Broun's Money

Standard argument of the investment trust is the alleged inability of the individual to choose stocks wisely. Let older and wiser heads, operating with large amounts of capital (runs the argument) do your investing for you. Then to you the poorhouse will never beckon, and at your door no wolf will ever howl. Logical, in many ways, is this theory (though it involves faith, hope and occasionally some charity regarding investment trusts and their management) but many a U. S. investor, doggedly individualistic, will doubtless continue to pick his own issues, watch his own ticker and, if necessary, lose his own shirt.

Information on the investments of one such market follower was last week disclosed through the daily column in the New York Telegram by Colyumist Heywood Broun. The investor is, of course, Mr. Broun himself. Managing a column which is about equally divided between the controversial and the autobiographical, Mr. Broun, in one of his revelatory moments, mentioned the nature and extent of his corporate holdings. Purposely naive (as when he remarked that should his General Realty stock prove him to be his own landlord he would certainly do something about a defective window) Mr. Broun's commitments indicated no lamb, no innocent.

Perm Railroad. For, in the first place, Colyumist Broun has acquired 25 shares of Penn Railroad. Mr. Broun maintains that his Pennsylvania stock has gone off two points since his purchase. Inasmuch as it last week closed at 78 and its high for the year has been 83 (low 72) the inference would be that the purchase was made somewhat by the outsider's proverbial system of buying at the high and selling at the low. Yet, with railroads showing best earnings in years, Mr. Broun might well be told to hang on to his railroad stock, nor let his heart be troubled.

United Corp. For Mr. Broun to identify himself with the industrial fortunes of United Corp. of Delaware, however, might be called shocking in so famed a Liberal. Incorporated early in the present year, United Corp. was formed as a holding company for the Morgan, Drexel, Bonbright and American Superpower holdings in United Gas Improvement, Public Service Corp. of New Jersey, and Mohawk Hudson Power Corp. The company was designed to "foster closer relations between the great public utility systems of the east"--i. e., to promote utility mergers and consolidations. What would Brown Derby think? How could the Nation approve? It must be conceded, however, that Investor Broun has doubtless profited tidily on his 25 shares of United Corp., which, starting on the Produce Exchange, moved last week to the Big Board where it opened Thursday at 67 and closed Saturday at 73.

General Realty. Concerning an unspecified number of shares in General Realty, Mr. Broun claimed that he is "wholly in the dark," having purchased common stock on a tip from a friend whose advice was based on the preferred. Mr. Broun was, therefore, unaware that the full name of his company is General Realty & Utilities Corp., that it is a holding company for real estate and for public utility stocks. Thus far (it was incorporated in January, 1929), General Realty has functioned chiefly in the realty field, holds 100,000 shares of Thompson-Starrett Co., and has as yet engaged in no more nefarious activity than the proposed construction of a 25-story office building in Boston. General Realty common has been consistently around the 20 mark with no pronounced movements.

Arkansas Natural Gas. Of Arkansas Natural Gas, Mr. Broun holds no less than 100 shares, the purchase apparently having been inspired by the 500,000 share turnover (TIME, May 13) during one day last fortnight. Mr. Broun bought the preferred, which has been almost stationary around 8. With his Arkansas Natural Gas, his public morality got once again all entangled in the tentacles of the Superpower Octopus. For Arkansas Natural Gas is a subsidiary of unique Henry Doherty's Cities Service Co., great among U. S. utility companies.

St. Louis & San Francisco Railroad. Mr. Broun described his St. Louis & San Francisco Railroad holdings under a caption "the Gate Called Golden," and flayed San Francisco as a foggy city. "Our terminals," said ignorant Mr. Broun, "don't appear attractive." Mr. Broun apparently was misled by the railroad's name. For the St. Louis & San Francisco does not come within several hundred miles of San Francisco, its western extremities ending in the western portion of Texas.