SECURITIES: Obsolete Operation

Fortnight ago young Robert Ellsworth Gross, president of Lockheed Aircraft Corp., published an unaudited preview of his 1939 annual report: sales, $35,303,444, up 244% from 1938; net earnings in excess of $3,140,000 ($4.05 a share), up 610%; unfilled orders over $40,000,000 (they jumped to $70,000,000 last week). Bob Gross's preview was incidentally a potent sales talk for an operation that took place last week. It was a type of operation that has threatened to become obsolete: a public offering of common stock to obtain new capital.

Last week the sales talk produced sensational results. A Manhattan syndicate, offering 225,000 shares of...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!