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IN every city there is one place where the discriminating purchaser in
one place where the investor in real estate securities inevitably goes when
he wants the best the market has to offer.

The headquarters for “Quality Merchandise" in real estate
investments is indisputably S. W. STRAUS & Co.- the
House that is chiefly responsible for the wide popularity of

real estate bonds today.
This House, for years the leader in its field, is the one to which the dis-
criminating investor naturally turns for real estate mortgage bonds. This
is why S. W. STRAUS & Co. has the largest clientele and underwrites
the largest volume of any institution of its kind. Call at our offices in the
Straus Building, or write today for our booklet, “43 Years Without
Loss," which tells why Straus Bonds are the best real estate securities.
Ask for

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in the production of a machine-made article for the household, office, or general trade. To many minds the classification is a poor one, because it includes too much. Recognizing this fact is half the battle in investing in industrials. It is better to think of investing in an industry as an entity less comprehensive and more capable of analysis than in a grouping called industrials.

The real, good reason why suspicion of the soundness of industrials exists is interesting. Past experience shows that industrials are likely to fluctuate mark

En and women who


a century, in the prompt edly with the fluctuations in business and

put their money PAYING payment of every cent of

into Smith Bonds experitrade. It takes but a superficial review

principal and interest to ence a dual satisfaction in of readily available statistical measures

every purchaser of our first owning these time-tested

mortgage investments. to prove that this is so. Further, there investments.

Current offerings of Smith are the fluctuations within each industry, In the first place, you have

Bonds pay 7%. By investas, for example, the present depression in the comfortable feeling of

ing now, you can obtain textiles. Further still, there is the fact financial security - the

this return for any period, that many industrial corporations, and knowledge that your

from 2 years to 10 years. among them some gigantic ones, are relamoney is safe. Every Smith

You may invest in denomtively new and young, and hence unsta- Bond is a First Mortgage Bond, strongly inations of $100, $500 or $1,000, outble. An additional consideration of im- secured by improved, income-producing right or under our Investment Savings portance is that the finger can be pointed city property, and protected by the safe- Plan. to sensational collapses of apparently

guards which have resulted in our record
of no loss to any investor in 52 years.

This latter plan gives you 10 months, prosperous industrials whose misfortunes

after an initial payment of 10%, to comhave prejudiced investors against the en

This feeling of financial security is in

plete your purchase. You may make tire class. Compared with a public util

creased by the knowledge that the

your payments monthly, or at irregular ity or with gas and electric light stocks,

longer you keep a Smith Bond, the

intervals, as suits your convenience. many industrials sail relatively stormy

stronger it gets. Monthly payments to

Every payment earns the full rate of bond ward the annual reduction of the mort

interest. seas.

gage constantly increase the margin of To how great an extent the prosperity security for investors.

Send your name and address today, on of industrials depends on factors beyond

the form below, for our two booklets,

In addition to the satisfaction of knowthe immediate control of the best man

ing that your money is safe, you have

"Fifty-two Years of Proven Safety" and agement is not always realized. Sudden

the satisfaction of knowing that, without

"How to Build an Independent Income,” changes in women's fashions reduce the

The first of these booklets tells about the

risk or worry, your are realizing the full demand for cloth, build up the silk- earning power of your money, receiving

time-tested safety features which have cking industry, create a new industry a substantial income, regularly and

made Smith Bonds the choice of discrimimitation silks. A war across the promptly paid. It is the policy of The inating investors in 48 States and 30 ean brings wealth to an obscure fac

F.H. Smith Company always to pay the

foreign lands. The second booklet exwhich hitherto had merely "pegged highest rate of interest consistent with plains our Investment Savings Plan, and

shows the results you can accomplish by our standards of safety-standards Radio and automobiles carry

which have resulted, for more than half systematic investment at 7%. their growth success to endless ars of accessories, not to speak of ufacturers of batteries and parts,

A TYPICAL 7% ISSUE Jer mines, plate-glass mills, and rubfactories. Examples can be multi

Corcoran Courts, an apartment building in Wash

ington, D.C., secures an $800,000 issue of 7% Smith d. The kaleidoscope is fascinating, Bonds. Through serial payments the mortgage is lewhat bewildering; it calls for intense

reduced, before final maturity, to $520,000. The dy on the part of the investor.

property is valued at $1,250,000. This 7% issue is Yet, though such factors as these one of our recent offerings and is typical of the Eect industrials, do they not also, in strong security of Smith Bonds. eater or less degree, affect all business? Examining industrials more minutely,

can see that, after all, and in the long in here as in all fields of endeavor, the I reful builder of business, the couraeous yet conservative financial mind, is



PHILADELPHIA at work forming in America a structure

Smith Bldg., Washington, D.C.

MINNEAPOLIS bi industries which is yearly becoming

NO LOSS TO ANY INVESTOR IN 52 YEARS more stable, more adjustable to the winds of fortune, safer for the investor. In an industrial age industries are a basic


Address. nerrsity. Self-preservation demands the Latrcise of the very qualities whose lack

In writing to the above advertiser, please mention The Outlook

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Founded 1873



is largely responsible for past failures. is not enough to make the best mouse- do it. The agency said, “We must make The scientific man, the statistician, the traps in the world; you must force the a study of your product, your sales probbusiness analyzer, the advertising coun- knowledge that they are the best upon lem, of your industry.” After a month sel, bring to industry special abilities the world. In addition, also, there must the agency reported that the directors which, together with scientific manage- be fullest realization on the part of pro

had best invest their advertising approment of production, are discovering and ductive and distributive officers of the

ductive and distributive officers of the priation in almost anything except adversolving difficulties that a decade ago whole industry and of its position not tising. What was needed was a sales seemed impossible of eradication. only in the industry but of the industry's force, not newspaper and magazine ad

What are the requirements of a “really position in the entire scheme of business. vertising. The reason why is too long to safe” industrial? In short space it is In other words, in these days of world tell here, but the point is that but for hard to make adequate answer to this markets and world competition, which their good sense in choosing an honest perfectly proper question, but some idea tariffs can only slightly affect--with agency the lack of judgment on the part can be given.

striking exceptions—there is need for a of the management would have wasted In the first place, there must be com- degree of constant research and ability valuable dollars. Not only good brains petent management, efficient plant, and to interpret and apply research's find- but many brains and alert brains are resound financial structure. These are ings.

quired by industry to-day. bare essentials, and to say how they are One of the largest advertising agencies In this article space forbids anything to be attained, and how to judge them, in the country had this illuminating ex- like a detailed study of industrial investis to repeat the fundamentals of all busi- perience, apropos here: The directors of ments. In “Investment: A New Profesness. In addition, there must be a dis- a certain corporation decided that they sion," ' Henry S. Sturgis gives the results tributing or sales mechanism which will must advertise, and appropriated the

The Macmillan Company, New York, seek and hold markets. In these days it sum of a quarter of a million dollars to



and Branches located throughout Greater New York

Enterprising enough to be Progressive

Conservative enough to be Safe

A Bank Statement that any Man or Woman can Understand

October 1, 1925
The Bank Owes to Depositors....

A conservative banker always has this indebtedness in mind, and he arranges

his assets so as to be able to meet any request for payment.
For This Purpose We Have :

(Gold, Bank Notes and Specie) and with legal depositories returnable on demand,
[2] Checks on Other Banks ...,

Payable in one day.
U. S. Government Securities....

[4] Loans to Individuals and Corporations ....

Payable when we ask for them, secured by collateral of greater value than the

[5] Bonds ......

of railroads and other corporations, of first quality and easily salable.
[6] Loans...

Payable in less than three months, on the average, largely secured by collateral.
[7] Bonds and Mortgages.

[8] Banking Houses..

All located in New York City.
Other Real Estate....

Total to Meet Indebtedness.

[10] This leaves a Surplus of...

$ 24,411,879.29
Which becomes the property of the stockholders after the dents to the depositors
are paid, and is a guarantee fund upon which we solicit new deposits and retain
those which have been lodged with us for many years.

Our listed resources, enumerated in this statement, do not and can not include those assets of friendliness and
helpfulness which this bank has in the personnel of its board of directors, its officers and employes. These

assets which pay dividends to our patrons in service and satisfaction.


The Corn Exchange Bank can act as your Executor or Trustee, issue
Letters of Credit, Travelers' Checks and Drafts on Foreign countries, rent
you a Safe Deposit Box, and can provide every Banking and Trust Service.

In writing to the above advertiser, please mention The Outlook




Legal Investments for National Banks

The World Takes Stoves from Detroit Detroit is first in world production in 29 industries, including stoves. Detroit's wide range of large industries has attracted thousands of investors who are participating in its rapid, substantial growth. Here is your opportunity for safe, profitable investment in United First Mortgage Bonds, secured by first mortgages on high grade Detroit apartments, homes and office buildings. Writefor complete listings of investments open to you UNITED STATES MORTGAGE BOND COMPANY LIMITED

Howard C. Wade, President 326 U.S. Mortgage Bond Bldg., Detroit, Mich. Capital $1,000,000 Resources more than $10,000,000 Or you can buy "United Bonds" doubly safe guarded-guaranteed as to principaland interest. Askus about United guaranteed bonds.


Excellent Investments

for Everyone; Yield 6% FIRST National 6% Certificates con

form to United States Government restrictions for National Bank investments, and also provide an ideal form of investment for State Banks, Trust Companies, and other financial institutions. In addition, they meet the requirements of individual investors who desire a short-term first mortgage security. Unconditional Guarantee: First National Certificates are the direct obligation of The First National Company. Our capital resources of $650,000 constitute a guarantee fund to insure the prompt payment of your principal and interest. Trust Company Trustee: They are secured by real estate first mortgages, executed by responsible borrowers, and deposited with a Trust Company as trustee. Ample Security: The amount of Certificates issued represents less than 55% of the value of independently appraised real estate pledged as security. Flexible Maturities: You may invest $500, $600, $700, and so on upward, and name the exact maturity date, from a minimum of four months to a maximum of five years. In addition to First National Certificates, we also offer, with our guarantee, registered certificates in $100 multiples paying 6% for I year, and coupon bonds in $500 and $1,000 denominations paying 6% for 4 years.

Write today for booklet No. 11

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of a careful study of investments made in 1921, and a list of companies whose securities, or some of them, were at that time considered investments was compiled. The following industrial bonds met the exacting tests set up: General Electric debentures, United States Steel sinking fund 5s, Cuban American Sugar 8s, Standard Oil of New York 7s, Standard Oil of Southern California debentures, and Western Electric 7s. The industrial stocks were common, with the exception of Allied Chemical and Dye preferred, and these were the companies: General Electric, Woolworth, Standard Oil of New Jersey, New York, California, Kentucky; Royal Dutch, Electric Storage Battery, Owens Bottle, American Locomotive, American Car and Foundry, American Radiator, United States Steel, Otis Elevator, and General Motors (debentures).

This enumeration, arrived at after very painstaking probing of the records of the corporations, is not published here as a hint for investors to-day. I print it to warrant repeating the point that there is nothing inherently different in a stock or bond because it is an industrial from what it would be if the issuing company were a public utility or a railroad. Management, financial structure, and earning power are the central considerations.

In another book, "Industrial Ownership,” by Robert Brookings, there is a significant table which shows that the average earnings of twenty selected industrials were not greatly below that of National banks. The summary covers the earnings of the years 1919–23, and the ratio of net earnings to capitalization was worked out accurately. In the case of banks, for reasons which are more or less obvious, the ratio is that of net earnings to capital, surplus, and undivided profits. Part of the table follows:





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Facts for Investors

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THE OUTLOOK Financial Service Department is at the disposal of all Outlook readers at the nominal charge of $1 per inquiry. It is a fact-finding and reporting information service which aims to help the investor, small or large, solve his own problems We are serving hundreds. May we serve you


6% on other securities or over 4%
ordinary bank interest will pay you
liberally even on a modest invest-
ment. There are five distinct rea-
sons why you can get 8% safely on
First Mortgage Bonds offered by
the Trust Company of Florida. In-
vestigate! Send for free booklet.

Invest in Florida at 8%
$100, $500 and $1,000 Bonds

Partial Payments Arranged


Paid.in Capital and Surplus 500.000


The Outlook Financial Service Department

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Net Earnings

Average to Capital-

Net Earnings
U. S. Steel Corp.......... $102,299,800
Bethlehem Steel Corp....... 21,405,800
Republic Iron & Steel Co. 3,009,000
National Lead Co......... 5,043,800
Amer. Car & Foundry Co. 8,701,200
Baldwin Locomotive W'ks 6,013,400
Westinghouse Electric &
Mfg. Co.

Worthington Pump & Ma-
chinery Corp.

1,570,000 Internat. Harvester Co..... 11,626,400 Amer. Agricul. Chem. Co. 1,118,800 Swift & Co.

12,333,600 Amer. Sugar Refining Co. 6,920,000 Corn Products Refin'g Co. 10,730,400 American Tobacco Co........ 18,748,800 American Woolen Co........ 7,063,800 Central Leather Co........... +3,152,200 Cluett, Peabody & Co....... 2,619,400 Endicott Johnson Corp..... 4,519,800 U. S. Rubber Co...

15,392,800 Studebaker Corp.



7.23 7.22 4.32 9.41 14.51 12.02


7.24 7.62 1.28 5.59 6.78 13.24 12.30

9.06 -3.18 10.12 14.69

6.88 18.17


$263,298,400 Average

13,164,920 7.75 All National Banks........ 223,112,600 8.34 • Deficit. The conclusion to be drawn from these

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In writing to the above advertisers, please mention The Outlook

Important to Teachers ! , somewhat scattering remarks is that he other type of investment except the

who has sedulously avoided the indus- straight real estate mortgage. It offers trials as potential investments has made reasonable promise of appreciation. Its a grave error of judgment. The properly tendency—the tendency of the indusselected industrial is a true investment. trials as a class---is toward rather than It is open to the hazards of depres- away from stability. A well-diversified, sion, but probably not more so than any well-chosen industrial list is hard to beat.


What does that term suggest to you? Does it strike you as being important?


WHAT does the workingman think it means?

The business man? The corner-lounging tough? The foreign-born "radical'? What does Young America think it means? It is one of the great fundamentals upon which social organization and social progress absolutely depend. A misunderstanding of this one fundamental on the part of any large proportion of any natton might spell a disaster of first magnitude! There are other fundamentals. For instance, there is the fact that without co-operation there can be no social organization at all. llas lali and order anything to do with this co-operation Does it make personal liberty impossible? Or possible? There are still other fundamentals. There is the historic fundamental that militarism spells

national suicide, and that commerce spells strength, civilization, and culture. There is the fundamental that liumans seem to require a reward for exercising their best capacities. Are these important to know about?

Did you ever hear of a school making such matters definite part of their sturly? Yet these are essentials every eflicient citizen should know! Great public leaders and great educators are demanding that schools teach the highly important fundamentals of civics and of social organization To all who have this great matter at heart this announcement will bring a very keen interest.


Personal Liberty and Other

Social Fundamentals

Charles K. Taylor, M.A., Director of Educational Research at Carteret Academy, N. J., after experimenting for a number of years to find which of these vital concepts can be brought most strongly before Young America, has evolved a novel method of instruction by means of which students are encouraged to develop these concepts through their own thinking, and through class discussion. The method is presented in 19 lessons entitled "Personal Liberty and Other Social Fundamentals" strongly bound in boards and printed in large clear type. The subject matter as well as the method will be a revelation to school folk and all those interested in educational methods.

Roses and Sweet Peas


DON'T know what to write about. his arms and looked up to my face. He
One hesitates to write, half afraid to took the red rose from between his lips

and held it toward me.
to see. One looks

"Jesus!” said he; "ain't that a pretty with wonder, and, looking forward, won- rose?" ders the more.

I think that deep within the heart of I've been thinking of pictures I have all of us there dwells the bud of hunger seen along life's gallery, remembering the for pure beauty. words and the faces of people. Such a His "Jesus" was, to me, not blasmany people!

phemy, but prayer. It is sunset time. I recall a sunset a dozen years or so ago. I was working Once there came to my doorstep an in an orange packing-house, taking the old and beery tramp. He drank a cup fruit from the wagons as the teamsters of coffee and grew talkative, seated beunloaded it. It was mid-April, and the side me on the kitchen step. day had been showery.

"Them sweet peas ain't doin' good," Behind me the grader women sat at said he, nodding to my weak row of their grading, sorting the fruit that rolled poorly growing peas. by on the canvas belts. Beyond the I said nothing graders threescore packers with flying “I'd used to dig me two little trenches, fingers wrapped the golden fruit. Truck- might be six inches deep, about when the ers and rustlers hurried to and fro. The first cool nights was comin' after sumvoices of the packers rose continually, mer," he said. "Afore I'd dig 'em I'd calling “Box!” bidding the rustlers take fertilize the dirt. I'd poke a lot o' little their full-packed boxes. A switch engine holes in the bottom o' the trenches and clanked along the rails upon the other drop a pea down each of 'em. See?" side of the packing-house. All was bus- I said that I saw. tle and hurry, for it was close to quitting "Jest so soon as them peas beginned time. Rows of electric lights shone to shew I'd sift little o' the loose dirt through the dusty haze above the work- from off the top o' the trench down on ers. Machinery whirred and rattled. 'em, and w'en they come up again I'd Eastward, opposite the doorway in which sift some more. I'd keep asiftin' and I worked, great tumbled ruddy clouds asiftin' till the trenches was most level. clung to the mountain ridges. Here and Then I'd quit an' leave the peas grow there amid the clouds a pink snow peak out. We sure did raise fine sweet peas." arose. The canyons were darkling.

I said nothing. But for one lone late teamster, who "God!” said he, and wiped a brown urged his straining team toward my hand across his fishy eyes. door, the wet street was deserted. His I said nothing. horses pulled with their heads low, mus- "I'd ought not to be like this," he cles on flank and shoulder rigid, dry said. "It's all my fault. I'm glad if she sweat of a long day's labor white about don't know.” their collar-pads.

I said nothing Without a word to me, the teamster “We had a bit of a home one time, me commenced to lift the orchard boxes from an' my wife. She was that fond o'garhis wagon-bed, stacking them on the floor den. She sure did like sweet peas.” before my truck. There was no moist I fetched him another cup of coffee. sweat upon his face. The long-dry fur- “When she took sick it all wentrows of his brow were dust streaked. He operations an' hospital, doctor bills and grunted now and then, and winked to me. such. When she was gone, I didn't have Between his lips he held a bright-red nothing. We never had no kids."

I knew him well; a happy-go- I held my hand out to him, and, taklucky, care-free, cussing sort of man--a ing it, he said: common type of common laborer.

“W'en you puts in sweet peas in fall, When all his boxes were unloaded, do like I says. Fix them trenches for while, eager for their barn and barley, 'em. They'll do fine." his team stirred restless feet, he stretched I hope his wife can see the blossoms.

J. Madison Gathany, Instructor in Social Science at the High School of East Orange, New Jersey, says:

I have just finished reading your little volume entitled "Personal Liberty and Other Social Fundamentals." It is a fine piece of educational work. In fact, the book fascinates me, and I am of the opinion that its value will come to be recognized by educators as unusually great. By cogent and skillful questioning you compel the reader to see open and unhindered not only the foundations upon which our whole social structure rests, but also the conditions upon which future development and progress must be made.

It is my sincere wish that your book might come into the hands of countless young American citi. zens. For this is about the best thing that I can wish them for their own sake and that of the United States of America.

One copy 75 cents. A rery generous discount for orders of 25 copies or more for use in schools or other citizen

trained organizations. Send the cou pon to-day.

The Outlook Company
120 East 16th Street
New York, N. Y.
Enclosed find 735 cents for which send me one copy
of "Personal Liberty and Other Social Funda-
mentals," by Charles K. Taylor.

Please quote special price for an order of.



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