The Charlotte News from Charlotte, North Carolina • 17

THE CHARLOTTE Dec 4 1963-17A Inside Business 1 Monumental Study Shows Stock Performances Businossmon vi '1FF Today's Trade Trends Dow Jones Averages Prey Close 11 a 12 Noon 1 4540000 1060000 1990000 2570000 rials 75182 75034 75121 75101 ads 17258 17247 17249 17247 13699 13885 13888 13853 Stock Averages Compiled By The Associated Press 30 Indust 15 Rails lq TIM An ciAb 13 tall 60 Stocks 15 Rails years to complete was con ducted by James II Lone pro fessor and head of the Univer sky'! Center for Research in Security Prices and Lawrence Fisher associate professor and associate director of the center The study covers between 2- 000000 and 3000000 individual items of information including 350000 prices of stocks a 100000 dividends It answers the deceptively simple question: What has been the typical experience of the average investor in common stocks? Average return from equal Investment in each of the 1700 common stocks listed on New York Stock Exchange compounded semi-annually is available for three tax brackets and 22 time periods be tween 1926 and the end of 1960 stocks Average return from equal in each of the 1700 common stocks listed on New York Stock Exchange compounded semi-annually is available for three tax brack- ets and 22 time periods be tween 1926 and the end of 1900 Volume Industrials Railroads Utilities Net Change Noon Wednesday Previous Day Week Ago Month Ago Year Ago 1963 High 1963 Low 1962 High 1962 Low 01 3991 3992 3936 3970 3440 4060 3411 3771 2858 as used in the study is ex- had selected stocks on a ran- without reinvestment of diviplained as dividend yield plus dom basis clends This Is expected with-capital appreciation less taxes Nonetheless he interprets In a few weeks and broker fees them to mean that "Whenever Then the center will proceed Comparable after-tax infor- you buy common stocks if to far 0 sophisticated melon on other forms of in- they are held for a reasona- analyses vestment was not available ble length of time and include tD lE are TO under COME a omi in- but on a before-tax a i a diversified list you will do ST Lone and Fisher reported: very well on the average which Savings in commercial banks regardless of when you buy" elude: mutual savings banks and say- An appraisal of the valogs and loan associations nev- THE PROJECT began when rious methods of technical and er earned as much as 8 per cent annually for any of the Ati executive I Merrill statistical analysis of the stock 22 time periods studied and Lynch Pierce Fenner and market as the Dow for most of the periods earned Smith called Lode and casual- theory and the various point less than 4 per cent ly asked: andfigure theories to deter What's been the experience mine how well each would have of the average investor over worked if it had been follov the long haul in common from 1826 through 1960 IV- stocks? Has he made or lost An analysis of the Tel? money on his investments? ships between dividends earn-cent Lode replied that no one ings and prices as retied to really had an answer to that specific stocks question Analyses of 1e relation- With 'that the study a ships between Oa market launched and the Center for Prices and nterest rates i suet' Research in Security Prices tors as monet supply corn- was established modity pricA economic fac- evaltate Merrill Lynch contributed industrial an initial $50000 Lone esti- national eoduct and an effort mated it would take about a Itoduction and gross their relative imAveraged portPi th to get answer ce year An analysis of the popufrom It ultimately required vast- fAar averages especially 11 ly more time and a total ex- Dow-Jones averages and Stan15 Penditure of nearly $250b00 dard and Poor's 500 stock in-rinds dex and an effort to construct problem was The most time-eorAlming getting accurate new more meaningful aver which to ages' A --1--- -e -t--I- information with ute icusul ut unit anu ilictuue I very well on the average in a diversified list you will do regardless of when you buy" elude: I 4 An appraisal of the va THE PROJECT began when rious methods of technical and an executive with Merrill statistical analysis of the stock Lynch Pierce Fenner and market such as the Dow Smith called Lode and casual theory and the various point ly asked: andfigure theories to deter What's been the experience mine how well each would have of the average investor over worked if it had been follower' the long haul in common from 1926 through 1960 stocks? Has he made or lost An analysis of the relemnmoney on his investments? ships between dividends earn-Lode replied that no one ings and prices as retied to really had an answer to that specific stocks question Analyses of 1e relation With that the study a ships between Oa market launched and the Center for Prices and sucb economic fac Research in Security Prices tors as mono' supply corn- was established modity pricA interest rates Merrill Lynch contributed industrial Itoduction and gross an initial $50000 Lone esti national roduct and an effort mated it would take about a to evalidte their relative im year to get the answer portPice An analysis of the It ultimately required vast ar averages especially ly more time and a total ex 'D Dow -Jones averages and Stan penditure of nearly $250b00 dard and Poor's 500 stock in- The most problem was getting accurate dex and an effort to construct time-eorAlming new more meaningful aver Information with which to ages Analyses of stock price work movements by industry class' The stu was begun with fications d' 1926 in oder to cover periods The center has been updatof eadomic expansion and re- ing its basic raw material for cesson war booms and post- the time subsequent to De vdr inflations cember 1960 and will have Next to come will be a du- this initial report from 1960 to plicate of this first study but the present Market Improves In Active Trade Collectively mortgage loans made by commercial banks and life insurance companies nevinvestment er yielded more than 6 cent never less than 4 per cent and averaged 5 per cent Realized yields on municipal and US government bonds as indicated by Standard a Poorls indexes ranged om In addition the return is fig- minus 7 to plus 78 per cent ured separately to give the re- and averaged less than 4 per suits if the stock were sold at cent the end of each period and if it were held the difference Averaged realized yields on of course reflecting a pit al large Issues of corporate bonds gains taxes and an additional from 1900 to 1958 ranged from brokerage commission minus 6 per cent to just over 15 per cent but for most peConsistently the report as- rinds varied between 5 and 8 sumes a plowback of divi- per cent dends into additional stock purchases Lode cautions that the results simply indicate what you Rate of returR on investment might have expected if you Collectively mortgage loans made by commercial banks and life insurance companies nev er yielded more than 6 never less than 4 per cent and averaged 5 per cent Realized yields on municipal and US government bonds as Indicated by Standard a Poorls indexes ranged minus 7 to plus 78 per cent and averaged less than 4 per cent realized yields on large issues of corporate bonds 1900 to 1958 ranged from minus 6 per cent to just over per cent but for most pe- varied between 5 and 8 per cent Tnrin rnlitinnt that tho re- Labor Fights It Productivity Rise: Damned Praised It is with profound sorrow that we announce The death of our President JAMES MURREY ATKINS On the second day of December Nineteen hundred and sixty-three In respect for his memory all of our offices are closed today DICKSON COMPANY In6orporated By PAT MURPHY News World Service CHICAGO The longaWaited results of a monumental study of common stock performances undertaken by two University of Chicago professors have been made public They showed what the profit would have been to investors who in 1928 bought at random a widely diversified portfolio of common stocks listed on the New York Stock Exchange reinvested all the dividends and sold out at the end of 1980 After payment of all commissions and federal taxes: married man with an adjusted gross income of $10000 taking all the standard deductions would have earned an average of 82 per cent on his stocks compounded annually man in the $50000 tax bracket who had been in the same relative tax bracket in the intertening years would have earned 884 per cent compounded annually tax-exempt organization would have earned an average 903 per cent compounded annually At 9 per cent compounded annually a dollar invested in 1926 would have grown to $20 at the end of the 35 years THE STUDY which took 3'i McLean Will Pay Dividend SPECIAL TO THE NEWS WINSTON-SALEM board of directors of McLean Trucking Co at a meeting here Tuesday declared a quarterly dividend of 10 cents per share plus a year-end extra dividend of 10 cents per share payable Jan 1 1964 to all stockholders of retord Dec 13 1963 This will be the 46th consecutive quarterly dividend a the second consecutive yearend dividend to be paid by the company McLean President Paul Davis also announced that Hayes Freight Lines Inc a subsidiary which has been op erated as the Hayes Division since Jan 1 1960 will be merged into McLean Trucking Co as of close of business Dec 31 1963 An application to merge Hayes was filed earlier this year with the Interstate Commerce Commission and approval was recently received McLean operates over 4 X10 units of mobile equipment and serves major markets in eastern half of the ration Life Insurance Big In' State North Carolina families received $53 million in life in surance death payments in the first nine months of this year compared with $48400000 in the same period last year according to the Institute of Life Insurance The number of policies involved in the first nine months of 1963 was 37200 compared with 34200 policies in the same period of 1962 For the nation as a whole $3- 163300000 in death payments were received by families under 1809600 policies in the first nine months of this year compared with $2884500000 under 1692200 policies in the same period last year Perfecting Service Declares Dividend The board of directors of Perfecting Service Co here have declared a special dividend of 10 cents per share on their $5 par value common stock outstanding on Jan 6 1964 payable Jan 15 1964 The dividend was announced by Bowers company vice president for finance NEW YORK (11-- Stock prices improved early this afternoon after dawdling through the morning Trading became active and the New York Stock Exchange ticker tape lagged behind floor transactions But the action could hardly be ealled a continuation of the late rally yesterday that came on news that President Johnson was continuing to stress governMental economy I AIRLINES and tobaccos ad vanced and most other groups were mixed Pao American World Airways which announced after yesterday's close a 2-for-1 stock split and a dividend increase gained more than a point in active trading Liggett Myers continued to gain adding about 3 points on strength of a report favorable to charcoal filter cigarets The Cancer Society's report that Said smokers' death rate IICKER TALK NEW YORK Stock market comment today included: STANDARD AND POOR'S CORP: "The equilibrium of the stock market has been quickly restored but the advance has been so rapid that attractive buying opportunities were not long available The list's strong recuperative powers and growing confidence that -business will continue its upward course fully warrant maintenace of present invested positions" BACHE AND CO: "We continue to look for an improved tone in the market and we are of the opinion that the major trend points upward The news emanating from Washington indicateS that President Johnson is making a concerted effort to seek early passage of the tax bill" vIELLER AND CO: From a snort term point of view the two most impressive characteristics of last week's performance were the failure of important selling to develop during periods of rest between rallying phases and the leadership provided by such recent favorite as IICA Xerox and Pata Control vim i 1 I TALK 0001mmor ie a didn't when I could- Now I can't when I would! Pickard Jr executive vice president of the Carolina Motor Club has been elected to 4 the board of di- rectors of National Associa- ton of Travel Or- ganizers Xi election came 1 during the assoelation's recent annual conven PICKARD tion in San Fran- Mr Pickard will represent the East Central Region which includes Virginia West Virginia Kentucky Tennessee North and South Carolina Luke Yandie of Charlotte has passed the examination of the North Carolina Real Estate Board and plans to go into the real estate business here Walter Dunlap manager of the service department of Ford's Charlotte District office has been certified as a graduate of the advanced truck salesmanship course at Ford Motor' Company's Atlanta Marketing Institute IL Phillips former manager of the Williamsburg Village apartments here has joined the staff of the Davis Davis Realty Co as residential sales manager He has offices on the fifth floor of the Cutter Building in the Davis Davis Co suite Josep Johnson has been appointed brokerage consultant at the Charlotte office of Connecticut General Life Insurance Co according to John Gaven manager Mr Johnson will work directly with brokers in providing technical assistance and analytical services in matters relating to life accident and health insurance Robert Peck has been pro moted to assistant cashier of First-Citizens Bank Trust Co Lewis Holding president of the bank announced today Mr Peck also serves as treasurer of the Charlotte Home Improvement Council and is a member of the Charlotte Finance Exchange Cotton Price Turns Mixed CHARLOTTE COTTON (Noon Quotation) Furnished by JA Baker Co Middling inch staple 3380 NEW YORK P)---- Cotton futures turned irregular during the forenoon Nearby December contracts which are now in process of liquidation advanced on trade covering Nearby May contracts remained slightly lower The balance of the market was inactive' Noon prices were 15 cents a bale higher to 15 cents lower than the previous close Prey Close Open 11 am 12N Dec 3335b 33351) 3335b 3338 Mar 3344b 33381) 3338b 3338b May 334313 3340 3340 3340 B-bid Air Cargo Tonnage up WASHINGTON gl Domestic air cargo shipments during October amounted to 837 million ton miles an increase of almost 10 per cent over the October 1962 volume the Air Transport Association has reported For the first 10 months of 1963 air cargo volume was 10 per cent greater than for the corresponding period of 1962 the association said The October total included 62 million ton miles of air freight up 117 per cent 66 million ton miles of air express down 13 per cent and 126 million ton miles of mail and increase of 78 per cent A ton mile is one ton car ried one mile EAL Will Change Heads Dec 15 NEW YORK UPI Malcoln A MacInt3rre who resigned recently as president of Eastern Air Lines will relinquish the air line job Dec 15 MacIntyre said he has no plans for the future except for a decision to take a long-deferred rest and that reports he would rejoin his former law firm in New York were "speculation" Floyd Hall will succede Macintyre as Eastern's chief executive and president on Dec Hall has been senior vice president and system general manager for Trans World Airlines Butter And Eggs CHICAGO Chicago Mercentile Exchange butter steady wholesale buying prices unchanged 93 score AA 5734 92 A 5734 90 5 57 89 56 cars 90 5 5734 89 5714 Eggs about steady wholesale buying prices unchanged 70 per cent or better grade A whites 34I2 mixed VIA mediums 28121 standards 33 (JIM'S 29i checks 29 Unck D02 1487 2804 1487 2806 1471 2770 1470 2781 1316 2421 1511 2824 1349 2427 1429 2825 1103 2006 is above the nonsmokers' rate failed to hurt the tobaccos American Tobacco and Lorillard gained fractionally A bright spot in the market was the savings and loans Wesco Financial Trans World Financial First Charter and Gibralter Financial advanced more than a point Magnavox gained about a half a point on a block of 13000 shares and then boosted its advance to 2 Consolidation Coal dipped a minor fraction on a block of 16300 shares Xerox was down 8 at one point and then pared the loss to 5 UP ABOUT a point were International Telephone Anaconda and Merck Off a point or so were Westinghouse and US Gypsum International Business Machines lost more than 3 points and Du Pont pulled the averages down with a loss of 212 Jones and Laughlin gained a small fraction while the other steels eased Chrysler declined a fraction at the opening and later came back for a gain of nearly 2 points Studebaker was up slightly and Ford showed a small loss Sears Roebuck Woolworth and Montgomery Ward posted fractimal advances Prices on the American Stock Exchange were mixed in moderately active trading Up about a point were Kaufman and Broad Overseas Securities Philips Electronic Prophet and Zale Jewelry Gilbert lost more than a point Fractional losers included Occidental Petroleum Independent Telephone and New Jersey Zinc Corporate bonds were mixed and governments were mostly unchanged Earnings NEW YORK (AP) Warner Bros Pictures Inc reported profit for the year ended Aug 31 fell to S5699000 equal to $117 a share from $7566000 or $156 a share in the year earlier Korvette Inc for 13 weeks ended Oct 27 1963 1962 95370 860579 23 cents 21 cents 92490331 63764291 Net Income A share Sales US Plywood Corp for 6 menths ended Oct 31: Net income $7535100 6737000 A share 243 221 Live Poultry CHICAGO (AR) (USDA) live poultry: wholesale buying prices 1 low er to 1 higher roasters 234 special' fed white rock fryers 11112-19 barred rock fryers 21 few heavy hens 19 few young hen turkeys 2712 Prey Noon Close Today oelis 7912 31112 3812 4212 4212 2044 2012 11 104 56 5612 34141 35'4 8234 (144 57 S7Z 4 6334 6344 2414 2412 2241 2244 11414 114 S2I 5 2 12 5334 531e 4334 44 24 2334 5174 32 4834 40 37 57 404 404 102 1014 4012 4012 394 3912 AO 97 9712 6934 6914 1914 19 74'4 754 59z 59 714 72 36 3614 67 67 364 3712 3712 3712 11234 112'4 Al Vs Al AOst AA AA' 2112 2134 46 7 a 53'4 53'4 4112 4111 4134 22''a 224 3214 3212 35'4 34 2954 2934 8012 8CP4 1114 -Ft Liggett Myers Lockh Air Lorillard Martin Marlette McLean Trk Monsanto Montg Ward Motorola -N Nati Biscuit Net Dairy Pd Nati Dlstillers NY Central Norf West No Am Avis -P- Param Pict Penney JC Pennsy PR Pepsi Cola phillips Petr Pitt Plate Glass Pure Olt Radio Corp Rep St Reynolds Tob Seabd kr! Sears Roebuck Sou Rai Sperry Co Std Brands Std Oil Calif Std Oil NJ Stevens JP Texaco Inc Testron Inc Union Bag Un Carbide Union Pee United Airlines United Aim United Fruit Us Rubber Us Sti El I Pow -w- PLR Western Md West Union Westing El Winn Dixie Woolworth Zenith Red 05 1445 1450 1433 1422 1207 1499 12111 1272 070 returning Jollars known as the dent in the balance of parrunts Jr 1961 productivity gained ly 33 per cent and in 1962 by 19 per cent The rate this year is believed even higher Newer equipment now being planned or tested promises still further gains in the unit output per manhour of labor to the delight of some to the dread of others THERE HAVE BEEN mark ed ups and downs in the rate of increase since World War II but the average has been 3 per cent This compares with the average of 25 per cent from 1919 to 1947 But the current rate actually may be well above the figures commonly used Economists at Chase Manhattan Bank New York point out that a measure of productivity also should in dude the part played by the increased use and efficiency of capital They say this added an average of 15 per cent a year during the 1919 to 1947 period to that chalked up by the per formance of labor with its new machines Heavy additions to the stock of capital in the earlier postwar years cut the output per unit of capital But the bank economists think this may have risen again as capital expenditures tapered off so that "The recent picture is a bit more favorable than output per man-hour data indicates" The trend to greater productivity seems likely to continue As the bankers say "There is no reason to think that the education research management improvements and technical progress which are behind the productivity advance will abate" So all the gains from this new productivity will be with us And also most of its problems may remain CURRENT RATE 5S SAVINGS "The Savings Center" First Federal Savings a Loan Man 225 Tryon St Phone ED 31401 6 CI1141 Guaranteed Insurability Guaranteed Insurability THAT IS By SAM DAWSON NEW YORK A big spurt in productivity is being given much of the credit for longer than average life of the present business upswing But the three- I year better-than- elbA usual rise in pro- ductivity is be- filt)4g ing both damned and praised It is being tied to jobs and uremployment 0'id to oawsom wages ancl prices and also viewed as a weapon in foreign trade battles Productivity thus means different things to different people Its basic definition is how many units can be turned out in a manhour of labor TO MANAGEMENT this means the more units the lower the costs Thus new equipment can be translated into lower prices (or maintained price margins) in competition with rivals at home or abroad Or it can mean higher earnings from which both future expansion and increased dividends can be paid For labor the recent increase in productivity often goes now by the name of automation And to many individual workers this has meant a loss of jobs or the fear that still newer machinery will take away present jobs This is true both in factories and in offices Rising productivity is behind the drive for a 35-hour week higher fringe benefits even in some cases a demand for a curb on future mechanization For government the rise in production has of late become a guideline for what is permissible in the public interest in the way of rising prices a wages It is also a key factor in the drive for a greater rate of economic growth For the money managers the rise in productivity in the US has been one of the chief helps in keeping American goods competitive in world markets thus increase exports and reducing by that much the surplus of outflowing dollars over sion was to introduce the new officials to stockholders and re view developments over the two years since the last for mat stockholders meeting he said Although votes at the informal session were advisory in nature the board asked members to act on steps necessary to authorize the dividend Stockholders present unanimously agreed to increase the maximum number of outstanding shares from 1250000 to 2 million This action enables the corporation to issue stock backed by profits as a dividend NO STOCK issue other than the dividend is planned officers of the corporation said In another informal vote stockholders unanimously defeated a proposal for an inverse stock split in which three shares would be exchanged for one It was not endorsed by the directors There are countless older men who would pay a small fortune for the privilege you hay (if you are under age 40 and in good health) of applying for Jefferson Standard's GUARANTEED Insurability Provision No matter how your health or occupation may change in the future you will have the this increasing your protection without evidence of insurability Let me give you full particulars New York Stocks Crothers Manager al I Mc Cochran Supervisor Rufty Supervisor Glenn Blies Cashier Associates BerryhIll A Bethune Brown Coleman Imschweller Kimball McCann Sr McCann Jr I Rasberry Turner A White CLU larryhIll Coleman McCann Sr 5 Turner A (inn i 4 I Stalidaq Speedway Board Declares Dividend Milowitiimmiummulmilimmumitimmunkummultwoulumunuhumunumuthumamiwiligliumiliwulumittimagull IThis annomneerrsent appears as a matter of record only F- NEW ISSUE December 4 1963 Prey Noon Close Today -A Adams Allied Ch Allis Chill Am Can Co" Am' Enka Am Motors Am Tel Tel Am Tob Atch Atl Coast Line MI Refining Avco Co 1134o 544 1512 Al a WA 1914 1404 2630 28 6014 524 2376 5414 1534 4134 1938 4012 26142 2812 6034 52v2 2334 -I Bendix Corp Beth St1 Boeing -Alr Borden Co Burl Ind Burrougin Corp 4812 0'4 3012 30-14 38 371s 6334 6414 41N 41 2471 24543 Caro Celanese -Corp Chain Belt Champion (hes Ohio Chrysler Coca-Cola Columbia Credit Corn Prods Curtiss -Vet 68 684 5434 54 41 417'6 3234 3234 653io 66'11 832 8534 1063i 10576 294 2916 3916 3984 3171 38 182 18141 Dan Phi Douglas Air Dow Chem Duke Pow Du Ponta East Air! Eastman KOd Firestone Rub Foote Mim Ford Motor r2 1112 23 s2 2336 641 2 6412 6334 242 240 251 2554 1147 11511 3751 31'4 1114 1112 Sill 514 -0- $10000000 Bucyrus-Erie Company Notes due December 191978 a a i 3 1 1 a a 1 a 1 1 I Direct I Promissory By BILL HUGHES News Staff Writer Directors of Charlotte Motor Speedway have declared a 712- cent-a-share dividend to be paid in additional shares of stock to its 2300 stockholders The action was announced and unanimously endorsed at an informal meeting of stockholders at Ovens Auditorium last night More than 100 shareholders heard A Goines president of the corporation since last April announce "We've taken some bitter medicine but the patient has been saved" HE WAS REFERRING to a court-supervised reorganization that culminated with the appointment of the current officers and directors last April Though court supervision still is involved in some aspects of the speedway's operation the court-appointed officers and directors are essentially in charge he said THE PURPOSE of the ses placement of these securities with Institutional investors has been negotiated by the undertigned Reyholds Co Inc 2141 214 mft nve 74 NIA1 m34 mvs S08 X34 ems m34 mu 4741 3134 324 $134 5234 224 22'A Gen Elie Gen Foods Gen Mot Gen Tel Tel Geb Prod Goodrich SF Goodyear ISA Grevhourod Gulf Oil Corp Int Pacer I Tot WASP 101 I 7 -t) 9 -LAW NEW YORK PHILADELPHIA CHICAGO BOSTON SAN FRANCISCO timmnimummumummmmunmlimmummumnonnmnimmiummummmimnmumommummmimmmommmnumminmmott.