High Point Enterprise Newspaper Archives Feb 17 1974, Page 90

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High Point Enterprise, The (Newspaper) - February 17, 1974, High Point, North Carolina Small investors deserting Wall Street Deborah m High Point enter prow sunday february by Deborah Rankin a Butla Eis writer apr the Small already a Shadow of his former self may1 become an Reven fainter presence on Wall Street with the closing of one of the huge brokerage firms that served him gone is the Bull Market of thel960 which convinced so Many families to invest their savings in stocks Dupont Walston inc the nations second largest brokerage House specialized in these Little investors its closing late last month after a loss of to million i six months is going to Casta pall Over Public Confidence says Stan West director of research for the new York Stock Exchange a recent nose Survey concluded that the Small investor the Man who owns under in stocks and trades what the Market Calls Odd lots of less than 100 shares feels like the forgotten Man on Wall Street that and the drop in Stock prices Are pushing Many Small investors the Stock Market during a oneyear period the number of big Board shareholders declined 800000 to 317 million according to the latest nose statistics issued in october the question is does Walt Street really care whether the Small investor stays or goes the big institutional investors Are replacing him these Are the Banks the pension funds the insurance companies and the Mutual funds they Trade in blocks of 10000 to 100000 shares owning billion of the big boards stocks that roughly on third of the noses total issues the institutional investors account for 70 per cent of the big boards trading volume Small investors Only 30 per cent a decade ago the percentages were reversed it was the ittle investor who did 70 per cent of the trading even on the american Stock Exchange his traditional stronghold the Little investor has been losing ground he traded 853 per cent stocks in 1966 but this dropped to 70 per cent last year the institutions doubled their volume going from 147 to 30 per cent in those years the brokerage fee system modified in 1972 has helped drive off Little investors the percentage the Small trader pays in broker fees can be twice that of the investor who buys or Sells in blocks of 5000 shares of More for trades above the fee is negotiated for the portion Over Ive heard of cases where institutions have haggled the fee Down to As Little As a Penny a share says one broker under the present system says another the Small investor is subsidizing the big institutions a change is due in 18 months under securities and Exchange commission regulations at that time brokers must begin to negotiate commissions on All Stock transactions the ruling is designed to help the Little Man neither the institutions nor the Small investors seem to have won on Wall Street in 1973 the value of stocks on the big Board Felly billion to billion at years end the average Price of a share was on dec 31 Down from a year earlier it was disastrous for everyone complained a businessman who lost recently on the Stock Market but at least the big institutions had enough Money so they could spread some of it into other More secure areas the Little Man didst have that safety valve the Small investors began to sell out in 1969 during a recession about 100 brokerage houses mostly Small outfits closed in the next two years one of the big failures was Goodbody co taken Over in 1970 by Merrill Lynch Pierce Fenner Smith that has been eclipsed now by the dismemberment of Dupont Walston second in size to Merrill Lynch the firms 143 Branch offices and 300000 customer accounts Are being absorbed by other firms h Ross Perot a texan who made millions in the computer business owned Upah Walston he announced in 1972 that he would lure the Small in Vestor Back to Wall Street a recent Survey by pollster Louis Harris found that the Public has less respect for Stock brokers than for 10 other professions including politics and advertising to put it bluntly there is a credibility crisis for Wall Street today says Harris the disillusionment of the individual investor is summed up by a lawyer who inherited Money 20 years ago and invested it in stocks his portfolio has grown to million but he is unhappy with his brokers in the 1950s it was like pin the Tail on the Donkey he said almost anyone could have made Money everything was going up and you could pick a Stock blindfolded and know that you would do Okay but id ont think its pos sible for the average Guy to survive today in still Down from 1969 i Ive been through five Dif Ferent investment advisers since i got the Money the first one i had for seven years and i just got tired of him the second one was a big mistake the third went out of business but i got out drowning in a sea of paper Well Hail you out with All the help you need to handle your paperwork overloads Call manpower temporary services Well get the Job done quickly reliably professionally no matter what youre up against give us a Call temporary services give you All the help you need office Industrial Light Industrial technical phone Bonnie Horney at 8836171 115 High Early fortunately the next one did abysmally they put me into four seasons and later principals in the firm got indicted and into Maine sugar which went bankrupt judge demands anti marijuana research paper Somerset Paap three Somerset county men who pleaded guilty to Mari Juana Possession charges were placed on probation and ordered to pay court costs then Somerset county com Mon pleas judge Norman Shaulis added another requirement he ordered Dennis Critchfield 21 Stanley Housel 20 and Terry holler 18 to write a 3000word paper on the evils of marijuana and submit it to the court within 90 Days Shaulis ordered the three not to write anything Good about marijuana and told them to include medical research obtained through interview with a physician paying the doctor for his time if necessary meet a Good neighbor of yours sat him for the place in with now is the Only one that can handle me and my anxieties and 1973 did plenty to bring out anxieties among the fac tors that kept the Public from the rising inflation rate which reduced the amount of income people had available to spend on stocks High interest rates which made Bonds time deposits and government securities More attractive than stocks last year Odd lot sales exceeded purchases by million much of this Money apparently was reinvested outside Wall Street collapse of equity funding of America corp a giant conglomerate its Stock was held by Small investors and institutions arid was Worth billion in mid1973 by years end the Stock was nearly worthless the nose has charged that the financial analyst who discovered equity funding shortcomings first told selected institutional investors then made his Navy planning ahead for deck Crane ind a two Large Groves of White Oak will be set aside at the Crane naval ammunition depot in Southern Indiana for use As planking for the Hull of the uss Constitution theres no Rush though replanting of the ships Hull is scheduled in 2013 and again in 2053 Harley Thomas or the de pots forester who is in charge of the White Oak Groves said the Trees take about 150 years to mature at present the de pot has about 27 million stand ing Board feet of White Oak averaging 60 years of age old Ironsides flagship of the us Navy during the War of 1812 is undergoing a minor overhaul at Boston Navy Yard your family needs Fred g Culler Corner North Elm Westwood Tel 8856611 Good a tighter Stilt firm state farm insurance companies Home offices Boom Melon Illinois or president if executive promotions Ore port of your plans have your or Man Send to us All executives whose publicity photo graphs need updating such pictures published in Trade journals and newspapers Are Good and inexpensive publicity the technique of making them so that they will yield Good printed results is a Moit important part of our business the Cost is moderate sitting and six glossies winners of More than 75 National regional and state awards discover the difference Quality can make College Village shopping Center High Point 8836526 goods in this Van Are protected by the bes trained moving men in town who Wear this Emblem 9 moving storage locally owned and operated your Mayflower agent Granville moving and storage findings Public huge blocks of Stock were sold suddenly driving Down the Price until the Federal government stopped trading in the Issue this dramatized another complaint of the Small in Vestor the big institutions have inside Market information unavailable to him the uncertainties spawned by watergate and the Middle East Oil crisis Haven helped to revive a Market described As running 50 per cent on psychology and 50 per cent pm economics the individuals return to the Market is a matter of How he views the Economy says Donald t Regan chairman of Merrill Lynch it was slowing Down in 1973 and As a result the individual decided to stay on the sidelines to see what was going on in november came the Energy crisis and now very few people if any know whats going on despite the Grimness from Wall Street Many Small investors remain i have no Choice but to in Vest in the Stock Market said one real estate is even More difficult because you have to know almost As much As the developers themselves to an educated guess Art is inter except that theres no return and you have to pay High insurance premiums besides scotch whisky As a Way to hedge for the future he laughs Welli like the Chicks transmissions All work guaranteed we will rebuild your transmission for president saus sales service Complete tuneup Par checked cleaned adjusted and lubricated needed free pickup Only Call us 8858493 v95 parts the vacuum Center 122 w Broad St 13500 includes All seals gaskets clutches bands fluids All general repairs at same Low prices transmission seals for Ford and Chevrolet installed kid extra foreign car service Aiso g l Chick Crofts owner 2922 s mom Street Tel 4313411 smart Money moving first to where your savings now earn daily interest passbook savings saving certificates where you save does make a difference savings and d non not High Point Home office 620 n main St phone 8865071 Jamestown office 108 e main St phone 4543138 Thomasville office 512 National Hwy phone 4757151 open Mon thru thurs to pm fridays to 6 pm m7t4

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