Insignificant

"No significance," said Waddill Catchings when, last week, he resigned from the presidency of Goldman, Sachs Trading Corp., $250,000,000 investment trust, and resigned also his membership in the firm of Goldman, Sachs & Co. Always noncommittal are resignations and always open to question are inferences from them. Yet withdrawals were no part of Mr. Catchings' work during the brave days of 1929, when the "new era" group of Market men maintained that soaring stock prices represented the legitimate reflection of prosperity and progress.

Few "new era" men had better standing as economists than Mr. Catchings, keen thinker, able writer. Few put their theories to more practical application. For in a period marked by the formation of many investment trusts none were more spectacular than Goldman, Sachs Trading Corp., Shenandoah and Blue Ridge, all Goldman, Sachs sponsored and all contributing to Mr. Catchings' reputation as a brilliant and rising man. Trading Corp. stock, issued in December 1928 at 104, opened at 109, shortly split two for one, and in August 1929 was selling at 116. Shenandoah was launched in July 1929 by the sale of one million shares of common priced at 17 which soon sold up to 42, and one million shares of preferred at 50 which sold up to 60. The third member of the family--Blue Ridge--had its official birthday on Oct. 23, 1929, so that its most prosperous period was prenatal, the shares being much in demand on a when-as-&-if-issued basis.

Depending so much upon Market psychology, both Shenandoah and Blue Ridge were among the most conspicuous sufferers when the impression that all was well was succeeded by the conviction that everything was terrible. Blue Ridge went from a high of 29 5/8 to 3 1/2; Shenandoah from 39 3/8; to 6 7/8. In December the two companies were benefited by artificial respiration: Blue Ridge was permitted to buy a large block of Central States Electric at a price considerably below the market and Shenandoah was permitted to purchase, for retirement, 765,200 shares of its own preferred at a similar bargain figure. The Central States sale presumably resulted from the fact that Mr. Harrison Williams, controlling factor in Central States, was also affiliated with Goldman, Sachs and its trio of trusts. During the present year, in spite of the fact that utility securities have been among the leaders of the current market (both Blue Ridge and Shenandoah have utility portfolios), neither investment company has recovered its speculative attraction. Blue Ridge sold last week at 10 5/8 and Shenandoah at 14 1/2. The announcement of Mr. Catchings' resignation (effective June 1) is the first important news that has for some time emanated from Goldman, Sachs.

Mr. Walter E. Sachs, of the second Sachs generation (no Goldmans remain in Goldman, Sachs), succeeded Mr. Catchings as Trading Corp. president, and Mr. Sidney Weinburg, long a Goldman, Sachs partner, became vice president. Mr. Weinburg is widely known as an astute selector of likely issues, has contributed much to Goldman, Sachs reputation as sponsor of successes.

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