The Washington times., 1930-08-01
TRUSTSGROWTH.
TOLD IN REPORT
BY WASHBURN
New York State Official Shows
Giant Growth Of Trusts
Dealing in investments

The giant growth ofinvestment
trust companies, which, on March
81 last. numbered 270 in the
United States with total resources
of more than four and one-half
billion dollars, Is shown in q
report forwarded today to Attor-
ney General Hamilton Ward by
Watson Washburn, assistant at
torney general in charge of the
New York State bureau Of Securi-
ties.
The report was prepared by
Frank j. Meehan, statistician for
the State bureau of securities,
and Is an analysis Of replies to
queStionnaireS sent out during
May to all the 270 companies.
In forwarding the report to the
attorney general. Mr.. Washburn
said that a statement concerning
it would be made within a few
days.
OF the total number Of 27O
companies. 169 are located in
New York State, the report
shows, most of these being in
the city. Thirty-six are in New
Jersey; 81 in Massachusetts,; Al
IN other States and three in
Canada.
Only six Of the existing com.
panieS were formed prior to 1920,
and the report states:
1T will be of interest to YOU
to learn that 16S, or 62 per cent
Of the trusts under review have
commenced operations since the
last investment trust investiga.
tiOn was made by this bureau
in the fall of 1927.
10 Made Short Sales
OF the 227 management com.
panies," two have resources be.
tween 200 and 300 million dollars.
and eight have resources between
100 and 200 million dollars.
On December 81, 1929, total re.
sources for these companies
amounted to $4,473,245,775, and
on March 81, 1880, this had in.
creased to $4,573,936,6 ,693. Net as
sets for the group amounted to
$4,223,211,761 on December 81
last, and on March 81 to $4,331,-
456, ,461.
Only 10 Of the entire number
OF companies in the survey re-
ported that they had made short
sales OF portfolio securities.
The report reads, in part:
Each company was required
In answering the investment
trust QUESTIONABLE to state
whether or not it disclosed its
portfolio to shareholders, and If
so. how often. One hundred and
seven companies reported giving
this information to stockholders
annually or more frequently.
Thtrty.eight companies stated
that they disclosed the contents
of their portfolio to stockholders
at stockholders meetings or
upon demand. Eighty.five com.
panies reported that they either
did not disclose their list of Sc.
curities to their shareholders or
that only q partial report was
made.
1851, ,676,O62 Drop
"On December 81, 1929, 43
companies reported apprecia-
tiOns in the values over cost of
their investments in portfolio in
the total amount of $19O,2O4,-
S2S. On the other hand, ITO
companies reported lowered
values below cost in said port
folio in the amount of $451, $780,
$50. Deducting from the above
figure, the appreciation reported
as above, the net depreciation
was $261, SIG, ,O62.
"On March 81, 1880, 81 com.
panieS reported portfolio depre.
Citations of $118,2O5,O43. At the
same time, lis companies re.
ported appreciatiOns in the
amount Of $4S2, ,S37 $3.50, deduct
ing the above $118,2O5,O4S Of
depreciation, the net apprecia-
tiOn in the combined portfolios
of the group amounted to