Four days before the annual report of Atlas Corp. was released for publication this week. President Floyd Bostwick Odium invited most of Manhattan’s financial newshawks to the swank Luncheon Club at No. 40 Wall Street. It was, said Mr. Odium, the first time that a clear picture of Atlas’ amazing Depression history had been presented.
As the newshawks knew, Atlas Corp. was formed as a private investment trust ten years ago by Floyd Odium and President George Henry Howard of United Corp. when they were both public utility lawyers. Starting with $40,000 capital, they were extraordinarily successful. Their friends came trooping in. By 1929 a total investment of about $850,000 had been shrewdly rolled up to $6,000,000. Just before the stockmarket crash they sold additional stock to the public. But unlike almost every other investment trust they kept this new capital in cash. In time smart President Odium, now only 40. was able to begin buying up other investment trusts which no one wanted, when their stocks were selling far below liquidating value. In all he gobbled up 18.
By this simple process President Odium was indirectly acquiring the underlying securities at a big discount from their market value. Last week he revealed how well he had bought. While the stock-market as a whole had declined 75%, Atlas common stock in three years had increased 40% in asset value to $7.02 a share. With most of its holdings written down to market and the rest to $1. Atlas’ reported total assets of $53,890,000.
No income account was published though earnings for last year were stated to be $1,098,000. President Odium thinks cash is the thing and cash earns little or no return. As he has acquired investment portfolios, he has weeded out the less desirable securities. Thus he has managed not only to maintain his cash position but to build it to nearly two-fifths of all assets—a $20,000,000 war chest ready for new deals or the next bull market.