURE OF APPLIANCES STARTS TOMORROW NIGHT - 6:00 P. M, Entire Store Closed All Day Tuesday - to Mark Down and Rearrange Stock ^"^^^^^ ^^^^^^ ^^^^^BmilMi WIMMMMMP MMMHHMRRp •Hm^B CORNER WATER and CHATHAM STREETS CO.

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