Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-11
INVESTMENT TRUST
BOOKS ARE OPENED
United Founders Good Exam
pie of Trend of Concerns
Operating Today.
Ely JOHN T. SINCLAIR.

Recently Groucho Marx OF the Marx
brothers. in a communication to the
writer asking information about GER
tain investment trust, said:
Il understand that only 10 men in
the world understand Einsten'S theory
of RELATIVELY Well, that's about twice as
many as understand this investment
trust business"
But the day of the complex, involved
stock juggling investment trust, with its
concealed portfolio, is fast drawing to
a close.
Today the United Founders Corpora
ton one of the largest investment
trusts in the United States. opens up
its portfolio to the world. 1t gives the
most exhaustive report of its securities
that probably has ever been given by
an American investment trust
The list a most impressive one shows
total investments, at market quotations
on May 81 last, of S286, 1924 900. OF
this amount, 676i6 per cent Is invested
in the United States, 1923 per cent in
the British commonwealth of nations
1906 per cent in continental Europe,
].3f7 per cent in Japan and other
Asiatic countries and the balance is IN
cash.
Book Value of Shares.
The book value of the common shares
of the corporation on May 81. ellmInat-
ing all intercompany holdings, was
$21.4l per share.
If intercompany holdings are not
eliminated, the market value on May
81 last was S2774 a share.
The earnings for the six months end
ing May 81 per common share, on the
average number of shares outstanding,
was n cents, while the equity per COM
mon share was computed at 10 cents,
The market today for United Found
ers common is not plugged" 1t is not
E,so
itself is not buying its own stock. The
common stock closed yesterday at $40
share.
while many investment companies,
both in the United States and Great
Britain, have not published in detail
their investment holdings on the ground
that competing companies might obtain
the benefit, without expense, of the in
,vestments made upon the recommends
ton of an extensive statistical organiza-
ton, the United Founders Corporation
decided TO publish complete list of its
holdings to its stockholders following
the practice recently adopted by the
New York Stock Exchange" says Presi-
dent Louis H. Seagrayes, in his letter
to stockholders.
There is a well founded rumor that
the next big step of United Founders
Corporation will be in the field of bank
ing But officials of the company yes
terday refused to confirm or deny it.
The growth in savings deposits in
New York City for the six months
which ended June 80, is hopeful sign.
On that date Manhattan Savings
Bank reported savings deposits of ST.
.l96.000,000, a gain of S5,406,000, over
the same period of 1929, when a loss OF
sS2911000 in deposits was reported.
In the Bronx, for the same date, four
savings banks reported 1922, 937 900, a
gain of $357,000 for the first six months.
Thousands of new depositors are
opening savings accounts in the savings
banks every week. Why?
People are more careful with their
money now" said John j. Pulleyn, pres
ident of the Immigrant Industrial Saw
lngs Bank. They are going along cheer
fully putting their reserves in savings
banks, showing prudence rather than
fear"
Another reason attributed by this
banker to the increase is the low rate
paid on commercial deposits-112 to 2
per cent-whereas 4 to Az per cent still
rules in all the savings banks.
But the fact that the savings deposits
are rising appears to many as sign
that the banks have turned the corner,
and from now on deposits will show an
upward tendency.
Il The decrease of 81 per cent in the
cotton acreage sown for 1880, as COM
pared with 1929, means little, one way
.Or the other In view of the present
situation, curtanment of at least 10
per cent might give real hope for
better cotton prices.
A report that the cotton carry-over
snto the new year, beginning August /,
will be about 4,o0o,0 600 bales is probably
an underestimate. Some place the fig
ure at 100000 bales Probably fig
ure somewhere between these two fig
ures is about right. If so, it means
carry-over of 100000 bales more than
a year ago.
The figures show that the world spin
.ners' takings for the first l months-up
to July Amounted to 13,238,000 bales,
as against 1882, 600 bales a year ago.
: It is such a situation that has brought
THE price of July cotton, which last
tSeptember sold as high as 20 cents
ipound, to Is cents pound, dltterence
of s35 bale.
what will be the attitude of the Fed
eral Farm Board in the matter? VIII 1t
attempt to protect the market? So lar
the board has said nothing.
But its announcement must be mace
soon.
Europe is to try mass production.
Witness the record-breaking machinery
export from the United States for the
first five months of this year.
With nearly every industry reporting
a decline in exports, machinery exports
show S27O 781 900 for the first five
mcr ms, as compared with S255, 100000
for last year, a per cent increase.
= But what kind of machinery is Eu-
rope buying? Industrial machinery ex-
ports from the United States to June l
totaled $l16,248, 900, as against SILL
100000 for last year, per cent in
crease.
Russia is strongly in the picture, She
Is specializing in agricultural industry
But the Soviets are importing large
quantities of electrical machinery, too
Machine tools exported expanded So
per cent over last year, agricultural ma
6chinery II per cent, road machinery
so per cent and oil well machinery p
per cent.
Yes, Europe has taken up the ma
3chine. She has seen America grow pros
porous by production methods, anc
she is importing as much machinery as
she is able, so that she may do likewise
Prospects are excellent for the ma
chine export business for the balance
of the year, probably for several years
A new era of prosperity for Europe
may be the result.