Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-11
INVESTMENT TRUST
RULES MORE RIGID
Exchange Acts Quickly to
Require Stricter Reuula-
tons to Protect Public.
ey JOHN +. SINCLAIR.

NEW YORK. May IL IN. a. N. Al
The international Chamber Of Gem
rrs~ce closed its meeting in Washing
ton With q formal resolution in which
n declared war the greatest barrier
10. social and economic porgress," and
demanded that ornaments be reduced
to the lowest possible limit.
In the clause referring to war deots
and .reparations the American repre-
sentatives accepted 9 suggestion that
fhese be studied in the light OF
changed economic conditions.
The resolution also warned against
tsrf walls which are discriminatory
and, cbstruct the free play or world
trade.
Franz Won Mendelsschn Of Germany,
grandson Of the famous composer,
Speaking from Berlin. asked for world
co-operaticn at this time when "busl-
ness Is in extraordinary straits.
The depression is Worldwide ara
It will take worldwide .co-operauon 70
bring recovery. so let's work tcgeth-
er," was the plea OF the new president.
The New York Stock Exchange has
acted quickly upon the suggestion OF
its president Richard Whltnev. III
adoptinr stricter regulation for invest
went trusts. The public has too long
tions using such titles. Not only nave
su-e-.e-- suffered, but a stigma nas
been cast on the business OF honestly
managed firms -.
rnittee on stocks win thoroughly scru-
tinize the statements, advertising. port
folios and terms OF every ,.i lnves'ineh'
IN performing this service the eX-
change has taken the first step to curb
urethical practices by shady investment
trusts with reliable Information avail
able TO the public. the opportunity to
study the standing Of each trust before
giving it custody Of funds has been
made possible.
The Committee on Railroads ap-
v,oiy,ted bv the six Governors OF the
New England States TO consider the
railroad situation in that section want
the FennsyIvania interests In the New
Haven and Boston & Maine roads cut
10 per cent and the two lines merged.
The argument advanced by the COM
g-,ittee brings up the issue Of outside
control Of State utilities. In the case
of these two roads the welfare OF the
territory served by them cannot now
receive first consideration because OF
tbs weight of the Pennsylvania Rail
roads holdings.
IL mas DGGn asserted lI1Gt Lltc
mount power In our governmental and
social life today Is economic rather than
political. It l. small wonder, then. that
4 group of States like the New Eng
land group should resent the intrusion
Of economic control from Pennsylvania.
In this particular case it appears Is
though the Pennsylvania Railroad viii
be requested or compelled to reduce her
holdings and the two lines merged. The
savings resulting from this action are
estimated around $3,1o0,000 annually.
The opposition Of the Pennsylvania TO
the merger demonstrates that the. clash
of economic interests can be as waste
tul for the public as political battles.
And, in the lat analysis, the consumer
always pays tbs bills.
In q speech before the American Club
IN Paris recently. T. A. Lebretcn. Ar
eentinas Ambassador to France, said
1T has been known for q long time
that the price of wheat. rather than
gold. establishes the relationship be-
tween all exchange values. 1t follows,
therefore, that II we arrive at. a rea-
scnable balance in the world price Of
wheat all other economic factors will
find their normal level"
Senior Lebretcn advanced this novel
theory Of exchange prices In connection
with q plea for q real solution at the
coming World Wheat Conference in
London next week, in which the United
States will participate.
Many will not care TO 20 the whole
way with the Ambassador in his line Of
reasoning. but any attempt on the part
of those who arc able to gain respect
ful hearing 10 remind the public that
the basis of world trade is goods rather
than gold alone merits praise.
There Is a large element Of truth in
Senior LebretcnS statement. Failure of
the conference will have disastrous re-
suits. not only for wheat producers, but
On the producers and consumers Of all
other commodities. But to peg" the
price of some products and not others
seems bad strategy. Thomas L. Chad
bourne may be successful IN sugar ra-
tionaliZation but wheat peggtng so far
has proved disastrous 10 every person.
corporation or nation which has tried 1t.
Investment trust leaders have had
their hands full in the past 10 months.
since the stock market crash. Before
that there were scores Of them that
looked like the coming national lead
ers. Now the number that have come
out with enhanced regulations are COM
paratively few.
One Of the lucky ones in this regard
L. Earl Bailie, president Of the Tri-
Continental Investment Trust. which
was formed by J. & ". Seligman s, Co.
well known New York investment
bankers.
II was In 1919 that Earl Baltic was
induced 10 retire from the active prac-
tice Of Law to Join this banking hrm.
When the boom days arrived. Tri-Con-
tirental was formed under Mr.. Baltic {
supervision, backed up by one OF the
most alert research STAINS Of any trust
Investment trusts have been reluctant
30 give out a list OF their assets since
the crash. The losses have been stu
pendous But Tri-Continental. under
the Bailie direction. announced in big
head lines last March Lnat its assets, At
market value. stood at $77.000,0 600. As
against 2s3. o0o.o o0 year ago. That
statement would have looked bad be-
fore the boom declined, but II looks well
today. It's not how much proft one
can make in these times, but how well
one can conserve his assets that counts
Perhaps that's why rhe Selected IN
<ustries. another investment trust
formed about the same time. with the
backing Of r. J. Reynolds, tobacco
rrasnate. decided recently to turn IT.
MANAGEMENT entirely over 10 the Ballle
nrca nization This company, IN at'
latest statement given last January, nae
an asset value of $40, 100000. as against
an original cost Of s66.oo0, 600.
Earl Battle is 2 graduate NJ the Uni.
vereity Of Minnesota and the HarVato
Law School. ard Is now in MS carry aus