Evening Star Newspaper, July 9, 1930, Page 12

A—12 TRUST PORTFOLIOS ARE DEPRECIATED Values of Securities in Invest- ;> ment Concerns Show De- creases in Reports. Bpecial Dispatch to The Star. NEW YORK, July trusts, in_which the public has put Tearly ‘$5.600,000,000 in the space of about three years, are making reports covering operations for the first half of the year. A number of such state- ments have made their appearance in the last few days. As we expected, the majority reveal & further depreciation in value of se- curities in their portfolios cember 31, 1920. At that t average decrease in value of portfolios | below market cost was 10 per cent. In most instances statements as of June 30 show about a similar per- ‘centage of depreciation since the first of the year. However, since the con- tents of portfolios have undergone ma- terial change in the meanwhile it is not possible to say what the percentage of depreciation has been with, say, a year ago or last Autumn. In the case of one trust wk period of nine months, amounted to 12 per cent. Probably in the majority of trusts the rate of de- | crease in value below market cost has | nine months, | been greater in the I Selling at Heavy Discounts. Reflecting that depreciation in value of as: investment trust shares are selling at heavy discounts. Seventy to 80 cents on the dollar is about the gen- eral run of market values of trust | issues, while in certain instances th are at much wider discounts. Many of those issues were marketed at pre- miums during the speculative craze last year. Discounts from subscription prices, therefore, are greater than 20 | to 30 cents on the dollar. The shrink- age represents the loss which the pub- lic has suffered on its trust invest- ments. A billion dollars is probably a low estimate of the aggregate amount of that loss. o As assets of trusts have not shrunk in proportion, trust shares are selling as a Tule below their actual book value and therefore are better bargains than they were when issued. However, as the fu- ture of the stock market is not yet as- sured, it might be premature to advise July 9 9. — Investment | compared | buying investment trust shares at even current low prices unless the investor is dealing with experienced management. Of the 700 investment trusts in this country, only a handful have a back- | ground ‘of successful operation over a period of years. | Investment trusts are under fire of | further investigation. No sooner had the attorney general of the State of New York announced completion of his | investigation of companies operating in this State than the Interstate Com- | merce Committee of the House of | | Representatives started another more comprehensive inquiry, in the course of | which questionnaires have been sent to | about 700 trusts all over the country. | Only 250 were covered by the New York State investigation. | | Protective Investor's Interest. | What the New York attorney general | sought to protect was the interests of | the investor. In the case of the House | | Committee, it is not the investor's in- | | terest that is in mind, but the control | |of Washington over the railroads. Investment trusts have . invested | heavily in railroad stocks. Washington secks to find out whether any com- panies.are operating under sponsorship of banking groups or railroads to con- trol railroad properties without author- ization of the Interstate Commerce Commission. The investigation already has disclosed that only about 100 in- vestment companies are interested in railroad stocks to any extent. Probably t will eventually show that only a hand- ful of those 100 can be classified as raflroad holdings companies formed to effect ownership of railroad properties | and as such should be under jurisdic- | | tion of the Interstate Commerce Com- | mission. [ | | INGOT OUTPUT DROPS. NEW YORK, July 9 ()—Based on figures from companies which made | 94.27 per cent of open-hearth and Bes- | semer steel ingots, the American Iron & Steel Institute estimates the output | of ingots of all companies for June at | | 3,440,239 tons, a daily average of 137,610 | tons, compared with 4,034,778 tons, or & daily average of 149,066 tons in May, and 4,902,955 tons, or a daily average of 196,118 in June last year. Out- put for the months ended June 30 was estimated at 23,793,199 tons, a daily average of 153,505 tons and 76.67 per cent of rated capacity, compared with a total of 29,036,274 tons, a daily average of 187,331 tons and 95.52 per cent of ca- pacity, for the like period last year. CANADA DRY PROFITS. NEW YORK, July 9 (#).—P. D. Say- lor, president of Canada Dry Ginger Ale, says that profits of the company for June exceeded those of June last year and that the next few months are expected to bring better busines: 1319-1321 THE EVENING STAR, WASHINGTON, PLANS NEW FINANCING Consolidated Gas $7,500,000 Issue to Be Forthcoming Soon. Special Dispatch to The Star. BALTIMORE, July 9.—Plans for new financing by the Consolidated Gas, Elec- tric Light & Power Co. of Baltimore in the form of $7,500,000 of first refunding mortgage sinking fund bonds bearing 4'; per cent coupons were announced yesterday. The issue is to be forthcom- ing within a short time, according to | bankers in charge of the matter. It is understood that the bonds are to be offered at 981, to yield 4.58 per cent. The syndicate, headed by Aldred & Co.. which will float the issue, is to be composed of Alexander Brown & Son, Lee Higglnson & Co., Brown Bros. & Co., Jackson & Curtis, Spencer Trask & Co., and Minsch, Monell & Co. BROKERS CHEERFUL Sentiment in Wall Street Is Bet- ter Following Lists Advance. Special Dispatch to The Star. NEW YORK, July 9.—Brokerage sentiment today was slightly more {cheerlul than it has been for the past | week. This may be due to the action | of the market itself, for it was signiii- cant that volume Increased Tuesday as the market rallied. Such a development may have been brought about by short covering induced by reports of the formation of a huge bull pool. Every closing for the last eight sessions, Tues- day excepted, has been characterized by | selling pressure. : e g ‘The musk ox which lives in the Arctic regions is the farthest North animal. OF THE ' NION TRUSTCOMPANY DISTRICT OF COLUMBIA VISITORS here in Washington find at the Union Trust Company—conveniently accessible in the center of the business district— complete facilities for handling their financial transact with a spirit of ions promptly, together courteous, personal ser- vice which they have been most generous in approving. We consider it a privilege to serve our community’s guests. F Street STETSON HATS BOSTONIANS Shoes for Men 2% paid on Checking and 3% on Savings Accounts SOUTHWEST CORNER v FIFTEENTH AND H STREETS NORTHWEST EDWARDJ.STELLWAGEN PRESIDENT Close Saturdays 2 P.M. Desperate Measures —but simply for the purpose of closing out the lines on hand that we may start new seasons with new stocks. 45 and Busiriess is good with us .. .. has been right along ... because we’ve offered wonderful yalues. Here, now, are still greater bargains. We Have Selected 485 50 Suits and marked them D Both One and Two Pants Fine Flannels Imported Woolens Unfinished Worsteds Suits for this hot weather and suits for the cooler months. ¢ Every desirabl shown this year, plete. e color that has been and sizes are com- Quite a selection of sports suits of coat, vest, long trousers and knickers. -+ $25 Tropicals The very finest grades of tropical worsteds; perfectly tailored. $.l 6' ] $20 Sports Coats Both Camelshair and shades of brown, tan a; Flannel in nd blue. $] .50 $9 Flannel Pants Plain white and with neat stripes. § 7-50 $9 Flannel Pants These are solid color brown. in tan and $3.95° Hot-Weather Suits Palm Beach and Linen Our entire lines of “Nuroteai,” 3 1 2. 50 8. Linen Knickers Full plus-fours of fine Irish linen. ‘2 .95 X D.:C. WEDNESDAY, JULY 9, 1930. |F THERE is anything to the idea that “practice makes for perfection” . . these figures clearly reveal why Thompsen's stand foremost in cater- ingto the appetite.’And the same fig- ures argue impressively of the fact that you may be missing something "if you are not among the 200,000 Men and Women who patronize Thempson's daily. On an average, Thompson's served two meals every . second during the year. This tre- mendous purchasing power enables Us to buy to exceptional advantage. We establish qualities by expert and scientific methods. And main- tain our higher standards by exact- ing supervision. Naturally you save money .. and enjoy finer food quality .. every time you eatin Thompson's. 122 THOMPSON'S RESTAURANTS SERVING 42 OF THE PRINCIPAL CITIES OF THE UNITED STATES EFFECTIVE JULY 14TH Private Bedrooms on the Liberty Limited to Cbz'cago. .. at little extra cost HERE is a new travel luxury offered by the one of America’s Liberty Limited . . . most famous trains. F You can enjoy a private bedroom, equipped with a real bed with box springs and mattress —convertible by dayintoa comfortable lounge, and for this added comfort and privacy you pay only one-quarter more than the regular fare—plus the cost of two lower berths. It is equipped also with an upper berth which makes it possible for two people to conveniently located Thompson's in Washington 1109 Pennsylvania Ave.N, W, 1345 Pennsylvanie Ave. Ninth and E. Sireets a0 occupy this room for the cost of two tickets and of two lower berths. These private bed- room cars for single occupants only are also and Boston. Appalachians. fast trains to St. Louis. SWIFT LUXURIOUS FLYERS to Chicago LIBERTY LIMITED Leaves Washington. . Arrives Chicago... MANHATTAN LIMITED Leaves Washington Arrives Chicago. to St. Louis THE AMERICAN Leaves Washington..::::: Arrives St. Louis..: available on overnight trains to New York The Liberty Limited and 7 other Pennsyl- vania trains daily to Chicago travel the cool route through the wooded valleys of the By this same cool route westward speed 6 120 P.M: 5.05 P.M. “SPIRIT OF ST. LOUIS” Leaves Washington Arrives St. Louis. . :55 P.M. :30 P.M. Alan B. Smith, General Passenger Agent, 613-14th Street, N. W., Washington, D. C. Telephone National 9140. PENNSYLVANIA RAILROAD The Cool Route to the West At fares comparable to rail-Pullman fares, T A T-MADDUX AIR LINES offer swift, regular, com- fortable service from coast to coast 1n 48 hours—with convenlent service between Intermediate points—in connection with Pennsylvania and Santa Fe ralliroads. Phone for information.