Below is the OCR text representation for this newspapers page.

17 Tone Identifies a Stromber^-Carlson STANDARD RADIO SHOP sTROMBERG-CARLSON EXCLUSIVELY •'There Is Nothing Finer Than A St ro mJberg-Ca rlson” H26 North Highland Ave., N. E. HEinlock 6235 SONG of LIFE by Erna Frounne Asher \ rollertion of poems written by Mrs. baron Asher from child hood through today. SI.00 tin* copy ON SALE AT RICHS, Inc. and MILLERS BOOK STORE Atlanta Drink PUR A WATER / or ) oar Health 9 s Sake Spring, Distilled, and I.ithia waters, paper cups, ice, loan of equipment and prompt service. I*» It A WATER COMPANY MM! PIF.UMONT AVE. W'A. 9320 Y JL ou may have THE SOUTHERN ISRAELITE Sent to Your summer Vacation Address Inform us the southern ISRAELITE t SUITE 301 GLENN BLDG. ATLANTA THE SOUTHERN ISRA E LIT E The Fixed Investment Trust i By E. REINBOI.D President, American Bond & Share Corporation, Atlanta, Ga. {Numerous requests have been made by our subscribers to put in a feiv notes of interest regard ing investments — and so, we start the first of a series, which we feel will be of interest to all subscribers. If auy comment is to be made, or questions asked, write The Southern Israelite, Invest ment Information Department.— Editor’s Note.) In broad terms an Investment Trust may be defined as a legal organiza tion wherein investors co-operate by contributing to a common fund in or der to enjoy a more effective invest ment policy than they could develop individually. Through the medium of the trust these individuals seek to achieve the best possible application of capital for the mutual benefit of those who contribute the same, and in exact proportion to their respective holdings. Investment Trusts are of two prin cipal kinds: the Management Trust and the Fixed Trust. There are of course many differences of detail be tween various trusts, almost as nu merous as the number of trusts them selves. But in the main they fall gen erally into the two classifications men tioned. There is nothing novel about the idea of the Investment Trust. Indeed historical traces of very similar in vesting machinery go back to the 16th century. The first marked resemblance to the exact counterpart of those now in vogue, occurred in Brussels in 1822. That was seven years after the Battle of Waterloo. History has a way of repeating it self. This is demonstrated in the case of the Investment Trust. For its im petus in America occurred in 1925, seven years after the climax of the World War. In both instances the world was in financial confusion. It might be claimed, therefore, that the Investment Trust has served as a ref uge for timid capital when conditions generally were in chaos. The salient features of a pure In vestment Trust are five in number, namely: 1st—The combination of the funds of many investors in both large and small amounts, upon a basis of equal ity in relation to respective holdings. 2nd—Application of these funds ex clusively to the purchase of securi ties. 3rd—Purchase of securities for in vestment purposes only, and not for motives of speculation nor to gain con trol or assume responsibility in the direction of any business enterprise. 4th—Holding of a variety of securi ties, whereby diversification of the basic securities will tend to protect both principal and income of the in vestment. 5th—Continuous supervision of the deposited securities so as to attain good average yield. Profit is thus sought entirely through the judicious investment and reinvestment in an as sorted list of recognized securities. The Investment Trust has only one resemblance to so-called “securities substitution companies” of which the famous Northern Securities Company at the opening of the 20th century was an example. It does substitute fresh securities to the public, in exchange for those of other concerns which it retains in trust. In all other respects the are entirely different. The form of the securities of the Fixed Investment Trust is called a “trust share”. It constitutes a frac tional owenrship of a pre-determined block of securities and cash, which is called a “unit”, and entitles its hold er to a pro rata participation in the earnings and accretions, lumped un der the expression “accumulations”, derived from the possession of the property of which the unit is com posed. The component securities are designated as the “portfolio”, and they, together with the cash, are de posited with a financial institution serving in the capacity of “trustee”. The conditions which govern the ar rangement are expressed in a careful legal document described as a “trust indenture.” Under its terms the trus tee safeguards the deposited property, collects the periodical income and dis burses it to the holders of the trust shares. The latter are usually in “bearer” form, with series of semi annual coupons annexed. They are de signed to pass as readily from hand to hand as currency. The responsibil ity which devolves upon the supervi sors of the portfolio, for the invest ments entrusted, is a fiduciary one. Hence the descriptive term “invest ment trust”. The cost of the expert service re quired in setting up and functioning this mechanism is vindicated from the social point of view. It confers a dis tinct benefit upon the investing pub lic by providing the means whereby investors may enjoy greater security and higher income than is otherwise possible. New Haven, Conn.—One of the fin est collections of George Meredith has been presented to Yale University by Frank Altschul, New York banker, it has been announced by Yale. Mr. Alt schul, who is a Yale ’08, was born at San Francisco and is a member of the governing committee of the New York Stock Exchange and chairman of the graduate committee of the Yale Library. Such is the value of Mr. Alt- schul’s gift that one critic says: “Yale may have a new value for posterity.” LOANS ON INDORSEMENTS $100.00 to $1,000.00 Loaned at 8% a Year Repayable in Weekly Payments Within One Year SOUTHERN SAVINGS & INVESTMENT CO. 913 Atlanta Trust Company Building *10Xf and up—f. o. b. Flint, Micb. Anthony Butch, Inc. PHONE JACKSON 1480 512 SPRING ST., N.W. ATLANTA Get a Maison Victoire wave and you have the best Permanent it is pos sible to get at any price. Shampoo and Finger Wave, 50c Maison Victoire, Inc. ATLANTA 183 4 Peachtree Street. N.E. Opposite Davison-Paxon PHONE JA. 9378 CHARLOTTE 418 Johnston Bldg. Phone 3-6771 JACKSONVILLE 808 Graham Bide. Phone 5-8883 KNOXVILLE 635 Holston Bank Bldjr. Phone 3-7213 NASHVILLE 521 Nashville Trust Bldg. Phone