Milford chronicle., 1956-04-20
AMERICAS EDITORS POLLED ON
STOCK SALES


American lndustrys need Tor money -
huge sums of money-to expand and inn
prove the plants and other facilities that
provide goods and services is all but insati
able If that need is to be adequately met,
most economists agree, much of the money
must come from the sale of stocks in our COR
porations This means, in turn, that more
and more people must become shareholders
in American enterprise
A short time ago the editors of Industrial
News Review, of Portland, Oregon, felt that
it would be productive to poll Americas
country press on questions concerned with
stock ownership the functions of stock ex-
changes, and kindred matters. One reason
for that belief was that, if the ranks of stock
owners are to be materially increased, many
of the new investors must be residents OF
the rural areas where so much of this coun-
try's population wealth and resources are
concentrated. Another is that country edi-
tors, with their tens of millions of readers,
make up an extraordinarily influential
group
A QUESTIONABLE was prepared and mail
ed The response was excellent-more than
1900 editors gave their views. And sum-
mary of these views is of general interest
and Importance in this age of unprecedented
industrial development and progress.
The first question pointed out that there
has been an increasing number of shareown-
ers in corporate industry, many of them peo-
pie of moderate means, and asked if this
is constructive trend?" The affirmative re-
action was sal& rtelt cunanj Heass with ALMOST.
SO per cent of the editors saying Yes.
The second question pointed out that less
than two years monthly investment plan
for buying stock was inaugurated, and asked
if this pay-aS-yOu-gO method should be en-
couraged More than 95 per cent said Yes
many on the grounds that this provides op-
portunity for people who would not or could
not invest if full cash payment were required.
!, Another question involved double taxa
ton of stock dividends-first by the corpor-
4 ation,tax and second by the individual in
come tax. More than 83 per cent of the edi-
tors stated that this double tax was unfair
and believed that change should be made
Still another question asked if the stock
exchange "s an essential link in securing
capital to provide jobs for our growing labor
force?" Just under "a per cent of the editors
replying said Yes.
Another question pointed out that cor
porations have been going into debt to f.
nance expansion-and that interest on debt
must be paid in good times and bad. 1t then
asked if it would be healthier to rely more
on stock issuance for financing, in that divi-
dends are usually paid only when earned.
Here sentiment ran about three to one-with
rs per cent favoring stock and "a per cent
debt financing.
A question of very great public interest
asked whether the many laws and regula-
tions designed to protect investors are ade
quate There was a considerable difference
of opinion here-about SO per cent said Yes
and 81 per cent No 1t is worth recording
that number giving the No answer did SO
on the grounds no law can safeguard people
who lack good judgment and are OF a gull
ibe nature.
Finally, this last question drew a signif-
cant response: 'ln the past, surveys indicat-
ed that stock exchanges set prices and were
financially interested in securities traded, in
stead OF merely providing meeting place
for buyer and seller. Do you think this inn
preston still prevais?" A majority-over
so per cent-said Yes This indicates that a
great deal remains to be done to inform the
public as to just what stock exchanges do
All in all, the replies showed that vast
majority of country editors strongly believe
the base of stock ownership should be broad
ened. That is certainly matter of top i'm
portance-in the light of the fact that some
authorities believe that ultimately we should
have 40 million or more shareowners, as
against an estimated rs million now.
~~~>e~&
THE PRICE OF A NEWSPAPER STRIKE
news story of general interest is high
lighted in an Associated Press release from
East Lansing, Michigan: "The bureau of
business research at Michigan State Uni
versity reported i. that Detroit stores lost
S35 million in sales in December because of
the city-wide newspaper strike there. The
bureau said its conclusions were based on
state sales tax returns from Detroit as COM
pared with the previous December and with
sales tax returns from Detroit suburbs"
The strike lasted we'll into January but, the
AP said, only December sales were counted
in this survey.
Nothinv can raplace the newSnaner for