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Show Jpl OIL ft APRIL 6, 1970 rniHIHG JOURNAL Thus, if someone were to put $1,000 into a savings account paying 4 interest, he would have $2,000 18 years later. If the bank raised the interest rate to the goal would be reached in a little over 14 years. No would-b- e millionaire, however, thinks in terms of 4 or If savings can't earn 15 or better, he is not interested in the investment. And 15 hasn't been hard to come by in recent in shares, not fixed interest savings or time years deposits. Over the last 10 years, for instance, the 25 Milling a 5, ofs mu n it - RICHARD BLACKBURN 5. mutual funds, with capital gains reinvested, have doubled their liquidating value from two times to more than four times, according to Fundscope Magazine. This is roughly equivalent to compound interest rates of 14 to 33 per cent. The average fund has doubled more than' one and a half times, a compound interest rate of 11 per cent or so. different product now top-performi- ng Dear Mr. Blackburn: Now that the Postal Employees strike has shown the of the stock market I was wondering if there wasn't even a greater danger from some kind of union getting into the back offices of brokerage firms to cripple the industry from within. I would like to see what you think about that. Sincerely, Charles Crisp. vulnerability t Dear Mr. Crisp: While there is a possibility of a bade office employees union, it is not in the near future. To the best of my knowledge there is no - present union effort to get the derical help organized. However, reports of unions forming with stock salesmen as members keep coming up. Normally one wouldn't expect a well-pai- d salesman to join a union but as the big firms start cutting into the pocketbook of the salesmen, the employees run for help. Recently employees of Goodbody, Homblower & Weeks, Dempsey-Tegeland Reynolds & Co. formed a group that won N.L.R.B. recognition. Salesmen in several other cities, induding Chicago and New York, recently have been complaining about cuts in their share of brokerage house commissions. The complaints are loud and dear now as the bear market has reduced trading to a historic low and customers are slow to invest money. The brokerage firms are trying to compensate by raising the minimum commission. Some are charging as high as $20.00 regardless of the size of the order. Even at that many firms lose money. They must have the big investor to keep the big firms profitable. This, of course, drives the small person either out of the game or to the smaller brokerage firms. A fund that doubles every 5 years means a little more than $30,000 invested at age 40 would become $1 million by age 60. A fund that doubles twice as fast could be started five years later and would require only one-tent- h as much at the start. But remember that all of this is based on past history. No one knows what the next 10 to 20 years may hold. Could be better could be worse. Dear Mr. Trager: - New promoters have taken over El Dorado and I happen to know one of them very well. He tells me that they have big plans to do big things. Of course 1 just listen. They have their work cut out for them. First problem is to get all the old El Dorado stock into the hands of friendly investors. Then get it bade to the company so that new certificates with the new name can be issued. There is such a mess with the transfer agents right now that many brokerage firms refuse to handle trades in the stock until the company can dean up its affairs. Write me again in 60 days and I hope I can report that all is THOUGHT FOR THE WEEK: Its not how much you earn that's important; its how much you save that counts. Richard Blackburn, Las Vegas SUN K0. Box 4275, Las Vegas, Nev. 89106 t: : I', g if ft f - interest. Crown Internationals Alvin, Texas Rice Processing Company, located about 20 miles south of Houston, has increased operations to round-the-cloc- a three shift, operation, k according to reports from the company. the company the rice business does shareholders, notes, not create any degree of routine. It is, however, a necessary ingredient for the company's planned expansion since it provides a stable steady cash flow. The company reports that its k operation was made possible by new rice buying funds obtained by the company. PASSPORTAIR Provided that adequate rice buying money is available continuously, the Alvin mill complex should generate annual income of over $700,000 before taxes, according to company officers. TRAVEL CLUB Departing Salt Lake City Flying Direct In Our I Own Club Airliner To Many Exciting Places This Year The rice worlds largest 115.00 11100 21.50 PUERTO VALLAITA 11100 SUN UN APRIL APRIL APRIL MAY MAY A Jl JUNE VANCOUVER 5 THIS SUMMER t0E $ ALL HOTEL fc GROUND TRANSFERS ARRANGED IF DESIRED. NEXT VACATION GO BY AIR NAME ZIP....... ADDRESS PHONE EVliYWMARI Crown International has recently entered into a a organization. SOUNDS HARD TO BELIEVE ON YOUR CLUB. WK FLY Since management feels that the rice market will hold steady for several years, the company is proceeding with its plans to install the additional necessary machinery at the Alvin plant to double the present milling capacity to meet this demand from the prime purchaser, the company told shareholders in a recent letter. Development Corporation, PLEASE SEND ME INFO. 2262 present output when the mill can produce that amount, the company has announced. private Washington State REDUCED RATES FOR CHILDREN AIR BOX exporting companies. The exporter has indicated that it will purchase, at the prevailing market price, the mill's entire output during 1970. management contract which includes a stock purchase with Cortez agreement HAVE MORE TIME THERE rA SPORT rice The exporter has further indicated a willingness to purchase up to double the TRIP JAMAICA MEXICO CITY VECAS SAN FI AN. mills entire production output of processed rice is sold directly to one of the ROUND Dear Sir: . to do with minerals. round-the-cloc- Dear Mr. Blackburn: How many millionaires are made by the stock market? How can I do it? Name withheld on request. r Corporation, owns a mill near Houston, Texas, but the mill has nothing extremely have a question, write: yaran Becoming a millionaire isn't what it used to be. The Federal Reserve Board said there were 40,000 in 1958 and 100,000 seven years later. The inflation of the last three years may have doubled or tripled the number. Nevertheless, a senior officer of one of New York's largest banks startled his hearers the other day when he announced quite casually, and without the slightest hint of doubt, that all young officers joining the institution today would be millionaires by the time they retired. His calculation didn't involve any profound crystal gazing. It involved the power of compound interest and the recent record of heads-u- p investment performance, One of the most frequently cited financial rules of thum is the Rule of 72. This says that money will double in the number of years that 72 is divided by the rate of compound Navajo Hills Mining excitement or glamour due to the fact that rice is a basic food industry and by its very nature, "IT'S YOUR MONEY" appears weekly in the Rocky Mountain Oil & Mining Journal. If you well. You raise a question many would like to see answered. Im sorri I have no pat answer, but the following artide appeared in the New York Times and has particular interest to many of our readers who are using the stock market as a way to become millionaires. You might want to clip it out for future reference. at one time the International, . Crown To many of our er Dear Mr. Blackburn: I have owned 1,000 shares of El Dorado Mining for many years. It was quoted 3 cents or 4 cents in the Rocky Mountain Oil & Mining Journal Then, all of a sudden, the quote appeared as follows: Apollo (El Dorado). 25. I have been trying to find out what happened but have had no luck. Perhaps you know the answer. Thank you very much. Jack Trager, Brooklyn, N. Y. Calif. HAYWARD, PH. 359-860- .: Under terms of the contract, Crown International will provide services to Cortez in conjunction with a major land development project in the Pacific. Crown International, with its main offices in Hayward, Calif., has branch offices in Alvin Texas, and Las Vegas, Nevada. It was founded in 1955. |