Asbury Park Press from Asbury Park, New Jersey • Page 17

Asbury Park Sunday Press SHuKE PHKrtft THE EVKMNO Nf.WH lllAil.Y' BUSINESS ond BUILDING SUNDAY, AUG. 25, 1963 17 Investors9 Forum Hy HARRY C. FRANCE Phony Check Passers Trapped By Computer With Long Memory Hearing Set On Proposed Ocean Bank Sunday Press Investment Analyst Thousands of nrophyte utockholders have the cart before the horse. They are speculating before they can afford to do so. Forming good money-management policies early in life is extremely important.

Most young people should think through a logical thrift, savings, and investment plan as they take their first job. A standard of living should be established that will enable them to save 5 per cent to 10 per cent of their gross earnings. Then as they progress in their vocations or pro- Market Scores Fourth Straight Upward March lessions, their standard of living and their thrift, saving, and investment plans I1 'V. i piiuuiu ue cioseiy correiateo. Financial Hubble Bursts Let me illustrate.

In my early days in Wall Street, a young executive of my acquaintance went from a job (this was not long after World War 1) to a $15,000 position overnight. Success went to his head. Immediately he boosted his standard of living, forgetting entirely the virtues of thrift and savincr. Press State House Bureau TRENTON A hearing on a proposal to establish a new bank in Ocean County will be held 10 a.m. Wednesday in Room 4.18 of the State House Annex.

Harry Pressor, deputy commissioner of the state Department of Banking and Insurance, will conduct the hearing on the proposed First State Bank of Ocean County, which would have its main office on Rte. 37 in Dover Township. The application is the first this year for a new state-chartered bank. If approved, the First Stale Bank would become the first new bank in Ocean County since establishment of the First National Bank of Tuckerton in 1952. Ocean County is now served by six national banks and one state hank, the latter being the Trust Co.

of Ocean County in Lakewood. Seven shore area business and professional men are the incorporators of the proposed new bank, which would have capital stock of $600,000 divided into 120,000 shares with a par value of $5 a share. The Incorporators and the amount of shares they have subscribed for are: Donald Towbin, 109 Ocean Lakewood, an auto dealer and restaurant owner, 43,700 shares; Robert Schmertz, 230 1st Lakewood, a builder, John C. Giordano 312 Cooper llitrry C. Franci eompany checks and false drivers' licenses to victimize a Hollywood department store but went to jail.

A supermarket forger who fled when he saw his credit being checked and in frustration grabbed a ham on his way out. Checks Reporter's Credit In Telecredit headquarters, Mr. Katz performed a demonstration check of this reporter's credit rating. On typewriter like keys protruding from a desk top, he punched out the driver's license serial number, color of eyes, and day-of-month of birth all as shown on the license. This sent the computer, in the basement two floors below, into action.

In hardly more than an eye wink an electric typewriter beside the keyboard banged out in all-capital "letters: "NN." That meant "no negative information." The reporter grinned in relief. Other figures showed this was the first time today the system had been consulted about him. Mr. Katz ran the same data through again. The report was still nothing negative but showed it was the day's second check on the same person.

Why? Give Wrong Answer "The store clerk may ask the customer, 'Is this the first check you've cashed Mr. Katz exaplained. "If the customer says, 'no' the clerk will have reason to be suspicious. "Now," said Mr. Katz, "let's say you're using a phony driver's license." He gave the computer the same information except for color of eyes.

"XX," the machine rapped sternly. This meant "stand by" and would have signaled the operator to press a hutton transferring the call to a former cop in the security room. By GENE HAVDSAKER LOS ANGELES The long arm of the law is pulling in forgers here, heled by a civilian electronic brain which tells it where to reach. "We've brought about the arrest of 750 forgers," says Ronald Katz, 27, president of Telecredit a business set up to protect merchants from bad checks, Capt. Harry Didion, commander of the Los Angeles Police frauds division, says, "Telecredit is a valuable adjunct to us." The brain, crammed with data on check crooks and California's 8'2 million drivers' licenses, raps out a verdict on a questioned check in four seconds.

It can handle up to 24 inquiries at once. The company, which also has closed-circuit TV and 60 employes, serves 1,250 businesses, twice the number of a year ago. They include major supermarket chains, a bank chain, drugstores, two airlines, and big department stores in the 5,000 square miles of Los Angeles and Orange counties. Statewide operation is contemplated and eventually a nationwide network of interconnecting Telecredit centers. The firm got its start when two bright young employes of Bendix local computer division met over coffee.

Mr. Katz, who negotiated contracts, and Bob Goldman, 37, technical information manager, began wondering whether computers couldn't be put to work against bad checks. Published eslimtes place U.S. losses to fraudulent-check passers at $1 billion a year. With $400 savings each, followed later by a $50,000 investment by a New York banker, they launched Telecredit late in Mr.

Goldman is chairman of the board. They fed their computer with information on drivers' licenses, the latest In a series of historic highs it has posted this year. Volume was 20,530,001 shares compared with 22,798,050 the previous week. Seemed Convinced Wall Street seemed convinced judging by stock action that the Aug. 29 deadline on a possible railroad strike would again pass harmlessly, as similar deadlines have.

The decision of the Senate Commerce Committee that some form of compulsory arbitration will be necessary seemed to add substance to the air of confidence regarding this important question. Steel production dropped again but it was a minor dip and later in the week steel stocks moved upward in the wake of a prediction that the steel industry now stands on the threshold of a period of long-term growth. Shares of the savings-and-loan holding companies rallied sharply on Thursday, carrying through a bit on Friday, as Wall Street took note of their relative "cheapness," based on their prices and NEW YORK UP) The stock market this week spent a few days in a muddle and then advanced vigorously, scoring its fourth straight weekly advance. The big feature of the week was spreading interest in a wide variety of neglected issues, especially those in the lower-pricerl category which are favored by the small investor. Although statistics still showed that the little fellow was doing more selling than buying, it seemed plain from market action that he was nibbling again, and nibbling rather enthusiastically.

Even when the market wheel-horses were wobbly there was an underlying ferment of demand with the result that as the days passed the list of most active stocks always showed more plus than minus sign. Moved I'nrrrtalnly Stocks moved uncertainly during the first three sessions but went ahead actively in the final two sessions. Blue chips notched into gear with the lesser stocks on Friday to remove all doubt about how the week would end. The Dow Jones industrial average rose 3.82 to 723.14. The Associated Press average of 60 stocks advanced 3.5 to 277.P, i i TiiU rr i i imiimniiiiiffliiwi ifii! ') i He rented an expensive Tark Avenue apartment, got married, and hired two servants.

His vocational and financial bubble burst within two years. He has never recovered from this experience. His extravagant habits undermined his efficiency and his early executive promise went by the boards. Thrift Ruilds Self -Reliance Today's counterpart is unwarranted speculation by thousands of new stockholders who are goaded on lo believe that easy money can be made in the stock market. This notion is false.

Individuals and organizations are offering services Intended to beat the market. It is all a delusion. For every person who is lucky in making quick profits in stocks, there will be a dozen disillusioned by losses. A woman employe notes information supplied by a store seeking a credit rating on a customer who has offered a check, at Telecredit, in tos Angeles. With the aid of an electronic computer, the answer will be available within seconds.

In the background are the young men who founded the company, Ronald Katz (left) and Robert Goldman. They claim credit for bringing about the arrest of 750 forgers. (AP) lost and stolen licenses, bad- forgery experts, in a so-called check passers, and people with security room, "not sufficient funds," "unable If the check-presenter is a want-to locate" and "account closed" ed suspect, the former cop grabs reports. a "hot line" direct to the Kxplains Operation Angeles Police Department's corn- earnings when compared with other stocks. Wall Streeters had to swallow some disappointment on Wednes-See MARKET Page 19 Asbury Park and Ocean Grove Bank Middletown Township, a lawyer, Walter Cotier, Ridgeway Toms River, president of a concrete firm, Paul A.

Larson, 424 New York Sea Girt, an auto dealer, Robert J. Miller, 3 Pincview Drive, Toms River, an Ocean County Freeholder, 1,000, and Marcus H. Russell, 8 Orchard Toms River, a civil engineer, 100. The bank would begin business with a surplus of $300,000. The amount of the fund reserved for organization expenses is $30,000 and the amount reserved for contingencies is $270,000.

The bank would have not less than five nor more than 25 directors, in accord with state law. Mr. Giordano, Mr. Cotier, Mr. Miller, Mr.

Towbin, Mr. Schmertz, and a president or chief operation officer to be named would serve as directors inancial self-reliance is built on the solid virtues of Industry, thrift, saving, and sound investment. A young college graduate aged 24 gets a ob. He says to himself: "I will save at least $600 of this." He opens a saving bank account. He buys a $10,000 life-insurance policy.

He carries a checking account with the commercial bank where his company carries large balances. His cart is not before the horse. At age 30 his ealary is $10,000. He keeps $2,000 cash in banks eavings and commercial. He has a family of three and he has two insurance policies.

And he is starting to buy sound Investment common stocks outright. Speculation is not for him. Speculation Maybe Later It may be that at age 40 when with ample cash in banks, a sound insurance program, a list of blue-chip common stocks, and a steadily increasing salary job, he can afford to buy some values for capital appreciation. The unsound speculation of 1963 will come home to haunt countless investors in 1968, 1973, 1978, and in the years even further ahead. The present investigation of the securities markets will not reach into the homes of thousands of speculators who want to make money in a hurry.

CAPITAL STOCK Bought Sold Quoted Charles P. Young Investment Securities Established 1930 527 Bangs Ave. A rki m. D-kL DD, C3CCt Road Material Is Tested In Shrewsbury Here's how telecredit works: munications room. A supermarket clerk, say, won-1 A radio car is immediately on ders whether a check present- its way to the market, ed by a customer is good.

Some of Telecredit's criminal He picks up a phone at his catches, in cooperation with po-counter and dials Telecredit. lice: Some businesses have direct A master forger who had eight lines. legmen cashing phony checks for A girl answers his call, asks I him in stores. An unmarkd po-a set of questions, writes down lice car tipped by telecredit his answers. The computers tell nabbed him in a parking lot.

whether there's reason to suspect He's serving a nine-year federal the check. rap before starting three con- If there is, the call goes to secutive 1- to 14-year-state terms, one of several retired policemen, Three men who printed fake City Merchants Report Good Summer Business I at The operator also would have leaped to a big revolving file, plucked forth its written record on the check presenter, and taken it to the former cop. The file, detailing the computer's Information, has records on more than 100.000 bad-check passers. If the file showed the check-presenter had an insufficient funds record, the former cop might tell the clerk, "We believe you should go slow in cashing this check." If it showed the customer was wanted by police, he'd reach for his hot-line telephone. Patents are pending on Tele-credit's speedy system.

Deter Bad Check Passer The service costs $15 a month for up to 30 inquiries, or $30 a month for up to 150. Inquirlei exceeding the subscription rat are 20 cents each. Gross receipts are about $500,000 a year, Mr. Katz said. An automobile agency says of the Telecredit warning signs that customers post on their doors: "We feel that having your signs posted on our premises deters many bad check artists.

In other words, they avoid us when they see the sign." A crook just nabbed at a supermarket that was installing new doors agreed. "I didn't know they had Telecredit!" he raged at arresting officers In unprintable language. "That blasted manager didn't have the signs up!" ASBURY PARK A survey by the Ashury Park Area Chamber of Commerce indicates downtown Calling the right number retail sales and beachfront business has been very good this I summer. Arthur T. Young, chamber ex-: ecutive vice president, made the survey as part of an evaluation of the effect of the Asbury Park i Preview of the New York World's can be highly rewarding 9 STOCKS FOR until the first annual meeting of the stockholders.

The application for a state charter, consisting of a certificate of incorporation and an affidavit containing required information, was filed under the Banking Act of 1948. Standards for approval include the public interest, the reasonableness of success, and the capacity and fitness of the direr-tors to carry out the duties and responsibilities they would have in running a bank. The hearing is expected to take more than one day to complete. The final decision is up to Charlej R. Howell, state commissioner of banking and insurance, who must give his decision within 90 days after the hearing.

Mr. Prosser said no formal objections have been received, but noted that the time for presenting objections is at the hearing. He said it would be unusual if there were none. Although state law sets limits on branch banks, there is no established limit on the number of banks a county can have. The judgment la on the standards set by law.

by Spiros Michals, who runs a beachfront restaurant and also has an interest in boardwalk rides. Cites Favorable Comments Following are some other comments cited by Mr. Young: "The summer was excellent and right now business is very good in the back to school and fall lines." Harry Abbott, merchandise manager of Levin's. "Business is very good. The crowds have been big.

We are ahead of last season." Terry Tsadilas, manager of the Howard Johnson restaurant on the boardwalk. "We have seen more people this year than for many seasons past it has been a good season." Dan Edelson, owner of Steve Brody's Tavern, Ocean Ave. "Business is better definitely i ME SHREWSBURY This borough is experimenting with a new street surfacing material that it hopes will save it money in the long run. The material, Sta-Seal, was used last month by M. J.

Stavola Middletown Township, to resurface Corn Lane, N. Park avenue, and Borden street. Compounds similar to Sta-Seal have been used for road work in New Jersey the past two or three years, according to borough engineer Gerard A. Barba. Mr.

Barba says the new material, which has a five-year guarantee, is competitive in price with the oil and stone surfacing which must be replaced in about two years. Sta-Seal is a bituminous surfacing that closely resembles the asphalt blacktop used on many Shore roads. The cost of resurfacing the three experimental streets was 60 to 65 cents a square yard for a half-inch thick covering, Mr. Barba said. In the past, the material had to be spread more than two inches thick and the cost was prohibitive.

Improvements in the material have extended its usefulness despite the thinness of the coating. In order to test the strength of the material under all conditions, the streets chosen for the test present a variety of conditions. One has a wet base with little traffic, another a dry base with heavy traffic, and the third, a dry base with light traffic. "Residents who live on the street where we have applied Sta-Seal have said that they not only like the riding qualities of the road but the lack of loose stones and bits of oil that stick to shoes and tires," Mr. Stavola haid.

"We are very optimistic about Sta-Seal and when properly applied to a road in sound condition it can lengthen the life of a road way beyond what we have come to expect with other resurfacing methods," Mr. Stavola said. telephone cafl regarding your hrrestment problems may prwo bight? rewarding -H yoi iri talking to the right person. At Thomson McKinnon you'll find account executives who have vide experience In the securities He'd, and are solving Investment problems daDy. They'll be glad to give you all the time needed to goto yoar problem-either on the phone or by a visit to our office.

To lean mn atnrt kov wi tern dints, rite tor oar booklet "Serving the THOMSON 9 Memorial Pa rkway, Long Branch CA 2-43 1 0 iBrwdwey.l.T.4 HA2 5100 20 East 46th St, R.T. 17 TU KJ400 62S Madison Ave, R.T. 22 PI 13800 Fair. Mr. Young Interviewed retail merchants, restaurateurs, hotel and motel managers, and amusement ride operators.

"The majority of businessmen report one of the best seasons ever enjoyed by the business community," Mr. Young said. World's Fair Preview information was publicized in 106 stories in 43 daily and weekly newspapers between June 3 and Aug. 16, Mr. Young said.

The newspapers were in communities between Birmingham, and Springfield, Mass. 120,000 View Fxhiblt Nearly 120,000 persons were counted going through the upper rotunda of the Fifth Avenue Pavilion to see preview exhibits between July 15 and 31, Mr. Young said. About 75,000 persons have signed pads asking information about a Monmouth County vacation package, which includes a trip to the New York World's Fair next year. About one-third of these are from states beyond the New Jersey-New York-Connecticut metropolitan area, Mr.

Young said. Michael Slovak, vice president of the Steinbach said "A substantial increase in business ha been evidenced since the July 15 period." His opinion was echoed Opens Record Shop ASBURY PARK-Alfred Cinter. Irvington, has opened the House of Hits, a record ahop, at 1006 Springwood Ave. Mr. Cinter has been In the record business for the past 11 years with Essex Record Distributors and the Belmont Record mm hew to rrocr bkwangi ano own winctai $(CUmf AND COMMODITY KCHANGES ahead of last year." Mrs.

Ted Tripodi, owner of the Country Fair. "We are ahead of last season." Al Gutteridge, manager of the Empress Motel. "We are filled up every day." Joseph Brown, owner of the Orbit Motel. "Business is ahead of last season's." Harris Berger, owner of Berger's women's apparel shop. "A phenomenal increase in volume some weeks as high as 50 per cent." Bill Green, owner of the Rus'ic Lodge.

"Business is definitely up over last year's figures." Dave Jor-gensen, owner of the Rendezvous Shop. "An increase over last year." Norman Fisch, owner of Fisch's Department Store. "Business trend is up over last year." Miss Tina McKnight, manager of the Dainty Apparel. Shop, both In Newark. This announcement is neither an offer to nell nor a mlicitation to buy any of thee eecurities.

The offering is made only by the prospe tus. New Issue August 20, 1963 N.J. Shore Activity Best In 5 Years TRENTON All Indication point to a record-breaking year for the New Jersey resort and travel business, according to Commissioner Robert A. Ro oif the state Department of Conservation and Economic Develop-men. "This has been the best season in five years," said Commissioner Roe" In 1959, resort business reached an estimated $1.8 billion.

A check of key resort areas In the state cites generally clear and warm weather and improved facilities for the encouraging report. A study of the resort areas checked reveals the following: Asbury Park increase 6 per cent. Hotels, motels, and board walk activity up. Atlantic City Hotels slight increase, motels up 10 to 20 per cent Record heat in July a big help. Taverns up.

Nite club business off womewhat. Bradley Beach Increased 10 per cent. Cape May Increased 20 per cent. Hotel and motel business very good. If business continues like the first half, it will be the best ever.

Long Beach Island Increased 15 per cent. Rentals are for longer periods than previous years. Long Branch Increased 8 per cent. Manasquan Increased 2 to 5 per cent. General increase In spending.

Ocean City Increased 10 to 15 per cent. Real estate rentals are good. Ocean Grove Increased five per cent. Point Pleasant Increased seven per cent. Increases in general business.

Seaside Heights Increased 12 per cent. Tying in with the 50th anniversary celebration. Wildwood Increase five per cent. Due to visitor volume. A review of high yielding slocks which we believe suitable for purchase Is set forth In tur latest "Investment Ideas" folder.

All these stocks mel five qualifications: 1. Presently yielding about 4.8 or more. 2. Some dividend paid for at least 20 years, 3. No reduction in annual dividend rate for the last ten years.

4. fn each of the last ten years the dividend was earned at least 1 1 4 times. 5. Reasonable assurance that present dividend rate will be maintained. While the emphasis ef this review is on above average yield, these stocks also lifer appreciation possibilities.

Your McDonnell man will be glad fo make this 7 page review available to you, or, you prefer, simply use the coupon below for your free copy. INCORPORATES Metnbrn New Turk Knrk Eiobn, ni tlher prtnefptl (ifhinfM Afutttat Fundi i -iUi 0 't I 35,000 Shares Monmouth Ocean Realty Investment Trust 1 Common Slock '1 f. a A- 1 sLt IT 5. Par Value) Price $8. per Share (To Yield 7 per Annum Payable Monthly) Copies of the Prospectus may he obtained from the Undersigned 'BRIEN SULLIVAN INC.

(40 MATTISON AVE. ASBURY PARK, N.J. out FLIGHT I'r PR 4-5100 This offering is available only to bona fide residents of the State of New Jersey ASBURY PARK TOMS RIVER Berkiley-Cartcret Hotel Locust Shopping CenUr Kingiley Street Rout 37 i Please send me your 7 paga Review on Slocks for Income Nomt Addreu City i THRIFTY GIRLS-These girls were among the first depositors at the Matowan Bank's branch office at Rte. 79 qnd Harbor in Marlboro Township. The girls (left to right) are Lucie, Leslie, and Laurie Gibson, daughters of Mrs.

Leonard Gibson (second from left), Freehold. The teller is John Doyle. The bank branch opened last week..