Widening Atlas

Spectacular even in Bull Market days was the upward rush of Goldman Sachs Trading Corp. common stock ($108 to $224 in two months). One day last week Goldman Sachs made another spectacular jump but this time only from $1.88 to $3.63. As soon as Goldman Sachs started jumping last week Wall Streeters guessed at what was coming. Last spring it became known that Tri-Continental Corp. was angling for a large interest in Goldman Sachs. When Tri-Continental ceased angling, it was rumored that Atlas Utilities Corp. was working out a deal.

Last week the rumor was confirmed. Atlas became by purchase the largest holder of Goldman Sachs stock. Made clear, however, was the fact that control is not involved, that management of the trust will still be in the hands of Goldman, Sachs & Co., seller of none of its shares. It was thought, however, that eventually Atlas will make some offer to minority Goldman Sachs holders, will eventually either control or absorb the latter company. Net assets of the two would total $160.000,000, making it the largest investment trust in the world. The Atlas stock came from the open market and from Ralph Jonas.

Important side-angle to the link is that both trusts have sizeable holdings in Manufacturers Trust Co. Their combined holdings will be 114,000 shares out of 1,646,000. Goldman Sachs acquired its Manufacturers stock at about $275 per share, only last week paid its last instalment. Out of the 381,000 shares it bought in this manner, 277,000 were sold to Harvey Dow Gibson and associates at $26.35 a share last winter (TIME, Jan. 12, 1931). Atlas holds 32,000 Manufacturers Trust shares in a shrewd manner. The two trusts will henceforth elect four out of Manufacturers' 40 directors.

Atlas Utilities at present is a holding company, controlling 16 investment trusts. Whether or not young (39) President Floyd Bostwick Odium expects to merge them eventually is not known. It is very likely that he himself has not yet decided. Last week, proud as can be of his growing Atlas, he said: "From the beginning it has been absolutely independent. It has kept itself free from all alliances or affiliations as a matter of considered policy. Because of this, it has been slower in working out its destiny than otherwise. . . . But it has at least trod on firmer ground."

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