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Show y yy -- rr' The Salt Lake Tribune. Sunday, June 29, - - ii'"'iii ii yiih rn t) 1980 - hi-i'- t ;f -y Business Portrait: Banker Likes Country Boy Ties i--.. ?& : . ', Bankers Association - salary did he expect? Mr. Canfield asked for a salary schedule of all officers, then picked the middle figure. I didnt want to come on as pnma donna. I wanted to prove myself to those guys. Resources Increase In the years since, by expansion and acquisition (Farmers State Bank and American National Bank) Tracy-Collin- s has sextupled its resources to more than $200 million. Yes, they were overextended for a comperiod in the pared to the essentially conservative posture of other Utah banks. But, remember, those were quality loans. And since, Tracy has retreated from loan ratios at 75 percent of deposits to now about 63 to 65 percent. Were aggressive, but conservative. Mways in the background are the dictums of his father: Safety and Soundness! What are the issues facing the bankers now? bought a farm at Marsing, Idaho. Chuck bought the adjacent farm and for three years was a farmer. I loved it, but you are terribly vulnerable to prices and weather. Works With Dad Later, the two started the Bank of Commerce in Magna with the elder Canfield as president, and the son as vice president-manage- and r cashier. The Bank of Commerce was traumatized by the 1967-6- 8 strike of Kennecott Corp. miners, mill and smelter workers, many of whom reside in Magna. During that period, there were delinquencies on half of the banks loans. In 1970, the Canfields sold the bank to Zions First National Bank. Considers Opportunities For the first time in many years, Charles Canfield was jobless. He considered new opportunities in both Salt Lake City and Seattle, than ran into an old friend, John Dahlstrom, a g a career in the Dan Dor f man rifcj'A - profit-sharin- Why so What about the insiders who claim theyre selling for tax purposes? A Lame Excuse "Almost everybody says they sold for tax considerations . . . and we find its a lame excuse, says Wysong. It generally means that the average situation at the company isnt that good . . . In his money management role, Wysong has far outdistanced the market. He credits this to a strict policy in which he will only purchase stocks that have been bought by seven or more insiders in a given period. moment, the figure has recently risen to 44 percent, which, says Wysong, is a red flag. Abo e 50 percent is bearish and thats where Wysong thinks specialist shorting will be in about two to three weeks. Wysong has also taken a look at the publics short sales in Big Board issues. And here again, the or public reading is bleak. Normally, shorting accounts for about 20 percent of all short sales on the Big Board. In early May, that 20 percent figure was intact. Now, says Wysong. its only 14.6 percent pointing to an overly bullish market sentiment by the wrong kind of investor. Insiders Doing Little Interestingly, the principal function of Wysongs newsletter monitoring the buying and selling activities of corporate insiders isnt signaling any market decline, or gain, for that matter. Insiders are doing very little buying or selling, he finds. However, Wysong tells me that a spate of insider selling sales by five or more insiders in a usually signals bad news. And its the period shares of these companies that are frequently most vulnerable. At present, there are 18 such securities that investors ought to be worried about, says Wysong. Their names, plus the number of insiders who have sold within the past six months, follow: bearish? 2 Important Indicators Because two of his most important indicators clearly point up impending market weakness, Wysong explained in a lengthy phone chat. They are the amount of public participation in put options and increased short selling by New York Stock Exchange specialists. Essentially, Wysong is suggesting that the "dumb the public is getting too optimistic, on money smart the the other hand, the specialists are turning increasingly negative on the money market. On the public side, Wysong is bothered by the low level of participation in put options. (A put gives you the right to sell 100 shares of a companys stock at a specified price within a specified period of time). At present, the public is sinking 24 cents into puts for every dollar its putting into call options (which gives you the right to buy 100 shares of a companys stock). its very And its Wysongs conclusion that dangerous for the market when puts fall below the 30 cent figure. Cites an Example He notes, for example, that back in early March when the DJI struck a low of around 760, the public was in an overwhelming show of bearishness buying $2.28 worth of puts for every $1 of calls. "The public is often right, but not in extremes . says and thats what were seeing right now, Merck (18) SmithKline (12) American Medical Inti. General Motors (36) Ixvi Strauss (8) th We make money on about three out of four of them and usually keep the stock for about six months because it generally begins deteriorating after that, says Wysong. Obviously, hes doing something right. Since April of 1973, when he first began managing money, Wysong, through this past May 31, has shown an increase of just a shade under 95 percent. Thats nearly triple the gain of about 38 percent in the same k index. period for Standard & Poor's 500-stoc- Last year, he was up 19V4 percent, vs. a little over rise in the DJI. This year, hes ahead around 8 percent, vs. about a 1 percent gain for the DJI. (Copyright) a 4 percent LnJC0J (17) Reuters News Agency WASHINGTON The Justice Department has dropped plans to file an antitrust suit to block General Electrics plan to acquire the medical diagnostic scanner business of Britains Thom EMI Ltd. - The department issued a statement saying a change in the acquisition plan to exclude all of Thom EMIs U.S. assets meant it would no longer seek to block the takeover. Salt Lake City centers around the new Hotel Utah Our thanks to the following corporations and associations who met or held functions at I lotel Utah during the month of May. Under the original agreement, GE would have acquired some of Thom EMIs U.S. and foreign assets relating to the medical Arthroscopic Surgery Seminar American Gas Association National Transmission Conference Kennecott Copper Corporation Association of American Railroads Earthquake Engineers Research Institute National Health Federation Salt Lake Board of Realtors American College Testing Assn. Associated Food Stores National Retail I lardware Assn. Pacific Sou ill west Airlines Annual Stockholders Meeting Preferred I lotels Association McBcc Systems AMTEC Industries International Magnesium Assn. Center For Independent Using American Bar Association Legal Education Seminar Utah Chevrolet Dealers Assn. Sunset Magazine Mountain Bell Assn. of Operating Room Nurses Eastman Kodak Mountain Fuel Supply Company Composers Guild First Security Corporation Rockwell International I ngersoll Rand Corporation Society of Real Estate Appraisers Bonnes ille International Corporation I Jectrical Systems, Inc. Coca Cola Corporation .Vmerican Society of I Iospital Pharmacists Digestise Disease W eek Annual Consention UCLA Department of Medicine Society of Gastroenterology E. F. Hutton Company Kraft Corporation Equitable Ufe Insurance Company Eimco Mining and Machinery Company Pullman Corporation I Idskin and Sells National Corjxiralion ,rthur Andersen C lompany Esans & Sutherland Computer Corp. diagnostic equipment, known CAT scanners. as cicosn Conoco Oil (11) Coming Glass Works (ID Desks Credenzas Bookcases Tables Digital Equipment (10) General Electric (19) Georgia Pacific (12) McDonnell Douglas (29) NCR (10) Procter & Gamble Tandy Corp. Custom-buil- (10) office furniture from t the finest materials. (8) Xerox (18) Eastern Air Lines (8) BUY DIRECT FROM THE FACTORY AND SAVE . ONE-THIR- D THE RETAIL PRICE. 510 W. 1st So. O Phone Wysong. Onthe other hand, the Big Board specialist (who makes markets in NYSE securities) is an excellent market barometer, said Wysong And when his short sales for his own account run 40 percent, or less, of all Big Board shorting, its a favorable sign. At the 531-061- 7 FOR THE YOUNG AT HEART., For Sale or Lease Industrial Site 9.73 Acres now featuring throe specialty equipped Eldoradot, designed for the owner desiring handling and Carleson 44,405 (tearing wheal ond larger Cadillac's now touring tuipantian, tires et thoe apart in the handling deportment. When coupled with fldarados ctandard equipment package, theie hna outamobile after the bast of both worldt. In Stop In at 1 070 So. Main to allow we to (how you theie ond other (election space laafHon-eovaro- plus 1 1 ,888 sq. ft. of air conditioned office space lor cited 1624 South Pioneer Road Cadillac comfort! with sq. ft. warehouse & shop our 50-ca- r d Semi-Conduct- inventory. (2200 West) that great CM feeling with genuine CM parts Bob Murray or Bruce Larson or GM QUALITY Keep Shown by Appointment only al Acquisition UNSURPASSED BEAUTY AND QUALITY Boeing (10) Dow Chemical (10) Branch banking is going to have to be beefed up with qualified management and stringent criteria for operations. While banks are required to insure their deposits with the Federal Deposit Insurance Corp., they cannot rely on that Insurance ("It represents only one percent of all deposits") as a substitute for safety and soundness, he says. Likes Magna Mr. Canfield finds Magna to his liking. I wanted my kids to be with kids who know how to work. His widowed mother resides two blocks away. He is president of the Magna Stake of the Church of Jesus Christ of Latter-da- y Saints. In 1958, he married the former Francis Dain of Fullerton, Calif., whom he met at a church social when he was in Marine training at Camp Pendleton. Their son Charles, 21, just back from a church mission in the student at Yucatan, is a Brigham Young University. Twins, Richard and Anne, 18, attend Cyprus High School. Lisa, 14, is in junior high school. U.S. Drops Plan to Sue Over GE Market Forecast? This Experts Bearish Chicago Tribune Source If the stock markets ongoing strength is beginning to turn you from skeptic into a believer, and v ou re ready to take a fling, a strong word of caution : A veteran investment ad- lser whos been right about 80 percent of the time over the past 10 years in calling market turns, is telling his nearly 1,000 clients that a big selloff is coming within the next two to three weeks, one thatll probably knock down the Dow Jones Industrials about 100 points. Our bear is Perry Wysong, the publisher of the Mr- Dorfman Consensus of Insiders, a week- of Fort out ly market letter Lauderdale, Fla., that dates back to 1962. Because of his deep market concerns, Wysong, w ho manages about $30 million worth of pension and g funds, has quickly swung in recent weeks from over a 70 percent invested position in equities to about 30 percent. Thats a speedy withdrawal of over $12 million from the equity market. A lot of institutions the savings and loans, credit unions and thrifts are seeking to provide services normally associated with banking like checking accounts and investment services, he says. Dont Mind Competition The banks dont mind the competition as long as the competing institutions have to meet the same standards of soundness, safety and reserves as the banks and are subject to like regulation, he said. Another threat, he said, is interstate banking by federal fiat when it should be practiced only by recip-roca- l agreements between the states. ns cameras. He considered Salt Lake City attorney. Mr. Dahlstrom was part of a trio the others were Brooke Grant and who were acquirGilbert Shelton Bank & Trust Co. ing Tracy-Collin- s Mr. Canfield was introduced to Mr. Shelton. There was ad imMr. mediate affinity. Missouri-bom- , Shelton was a fellow "country boy. He had been a also Marine Corps pilot. And like Mr. Canfield, he liked hunting and fishing. He was offered a job. How much 7 didn't want to come on as a prima donna. I wanttd to prove myself to those guys," says Tracy-Colliexecutive Charles II. Canfield. Buy Banks The two ventured into the acquisition and development of several banks which they would later sell at handsome profit. One includes the Bank of Las Vegas. Chuck was graduated from the University of Idaho at Moscow in 1957 with a degree in business and accountimg. A naval ROTC student, he was commissioned as a second lieutenant in the Marines. A platoon commander in 1958, he led his troops ashore in the Lebanon the last successful Amerilanding can military venture. There were no gunfire or mortar only the click of tourist explosions sees state rights as upcoming issue in 1980 banking. president Charles R. Canfield as a reservist Marines, and later was promoted to rank of major. However, by that time, his father had opened yet another bank the and Spokane National Bank invited Chuck to come aboard as cashier. There followed other bank openings or acquisitions. By the time the elder Canfield died, he had either started or acquired and sold 58 banks. In the 19G0s, the elder Canfield In a profession gisen to pomposiChink Canfield ty, Charles R comes off as an "Ah. shucks" country hoy. He is. in fact, a "country boy, raised m rural Idaho, who has farmed, woiked in country hanks and disdained the respectability of "East Bench" li ing for residency m Magna Now ice chairman and executive Bank vice president of Tracy-Collin- s &. Trust Co., Salt Uke City, he has just succeeded fellow "country boy Eldon W. Schmutz, Cedar City, as president of the Utah Bankers Association. Mr. Canfield was bom Nov. 21, 1934, to C.I. and Leona Evans Canfield and raised in Moscow, Idaho. The senior Canfield was a banker and associate of Walter Cosgnff, a legendary and colorful Salt Lake City banker who was president of Continental Bank & Trust Co. For meeting planning SBMCS BASTS assistance contact: fjENEBAL MOTTOS BAHTS DIVISION Jerry Mika. Director of Sales 331-llK- Utah System Builders 1 355-581- 5 070 South Main Th Professional that ar H Phone 521 4444 -- nvr knowingly undrscld. ITtSBJI."1'!- - Nk jftA jtA 4 4 A s mm aa m aa-- A4 4 A A AAA jfcA JkA AAA AA4 |
