Evening star., 1932-03-29
INVESTMENT TRUST
POLICY ANALYZED
Sales Not Considered Vital
Factor in Stock Market
Drop During 1881.
Special Dispatch to The st.r.

Special Dispatch to The scar
NEW YORK, March 2S--A compare
tive analysis of investment trust port
folios hardly supports the contention
that investment trust liquidation was
an important factor in the stock market
decline of 1881, according to Frazier,
Jelke & Co. At the end of 1881 the
ownership Of a group of investment
companies in 162 selected stocks aggre-
gated 10, ,487, ,855 shares, compared with
IL ,583, ,959 shares at the end of 1880.
AT the close of last year combined hold
ings of the same companies in 90 diff
ferent stocks aggregated more than
100000 shares. compared with 81 stocks
in the 100000 share group at the end
OF 1880. Combined ownership aggre-
gated $4,000 shares in "a issues, against
"a issues at the close of 1880
Probably fixed trust liquidation in
stocks on which dividends were omitted
was substantial the survey points out,
but there are no statistics to show its
probable exent.
Much Switching Noted.
Consolidated Gas of New York has
replaced American Telephone as the
favorite stock of investment trust man
ayers, but the latter maintains second
place, with General Motors and Ma
tional Dairy Prsducts tied for third
choice. Other issues favored by at least
Is of the IS companies are American
Gas & Electric, Public Service of New
Jersey, General Electric, Pacific Gas &
Electric. Southern California Edison,
United Gas Improvement, Electric Bond
& Share, American Can, Borden Co.,
Drug Inc, Electric Power e. Light,
United Corporation and United Light &
Power A.
The survey reveals Cd an unexpect-
edly small decrease in the number of
common shares held; (2) q prejudice
of Investment trust arrangements against
railroad, mining, oil and bank shares;
90 an increased demand for invest
ment yield; "a less interest in more
speculative stocks, and 60 a large
amount of. switching during the past
year from issue to issue and group to
group.
Union Pacific has replaced New
York Central as the most popular rail
and Consolidated Gas is substituted
for American Telephone and Telegraph
as the most frequently held public util-
1ty: General Electric regains its 1929
standing as the leading industrial,
distinction temporarily taken from it in
1880 by United States Steel. In the
metal group International Nickel has
become more popular than American
Smelling, while among food stocks Ma
tional Dairy Products is now more
widely held than Borden. Safeway
Stores is owned by more investment
trusts than Woolworth. Loew's, Incor-
porated, quite logically takes the place
of Paramount -Publix as the first choice
of trust arrangements in the amuse-
ment field" says the survey.
Some of the Favorites.
"The following stocks are among
those owned by more trusts at the end
of 1881 than in 1880: American Light
and Traction, Chrysler, Drug, Incor-
porated: First National Stores, General
Foods, Guaranty Trust, National Dairy
Products and United Gas Improvement.
There is decrease in the number
of investment trusts owning the follow |
ing stocks: Aluminium Co., American |
Power and Light, SAsnerican, Radiator |
and Standard Sanitary, American |
Smelling. American Telephone and |
Telegraph, anaconda, Atchison. Baltl- |
more and Ohio Chase Bank, du Pont, |
Eastman Kodak. Electric Bond and |
Share Electric Power and Light, First |
National Bank Of New York, General |
American Tank Car, international Tele- |
phone, Kennecott Copper, Kresge, |
Kreuger g. Toll, Liggett d Myers |
New York Central, Proctor and Gamble, |
Radio Corporation, Southern Pacific, |
Southern Railway, Texas Corporation, |
Union Carbide, United States Steel |
Western Union and Westinghouse |
Electric
Most of the investment trusts, eSpe- |
cially the larger companies, now main |
tain extensive research organizations
and analyze securities and situations
carefully before buying or selling. The !
preferences indicated show well de- |
fined trend in the Investment thought !
of an important group OF experts