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The E. S. C. Quarterly
VOLUME 19, NO. 1-2
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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