Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-20
UNITED FOUNDERS
REPORT ANALyzED
Document Reveals Change in
Investment Policy Follow
ing Market Break.
BY CHARLES z. sPEARE.

Special Dispatch to The Star
NEW YORK. January 20.-Because
OF the size of its assets, amounting to
over $50, 1000, 900, and the number of its
shareholders, who represent an army
OF more than $1,000 investors, scattered
all over the United States, the annual
report of the United Founders Corpo-
ration has attracted much attention.
III comes at time also when there Is
great interest in discovering how the
american Management Trusts met the
nrst test in their history and the de-
gree to which they have shifted their
portfolios in line with changes estab-
lished in different groups of securities
10 wan Street this shift was the
most interesting feature of the report
as II provided an index to the attitude
OF large body of trained observers and
Statlstlclans on the future trend of Diff
ierent classifications of stocks. The
United Founders portfolio is divided
INTO five different groups of stocks
namely, public utilities, railroads, in.
Surance companies, investment COM
panles and industrial and miscellaneous
Snares. In each one of these the cor
poration holds substantial blocks. The
comparisons as to ownership are as Of
May 81, 1880. when the last previous
report was published. and November 30
Wnlcn represents the end of the COM
pany's fiscal year.
Shift In Holdings.
This comparison indicates that I'm the
SIX months period United Founders re-
duced its holdings in such stocks as
american Telephone & Telegraph. Bell
Telephone of Canada. Hydroelectric Sc
curities, International Telephone &,
1eIeQTAnh SQahnord
Standard Gas q Electric and Western
Union Telegraph. II increased its in
vestment in AmeriSan Superpower
american Water Works, Columbia Gas
q Electric, Consolidated Gas, Electric
Bond q Share, Electric Power & Light
racine Gas 81 Electric, Public Service
OF new Jersey, Southern California Edi-
son. SCanoard Power & Light, United
Corporation. United Gas Improvement
ana United Light & Power. It held
4SI:652 optional warrants of the Public
Otlllty Holding Co. which were not on
the May 81 list. VA
IN the railroad group substantial re-
uuctlonS were shown in the stocks of
p me Anegnany Corporation. Atchison,
Fennroao corporation and Union Pa
CHIC. increases were made in the shares
Oh tne Baltimore & Ohio, Bangor a.
ArooStook Canadian Pacific. Erie Ie-
nigh Valley, New York Central Nickel
Fiale, southern Pacific and Southern
Railway.
In the insurance company share Troup
tne most important changes were In
creaSeS in insurance shares MANAGE
ment stock from 10000 to over "a i|01
SHARES and In Maryland Casualty stock
from 1852 to 81 900 shares. In invest
ment company stocks large reductions
TOOK place in the holdings of CHICAGO
CORPORATION, Chicago Investors, Con-
tlnencal Shares and Continental.
WIN important increases In North and
OF sterling securities and United Ma.
tional e~ ave"
Change in Policy.
Inc most significant change in the
investment policy of the Coronation
Is 10 be found in its industrial list hold
lngs, Wnere there have been sharp re.
auctions in copper and oil stocks hut
new investments in such prominent is
sues as General Electric, General Foods
5enerai Motors, American Smelling a.
rSennlng, 5. s. Kresge, Liggett q New
ers, Sears Roebuck, United States steel
ano warner Pictures. While the COM
pany reduced its line Of MONTGOMERY
ward stock. it purchased 5000 shares
OF sears Roebuck. Against decrease
from 10000 shares in Nav to 10 ann
Snares in November or WESTINGHOUSE
Electrlc was the initial purchase of
1890 shares of General Electric. The
largest addition to the industrial list in
tne active group was a 10,0OO-share lot
OF General Motors common.
Inc total depreciation shown by
Onlted FOUNDERS holdings on November
SO, was $77,629,972. Considerable in
!erest was taken in the figures of gross
income for the year. amounting tn SI0-
oo8,2l7, OF which approximately 10 per
cent was from interest and dividends
on securities owned and 80 per cent
from profits on the sale of securities
me size of the latter item was a sur
prise In view of the general shrinkaee
IN securities during most of the last
(CopyriRht. 1921