Garden City Telegram from Garden City, Kansas • Page 2

I'age 2 Garden City Telegram Monday, January 30, 1978 Option Trading: 'Double Gamble' NEW YORK (AP) The Commodities Futures Trading Commission, faced with a flood of complaints that small investors have been bilked, went on the offensive this past week by proposing to suspend commodities options trading SERVICE MASTER CARPET CLEANING 275-1433 "The Cleaning People Who Care" in this country. The action came at a time when public attention was focused on the generally esoteric investment field because of charges against the head of one large firm, Lloyd Carr Co. Although it was never licensed, the Boston-based company nevertheless managed to collect millions of dollars from small investors. While some commodity options trading is reputable, the Qountoy fresh Breakfast Serving from: 6 A.M. to 11 A.M.

Monday thru Saturday Coffee Ann New Owners: V.M. Irene Rynn 111 Grant Downtown Garden City CFTC cites increased complaints against high-pressure selling aimed at unwary farmers or small businessmen, who in some instances have been charged commissions of as much as $6,000 on an underlying option of $2,000. An unknown number of sales fall into the category of "naked sales," says commission spokesman William Monahan. The term describes a deal in which the seller never even bothers to purchase the promised option for the customer. If anyone does get a payback for his investment, it's decided on the basis of a lottery.

"Options," says Monahan, "scare the hell out of me." Trading in the highly volatile commodities market is by itself a risk, not recommended for investors unable to devote great time to studying the market or to sustain losses at the risk of profits. But options trading in agricultural products carries a double-barreled gamble for the small American investor. It represents only an option to buy a "futures contract" on a given commodity Within a stated period of time and is at- tractive to speculators because it is generally sold at a fraction of the cost of the underlying contract. But besides being two steps removed from an actual purchase, trading in agricultural options, but not silver and gold, has been prohibited on U.S. commodities markets since 1936, so that Americans who purchase such options can do so only on contracts traded abroad.

So sales to Americans largely have been based on commodities trading in London, which the CFTC says has made it difficult to regulate. The commission, which says there are about 40 houses licensed and active in commodities options in this country, has investigations of 26 underway and estimates "some type of action against 10 to 12 of them within the next several weeks," said Monahan. The case involving Lloyd Carr attracted unusual attention partly because its president, who operated under the name of James A. Carr, was recently identified by the FBI as an escaped convict from New Jersey. While Other Stores Are Receiving Their New Spring Dress Slacks To Sell At Regular Price, Calhoun's Offer A Group Of America's No.

1 Label Dress Slacks At Special Savings. Men's Prices effective through February 2nd or While Our Supply Lasts. Guarantee- Store Hours 94 Sit 94 Sin 1-6 DRESS SLACKS New Spring '78 Arrivals! Select from an assortment of solids and fancies. Reg. 1315 East Kansas Avenue In The Eastgate Shopping Center Something Is Growing At The Corner Of Kansas and Fleming! Construction has begun on our new Garden National Bank Building.

It will be located at the northwest corner of the intersection of Kansas Avenue and Fleming Street. The new bank will be two stories and will contain approximately 26,000 square feet. Parking will be available as required for up to 114 cars, there will be an attached drive-up facility with four drive-through lanes. The new bank is scheduled to be completed in late 1978. The general contractor for the building will be Lee Construction, of Garden City; and Lyman, Cobb, and Benson, of Garden City are the architects.

Hagemann Interiors, of Kansas City, Missouri, have been retained as interior consultants. The downtown facilities on Main Street and the Motor Bank at Laurel and Grant will both remain open to serve the downtown area. Growing To Serve You. GARDEN NATIONAL BANK Main Bank 305 N. Main Motor Bank Laurel Grant Member F.D.I.C.

Phone 275-6151.