Counselor's Third Stand

Last week for the third time in a seven-year rise to riches, Charles Willard Young founded a Manhattan investment counsel firm. His first was Young & Ottley, launched in 1929 with the financial aid of a fellow Yaleman named James Henry Ottley. Young & Ottley promptly established itself by calling the stock-market crash. In 1933 young Mr. Young pulled out of Young & Ottley, moved from Manhattan's Chanin Building diagonally across 42nd Street to the Chrysler Building. There with new backers, notably James Cox Brady, Mr. Young set up an-other investment counsel firm called C. W. Young & Co., with himself as president and owner of 55% of the stock. C. W. Young & Co. prospered. It now has more than $100,000,000 worth of investments under its supervision. But by last week its founder was ready for another venture. Mr. Young moved again, this time to another 42nd Street address, the Lincoln Building, where he became president of Young Management Corp. Mr. Young's shy, quiet manner is deceptive. He is a master salesman as well as a brilliant analyst. Only 34, he lives luxuriously in Manhattan's swank River Touse, owns a 100-ft. yacht called the Arab. Moreover, he has very clear notions on how investment counsel firms hould be run. When he is unable to run them his way, he moves. His latest move roots back to a shake-up which occurred in C. W. Young & Co., nearly a year ago. His backer-directors felt, among other things, that the firm was growing too big to be a one-man show. From Wall Street they summoned two new vice presidents, Robert W. Sinsabaugh, a onetime Central Hanover Bank & Trust official, and E. Thurston Clarke, head of the investment department of J. P. Morgan & Co. These two men were brought in to relieve Mr. Young of some of his responsibilities. When Mr. Young finally moved out, Mr. Clarke was popped into the firm's presidency. One of the ideas Mr. Young was playing with when his directors squelched him was a service for small investors. Most big investment counsel firms refuse to handle accounts of less than $100,000. Even that amount yields only $1,000 annually at the usual fee of 1%, Mr. Young's Young Management Corp. started with a big backlog of large ac counts, but it will also go after ones as small as $10,000. This is a virtually un touched field. The average U. S. investor with less than $100,000 generally depends upon his own wits or bankers and brokers where advice is not always unbiased. With simplified supervisory systems and a reasonable volume of business, Mr. Young hopes to bring the price of investment counsel service down within common reach. His plans include a nationwide organization with one office in each Federal Reserve district. Backer-directors of Young Management Corp. are Lawyer George Gordon Battle; Milton Whately Harrison, a trustee of Manhattan's huge Bowery Savings Bank; Giles G. Healey, scion of Boston's onetime carriage-building family; and Howard Earle Coffin, chairman of Southeastern Cottons, Inc. and reputedly the heaviest investor in Mr. Young's latest firm. Eventually there will be only two 42nd Street investment counsel firms with the name Young in them, since C. W. Young & Co., having bought back Mr. Young's stock, is independent of the others, will soon change its name.

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