Ungerleider Financial

Ten years ago, no one in Wall St. knew Samuel Ungerleider, midwestern distiller. Even today perhaps the "new" traders are not particularly familiar with Stockbroker Ungerleider. Yet a potent brokerage establishment is Samuel Ungerleider & Co., with its home office at No. 50 Broadway and branches throughout the Middle West. And when, last week, "Ohio Sam" an nounced the formation of Ungerleider Financial Corp., a general investment trust, the potent names of William Fox, head of Fox Films, David Bernstein, treasurer of Loew's, Inc. (Fox subsidiary), William Crapo Durant, motor-and market-man, and Louis S. Posner, of Jonas & Neuburger, attorneys,* were among those associated in the enterprise.

No mammoth investment trust is Ungerleider Corp., with its relatively modest 25-million-dollar initial capital. But in view of current criticisms, its structure attracted attention. It begins life with a management contract entered into with Samuel Ungerleider & Co., which provides that the brokerage house will receive no compensation except standard commissions unless the investment trust has earned in excess of 8% on its capital. When more than 8% has been earned, Samuel Unger leider & Co. will receive 20% of net profits, but only if the payment of such 20% does not reduce the corporation's profit below the 8% figure. Furthermore, Mr. Unger leider himself is the only member of Samuel Ungerleider & Co. who is on the board of Ungerleider Financial Corp. Thus precautions have been taken against the common accusation that an investment trust may well be profitable to its management, not profitable to its investors.

Entrance of Mr. Ungerleider into the brokerage field in 1919 was prompted by some unfortunate experiences as an outside investor. During his early business career, Mr. Ungerleider had been a distiller, getting into the liquor business. When still a very young man, he went to work for a saloon keeper and in two years owned the saloon. Selling out his distillery business with the approach of prohibition (1919), Mr. Ungerleider tried to retire, found the burden of leisure too heavy to endure. He began to play the market and quickly discovered the expenses of that pastime. He soon decided that only the insider had a chance to make money on the Street so, in 1919, he bought his seat on the Exchange, continued in his new, as in his old, business, to be on the sober side of the bar.

Short, stocky, genial, twinkly-eyed, Mr. Ungerleider makes many friends. The walls of his offices are crowded with autographed pictures of Congressmen, financiers, tycoons of one kind or another. A non-partisan in politics, he knows many a politician, spent much time on the long distance telephone during both the Kansas City and Houston nominating conventions. He does not, however, meet any of his friends on golf courses. Mr. Ungerleider never had a golf stick in his hand. And of this eccentricity he is extremely proud.

*Through Mr. Posner of Ungerleider Financial Corp., a somewhat winding trail leads to Goldman-Sachs Trading Corp., as Ralph Jonas, of Jonas & Neuburger, is head of the executive committee of Goldman-Sachs.