Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-04
data ON INVESTMENT TRUSTS
FREELY GIVEN TO INVESTORS
Various Companies Have Been Quick to
Supply Information On Their
Holdings and Assets

and certain amount Of secrecy con-
corning the contents Of and the peri
odic shifting in the issues in their port
folios. Those that have been listed
on the New York Stock Exchange must
follow prescribed formula which per-
mits the investor in their shares OPP
Dortunity to value them equally with
| the securities of other types of corpo-
rat.ons that have stock exchange priv
leges. Consequently, it is felt that
there is not much additional !nforma-
ton OF a worthwhile nature that can
come out of the present investigation
by the State authorities
One requirement Of the newest In
,dustry is for a balance sheet as Of De-
cember 81. 1880, and June 80. 1891,
with profit and loss statements for the
calendar year 1890 and for the six
months ending June 80 last. It would
be more valuable to the holder Of the
4 management trust shares If the reports
were as of July 81 rather than June 80
inasmuch as the changes in security
values were considerable during July.
when all securities deprecated heavily
as compared with prices at the end of
June. During August, however, stock
| lists remained almost stationary mas
much as few of the investment trusts
carry domestic bonds in their portfolios
! the decline in bond values last month
would not materially affect their
position.
Management Trust Shares.
The interest in management trust
shares has been at low ebb during the
greater part of this year. There has
been little public demand for facts about
their operations. Most of their stocks
continue to sell we'll below their book
values. just as they sold much above
these values two years ago this month
when the peak of their market per-
| Torrance was realized. 1t is under
stood that there has been some shifting
of securities and considerable liquida-
| ton of railroad stocks, although as a
class rails" we're in least favor of any
group with the trusts that played the
most conspicuous part in the 1929 mar
! ket. Industrials and public utilities
have always represented high ratio of
their investments. Stocks that have
been solo have been replaced in some
| instances by shares of companies that
| appear to have a better outlook than
those that were formerly held. though
the practice of many trusts the last six
months has been to increase their cash
! accounts and hold them intact until
such time as they are convinced that
! the stock market is purchase for
! long-term investment.
! 1t is estimated that the depreciation
/ in the total security holdings of man.
agement trusts compared with their
cost prices in 1928 and 1929, is be-
tween so and so per cent.
Cumulative Feature.
1t is learned today that owing to the
tax situation one of the large dis
tributors of fixed trust shares is pro-
posing new series to be offered to the
public. There are also several other
trusts in the same classification that
are planning the ADOPTION of the Gu
mulative feature as the one they be-
lieve will have most favor with the
public. The persistent reduction and
omission Of dividends on stocks held
by fixed trusts is resulting in consid-
cradle shifting of holdings where this
is permitted under the contract. as well
, as the payment of smaller dividends on
the fixed trust shares themselves. The
dividends on nearly one-third OF all of
the stocks owned by one of the largest
| fixed trusts have been reduced in the
last IL months. This subtracts a size
| able amount from the income applicable
to that trusts dividends.
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