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»»- kikni The E. S. C. Quarterly VOLUME 19, NO. 1-2 ^HrlTl ;v":'w*;" WINTER-SPRING, 1961 I Employment Security Commission of North Carolina Cover Legend On Page Two Finance Edition Complete Index On Page 115 PAGE 2 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 The E. S. C. Quarterly CHAIRMAN'S COMMENTS (Formerly The U.C.C. Quarterly) VOLUME 19, NO. 1-2 WINTER-SPRING, 1961 Issued at Raleigh, N. C. by the EMPLOYMENT SECURITY COMMISSION OF NORTH CAROLINA Commissioners : Mrs. Quentin Gregory, Halifax; Dr. Maurice Van Hecke, Chapel Hill; R. Dave Hall, Belmont; W. Benton Pipkin, Reidsville; Bruce E. Davis, Charlotte; Crayon C. Efird, Albemarle. State Advisory Council: Public representatives: James A. Bridger, Bladenboro, Chairman; Sherwood Roberson, Rob-ersonville; W. B. Horton, Yanceyville; Mrs. R. C. Lewel-lyn, Dobson, and Dr. J. W. Seabrook, Fayetteville; Em-ployer representatives: A. L. Tait, Lincolnton and G. Maurice Hill, Drexel; Employee representatives: Melvin Ward, Spencer, AFL and H. D. Lisk, Charlotte, CIO. HENRY E. KENDALL Chairman R. FULLER MARTIN Director Unemployment Insurance Division. JOSEPH W. BEACH Director North Carolina. State Employment Service Division TED DAVIS Editor Public Information Officer, Member Public Relations Society of America MARTHA JACKSON Associate Editor Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: E.S.C. Informational Service, P. O. Box 589, Raleigh, N. C. INDEX APPEARS ON PAGE 115 Top Left: Nine Local Office employees of the Employment Security Com-mission are shown during a tour of the Central Office. Brought in for a week's training they are, left to right: Earl Swann, Wilmington; Charles Leatherwood, Asheville; Arthur Oanielson, Durham; William White, Gas-tonia; Ruth Felton, Raleigh; Jesse Beatty, Gastonia; Glenn Smyre, Lincoln-ton; Allen Bailey, Jr., Raleigh; Jim Fox, Hickory. Pointing to the machines focal point is Plans, Methods and Procedures Analyst Theodore Whitley who conducted the trainees on the tour. Top Right: The Planning Committee of Winston Mutual Life Insurance Company, Winston-Salem, poses for the QUARTERLY. Left to right, are A. W. McKnight, Agency Secretary; C. L. Hill, Secretary; Attorney P. A. Simmons, Agency Director; E. E. Hill, President; A. W. Harper, Auditor; George C. Hill, Comptroller; and Mrs. M. M. Bausman, Treasurer. Center Left: New Home Office of First Federal Savings and Loan Associa-tion, Raleigh, now under construction at the corner of South Salisbury and West Martin Streets. This is probably the first building in the State built with a basement constructed as a fall-out shelter. Top Right: Wachovia Bank and Trust Company, Charlotte Branch, main lobby. Designed for maximum banking service, convenience and comfort, the spacious lobby is on the second floor and is one of the most modern and impressive banking rooms in the South. Covering 11,000 square feet, it contains a 100-foot-long teller's counter of Brazilian rosewood and marble along with desks of officers serving the public. Electric moving stairways, automatic elevators and terrazzo steps provide customers with three means of easy access from the building lobby at street level to the second floor and main banking lobby. Bottom, Left: Governor Terry Sanford and Alex Galloway, President of R. J. Reynolds Tobacco Company, Winston-Salem, give serious considera-tion to problems confronting the newly Chartered North Carolina Traffic Safety Council. The Council was formed by private citizens at the sug-gestion of the Governor. Bottom Right: Studying ideas which beget industries is one of the strongest teams ever formed in the interest of raising North Carolina's economic level. They are, left to right: Roy Wilder, Assistant Director of the Depart-ment of Conservation and Development; Bill Henderson, Administrator of the Commerce and Industry Division, C&D; and Hargrove "Skipper" Bowles, Director of the Department of Conservation and Development. KENDALL Henry E. Kendall, Chairman Employmeyit Security Commission We believe this edition of THE E. S. C. QUARTERLY is the most complete exposition of North Carolina's enterprising financial institutions published. Practically every type finan-cial agency is included within these covers. The State, without private enterprise and the world of finance, would have no economy. There could be no factories, farms, or schools. This number of the QUARTERLY contains more than 150,- 000 words about North Carolina's finan-cial picture. As the economy of the State rapidly expands and rises, the services of the Employment Security Commission must also increase. Demands on the Agency grow and new methods and more efficient operations are coming about. Constant self-evaluation by the ESC helps bring about these changes to cope with the problems of economic growth. The North Carolina Traffic Safety Council, recently chartered, is described in detail in one article of this issue. Employment Security has a significant interest in this aspect of the State's economy. Every life that is saved through the efforts of this organization means one less worker for whom a replacement must be found. One less person to recruit, screen, test, train and place. Thousands of dollars are lost in training and experience each time an adult life is snuffed out on our highways. Reducing deaths and maiming accidents allows the ESC to give more time to those workers entering the labor force in increasing numbers every year. Another article shows the impact of the industrial growth of the 1955-1959 period on our economy. You may also read the story of the Temporary Extended Unemployment Com-pensation program. President Kennedy signed the act March 24. The probable effect of this program, and the anticipated number of exhaustees to be affected are pointed out. Tourism, a recent survey purports, is the third money-pro ducing industry of our State. The story of one facet of tour-ism is told in this edition. More than 2300 conventions, con claves, sales meetings, conferences, associations and othei major gatherings convene in this State each year. These con-ventions produce many jobs for North Carolina's labor force Not only are direct service jobs created, but many fringe jobs are brought about in the production of foods, souvenirs and clothing. Pointed up is the value of the new conventior dining room at the Morehead Biltmore in Morehead City This is the first facility on the coast that can easily handh banquets for more than 450 guests at a time. This one additior will increase the demand for many workers in the Carterei County area. Most of the financial and other institutions listed in this edition use the services of the ESC Local Offices to fill vacan cies. When Local Offices are unable to fill jobs, the State-Wid< Clearance Office is put to good use and often from its in ventory come workers from other sections for local needs. Ii our files are many letters attesting the effectiveness of th< ESC in filling these openings. The cooperation of the Research and Statistics Bureau o the ESC with the State Board of Education and the U. S. De partment of Labor is depicted in the story of the skills surve: now being conducted. More than 1000 employers will be in terviewed about their present and anticipated future need for skilled workers. —Continued on page 11 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 3 FUNDAMENTALS OF THE EMPLOYMENT SECURITY PROGRAM By W. D. Holoman, Chief Counsel Employment Security Commission of North Carolina The Employment Security Program has been in existence in North Carolina for twenty-four years, yet it is still a relatively new program as time is count-ed in the life of a State or of the Na-tion. It can be said that the Employ-ment Security Pro-gram is still in its infancy. There are many phases of the Employment Secur-ity Program which vitally affect the economy o f our holoman State and Nation, and which particularly affect workers and employers. There have been many developments in this program and many changes which have been brought about by our chang-ing economy. Obviously it will not be possible to deal with all of these develop-ments and changes in this discussion. It may be interesting, however, to examine briefly the background of the Employ-ment Security Program and some of the more significant features in respect to it. The Employment Security Program involves many aspects of our industrial and social life. The Social Security Act was passed by Congress in 1935, and it contained several programs dealing with social problems. These programs were formulated for the betterment of mankind and were trans-lated into what is generally known as the eleven titles under the Social Secur-ity Law. One of the eleven titles deals with un-employment insurance, now more com-monly termed Employment Security. The program, as the name implies, is directed toward the employment security of work-ers. In consequence of the enactment by Congress of the Social Security Act in 1935, the Unemployment Compensation Law was passed at a Special Session of the North Carolina General Assembly during December 1936. It was necessary to call this special session so that legis-lation could be adopted by a deadline provided in the Federal Act, and so that North Carolina employers could get ad-vantage of the offset provisions provided for under the Federal Unemployment Tax Act. The Legislature passed what was first known as the Unemployment Compensa-tion Law which created the Unemploy-ment Compensation Commission of North Carolina. Those designations did not properly identify the program, so in 1947, the Legislature changed the name of the Unemployment Compensation Law to the Employment Security Law, and likewise changed the name of the Com-mission to the Employment Security Commission. The Employment Security Commission, which administers the Employment Secu-rity Program, is solely a State agency administered by the State, but our funds for administrative purposes come from Washington. Our Legislature, therefore, makes no appropriation for our program. For a number of years until recently, the Federal Unemployment Tax Act has imposed a 3 percent tax on all employers, with certain exemptions, who are subject to that Act. An offset of 2.7 percent is allowed to employers who are covered under a State Employment Security Law; provided, that the State law meets cer-tain basic standards set forth in the Federal Act. Under this joint program those employers, who are subject, pay directly to the State on the basis of 2.7 percent of their payrolls and to the Federal Government they have been pay-ing, until recently, three-tenths of one percent on their payrolls, which of course, when added together, makes up the 3 percent over-all tax which has been imposed by the Federal Unemployment Tax Act. In 1960, Congress amended the Federal Act and increased thereby the over-all tax to 3.1 percent of the payrolls of covered employers. By that amendment the Federal Unemployment Tax rate was increased from three-tenths of one per-cent to four-tenths of one percent begin-ning with the calendar year 1961. The basic tax to the State still remains 2.7 percent. The rate for overdrawn accounts runs from 2.8 percent to 3.7 percent. The State law must conform to certain requirements set forth in the Federal Act, and it must be administered in sub-stantial compliance therewith in order for the employers in this State to get credit against the Federal tax of 3.1 per-cent; otherwise, employers would be re-quired to pay the full tax of 3.1 percent to the Federal Government and 2.7 per-cent to the State of North Carolina, which would be double taxation. The operating expenses of the State agency come from the four-tenths of one percent which the Federal Government collects directly from employers. This four-tenths of one percent, which is paid by covered employers directly to the Fed-eral Government, is put into the general fund of the United States and until re-cently was not earmarked. In 1955, how-ever, "The Reed Bill" was passed by Congress earmarking that fund. That bill provided that there should first be built up a 200 million dollar reinsurance fund for loans to States who were in distress and that such fund should be maintained. Then after the payment of the allotments to the States for administrative purposes, and after the payment for the adminis-tration of the Federal Act, the account of each State was credited with the pro rata share of such funds, which in turn, was credited back to the accounts of the employers on a pro rata basis. This law became effective July 1, 1955, and we received our first credit on July 1, 1956. Since the amendments by Congress in 1960, the Federal Act provides for the transfer of excess tax collections to the LOAN FUND until such LOAN FUND has reached 550 million dollars. After this amount has been reached the AD-MINISTRATIVE FUND is to be built up to 250 million dollars. After this goal has been obtained, any overage is to be returned to the trust funds of the States in accordance with the formula provided in the Reed Act except that the overage of any State with an outstanding loan will be applied against the loan. The Employment Security Commission is composed of two coordinate divisions, the Employment Service Division, and the Unemployment Insurance Division. The main objective of the Employment Service division is to maintain employ-ment and to find jobs for unemployed workers. The main objective of the Un-employment Insurance Division is to pay workers who are out of work through no fault of their own, and who are able and available for work—to pay benefits in order to bridge them over a period until they can find work. A very important function of the Unemployment Insurance Division is the collection of taxes from covered employers from which benefits are paid. The objectives of unemployment in-surance and of employment service are identical. They are both directed toward employment security of the worker. Both programs serve the same end—to help the worker find a job when he is unem-ployed and to help him bridge the gap in income between jobs. It is no part of the Employment Secu-rity Program to pay people who do not want to work. The test is not whether the unemployed worker needs the money, but whether he lost his job through no fault of his own and whether he wants another job; that is why a worker must register at a public employment office, be able to work and actively seek work, before he can be considered for benefits. At this point it may be well to consider what has been declared to be the public policy of our State as expressed by the Legislature when the law was passed in 1936, and which has not been amended since its passage. Section 96-2 of the Gen-eral Statutes of North Carolina provides as follows: "Declaration of State public policy — As a guide to the interpretation and application of this chapter, the pub-lic policy of this State is declared to be as follows: Economic insecurity due to unemployment is a serious PAGE 4 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 menace to the health, morals, and welfare of the people of this State. Involuntary unemployment is there-fore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crush-ing force upon the unemployed work-er and his family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to pro-vide benefits for periods of unem-ployment, thus maintaining purchas-ing power and limiting the serious social consequences of poor relief assistance. The legislature, there-fore, declares that in its considered judgment the public good and the general welfare of the citizens of this State require the enactment of this measure, under the police powers of the State, for the compulsory setting aside of unemployment re-serves to be used for the benefits of persons unemployed through no fault of their own. The original law contained a provision whereby all services performed by an individual for remuneration were deem-ed to be employment subject to the chapter unless it was shown to the satis-faction of the Commission that the serv-ices met certain conditions set forth in what we generally called the "ABC" provisions of the Act. In order for the services to be excluded from employment, the tests set forth in such section re-quired (A) the individual performing the services must be free from control and direction over the performance of such service both under the contract of service and in fact; and (B) such services must be performed outside the usual course of the business for which the services are performed or that the services be per-formed outside of all the places of busi-ness of the enterprise for which the serv-ice is performed; and (C) the individual performing the services must be cus-tomarily engaged in an independently established trade, occupation, profession or business. The Supreme Court of North Carolina construed the Declaration of State Policy quoted above in the case of State v. Willis Barber & Beauty Shop, 219 N. C. 709, 15 S. E. (2d) 4. The court stated in that opinion that the intent of the Legislature was to provide a wide scope in the ap-plication of such law in order to mitigate the economic evils of unemployment, to bring within its provisions employments therein defined beyond the scope of exist-ing definitions or categories, and that all doubts as to constitutionality should be resolved in favor of the validity of the Employment Security Law and all of its provisions. It was obvious that the court had in mind the definition of employment which was then contained in the law and which has been referred to as the "ABC" provisions, for certainly if those so-called "ABC" provisions were construed strict-ly the law encompassed many employ-ments beyond the scope of existing defi-nitions, and it was only in rare instances under such definition of employment that one could be an independent contractor. It was obviously the intent of the Legis-lature, with that definition of employment in the law, to reach out and include as many individuals as possible so that such individuals might be given protection from the evils of unemployment. Under the definition of employment which was originally in the law cover-age, therefore, went well beyond what is generally known as the master-servant relationship. Objections to this far-reach-ing definition in the law came from many sources and the Employment Se-curity Commission realized that the pro-visions which were originally contained in the Act were rather harsh. Con-sequently, the 1949 Legislature repealed the original definition of employment which was commonly referred to as the "ABC" provisions, and adopted a defini-tion of employment which is much more realistic based on the common law doc-trine of master and servant. This change in the definition of basic coverage re-quirement under the law obviously lightened the burden of some employers by eliminating from coverage those in-dividuals who were obviously independent contractors as known at common law. Other coverage provisions have been a-mended from time to time. From the inception of the Employment Security Program in 1937 until December 31, 1955, basically the program covered employers having as many as eight or more individuals in employment for as many as twenty different weeks within a calendar year, with certain exemptions such as agricultural labor, household and domestic servants, etc. In 1954 Congress amended the Fed-eral Unemployment Tax Act to extend its pi'ovisions, effective January 1, 1956, to employers with four or more workers during twenty weeks in a calendar year. Previously, the Federal law covered only those employers with eight or more per-sons, just as did the State law. The amendments to the Federal law forced North Carolina to amend its law to extend coverage to those employers with four or more individuals in employ-ment for as many as twenty weeks with-in a calendar year. Had North Carolina not amended its law those employers with from four to seven employees, inclusive, would have been required to pay the en-tire tax to the Federal Government with-out providing benefits to their employees. Approximately 10,500 additional firms have become subject to our Act, and approximately 55,000 additional workers have been added since such amendments to our law effective January 1, 1956. The newly-covered employers are those em-ploying four to seven workers inclusive. Few realize the extent to which oui economy is affected by the Employmenl Security Program. It is a big program and has a tremendous impact upon oui economy. The number of covered employ-ers subject to the Employment Security Law as of December 31, 1960, was 34,070 and there are almost a million workers covered under the program. Since contributions or taxes first be-came payable in 1937 through Decembei 31, 1960, contributions collected amount to $493,453,869 and interest earnings or this sum as of December 31, 1960 amounted to $63,611,368, making a cum-ulative total of interest and contributions of $557,065,237. These amounts do not include the Reed Bill funds which we have received since July 1, 1956, which amount to $2,545,480. We have paid bene-fits through December 31, 1960, in the total sum of $374,524,300, which left a balance in our reserve fund as of Decem-ber 31, 1960, of $185,086,417. The Employer Experience Rating Pro-visions of the law were adopted in order to encourage efforts towards stabilized employment. The law provides an incen-tive in the form of reduced tax rates to employers who give steady work. Those employers who provide reasonably steady employment can look forward to a reduc-tion in their tax rates. Employers who fail to provide, or who are unable to provide, reasonably steady employment can be allowed no rate reduction. Each covered employer in North Carolina has a separate account, and if an employer's account meets certain standards, then he is entitled to a reduced rate. The relationship between contributions credited to the employer's account and the benefits charged against it will de-termine whether or not he is eligible for a reduced rate. Certain standards or con-ditions must be met before an employer is entitled to a reduced rate. These standards or conditions are technical in nature and will not be discussed. The primary aim of the Experience Rating provisions is to encourage em-ployers to reduce unemployment by stabilizing their operations to the great-j est extent possible. Experience rating accomplishes this purpose by using the basic insurance principal of taxing according to the risk involved. The basic idea of experience rating is to fix responsibility for unem-ployment. It is those employers who have a large turnover in personnel who find it difficult to get a reduced tax rate. The normal State tax rate is 2.7 per-cent or $2.70 on the $100 payroll. It is possible under the North Carolina Law for an employer to get his rate reduced to lOtf on the $100 payroll. It takes an employer at least three years to get a reduced rate. Rates are reduced on a graduated scale. Since the beginning of the program employers in North Carolina have saved through 1959 $299,271,241 as a result of reduced rates through experience rating. It is estimated that by the end of 1960 WINTER-SPRING ,1961 THE E. S. C. QUARTERLY PAGE 5 employers had saved $324,400,000. So if employers maintain steady employment it is highly possible that they will enjoy a reduced rate at the end of a three-year period. There is one other phase of the pro-gram which should be emphasized. When ever a claimant for benefits files a claim and there is any question whatever as to his eligibility or if there is a possibil-ity that he is subject to a disqualification or penalty, the matter is referred to a Claims Deputy who sends a notice to the last and base period employers. Employ-ers are urged to have a representative at the hearings before the Claims Deputies and the Appeals Deputies in order to give evidence as to the real cause of the claimant's unemployment and availabil-ity. There is provided in the law a sys-tem of appeals whereby an aggrieved party may appeal from a Claims Deputy's decision to an Appeals Deputy, and if not satisfied, to the Commission, and ul-timately to the courts. The Claims Depu-ties, Appeals Deputies, as well as the Commission, must find facts based on competent recorded evidence. Though em-ployers may have advised the Commis-sion orally or by letter of the cir-cumstances surrounding a claimant's separation, or the circumstances in con-nection with his eligibility, facts cannot be found from such information as the Commission and its deputies are bound by the evidence. It can be understood, there-fore, that if an employer does not appear, a claimant may come into a hearing and testify; whereas, the employer may have facts entirely to the contrary. Yet if the employer is not present, facts must be found according to the claimant's sworn testimony. Benefit payments are charged to employer's accounts which tend to increase or keep rates up. It is interesting to know that claimants appear in approximately 85 percent of the hearings before Claims Deputies; whereas, employers appear at only 15 percent of such hearings. As a result of the hearings before Claims Deputies, about 60 percent are held ineligible or are disqualified for a certain number of weeks. What would the percentage be if 85 percent of all employers appeared? Employers are urged, therefore, to at-tend these hearings. The Employment Security Commission is an administrative agency and all of its representatives are anxious to be of service to employers and workers alike. Do not hesitate to call upon the agency or any of its representatives for any in-formation desired. You may be assured that we welcome the opportunity to be of service and the Commission desires to administer the program equitably to all. NORTH CAROLINA LICENSED SECURITIES DEALERS The following are the licensed dealers in securities registered with the Secre-tary of State. These 113 dealers, whose home offices are listed with the firm name, employ more than 450 salesmen who are also registered with the Secre-tary of State. Registrations listed are up for renewal March 31, 1961. Abbott, Proctor & Paine, Richmond 19, Va. Allied Securities Corporation, Greensboro, N. C. American Commercial Bank, Charlotte, N. C. American Diversified Securities, Inc., Washing-ton 6, D. C. American Securities Company, Charlotte 2, N. C. Amott, Baker & Co. Inc., New York 38, N. Y. Anderson & Strudwick, Richmond, Va. FIF Associates, Inc., Denver 3, Colo. Bache & Co., Raleigh, N. C. C. E. Beman, Laurinburg, N. C. Blair & Co. Incorporated, New York 5, N. Y. Robert E. Boyd d/b/a, Boyd Investment Com-pany, Winterville, N. C. Branch Banking & Trust Company, Wilson, N. C. Alex. Brown & Sons, Baltimore 2, Md. Brown, Bechard & Co., Ltd., Norfolk, Va. Brown, Madeira & Company, New York 5, N. Y. Bruns, Nordeman & Company, New York 5, N. Y. Calhoun & Company, Spartanburg, S. C. Capital Securities Corporation, Greenville, S. C. Carolina Securities Corporation, Raleigh, N. C. Cherokee Securities Corp., Southern Pines, N. C. Courts & Co., Atlanta 1, Ga. Thomas Darst and Company, Southern Pines, N. C. Development Corporation for Israel, New York 3, N. Y. Dick & Merle-Smith, New York 5, N. Y. R. S. Dickson & Company, Inc., Charlotte 2, N. C. UBS Distributing Corporation, Boston, Mass. Dow Corning Corporation, Midland, Mich. Dow Theory Forecasts, Inc., Hammond, Ind. Francis I, DuPont & Co., New York 5, N. Y. Eastman Dillon, Union Securities & Co., New Fork 5, N. Y. Frank L. Edenfiekl & Co., Miami 38, Fla. Equitable Securities Corporation, Nashville, Tenn. Erwin & Co., Inc., Durham, N. C. Federated Investors, Inc., Pittsburgh 22, Pa. Ferebee & Company, Andrews, N. C. Fidelity Management Company, Richmond, Va. First-Citizens Bank & Trust Company, Smith-field, N. C. First Securities Corporation, Durham, N. C. Fund Investments, Inc. of the Carolinas, Char-lotte 3, N. C. Glore, Forgan & Co., New York 5, N. Y. Goldman. Sachs & Co., New York 5, N. Y. Goodbody & Co., New York 4, N. Y. Hallgarten & Co., New York 5, N. Y. Halsey, Stuart & Co., Inc., Chicago 90, 111. Hamilton Management Corporation, Denver 17, Colo. E. L. Hardin & Company, Incorporated, Salis-bury, N. C. Harriman Ripley & Co., Incorporated, New York 5, N. Y. Harris, Upham & Co., New York 5, N. Y. Heritage Securities, Inc., Columbus 16, Ohio R. L. Hoffman d/b/a Hoffman Agency, Char-lotte, N. C. Hornblower & Weeks, New York 5, N. Y. Interstate Securities Corporation, Charlotte, N. C. FIF Investing Associates, Inc., New York 36, N. Y. Investors Diversified Services, Inc., Minneapolis 2, Minn. Jackson & Smith, Gastonia, N. C. Kidder, Peabody & Co., New York 5. N. Y. King Merritt & Company, Inc., New York 4, N. Y. Ralph B. Leonard & Sons, Inc., New York 4, N. Y. Loomis-Sayles & Company, Inc., Boston 10, Mass. Joe McAlister Co., Greenville, S. C. McAlister, Smith & Pate, Inc., Greenville, S. C. McCarley & Company, Inc., Asheville, N. C. McDaniel Lewis & Co., Greensboro, N. C. McGhee & Company, Cleveland, Ohio S. Wade Marr, Elizabeth City, N. C. Mason, Garlington and Wilcox Co., Atlanta 5, Ga. Mason-Hagan, Inc., Richmond, Va. Mason & Lee, Inc., Lynchburg, Va. Joe K. Matheson, Hickory, N. C. J. Sturgis May and Company, High Point, N. C. Maynard Investment Company, Hamlet, N. C. Merrill Lynch, Pierce, Fenner & Smith Incor-porated, New York 5, N. Y. H. L. Mitchell, Leaksville, N. C. Morrison and Company, Inc., Charlotte 2, N. C. J. Lee Peeler & Company, Inc., Durham, N. C. George B. Powell Co., Inc., Norfolk 10, Va. Powell, Kistler & Company, Fayetteville, N. C. Registered Funds, Inc., Charlotte, N. C. Renyx, Field & Company, Inc., New York 17 N. Y. Reynolds & Co., New York 5, N. Y. The Robinson-Humphrey Company, Inc., Atlan-ta 1, Ga. Louis G. Rogers & Company, Charlotte, N. C. Scudder Fund Distributors, Inc., Boston 9, Mass. Security Diversified Shares Management, Inc., Winston-Salem. N. C. Selected Investments, Wilmington, N. C. Service Securities, Inc., Newport News, Va. Auburn Hildreth Setzer d/b/a Mutual Plans Investments, Valdese, N. C. Smith, Barney & Co., New York 5, N. Y. Smith, Clanton & Company, Greensboro, N. C. Southern Investment Company, Charlotte, N. C. James C. Spooner, Arden, N. C. Sterling Fund Associates, Inc., Charlotte, N. C. Strader and Company, Inc., Lynchburg, Va. John G. Taylor d/b/a Taylor Investment Com-pany, Kinston, N. C. Thomson & McKinnon, New York 4, N. Y. Howard C. Traywick & Company, Inc., Atlanta 3, Ga. Trust Company of Georgia, Atlanta 2, Ga. United Securities Company, Greensboro, N. C. United Services Planning Association, Inc , Fort Worth 16, Tex. Vance Securities Corpoi-ation, Greensboro, N. C. Vaughan and Company, Wilmington, N. C. Virginia Securities Investment Corp., Newport News, Va. Wachovia Bank & Trust Company, Inc., Wins-ton- Salem, N. C. Waddell & Reed, Inc., Kansas City 5, Mo. Eli T. Watson, Hickory, N. C. J. C. Wheat & Co., Richmond 19, Va. White, Weld & Co, New York 5, N. Y. White, Weld & Co. Incorporated, New York 5, N. Y. T. Manly Whitener, Jr., Hickory, N. C. Winston Industries Corporation, Winston-Salem, N C. Dean Witter & Co., New York 5, N. Y. John W. Yeaman, Martinsville, Va. PAGE 6 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 H\ BACHE&CO. —THE STAMP OF QUALITY Bache & Co. and North Carolina are no strangers to each other. For many years an association has existed whereby investors have invested millions and mil-lions of dollars in the great industry of America through the branch offices of Bache and Co. The first offices in North Carolina were opened in the middle 1920's and at the present time are lo-cated in Charlotte, Greensboro and Ra-leigh. The accom-panying pictures are of the operation of Bache & Co. in Ra-leigh, In the early years the name of the firm was J. S. YOUNG Bache & Co. and was changed later on to Bache & Co. Bache & Co. is the oldest member firm in the investment business under the same management family for a period of over eighty years. We are the most diversified investment house in the United States, handling every phase of invest-ments for our customers. To do this we set up separate departments to handle more effectively the needs of our cus-tomers. We have one of the largest Research Departments; an over-the-counter department; a mutual fund de-partment; a metal department; a bond department, both municipal and corporate bonds; an institutional department; a syndicate department; a buying depart-ment; investment supervisory depart-ment; and the largest commodity depart-ment on the street. In the early years most brokerage con-cerns operated the branch offices with one or two people to staff them. Either a Morse wire was used to send and receive orders and information for our custom-ers or Western Union telegrams were sent. Practically all offices had the win-dows painted black so you could not see in. There seemed to be an air of secrecy connected with investments and conse-quently most people were not versed in the ways of the investing world. Some people actually thought that only the wealthy could invest. After World War II, a revolution in the investment busi-ness emerged and since that time great strides have been taken by the industry. Bache & Co. has pioneered a lot of changes in the investment business that are in practice today, and is still doing so. One of the first things to be done was to remove the black paint from the windows. We modernized the branch of-fices throughout the system. Before, when a prospective customer went by a branch office, it was dark and secretive, it be-came as open as a supermarket, well lighted and inviting to the eye. We en-larged our personnel in the branch of-fices and embarked upon a training pro-gram designed to enlist only the highest calibre of trainees. These trainees are now sent to the home office in New York for their training period and when they complete the courses they are ready to return to the branch offices fully regis-tered by the New York Stock Exchange. They are schooled in the highest ethical standards of conduct in our business. We also believed that unless the pub-lic was educated, our job was only half complete. We started public information programs of lectures, forums, and films to give more understanding of investing. We began a massive campaign of ad-vertising in newspapers, radio and var-ious news media to get across to the pub-lic our story. From a modest start in the middle 1940's, our budget last year for advertising alone was almost % of a million dollars. We installed high speed private wires for the purpose of sending orders directly to the exchange floor where the orders are executed. When the order is executed it is sent back over another circuit and it is possible to execute a market order in a matter of minutes. We also installed a high speed private news wire system to all branch offices solely for the pur-pose of transmitting information of im-portance to investors. This continuous service is available to all of our custom-ers and makes it possible for them to get the latest news on a company or situation so that they can utilize it to their advantage. The pictures you see here illustrate the fast, efficient service that Bache & Co. supplies to our cus-tomers. In our modern society, change is one thing that occurs every moment. Bache & Co. is aware of this and is constantly improving the service which we supply to our customers. Our country is grow-ing, Bache & Co. is growing and will con-tinue to do. This is why we have earned the title "THE STAMP OF QUALITY". Bache & Co.'s Raleigh Office, looking through the front door from South Salisbury Street. Left, shows communications department of Raleigh Office, Center, Raleigh Manager Robert J. Young chats with a customer. Right, fore-ground shows customers watching the day's trading on the board and in background salesmen handle telephone calls while three "casual" watchers may be seen standing in the rear. VINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 7 R. S. DICKSON RANKS IN TOP SEVENTY By Bill Hensley Director Public Relations One of the nation's leading investment >anking firms is a North Carolina com- >any which last year ranked in the top among the security dealers through-nit the United States. R. S. Dickson and Company, Inc., vhose principal office is in Charlotte, is he largest house on the east coast be-ween Washington, D. C, and Miami, Honda. Acting as underwriters, dealers and listributors for corporate and municipal securities, R. S. Dickson and Co. has branch offices in New York, Chicago, Atlanta, Richmond, Raleigh, Greensboro, Columbia, Green-ville, Jacksonville, St. Petersburg and Miami. In 1960 the Tar Heel firm had a busi-ness volume of over $175 million and the company had a net worth of nearly $5 million. It has been estimated that R. S. Dickson and Co. has distributed nearly two billion dollars worth of securities since the firm was founded in 1919. Un-told millions of that amount were for the expansion of North Carolina corpora-tions and municipalities. The history of R. S. Dickson and Co. is as intriguing as the stock market it-self. Rush Dickson, the founder and present Chairman of the Board, started in the securities business in modest fash-ion when he opened his first office in Gastonia in 1919. His first office con- 1. Rush S. Dickson, founder and chairman of the nvestment firm which bears his name. 2. William H. Palmer of R. S. Dickson's Municipal 3ond department confers on a bond issue with .ogan V. Pratt, vice president in charge of the >ond department. ). J. W. Berry Reid, branch manager of R. S. Dick-ton and Company's Greensboro office, dictates a teletype message to Judy Knight. I. R. Stuart Dickson, the firm's administrative vice president and son of the founder, goes over figures with one of the company's branch offices. :ach day he approves or disapproves deals which would commit the firm to millions of dollars in stock issues. 5. CHARLOTTE OFFICE SALESMEN — Registered representatives assigned to the firm's Charlotte office go over the day's activities with R. Corson Rose, assistant vice president in charge of the Charlotte sales office. They are Rufus Gwyn, Francis Price, Robert Barlowe, Rose and William E. Coxe. 6. RECEPTION AREA — Here is the company's re-ception area at the principal office in Charlotte. The receptionist is Helen Blanton. 7. The hub of any securities dealer is the Stock Trading Department. Here is a view of the R. S. Dickson trading desk. Left to right are Zeke Johnston, Walter Dulin, asst. vice president J. Lewis Bibb, vice president in charge Plato Pearson Jr. and Fern Lewis. 8. COMPANY PRESIDENT — J. Murrey Atkins, center, R. S. Dickson and Co. president, discusses a possible new issue with assistant vice president William B. Philips Jr., left, and vice president Hugh G. Ashcraft Jr. of the firm's Underwriting Department. 9. P. T. Withers Jr., vice president in charge of the Sales Department, dictates a teletype message to Mary Ball. The firm's 12 offices are connected by direct wire. PAGE 8 THE E. S. C. QUARTERLY WINTER-SPRING, 196 sisted of a typewriter, a telephone and a file cabinet. It also had a man whose reputation for being honest and depend-able was solid as a rock. Rush Dickson's desire to make good was strong and sin-cere. Actually, the venture into the invest-ment field was a gamble—but it was a gamble which has tui-ned out profitably for thousands of North Carolinians and the old North State itself. An aggressive 24-year-old cotton mill purchasing agent, he gave up a well-paying job to try his hand in a new field. "It was a gamble I had to take," he recalls. "I had made a little money buy-ing stocks and was fascinated by the way securities were bought and sold. I would never have been satisfied until I gave it a whirl." In the past 41 years probably all of the state's one hundred counties—as well as city, town and state govern-ments— have had bond issues underwrit-ten by the Charlotte investment com-pany. Last year the firm distributed over $100 million worth of general mar-ket and southern municipal bonds. About $25 million of that total was for issues in the two Carolinas. "Seeing money we provided go to work for better highways, schools and other improvements has been a real pleasure," Mr. Dickson says proudly. "We have always been interested in helping the home folks. If issues were too big for us to handle alone, we joined with other investment bankers to help insure success." Besides underwriting and distributing stock and bond issues, the Dickson com-pany has helped numerous corporations in other ways. The firm has played a key part in many successful mergers and acquisitions and has been retained as financial consultants by corporations tak-ing a close look at their capital struc-ture. R. S. Dickson and Co. has been a lead-er in the move to attract more industry to the Tar Heel state by offering capital and other assistance to interested con-cerns. The Perfecting Service Company of Charlotte, a recipient of Dickson aid, recently celebrated its tenth anniversary in North Carolina. After a strong beginning in 1919 when the company made $65,000, a depression in 1920 resulted in a loss of $125,000. "That depression taught us two things," Mr. Dickson says emphatically: "watch for changes in business cycles and di-versify holdings." In order to diversify the company holdings, Dickson bought his first munici-pal bond issue in 1920 and his personal investment philosophy, "safety through diversification", is a result of the 1920 decline. "It is the age-old story of not putting all the eggs in one basket", he advises. Dickson and Co. grew despite the '20 setback and opened its first branch office in Greenville, S. C, in 1922. A Golds-boro, N. C. branch followed in 1924 and the firm's New York office was opened in 1925. Heeding the "bearish" advice of an economic expert, Dickson liquidated his personal and company holdings in 1928 and escaped the "Big Crash" the follow-ing year. From 1928 to 1932, the firm operated as brokers, buying and selling strictly oh a commission basis. The company's reputation and stand-ing were enhanced considerably in 1932 when it bought defaulted municipal bonds. "We were one of the few invest-ment bankers in the nation who made firm bids on the line", Mr. Dickson ex-plains. "About sixty per cent of the North Carolina units were in default, since so much public money was tied up in closed banks." Doing business on a "service before profit" theory, R. S. Dickson and Co. ex-panded rapidly through the years and is continuing to set a rapid growth pace. The company employs approximately 125 persons in its 12 offices. Many large and well-known firms owe a portion of their success to R. S. Dick-son and Co. Among the group are these North Carolina industries: Duke Power Co., Champion Paper and Fibre Co., Carolina Power and Light Co., Textiles, Inc., Drexel Enterprises, Piedmont Nat-ural Gas Co., J. B. Ivey and Co., Rose's Five and Ten Cent Stores, Jefferson Standard Life Insurance Co., State Capi-tal Life Insurance Co., Home Finance Group, Inc., Auto Finance Co., Carolina Telephone Co., Southern Bell Telephone Co. and others. A giant among giants, R. S. Dickson and Co. has brought much prestige to the Tar Heel state because of its high standing in the investment field. Car Here is Your Council of State Governor Terry Sonford and the Council of State. This photo, mode in the Governor's Office in the Capitol shows, left to right: Charles Gold, Insurance Commissioner; L. Y. Ballentine, Commissioner of Agriculture; Charles Car-roll, Superintendent of Public Instruction; Thad Eure, Secretary of State; Frank Crane, Commissioner of Labor; Kenry L. Bridges, State Auditor; Wade Bruton, Attorney General; and Edwin Gill, State Treasurer. WINTER-SPRING, 1961 ~y\ THE E. S. C. QUARTERLY PAGE 9 INVESTMENT BANKING AT THE STATE'S CROSSROADS By Marshall H. Johnson McDaniel Lewis & Co., with its prin-cipal office in Greensboro, is North Caro-lina's second oldest independent invest-ment banking- firm. McDaniel Lewis was Its founder and is now Chairman of its )oard of directors. The Company almost j'rom its beginning-lias been located at che crossroads of ;he state in the Tefferson Standard Building. ! McDaniel Lewis, a. native of Kinston, k graduate of the University of North Carolina and an in-fantry officer in JOHNSON World War I, entered the municipal Dond field in 1922 and became a special-ist in the preparation and sale of bonds )f North Carolina cities and counties be-fore the Local Government Commission bame into being. He was the author of die first published story about North Carolina Municipal Bonds, prepared for Investors and for the instruction of sales-men, a publication which has had wide lational distribution. He has for many years been a director of the North Caro-ina Municipal Council and has twice erved as President of the Securities Dealers of the Carolinas. A public spir-ted citizen, he is currently the Chairman )f the Executive Board of the North Carolina Department of Archives and History, served the entire seven years is Chairman of the Greensboro Selective Service Board in World War II; was a bunder and for three years president of ;he Greensboro Historical Museum, and aas served as presiding officer of several North Carolina patriotic and historical societies. He is a member of the Alpha Tau Omega Fraternity, the Greensboro Country Club and the Baptist Church. For many years the company trade-mark has been an outline of the map of North Carolina. It believes, along with Governor O. Max Gardner, who, during the great depression, said "Our most cherished possessions are the faith, cred-it and character of North Carolina. Be-hind each bond of this state stands the character, honesty, integrity and re-sources of a people who will make many sacrifice to defend and protect the good name of North Carolina." Since 1934 the company has held membership in the Investment Bankers Association of America. In the early thirties the company start-ed trading Jefferson Standard Life In-surance Company shares and local bank stocks, both of which it has specialized in ever since. It then branched out into nationally and locally traded industrial issues and mutual funds. It was quite natural, with its early start, central lo-cation and interest in the full develop-ment of the economic and industrial po-tentials of North Carolina, that the company should also become an impor-tant factor in the underwriting and dis-tribution of local and national corporate securities in diversified industries, as well as municipal bonds. Beginning in the 1930's the company participated as an underwriter or distributor in several notable North Carolina issues, revenue bonds of the State Laboratory of Hy-giene, revenue issues for the construc-tion of the electric plant at Chapel Hill and several dormitories at the three 'rincipal officers of McDaniel Lewis Co., left to ight: McDaniel Lewis, Chairman of the Board of Jirectors; Marshall H. Johnson, President; Edward I. Lowry and E. Kemp Reece, Vice Presidents. 1. View of Central Control Room showing secre-taries, Vice-President Edward R. Lowry and Presi-dent Marshall H. Johnson. 2. Corner of Trading Room showing teletypewriters which connect with dealers all over the nation. including at left direct wire to floor of Midwest Stock Exchange. Left to Right: Assistant Steve Wilkerson, Trader E. Kemp Reece, Vice-President; and Secretary Ruth Tickle. PAGE 10 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 units of the University of North Caro-lina, a revenue issue for the North Caro-lina Forestry Foundation, and State of North Carolina Highway and School Building Bonds. Also such corporate is-sues as the original sale to the public of shares of Burlington Mills, Cone Mills, Blue Bell, Inc., Auto Finance, Chadbourn- Gotham, Alba Hosiery, Drexel Furniture and Colonial Stores, to mention a few. The company has also acted as partici-pating or managing underwriter or dis-tributor for Carolina Telephone and Telegraph, Carolina Casualty Insurance, Piedmont Natural Gas, Roberts Compa-ny, Security Life & Trust, Carolina Pow-er and Light, Duke Power, First South-ern Company, Wise Homes, Southern Plastics Engineering, Black Panther, Cerlist Diesel, GMC Finance Group, Top- O-The-World Farms and Equipment, Crown Aluminum, Carolina Natural Gas, Carolina Pipeline, North Carolina Natur-al Gas, Jackson's Minit Markets, and many others. The firm was instrumental in the for-mation of the first publicly held Small Business Investment Company in North Carolina, Pinnacle Investment Corpora-tion (a Small Business Investment Corp.) Also, the Company was associated with others in the underwriting and sale of Public Housing Authority bonds. Many years of association, experience and contacts with national leaders in the underwriting field have resulted in the company attaining underwriting posi-tions in many of the nation's best known companies, some of which are American Telephone & Telegraph, Tennessee Gas Transmission, Transcontinental Gas Pipeline, Texas Eastern Transmission, Ryder System, and First Charter Finan-cial Corp. In addition to its underwriting activi-ties the company maintains active trad-ing not only in the shares of companies it underwrites but in such local and na-tional companies as Jefferson Standard Life, North Cai-olina Railroad, State Capital Life, Pyramid Life, Occidental Life, Peninsular Life, North Carolina National Bank, Wachovia Bank & Trust, Bank of Greensboro, First Union Nation-al Bank, First Citizens Bank & Trust, Textiles, Inc., American-Marietta, Frank-lin Life, Nationwide Corporation, Richardson-Merrill Co., Bevis Shell Homes, Holiday Inns, Central Charge Service, Automatic Canteen, Automatic Retailers, Lucky Stores, Midland Capital Corporation, Investors Diversified Serv-ices, J. P. Stevens, Rose's 5-10-25<' Stores, and many others, both listed and over-the- counter. In the private placement field the most notable accomplishment was the compa-ny's sale of City Industrial Bank to Wachovia Bank & Trust Co., enabling the largest bank in Southeastern U. S. A. to achieve perhaps its greatest recent expansion in the City of Greensboro. As sponsoring dealer the company has helped to qualify in North Carolina some of the best known mutual funds, and for many years has been distributor for Wellington, Putnam, Massachusetts In-vestors, Group Securities, National Se-curities, Commonwealth, Fidelity, Chem-ical, Incorporated Investors, Colonial Energy, Dreyfus and others. The latest important development re-lating to the company was its installa-tion in early 1961 of the first direct wire from Greensboro ever opened to the floor of any exchange. The wire goes without relay to the company's floor broker (trader) at the Midwest Stock Exchange in Chicago, from which point the com-pany is able to execute transactions in stocks not only traded in on the Midwest but also in New York and other cities, including those on the economically fast growing Pacific Coast. This fast service complements the already wide service to buyers and sellers which the company has for many years conducted in the largest market in the world—the Over-the- Counter securities market. This same direct wire connects the company with certain other securities dealers in Georgia, South Carolina and North Car-olina. Membership is maintained in Mid-west Stock Exchange and Midwest Stock Clearing Corporation. A. C. Allyn & Co., Chicago, with branch offices in 31 cities, is the company's correspondent. Marshall H. Johnson, a native of Raleigh, is President of the Company. He served during World War II in the Navy in the Pacific, and is an alumnus of the University of North Carolina. Working as a reporter for Dun & Brad-street in Raleigh and Durham, he joined the company as Eastern Sales Repre-sentative in November 1947. He attended the LB.A. Investment Banking Seminar at Wharton Graduate School of Finance for three sessions and received its certi-ficate. He became a Partner of the firm in 1951 and Managing Partner in 1956. When the company was incorporated September 1, 1959, he was elected Presi-dent. He served a term as Secretary of the Securities Dealers of the Carolinas, and was Chairman of the Southeastern Group State Legislation Committee of the Investment Bankers Association of America, when the North Carolina Se-curities Law was modernized. For two years he has been a member of the very important Business Conduct Committee of District 10, (Maryland, District of Columbia, Virginia and North Carolina) of the National Association of Securities Dealers, Clubs: Kiwanis; Greensboro Country Club; Director of Piedmont Sales Executives; Member of Alpha Tau Omega Fraternity, The Odd Fellows, and the Baptist Church. He has served as a director of First Southern Co., and is now a director of CMC Finance Group, Top-O-The-World Farms and Equipment Co., and Pinnacle Investment Corpora-tion (a Small Business Investment Corp.) Edward R. Lowry, vice-president, is in charge of the municipal and corporate bond, and institutional departments. A graduate of the University of Tennessee, he also studied for two years at the Wharton Graduate School of Finance, University of Pennsylvania. Before com-ing from Tennessee to North Carolina to enter the investment banking field he was purchasing agent for American Bemberg Corp. and North American Ray-on Corp., Secretary and director of Har ris Manufacturing Co. and director of Superior Hardwood Flooring Co. He joined McDaniel Lewis & Co. in Novem-ber 1956 and became a General Partner in May 1957. On September 1, 1959 he was elected Vice President and director. He has had experience in corporate ac-counting and taxes on a local and state wide basis. Member Starmount Forest Country Club. Elder in the Presbyterian Church. E. Kemp Reece, vice president, runs the trading department, assisted by Stephen L. Wilkerson. Mr. Reece is a native Tar Heel and graduate of Wake Forest College. Before joining the com pany in August 1956 he was sales repre sentative in Central Carolina for George A. Breon Co., Manufacturing Druggist He has been president of the Greens-boro W. F. C. Deacon Club, and has been active as a member of the Junior Chamber of Commerce, the Kiwanis Club, Greensboro Country Club, is a Ma son, and member of the Board of Ste-wards of the Methodist Church. Besides the principal officers named above, the following are associated with the firm: in Greensboro, Cashier Jarvis J Arthur, Jr.; Assistant trader Stephen L Wilkerson, Vice President Kenneth C Wible and C. Franklin Miller, registered representatives Willard C. Robbins and Ernest Kahn. Registered representatives in other cities : Vice President R. Thorn-ton Hood, Kinston; Vice President Robert E. Lee, Jr., Greenville; Vice President Richard M. H. Stock, Morganton; Ro-bert J. Clemens, Durham; John H. Mc-j Kinnon, Red Springs; Charles C. Lucas j Charlotte; A. L. Barham, Selma; and T. J. Alford, Roanoke Raipds. The many activities of the company are important parts in the over-all ob-jective and purpose of the company whicr is to provide North Carolinians and others with the means for planning and developing of personal and family estates, company profit sharing and pen sion plans, corporation and institutional investments, opportunity for capital ap-preciation and increase in investment in-come; in short, a complete service foi those who have funds, or the means tc accumulate funds, for investment. Th< company believes that "Invest in Ameri-ca" is a good rule to follow for achieve-ment in the American capital system Operating in "The Industry of Integrity' the firm naturally bases its success oi public confidence. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 11 J. LEE PEELER AND COMPANY OPENED IN 1946 J. Lee Peeler & Company, Inc. Durham, North Carolina With over 20 years experience in the financial world behind him at that time, J. Lee Peeler opened the door of the firm that bears his name in April of 1946. Having been associated with The First National Bank of Miami, The First National City Bank of New York, the Wall Street firm of Colgate, Hoyt and Company, and two local firms, Mr. Peel-er decided to strike out for himself. Today—1961—Lee Peeler is regarded by the municipal bond fraternity as one of the most highly qualified and compe-tent authorities on municipal finance in the "Old North State." He is presently Chairman of the North Carolina Securi-ties Advisory Committee, past President of The Securities Dealers of the Caro-linas, and past President of The Raleigh- Durham Bond Club. Since 1946, the Firm has taken part in hundreds of underwritings with parti-cipations totalling many millions of dol-lars. It is probable that there as no community in the state with which J. Lee Peeler & Co., Inc. has not become asso-ciated to the extent of buying and selling ! its debt obligations. It would be fair to say that whenever competitive bids are sought on any proposed bond issue in North Carolina, J. Lee Peeler & Co., Inc. will be among those expressing their views. . Associated with Mr. Peeler in the Mu-nicipal Department of the Company is his son, Jonathan, a vice-president of the firm, who works jointly in the opera-tion of the department in addition to his duties as manager of the Charlotte branch office. Jon Peeler is also specializ-ing in municipal bonds of South Caro-lina. He has been actively employed with the Company since 1951. In recent months, J. Lee Peeler & Co., Inc. has embarked upon an expansion program with the long range view of full diversification into all forms of corp-orate securities and mutual funds in addition to the now thriving municipal bond department. The firm has always dealt in equities and mutual funds, but these areas have been largely incidental to the municipal bonds. In November of 1959, Clyde L. Green joined the Peeler organization with the purpose of eventually heading up the Corporate Department. His responsibili-ties include research, trading, and corp-orate underwriting. Among the better market performers recommended from 1960 to date by J. Lee Peeler & Co. might be included: Aeronautical Elec-tronics (Aerotron) Cowles Chemical Co., Crumpton Builders, Inc., First Union National Bank, Heinicke Instrument Co., and Spur Oil Co. In April 1960, the well-known local firm of R. S. Hays & Co. merged with J. Lee Peeler & Co. "Bob" Hays, as he is known to his friends and colleagues throughout the state, then became a vice-president of J. Lee Peeler & Co. Mr. Hays has the Durham office as his home base. In July 1960, J. Lee Peeler & Co. open-ed its Raleigh office when Lloyd E. Canady joined the Company as a vice-president. Mr. Canady was formerly proprietor of his own securities firm in Raleigh and later a member of the Howard C. Traywick organization of At-lanta. George L. Lyon of Durham, a vice-president, has been in the securities busi-ness for a number of years—having been previously associated with First Securi-ties Corporation of Durham and H. A. Riecke & Co. in their Daytona Beach office. Responsible for cashiering operations of J. Lee Peeler & Co. is Mrs. Billie A. Bisplinghoff, Assistant Treasurer. Mrs. Bisplinghoff has been associated with the Peeler Company since 1955. Also connected with the Company are Mrs. C. L. Yearwood, Jr. and Mrs. W. D. Harris in the Durham office and Mr. Harvey C. Elliott in Washington, N. C. In the course of day-to-day operations, J. Lee Peeler & Co. is able to receive and execute orders for practically all types of securities, be they listed on ma-jor domestic exchanges or traded over-the- counter. The Over-the-Counter Market, how-ever, is the primary focal point. It is here that most of the dollar volume is handled because it is here that one may find traded most of the securities avail-able to investors. U. S. Government ob-ligations, municipal bonds, bank and in-surance stocks, as well as some of the bluest of the blue chips among invest-ment quality common stocks—all of the foregoing are traded over-the-counter and primarily only over-the-counter. It is for this reason then—the almost end-less variety of securities available as well as the wide range of quality inher-ent in such a large selection—that Peel-er & Co. prefers to emphasize the Over-the- Counter Market. To customers, a number of services are available. First (and perhaps most important) is conscientious recommenda-tion as to "buy," "sell," "hold," etc. with reference to specific securities. Second is prompt execution of orders. Finally is the Firm's readiness to analyze and discuss with every customer his holdings, his needs, and his objectives. The Firm's policy is to emphasize SERVICE—to all who wish it—regardless of whether their account is large or small. The securities field is a large one and it is expanding at an accelerating pace. In the past, J. Lee Peeler & Co., Inc. has always been highly regarded but little known outside of the municipal bond professionals. In the future the CHAIRMAN'S COMMENTS —Continued from page 2 — Requests for copies of this edition of the QUARTERLY exceed the total num-ber usually printed. While we would like to furnish everyone with as many QUAR-TERLIES as they request, our limited budget precludes this. However, our printers, The State College Print Shop, Raleigh, will gladly furnish reprints of four-page articles at $18 per thousand. These will have the same page-size as the QUARTERLY and will carry the line "As Reprinted from the E. S. C. Quarterly". These orders should be sent directly to the printer. BACHE AND COMPANY IS INTERNATIONAL IN ITS SCOPE (Thin is the story of an international financial firm.) High-wheeled bicycles were all the rage in 1879; New York's current trans-portation problem concerned safety on the steam-powered El; in commercial use for only a year, the telephone was still a novelty as broker's equipment. Then as now, Wall Street was the na-tion's financial nerve center, but the New York Stock Exchange was regarded by the majority with awe and a tinge of disgust. Stock trading was a highly specialized activity for professionals only, and the first million-share day was still some years in the future. Against this background the brokerage firm of Leopold Cahn & Co., the forerun-ner of present-day Bache & Co., was founded on May 15, 1879. The following year, 19-year-old Jules Semon Bache, Leopold Cahn's nephew, started work as cashier. Son of a Bavarian glass mer-chant but himself a native New Yorker, he subsequently served as treasurer, Ex-change partner, and active director and in 1892 the firm was reorganized under his name as J. S. Bache & Co. In 1914, Harold L. Bache, like Jules, went to work for his uncle and except for service in the 308th Infantry during World War I, has ever since devoted his life to the work of the firm. Once again family history repeated itself and he in turn took over the reins as senior partner when the firm re-organized as Bache & Co. This change occurred in 1945, the year following his uncle's death on March 24, 1944 at the age of 82. Today, Bache & Co. is the largest brokerage firm under one management —Continued on page 22 Company plans to ba equally well known and respected among investors generally and it is to that end that the scope of operations has been widened. PAGE 12 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 INVESTMENTS IN THE FUTURE - STORY OF FUND INVESTMENTS, INC. By Margaret Barnard Brinson Enter into a world of dreams—dreams that can be had only by planning today. Ours is a business of making tomor-row's dreams come true through careful and factual planning today. Fund Investments, Inc., of Charlotte, is an investment firm specializing in mutual funds. The primary objective of the Company is serv-ice to its clients. The Company serves everyone—from the lower economic class to the millionaire — from the college graduate to the per- BRINSON son who could obtain only a few years of schooling—from the manual laborer to the company president. The Company even serves small children whose parents are planning now for college educations for these children. In essence, the Com-pany serves everyone. Fund Investments, Inc., was incorp-orated in the state of North Carolina in April, 1959, as Fund Investments, Inc., of the Carolinas (serving both North Carolina and South Carolina). The name was shortened in June, I960, to allow for expansion to other states. As a begin-ning of this expansion, the management of Fund Investments, Inc., undertook the management of Fund Investments Inc., of Florida (formerly Washington Plan-ning Corporation of Florida), in January, 1961. The registered representatives of Fund Investments, Inc., come from any num-ber of backgrounds. At present there are approximately 105 representatives work-ing in North Carolina and South Caro-lina. Their backgrounds include teachers, lawyers, engineers, insurance agents, ac-countants, retailers, real estate develop-ers, radio salesmen, writers, military personnel (both active and retired), furriers, merchants, truck drivers, me-chanics, printers, housewives, sales rep-resentatives, etc. From such varied backgrounds they come to serve others of similar backgrounds. Fund Invest-ments, Inc. constantly is searching for people who believe in mutual funds, who want to serve their neighbors, and who can sell a dignified and quality item, a person whom others will respect and whose advise they will follow. Such peo- Author of this article for publication in the E.S.C. QUARTERLY is Margaret Barnard Brinson (Mrs. M. C. Brinson. Jr.). Mrs. Brinson is a graduate of the University of North Carolina with a Master of Arts degree in Communications. She was Promotion Writer and Public Service Director of WJZ-TV (Baltimore, Md.), after grad-uation. Upon returning to North Carolina in 1959, she accepted the position as the first Promotion Manager of the Charlottetown Mall. She resigned in October, 1960, to accept a position with Fund Investments, Inc., with which she had been reg-istered as a part-time representative since June 1960. pie Fund Investments, Inc., will train as registered representatives and invest-ment consultants under the supervision of Mr. Clay L. Morgan, Director of Sales. Today more than 2,500,000 people in the United States own about $18,000,000,- 000 in mutual funds. (Kalb, Voorhis & Co., "Odd Lots—from the News," Jan-uary, 1961.) Mutual funds are the average man's way of letting his money have a change to grow. By combining his money with that of thousands of other investors, large and small he can afford the serv-ices of professional management to handle, invest, and supervise his money constantly—24 hours a day, 365 days a year. After all, investing is a full-time job which is best handled by profession-als, men who have devoted their lives to the world of finance. You wouldn't try to perform surgery yourself, or argue your own law case, or even wire your house for electricity, unless you were trained to do so. Therefore, why try to invest your money—your future—unless you have the training, the knowledge, that comes from working constantly in a financial atmosphere whei'e you will know exactly what is going on, what to do with your own money to get the best advantages? As we said, investing is a full-time job which is best handled by professionals. This is how a mutual fund works. You invest your money, which is combined with that of thousands of other investors, and hire professional managers who will study financial trends and watch your investment constantly. Your money is invested in many stocks in order to spread the advantages and the risks. Four times a year you receive dividends from your investment (either in cash or traditional shares in the mutual fund), also, if a profit is made through sale of securities by the investing company, you 1. Monday morning meeting of full-time represen-tatives. From left to right: Miss Eleanor Corriher, Mr. William G. Potter, Mr. Booth W. Gillespie (of Kings Mountain, N. C), Mr. Arthur D. Weese (Manager of Universal Services), Mr. H. Stanley MacClary, Mr. George B. Petty, Jr., (of Rock Hill, S. C), and Mr. Clay L. Morgan (Director of Sales). Others are from Charlotte, N ,C. 1. Representatives from North and South Carolina hold a "Eatin' Meetin' " at the Woman's Club in Charlotte in November, 1960. 3. New Board of Directors was elected at opening of Jacksonville, N. C. branch office. From left to right: Lt. Gen. J. P. Riseley, USMC (Ret.), RAdm. A. I. Malstrom, USN (Ret.), Mr. Thomas J. Flaherty, Jr. (President of Universal Programs, Inc., of New York, not a Board member), Sister Perfection, Miss Marjorie G. Hugo, Maj. Gen. Randall M. Victory, USMC (Ret.), Mr. F. Roger Page, Jr., and Mr. S. Holmes Plexico. Not pictured is Board Member Mr. T. Stuart Coffey, Jr. 4. Fund Investments, Inc., had a booth at the Mecklenburg County Fair in Charlotte in October, 1960. The booth was awarded a ribbon for being the "Most Creative" (one of two ribbons awarded to commercial booths). Representatives manning the booth are (left to right) Mr. John Edd Queen, of Shelby, and Miss Eleanor Corriher and Mr. Ben-ny Templeton, both of Charlotte. Continuous films about mutual funds were shown in the theater area on the left. An interview room was at the right. receive your share (either in cash or additional shares in the mutual fund). You can liquidate your holdings when- —See Investments, page 14 — Host of the Jacksonville, N. C, branch office was Col. P. J. Speckman, USMC (Ret.), Director of Military Sales and Branch Manager of the Jack-sonville office. He is showing the new offices to Mr. Thomas J. Flaherty, Jr., (right) President of Universal Programs, Inc., of New York, special guest at the Open House. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 13 Joe K. Matheson — Investment Securities Joe K. Matheson Investment Securities When the Japanese dropped the bombs on our Naval Base at Pearl Harbor the shock waves emanating from the islands finally caught up with a Duke Power appliance salesman of the Hickory, N. C. Branch. A year later instead of electric appliances, this fellow found himself in the mutual fund business rep-resenting a Charlotte, N. C. firm (LOUIS G. ROGERS & COMPANY) who had for some years previously been the pioneer of this "new concept" in the investment banking field. JOE K. MATHESON At that time—1942—there were in N. C. only three or four registered se-curities dealers specializing in the sale of mutual funds. All of these were small operations—affectionately known in the trade as "one man shops". The larger dealers and houses for all practical pur-poses did not engage in the promulgation in the distribution of this "Boston type" investment—the 100 stocks in one idea. It is generally accepted that the mu-tual fund industry was born in Boston in 1923. However the basic idea has been used in Europe for several hundred years. In 1942 when I entered the busi-ness, there were possibly twenty five fairly well known mutual funds. The entire assets of the whole industry was possibly between two and three billion dollars. Today there are over 150 mutual funds whose combined assets are over 15 billion and having more than 5 mil-lion shareholders. No wonder the mutual fund industry is called the financial mar-vel of this age. American mutual funds are owned by thousands of the people of foreign countries. We Mutual Fund Specialists are a "race set apart" in the field of invest-ment. Set apart in that we believe that in this fast moving kaleidoscopic eco-nomic world of ours that investors, large or small, need professional counsel and management. We hold that the busy executive and professional man in most instances is far too engrossed in his own affairs to be able to devote the time and "burn the midnight oil" necessary for consistent successful investing. Please note, we do not refer to speculation — just investing. The writer represented the above mentioned Louis G. Rogers & Company who has been called in the industry as "The John the Baptist of the mutual fund industry in the South" until he (the writer) answered the call of duty and country—via the local draft board in early 1943 and after considerable schooling in Boston and Jacksonville fin-ally ended up in the beautiful Hawaiian Islands where he served safely ashore and without distinction until the Navy discharged him November 11, 1945. "I formed my own dealership in 1951 and hung out my shingle—Mutual Funds". I am listed as a broker/dealer specializing in mutual funds and am a member of the National Association of Securities Dealers. At that time I was the only registered broker /dealer be-tween Charlotte and Asheville. This geo-graphic factor required that in addition to my first love, mutual funds, that it was propitious that I offer an additional service in individual securities for the convenience of the residents of my im-mediate area. This I still do. It is not my intention to use this ar-ticle and privilege as a forum for the mutual fund industry. Instead I hope to possibly clarify the picture for those who may not be too well acquainted with this approach by a few observations from the standpoint of the dealer. By the use of the three cardinal principles of sound investing—professional selection wide diversification, and constant man-agement, the mutual funds offer a dealer a tool he can trust and work with. The weight of responsibility that is inherent in the business of helping others invest hard earned money is felt by everyone who works for the best interest of his client. That burden is lightened for the dealer who used the funds as vehicles as he is always aware that his client's holdings are under constant professional management. Money is a most cherished —See Investment Securities, page 14 — BETTY D. CANUPP Carolina Securities Corp. Raleigh, North Carolina One of the pioneer investment bank-ing firms of North Carolina is Carolina Securities Corporation. Through its pre-decessor companies this firm has con-tinued in uninterrupted operation since 1932, and is one of the oldest investment firms in North Carolina. The Company's chief business activity is the buying and selling of corporate securities and bonds for individuals and institutions. The Company maintains an experienced re-search department which makes finan-cial studies of indus-t^"'~~ f* I tries and individual | companies, and is- !aP>|M sues reports of their -^fc j| findings from time ANDERSON to time. Carolina Se-curities differs from the usual broker-age type securities firm in that it special-izes more in supervisory service and long-term investment programs, rather than day-to-day trading. Another important phase of Carolina Securities' business is the supplying of capital for the expansion of new or exist-ing industries. Through this underwrit-ing activity Carolina Securities has been instrumental in the more rapid develop-ment of some of Carolina's best known companies. Among them are: Piedmont Aviation, Inc., Maola Milk and Ice Cream Co., Superior Cable Corp., Carolina Pow-er and Light Company, Coble Dairy Products, General Telephone Company of the Southeast, Colonial Stores, Inc., Tide-water Natural Gas Company, Drexel Furniture Company, and several others. President of Carolina Securities is Glenn E. Anderson, who has been with the firm since 1934. Recently he com-pleted a year of service as Chairman of the Board of Governors of the National Association of Securities Dealers, the largest organization of brokers and se-curities dealers in the United States. He was also one of the founders and the first president of the Securities Dealers of the Carolinas. Chairman of the Board of Directors is Fred W. Reebals, Raleigh, who has been connected with the business since 1933. Other officers are C. Strad-ley Kipp, Vice President and manager of the Charlotte office; G. Hearst Rosser, Durham, Vice President; S. J. Steele, Raleigh, Vice President; J. W. None-man, Raleigh, and G. Calhoun Pruitt, Rockingham, Assistant Vice Presidents; J. P. Abernethy, Raleigh, Secretary and Treasurer; and C. F. Crutchfield, Raleigh, Assistant Secretary. Headquarters offices are in the Insur-ance Building, Raleigh, and full-time of- —See Carolina Securities, page 18 — PAGE 14 THE E. S. C. QUARTERLY WINTER-SPRING, 196' N. C.'s Manpower Resources and Training Needs By James C. French Bureau of Research and Statistics Staff Seven Area Labor Market Analysts are now visiting firms throughout North Carolina seeking information relative to current and future manpower require-ments. The need for this information stems from the growing shortage of well-trained technicians and skilled-craftsmen for industry. Among other factors having a great effect on the current shortage of techni-cal workers in our State is the rapid conversion from a basically agricultur-al economy to an in-dustrial one. The phenomenal expan-sion of industry throughout the State, and the count- French less new applications of scientific devel-opment have also increased the demand for technically trained workers. There is a fast growing recognition of the im-portant position played by the technician and the highly-skilled worker on the manpower teams of industry. In North Carolina it is believed that the job of training workers is not alto-gether industry's responsibility. The state is aware of an ever-increasing chal-lenge to keep its manpower abreast of the demand, and to anticipate local needs with well-planned and well-organized curriculums in the field of technical-vo-cational education. This challenge is be-ing met to the limit of available re-sources and abilities. The 18 Industrial Education Centers now operating or be-ing established throughout the State are already providing many hundreds of workers with critically needed skills. In the very near future, it has been said the number of people being trained by the Industrial Education Centers of North Carolina will exceed the combined en-rollment of all State supported colleges and universities. There is an urgent need, however, for a set of guidelines for use in planning and expanding a technical-vocational ed-ucation program which is consistent with manpower requirements of employ-ers among widely diversified industries. The Employment Security Commission of North Carolina has joined forces with the State Board of Education and the United States Department of Labor in an effort to assemble necessary occupation-al information for developing the needed guidelines. One of the first phases of the overall study as planned is a state-wide survey of current and future tech-nical manpower requirements and train-ing needs. Thus far, we have experienced excel-lent cooperation from the firms which have been contacted. Most of these, we have found, are concerned about techni-cal manpower problems and they are us-ually more than willing to make any contribution they can toward further ad-vancing vocational-technical education in North Carolina. Industry stands to gain an added source of much-needed technicians and highly skilled workers; likewise, industrial-vocational training can make a valuable contribution to the well-being of those individuals who seek to increase their own capabilities and earning potential. The information being developed in this survey is intended to provide a sound basis for further development of the industrial productivity of the North Carolina workforce. It is believed that this program affords industry an oppor-tunity to contribute to North Carolina's continued economic growth. INVESTMENT SECURITIES —Continued from page 13 — possession. It must be dearer than life itself—because we give our lives for it. It deserves the best treatment available. Associated with us are: Mrs. Betty D. Canupp, Cashier-Bookkeeper, Mr. W. H. "Bill" Duhling of Hickory, Mr. Melvin P. Hawkins of Asheville and Miss Mary Forest McAdams of Charlotte all reg-istered representatives. Miss McAdams represents the "new look" in the invest-ment banking business— the invasion of the women into what was once the do-main of males only. Joe K. Matheson was born in Iredell County and attended Troutman High School, entered Trinity College of Dur-ham in 1923, and was graduated from Duke University in 1928 with AB in Business Administration. He lives in Hickory and he and Mrs. Matheson have four children, three daughters and one son. He has four grandchildren—a pair of each kind. My prized possessions of this world are my three beautiful daughters, my fine young son, my four grandchildren, and my "roving can" wastebasket. There is a story about that wastebasket. Up here in this textile area it has long been considered a mark of distinction to have a "roving can" as a wastebasket as these cans are cylindrical fibre yarn containers about 18 inches in diameter and stand-ing a good four feet tall. In the old tra-ditional "cotton mill" of yesteryear — only the "boss" or the head man was allowed to take this yarn container for his use in "the front office". Its use as a waste basket was an unmistakable sym-bol of one who had arrived. We haven't arrived but we have the "roving can"! I hold memberships in the Catawba Country Club where I now serve as a director, The First Methodist Church, the Bogey Golfers Club and the Repub-lican Party. INVESTMENTS IN FUTURE —Continued from page 12 ever necessary without having to look for a buyer; the Mutual Fund Company will buy back the shares at the net asset value. The money is yours to use when-ever you need it without having to pay a penalty or interest for the privilege of borrowing. The basic ingredients to investing through mutual funds are time and money. If you are a young man with a small income but you have quite a few years before you will need money for education of your children or retirement, you have time on your side. It is pos-sible to reach the same goal as an older man with more money but with less time. Remember, you can build your fi-nancial estate through Mutual Funds with TIME and MONEY. One of the many unique and far reach-ing aspects of Fund Investments, Inc., was the establishment of Universal Serv-ices in April, 1959, as a separate com-pany to work in consultation with Fund Investments, Inc. This company, under the direction of manager Arthur D. Weese, an expert in the field of profit sharing, has helped to establish profit sharing and retirement plans in many top businesses in North Carolina. Some of the firms which have installed profit sharing plans through consultations with Universal Services are the Western Auto Associate Store in Jacksonville, Rowan Printing Company in Salisbury, Powers and Anderson Dental Company in Char-lotte and Dorsey's, Inc., in Charlotte, to name only a few. Through profit sharing plans these employers are creating fu-ture financial estates for faithful em-ployees who work today to build large and strong companies. In November, 1960, Fund Invest-ments, Inc., opened its first branch of-fice. This office is located in the New River Shopping Center in Jacksonville, N. C. Opened primarily to serve the Camp Lejeune area, this branch office is managed by Colonel P. J. Speckman, USMC (Ret.), who also is Director of Military Sales for Fund Investments, Inc. The officers and Board of Directors of Fund Investments, Inc., are composed of a qualified group of business and military leaders. The President of the Company is Sister Perfection, an out-standing financier with a wide back-ground in banking and investments. First Vice-President is Mr. S. Holmes Plexico, of Salisbury, who is President of the Home Savings and Loan Associa-tion and President of the Rowan Print-ing Company, Salisbury. Second Vice- President is Major General Randall M. Victory USMC (Ret.), of Jacksonville. Secretary-Treasurer is Marjorie G. Hu-go, who before becoming associated with Fund Investments, Inc., was a dairy ac-counting consultant, a teacher, a mathe-matician, and a Major in the WACS. —See Investment, page 21 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 15 SAVINGS AND LOAN ASSOCIATIONS IN NORTH CAROLINA Aberdeen Savings & Loan Assn., Aber-deen Hertford County Savings & Loan Assn., Ahoskie Albemarle Savings & Loan, Albemarle Home Savings & Loan, Albemarle Peoples Savings & Loan, Asheboro Randolph Savings & Loan, Asheboro Belmont Savings & Loan, Belmont Benson Savings & Loan, Benson Pitt Savings & Loan, Bethel Biscoe Savings & Loan, Biscoe Black Mountain Savings & Loan, Black Mountain Bladen Citizens Savings & Loan, Blad-enboro Watagua Savings & Loan, Boone Candor Savings & Loan, Candor Canton Savings & Loan, Canton Citizens Savings & Loan, Carthage Orange County Savings & Loan, Chap-el Hill Mutual Savings & Loan, Charlotte Peoples Savings & Loan, Charlotte Cherryville Savings & Loan, Cherry-ville Rowan County Savings & Loan, China Grove Clinton Savings & Loan, Clinton Clyde Savings & Loan, Clyde Cabarrus County Bldg. & Loan Assn., Concord Citizens Savings & Loan, Concord Concord Perpetual Bldg. & Loan, Con-cord Cornelius Savings & Loan, Cornelius Home Savings & Loan, Dunn Home Savings & Loan, Durham Mutual Savings & Loan, Durham Farmville Savings & Loan, Farmville Cross Creek Savings & Loan, Fayette-ville Fayetteville Savings & Loan, Fayette-ville . Macon County Savings & Loan, b rank-lin Franklinton Savings & Loan, Frank-linton Gastonia Mutual Savings & Loan, Gas-tonia Citizens Savings & Loan, Goldsboro Goldsboro Savings & Loan, Goldsboro Graham Savings & Loan, Graham Granite Savings & Loan, Granite Falls Gate City Savings & Loan, Greensboro Home Savings & Loan, Greenville Hamlet Savings & Loan, Hamlet Henderson Savings & Loan, Hender-son Home Savings & Loan, Henderson Hertford Savings & Loan, Hertford First Savings & Loan, Hickory Atlantic Savings & Loan, High Point Perpetual Savings & Loan, High Point Piedmont Savings & Loan, High Point Hillsboro Savings & Loan, Hillsboro Kenly Savings & Loan, Kenly Home Savings & Loan, Kings Moun-tain Kings Mountain Savings & Loan, Kings Mountain Mutual Savings & Loan, Kinston Home Savings & Loan, Landis Scotland County Savings & Loan, Laurinburg Home Savings & Loan, Leaksville Citizens Savings & Loan, Lenoir Mutual Savings & Loan, Lenoir Industrial Savings & Loan, Lexington Mutual Savings & Loan, Lexington Perpetual Savings & Loan, Lexington Liberty Savings & Loan, Liberty Lincolnton Savings & Loan, Lincoln-ton Robeson Savings & Loan, Lumberton Madison Savings & Loan, Madison McDowell Savings & Loan, Marion First Savings & Loan, Mebane Mocksville Savings & Loan, Mocks-ville Marion Savings & Loan, Marion Peoples Savings & Loan, Monroe Citizens Savings & Loan, Mooresville Burke County Savings & Loan, Mor-ganton Mount Airy Savings & Loan, Mount Airy Peoples Savings & Loan, Mount Gilead Mutual Bldg. & Savings, Mount Holly Mount Olive Savings & Loan, Mount Olive New Bern Savings & Loan, New Bern Citizens Savings & Loan, Newton North Wilkesboro Savings & Loan, North Wilkesboro Oxford Savings & Loan, Oxford Pinehurst Savings & Loan, Pinehurst Plymouth Savings & Loan, Plymouth Raeford Savings & Loan, Raeford Raleigh Savings & Loan, Raleigh Ramseur Savings & Loan, Ramseur Randleman Savings & Loan, Randle-man Red Springs Savings & Loan, Red Springs Mutual Savings & Loan, Reidsville Roanoke Rapids Savings & Loan, Roa-noke Rapids Robbins Savings & Loan, Robbins Peoples Savings & Loan, Robersonville Richmond County Savings & Loan, Rockingham Peoples Cooperative Savings & Loan, Rockwell Citizens Savings & Loan, Rocky Mount Homes Savings & Loan, Rocky Mount Rowland Savings & Loan, Rowland Roxboro Savings & Loan, Roxboro Citizens Savings & Loan, Salisbury Home Savings & Loan, Salisbury Sanford Savings & Loan, Sanford Home Savings & Loan, Scotland Neck Cleveland Savings & Loan, Shelby Shelby Savings & Loan, Shelby Home Savings & Loan, Siler City Smithfield Savings & Loan, Smithfield Southern Pines Savings & Loan, Southern Pines Southport Savings & Loan, Southport Spindale Savings & Loan, Spindale Mitchell County Savings & Loan, Spruce Pine St. Pauls Savings & Loan, St. Pauls Star Savings & Loan, Star First Savings & Loan, Statesville Home Savings & Loan, Statesville Jackson County Savings & Loan, Sylva Edgecombe Homestead & Loan, Tar-boro Tarboro Savings & Loan, Tarboro Taylorsville Savings & Loan, Taylors-ville Home Savings & Loan, Thomasville Peoples Savings & Loan, Thomasville Montgomery Savings & Loan, Troy Valdese Savings & Loan, Valdese Anson Savings & Loan, Wadesboro Wake Forest Savings & Loan, Wake Forest Warrenton Savings & Loan, Warrenton Beaufort County Savings & Loan, Washington Home Savings & Loan, Washington Haywood Savings & Loan, Waynesville Weldon Savings & Loan, Weldon Wendell Savings & Loan, Wendell Ashe Savings & Loan, West Jefferson Peoples Savings & Loan, Whiteville Wilkes Savings & Loan, Wilkesboro Martin County Savings & Loan, Wil-liamston Carolina Savings & Loan, Wilmington Citizens Savings & Loan, Wilmington Cooperative Savings & Loan, Wilming-ton Peoples Savings & Loan, Wilmington Atlantic Savings & Loan, Wilson Wilson Home & Loan, Wilson Standard Savings & Loan, Winston- Salem Winston-Salem Savings & Loan, Wins-ton- Salem Federal Savings and Loan Associations in North Carolina: Asheville, Asheville Federal Savings & Loan Association. Brevard, Brevard Federal Savings & Loan Association. Burlington, Community Federal Sav-ings & Loan Association. Burlington, First Federal Savings & Loan Association. Charlotte, First Federal Savings & Loan Association. Charlotte, Home Federal Savings & Loan Association. Conover, First Federal Savings & Loan Association. Durham, First Federal Savings & Loan Association. Fayetteville, Home Federal Savings & Loan Association. Forest City, First Federal Savings & Loan Association. Gastonia, First Federal Savings & Loan Association. Greensboro, Home Federal Savings & Loan Association. Greenville, First Federal Savings & Loan Association. —See Savings & Loan Asso., page 18 — PAGE 16 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 90 YEARS OF SAVINGS AND LOAN IN NORTH CAROLINA In 1870, approximately forty years after the first building- society was form-ed in Pennsylvania, the North Carolina Legislature enacted a statute permitting the organization and operation of such associations in this state. The preamble to the originial act as taken from the Public Laws of North Carolina, Session of 1869-70, Chapter 129, reads as follows: "An Act to be entitled An Act Author-izing the Incorporation of Homestead and Building Associations in this State. Whereas, divers persons, chiefly of the Industrial classes, are desirous of form-ing associations for the purpose of ac-cumulating by small periodic deposits, a savings fund with which they may secure a homestead, and for their mu-tual benefit; and WHEREAS, it is the dictate of a sound policy that the pro-tection and encouragement of the legis-lature should be given to associations having in view ends and objects so com-mendable in their character, therefore: Section 1. The General Assembly of North Carolina do enact—That from and after the passage of this act it shall and may be lawful, and authority is hereby given to any individuals or persons in any city or county in this State, under any name by them to be assumed to as-sociate for the purpose of organizing and establishing homestead and building associations— " While the original act provided gen-erally for the organization of such as-sociations and set forth certain conditions for doing business, it did not make any State official responsible for their super-vision. The only official referred to in the original act was the Clerk of Su-perior Court, with whom the association was required to file a copy of the articles of such corporation. Inasmuch as the Clerk of Superior Court was the responsible official it is almost impossible to know when or where the first association was opened for business. However, we have documentary proof that the Mechanics Building and Loan Association of Greensboro was organized in 1872. There is also evidence that a number of other associations were chartered during the 1870's. A number of associations were chart-ered from 1880 to 1900. We have several associations chartered during this period that are still in existence. In fact, there are fourteen associations still in opera-tion that were chartered in the 19th Cen-tury. These associations are still being operated: 1881—June 12—Mutual Savings and Loan Association, Charlotte 1883—Mechanics Perpetual Building & Loan Association (now Home Feder-al)— Charlotte 1887—February 5—First Savings and Loan Association, Statesville 1887—September 21—Citizens Building & Loan Association, Wilmington 1887—September 22—New Bern Sav-ings and Loan Association, New Bern 1888—January 10—Citizens Building & Loan Association (now Citizens Fed-eral) Rutherfordton 1888—Concord—Kannapolis Savings and Loan Association, Concord 1889—September 6 — Edgecombe W. C. YORK Deputy Commissioner, Savings & Loan Division, N. C. Insurance Commission. Homestead & Loan Association, Tarboro 1889—October 24th—Wilson Home & Loan Association, Wilson 1889—November 20—Winston-Salem Savings & Loan Assn., Winston-Salem 1889—December 4—Anson Savings & Loan Association, Wadesboro 1890—August 3—First Savings and Loan Association, Hickory 1898—March 17—Cooperative Savings and Loan Association, Wilmington 1898—March 31st—Cabarrus County Building, Loan & Savings Association, Concord The coming of the 20th Century brought on a greater demand for such associations and most associations still in existence were chartered prior to 1930. In 1933 the President of the United States, Franklin D. Roosevelt, among other things, proposed legislation which brought into being many housing pro-visions, among which was authorization for creation of Federal Savings and Loan Associations. While the State chart-ered associations did serve and still are serving the great business purpose of promoting thrift and home ownership, they did so to the extent the Federal Government recognized the stimulating influence these institutions had on the economy. In addition to the chartering of Federal Associations, the new legisla-tion contained provisions for setting up the Federal Home Loan Bank System and the Federal Savings and Loan In-surance Corporation. Today we have what is known as the dual system of chartering. Proponents of new associations have the choice of ap-plying to state authorities or to Federal authorities for permission to open for business. Both systems provide for mem-bership in the Federal Home Loan Bank System and for the insurance of accounts by the Federal Savings and Loan Insur-ance Corporation. Such insurance was made available to all associations, both State and Federal, and most associations at the present time have such insurance. With the great increase in population during the past two decades, it became apparent that Savings and Loans were needed institutions. Thus, the modern Savings and Loan Association began to take its rightful place in our economy. It must be apparent to people every-where that the management of these in-stitutions is composed of typically high class citizens. But the most important thing is that they are local people who, for the most part, are encouraging other local people to let their money be used so that their neighbors might have a home of their own. Because of this local influence the associations are making approximately 40% of all home loans in this country today. Another reason for this high percentage is because Savings and Loan Associations are specialized home owner credit institutions. Most associations, by the terms of their charter and by rules and regula-tions of the Supervisory Authorities, are limited to making* loans on homes. Some loans, of course, are made on commer-cial property, but the primary statutor-ial purpose of Savings and Loan Asso-ciations is to help build or buy a home. There is no safer investment than a first mortgage on a family's home. Because of this safety and because home loans are made for a long term, a higher re-turn can be paid to those who invest their funds with these institutions. During the period from December 31, 1950, through December 31, 1960, the as-sociations in North Carolina had a phe-nomenal growth. The assets of these institutions increased more than 400%. The increase was from $330,000,000.00 to $1,375,000,000.00. The associations have become full grown and mature in-stitutions in the financial field. They are assuming their rightful responsibilities in almost every community in this state, both civic and economic wise. These as-sociations pay into the General Fund of North Carolina each and every year more —See 90 Years, page 21 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 17 CONSERVATIVE MANAGEMENT IS KEY TO GROWTH Cameron Village Organized in September of 1937, First Federal Savings and Loan Association of Raleigh completed the year showing-total assets of $20,008.25. Twenty-three years later, it had grown to become the fourth largest association in the state, its 1960 financial statement listing over 35.8 million dollars in assets. During the last decade, the growth of the associa-tion has been so great as to warrent attention by the whole savings and loan business, and its story was carried in a recent copy of "Savings and Loan News," a trade magazine of the business. First Federal feels that conservative management has been the major factor contributing to its growth during the past ten years. The lending and reserve policies as determined by its Board of Directors have created public confidence Zebulon Branch in the association, confidence which is re-flected in an almost nine-fold increase in savings during the 1950's. The present Board of Directors is composed of men who are leaders in the community and well qualified to serve in an institution providing the specialized services of a savings and loan association. Among them are included a contractor, an attor-ney, the president of a steel fabricating company, and an officer of the Carolina Power and Light Company. These men, as are the other directors, are well aware of the economic and building trends of the area served by the association and are therefore able to determine policies which benefit both it and the community. A second growth factor is the internal harmony, the planning, and the friendly attitude of the association. The associa-tion realizes that the customer is the most important person connected with it and strives to provide more than simply courteous service. Moreover, the associa-tion is continually developing and chang-ing its own operations to provide the most efficient methods based upon tech-nological advances. In addition, the as-sociation conducts its own training pro-gram, utilizing the many educational facilities of the U. S. Savings and Loan League, to ensure that its officers and staff keep abreast of the latest develop-ments in the field. tomer to purchase certificates in multi-ples of $100.00. Its current dividend rate of 4% ensures a better than average re-turn to the saver. It also offers Christ-mas Club accounts to foster the idea of saving for a special occasion. In the field of lending, the association now handles over 4,000 mortgage loan accounts. The proceeds of these loans, made only on improved real property, have been used for many purposes. While home ownership has always been the cor-nerstone of the savings and loan busi-ness, loans made by First Federal have also enabled individuals to make repairs to existing dwellings, to go into a busi-ness of their own, to consolidate debts, New Bern Avenue Branch A third factor which has attributed to the growth of the association is the service it offers. First Federal offers al-most all of the services available under its charter. At present, it services over 13,000 savings accounts, all of which are insured up to $10,000.00 by the Federal Savings and Loan Insurance Corporation. These accounts are primarily composed of regular savings, or passbook accounts, in which the customer may place any amount of money at any time; and in-vestment accounts, which allows the cus- Main Office and to accomplish other worthwhile en-deavors. In addition, the association of-fers FHA Title I Home Improvement loans. These loans, which are unsecured, offer additional opportunities for the homeowner to make additions or im-provements to his home. The association has indicated its posi-tion of leadership in many other ways. Its managing officer and Executive Vice President, Mr. R. D. Beam, is presently —See Conservative Mgt., page 21 — J. M. PEDEN BOARD OF DIRECTORS E. L. LAYFIELD R. D. BEAM JOHN N. COfFEY A. E. FINLEY W. H. WEATHERSPOON HOMER C. STARLING JAMES M. POYNER PAGE 18 THE E. S. C. QUARTERLY WINTER-SPRING, 196 Hendersonville's First Federal Savings Is Home Owned and Privately Managed The First Federal Savings and Loan Association of Hendersonville is a locally owned and privately managed financial institution designed to promote thrift and home ownership among the people of the area served. Its principal functions are implied in its name: (1) to gather together the savings of the community (2) to use the savings to make long term loans for the construction, repair, pur-chase or financing of homes. Federal sav-ings and loan associations are chartered by the federal government and automa-tically are members of the Federal Home Loan Bank system and the Federal Sav-ings and Loan Insurance Corporation. In the spring of 1934, the management and directors of the Hendersonville Building and Loan Association, a state chartered institution, decided to liquidate that association and at the same time start the operation of a Federal Associa-tion. The organizational meeting was held May 15, 1934 and the charter was granted July 27, 1934. The original officers of the association were T. L. Durham, President; Bruce Drysdale, Vice President; D. H. Lee, Secretary-Treas-urer (Manager); and J. Foy Justice, Attorney. Mr. D. H. Lee is generally con-sidered the founder of the Association and continued as its Manager until his death in 1948. The current President, Bruce Drysdale, was elected to this office in 1940 to suc-ceed T. L. Durham, deceased. At the same time the current Vice-President, Roy Johnson, was elected to succeed Mr. Drysdale. Mr. H. B. Kelly, Banker, Legislator (Florida) and Hotel Operator, suceeded Mr. Lee in 1948 when assets were slight-ly in excess of one million dollars. He served faithfully and well until June 1953 when he resigned to accept the position of Vice President and Manager of First Union National Bank and Trust Company of Asheville, Hendersonville Branch. The present Manager, Frank L. Hoyle, Jr., succeeded Mr. Kelly in July 1953 when assets were approximately three and one-half million dollars. Mr. Hoyle had worked with savings and loan as-sociations, The Reconstruction Finance Corporation and as a practicing attorney. He was also an Examiner with the Fed-eral Home Loan Bank Board before com-ing to this Association. Bob G. Sherman, originally employed with The First National Bank of South Carolina, Columbia, South Carolina, joined our staff as Secretary of the As-sociation in January 1959. Bernice E. Cameron joined our staff in 1954 and was named Assistant Secre-tary in 1958. At the present time, the Association occupies quarters at 131 Fifth Avenue West. Since the Association has experi-enced a very rapid growth for the past few years, it has out grown the present quarters and construction is under way for a new office building at the corner of Church and Fifth. The Board of Direc-tors authorized the Association to enter into a contract for the erection of this by First Federal is 4% per annum com-pounded semi-annually. All accounts are fully insured up to $10,000 by the Fed-eral Savings and Loan Insurance Cor-poration and not one cent has ever been lost in a federally insured association. new building in accordance with con-struction bids submitted in June 1960. Completion is expected around Septem-ber 1, 1961. The Board of Directors at the present time consists of the following members: Bruce Drysdale—1934 Roy Johnson—1937 W. A. Bennett—1942 W. M. Gregg—1935 Noah Hollowell—1934 Frank L. Hoyle, Jr.—1953 E. F. Latt—1934 C. M. Ogle—1934 G. C. Richardson—1936 Arthur B. Shepherd—1949 The First Research Corporation, con-sulting economists of Miami, Florida, was employed to aid this Association in submitting a proposal for a new branch office to be located in U. S. Highway #25 at Fairview Road, Fletcher, North Caro-lina. The report prepared by First Re-search showing economic conditions in the Fletcher area and including parts of both Henderson and Buncombe Counties, was completed and the application sub-mitted to the Federal Home Loan Bank on March 28, 1960. The Federal Home Loan Bank Board's resolution dated August 12, 1960 approved our applica-tion and authorized the new branch of-fice. Construction of modern building at Fletcher to be occupied by the Branch Office will be completed in time for oc-cupancy on or about May 1st. The build-ing of one story brick construction with basement is being erected by L. C. Youngblood and will be occupied under lease. The new Branch will soon be func-tioning with Paul W. Trantham as man-aging officer. At the present time First Federal's assets are in excess of 15 mil-lion dollars, and has a staff of twelve em-ployees and officers. The current dividend rate being paid SAVINGS & LOAN ASSO. —Continued from page 15 — Hendersonville, First Federal Savings & Loan Association. Hickory, Fidelity Federal Savings & Loan Association. Kinston, Home Federal Savings & Loan Association. Lincolnton, First Federal Savings & Loan Association. Mooresville, Mooresville Federal Sav-ings & Loan Association. Mount Airy, Workmen's Federal Sav-ings & Loan Association. New Bern, First Federal Savings & Loan Association. Raleigh, First Federal Savings & Loan Association. Reidsville, First Federal Savings & Loan Association. Roanoke Rapids, First Federal Savings & Loan Association. Roanoke Rapids, Rosemary Federal Savings & Loan Association. Rocky Mount, Builders Federal Sav-ings & Loan Association. Rocky Mount, First Federal Savings & Loan Association. Rutherfordton, Citizens Federal Sav-ings & Loan Association. Sanford, First Federal Savings & Loan Association. Shelby, First Federal Savings & Loan Association. Tryon, Tryon Federal Savings & Loan Association. Winston-Salem, First Federal Savings & Loan Association. Winston-Salem, Piedmont Federal Sav-ings & Loan Association. Asheville, Carolina Federal Savings & Loan Association. Dunn, First Federal Savings & Loan Association. Greensboro, American Federal Savings & Loan Association. CAROLINA SECURITIES —Continued from page 13 — fices are maintained in the Johnston Building, Charlotte, and 40 Wall Street, New York, New York. Inter-connecting wire services between the three offices facilitate company transactions. The Company has approximately twenty res-ident representatives who serve practi-cally all communities in North Carolina and several in South Carolina. Carolina Securities is a member of the Midwest Stock Exchange, Chicago, the largest exchange outside New York City, and ranks third in size in the United States. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 19 $150 THOUSAND TO $8 MILLION IN 10 YEARS OF GROWTH First Federal Savings and Loan As-sociation of Sanford, North Carolina was organized April 30, 1950 with assets of less than $150,000.00; the association to-day boasts of assets totaling nearly $8,- 000,000.00, a phenomenal growth of busi- TIGSS. During the year 1960 the directors, in order to provide the best and most mod-ern thrift and home financing services in the area, undertook and completed a new program to expand its office facili-ties. The new First Federal home office building was completed at the corner of Steele and Wicker Streets, Sanford, North Carolina, and a modern branch of-fice was opened in Pittsboro, North Carolina. This program was undertaken not only to make it easier, more conven-ient and more pleasant for First Fed-eral customers to transact their business, but also to attract new customers and serve more efficiently the greater num-bers of people now patronizing the in-stitution. First Federal savers have equally shared in record earnings paid for the use of their funds. A total of well over $1,000,000.00 in dividends has been dis-tributed since the organization of First Federal Savings and Loan Association only ten short years ago in April of 1950. At First Federal all of the earnings on mortgages and other investments are paid out to savers in the form of div-idends, after operating expenses and ad-ditions to reserves. The current dividend rate at First Federal is 4% per annum payable on June 30th and December 31st, and each account is insured up to $10,000.00 by the Federal Savings and Loan Insurance Corporation. First Federal is also especially proud of the savings and lending activity which the institution has been able to render since organization as well over $13,000,- 000.00 have been placed with the associa-tion and this amount in turn has been loaned to borrowers mainly to construct or purchase homes. —See 10 Years Growth, page 20— Tod Directors W. H. Ray, L. P. Wilkins, and L. P. Cox study house plans before deciding upon a loan. Center Directors T. J. Davenoort, W. R. Makespeace, Jr., and W. M. Womble consider a loan appli-cation.' Bottom shows the new home of Sanford's First Federal Savings and Loan Association. Directors L. D. Isenhour,, J. Victor King, and J. R. Ingram; Nordon. Pittsboro Teller Glenda Gaines, and Pittsboro Branch Mgr. J. Watson PAGE 20 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 WORKMEN'S FEDERAL HAS GROWN A MILLION A YEAR FOR SEVEN YEARS The charter of the Workmen's Federal Savings and Loan Association was is-sued originally as a state chartered As-sociation, under the name of Workmen's Building and Loan Association, in April of 1910. It has served the people of Mount Airy and surrounding areas con-tinuously since that time. Our area of operation covers five counties in the state of Virginia and seven counties in the state of North Carolina. Our assets at the present time are in excess of $17,000,000 and we are the largest financial institution between Winston-Salem and Asheville, North Carolina. Our operation has shown a growth of over $1,000,000 a year for the last seven years. At the present time our Association is serving over 8500 savings customers and we have over 4600 loan customers. All of the above are scattered over the above areas as well as a large number of sav-ings customers from many states in the union. Our Association is a member of the Federal Home Loan Bank Board system and its accounts are insured up to $10,- 000 by the Federal Savings and Loan Insurance Corporation. During the past year, which was the best year in its history even though going through the so-called recession, our Association increased its assets by $1,234,000 or 7.7% and also paid out in dividends the largest amount ever paid in this county. It was a total of $568,000, or roughly 25V2 % above the 1959 figure. Since the beginning of 1961 our As-sociation has continued to make progress and we look forward to even a better year in 1961. TEN YEARS GROWTH —Continued from page 19 — The real satisfaction of the Officers, Directors, and Staff of First Federal lies in the fact that the association enjoys the loyal support of so many thousands of savers and homeowners. First Fed-eral shall not be satisfied with past ac-complishments, but will continue looking for new opportunities to give better serv-ice for future growth and expansion. It is a challenge which has been accepted to provide the best in thrift and home financing services, as these services are the sole reason for our existence. Serving as First Federal directors are J. T. Davenport, W. R. Makepeace, Jr., L. P. Cox, W. H. Ray, J. R. Ingram, J. Victor King, L. P. Wilkins, Lewis D. Isenhour, and W. M. Womble, with W. M. Womble serving as Executive Vice President. Top, left, A. B. Carter, president of Workman's Federal Loan Savings and Association; right, J. B. Graves, secretary-treasurer; lower left (Sitting at Information Desk, left to right) Joe B. Graves, Betsv M Love and E. G. Webb, (Sitting at back desk) A. B. Carter and Frances C Smith, (At next desk) Lillie Mae Seism, (Standing at counter, left to right) Billie Nell Hiatt, Martha E. Piatt, Anne S. Gordon, Virginia P. Leach, and June A. Shinault. Right, A. G. Webb, assistant secretary WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 21 Cabarrus County Building, Loan and Savings Association, Started In 1898 Cabarrus County Building, Loan and Saving's Association was established in Concord, North Carolina in April 1898, md is one of the County's oldest finan-cial institutions. Thrift and Home Financing, leading :o Home Ownership, are the two major )bjectives that this Association and its shareholders have striven for during the nore than sixty-two years of its exis- ;ance. Today, Cabarrus County Building, ^oan and Savings Association occupies nodern and spacious quarters at 119 south Union Street, immediately opposite he Concord, Post Office. Services include nortgage loans and savings plans which ire tailored to meet the needs of its housands of shareholders. Convenient )rive-up-Window, adequate customer parking facilities and 24 hour envelope depository are but a few of the many features of this Associations new main office. In addition all savings are insured by the Federal Savings and Loan Insurance Corporation, and the Association is a member of the Federal Home Loan Bank System. This Association is also a mem-ber of the United States Savings and Loan League, the North Carolina Sav-ings & Loan League, and the Savings and Loan Foundation. With assets of more than $6,200,000.00 and over 5,000 Shareholders, the Cabar-rus County Building, Loan and Savings Association will continue to grow with the community, always striving to render better and greater service to its Share-holders. 90 YEARS SAVINGS & LOAN IN N. C. —Continued from page 16 — han $1,000,000.00 in the form of stock md excise taxes. The supervision of the 149 State-chartered associations is under the pop-dar Commissioner of Insurance, Charles <\ Gold. The Commissioner of Insur-mce appoints a Deputy who devotes his 'ull time to the Savings and Loan Asso-ciations and is the direct Supervisor of dl these institutions. The Supervisor at he present time is W. C. York. The Sup-ervisor has 10 field examiners that work ull time examining and auditing these issociations to see that they are being operated according to law and in a safe and sane manner. The examiners are ever alert to see that rules and regula-tions are being complied with and that the policies and procedures of the insti-tution are in keeping with good business principles. The integrity and the solven-cy of these institutions are under the scrutiny of the examiners who are ex-perts in their field. The Federal Savings and Loan Associations are subject to the same kind of checking except they are checked by the examiners of the Fed-eral Home Loan Bank Board. INVESTMENTS IN FUTURE —Continued from page 14 — Assistant Secretary is Mr. Arthur D. Weese, who also is Manager of Universal Services. Assistant Treasurer is Mr. G. Donald Ebert, who also acts as Controller for Fund Investments, Inc. The Board of Directors of Fund In-vestments, Inc., contains men and women outstanding in business, military, and fi-nance. Included on the Board are Sister Perfection, of Charlotte (President); Mr. S. Holmes Plexico, of Salisbury (First Vice-President); Major General Ran-dall M. Victory, USMC (Ret.), of Jack-sonville (Second Vice-President); Mar-jorie G. Hugo, of Charlotte (Secretary- Treasurer); RAdm. A. I. Malstrom, USN (Ret.), of Washington, D. C; Lt. Gen-eral J. P. Riseley, USMC (Ret.), of Roswell, New Mexico, who was com-manding General of Camp Lejeune at the time of his retirement in June, 1959; Mr. F. Roger Page, Jr., of Winston- Salem, President of the Page Oil Com-pany, the Page Real Estate Developers, and the Page Salvage Company; and Mr. T. Stuart Coffey, Jr., of Statesville, owner of Stuart Coffey and Company (yarn sales) and Regional Sales Manag-er of Fund Investments, Inc. Although Fund Investments, Inc., is a relatively young company, it is prog-ressing with seven league boots. It has the perfect service—how to help people's money grow. It has the magic money tree. It has faith in America and its great industrial system. It has faith in the future. CONSERVATIVE MANAGEMENT —Continued from page 17 President of the North Carolina Savings and Loan League. B. A. Jones, Assistant Manager and Vice President, serves as Treasurer of the Raleigh Chamber of Commerce. These two men and other personnel have served in many other capacities of leadership in both the sav-ings and loan business and the commun-ity. Among the other key officers of the association are David Boyles, Controller, who handles both savings and bookkeep-ing departments, and Earl T. Wilborn, Ass't Vice President and Manager of the Loan Department. In their positions, these two men are responsible for the overall operation of the two major de-partments of the association. The association presently maintains three branch offices in addition to its main office on Salisbury Street in Raleigh. These branches are located on New Bern Avenue near the Motor Vehicles Build-ing, in Cameron Village, and in Zebulon, a small town 20 miles east of Raleigh. Each branch is well equipped and able to provide all the services offered by the main office, except the approval of loans. During 1961, the association plans to move into a spacious new building pres-ently under construction one block from —See Conservative Mgt., page 29 — PAGE 22 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 THE FIRST SAVINGS AND LOAN IS HICKORY'S OLDEST FOX By Edgae L. Fox Executive Vice President The First Savings & Loan Association of Hickory is the oldest financial insti-tution in Hickory and ranks among some of the oldest savings and loan associa-tions of the state. Chartered as a state association in April 1890, it has served in the upbuild-ing of Hickory and its suburbs for over seventy-one years. It was organized by • ^ a group of forward-looking business and professional men who felt the need of an organization that would help people to become home owners and at the same time would also pro-vide a place for the savings of those who had funds to invest in the best security to be found—a first mortgage on a home. The first directors of the association were a group dedicat-ed to helping their neighbors and friends obtain their own home, thereby building a better community, and would have con-sidered it an insult to be asked_ to ac-cept any remuneration of any kind for their services. The association, since its organization, has had only five Presi-dents, which bears out the fact that they were willing to serve long and well for a cause in which they believed. The First Savings & Loan Association, although it has been operated conserva-tively from the very beginning, has had a remarkable growth. Its assets today are $13,000,000.00, whereas only ten years ago, the assets were only $3,000,- 000.00. It has more than 4200 savings accounts totaling $11,500,000.00, and first mortgage loans of $11,300,000.00. Each savings account is insured up to $10,000.00 by the Federal Savings & Loan Insurance Corporation of Washing-ton, D. C, a governmental agency similar to the Federal Deposit Insurance Cor-poration which insures savings in com-mercial banks. The association is also a member of the Federal Home Loan Bank of Greensboro, and as a member of this bank enjoys a large line of credit, if and when needed, to be used in making mort-gage loans and in paying withdrawal of savings. It also has a strong liquidity position, as a substantial amount of cash and Government bonds are carried in its portfolio. Each year a substantial amount is set aside as reserves to take care of any losses that might be sustained by reason of severe adverse economic conditions. Reserves at the present time amount to over $1,000,000.00, adding to the strength of the association. Individual, partnership, corporation, joint, and trust savings accounts are of-fered to those desiring a safe and con-venient place to invest their savings at the highest rate of return consistent with sound operating practices. It has been observed that those investing their money want safety first, availability next, and then a high rate of return. First mortgage loans are made prin-cipally on one-family homes, however the association makes loans on apart-ments, commercial property, and churches, when funds are available. All loans are made on an amortized basis up to a period of twenty years, and the majority are the conventional type loan, although quite a number of VA and FHA loans have been made. Several years ago the association's office building was completely remodeled and refurnished, and today has office quarters that are attractive and ampf for the association's needs. A lot has recently been purchased, looking forwarc to the erection of a branch office building at a future date. There are at the present time ovei 6000 savings and loan associations in th< United States with total assets of ap proximately 70 billion dollars. Service u the paramount aim of these associations and the First Savings & Loan Associa tion of Hickory looks forward to serving the people of Hickory and its suburbs as it has for over three score and ten years and also hopes to maintain for Hickory its designation as "The Best Balancee City." Interior of First Savings and Loan of Hickory. BACHE & CO. -Continued from page 11 — for over 82 years. Serving 82 cities in the United States directly, it also has ten foreign branches, as follows: Hong Kong, Montevideo, Montreal, Toronto, London, Paris, Geneva, Frankfurt, Rome, Milan, with representatives in Mexico City, South America and Japan. The firm holds memberships on all securities and com-modities exchanges, including four mem-berships on the New York Stock Ex-change. Bache & Co. was a pioneer in helping in the financing that is making Canada a potential colossus among nations, and was one of the first American houses to acquire a membership on the Stock Ex-change at Toronto where it maintains branch. Present-day operations are, perhaps moi'e complete than those offered by an other brokerage, covering all securitie trading- , whether it is in the great coi porations in exchange trading, or reg ional companies on smaller exchange; or Over-the-Counter or unlisted dealing; The firm is equally prominent in a types of commodity transactions, and ir eludes a Metals Department that was Bache innovation and is still largely er elusive with the firm. The Syndicate Department, which pa) —Continued on page 38 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 23 Private Citizens Take Over the Obligation of Bringing Safety to N. C. Highways "We are killing people at the rate of :hree a day on our North Carolina high-ways. Something must be done about it." rhese terse words were said by Governor rerry Sanfcrd to the newly organized ^Jorth Carolina Traffic Safety Council, March 22, 1961. The Governor indicated the positive ittitude of the entire group when he 5'aid "We are killing." There was no ioubt about that he meant. Every citizen ias an obligation in the "keeping of his ?ellow-man" alive on the highways. In ;wenty-two words he summed up the Droblem and provided a major factor in ts solution. The problem is death on the highway, rhe solution is many-headed. Responsi-jility for highway safety belongs to wery citizen of th
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Title | E.S.C. quarterly |
Date | 1961 |
Publisher | Raleigh, N.C.: Employment Security Commission of North Carolina,1947-1975. |
Rights | State Document see http://digital.ncdcr.gov/u?/p249901coll22,63754 |
Language | English |
Digital Characteristics-A | 120 p.; 23.55 MB |
Digital Collection | North Carolina Digital State Documents Collection |
Digital Format | application/pdf |
Title Replaces | U.C.C. quarterly** |
Audience | All |
Pres File Name-M | pubs_serial_escquarterly19611963.pdf |
Pres Local File Path-M | Preservation_content\StatePubs\pubs_serial_escquarterly |
Full Text | »»- kikni The E. S. C. Quarterly VOLUME 19, NO. 1-2 ^HrlTl ;v":'w*;" WINTER-SPRING, 1961 I Employment Security Commission of North Carolina Cover Legend On Page Two Finance Edition Complete Index On Page 115 PAGE 2 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 The E. S. C. Quarterly CHAIRMAN'S COMMENTS (Formerly The U.C.C. Quarterly) VOLUME 19, NO. 1-2 WINTER-SPRING, 1961 Issued at Raleigh, N. C. by the EMPLOYMENT SECURITY COMMISSION OF NORTH CAROLINA Commissioners : Mrs. Quentin Gregory, Halifax; Dr. Maurice Van Hecke, Chapel Hill; R. Dave Hall, Belmont; W. Benton Pipkin, Reidsville; Bruce E. Davis, Charlotte; Crayon C. Efird, Albemarle. State Advisory Council: Public representatives: James A. Bridger, Bladenboro, Chairman; Sherwood Roberson, Rob-ersonville; W. B. Horton, Yanceyville; Mrs. R. C. Lewel-lyn, Dobson, and Dr. J. W. Seabrook, Fayetteville; Em-ployer representatives: A. L. Tait, Lincolnton and G. Maurice Hill, Drexel; Employee representatives: Melvin Ward, Spencer, AFL and H. D. Lisk, Charlotte, CIO. HENRY E. KENDALL Chairman R. FULLER MARTIN Director Unemployment Insurance Division. JOSEPH W. BEACH Director North Carolina. State Employment Service Division TED DAVIS Editor Public Information Officer, Member Public Relations Society of America MARTHA JACKSON Associate Editor Sent free upon request to responsible individuals, agencies, organizations and libraries. Address: E.S.C. Informational Service, P. O. Box 589, Raleigh, N. C. INDEX APPEARS ON PAGE 115 Top Left: Nine Local Office employees of the Employment Security Com-mission are shown during a tour of the Central Office. Brought in for a week's training they are, left to right: Earl Swann, Wilmington; Charles Leatherwood, Asheville; Arthur Oanielson, Durham; William White, Gas-tonia; Ruth Felton, Raleigh; Jesse Beatty, Gastonia; Glenn Smyre, Lincoln-ton; Allen Bailey, Jr., Raleigh; Jim Fox, Hickory. Pointing to the machines focal point is Plans, Methods and Procedures Analyst Theodore Whitley who conducted the trainees on the tour. Top Right: The Planning Committee of Winston Mutual Life Insurance Company, Winston-Salem, poses for the QUARTERLY. Left to right, are A. W. McKnight, Agency Secretary; C. L. Hill, Secretary; Attorney P. A. Simmons, Agency Director; E. E. Hill, President; A. W. Harper, Auditor; George C. Hill, Comptroller; and Mrs. M. M. Bausman, Treasurer. Center Left: New Home Office of First Federal Savings and Loan Associa-tion, Raleigh, now under construction at the corner of South Salisbury and West Martin Streets. This is probably the first building in the State built with a basement constructed as a fall-out shelter. Top Right: Wachovia Bank and Trust Company, Charlotte Branch, main lobby. Designed for maximum banking service, convenience and comfort, the spacious lobby is on the second floor and is one of the most modern and impressive banking rooms in the South. Covering 11,000 square feet, it contains a 100-foot-long teller's counter of Brazilian rosewood and marble along with desks of officers serving the public. Electric moving stairways, automatic elevators and terrazzo steps provide customers with three means of easy access from the building lobby at street level to the second floor and main banking lobby. Bottom, Left: Governor Terry Sanford and Alex Galloway, President of R. J. Reynolds Tobacco Company, Winston-Salem, give serious considera-tion to problems confronting the newly Chartered North Carolina Traffic Safety Council. The Council was formed by private citizens at the sug-gestion of the Governor. Bottom Right: Studying ideas which beget industries is one of the strongest teams ever formed in the interest of raising North Carolina's economic level. They are, left to right: Roy Wilder, Assistant Director of the Depart-ment of Conservation and Development; Bill Henderson, Administrator of the Commerce and Industry Division, C&D; and Hargrove "Skipper" Bowles, Director of the Department of Conservation and Development. KENDALL Henry E. Kendall, Chairman Employmeyit Security Commission We believe this edition of THE E. S. C. QUARTERLY is the most complete exposition of North Carolina's enterprising financial institutions published. Practically every type finan-cial agency is included within these covers. The State, without private enterprise and the world of finance, would have no economy. There could be no factories, farms, or schools. This number of the QUARTERLY contains more than 150,- 000 words about North Carolina's finan-cial picture. As the economy of the State rapidly expands and rises, the services of the Employment Security Commission must also increase. Demands on the Agency grow and new methods and more efficient operations are coming about. Constant self-evaluation by the ESC helps bring about these changes to cope with the problems of economic growth. The North Carolina Traffic Safety Council, recently chartered, is described in detail in one article of this issue. Employment Security has a significant interest in this aspect of the State's economy. Every life that is saved through the efforts of this organization means one less worker for whom a replacement must be found. One less person to recruit, screen, test, train and place. Thousands of dollars are lost in training and experience each time an adult life is snuffed out on our highways. Reducing deaths and maiming accidents allows the ESC to give more time to those workers entering the labor force in increasing numbers every year. Another article shows the impact of the industrial growth of the 1955-1959 period on our economy. You may also read the story of the Temporary Extended Unemployment Com-pensation program. President Kennedy signed the act March 24. The probable effect of this program, and the anticipated number of exhaustees to be affected are pointed out. Tourism, a recent survey purports, is the third money-pro ducing industry of our State. The story of one facet of tour-ism is told in this edition. More than 2300 conventions, con claves, sales meetings, conferences, associations and othei major gatherings convene in this State each year. These con-ventions produce many jobs for North Carolina's labor force Not only are direct service jobs created, but many fringe jobs are brought about in the production of foods, souvenirs and clothing. Pointed up is the value of the new conventior dining room at the Morehead Biltmore in Morehead City This is the first facility on the coast that can easily handh banquets for more than 450 guests at a time. This one additior will increase the demand for many workers in the Carterei County area. Most of the financial and other institutions listed in this edition use the services of the ESC Local Offices to fill vacan cies. When Local Offices are unable to fill jobs, the State-Wid< Clearance Office is put to good use and often from its in ventory come workers from other sections for local needs. Ii our files are many letters attesting the effectiveness of th< ESC in filling these openings. The cooperation of the Research and Statistics Bureau o the ESC with the State Board of Education and the U. S. De partment of Labor is depicted in the story of the skills surve: now being conducted. More than 1000 employers will be in terviewed about their present and anticipated future need for skilled workers. —Continued on page 11 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 3 FUNDAMENTALS OF THE EMPLOYMENT SECURITY PROGRAM By W. D. Holoman, Chief Counsel Employment Security Commission of North Carolina The Employment Security Program has been in existence in North Carolina for twenty-four years, yet it is still a relatively new program as time is count-ed in the life of a State or of the Na-tion. It can be said that the Employ-ment Security Pro-gram is still in its infancy. There are many phases of the Employment Secur-ity Program which vitally affect the economy o f our holoman State and Nation, and which particularly affect workers and employers. There have been many developments in this program and many changes which have been brought about by our chang-ing economy. Obviously it will not be possible to deal with all of these develop-ments and changes in this discussion. It may be interesting, however, to examine briefly the background of the Employ-ment Security Program and some of the more significant features in respect to it. The Employment Security Program involves many aspects of our industrial and social life. The Social Security Act was passed by Congress in 1935, and it contained several programs dealing with social problems. These programs were formulated for the betterment of mankind and were trans-lated into what is generally known as the eleven titles under the Social Secur-ity Law. One of the eleven titles deals with un-employment insurance, now more com-monly termed Employment Security. The program, as the name implies, is directed toward the employment security of work-ers. In consequence of the enactment by Congress of the Social Security Act in 1935, the Unemployment Compensation Law was passed at a Special Session of the North Carolina General Assembly during December 1936. It was necessary to call this special session so that legis-lation could be adopted by a deadline provided in the Federal Act, and so that North Carolina employers could get ad-vantage of the offset provisions provided for under the Federal Unemployment Tax Act. The Legislature passed what was first known as the Unemployment Compensa-tion Law which created the Unemploy-ment Compensation Commission of North Carolina. Those designations did not properly identify the program, so in 1947, the Legislature changed the name of the Unemployment Compensation Law to the Employment Security Law, and likewise changed the name of the Com-mission to the Employment Security Commission. The Employment Security Commission, which administers the Employment Secu-rity Program, is solely a State agency administered by the State, but our funds for administrative purposes come from Washington. Our Legislature, therefore, makes no appropriation for our program. For a number of years until recently, the Federal Unemployment Tax Act has imposed a 3 percent tax on all employers, with certain exemptions, who are subject to that Act. An offset of 2.7 percent is allowed to employers who are covered under a State Employment Security Law; provided, that the State law meets cer-tain basic standards set forth in the Federal Act. Under this joint program those employers, who are subject, pay directly to the State on the basis of 2.7 percent of their payrolls and to the Federal Government they have been pay-ing, until recently, three-tenths of one percent on their payrolls, which of course, when added together, makes up the 3 percent over-all tax which has been imposed by the Federal Unemployment Tax Act. In 1960, Congress amended the Federal Act and increased thereby the over-all tax to 3.1 percent of the payrolls of covered employers. By that amendment the Federal Unemployment Tax rate was increased from three-tenths of one per-cent to four-tenths of one percent begin-ning with the calendar year 1961. The basic tax to the State still remains 2.7 percent. The rate for overdrawn accounts runs from 2.8 percent to 3.7 percent. The State law must conform to certain requirements set forth in the Federal Act, and it must be administered in sub-stantial compliance therewith in order for the employers in this State to get credit against the Federal tax of 3.1 per-cent; otherwise, employers would be re-quired to pay the full tax of 3.1 percent to the Federal Government and 2.7 per-cent to the State of North Carolina, which would be double taxation. The operating expenses of the State agency come from the four-tenths of one percent which the Federal Government collects directly from employers. This four-tenths of one percent, which is paid by covered employers directly to the Fed-eral Government, is put into the general fund of the United States and until re-cently was not earmarked. In 1955, how-ever, "The Reed Bill" was passed by Congress earmarking that fund. That bill provided that there should first be built up a 200 million dollar reinsurance fund for loans to States who were in distress and that such fund should be maintained. Then after the payment of the allotments to the States for administrative purposes, and after the payment for the adminis-tration of the Federal Act, the account of each State was credited with the pro rata share of such funds, which in turn, was credited back to the accounts of the employers on a pro rata basis. This law became effective July 1, 1955, and we received our first credit on July 1, 1956. Since the amendments by Congress in 1960, the Federal Act provides for the transfer of excess tax collections to the LOAN FUND until such LOAN FUND has reached 550 million dollars. After this amount has been reached the AD-MINISTRATIVE FUND is to be built up to 250 million dollars. After this goal has been obtained, any overage is to be returned to the trust funds of the States in accordance with the formula provided in the Reed Act except that the overage of any State with an outstanding loan will be applied against the loan. The Employment Security Commission is composed of two coordinate divisions, the Employment Service Division, and the Unemployment Insurance Division. The main objective of the Employment Service division is to maintain employ-ment and to find jobs for unemployed workers. The main objective of the Un-employment Insurance Division is to pay workers who are out of work through no fault of their own, and who are able and available for work—to pay benefits in order to bridge them over a period until they can find work. A very important function of the Unemployment Insurance Division is the collection of taxes from covered employers from which benefits are paid. The objectives of unemployment in-surance and of employment service are identical. They are both directed toward employment security of the worker. Both programs serve the same end—to help the worker find a job when he is unem-ployed and to help him bridge the gap in income between jobs. It is no part of the Employment Secu-rity Program to pay people who do not want to work. The test is not whether the unemployed worker needs the money, but whether he lost his job through no fault of his own and whether he wants another job; that is why a worker must register at a public employment office, be able to work and actively seek work, before he can be considered for benefits. At this point it may be well to consider what has been declared to be the public policy of our State as expressed by the Legislature when the law was passed in 1936, and which has not been amended since its passage. Section 96-2 of the Gen-eral Statutes of North Carolina provides as follows: "Declaration of State public policy — As a guide to the interpretation and application of this chapter, the pub-lic policy of this State is declared to be as follows: Economic insecurity due to unemployment is a serious PAGE 4 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 menace to the health, morals, and welfare of the people of this State. Involuntary unemployment is there-fore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crush-ing force upon the unemployed work-er and his family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to pro-vide benefits for periods of unem-ployment, thus maintaining purchas-ing power and limiting the serious social consequences of poor relief assistance. The legislature, there-fore, declares that in its considered judgment the public good and the general welfare of the citizens of this State require the enactment of this measure, under the police powers of the State, for the compulsory setting aside of unemployment re-serves to be used for the benefits of persons unemployed through no fault of their own. The original law contained a provision whereby all services performed by an individual for remuneration were deem-ed to be employment subject to the chapter unless it was shown to the satis-faction of the Commission that the serv-ices met certain conditions set forth in what we generally called the "ABC" provisions of the Act. In order for the services to be excluded from employment, the tests set forth in such section re-quired (A) the individual performing the services must be free from control and direction over the performance of such service both under the contract of service and in fact; and (B) such services must be performed outside the usual course of the business for which the services are performed or that the services be per-formed outside of all the places of busi-ness of the enterprise for which the serv-ice is performed; and (C) the individual performing the services must be cus-tomarily engaged in an independently established trade, occupation, profession or business. The Supreme Court of North Carolina construed the Declaration of State Policy quoted above in the case of State v. Willis Barber & Beauty Shop, 219 N. C. 709, 15 S. E. (2d) 4. The court stated in that opinion that the intent of the Legislature was to provide a wide scope in the ap-plication of such law in order to mitigate the economic evils of unemployment, to bring within its provisions employments therein defined beyond the scope of exist-ing definitions or categories, and that all doubts as to constitutionality should be resolved in favor of the validity of the Employment Security Law and all of its provisions. It was obvious that the court had in mind the definition of employment which was then contained in the law and which has been referred to as the "ABC" provisions, for certainly if those so-called "ABC" provisions were construed strict-ly the law encompassed many employ-ments beyond the scope of existing defi-nitions, and it was only in rare instances under such definition of employment that one could be an independent contractor. It was obviously the intent of the Legis-lature, with that definition of employment in the law, to reach out and include as many individuals as possible so that such individuals might be given protection from the evils of unemployment. Under the definition of employment which was originally in the law cover-age, therefore, went well beyond what is generally known as the master-servant relationship. Objections to this far-reach-ing definition in the law came from many sources and the Employment Se-curity Commission realized that the pro-visions which were originally contained in the Act were rather harsh. Con-sequently, the 1949 Legislature repealed the original definition of employment which was commonly referred to as the "ABC" provisions, and adopted a defini-tion of employment which is much more realistic based on the common law doc-trine of master and servant. This change in the definition of basic coverage re-quirement under the law obviously lightened the burden of some employers by eliminating from coverage those in-dividuals who were obviously independent contractors as known at common law. Other coverage provisions have been a-mended from time to time. From the inception of the Employment Security Program in 1937 until December 31, 1955, basically the program covered employers having as many as eight or more individuals in employment for as many as twenty different weeks within a calendar year, with certain exemptions such as agricultural labor, household and domestic servants, etc. In 1954 Congress amended the Fed-eral Unemployment Tax Act to extend its pi'ovisions, effective January 1, 1956, to employers with four or more workers during twenty weeks in a calendar year. Previously, the Federal law covered only those employers with eight or more per-sons, just as did the State law. The amendments to the Federal law forced North Carolina to amend its law to extend coverage to those employers with four or more individuals in employ-ment for as many as twenty weeks with-in a calendar year. Had North Carolina not amended its law those employers with from four to seven employees, inclusive, would have been required to pay the en-tire tax to the Federal Government with-out providing benefits to their employees. Approximately 10,500 additional firms have become subject to our Act, and approximately 55,000 additional workers have been added since such amendments to our law effective January 1, 1956. The newly-covered employers are those em-ploying four to seven workers inclusive. Few realize the extent to which oui economy is affected by the Employmenl Security Program. It is a big program and has a tremendous impact upon oui economy. The number of covered employ-ers subject to the Employment Security Law as of December 31, 1960, was 34,070 and there are almost a million workers covered under the program. Since contributions or taxes first be-came payable in 1937 through Decembei 31, 1960, contributions collected amount to $493,453,869 and interest earnings or this sum as of December 31, 1960 amounted to $63,611,368, making a cum-ulative total of interest and contributions of $557,065,237. These amounts do not include the Reed Bill funds which we have received since July 1, 1956, which amount to $2,545,480. We have paid bene-fits through December 31, 1960, in the total sum of $374,524,300, which left a balance in our reserve fund as of Decem-ber 31, 1960, of $185,086,417. The Employer Experience Rating Pro-visions of the law were adopted in order to encourage efforts towards stabilized employment. The law provides an incen-tive in the form of reduced tax rates to employers who give steady work. Those employers who provide reasonably steady employment can look forward to a reduc-tion in their tax rates. Employers who fail to provide, or who are unable to provide, reasonably steady employment can be allowed no rate reduction. Each covered employer in North Carolina has a separate account, and if an employer's account meets certain standards, then he is entitled to a reduced rate. The relationship between contributions credited to the employer's account and the benefits charged against it will de-termine whether or not he is eligible for a reduced rate. Certain standards or con-ditions must be met before an employer is entitled to a reduced rate. These standards or conditions are technical in nature and will not be discussed. The primary aim of the Experience Rating provisions is to encourage em-ployers to reduce unemployment by stabilizing their operations to the great-j est extent possible. Experience rating accomplishes this purpose by using the basic insurance principal of taxing according to the risk involved. The basic idea of experience rating is to fix responsibility for unem-ployment. It is those employers who have a large turnover in personnel who find it difficult to get a reduced tax rate. The normal State tax rate is 2.7 per-cent or $2.70 on the $100 payroll. It is possible under the North Carolina Law for an employer to get his rate reduced to lOtf on the $100 payroll. It takes an employer at least three years to get a reduced rate. Rates are reduced on a graduated scale. Since the beginning of the program employers in North Carolina have saved through 1959 $299,271,241 as a result of reduced rates through experience rating. It is estimated that by the end of 1960 WINTER-SPRING ,1961 THE E. S. C. QUARTERLY PAGE 5 employers had saved $324,400,000. So if employers maintain steady employment it is highly possible that they will enjoy a reduced rate at the end of a three-year period. There is one other phase of the pro-gram which should be emphasized. When ever a claimant for benefits files a claim and there is any question whatever as to his eligibility or if there is a possibil-ity that he is subject to a disqualification or penalty, the matter is referred to a Claims Deputy who sends a notice to the last and base period employers. Employ-ers are urged to have a representative at the hearings before the Claims Deputies and the Appeals Deputies in order to give evidence as to the real cause of the claimant's unemployment and availabil-ity. There is provided in the law a sys-tem of appeals whereby an aggrieved party may appeal from a Claims Deputy's decision to an Appeals Deputy, and if not satisfied, to the Commission, and ul-timately to the courts. The Claims Depu-ties, Appeals Deputies, as well as the Commission, must find facts based on competent recorded evidence. Though em-ployers may have advised the Commis-sion orally or by letter of the cir-cumstances surrounding a claimant's separation, or the circumstances in con-nection with his eligibility, facts cannot be found from such information as the Commission and its deputies are bound by the evidence. It can be understood, there-fore, that if an employer does not appear, a claimant may come into a hearing and testify; whereas, the employer may have facts entirely to the contrary. Yet if the employer is not present, facts must be found according to the claimant's sworn testimony. Benefit payments are charged to employer's accounts which tend to increase or keep rates up. It is interesting to know that claimants appear in approximately 85 percent of the hearings before Claims Deputies; whereas, employers appear at only 15 percent of such hearings. As a result of the hearings before Claims Deputies, about 60 percent are held ineligible or are disqualified for a certain number of weeks. What would the percentage be if 85 percent of all employers appeared? Employers are urged, therefore, to at-tend these hearings. The Employment Security Commission is an administrative agency and all of its representatives are anxious to be of service to employers and workers alike. Do not hesitate to call upon the agency or any of its representatives for any in-formation desired. You may be assured that we welcome the opportunity to be of service and the Commission desires to administer the program equitably to all. NORTH CAROLINA LICENSED SECURITIES DEALERS The following are the licensed dealers in securities registered with the Secre-tary of State. These 113 dealers, whose home offices are listed with the firm name, employ more than 450 salesmen who are also registered with the Secre-tary of State. Registrations listed are up for renewal March 31, 1961. Abbott, Proctor & Paine, Richmond 19, Va. Allied Securities Corporation, Greensboro, N. C. American Commercial Bank, Charlotte, N. C. American Diversified Securities, Inc., Washing-ton 6, D. C. American Securities Company, Charlotte 2, N. C. Amott, Baker & Co. Inc., New York 38, N. Y. Anderson & Strudwick, Richmond, Va. FIF Associates, Inc., Denver 3, Colo. Bache & Co., Raleigh, N. C. C. E. Beman, Laurinburg, N. C. Blair & Co. Incorporated, New York 5, N. Y. Robert E. Boyd d/b/a, Boyd Investment Com-pany, Winterville, N. C. Branch Banking & Trust Company, Wilson, N. C. Alex. Brown & Sons, Baltimore 2, Md. Brown, Bechard & Co., Ltd., Norfolk, Va. Brown, Madeira & Company, New York 5, N. Y. Bruns, Nordeman & Company, New York 5, N. Y. Calhoun & Company, Spartanburg, S. C. Capital Securities Corporation, Greenville, S. C. Carolina Securities Corporation, Raleigh, N. C. Cherokee Securities Corp., Southern Pines, N. C. Courts & Co., Atlanta 1, Ga. Thomas Darst and Company, Southern Pines, N. C. Development Corporation for Israel, New York 3, N. Y. Dick & Merle-Smith, New York 5, N. Y. R. S. Dickson & Company, Inc., Charlotte 2, N. C. UBS Distributing Corporation, Boston, Mass. Dow Corning Corporation, Midland, Mich. Dow Theory Forecasts, Inc., Hammond, Ind. Francis I, DuPont & Co., New York 5, N. Y. Eastman Dillon, Union Securities & Co., New Fork 5, N. Y. Frank L. Edenfiekl & Co., Miami 38, Fla. Equitable Securities Corporation, Nashville, Tenn. Erwin & Co., Inc., Durham, N. C. Federated Investors, Inc., Pittsburgh 22, Pa. Ferebee & Company, Andrews, N. C. Fidelity Management Company, Richmond, Va. First-Citizens Bank & Trust Company, Smith-field, N. C. First Securities Corporation, Durham, N. C. Fund Investments, Inc. of the Carolinas, Char-lotte 3, N. C. Glore, Forgan & Co., New York 5, N. Y. Goldman. Sachs & Co., New York 5, N. Y. Goodbody & Co., New York 4, N. Y. Hallgarten & Co., New York 5, N. Y. Halsey, Stuart & Co., Inc., Chicago 90, 111. Hamilton Management Corporation, Denver 17, Colo. E. L. Hardin & Company, Incorporated, Salis-bury, N. C. Harriman Ripley & Co., Incorporated, New York 5, N. Y. Harris, Upham & Co., New York 5, N. Y. Heritage Securities, Inc., Columbus 16, Ohio R. L. Hoffman d/b/a Hoffman Agency, Char-lotte, N. C. Hornblower & Weeks, New York 5, N. Y. Interstate Securities Corporation, Charlotte, N. C. FIF Investing Associates, Inc., New York 36, N. Y. Investors Diversified Services, Inc., Minneapolis 2, Minn. Jackson & Smith, Gastonia, N. C. Kidder, Peabody & Co., New York 5. N. Y. King Merritt & Company, Inc., New York 4, N. Y. Ralph B. Leonard & Sons, Inc., New York 4, N. Y. Loomis-Sayles & Company, Inc., Boston 10, Mass. Joe McAlister Co., Greenville, S. C. McAlister, Smith & Pate, Inc., Greenville, S. C. McCarley & Company, Inc., Asheville, N. C. McDaniel Lewis & Co., Greensboro, N. C. McGhee & Company, Cleveland, Ohio S. Wade Marr, Elizabeth City, N. C. Mason, Garlington and Wilcox Co., Atlanta 5, Ga. Mason-Hagan, Inc., Richmond, Va. Mason & Lee, Inc., Lynchburg, Va. Joe K. Matheson, Hickory, N. C. J. Sturgis May and Company, High Point, N. C. Maynard Investment Company, Hamlet, N. C. Merrill Lynch, Pierce, Fenner & Smith Incor-porated, New York 5, N. Y. H. L. Mitchell, Leaksville, N. C. Morrison and Company, Inc., Charlotte 2, N. C. J. Lee Peeler & Company, Inc., Durham, N. C. George B. Powell Co., Inc., Norfolk 10, Va. Powell, Kistler & Company, Fayetteville, N. C. Registered Funds, Inc., Charlotte, N. C. Renyx, Field & Company, Inc., New York 17 N. Y. Reynolds & Co., New York 5, N. Y. The Robinson-Humphrey Company, Inc., Atlan-ta 1, Ga. Louis G. Rogers & Company, Charlotte, N. C. Scudder Fund Distributors, Inc., Boston 9, Mass. Security Diversified Shares Management, Inc., Winston-Salem. N. C. Selected Investments, Wilmington, N. C. Service Securities, Inc., Newport News, Va. Auburn Hildreth Setzer d/b/a Mutual Plans Investments, Valdese, N. C. Smith, Barney & Co., New York 5, N. Y. Smith, Clanton & Company, Greensboro, N. C. Southern Investment Company, Charlotte, N. C. James C. Spooner, Arden, N. C. Sterling Fund Associates, Inc., Charlotte, N. C. Strader and Company, Inc., Lynchburg, Va. John G. Taylor d/b/a Taylor Investment Com-pany, Kinston, N. C. Thomson & McKinnon, New York 4, N. Y. Howard C. Traywick & Company, Inc., Atlanta 3, Ga. Trust Company of Georgia, Atlanta 2, Ga. United Securities Company, Greensboro, N. C. United Services Planning Association, Inc , Fort Worth 16, Tex. Vance Securities Corpoi-ation, Greensboro, N. C. Vaughan and Company, Wilmington, N. C. Virginia Securities Investment Corp., Newport News, Va. Wachovia Bank & Trust Company, Inc., Wins-ton- Salem, N. C. Waddell & Reed, Inc., Kansas City 5, Mo. Eli T. Watson, Hickory, N. C. J. C. Wheat & Co., Richmond 19, Va. White, Weld & Co, New York 5, N. Y. White, Weld & Co. Incorporated, New York 5, N. Y. T. Manly Whitener, Jr., Hickory, N. C. Winston Industries Corporation, Winston-Salem, N C. Dean Witter & Co., New York 5, N. Y. John W. Yeaman, Martinsville, Va. PAGE 6 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 H\ BACHE&CO. —THE STAMP OF QUALITY Bache & Co. and North Carolina are no strangers to each other. For many years an association has existed whereby investors have invested millions and mil-lions of dollars in the great industry of America through the branch offices of Bache and Co. The first offices in North Carolina were opened in the middle 1920's and at the present time are lo-cated in Charlotte, Greensboro and Ra-leigh. The accom-panying pictures are of the operation of Bache & Co. in Ra-leigh, In the early years the name of the firm was J. S. YOUNG Bache & Co. and was changed later on to Bache & Co. Bache & Co. is the oldest member firm in the investment business under the same management family for a period of over eighty years. We are the most diversified investment house in the United States, handling every phase of invest-ments for our customers. To do this we set up separate departments to handle more effectively the needs of our cus-tomers. We have one of the largest Research Departments; an over-the-counter department; a mutual fund de-partment; a metal department; a bond department, both municipal and corporate bonds; an institutional department; a syndicate department; a buying depart-ment; investment supervisory depart-ment; and the largest commodity depart-ment on the street. In the early years most brokerage con-cerns operated the branch offices with one or two people to staff them. Either a Morse wire was used to send and receive orders and information for our custom-ers or Western Union telegrams were sent. Practically all offices had the win-dows painted black so you could not see in. There seemed to be an air of secrecy connected with investments and conse-quently most people were not versed in the ways of the investing world. Some people actually thought that only the wealthy could invest. After World War II, a revolution in the investment busi-ness emerged and since that time great strides have been taken by the industry. Bache & Co. has pioneered a lot of changes in the investment business that are in practice today, and is still doing so. One of the first things to be done was to remove the black paint from the windows. We modernized the branch of-fices throughout the system. Before, when a prospective customer went by a branch office, it was dark and secretive, it be-came as open as a supermarket, well lighted and inviting to the eye. We en-larged our personnel in the branch of-fices and embarked upon a training pro-gram designed to enlist only the highest calibre of trainees. These trainees are now sent to the home office in New York for their training period and when they complete the courses they are ready to return to the branch offices fully regis-tered by the New York Stock Exchange. They are schooled in the highest ethical standards of conduct in our business. We also believed that unless the pub-lic was educated, our job was only half complete. We started public information programs of lectures, forums, and films to give more understanding of investing. We began a massive campaign of ad-vertising in newspapers, radio and var-ious news media to get across to the pub-lic our story. From a modest start in the middle 1940's, our budget last year for advertising alone was almost % of a million dollars. We installed high speed private wires for the purpose of sending orders directly to the exchange floor where the orders are executed. When the order is executed it is sent back over another circuit and it is possible to execute a market order in a matter of minutes. We also installed a high speed private news wire system to all branch offices solely for the pur-pose of transmitting information of im-portance to investors. This continuous service is available to all of our custom-ers and makes it possible for them to get the latest news on a company or situation so that they can utilize it to their advantage. The pictures you see here illustrate the fast, efficient service that Bache & Co. supplies to our cus-tomers. In our modern society, change is one thing that occurs every moment. Bache & Co. is aware of this and is constantly improving the service which we supply to our customers. Our country is grow-ing, Bache & Co. is growing and will con-tinue to do. This is why we have earned the title "THE STAMP OF QUALITY". Bache & Co.'s Raleigh Office, looking through the front door from South Salisbury Street. Left, shows communications department of Raleigh Office, Center, Raleigh Manager Robert J. Young chats with a customer. Right, fore-ground shows customers watching the day's trading on the board and in background salesmen handle telephone calls while three "casual" watchers may be seen standing in the rear. VINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 7 R. S. DICKSON RANKS IN TOP SEVENTY By Bill Hensley Director Public Relations One of the nation's leading investment >anking firms is a North Carolina com- >any which last year ranked in the top among the security dealers through-nit the United States. R. S. Dickson and Company, Inc., vhose principal office is in Charlotte, is he largest house on the east coast be-ween Washington, D. C, and Miami, Honda. Acting as underwriters, dealers and listributors for corporate and municipal securities, R. S. Dickson and Co. has branch offices in New York, Chicago, Atlanta, Richmond, Raleigh, Greensboro, Columbia, Green-ville, Jacksonville, St. Petersburg and Miami. In 1960 the Tar Heel firm had a busi-ness volume of over $175 million and the company had a net worth of nearly $5 million. It has been estimated that R. S. Dickson and Co. has distributed nearly two billion dollars worth of securities since the firm was founded in 1919. Un-told millions of that amount were for the expansion of North Carolina corpora-tions and municipalities. The history of R. S. Dickson and Co. is as intriguing as the stock market it-self. Rush Dickson, the founder and present Chairman of the Board, started in the securities business in modest fash-ion when he opened his first office in Gastonia in 1919. His first office con- 1. Rush S. Dickson, founder and chairman of the nvestment firm which bears his name. 2. William H. Palmer of R. S. Dickson's Municipal 3ond department confers on a bond issue with .ogan V. Pratt, vice president in charge of the >ond department. ). J. W. Berry Reid, branch manager of R. S. Dick-ton and Company's Greensboro office, dictates a teletype message to Judy Knight. I. R. Stuart Dickson, the firm's administrative vice president and son of the founder, goes over figures with one of the company's branch offices. :ach day he approves or disapproves deals which would commit the firm to millions of dollars in stock issues. 5. CHARLOTTE OFFICE SALESMEN — Registered representatives assigned to the firm's Charlotte office go over the day's activities with R. Corson Rose, assistant vice president in charge of the Charlotte sales office. They are Rufus Gwyn, Francis Price, Robert Barlowe, Rose and William E. Coxe. 6. RECEPTION AREA — Here is the company's re-ception area at the principal office in Charlotte. The receptionist is Helen Blanton. 7. The hub of any securities dealer is the Stock Trading Department. Here is a view of the R. S. Dickson trading desk. Left to right are Zeke Johnston, Walter Dulin, asst. vice president J. Lewis Bibb, vice president in charge Plato Pearson Jr. and Fern Lewis. 8. COMPANY PRESIDENT — J. Murrey Atkins, center, R. S. Dickson and Co. president, discusses a possible new issue with assistant vice president William B. Philips Jr., left, and vice president Hugh G. Ashcraft Jr. of the firm's Underwriting Department. 9. P. T. Withers Jr., vice president in charge of the Sales Department, dictates a teletype message to Mary Ball. The firm's 12 offices are connected by direct wire. PAGE 8 THE E. S. C. QUARTERLY WINTER-SPRING, 196 sisted of a typewriter, a telephone and a file cabinet. It also had a man whose reputation for being honest and depend-able was solid as a rock. Rush Dickson's desire to make good was strong and sin-cere. Actually, the venture into the invest-ment field was a gamble—but it was a gamble which has tui-ned out profitably for thousands of North Carolinians and the old North State itself. An aggressive 24-year-old cotton mill purchasing agent, he gave up a well-paying job to try his hand in a new field. "It was a gamble I had to take," he recalls. "I had made a little money buy-ing stocks and was fascinated by the way securities were bought and sold. I would never have been satisfied until I gave it a whirl." In the past 41 years probably all of the state's one hundred counties—as well as city, town and state govern-ments— have had bond issues underwrit-ten by the Charlotte investment com-pany. Last year the firm distributed over $100 million worth of general mar-ket and southern municipal bonds. About $25 million of that total was for issues in the two Carolinas. "Seeing money we provided go to work for better highways, schools and other improvements has been a real pleasure," Mr. Dickson says proudly. "We have always been interested in helping the home folks. If issues were too big for us to handle alone, we joined with other investment bankers to help insure success." Besides underwriting and distributing stock and bond issues, the Dickson com-pany has helped numerous corporations in other ways. The firm has played a key part in many successful mergers and acquisitions and has been retained as financial consultants by corporations tak-ing a close look at their capital struc-ture. R. S. Dickson and Co. has been a lead-er in the move to attract more industry to the Tar Heel state by offering capital and other assistance to interested con-cerns. The Perfecting Service Company of Charlotte, a recipient of Dickson aid, recently celebrated its tenth anniversary in North Carolina. After a strong beginning in 1919 when the company made $65,000, a depression in 1920 resulted in a loss of $125,000. "That depression taught us two things," Mr. Dickson says emphatically: "watch for changes in business cycles and di-versify holdings." In order to diversify the company holdings, Dickson bought his first munici-pal bond issue in 1920 and his personal investment philosophy, "safety through diversification", is a result of the 1920 decline. "It is the age-old story of not putting all the eggs in one basket", he advises. Dickson and Co. grew despite the '20 setback and opened its first branch office in Greenville, S. C, in 1922. A Golds-boro, N. C. branch followed in 1924 and the firm's New York office was opened in 1925. Heeding the "bearish" advice of an economic expert, Dickson liquidated his personal and company holdings in 1928 and escaped the "Big Crash" the follow-ing year. From 1928 to 1932, the firm operated as brokers, buying and selling strictly oh a commission basis. The company's reputation and stand-ing were enhanced considerably in 1932 when it bought defaulted municipal bonds. "We were one of the few invest-ment bankers in the nation who made firm bids on the line", Mr. Dickson ex-plains. "About sixty per cent of the North Carolina units were in default, since so much public money was tied up in closed banks." Doing business on a "service before profit" theory, R. S. Dickson and Co. ex-panded rapidly through the years and is continuing to set a rapid growth pace. The company employs approximately 125 persons in its 12 offices. Many large and well-known firms owe a portion of their success to R. S. Dick-son and Co. Among the group are these North Carolina industries: Duke Power Co., Champion Paper and Fibre Co., Carolina Power and Light Co., Textiles, Inc., Drexel Enterprises, Piedmont Nat-ural Gas Co., J. B. Ivey and Co., Rose's Five and Ten Cent Stores, Jefferson Standard Life Insurance Co., State Capi-tal Life Insurance Co., Home Finance Group, Inc., Auto Finance Co., Carolina Telephone Co., Southern Bell Telephone Co. and others. A giant among giants, R. S. Dickson and Co. has brought much prestige to the Tar Heel state because of its high standing in the investment field. Car Here is Your Council of State Governor Terry Sonford and the Council of State. This photo, mode in the Governor's Office in the Capitol shows, left to right: Charles Gold, Insurance Commissioner; L. Y. Ballentine, Commissioner of Agriculture; Charles Car-roll, Superintendent of Public Instruction; Thad Eure, Secretary of State; Frank Crane, Commissioner of Labor; Kenry L. Bridges, State Auditor; Wade Bruton, Attorney General; and Edwin Gill, State Treasurer. WINTER-SPRING, 1961 ~y\ THE E. S. C. QUARTERLY PAGE 9 INVESTMENT BANKING AT THE STATE'S CROSSROADS By Marshall H. Johnson McDaniel Lewis & Co., with its prin-cipal office in Greensboro, is North Caro-lina's second oldest independent invest-ment banking- firm. McDaniel Lewis was Its founder and is now Chairman of its )oard of directors. The Company almost j'rom its beginning-lias been located at che crossroads of ;he state in the Tefferson Standard Building. ! McDaniel Lewis, a. native of Kinston, k graduate of the University of North Carolina and an in-fantry officer in JOHNSON World War I, entered the municipal Dond field in 1922 and became a special-ist in the preparation and sale of bonds )f North Carolina cities and counties be-fore the Local Government Commission bame into being. He was the author of die first published story about North Carolina Municipal Bonds, prepared for Investors and for the instruction of sales-men, a publication which has had wide lational distribution. He has for many years been a director of the North Caro-ina Municipal Council and has twice erved as President of the Securities Dealers of the Carolinas. A public spir-ted citizen, he is currently the Chairman )f the Executive Board of the North Carolina Department of Archives and History, served the entire seven years is Chairman of the Greensboro Selective Service Board in World War II; was a bunder and for three years president of ;he Greensboro Historical Museum, and aas served as presiding officer of several North Carolina patriotic and historical societies. He is a member of the Alpha Tau Omega Fraternity, the Greensboro Country Club and the Baptist Church. For many years the company trade-mark has been an outline of the map of North Carolina. It believes, along with Governor O. Max Gardner, who, during the great depression, said "Our most cherished possessions are the faith, cred-it and character of North Carolina. Be-hind each bond of this state stands the character, honesty, integrity and re-sources of a people who will make many sacrifice to defend and protect the good name of North Carolina." Since 1934 the company has held membership in the Investment Bankers Association of America. In the early thirties the company start-ed trading Jefferson Standard Life In-surance Company shares and local bank stocks, both of which it has specialized in ever since. It then branched out into nationally and locally traded industrial issues and mutual funds. It was quite natural, with its early start, central lo-cation and interest in the full develop-ment of the economic and industrial po-tentials of North Carolina, that the company should also become an impor-tant factor in the underwriting and dis-tribution of local and national corporate securities in diversified industries, as well as municipal bonds. Beginning in the 1930's the company participated as an underwriter or distributor in several notable North Carolina issues, revenue bonds of the State Laboratory of Hy-giene, revenue issues for the construc-tion of the electric plant at Chapel Hill and several dormitories at the three 'rincipal officers of McDaniel Lewis Co., left to ight: McDaniel Lewis, Chairman of the Board of Jirectors; Marshall H. Johnson, President; Edward I. Lowry and E. Kemp Reece, Vice Presidents. 1. View of Central Control Room showing secre-taries, Vice-President Edward R. Lowry and Presi-dent Marshall H. Johnson. 2. Corner of Trading Room showing teletypewriters which connect with dealers all over the nation. including at left direct wire to floor of Midwest Stock Exchange. Left to Right: Assistant Steve Wilkerson, Trader E. Kemp Reece, Vice-President; and Secretary Ruth Tickle. PAGE 10 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 units of the University of North Caro-lina, a revenue issue for the North Caro-lina Forestry Foundation, and State of North Carolina Highway and School Building Bonds. Also such corporate is-sues as the original sale to the public of shares of Burlington Mills, Cone Mills, Blue Bell, Inc., Auto Finance, Chadbourn- Gotham, Alba Hosiery, Drexel Furniture and Colonial Stores, to mention a few. The company has also acted as partici-pating or managing underwriter or dis-tributor for Carolina Telephone and Telegraph, Carolina Casualty Insurance, Piedmont Natural Gas, Roberts Compa-ny, Security Life & Trust, Carolina Pow-er and Light, Duke Power, First South-ern Company, Wise Homes, Southern Plastics Engineering, Black Panther, Cerlist Diesel, GMC Finance Group, Top- O-The-World Farms and Equipment, Crown Aluminum, Carolina Natural Gas, Carolina Pipeline, North Carolina Natur-al Gas, Jackson's Minit Markets, and many others. The firm was instrumental in the for-mation of the first publicly held Small Business Investment Company in North Carolina, Pinnacle Investment Corpora-tion (a Small Business Investment Corp.) Also, the Company was associated with others in the underwriting and sale of Public Housing Authority bonds. Many years of association, experience and contacts with national leaders in the underwriting field have resulted in the company attaining underwriting posi-tions in many of the nation's best known companies, some of which are American Telephone & Telegraph, Tennessee Gas Transmission, Transcontinental Gas Pipeline, Texas Eastern Transmission, Ryder System, and First Charter Finan-cial Corp. In addition to its underwriting activi-ties the company maintains active trad-ing not only in the shares of companies it underwrites but in such local and na-tional companies as Jefferson Standard Life, North Cai-olina Railroad, State Capital Life, Pyramid Life, Occidental Life, Peninsular Life, North Carolina National Bank, Wachovia Bank & Trust, Bank of Greensboro, First Union Nation-al Bank, First Citizens Bank & Trust, Textiles, Inc., American-Marietta, Frank-lin Life, Nationwide Corporation, Richardson-Merrill Co., Bevis Shell Homes, Holiday Inns, Central Charge Service, Automatic Canteen, Automatic Retailers, Lucky Stores, Midland Capital Corporation, Investors Diversified Serv-ices, J. P. Stevens, Rose's 5-10-25<' Stores, and many others, both listed and over-the- counter. In the private placement field the most notable accomplishment was the compa-ny's sale of City Industrial Bank to Wachovia Bank & Trust Co., enabling the largest bank in Southeastern U. S. A. to achieve perhaps its greatest recent expansion in the City of Greensboro. As sponsoring dealer the company has helped to qualify in North Carolina some of the best known mutual funds, and for many years has been distributor for Wellington, Putnam, Massachusetts In-vestors, Group Securities, National Se-curities, Commonwealth, Fidelity, Chem-ical, Incorporated Investors, Colonial Energy, Dreyfus and others. The latest important development re-lating to the company was its installa-tion in early 1961 of the first direct wire from Greensboro ever opened to the floor of any exchange. The wire goes without relay to the company's floor broker (trader) at the Midwest Stock Exchange in Chicago, from which point the com-pany is able to execute transactions in stocks not only traded in on the Midwest but also in New York and other cities, including those on the economically fast growing Pacific Coast. This fast service complements the already wide service to buyers and sellers which the company has for many years conducted in the largest market in the world—the Over-the- Counter securities market. This same direct wire connects the company with certain other securities dealers in Georgia, South Carolina and North Car-olina. Membership is maintained in Mid-west Stock Exchange and Midwest Stock Clearing Corporation. A. C. Allyn & Co., Chicago, with branch offices in 31 cities, is the company's correspondent. Marshall H. Johnson, a native of Raleigh, is President of the Company. He served during World War II in the Navy in the Pacific, and is an alumnus of the University of North Carolina. Working as a reporter for Dun & Brad-street in Raleigh and Durham, he joined the company as Eastern Sales Repre-sentative in November 1947. He attended the LB.A. Investment Banking Seminar at Wharton Graduate School of Finance for three sessions and received its certi-ficate. He became a Partner of the firm in 1951 and Managing Partner in 1956. When the company was incorporated September 1, 1959, he was elected Presi-dent. He served a term as Secretary of the Securities Dealers of the Carolinas, and was Chairman of the Southeastern Group State Legislation Committee of the Investment Bankers Association of America, when the North Carolina Se-curities Law was modernized. For two years he has been a member of the very important Business Conduct Committee of District 10, (Maryland, District of Columbia, Virginia and North Carolina) of the National Association of Securities Dealers, Clubs: Kiwanis; Greensboro Country Club; Director of Piedmont Sales Executives; Member of Alpha Tau Omega Fraternity, The Odd Fellows, and the Baptist Church. He has served as a director of First Southern Co., and is now a director of CMC Finance Group, Top-O-The-World Farms and Equipment Co., and Pinnacle Investment Corpora-tion (a Small Business Investment Corp.) Edward R. Lowry, vice-president, is in charge of the municipal and corporate bond, and institutional departments. A graduate of the University of Tennessee, he also studied for two years at the Wharton Graduate School of Finance, University of Pennsylvania. Before com-ing from Tennessee to North Carolina to enter the investment banking field he was purchasing agent for American Bemberg Corp. and North American Ray-on Corp., Secretary and director of Har ris Manufacturing Co. and director of Superior Hardwood Flooring Co. He joined McDaniel Lewis & Co. in Novem-ber 1956 and became a General Partner in May 1957. On September 1, 1959 he was elected Vice President and director. He has had experience in corporate ac-counting and taxes on a local and state wide basis. Member Starmount Forest Country Club. Elder in the Presbyterian Church. E. Kemp Reece, vice president, runs the trading department, assisted by Stephen L. Wilkerson. Mr. Reece is a native Tar Heel and graduate of Wake Forest College. Before joining the com pany in August 1956 he was sales repre sentative in Central Carolina for George A. Breon Co., Manufacturing Druggist He has been president of the Greens-boro W. F. C. Deacon Club, and has been active as a member of the Junior Chamber of Commerce, the Kiwanis Club, Greensboro Country Club, is a Ma son, and member of the Board of Ste-wards of the Methodist Church. Besides the principal officers named above, the following are associated with the firm: in Greensboro, Cashier Jarvis J Arthur, Jr.; Assistant trader Stephen L Wilkerson, Vice President Kenneth C Wible and C. Franklin Miller, registered representatives Willard C. Robbins and Ernest Kahn. Registered representatives in other cities : Vice President R. Thorn-ton Hood, Kinston; Vice President Robert E. Lee, Jr., Greenville; Vice President Richard M. H. Stock, Morganton; Ro-bert J. Clemens, Durham; John H. Mc-j Kinnon, Red Springs; Charles C. Lucas j Charlotte; A. L. Barham, Selma; and T. J. Alford, Roanoke Raipds. The many activities of the company are important parts in the over-all ob-jective and purpose of the company whicr is to provide North Carolinians and others with the means for planning and developing of personal and family estates, company profit sharing and pen sion plans, corporation and institutional investments, opportunity for capital ap-preciation and increase in investment in-come; in short, a complete service foi those who have funds, or the means tc accumulate funds, for investment. Th< company believes that "Invest in Ameri-ca" is a good rule to follow for achieve-ment in the American capital system Operating in "The Industry of Integrity' the firm naturally bases its success oi public confidence. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 11 J. LEE PEELER AND COMPANY OPENED IN 1946 J. Lee Peeler & Company, Inc. Durham, North Carolina With over 20 years experience in the financial world behind him at that time, J. Lee Peeler opened the door of the firm that bears his name in April of 1946. Having been associated with The First National Bank of Miami, The First National City Bank of New York, the Wall Street firm of Colgate, Hoyt and Company, and two local firms, Mr. Peel-er decided to strike out for himself. Today—1961—Lee Peeler is regarded by the municipal bond fraternity as one of the most highly qualified and compe-tent authorities on municipal finance in the "Old North State." He is presently Chairman of the North Carolina Securi-ties Advisory Committee, past President of The Securities Dealers of the Caro-linas, and past President of The Raleigh- Durham Bond Club. Since 1946, the Firm has taken part in hundreds of underwritings with parti-cipations totalling many millions of dol-lars. It is probable that there as no community in the state with which J. Lee Peeler & Co., Inc. has not become asso-ciated to the extent of buying and selling ! its debt obligations. It would be fair to say that whenever competitive bids are sought on any proposed bond issue in North Carolina, J. Lee Peeler & Co., Inc. will be among those expressing their views. . Associated with Mr. Peeler in the Mu-nicipal Department of the Company is his son, Jonathan, a vice-president of the firm, who works jointly in the opera-tion of the department in addition to his duties as manager of the Charlotte branch office. Jon Peeler is also specializ-ing in municipal bonds of South Caro-lina. He has been actively employed with the Company since 1951. In recent months, J. Lee Peeler & Co., Inc. has embarked upon an expansion program with the long range view of full diversification into all forms of corp-orate securities and mutual funds in addition to the now thriving municipal bond department. The firm has always dealt in equities and mutual funds, but these areas have been largely incidental to the municipal bonds. In November of 1959, Clyde L. Green joined the Peeler organization with the purpose of eventually heading up the Corporate Department. His responsibili-ties include research, trading, and corp-orate underwriting. Among the better market performers recommended from 1960 to date by J. Lee Peeler & Co. might be included: Aeronautical Elec-tronics (Aerotron) Cowles Chemical Co., Crumpton Builders, Inc., First Union National Bank, Heinicke Instrument Co., and Spur Oil Co. In April 1960, the well-known local firm of R. S. Hays & Co. merged with J. Lee Peeler & Co. "Bob" Hays, as he is known to his friends and colleagues throughout the state, then became a vice-president of J. Lee Peeler & Co. Mr. Hays has the Durham office as his home base. In July 1960, J. Lee Peeler & Co. open-ed its Raleigh office when Lloyd E. Canady joined the Company as a vice-president. Mr. Canady was formerly proprietor of his own securities firm in Raleigh and later a member of the Howard C. Traywick organization of At-lanta. George L. Lyon of Durham, a vice-president, has been in the securities busi-ness for a number of years—having been previously associated with First Securi-ties Corporation of Durham and H. A. Riecke & Co. in their Daytona Beach office. Responsible for cashiering operations of J. Lee Peeler & Co. is Mrs. Billie A. Bisplinghoff, Assistant Treasurer. Mrs. Bisplinghoff has been associated with the Peeler Company since 1955. Also connected with the Company are Mrs. C. L. Yearwood, Jr. and Mrs. W. D. Harris in the Durham office and Mr. Harvey C. Elliott in Washington, N. C. In the course of day-to-day operations, J. Lee Peeler & Co. is able to receive and execute orders for practically all types of securities, be they listed on ma-jor domestic exchanges or traded over-the- counter. The Over-the-Counter Market, how-ever, is the primary focal point. It is here that most of the dollar volume is handled because it is here that one may find traded most of the securities avail-able to investors. U. S. Government ob-ligations, municipal bonds, bank and in-surance stocks, as well as some of the bluest of the blue chips among invest-ment quality common stocks—all of the foregoing are traded over-the-counter and primarily only over-the-counter. It is for this reason then—the almost end-less variety of securities available as well as the wide range of quality inher-ent in such a large selection—that Peel-er & Co. prefers to emphasize the Over-the- Counter Market. To customers, a number of services are available. First (and perhaps most important) is conscientious recommenda-tion as to "buy," "sell," "hold," etc. with reference to specific securities. Second is prompt execution of orders. Finally is the Firm's readiness to analyze and discuss with every customer his holdings, his needs, and his objectives. The Firm's policy is to emphasize SERVICE—to all who wish it—regardless of whether their account is large or small. The securities field is a large one and it is expanding at an accelerating pace. In the past, J. Lee Peeler & Co., Inc. has always been highly regarded but little known outside of the municipal bond professionals. In the future the CHAIRMAN'S COMMENTS —Continued from page 2 — Requests for copies of this edition of the QUARTERLY exceed the total num-ber usually printed. While we would like to furnish everyone with as many QUAR-TERLIES as they request, our limited budget precludes this. However, our printers, The State College Print Shop, Raleigh, will gladly furnish reprints of four-page articles at $18 per thousand. These will have the same page-size as the QUARTERLY and will carry the line "As Reprinted from the E. S. C. Quarterly". These orders should be sent directly to the printer. BACHE AND COMPANY IS INTERNATIONAL IN ITS SCOPE (Thin is the story of an international financial firm.) High-wheeled bicycles were all the rage in 1879; New York's current trans-portation problem concerned safety on the steam-powered El; in commercial use for only a year, the telephone was still a novelty as broker's equipment. Then as now, Wall Street was the na-tion's financial nerve center, but the New York Stock Exchange was regarded by the majority with awe and a tinge of disgust. Stock trading was a highly specialized activity for professionals only, and the first million-share day was still some years in the future. Against this background the brokerage firm of Leopold Cahn & Co., the forerun-ner of present-day Bache & Co., was founded on May 15, 1879. The following year, 19-year-old Jules Semon Bache, Leopold Cahn's nephew, started work as cashier. Son of a Bavarian glass mer-chant but himself a native New Yorker, he subsequently served as treasurer, Ex-change partner, and active director and in 1892 the firm was reorganized under his name as J. S. Bache & Co. In 1914, Harold L. Bache, like Jules, went to work for his uncle and except for service in the 308th Infantry during World War I, has ever since devoted his life to the work of the firm. Once again family history repeated itself and he in turn took over the reins as senior partner when the firm re-organized as Bache & Co. This change occurred in 1945, the year following his uncle's death on March 24, 1944 at the age of 82. Today, Bache & Co. is the largest brokerage firm under one management —Continued on page 22 Company plans to ba equally well known and respected among investors generally and it is to that end that the scope of operations has been widened. PAGE 12 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 INVESTMENTS IN THE FUTURE - STORY OF FUND INVESTMENTS, INC. By Margaret Barnard Brinson Enter into a world of dreams—dreams that can be had only by planning today. Ours is a business of making tomor-row's dreams come true through careful and factual planning today. Fund Investments, Inc., of Charlotte, is an investment firm specializing in mutual funds. The primary objective of the Company is serv-ice to its clients. The Company serves everyone—from the lower economic class to the millionaire — from the college graduate to the per- BRINSON son who could obtain only a few years of schooling—from the manual laborer to the company president. The Company even serves small children whose parents are planning now for college educations for these children. In essence, the Com-pany serves everyone. Fund Investments, Inc., was incorp-orated in the state of North Carolina in April, 1959, as Fund Investments, Inc., of the Carolinas (serving both North Carolina and South Carolina). The name was shortened in June, I960, to allow for expansion to other states. As a begin-ning of this expansion, the management of Fund Investments, Inc., undertook the management of Fund Investments Inc., of Florida (formerly Washington Plan-ning Corporation of Florida), in January, 1961. The registered representatives of Fund Investments, Inc., come from any num-ber of backgrounds. At present there are approximately 105 representatives work-ing in North Carolina and South Caro-lina. Their backgrounds include teachers, lawyers, engineers, insurance agents, ac-countants, retailers, real estate develop-ers, radio salesmen, writers, military personnel (both active and retired), furriers, merchants, truck drivers, me-chanics, printers, housewives, sales rep-resentatives, etc. From such varied backgrounds they come to serve others of similar backgrounds. Fund Invest-ments, Inc. constantly is searching for people who believe in mutual funds, who want to serve their neighbors, and who can sell a dignified and quality item, a person whom others will respect and whose advise they will follow. Such peo- Author of this article for publication in the E.S.C. QUARTERLY is Margaret Barnard Brinson (Mrs. M. C. Brinson. Jr.). Mrs. Brinson is a graduate of the University of North Carolina with a Master of Arts degree in Communications. She was Promotion Writer and Public Service Director of WJZ-TV (Baltimore, Md.), after grad-uation. Upon returning to North Carolina in 1959, she accepted the position as the first Promotion Manager of the Charlottetown Mall. She resigned in October, 1960, to accept a position with Fund Investments, Inc., with which she had been reg-istered as a part-time representative since June 1960. pie Fund Investments, Inc., will train as registered representatives and invest-ment consultants under the supervision of Mr. Clay L. Morgan, Director of Sales. Today more than 2,500,000 people in the United States own about $18,000,000,- 000 in mutual funds. (Kalb, Voorhis & Co., "Odd Lots—from the News," Jan-uary, 1961.) Mutual funds are the average man's way of letting his money have a change to grow. By combining his money with that of thousands of other investors, large and small he can afford the serv-ices of professional management to handle, invest, and supervise his money constantly—24 hours a day, 365 days a year. After all, investing is a full-time job which is best handled by profession-als, men who have devoted their lives to the world of finance. You wouldn't try to perform surgery yourself, or argue your own law case, or even wire your house for electricity, unless you were trained to do so. Therefore, why try to invest your money—your future—unless you have the training, the knowledge, that comes from working constantly in a financial atmosphere whei'e you will know exactly what is going on, what to do with your own money to get the best advantages? As we said, investing is a full-time job which is best handled by professionals. This is how a mutual fund works. You invest your money, which is combined with that of thousands of other investors, and hire professional managers who will study financial trends and watch your investment constantly. Your money is invested in many stocks in order to spread the advantages and the risks. Four times a year you receive dividends from your investment (either in cash or traditional shares in the mutual fund), also, if a profit is made through sale of securities by the investing company, you 1. Monday morning meeting of full-time represen-tatives. From left to right: Miss Eleanor Corriher, Mr. William G. Potter, Mr. Booth W. Gillespie (of Kings Mountain, N. C), Mr. Arthur D. Weese (Manager of Universal Services), Mr. H. Stanley MacClary, Mr. George B. Petty, Jr., (of Rock Hill, S. C), and Mr. Clay L. Morgan (Director of Sales). Others are from Charlotte, N ,C. 1. Representatives from North and South Carolina hold a "Eatin' Meetin' " at the Woman's Club in Charlotte in November, 1960. 3. New Board of Directors was elected at opening of Jacksonville, N. C. branch office. From left to right: Lt. Gen. J. P. Riseley, USMC (Ret.), RAdm. A. I. Malstrom, USN (Ret.), Mr. Thomas J. Flaherty, Jr. (President of Universal Programs, Inc., of New York, not a Board member), Sister Perfection, Miss Marjorie G. Hugo, Maj. Gen. Randall M. Victory, USMC (Ret.), Mr. F. Roger Page, Jr., and Mr. S. Holmes Plexico. Not pictured is Board Member Mr. T. Stuart Coffey, Jr. 4. Fund Investments, Inc., had a booth at the Mecklenburg County Fair in Charlotte in October, 1960. The booth was awarded a ribbon for being the "Most Creative" (one of two ribbons awarded to commercial booths). Representatives manning the booth are (left to right) Mr. John Edd Queen, of Shelby, and Miss Eleanor Corriher and Mr. Ben-ny Templeton, both of Charlotte. Continuous films about mutual funds were shown in the theater area on the left. An interview room was at the right. receive your share (either in cash or additional shares in the mutual fund). You can liquidate your holdings when- —See Investments, page 14 — Host of the Jacksonville, N. C, branch office was Col. P. J. Speckman, USMC (Ret.), Director of Military Sales and Branch Manager of the Jack-sonville office. He is showing the new offices to Mr. Thomas J. Flaherty, Jr., (right) President of Universal Programs, Inc., of New York, special guest at the Open House. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 13 Joe K. Matheson — Investment Securities Joe K. Matheson Investment Securities When the Japanese dropped the bombs on our Naval Base at Pearl Harbor the shock waves emanating from the islands finally caught up with a Duke Power appliance salesman of the Hickory, N. C. Branch. A year later instead of electric appliances, this fellow found himself in the mutual fund business rep-resenting a Charlotte, N. C. firm (LOUIS G. ROGERS & COMPANY) who had for some years previously been the pioneer of this "new concept" in the investment banking field. JOE K. MATHESON At that time—1942—there were in N. C. only three or four registered se-curities dealers specializing in the sale of mutual funds. All of these were small operations—affectionately known in the trade as "one man shops". The larger dealers and houses for all practical pur-poses did not engage in the promulgation in the distribution of this "Boston type" investment—the 100 stocks in one idea. It is generally accepted that the mu-tual fund industry was born in Boston in 1923. However the basic idea has been used in Europe for several hundred years. In 1942 when I entered the busi-ness, there were possibly twenty five fairly well known mutual funds. The entire assets of the whole industry was possibly between two and three billion dollars. Today there are over 150 mutual funds whose combined assets are over 15 billion and having more than 5 mil-lion shareholders. No wonder the mutual fund industry is called the financial mar-vel of this age. American mutual funds are owned by thousands of the people of foreign countries. We Mutual Fund Specialists are a "race set apart" in the field of invest-ment. Set apart in that we believe that in this fast moving kaleidoscopic eco-nomic world of ours that investors, large or small, need professional counsel and management. We hold that the busy executive and professional man in most instances is far too engrossed in his own affairs to be able to devote the time and "burn the midnight oil" necessary for consistent successful investing. Please note, we do not refer to speculation — just investing. The writer represented the above mentioned Louis G. Rogers & Company who has been called in the industry as "The John the Baptist of the mutual fund industry in the South" until he (the writer) answered the call of duty and country—via the local draft board in early 1943 and after considerable schooling in Boston and Jacksonville fin-ally ended up in the beautiful Hawaiian Islands where he served safely ashore and without distinction until the Navy discharged him November 11, 1945. "I formed my own dealership in 1951 and hung out my shingle—Mutual Funds". I am listed as a broker/dealer specializing in mutual funds and am a member of the National Association of Securities Dealers. At that time I was the only registered broker /dealer be-tween Charlotte and Asheville. This geo-graphic factor required that in addition to my first love, mutual funds, that it was propitious that I offer an additional service in individual securities for the convenience of the residents of my im-mediate area. This I still do. It is not my intention to use this ar-ticle and privilege as a forum for the mutual fund industry. Instead I hope to possibly clarify the picture for those who may not be too well acquainted with this approach by a few observations from the standpoint of the dealer. By the use of the three cardinal principles of sound investing—professional selection wide diversification, and constant man-agement, the mutual funds offer a dealer a tool he can trust and work with. The weight of responsibility that is inherent in the business of helping others invest hard earned money is felt by everyone who works for the best interest of his client. That burden is lightened for the dealer who used the funds as vehicles as he is always aware that his client's holdings are under constant professional management. Money is a most cherished —See Investment Securities, page 14 — BETTY D. CANUPP Carolina Securities Corp. Raleigh, North Carolina One of the pioneer investment bank-ing firms of North Carolina is Carolina Securities Corporation. Through its pre-decessor companies this firm has con-tinued in uninterrupted operation since 1932, and is one of the oldest investment firms in North Carolina. The Company's chief business activity is the buying and selling of corporate securities and bonds for individuals and institutions. The Company maintains an experienced re-search department which makes finan-cial studies of indus-t^"'~~ f* I tries and individual | companies, and is- !aP>|M sues reports of their -^fc j| findings from time ANDERSON to time. Carolina Se-curities differs from the usual broker-age type securities firm in that it special-izes more in supervisory service and long-term investment programs, rather than day-to-day trading. Another important phase of Carolina Securities' business is the supplying of capital for the expansion of new or exist-ing industries. Through this underwrit-ing activity Carolina Securities has been instrumental in the more rapid develop-ment of some of Carolina's best known companies. Among them are: Piedmont Aviation, Inc., Maola Milk and Ice Cream Co., Superior Cable Corp., Carolina Pow-er and Light Company, Coble Dairy Products, General Telephone Company of the Southeast, Colonial Stores, Inc., Tide-water Natural Gas Company, Drexel Furniture Company, and several others. President of Carolina Securities is Glenn E. Anderson, who has been with the firm since 1934. Recently he com-pleted a year of service as Chairman of the Board of Governors of the National Association of Securities Dealers, the largest organization of brokers and se-curities dealers in the United States. He was also one of the founders and the first president of the Securities Dealers of the Carolinas. Chairman of the Board of Directors is Fred W. Reebals, Raleigh, who has been connected with the business since 1933. Other officers are C. Strad-ley Kipp, Vice President and manager of the Charlotte office; G. Hearst Rosser, Durham, Vice President; S. J. Steele, Raleigh, Vice President; J. W. None-man, Raleigh, and G. Calhoun Pruitt, Rockingham, Assistant Vice Presidents; J. P. Abernethy, Raleigh, Secretary and Treasurer; and C. F. Crutchfield, Raleigh, Assistant Secretary. Headquarters offices are in the Insur-ance Building, Raleigh, and full-time of- —See Carolina Securities, page 18 — PAGE 14 THE E. S. C. QUARTERLY WINTER-SPRING, 196' N. C.'s Manpower Resources and Training Needs By James C. French Bureau of Research and Statistics Staff Seven Area Labor Market Analysts are now visiting firms throughout North Carolina seeking information relative to current and future manpower require-ments. The need for this information stems from the growing shortage of well-trained technicians and skilled-craftsmen for industry. Among other factors having a great effect on the current shortage of techni-cal workers in our State is the rapid conversion from a basically agricultur-al economy to an in-dustrial one. The phenomenal expan-sion of industry throughout the State, and the count- French less new applications of scientific devel-opment have also increased the demand for technically trained workers. There is a fast growing recognition of the im-portant position played by the technician and the highly-skilled worker on the manpower teams of industry. In North Carolina it is believed that the job of training workers is not alto-gether industry's responsibility. The state is aware of an ever-increasing chal-lenge to keep its manpower abreast of the demand, and to anticipate local needs with well-planned and well-organized curriculums in the field of technical-vo-cational education. This challenge is be-ing met to the limit of available re-sources and abilities. The 18 Industrial Education Centers now operating or be-ing established throughout the State are already providing many hundreds of workers with critically needed skills. In the very near future, it has been said the number of people being trained by the Industrial Education Centers of North Carolina will exceed the combined en-rollment of all State supported colleges and universities. There is an urgent need, however, for a set of guidelines for use in planning and expanding a technical-vocational ed-ucation program which is consistent with manpower requirements of employ-ers among widely diversified industries. The Employment Security Commission of North Carolina has joined forces with the State Board of Education and the United States Department of Labor in an effort to assemble necessary occupation-al information for developing the needed guidelines. One of the first phases of the overall study as planned is a state-wide survey of current and future tech-nical manpower requirements and train-ing needs. Thus far, we have experienced excel-lent cooperation from the firms which have been contacted. Most of these, we have found, are concerned about techni-cal manpower problems and they are us-ually more than willing to make any contribution they can toward further ad-vancing vocational-technical education in North Carolina. Industry stands to gain an added source of much-needed technicians and highly skilled workers; likewise, industrial-vocational training can make a valuable contribution to the well-being of those individuals who seek to increase their own capabilities and earning potential. The information being developed in this survey is intended to provide a sound basis for further development of the industrial productivity of the North Carolina workforce. It is believed that this program affords industry an oppor-tunity to contribute to North Carolina's continued economic growth. INVESTMENT SECURITIES —Continued from page 13 — possession. It must be dearer than life itself—because we give our lives for it. It deserves the best treatment available. Associated with us are: Mrs. Betty D. Canupp, Cashier-Bookkeeper, Mr. W. H. "Bill" Duhling of Hickory, Mr. Melvin P. Hawkins of Asheville and Miss Mary Forest McAdams of Charlotte all reg-istered representatives. Miss McAdams represents the "new look" in the invest-ment banking business— the invasion of the women into what was once the do-main of males only. Joe K. Matheson was born in Iredell County and attended Troutman High School, entered Trinity College of Dur-ham in 1923, and was graduated from Duke University in 1928 with AB in Business Administration. He lives in Hickory and he and Mrs. Matheson have four children, three daughters and one son. He has four grandchildren—a pair of each kind. My prized possessions of this world are my three beautiful daughters, my fine young son, my four grandchildren, and my "roving can" wastebasket. There is a story about that wastebasket. Up here in this textile area it has long been considered a mark of distinction to have a "roving can" as a wastebasket as these cans are cylindrical fibre yarn containers about 18 inches in diameter and stand-ing a good four feet tall. In the old tra-ditional "cotton mill" of yesteryear — only the "boss" or the head man was allowed to take this yarn container for his use in "the front office". Its use as a waste basket was an unmistakable sym-bol of one who had arrived. We haven't arrived but we have the "roving can"! I hold memberships in the Catawba Country Club where I now serve as a director, The First Methodist Church, the Bogey Golfers Club and the Repub-lican Party. INVESTMENTS IN FUTURE —Continued from page 12 ever necessary without having to look for a buyer; the Mutual Fund Company will buy back the shares at the net asset value. The money is yours to use when-ever you need it without having to pay a penalty or interest for the privilege of borrowing. The basic ingredients to investing through mutual funds are time and money. If you are a young man with a small income but you have quite a few years before you will need money for education of your children or retirement, you have time on your side. It is pos-sible to reach the same goal as an older man with more money but with less time. Remember, you can build your fi-nancial estate through Mutual Funds with TIME and MONEY. One of the many unique and far reach-ing aspects of Fund Investments, Inc., was the establishment of Universal Serv-ices in April, 1959, as a separate com-pany to work in consultation with Fund Investments, Inc. This company, under the direction of manager Arthur D. Weese, an expert in the field of profit sharing, has helped to establish profit sharing and retirement plans in many top businesses in North Carolina. Some of the firms which have installed profit sharing plans through consultations with Universal Services are the Western Auto Associate Store in Jacksonville, Rowan Printing Company in Salisbury, Powers and Anderson Dental Company in Char-lotte and Dorsey's, Inc., in Charlotte, to name only a few. Through profit sharing plans these employers are creating fu-ture financial estates for faithful em-ployees who work today to build large and strong companies. In November, 1960, Fund Invest-ments, Inc., opened its first branch of-fice. This office is located in the New River Shopping Center in Jacksonville, N. C. Opened primarily to serve the Camp Lejeune area, this branch office is managed by Colonel P. J. Speckman, USMC (Ret.), who also is Director of Military Sales for Fund Investments, Inc. The officers and Board of Directors of Fund Investments, Inc., are composed of a qualified group of business and military leaders. The President of the Company is Sister Perfection, an out-standing financier with a wide back-ground in banking and investments. First Vice-President is Mr. S. Holmes Plexico, of Salisbury, who is President of the Home Savings and Loan Associa-tion and President of the Rowan Print-ing Company, Salisbury. Second Vice- President is Major General Randall M. Victory USMC (Ret.), of Jacksonville. Secretary-Treasurer is Marjorie G. Hu-go, who before becoming associated with Fund Investments, Inc., was a dairy ac-counting consultant, a teacher, a mathe-matician, and a Major in the WACS. —See Investment, page 21 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 15 SAVINGS AND LOAN ASSOCIATIONS IN NORTH CAROLINA Aberdeen Savings & Loan Assn., Aber-deen Hertford County Savings & Loan Assn., Ahoskie Albemarle Savings & Loan, Albemarle Home Savings & Loan, Albemarle Peoples Savings & Loan, Asheboro Randolph Savings & Loan, Asheboro Belmont Savings & Loan, Belmont Benson Savings & Loan, Benson Pitt Savings & Loan, Bethel Biscoe Savings & Loan, Biscoe Black Mountain Savings & Loan, Black Mountain Bladen Citizens Savings & Loan, Blad-enboro Watagua Savings & Loan, Boone Candor Savings & Loan, Candor Canton Savings & Loan, Canton Citizens Savings & Loan, Carthage Orange County Savings & Loan, Chap-el Hill Mutual Savings & Loan, Charlotte Peoples Savings & Loan, Charlotte Cherryville Savings & Loan, Cherry-ville Rowan County Savings & Loan, China Grove Clinton Savings & Loan, Clinton Clyde Savings & Loan, Clyde Cabarrus County Bldg. & Loan Assn., Concord Citizens Savings & Loan, Concord Concord Perpetual Bldg. & Loan, Con-cord Cornelius Savings & Loan, Cornelius Home Savings & Loan, Dunn Home Savings & Loan, Durham Mutual Savings & Loan, Durham Farmville Savings & Loan, Farmville Cross Creek Savings & Loan, Fayette-ville Fayetteville Savings & Loan, Fayette-ville . Macon County Savings & Loan, b rank-lin Franklinton Savings & Loan, Frank-linton Gastonia Mutual Savings & Loan, Gas-tonia Citizens Savings & Loan, Goldsboro Goldsboro Savings & Loan, Goldsboro Graham Savings & Loan, Graham Granite Savings & Loan, Granite Falls Gate City Savings & Loan, Greensboro Home Savings & Loan, Greenville Hamlet Savings & Loan, Hamlet Henderson Savings & Loan, Hender-son Home Savings & Loan, Henderson Hertford Savings & Loan, Hertford First Savings & Loan, Hickory Atlantic Savings & Loan, High Point Perpetual Savings & Loan, High Point Piedmont Savings & Loan, High Point Hillsboro Savings & Loan, Hillsboro Kenly Savings & Loan, Kenly Home Savings & Loan, Kings Moun-tain Kings Mountain Savings & Loan, Kings Mountain Mutual Savings & Loan, Kinston Home Savings & Loan, Landis Scotland County Savings & Loan, Laurinburg Home Savings & Loan, Leaksville Citizens Savings & Loan, Lenoir Mutual Savings & Loan, Lenoir Industrial Savings & Loan, Lexington Mutual Savings & Loan, Lexington Perpetual Savings & Loan, Lexington Liberty Savings & Loan, Liberty Lincolnton Savings & Loan, Lincoln-ton Robeson Savings & Loan, Lumberton Madison Savings & Loan, Madison McDowell Savings & Loan, Marion First Savings & Loan, Mebane Mocksville Savings & Loan, Mocks-ville Marion Savings & Loan, Marion Peoples Savings & Loan, Monroe Citizens Savings & Loan, Mooresville Burke County Savings & Loan, Mor-ganton Mount Airy Savings & Loan, Mount Airy Peoples Savings & Loan, Mount Gilead Mutual Bldg. & Savings, Mount Holly Mount Olive Savings & Loan, Mount Olive New Bern Savings & Loan, New Bern Citizens Savings & Loan, Newton North Wilkesboro Savings & Loan, North Wilkesboro Oxford Savings & Loan, Oxford Pinehurst Savings & Loan, Pinehurst Plymouth Savings & Loan, Plymouth Raeford Savings & Loan, Raeford Raleigh Savings & Loan, Raleigh Ramseur Savings & Loan, Ramseur Randleman Savings & Loan, Randle-man Red Springs Savings & Loan, Red Springs Mutual Savings & Loan, Reidsville Roanoke Rapids Savings & Loan, Roa-noke Rapids Robbins Savings & Loan, Robbins Peoples Savings & Loan, Robersonville Richmond County Savings & Loan, Rockingham Peoples Cooperative Savings & Loan, Rockwell Citizens Savings & Loan, Rocky Mount Homes Savings & Loan, Rocky Mount Rowland Savings & Loan, Rowland Roxboro Savings & Loan, Roxboro Citizens Savings & Loan, Salisbury Home Savings & Loan, Salisbury Sanford Savings & Loan, Sanford Home Savings & Loan, Scotland Neck Cleveland Savings & Loan, Shelby Shelby Savings & Loan, Shelby Home Savings & Loan, Siler City Smithfield Savings & Loan, Smithfield Southern Pines Savings & Loan, Southern Pines Southport Savings & Loan, Southport Spindale Savings & Loan, Spindale Mitchell County Savings & Loan, Spruce Pine St. Pauls Savings & Loan, St. Pauls Star Savings & Loan, Star First Savings & Loan, Statesville Home Savings & Loan, Statesville Jackson County Savings & Loan, Sylva Edgecombe Homestead & Loan, Tar-boro Tarboro Savings & Loan, Tarboro Taylorsville Savings & Loan, Taylors-ville Home Savings & Loan, Thomasville Peoples Savings & Loan, Thomasville Montgomery Savings & Loan, Troy Valdese Savings & Loan, Valdese Anson Savings & Loan, Wadesboro Wake Forest Savings & Loan, Wake Forest Warrenton Savings & Loan, Warrenton Beaufort County Savings & Loan, Washington Home Savings & Loan, Washington Haywood Savings & Loan, Waynesville Weldon Savings & Loan, Weldon Wendell Savings & Loan, Wendell Ashe Savings & Loan, West Jefferson Peoples Savings & Loan, Whiteville Wilkes Savings & Loan, Wilkesboro Martin County Savings & Loan, Wil-liamston Carolina Savings & Loan, Wilmington Citizens Savings & Loan, Wilmington Cooperative Savings & Loan, Wilming-ton Peoples Savings & Loan, Wilmington Atlantic Savings & Loan, Wilson Wilson Home & Loan, Wilson Standard Savings & Loan, Winston- Salem Winston-Salem Savings & Loan, Wins-ton- Salem Federal Savings and Loan Associations in North Carolina: Asheville, Asheville Federal Savings & Loan Association. Brevard, Brevard Federal Savings & Loan Association. Burlington, Community Federal Sav-ings & Loan Association. Burlington, First Federal Savings & Loan Association. Charlotte, First Federal Savings & Loan Association. Charlotte, Home Federal Savings & Loan Association. Conover, First Federal Savings & Loan Association. Durham, First Federal Savings & Loan Association. Fayetteville, Home Federal Savings & Loan Association. Forest City, First Federal Savings & Loan Association. Gastonia, First Federal Savings & Loan Association. Greensboro, Home Federal Savings & Loan Association. Greenville, First Federal Savings & Loan Association. —See Savings & Loan Asso., page 18 — PAGE 16 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 90 YEARS OF SAVINGS AND LOAN IN NORTH CAROLINA In 1870, approximately forty years after the first building- society was form-ed in Pennsylvania, the North Carolina Legislature enacted a statute permitting the organization and operation of such associations in this state. The preamble to the originial act as taken from the Public Laws of North Carolina, Session of 1869-70, Chapter 129, reads as follows: "An Act to be entitled An Act Author-izing the Incorporation of Homestead and Building Associations in this State. Whereas, divers persons, chiefly of the Industrial classes, are desirous of form-ing associations for the purpose of ac-cumulating by small periodic deposits, a savings fund with which they may secure a homestead, and for their mu-tual benefit; and WHEREAS, it is the dictate of a sound policy that the pro-tection and encouragement of the legis-lature should be given to associations having in view ends and objects so com-mendable in their character, therefore: Section 1. The General Assembly of North Carolina do enact—That from and after the passage of this act it shall and may be lawful, and authority is hereby given to any individuals or persons in any city or county in this State, under any name by them to be assumed to as-sociate for the purpose of organizing and establishing homestead and building associations— " While the original act provided gen-erally for the organization of such as-sociations and set forth certain conditions for doing business, it did not make any State official responsible for their super-vision. The only official referred to in the original act was the Clerk of Su-perior Court, with whom the association was required to file a copy of the articles of such corporation. Inasmuch as the Clerk of Superior Court was the responsible official it is almost impossible to know when or where the first association was opened for business. However, we have documentary proof that the Mechanics Building and Loan Association of Greensboro was organized in 1872. There is also evidence that a number of other associations were chartered during the 1870's. A number of associations were chart-ered from 1880 to 1900. We have several associations chartered during this period that are still in existence. In fact, there are fourteen associations still in opera-tion that were chartered in the 19th Cen-tury. These associations are still being operated: 1881—June 12—Mutual Savings and Loan Association, Charlotte 1883—Mechanics Perpetual Building & Loan Association (now Home Feder-al)— Charlotte 1887—February 5—First Savings and Loan Association, Statesville 1887—September 21—Citizens Building & Loan Association, Wilmington 1887—September 22—New Bern Sav-ings and Loan Association, New Bern 1888—January 10—Citizens Building & Loan Association (now Citizens Fed-eral) Rutherfordton 1888—Concord—Kannapolis Savings and Loan Association, Concord 1889—September 6 — Edgecombe W. C. YORK Deputy Commissioner, Savings & Loan Division, N. C. Insurance Commission. Homestead & Loan Association, Tarboro 1889—October 24th—Wilson Home & Loan Association, Wilson 1889—November 20—Winston-Salem Savings & Loan Assn., Winston-Salem 1889—December 4—Anson Savings & Loan Association, Wadesboro 1890—August 3—First Savings and Loan Association, Hickory 1898—March 17—Cooperative Savings and Loan Association, Wilmington 1898—March 31st—Cabarrus County Building, Loan & Savings Association, Concord The coming of the 20th Century brought on a greater demand for such associations and most associations still in existence were chartered prior to 1930. In 1933 the President of the United States, Franklin D. Roosevelt, among other things, proposed legislation which brought into being many housing pro-visions, among which was authorization for creation of Federal Savings and Loan Associations. While the State chart-ered associations did serve and still are serving the great business purpose of promoting thrift and home ownership, they did so to the extent the Federal Government recognized the stimulating influence these institutions had on the economy. In addition to the chartering of Federal Associations, the new legisla-tion contained provisions for setting up the Federal Home Loan Bank System and the Federal Savings and Loan In-surance Corporation. Today we have what is known as the dual system of chartering. Proponents of new associations have the choice of ap-plying to state authorities or to Federal authorities for permission to open for business. Both systems provide for mem-bership in the Federal Home Loan Bank System and for the insurance of accounts by the Federal Savings and Loan Insur-ance Corporation. Such insurance was made available to all associations, both State and Federal, and most associations at the present time have such insurance. With the great increase in population during the past two decades, it became apparent that Savings and Loans were needed institutions. Thus, the modern Savings and Loan Association began to take its rightful place in our economy. It must be apparent to people every-where that the management of these in-stitutions is composed of typically high class citizens. But the most important thing is that they are local people who, for the most part, are encouraging other local people to let their money be used so that their neighbors might have a home of their own. Because of this local influence the associations are making approximately 40% of all home loans in this country today. Another reason for this high percentage is because Savings and Loan Associations are specialized home owner credit institutions. Most associations, by the terms of their charter and by rules and regula-tions of the Supervisory Authorities, are limited to making* loans on homes. Some loans, of course, are made on commer-cial property, but the primary statutor-ial purpose of Savings and Loan Asso-ciations is to help build or buy a home. There is no safer investment than a first mortgage on a family's home. Because of this safety and because home loans are made for a long term, a higher re-turn can be paid to those who invest their funds with these institutions. During the period from December 31, 1950, through December 31, 1960, the as-sociations in North Carolina had a phe-nomenal growth. The assets of these institutions increased more than 400%. The increase was from $330,000,000.00 to $1,375,000,000.00. The associations have become full grown and mature in-stitutions in the financial field. They are assuming their rightful responsibilities in almost every community in this state, both civic and economic wise. These as-sociations pay into the General Fund of North Carolina each and every year more —See 90 Years, page 21 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 17 CONSERVATIVE MANAGEMENT IS KEY TO GROWTH Cameron Village Organized in September of 1937, First Federal Savings and Loan Association of Raleigh completed the year showing-total assets of $20,008.25. Twenty-three years later, it had grown to become the fourth largest association in the state, its 1960 financial statement listing over 35.8 million dollars in assets. During the last decade, the growth of the associa-tion has been so great as to warrent attention by the whole savings and loan business, and its story was carried in a recent copy of "Savings and Loan News," a trade magazine of the business. First Federal feels that conservative management has been the major factor contributing to its growth during the past ten years. The lending and reserve policies as determined by its Board of Directors have created public confidence Zebulon Branch in the association, confidence which is re-flected in an almost nine-fold increase in savings during the 1950's. The present Board of Directors is composed of men who are leaders in the community and well qualified to serve in an institution providing the specialized services of a savings and loan association. Among them are included a contractor, an attor-ney, the president of a steel fabricating company, and an officer of the Carolina Power and Light Company. These men, as are the other directors, are well aware of the economic and building trends of the area served by the association and are therefore able to determine policies which benefit both it and the community. A second growth factor is the internal harmony, the planning, and the friendly attitude of the association. The associa-tion realizes that the customer is the most important person connected with it and strives to provide more than simply courteous service. Moreover, the associa-tion is continually developing and chang-ing its own operations to provide the most efficient methods based upon tech-nological advances. In addition, the as-sociation conducts its own training pro-gram, utilizing the many educational facilities of the U. S. Savings and Loan League, to ensure that its officers and staff keep abreast of the latest develop-ments in the field. tomer to purchase certificates in multi-ples of $100.00. Its current dividend rate of 4% ensures a better than average re-turn to the saver. It also offers Christ-mas Club accounts to foster the idea of saving for a special occasion. In the field of lending, the association now handles over 4,000 mortgage loan accounts. The proceeds of these loans, made only on improved real property, have been used for many purposes. While home ownership has always been the cor-nerstone of the savings and loan busi-ness, loans made by First Federal have also enabled individuals to make repairs to existing dwellings, to go into a busi-ness of their own, to consolidate debts, New Bern Avenue Branch A third factor which has attributed to the growth of the association is the service it offers. First Federal offers al-most all of the services available under its charter. At present, it services over 13,000 savings accounts, all of which are insured up to $10,000.00 by the Federal Savings and Loan Insurance Corporation. These accounts are primarily composed of regular savings, or passbook accounts, in which the customer may place any amount of money at any time; and in-vestment accounts, which allows the cus- Main Office and to accomplish other worthwhile en-deavors. In addition, the association of-fers FHA Title I Home Improvement loans. These loans, which are unsecured, offer additional opportunities for the homeowner to make additions or im-provements to his home. The association has indicated its posi-tion of leadership in many other ways. Its managing officer and Executive Vice President, Mr. R. D. Beam, is presently —See Conservative Mgt., page 21 — J. M. PEDEN BOARD OF DIRECTORS E. L. LAYFIELD R. D. BEAM JOHN N. COfFEY A. E. FINLEY W. H. WEATHERSPOON HOMER C. STARLING JAMES M. POYNER PAGE 18 THE E. S. C. QUARTERLY WINTER-SPRING, 196 Hendersonville's First Federal Savings Is Home Owned and Privately Managed The First Federal Savings and Loan Association of Hendersonville is a locally owned and privately managed financial institution designed to promote thrift and home ownership among the people of the area served. Its principal functions are implied in its name: (1) to gather together the savings of the community (2) to use the savings to make long term loans for the construction, repair, pur-chase or financing of homes. Federal sav-ings and loan associations are chartered by the federal government and automa-tically are members of the Federal Home Loan Bank system and the Federal Sav-ings and Loan Insurance Corporation. In the spring of 1934, the management and directors of the Hendersonville Building and Loan Association, a state chartered institution, decided to liquidate that association and at the same time start the operation of a Federal Associa-tion. The organizational meeting was held May 15, 1934 and the charter was granted July 27, 1934. The original officers of the association were T. L. Durham, President; Bruce Drysdale, Vice President; D. H. Lee, Secretary-Treas-urer (Manager); and J. Foy Justice, Attorney. Mr. D. H. Lee is generally con-sidered the founder of the Association and continued as its Manager until his death in 1948. The current President, Bruce Drysdale, was elected to this office in 1940 to suc-ceed T. L. Durham, deceased. At the same time the current Vice-President, Roy Johnson, was elected to succeed Mr. Drysdale. Mr. H. B. Kelly, Banker, Legislator (Florida) and Hotel Operator, suceeded Mr. Lee in 1948 when assets were slight-ly in excess of one million dollars. He served faithfully and well until June 1953 when he resigned to accept the position of Vice President and Manager of First Union National Bank and Trust Company of Asheville, Hendersonville Branch. The present Manager, Frank L. Hoyle, Jr., succeeded Mr. Kelly in July 1953 when assets were approximately three and one-half million dollars. Mr. Hoyle had worked with savings and loan as-sociations, The Reconstruction Finance Corporation and as a practicing attorney. He was also an Examiner with the Fed-eral Home Loan Bank Board before com-ing to this Association. Bob G. Sherman, originally employed with The First National Bank of South Carolina, Columbia, South Carolina, joined our staff as Secretary of the As-sociation in January 1959. Bernice E. Cameron joined our staff in 1954 and was named Assistant Secre-tary in 1958. At the present time, the Association occupies quarters at 131 Fifth Avenue West. Since the Association has experi-enced a very rapid growth for the past few years, it has out grown the present quarters and construction is under way for a new office building at the corner of Church and Fifth. The Board of Direc-tors authorized the Association to enter into a contract for the erection of this by First Federal is 4% per annum com-pounded semi-annually. All accounts are fully insured up to $10,000 by the Fed-eral Savings and Loan Insurance Cor-poration and not one cent has ever been lost in a federally insured association. new building in accordance with con-struction bids submitted in June 1960. Completion is expected around Septem-ber 1, 1961. The Board of Directors at the present time consists of the following members: Bruce Drysdale—1934 Roy Johnson—1937 W. A. Bennett—1942 W. M. Gregg—1935 Noah Hollowell—1934 Frank L. Hoyle, Jr.—1953 E. F. Latt—1934 C. M. Ogle—1934 G. C. Richardson—1936 Arthur B. Shepherd—1949 The First Research Corporation, con-sulting economists of Miami, Florida, was employed to aid this Association in submitting a proposal for a new branch office to be located in U. S. Highway #25 at Fairview Road, Fletcher, North Caro-lina. The report prepared by First Re-search showing economic conditions in the Fletcher area and including parts of both Henderson and Buncombe Counties, was completed and the application sub-mitted to the Federal Home Loan Bank on March 28, 1960. The Federal Home Loan Bank Board's resolution dated August 12, 1960 approved our applica-tion and authorized the new branch of-fice. Construction of modern building at Fletcher to be occupied by the Branch Office will be completed in time for oc-cupancy on or about May 1st. The build-ing of one story brick construction with basement is being erected by L. C. Youngblood and will be occupied under lease. The new Branch will soon be func-tioning with Paul W. Trantham as man-aging officer. At the present time First Federal's assets are in excess of 15 mil-lion dollars, and has a staff of twelve em-ployees and officers. The current dividend rate being paid SAVINGS & LOAN ASSO. —Continued from page 15 — Hendersonville, First Federal Savings & Loan Association. Hickory, Fidelity Federal Savings & Loan Association. Kinston, Home Federal Savings & Loan Association. Lincolnton, First Federal Savings & Loan Association. Mooresville, Mooresville Federal Sav-ings & Loan Association. Mount Airy, Workmen's Federal Sav-ings & Loan Association. New Bern, First Federal Savings & Loan Association. Raleigh, First Federal Savings & Loan Association. Reidsville, First Federal Savings & Loan Association. Roanoke Rapids, First Federal Savings & Loan Association. Roanoke Rapids, Rosemary Federal Savings & Loan Association. Rocky Mount, Builders Federal Sav-ings & Loan Association. Rocky Mount, First Federal Savings & Loan Association. Rutherfordton, Citizens Federal Sav-ings & Loan Association. Sanford, First Federal Savings & Loan Association. Shelby, First Federal Savings & Loan Association. Tryon, Tryon Federal Savings & Loan Association. Winston-Salem, First Federal Savings & Loan Association. Winston-Salem, Piedmont Federal Sav-ings & Loan Association. Asheville, Carolina Federal Savings & Loan Association. Dunn, First Federal Savings & Loan Association. Greensboro, American Federal Savings & Loan Association. CAROLINA SECURITIES —Continued from page 13 — fices are maintained in the Johnston Building, Charlotte, and 40 Wall Street, New York, New York. Inter-connecting wire services between the three offices facilitate company transactions. The Company has approximately twenty res-ident representatives who serve practi-cally all communities in North Carolina and several in South Carolina. Carolina Securities is a member of the Midwest Stock Exchange, Chicago, the largest exchange outside New York City, and ranks third in size in the United States. WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 19 $150 THOUSAND TO $8 MILLION IN 10 YEARS OF GROWTH First Federal Savings and Loan As-sociation of Sanford, North Carolina was organized April 30, 1950 with assets of less than $150,000.00; the association to-day boasts of assets totaling nearly $8,- 000,000.00, a phenomenal growth of busi- TIGSS. During the year 1960 the directors, in order to provide the best and most mod-ern thrift and home financing services in the area, undertook and completed a new program to expand its office facili-ties. The new First Federal home office building was completed at the corner of Steele and Wicker Streets, Sanford, North Carolina, and a modern branch of-fice was opened in Pittsboro, North Carolina. This program was undertaken not only to make it easier, more conven-ient and more pleasant for First Fed-eral customers to transact their business, but also to attract new customers and serve more efficiently the greater num-bers of people now patronizing the in-stitution. First Federal savers have equally shared in record earnings paid for the use of their funds. A total of well over $1,000,000.00 in dividends has been dis-tributed since the organization of First Federal Savings and Loan Association only ten short years ago in April of 1950. At First Federal all of the earnings on mortgages and other investments are paid out to savers in the form of div-idends, after operating expenses and ad-ditions to reserves. The current dividend rate at First Federal is 4% per annum payable on June 30th and December 31st, and each account is insured up to $10,000.00 by the Federal Savings and Loan Insurance Corporation. First Federal is also especially proud of the savings and lending activity which the institution has been able to render since organization as well over $13,000,- 000.00 have been placed with the associa-tion and this amount in turn has been loaned to borrowers mainly to construct or purchase homes. —See 10 Years Growth, page 20— Tod Directors W. H. Ray, L. P. Wilkins, and L. P. Cox study house plans before deciding upon a loan. Center Directors T. J. Davenoort, W. R. Makespeace, Jr., and W. M. Womble consider a loan appli-cation.' Bottom shows the new home of Sanford's First Federal Savings and Loan Association. Directors L. D. Isenhour,, J. Victor King, and J. R. Ingram; Nordon. Pittsboro Teller Glenda Gaines, and Pittsboro Branch Mgr. J. Watson PAGE 20 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 WORKMEN'S FEDERAL HAS GROWN A MILLION A YEAR FOR SEVEN YEARS The charter of the Workmen's Federal Savings and Loan Association was is-sued originally as a state chartered As-sociation, under the name of Workmen's Building and Loan Association, in April of 1910. It has served the people of Mount Airy and surrounding areas con-tinuously since that time. Our area of operation covers five counties in the state of Virginia and seven counties in the state of North Carolina. Our assets at the present time are in excess of $17,000,000 and we are the largest financial institution between Winston-Salem and Asheville, North Carolina. Our operation has shown a growth of over $1,000,000 a year for the last seven years. At the present time our Association is serving over 8500 savings customers and we have over 4600 loan customers. All of the above are scattered over the above areas as well as a large number of sav-ings customers from many states in the union. Our Association is a member of the Federal Home Loan Bank Board system and its accounts are insured up to $10,- 000 by the Federal Savings and Loan Insurance Corporation. During the past year, which was the best year in its history even though going through the so-called recession, our Association increased its assets by $1,234,000 or 7.7% and also paid out in dividends the largest amount ever paid in this county. It was a total of $568,000, or roughly 25V2 % above the 1959 figure. Since the beginning of 1961 our As-sociation has continued to make progress and we look forward to even a better year in 1961. TEN YEARS GROWTH —Continued from page 19 — The real satisfaction of the Officers, Directors, and Staff of First Federal lies in the fact that the association enjoys the loyal support of so many thousands of savers and homeowners. First Fed-eral shall not be satisfied with past ac-complishments, but will continue looking for new opportunities to give better serv-ice for future growth and expansion. It is a challenge which has been accepted to provide the best in thrift and home financing services, as these services are the sole reason for our existence. Serving as First Federal directors are J. T. Davenport, W. R. Makepeace, Jr., L. P. Cox, W. H. Ray, J. R. Ingram, J. Victor King, L. P. Wilkins, Lewis D. Isenhour, and W. M. Womble, with W. M. Womble serving as Executive Vice President. Top, left, A. B. Carter, president of Workman's Federal Loan Savings and Association; right, J. B. Graves, secretary-treasurer; lower left (Sitting at Information Desk, left to right) Joe B. Graves, Betsv M Love and E. G. Webb, (Sitting at back desk) A. B. Carter and Frances C Smith, (At next desk) Lillie Mae Seism, (Standing at counter, left to right) Billie Nell Hiatt, Martha E. Piatt, Anne S. Gordon, Virginia P. Leach, and June A. Shinault. Right, A. G. Webb, assistant secretary WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 21 Cabarrus County Building, Loan and Savings Association, Started In 1898 Cabarrus County Building, Loan and Saving's Association was established in Concord, North Carolina in April 1898, md is one of the County's oldest finan-cial institutions. Thrift and Home Financing, leading :o Home Ownership, are the two major )bjectives that this Association and its shareholders have striven for during the nore than sixty-two years of its exis- ;ance. Today, Cabarrus County Building, ^oan and Savings Association occupies nodern and spacious quarters at 119 south Union Street, immediately opposite he Concord, Post Office. Services include nortgage loans and savings plans which ire tailored to meet the needs of its housands of shareholders. Convenient )rive-up-Window, adequate customer parking facilities and 24 hour envelope depository are but a few of the many features of this Associations new main office. In addition all savings are insured by the Federal Savings and Loan Insurance Corporation, and the Association is a member of the Federal Home Loan Bank System. This Association is also a mem-ber of the United States Savings and Loan League, the North Carolina Sav-ings & Loan League, and the Savings and Loan Foundation. With assets of more than $6,200,000.00 and over 5,000 Shareholders, the Cabar-rus County Building, Loan and Savings Association will continue to grow with the community, always striving to render better and greater service to its Share-holders. 90 YEARS SAVINGS & LOAN IN N. C. —Continued from page 16 — han $1,000,000.00 in the form of stock md excise taxes. The supervision of the 149 State-chartered associations is under the pop-dar Commissioner of Insurance, Charles <\ Gold. The Commissioner of Insur-mce appoints a Deputy who devotes his 'ull time to the Savings and Loan Asso-ciations and is the direct Supervisor of dl these institutions. The Supervisor at he present time is W. C. York. The Sup-ervisor has 10 field examiners that work ull time examining and auditing these issociations to see that they are being operated according to law and in a safe and sane manner. The examiners are ever alert to see that rules and regula-tions are being complied with and that the policies and procedures of the insti-tution are in keeping with good business principles. The integrity and the solven-cy of these institutions are under the scrutiny of the examiners who are ex-perts in their field. The Federal Savings and Loan Associations are subject to the same kind of checking except they are checked by the examiners of the Fed-eral Home Loan Bank Board. INVESTMENTS IN FUTURE —Continued from page 14 — Assistant Secretary is Mr. Arthur D. Weese, who also is Manager of Universal Services. Assistant Treasurer is Mr. G. Donald Ebert, who also acts as Controller for Fund Investments, Inc. The Board of Directors of Fund In-vestments, Inc., contains men and women outstanding in business, military, and fi-nance. Included on the Board are Sister Perfection, of Charlotte (President); Mr. S. Holmes Plexico, of Salisbury (First Vice-President); Major General Ran-dall M. Victory, USMC (Ret.), of Jack-sonville (Second Vice-President); Mar-jorie G. Hugo, of Charlotte (Secretary- Treasurer); RAdm. A. I. Malstrom, USN (Ret.), of Washington, D. C; Lt. Gen-eral J. P. Riseley, USMC (Ret.), of Roswell, New Mexico, who was com-manding General of Camp Lejeune at the time of his retirement in June, 1959; Mr. F. Roger Page, Jr., of Winston- Salem, President of the Page Oil Com-pany, the Page Real Estate Developers, and the Page Salvage Company; and Mr. T. Stuart Coffey, Jr., of Statesville, owner of Stuart Coffey and Company (yarn sales) and Regional Sales Manag-er of Fund Investments, Inc. Although Fund Investments, Inc., is a relatively young company, it is prog-ressing with seven league boots. It has the perfect service—how to help people's money grow. It has the magic money tree. It has faith in America and its great industrial system. It has faith in the future. CONSERVATIVE MANAGEMENT —Continued from page 17 President of the North Carolina Savings and Loan League. B. A. Jones, Assistant Manager and Vice President, serves as Treasurer of the Raleigh Chamber of Commerce. These two men and other personnel have served in many other capacities of leadership in both the sav-ings and loan business and the commun-ity. Among the other key officers of the association are David Boyles, Controller, who handles both savings and bookkeep-ing departments, and Earl T. Wilborn, Ass't Vice President and Manager of the Loan Department. In their positions, these two men are responsible for the overall operation of the two major de-partments of the association. The association presently maintains three branch offices in addition to its main office on Salisbury Street in Raleigh. These branches are located on New Bern Avenue near the Motor Vehicles Build-ing, in Cameron Village, and in Zebulon, a small town 20 miles east of Raleigh. Each branch is well equipped and able to provide all the services offered by the main office, except the approval of loans. During 1961, the association plans to move into a spacious new building pres-ently under construction one block from —See Conservative Mgt., page 29 — PAGE 22 THE E. S. C. QUARTERLY WINTER-SPRING, 1961 THE FIRST SAVINGS AND LOAN IS HICKORY'S OLDEST FOX By Edgae L. Fox Executive Vice President The First Savings & Loan Association of Hickory is the oldest financial insti-tution in Hickory and ranks among some of the oldest savings and loan associa-tions of the state. Chartered as a state association in April 1890, it has served in the upbuild-ing of Hickory and its suburbs for over seventy-one years. It was organized by • ^ a group of forward-looking business and professional men who felt the need of an organization that would help people to become home owners and at the same time would also pro-vide a place for the savings of those who had funds to invest in the best security to be found—a first mortgage on a home. The first directors of the association were a group dedicat-ed to helping their neighbors and friends obtain their own home, thereby building a better community, and would have con-sidered it an insult to be asked_ to ac-cept any remuneration of any kind for their services. The association, since its organization, has had only five Presi-dents, which bears out the fact that they were willing to serve long and well for a cause in which they believed. The First Savings & Loan Association, although it has been operated conserva-tively from the very beginning, has had a remarkable growth. Its assets today are $13,000,000.00, whereas only ten years ago, the assets were only $3,000,- 000.00. It has more than 4200 savings accounts totaling $11,500,000.00, and first mortgage loans of $11,300,000.00. Each savings account is insured up to $10,000.00 by the Federal Savings & Loan Insurance Corporation of Washing-ton, D. C, a governmental agency similar to the Federal Deposit Insurance Cor-poration which insures savings in com-mercial banks. The association is also a member of the Federal Home Loan Bank of Greensboro, and as a member of this bank enjoys a large line of credit, if and when needed, to be used in making mort-gage loans and in paying withdrawal of savings. It also has a strong liquidity position, as a substantial amount of cash and Government bonds are carried in its portfolio. Each year a substantial amount is set aside as reserves to take care of any losses that might be sustained by reason of severe adverse economic conditions. Reserves at the present time amount to over $1,000,000.00, adding to the strength of the association. Individual, partnership, corporation, joint, and trust savings accounts are of-fered to those desiring a safe and con-venient place to invest their savings at the highest rate of return consistent with sound operating practices. It has been observed that those investing their money want safety first, availability next, and then a high rate of return. First mortgage loans are made prin-cipally on one-family homes, however the association makes loans on apart-ments, commercial property, and churches, when funds are available. All loans are made on an amortized basis up to a period of twenty years, and the majority are the conventional type loan, although quite a number of VA and FHA loans have been made. Several years ago the association's office building was completely remodeled and refurnished, and today has office quarters that are attractive and ampf for the association's needs. A lot has recently been purchased, looking forwarc to the erection of a branch office building at a future date. There are at the present time ovei 6000 savings and loan associations in th< United States with total assets of ap proximately 70 billion dollars. Service u the paramount aim of these associations and the First Savings & Loan Associa tion of Hickory looks forward to serving the people of Hickory and its suburbs as it has for over three score and ten years and also hopes to maintain for Hickory its designation as "The Best Balancee City." Interior of First Savings and Loan of Hickory. BACHE & CO. -Continued from page 11 — for over 82 years. Serving 82 cities in the United States directly, it also has ten foreign branches, as follows: Hong Kong, Montevideo, Montreal, Toronto, London, Paris, Geneva, Frankfurt, Rome, Milan, with representatives in Mexico City, South America and Japan. The firm holds memberships on all securities and com-modities exchanges, including four mem-berships on the New York Stock Ex-change. Bache & Co. was a pioneer in helping in the financing that is making Canada a potential colossus among nations, and was one of the first American houses to acquire a membership on the Stock Ex-change at Toronto where it maintains branch. Present-day operations are, perhaps moi'e complete than those offered by an other brokerage, covering all securitie trading- , whether it is in the great coi porations in exchange trading, or reg ional companies on smaller exchange; or Over-the-Counter or unlisted dealing; The firm is equally prominent in a types of commodity transactions, and ir eludes a Metals Department that was Bache innovation and is still largely er elusive with the firm. The Syndicate Department, which pa) —Continued on page 38 — WINTER-SPRING, 1961 THE E. S. C. QUARTERLY PAGE 23 Private Citizens Take Over the Obligation of Bringing Safety to N. C. Highways "We are killing people at the rate of :hree a day on our North Carolina high-ways. Something must be done about it." rhese terse words were said by Governor rerry Sanfcrd to the newly organized ^Jorth Carolina Traffic Safety Council, March 22, 1961. The Governor indicated the positive ittitude of the entire group when he 5'aid "We are killing." There was no ioubt about that he meant. Every citizen ias an obligation in the "keeping of his ?ellow-man" alive on the highways. In ;wenty-two words he summed up the Droblem and provided a major factor in ts solution. The problem is death on the highway, rhe solution is many-headed. Responsi-jility for highway safety belongs to wery citizen of th |
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