trend is expected to continue into the coming year which should help to offset somewhat the higher
cost of money prevailing today. We are also pleased to note the relatively larger reserve for unearned
finance charges which amounted to 10.02% of retail receivables compared to 9.34% last year.
All indications point toward sustained high levels of business activity in 1960, and while higher
taxes are certain because of the new laws relative to life insurance and higher money costs are prob-
able, net earnings should improve somewhat during the coming year because of improved insurance
operations and higher levels of retail receivables outstanding.
The 1959 Texas Legislature finally recognized the need for proper legislation of consumer loans
and voted to submit an Amendment of the Texas Constitution to the voters in the Fall of 1960. This
Amendment, if passed, will authorize the Legislature to enact proper legislation for the loan industry,
which has long been needed. Texas is one of only eight states in the Union which does not have small
loan legislation. We wish to urge all Texas voters to support this Amendment which will enable the
Legislature to properly regulate this industry which is so important to our economy.
The year 1959 unfortunately marked the untimely death of Leo Johann, Allied Vice President and
Secretary. Mr. Johann joined Allied in 1942 and will always be remembered by those who worked with
him as one of the best finance men in the Southwest. One of his greatest business attributes was his
contagious smile and cheerful words that he had for everyone with whom he came in contact.
David D. Steere
David D. Steere
President and Chairman
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