Evening star., 1932-11-24
PROSPERITY SEEN
FOR CONTINENTAL
Baltimore Receivership Hear
ing Told Nature of Shares
by President.
Nv the Associated Press.

BY the Associated Press.
BALTIMORE, November 24.-Testi-
flying at the receivership hearing OF
Continental Shares, Inc in Circuit
Court here, George T. Bishop, presi-
dent OF the concern, yesterday said
when prosperity returns, it will come
very fast to Continental" because it is
interested in fundamental industries. :
Bishop was defense witness against
the petition of George L. Gugle Of Co.
lumbus, Ohio. to place Continental
Shares, a Maryland corporation with
Offices in Cleveland, in receivership.
The hearing was adjourned late yes
serdev unfil Monday
Bishop e.4ksr 20 have the large inter-
ests Of TIC company thrown upon the
market and widely distributed among
small stockholders would be destructive
to the Industries of which the company
is stockholder.
"If Continental Shares stockholders, !"
Bishop said, lever realize anything.
they must recognize that the large
holdings of Continental Shares are in
trinsically of immense value, and if
banks continue to carry us as they
have, an improvement in conditions
will greatly benefit Continental Shares
and its stockholders.
Question of Values.
"The value of stock owned by Cont
mental Shares chiefly in fundamental
industries cannot fairly be estimated
at present market values because Con-
finental Shares has an opportunity to
participate in the affairs of those in
dustries, and if such participation is
wise, its holdings will become immensely
more valuable"
Questioned concerning four Cleve-
land bank presidents on the board of
Continental Shares which the petitioner
charges conttol the board and are only
interested inl securing the payment OF
loans by their banks to the company,
Bishop said:
1.-The four bank presidents on the
present board have leaned over back
ward to serve Continental Shares.
When they went on the board their
loans were amply secured. They went
on to serve the interests of Continental
Shares and not the interests Of their
banks.
"If they had not been on the board
other banks twould not have been as
lenient with Continental Shares as they
have been"
The four bank officials on the board
were named earlier in the day by Has
sci Tippet, testify.ng for an accounting
firm, as Wilbur M. Baldwin, president
of Union Trust Co. of Cleveland;
Harris Creech, president of Cleveland
Trust Co.; j. Arthur House, president
of Guardian Trust Co. of Cleveland,
and Corlis E. Sullivan, chairman of the
board of directors of Central United
National Bank of Cleveland.
Extension of Loan.
Bishop pointed out he had obtained
n six-r1onth extension of $1,000, 900
loan payable to IA banks, and although
no definite extension had been granted
by the Chase National Bank in regards
the loan due it, it has not pressed
Continental Shares for payment.
Bishop and three others became men,
bers OF the board of Continental Shares
in December, $780, four former associ-
atas Of Cyrus S. Eaton, founder of the
company, resigning to make this pos
sible. During the following April Eaton
and his remaining associates and one
of the new members of the board re-
signed, the four bank officials filling
their places.
Is g;xH revealed at the hearing Conti-
mental Snares is the largest single stock
holder in four rubber companies, which
represent approximately 70 per cent of
the rubber business in the, United States,
and also held controlling interests IN
steel concerns representing so per cent
Of the steel business in the country. In
addition, 1t was said, the company has
large investments in public utilities.