Medford mail tribune., June 28, 1962, Image 16

g g THURSDAY. JUNE 28. 1962
One of Country's Last
(Editor's nott: Tim wu
whan counlleti confidence
man roamed ihe land, ihair
"take" from gullible tuck
ers largely limited only by
Ihair own periuaiiveneti
and ingenuity. But tha
FBI. the poital impaetor
111
'PROFILE' OF THE NEW STOCKHOLDER
When I bought my first few shares of stock, I was still
in my teens. That was a long time ago, and in my years
In the stock market since, I've been both wiped and whip
sawed, I've made big money and also lost it, I've sold some
stocks with ideal timing, on others taken sickening round
trins" fmeanine I've ridden them way up, then ridden them
rinhi Hmim to mv ourchase prices and below).
Overall. I'm wav ahead, and
emotionally as well as intellectually such basic Wall Street
ciiirfes as: Don't try for the last
and bears, but not for pigs and hogs; know your aim in in
valine and never lose sight of it; ignore the hot lips and
buy values, but if you're proved wrong, cut your losses
short; never freeze to a point of view; you havp to be wrong
to be right (translation, buy
thp rrnwdl.
As much as an informed
nrn. and thus, when a slock
tude we've seen in 1962 occurs
gains of the past four years, I
against the background or previous slumps, ne pnuosiijimcHi
about "giving some of it back."
But what about the 4,500,000 men and women who have
entered the stock market for the first time since 19S9 and
who. unless they have been extraordinarily nimble and
lucky, are now either sitting with paper losses or already
have taken a licking? How might these millions and the
millions more directly affected as members of their fam
ilies react, and what might this mean to the economy of
the United States?
A study of the "profile" of the new Investor since 1951),
released this week as part o( the New York Stock Exchange's
fourth census of the shareholder population of the U.S. in
dicates the answers to these questions might he disturbing.
Here are the dominant characteristics of these new investors
and their possible Implications.
Finding: The average annual household income of the new
stockholder is $8,600. Most significantly, 10 per cent of
them are in the two highest income brackets-$15,000-$25,000
and $25,000-and-over, compared with 5 per cent in these in
come groups who were classified as new shareholders in
1959. The percentage of new shareholders in the lowest in
come brackets, who would be mostly retired people-is
nominal.
Implication! Many of these new shareholders are in
brackets where they have discretion over how they spend
and how much. If they are disturbed, they can decide to
draw back on spending for big-ticket items particularly. It
they do so, they could put a drag on our economy at a lime
when what we need is precisely the opposile.
Finding! The average age
against an average age for
tion of 48. More than half
35 and 54.
Implication! These are the ages when family responsibili
ties are heavy and when a nestegg in slocks has a pressing
purpose - such as education of the children. A blow in the
pockctbook could seriously hurt these families. When a
youngster loses - as I did at the ctnrt - it's different. They
have years in which to make it up.
Finding! A majnrity-55 per cent-of the new shareholders
are women and a large percentage of them received their
first shares through inheritance.
Implication! These women well may depend on these
nesteggs for support-and if they are not reassured about
the economy and the market's solidity, they might actively
Hart pinching pennies.
Findings While four out of five of new shareholders since
1959 are high school graduates, only 25 per cent are college
graduates. Among new shareowners, the education level ac
tually has been falling.
Implication! Many of these are economic illiterates, not
capable of grasping economic fundamentals, too easily mis
led into believing much of the nonsense being spread about
the causes for the market's break, and thus candidates for
the "lack of confidence" camp.
Pros don't worry about pros. When a pro gets taken to
the cleaners, he sets his chin, starts trying to get back and
rebuild. The neophytes are the ones who bother me and
they should be bothering leaders of government, business
and lnhnr, too.
Patrolman Assigned
To Detective Division
Two changes were made In i
Ihe Medford police depart
ment personnel this wcrk, ac- I
cording to Chief of Police
Charles P. Champlin.
Robert Allen, who has been
with the detective division for
the past year, requested to be
returned to patrol duty. As
signed lo the detective divi
sion has been Milton Hanson,
who was transferred from pa
trol duty. He has been with
the department since January,
1955.
SOME ADVICE
Tampa, Fla. - lOT - The fol
lowing Independence Day
safety motto is displayed in
the window of a local liquor I
store: "Be safe on the 4th -1
Stay home with a fifth.'
I
rt i I i- IT' J
MARK V AUTO Al
I . L- -A ! , jut W l
and tha SEC inveitigator.
aided by modern Uwi and
police methode, proved the
undoing of most of tham.
One oi the last it Patrick
H. Lennon, tha subject of
the following dispatch.
II'IIIII'IIIIIIIIIIH
Your Money's
Worth
By SYLVIA PORTER
Copyright, Hall Syndicate, Inc.
in the meantime I've learned
elgnin mere s room tor duus
before the crowd, sell nctore
outsider can be, I think I'm a
market crackup of. the magni
and erases most of the stock
can weigh what's happening
of the new stockholder Is 39
the entire shareholder popula
of the neopnytes are neiwccn
II CAN
TO THE BEST OF US
Fveryone, at somp lime rr
other, runs little "hort"
between paytUv,. Rather
than ik friends or rela
tives, tell us . . . tonh
Hentially. 0"P-visit monry
rvic.
IOCAL QAN
335 . JACKSON IIVD.
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-
By JOHN G. WARNER
Washington-tUPD- Patrick H.
Lennon was many things to
many people, most of whom
never laid eyes on him.
To Dr. Helen Reid, 61, a
university administrator, he
was the personable Harry
Hicks Hornblower, professor
emeritus of geology.
To an industrialist in Ro
chester, N.Y., he was good old
Harry Hoffman, a boy who
could spot a sharp angle
To untold others, he's a
man who worked hard on a
deal to make them money,
but it never did come
through.
To U.S. postal inspectors,
he's Packy Lennon, a one
eyed wizard they call the last
of the great confidence men.
Packy, 61, is passing time
now in a Washington jail,
awaiting trial for the latest of
his schemes that began 30
years ago.
Long ago. before the 1929
market crash, Patrick Lennon
was the boy wonder of Wall
Street, perhaps the youngest
man ever to have a seat on
the New York Stock Ex
change. He was much admired. He
had pulled himself up from
the Bowery, where he ped
dled newspapers to Diamond
Jim Brady and Lillian Rus
sell, to become a financial
whiz who lived In the best
hotels and raced his own
horses at Ihe Belmont Track.
Gets in Trouble
When the market crashed,
Lennon got in trouble. A
newspaper ran a series of ex
poses on some of the "broiler
room" stock salesmen whose
sharp practices had left their
customers flat. Lennon was
one of them.
He joined some renegade
stock salesmen who peddled
their stock over the tele
phone, and became so adept at
charming money out of in
vestors without ever seeing
them that his friends called
him "Packy," because of the
way he rould "pack in the
moochers."
But Packy soon felt there
were more fertile fields than
selling stock, and started sell
ing his own personality. He
gol caught time and again,
and served years in prison'
But his successes were fan
tastic. One of the reasons he took
to working over the telephone
was that he had to have his
left eye removed. The sur
geon who removed it charged
Pncky $1,900 for the opera
tion. Packy promptly swin
dled him nut of about $5,000.
Packy lived high. He didn't
just make a big strike and
live on it until the money ran
out. He kept many irons in
the fire, and II enabled him to
live high in midtown New
York, London and Havana.
But he apparently never
fleeced anyone but domestic
marks.
Never Forgets
His biggest score was in
1951. Packy never forgot a
name. Reading a newspaper
one day, he came across the
mime of an industrial mag
nate in Rochester that rang a
bell.
Back In Ihe 1920s, Packy
had sold some stock to Ihe in
dustrialist in a semi-legiti
mate speculative venture. The
firm involved, a wireless
telegraphy outfit, fell flat and
the industrialist lost over
$100,000. It gave Packy an
idea.
At The
wo notrnt
Shop at Scars and Save
Sntifaclioii (itiaiaiitcril or tutr Monrv Hack
Great
He got a friend to go to the
industrialist with a copy of a
will purporting to be that of
an old inventor who had
worked for the wireless com
pany. It was a fake, of course.
In the will, the inventor
said he had spent many happy
years with the firm and felt
bad about it having gone
broke. So, it said, he was
going to will some patents to
the three largest investors.
One of these, of course, was
the industrialist. The second
was Harry Hoffman. There
didn't have to be a third.
Packy Phones
While the industrialist was
mulling over the will, Packy
phoned, identified himself as
Harry Hoffman, and said he
had been checking on the pat
ents that had been willed to
them.
Lo and behold, Hoffman re
ported, the movie industry
had been infringing on these
patents all these years. He
figured they could force Hol
lywood to settle for millions
of dollars.
But, he said, all the little
investors who had kept their
stock would get excited when
they heard about it and de
mand a share. So what they
had better do, Hoffman sug
gested, was go around quietly
and buy up all the remaining
stock.
That seemed, to the indus
trialist, to be a pretty sharp
idea, He put up some money
and Hoffman ventured into
the hinterlands to find the
stockholders. He found more
stockholders than he knew
what lo do with, and every
so often he had to ask the in
dustrialist to pony up some
more cash to rake in more
shares.
More and More
The months went by, Hoff
man kept flushing stockhold
ers and calling for more
money, and finally the indus
trialist found that he was out
$423,000. Musing over the odd
fact that he had never actu
ally seen Hoffman, he called
authorities.
Packy spent a few years
in jail for that one. But while
he was behind bars, investiga
tors turned up four or five
more pigeons who had donat
ed money lo another scheme,
involving oil leases. They
hadn't heard from Packy in
a long time, but they weren't
worried.
Lennon's fertile imagina
tion would not allow him to
skin a sucker in a simple way.
His schemes were all as elab
orate as the one that bilked
the Rochester industrialist,
but most of them involved
oil leases.
His last scheme involved
posing as three different per
sons. He somehow happened
lo find out thai the 61-year-old
Dr. Reid, of George Wash
ington University, was inter
ested in a particular religious
charity.
Poiet As Professor
Packy called the noted ed
ucator and told her he was
Mr. Hornblower, professor
emeritus at Kentucky Univer
sity. He didn't teach classes,
he added, and therefore
couldn't be reached through
the university.
Actually, Parky had no
more than a New York pub
lic school education.
But it turned out that hp,
loo, was interested in that re
ligious charity, and had hit
upon a way to further it. He
and some other donors had
come across some oil leases I
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Confidence Men Languishing
in New Mexico that could be
had for a song.
They planned to buy the
leases and turn them into a
tidy $1 million profit for the
charity. Dr. Reid thought that
was dandy and wanted to get
in on it, too.
Prof. Hornblower was very
grateful. But he told her that
the other donors wished to
remain anonymous and make
This Week's
By HIAWATHA ESTES
For such a small and mod
estly priced home, this design
contains all the luxuries of
modern planning and zoning.
From the covered front
landing, a door leads to the
entry from which there is
direct access to all sections of
the house. A guest closet opens
to the entry while a wide lin
en closet is in the hall.
The bedroom wing is com
pletely isolated from the liv
ing and work areas of the
house. Both bedrooms have
cross ventilation while high
windows on the side wall of
fer privacy aund facilitate the
arranging of furniture. Eleven
feel of wardrobe separate the
master bedroom from the liv
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wardrobe separate the two
bedrooms.
Pullman Lavatory '
The bath features a pull
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size shower and a semi-con
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SEARS
the big donation a surprise,
so Dr. Reid should keep it
a secret.
'Agent' Collect!
Time went by, and more
and more leases had to be
bought to round out the hold
ings. Every so often, Prof.
Hornblower would send
around his agent, Charles
Chalk, to pick up Dr. Reid's
cash.
Ranch and Modern Home
cealed water-closet.
The living room and dining
area have been combined into
one huge room with no off
sets. A handsome fireplace is
located at one end of the
room. Sliding glass doors open
to the rear patio where out
door living can be enjoyed all
year around.
There is a lesson in econo
my to be learned here that ap
plies to ail homes but espe
cially small homes. A well
planned and accessible out
door living space is one of the
least expensive ways lo en
large a house.
Reached from Entry
The kitchen' at the front of
the house can be reached from
the entry, dining area and
service. An extra wide picture
window in the spacious nook
area looks out over a planting
area to the street. A broom
closet, 'pantry and oven have
been located together since
thev all project out from the
wall the same distance. Doors
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Dr. Reid was unimpressed
by Chalk, a rather seedy
looking, droopy-eyed fellow,
and she told the professor
about it over the telephone.
The professor must have had
a good laugh at that, because
not only was Packy the pro
fessor, he was Charles Chalk,
too.
He also was Judge Joseph
from the service and dining
areas have been arranged so
there is no necessity of less
efficient corner cabinets. The
work-saving surfaces and the
modern built-in, do-it-them-selves
appliances nearly give
you a full-time staff.
The laundry facilities are in
the service. A half-bath is jusl
off the service. From the serv
ice, there are doors leading to
the outside and lo the over
sized double garage.
High louver windows plus
the glass filled gable over the
garage accent the modern con
temporary exlerior of this dis
tinctive two-bedroom home.
Complete working drawings for
thin plan can be purchased at a
cost of $7.50 for Ihe first set and
$5 for each additional set when
ordered at the same time. This
plan will be available at these
prices until Oct. 24. Please allow
two or three weeks for delivery.
If the above home docs not meet
with your approval, a new home
plan bonk. Ranch and Modern
Homes, can he purchased for 52.
Send nil orders for either plans
or books to: Hiawatha Kstfis. post
office box -404-T. Northrldge. Calif,
OWN IB ACM YAMD...
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Murphy of New York, to
whom Dr. Reid occasionally
sent checks.
Dr. Reid was very anxious
to meet the professor, and
often tljey made appointments
to see each other, but for one
reason or another the pro
fessor always had to beg off.
By the time she was in to
the tune of $36,000 Dr. Reid
called in the authorities. They
figured immediately that
Packy was their boy, and ar
rested him promptly.
Can't Raise Bond
He's in jail now, because
his money's a little low and
he can't meet the $10,000
bond. He's not getting any
younger, either, and his high
living, hard-drinking life
shows harshly on his face.
If Packy goes baca. to fed
eral prison for this one, it
County Road Bid
Among 33 Opened
At Salem
Salem-ltlPD-Rogers Construe
tion Co., Portland, was low
bidder Wednesday at $1,395,
215 for the Tygh Grade Sum-mit-Tygh
Vallpy section of
the The Dalles-California
Highway 12 miles south of
Dufur in Wasco county.
It includes 5.87 miles of
grading, 5.61 miles of stone
base and 5.88 miles of oiling
and structures.
The bid was one of 33 open
ed by the Oregon Highway
Commission at which letting
totaled $13.5 million. Largest
bid was some $17.8 million
for Astoria - Megler bridge
piers.
Other projects included, by
county:
Baker: Pine Creek rd.-Poca-hnntas
section, county route
506; Babler Bros., Portland,
$18,380.
Baker: Bridge over Burnt
river at Durkee; Wilham
Bros., Bakpr, $37,548.
Curry: White Elephant
bridge over Floras creek;
Baugham & Son, Coos Bay,
$43,662.
Clackamas: Morris bridge
over Butte creek on Kent
county road; T e e p I e s &
Thatcher, Portland, $26,905.
Clackamas and Marion:
Monitor bridge over Butte
creek, Market county road;
Walder & Kenworthy, Port
land, $45,150.
Clackamas and Marion:
Ross bridge over Butle creek,
Ml. Angel - Marquam county
road; R. H. Willsey, Salem,
$44,246.
Coos: Salmon Creek sec
tion, Rock Creek county road;
Selmar A. Hulchins, Suther
lin. $38,546.
Coos: 1 0lh st.-7lh st. section,
Empire-Coos Bay highway;
Madson & Stokes, Roscburg,
$8,890.
Coos: Latrine at Cape Ara
eo State park; Donald W.
Thompson, North Bend, $11,
770. Curry: Pave, grade part of
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in Jai
may be his last job. But may
be it won't be too bad, be
cause Packy's got a lot of
friends in stir.
In one federal prison where)
he resided for a time, he be
came so popular that the in
mates had him organize thn
Christmas shows every year.
It went over so big that after
he was paroled he came back
three consecutive years to put
on the Christmas pageant for
the boys he left behind.
Postal inspectors, reminis
cing about the time Packy
flim-flammed a man on a
deal to tear up an abandoned
railway line and sell the steel,
sounded like they might miss
him.
"He's a wonderful fellow
lo sit over a bar with," they
said. "He's got a world of
stories."
Meeting
Center si. in Brookings: Peli
can Bay Construction, Smith
River, Calif., $25,222.
Deschutes: Latrine at Turn
alo State park; E. E. Stein
light, Bend, $8,500.
Douglas: Yoncalla interchange-Rice
Hill section. Pa
cific highway; S. A. Hulchins,
Sutherlin, $865,235.
Jackson: Central Point -Ros
Lane section, route 274; Pelrr
Kiewit sons, Medford, $148,
773. Jefferson: Cove section,
route 660; Carl M. Halvorson,
Portland, $107,530.
Lane: Willamette River-Co-burg
road section, Eugene
Springfield highway: S. A.
Hutchins, Sutherlin, $554,015.
Lane: Pave, grade part of
Mill st. in Creswell; Widish
Construction, Eugene, $15,
370. Lane: Camas Swale hridgo
extensions, Pacific Highway;
Hamilton & Thorns, Eugene,
$121,950.
Lane: Eugene traffic sig
nals on Railroad blvd. at Van
Buren st., Junction City-Eugene
highway; L. H. Morris,
Eugene, $7,115.
Lincoln: Indian Slough
Freeman Creek section, Alsea
highway; Morse Bros., Leban
on, $59,001.
Lincoln: Depot Slough
bridge section, Yaquina-Tn-ledo
county road; R. H. Will
sey, Salem, $82,174.
Linn: Waverly dr.-railroari
overcrossing section of Albany-Junction
City highway
in Albany; Western Pavine,
Albany, $47,305.
Wasco: Eightmile creck-Du-fur
section, The Dalles-California
highway; Rogers con
struction, Portland, $660,613.
SAVINGS
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3-A
l.'l SM in Qullify
Superb Silvertsne
o