Tampa Bay Times from St. Petersburg, Florida • 30

Investment Popularity Trusts Gain state iQl La estate, an apparently growing field, without the headaches antf hazards of buying land or housing directly or investing with a small group. The REIT investor has the advantage of He can sell his shares at will, BESIDES BEING AS painless as buying a share of corporate stock, investment in REITs has another advantage. The real estate company is exempt from ordinary Income taxes generally, If it meets certain requirements such as distributing at least 90 per cent of Its Income. For Investors this means that such companies pay out virtually all earnings as dividends and often the return is a high one in relation to share price. NariK 'rally, the dividends are taxable to the investor.

In offering a list of some of the best known REITs, Stan-' dard Poor's sounds this warning: "Most REIT shares have advanced strongly this year and are near records. It may pay to await a period of temporary weakness to make Boise Cascade and many others. Perhaps the most Interesting development for Investors is that so many money-minded institutions have entered the field. These include some of the nation's major insurance companies and banks. It's a natural extension of their real-estate departments, which have long specialized in mortgage lending.

These are the organizations which have been so busy lately forming REIT'S into which the small investor can buy his way just as he would buy a share of stock. IN A RECENT STUDY Standard Poor's the investment advisory and publishing company, points out that more than 80 large REITs, many of them, formed in the last few years, have more than assets representing ownerships money invested in real estate obligations. More than four dozen of these are already listed on the New York Exchange or the American Stock Exchange, and others have applied. Kenneth D. Campbell, publisher of Realty Trust Review, a trade publication, points out that the trusts can generally be classed in four groups.

One is the group of companies that specialize in long-term mortgage investments, such as Equitable Life Mortgage and Bankamerica Realty Investment. Another group, such as Median Mortgage Investors and Diversified Mortgage Investment, stress intermediate-term Investments. A THIRD GROUP emphasizes short-term loans, such as Continental Illinois Mortgage and Wachovia Realty Investment. Such loans are often called meaning construction and development loans. "Then there is a hybrid type, or they are sometimes called combination trusts," Campbell explained.

"They use their other funds to invest in short-term loans." These include Hubbard Real Estate Investment and U.S. Realty Investments. For the Investor, REITs offer a way of investing in real By ELIZABETH M. FOWLER New York Tlmti Service 10 NEW YORK REIT'S. That is the abbreviation for investments that have been gaining with interest lately, and with good reason.

REIT stands for Real Estate Investment Trust. It conjures a variety of Opportunities in the mind of an investor investments in raw land, housing developments, Industrial parks, construction and building loans, long-term gages, etc. "Real estate has again become one of the glamor businesses during the past several years," Donald R. Riehl, a real estate expert writes in a newly published book called rate Real Estate Development and Management." INVESTORS ARE FINDING that many companies have diversified into the field such as American Standard, the Ogden 10-B Wednesday, July 28, Wl ') Desultory Market Fields1 Opening At New Mall Set August 15 8.17 Backs Down n-h rMrf ill CIV Market I Report located in the Missouri Mart Shopping center. Bill Burke was named manager.

Morningside Inc. has purchased a 10-acre tract In Pinellas Park. The property, located on 102 Avenue, west of 66th Street North, will be used as the site of a sanatorium for Christian Scientists. Karl Hickman, president of Morningside, which presently operates a sanatorium at 2500 31st St. said a new nursing facility would be constructed on the site in about one year.

The sale was negotiated by Sidwell B. Thomas, vice president of the Elmer J. Krauss Organization Inc. Greyhound Goes Plush With New Service J. M.

Fields discount department store will become the first tenant of the Cross-winds Mall on August 15th. The shopping center is located at the intersection of 66th Street North and 22nd Avenue. The one-story Fields building will have 107,000 sq. 80,000 of which will be for merchandise display. The store will be the company's seventh in the Tampa Bay area.

Two of the outlets are 1 located in St. Petersburg, one in Largo and three in Tampa. A parking lot with room for more than 3,500 spaces is lo- cated next to the store. The Crosswinds Mall when completed is expected to have 500,000 sq. ft.

of business 1 space. A Pantry Pride discount supermarket of 27,900 sq. ft. is expected to open later this year. The second phase of the development is York Stock Exchange, against 65 lows.

A total of 1,052 issues fell, while 333 stocks closed with gains. Volume expanded to 11.56-million shares still low by present standards from Monday's 9.93-million shares, which had marked the second slowest session of 1971. Llng-Temco-Vought, the volume leader, slumped to 13. The company disclosed that it will show losses for both the June quarter and the first half after making large extraordinary charges. In 1967, at the height of the conglomerate boom, L-T-V sold at a peak price of 169.

On the American Exchange, prices dropped sharply. THE INDEX CLOSED at 25.18, down .20, the sharpest decline since June 21. Volume jumped from 2,542,180 on Monday to 3,340,210. At the close, 685 Issues showed losses, 183 showed gains, and 244 were unchanged. In the over-the-counter market, prices were lower in light trading.

The Arthur Lipper mutual fund index closed at 89.96, off 1.11 per cent. coach's lower level. The plan is a new luxury service Greyhound is aiming at business travelers, organizations and groups of commuters on a continuing contract basis. Three Hartford, insurance companies use the service to and from New York. A plush Greyhound passenger cabin greets travelers using Greyhound's new Executive Coach service.

The VIP lounge (shown) has bronze and green reclining seats, gold carpeting and matching curtains. Hostesses serve refreshments from a galley in the Niw York Tlmti Strvic (c) NEW YORK The stock market dropped steadily Tuesday as a falling, dispirited price trend seemed to feed on its own weakness. Wall Street analysts pointed to such unsettling factors as the delicate economic recovery, the huge balance-of-payments deficit, the bleak outlook on various strike fronts and, finally, the lack of any dynamic development to lift investor spirits and stock prices. The Dow Jones industrial average, rolling downhill as the session wore on, slipped 8.17 points to 880.70. THIS MARKS ITS lowest close since 873.10 on June 28 which, in turn, represented an 8 per cent pullback from the 950 recovery high reached by the blue-chip Dow three months ago.

Chartists said the Dow now will probably test the lower 870's range, where the market displayed resistance to further erosion in late June. After the close of trading, United States Steel cut its quarterly dividend to 40 cents from 60 cents, despite a sharp earnings gain reported for the second quarter. "The timing was a surprise," commented one steel analyst on the dividend cut. Earlier, "big steel" shares had added to 31Ve- IT WAS A MARKET that cut down the prices of various big-name stocks. International Business Machines, posting a yearly low at 291, ending at 292 with a drop of four points.

IBM has been vulnera- ble to selling pressure since the giant computer company recently reported flat earnings for the June quarter. American Telephone eased Vi to 44'4 in active trading. Its low for the day was 41, or only above the stock's poorest price for 1971. Only one of the 15 most active issues managed to show a gain. That was National Steel, up Yt to 38tf.

Following the market close on Monday, National Steel had announced substantially higher earnings for its latest quarter. THE OVERALL statistics told their own story of a faltering market. There were only five highs on the New ig Steel Profits Up GM, siatea ior a late opening. When completed, the Times Win Services General Motors Corp. re- million complex is expected to have 50 stores.

The shopping center is being built by Food Fair Properties which is a Business Roundup partially owned subsidiary of Food Fair Stores the parent company of both Fields and Pantry Pride. Food Fair also was the developer of the Crossroads Shopping Center at the intersection of 22nd Avenue Tyrone Blvd. and 66th Street Dividends Declared Com! ShaarltSlpg .125 ftttt rle4 Rtctrtf ekl IRM9ULAH BarmttMtj Tr .50 1-4 MS REDUCED US Steel .40 It M0 OMITTED Gt Lkl Piptr against risk of a steel strike after July 31. Gott also noted imports of steel in the first five months of the year were a record 6.9-million tons. OTHER EARNINGS Eastern Air Lines reported lower earnings for the second quarter and first half of 1971.

Net income for the second quarter was compared with $5-million during the second quarter last year. For the half, net income was $459,000 or a negligible amount per share versus last year's six-month total of or $1.39 per share. Revenues were for 1971's first half compared with last year's The Gulf Oil Corp. reported record earnings for the first half of 1971 were up 6.1 per cent over the first half of last year. Income totaled $296-million or $1.42 per share compared with last year's $279-million or $1.34 per share.

Sales and operating revenues for the half-year increased by 12.2 per cent to reach Standard Oil Co. of Indiana reported earnings of $178,100,000 or $2.58 per share compared to last year's RESUMCD Cook PtVirnhh .15 Wolverine Ind II ported on Tuesday a 19.9 per cent jump in second quarter profits on record sales. First-half profits and sales also were sharply higher. GM's second-quarter net income rose to $567-million or $1.97 pre share, compared with $473-million or $1.64 a share in the corresponding 1970 period. Sales rose to from First half, profits were $1,177,000,000 or $4.09 a share, up from $821-million or $2.85 a share.

Sales increased from to MG said second quarter factory sales of cars and trucks worldwide were a record 2,126,000, an increase of eight per cent from the 1,962,000 sold in the year-ago period. The $1,177,000,000 first-half profit is the second highest in the company's history, topped only by the first half of 1965. In another earnings report, United States Steel the nation's largest steelmaker, reported sharply higher profits and sales for the second quarter and first half of 1971 and a 33 1-3 per cent slash $159,400,000 or $2.31 per share in the first six months of 1970. Revenues rose from to $2,499,000,00 Sun Oil second quarter earnings were up from last year. Earnings were $37,823,000 or 85 cents per share compared to last year's $34,129,000 or 77 cents per share.

Revenues were down, $473,135,000 from $478,095,000. INTEREST RISE Interest rates on the government's short-term borrowing rose Monday to the highest point in almost nine months in the regular weekly auction of Treasury bills. Average yield to investors on in 91-day maturity bills was 5.554 per cent, up from last week's 5.546 per cent. The average yield on of 182-day bills was 5.833 per cent, up from last week's 5.724 per cent. BROKER BOARD Merril Lynch, Pierce, Fenner Smith the world's largest brokerage firm, Tuesday became the first securities firm to be listed on the New York Stock Exchange.

The firm's stock has been traded in the over-the-counter market since the first public offering of its shares June 23. STOCK Blue Ball Inc (x) x)-2 tor I split tubltct to pprovil. WIImxi (xl (x)-i tor I split subloct to ipprovsl. SMART CHART by Stansbury in the quarterly dividend. Second quarter profits rose to $77,879,954 or $1.44 a share from $39,374,250 or 72 cents a share in the corresponding 1970 period.

Sales jumped from $1,297,531,429 to $1,645,335,806. First half profits, rose to $118,596,991 or $2.19 per share, from $74,865,498 or $1.38 a share, in the year-ago period. Sales rose to $2,822,032,733 from $2,475,017,077. The dividend was cut to 40 cents from 60 cents a share, beginning with a payment Sept. 10 to holders of record Aug.

6. Edwin H. Gott, chairman of the company, said the gains stemmed largely from advance buying by customers INCREASED Ftd Natl Mtg 30 Samwilts Corp .075 Warner Lambert Wllion Co .35 f-M MO MO M5 S-27 l-e 1-2; 14 14 1-20 M3 1-13 1-31 10 1-20 -3 1-13 1-13 30 It 730 10 1-4 113 M7 M7 M0 17 1-55 Ml M7 14 14 MO 1-13 Ml 1-10 MO 1-20 14 1-10 1-20 M3 1-11 14 MO 1 1-27 Mi MS 21 MS M0 MO 1 10-1 -30 10 M( MS IMS 04 -03 1-11 27 1-31 17 MS 1M 10-7 MO 1M -30 MO -30 1-31 1M Mt 1-31 7 1-23 Ml MS 10 Ml Ml 30 1M 1-31 MS Conn Nat Gas Cons Edison NY .45 Copelend Refrlg .30 Crompton Knowles .20 Dert Industries .075 Deere 4 Co .50 Olebold Inc .10 Fleming Co 125 Gen Am Transpt .40 Gen Flreprtg .10 Granltevllle .25 Guaranty Tr Can .125 Gulf Oil Corp 375 Harbor Fund 12 Interst Brands 24 Kaiser AlumlChem .25 Krueger WA 10 Leigh Products 0 Mengood 15 Meduae Prtlnd Cam .30 merck It Co MSL Industries .10 Myers, LE. Co .10 Natl Gypsum ...2625 Natl Tea Co 20 NL Industries 25 Norfolk WestRy 1.25 Northeast Utll J3S Nwest Bancorp .35 Pabst Brewing .20 Pet Inc 325 Peter Paul 30 Prentice Hell 19 Prudential Fds .025 Revert Copl.Br 25 Rorer Amchem Rowen Drilling .07 Schering-Plough .225 Shelter Globe 20 Snap on Tools 275 Southern Rwy 75 Std Oil, Ohio 475 Steutter Chem 45 Thrifty Drug Strs .175 Union Camp .25 Union Electric 32 Unit Illuminating .52 Vt Amer Cp A ....15 Well-McLaln ....125 M5 1M I 25 MS MS t-M 1 INITIAL Cent Steel new .10 Overnite Tramp it .15 Rlker Maxson A REOULAR Acme-Cleveland .30 0 AMBAC Ind 125 0 Am Brenda JS Am Elec Power .425 0 Am Seating .11 Am SmeltlRfg Mi Anchor Cpllng .225 Ajjoc Dry Gds .30 4 Blue Bell Inc 30 0 Brown A Sherpe .05 Bullock Fund II Butove Watch 15 Burndy Cp .175 Burns Foods Cdn Fund .10 Cities Svc 55 Coca BtlgLA .225 110 MO 1-10 1-10 14 MS 1-13 MO l-le MO 1-20 30 M0 e-7 1-31 1-31 WS 1 e-27 M7 MS -7 North. First Federal Savings Loan Association of Tampa announced it has acquired the southeast 1.1 acres at the in-tersection of North Dale 1 Mabry and Floyd Road.

Plans call for the temporary on the site of the First Federal Carrollwood branch within the next three weeks, and the construction of a permanent building in the fall. Walter P. Heinisch has been named manager of the Carrollwood office. He previously was manager of First Feder-Jal's branch at East Hillsborough. Cihls Properties Inc.

of Clearwater, a realty invest-. ment firm, has leased a new building at 2750 West Bay Drive in Belleair Bluffs to Pizza Hut of St. Petersburg Inc. The lease was on a long-term basis. Negotiations were under way to sell Ray Gassner's Maximo Marina, according to Harold Markell, co-owner with the late Ray Gassner.

Markell said no deal had yet I been closed on the facility, which has 235 wet and dry slips, but said he was nego-; tiating with several potential buyers. General Finance Corp. announced the opening of a new office in Largo. The branch is "Moybt it's timt dropped our. Iin of five-inch spiked heels." Mutual Fund Lobbyists Work Against Benefactors 7s.

By JACK ANDERSON I A Gulf Front condominium residence of incomparable elegance. ders, have gone almost entirely unreported by the mutual fund magnates. A rare exception is Fidelity Bond-Debenture Fund which tells of the Institute dues in a tiny notice on page seven of a prospectus. BUT EVEN Fidelity Bond-Debenture doesn't explain that the Institute represents the fat cat financiers of mutual funds, not the cumulative millions whose $50-billion in investments make the whole industry possible. Note: Some Institute lobbying, particularly on tax treatment of funds, helps the industry, but does have carryover benefits for shareholders, as welL The Institute's hard-working president, Robert Augenblick, contends even high sales charges are justifiable.

He says the high charges keep salesmen pushing funds, adding to and strengthening the funds a view contested by the SEC and consumer advocates. WASHINGTON Without even knowing it, millions of small investors in mutual funds have been bankrolling the very lobby that works so skillfully against them on Capitol HillL The lobby is the Investment Company Institute, which operates out of a lavish red-and-black carpeted suite in downtown Washington. It collects J1.5-million dues a year from mutual funds, fund advisers and underwriters. THE INSTITUTE represents the well-to-do advisers and underwriters with audacious zeal. But the five million shareholders who make up the Institute's more than 300 mutual members get a pasting.

When the Securities and Exchange Commission (SEC) proposed frail reforms in the mutual fund industry to benefit shareholders, for example, Suncoast the Instirste lobbyists sallied to Capitol Hill. They succeeded in weakening the SEC measures still further, even thwarting an SEC effort to reduce exorbitant sales charges on the funds to 5 per cent. THE INSTITUTE also pushed many of the proposals of Rep. W. S.

Stuckey, a candy millionaire whose retrograde bill handed a pecan roll to the fund operators, leaving only the wrapper to the millions of shareholders. Stuckey's bill was so outrageous that the SEC said it would "cut back the protections now offered by the Investment Company Act of 1340" and might totally undermine shareholder faith in mutual funds. All these activities, paid for in large part by the sharehol Luxurious apartment and penthouse suites Business prices from $38,000 to 100,000 Scene EES Model apartment, designed by Mardi Deranian AID, open daily at 4950 Gulf St. Pete Beach Telephone 363-5961 Adjacent to The Happy Dolphin Inn Pert tMm. lac.

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