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by bond issues of serial maturity, which amount to deferred payments for the structure. Many a factory and mill, many and divers industrial enterprises, are similarly financed. They utilize

their credit and the security of the property thus arranged for to buy equipment on the partial-payment plan.

The case of the individual differs from that of the corporation in method and scale. The going business is the salaried man. The capital investment is the home, machines to operate in it, furniture and equipment for it. The sinking fund is the weekly or monthly installment. Like the corporation, the individual uses his credit and the pledge of the property under purchase to make the purchase. Is there in this anything essentially unsound? Is there any other way in which an uncapitalized individual can supply himself with that ideal, a modern American home?

The abuses of the installment system, not the installment system, promote extravagance with the extravagant. It tempts all who are ready to be tempted. On the other hand, it offers opportunity to the thrifty and it encourages economy (economy is, literally, good management), because it forces the conscientious to take stock of their financial present and future, to calculate, and, on the basis of careful-not of reckless-calculation, to estimate their financial needs and discover the best means, which may or may not at any given moment be the installment method, by which they can be satisfied.

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W. L. S.

From Inquiring Readers

WE

E had a slightly out-of-the-way inquiry last month. It was about

a stock certificate which was to all intents and purposes worthless. The owner asked if it was necessary or advisable to keep the certificate. "In the settlement of my estate would not the presence of this certificate become an embarrassment and a possible source of trouble?"

Our answer: "If you are sure that the company is defunct and that there is no possibility of the discovery of assets, you might destroy the certificate. I do not think it would prove an embarrassment to your executor, particularly if you will attach to the certificate a memorandum stating the facts and giving any address you may have. Every estate contains some worthless securities which must be

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IN PHILADELPHIA, PA. Huntington Hall, at 20th and Walnut Streets, in the celebrated Rittenhouse Square section, a few blocks from the business and financial center. A 16-story apartment building with shops on the ground floor.

Boulevard Apartments, adjoining Potomac Park and overlooking Potomac
River and the Lincoln Memorial. Close to the White House, U.S. Treasury and
other Government buildings. An 8-story structure containing 224 apartments.

Strong First Mortgage Security

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CHOICE site in one of America's great cities, improved by a modern residential or business structure, secures each issue of SMITH BONDS. Every SMITH BOND is a First Mortgage Bond, secured by a direct first lien on the land and building, and also in effect on the earnings, of a modern, incomeproducing, city property.

In every instance there is a wide margin of security for investors between the amount of the First Mortgage Bond issue and the value of the property.

In every instance we require monthly sinking fund payments toward the annual reduction of the mortgage, so that the margin of security for investors is constantly increased.

In every instance we require monthly sinking fund payments

toward the semi-annual interest, so that prompt payment of interest is assured.

In

every instance we require that the earning capacity of the building be considerably more than the amount required to make these sinking fund payments.

Our booklet, "Fifty-three Years of Proven Safety," contains a further explanation of the safeguards that protect_every investment in Smith Bonds, and that have resulted in our record of no loss to any investor in 53 years. Our booklet, "How to Build an Independent Income," tells how you may buy a $1,000, $500 or $100 SMITH BOND by payments over 10 months, and get the full rate of bond interest on every payment. Our current offerings pay 7%.

For copies of these two booklets, and for circulars describing our current 7% offerings, send your name and address today on the form below.

THE F. H.SMITH CO.

Founded 1873

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each year, in its Banking and Trust Departments, investments amounting to many millions of dollars; and hence its judgment on real estate bonds in which its Underwriting Department specializes, is regarded by banks and bankers as authoritative.

Many other banks besides THE BAL

2. AUR TRUST COMPANY have been invited to make the most thorough investigation of these bond issues; more than 200 National, State and Savings Banks now have made such an investigation; and their Investment Committees have indorsed the bonds and purchased them for investment.

the United States Fidelity & Guaranty Com-
pany (resources $48,000,000); they know the
strength and value of its guarantee of principal
and interest on the first mortgages securing
these bonds; and they know also the strength
and value of the guarantee of title by the New
York Title & Mortgage Company (resources
$29,000,000).

In addition there are such factors as availability
for trust funds, a yield above the general bond
market average, satisfactory marketability,
institutional trusteeships, etc., besides the in-
herent safety resulting from the care and con-
servatism in making loans which THE BAL-
TIMORE TRUST COMPANY requires of the various
Mortgage Companies whose issues it offers and
recommends to the investing public.

Denominations $500 and $1,000. Maturities 1 to 10 years. Tax refund up to
41⁄2 mills in any State. Write to the Main Office of THE BALTIMORE TRUST
COMPANY, 25 East Baltimore Street, Baltimore, Md., for Booklet No. 17
Orders may be sent to any of the following banks or banking houses:
Baltimore Company, Inc.......New York, N. Y.
Baltimore Trust Company........Baltimore, Md.
Bodell & Company..
.Providence, R. I.
Owen Daly & Company.. .........Baltimore, Md.
Empire Trust Company. St. Joseph, Mo.
Ferris & Hardgrove..
Spokane, Wash.
Industrial Bank....Grand Rapids, Mich.

Emil H. Lampe.....
Elliott Magraw & Co...
Poe & Davies....
Prudential Company.
Charles D. Sager.

Warren, Pa.
St. Paul, Minn.
Baltimore, Md.
Chicago, Ill.
Washington, D. C.

Union Bond & Mortgage Co.......Davenport, Ia.
Ward, Sterne & Co...............Birmingham, Ala.

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FACTS FOR INVESTORS

The Outlook's 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?

The Outlook Financial Service Department

looked up, and once in a while something proves to have real value."

We have known of one or two instances where there was actual cash in a bank waiting for the discovery of supposedly worthless certificates of this kind. Unfortunately, these cases are few and far between. But why risk possible loss at the cost of merely retaining a piece or two of paper?

S

OMEBODY inquired of us about Lewis Oil, common Class A. He owns over 4,000 shares, and "would like to dispose of my entire holdings, but want advice. as to what it is worth, so please give me your opinion as to present value of stock and future prospects." He was offered 35 cents a share for a portion of his holdings. We were unable to secure a quotation on this stock. We answered that it is a very speculative stock. "Stocks of this kind have a 'narrow market' that is to say, they go up and down in accordance with their financial values from day to day. Often the market is entirely controlled by the houses which deal in them. Not knowing what you paid for it, it is difficult to advise you. If you have a profit, by all means. take it. If a sale at this figure means a loss, it would perhaps be the wisest course to take the loss."

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3. $10,000 in savings banks at 4 to 41⁄2 per cent.

4. $5,000 in building and loan associations at 6 per cent.

5. $2,000 in first-mortgage bonds at 7 per cent.

6. $2,000 in first-mortgage farm loans at 8 per cent, say, in California. We commented thus:

"Your plan provides safety with a fair income, provided, of course, that you are careful in your choice of bonds and mortgages.

"Since you ask for suggestions, may we point out that mortgages are often difficult to liquidate promptly in case of need, and that, while the return will be somewhat less, you might be better satisfied with marketable bonds or stocks?

"One other suggestion. We see no

THE OUTLOOK, 120 East 16th Street, New York City reason why a certain proportion of your

funds, say one-third, should not be in

In writing to the above advertisers please mention The Outlook

vested in good investment stocks, or in investment trust certificates."

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66

Τ

"IT is particularly difficult to advise at

this time," we wrote the other day to a reader in California, "because of the market situation, but we believe that, while immediate return may be low, it is never a mistake to purchase the common stock of a well-established corporation which makes and sells a sufficiently diverse line to be protected in case of a slump."

What, some one comes back to us with, would you have said about buying General Electric when it was up to 375?

A very pertinent and an embarrassing inquiry. General Electric has behaved wildly on the stock market. On the basis of present dividends, it was pretty high at 300. On the same basis, it was very high at 375. On the basis of its probable future, however, it was not high at 375, and the question whether it was a wise purchase at that price should be answered in the affirmative only by those who feel sure that they could not buy it lower and that, anyway, it is intrinsically worth in the neighborhood of 400. There are those who hold strongly both pro and con. There are few who do not believe in its great earning power.

F

IGURES deceive unless we analyze them carefully. A friend called our attention to the fact that Anaconda Copper pays $3 in dividends as against New York Central's $7, and wondered if it would not be good policy to get out of the metal stock and into the rail. We may have misunderstood what our friend wrote, but here is our reply:

"Are you not overlooking the fact that the par value of Anaconda is $50 a share, whereas the par of New York Central is $100? New York Central selling at 122 or 123 and paying $7 a year dividend yields about 5% per cent. Anaconda selling at 44 and paying $3 yields a little over 6 per cent. There is an advantage in New York Central, not only in yield, but in security. The position of the stock, in our opinion, is more nearly an investment than is Anaconda."

THE rails puzzle many, including ourselves. Wherever possible, and wherever we can honestly do so, we are as definite as the language will permit. In the case of a reader in Ohio we hedged somewhat:

"We would consider Great Northern and Northern Pacific to be sounder purchases than Rock Island preferred. Of

"Two

incomes are better than one"

Putting your dollars to work

W

HENEVER there is a waterfall to be harnessed, an industry to be developed, a public improvement to be made or a new human want to be satisfied, dollars are invited to go to work for their owners.

The best way to keep your dollars busy is to invest them regularly in the bonds of worthy enterprises. Thus employed, they will produce a second income, a dependable income which continues regardless of how your own personal earning capacity is affected.

Our offices in more than fifty leading cities are ready to advise you in the selection of suitable offerings.

The National City Company

National City Bank Building, New York

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Build Income Quickly

The occasional purchase of even a $100 8% bond quickly builds a substantial income. Filer-Cleveland First Mortgage Real Estate Bonds are safe for they are secured by income-paying, city business property, independently, authoritatively appraised at practically 100% more than amount of the mortgage loan. There has never been a delay in payment of semiannual interest or principal. They afford a larger income without sacrificing safety. References: All Miami banks. Mail coupon or write for 24page "8% and Safety" booklet, giving complete information.

THE FILER-CLEVELAND CO

Suite 3505, 139 N. E. First St., Miami, Fla.

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later on would favorably influence Rock Island stock, but, in our estimation, the common would be more likely to improve than the preferred. D. G. R. Western, like St. Paul, is undergoing reorganization, though St. Paul has a much longer road to go. There are good speculative possibilities in both, providing you have your eyes open to the risk involved."

"R

ELIABLE information" having been requested about certain securities, we reported to a reader in Schenectady as follows:

"Electric Investors, Inc., is a holding company and is closely allied with the Electric Bond and Share interests. It is a new company and has not yet demonstrated its earning power. It is listed on the New York Curb Exchange and is currently quoted at about 69.

"Granby Consolidated is an old established property. The common is not now paying dividends. It is quoted on the Boston Stock Exchange at 23 to 24. It is at this time a speculation.

"International Nickel Company is a strong company, but has paid no dividends on its common since 1919. The preferred is paying dividends. The common is quoted on the New York Stock Exchange at 44 or 45. At this time it cannot be regarded as an investment, but might well be bought for appreciation without undue risk, though to do so is, of course, to speculate."

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discussion, mostly fa

vorable to the affirmative, is simple. Stocks are a kind of limited partnership

Subscribers rights. They are not, like bonds, legally

When you notify The Outlook of a change in your address, both the old and the new address should be given. Kindly write, if possible, two weeks before the change is to take effect.

binding obligations, debts. They may rise; bonds won't, except within narrow limits. They may fall; bonds-good bonds-fall little. On the other hand, stocks offer the opportunity of capital appreciation, which is so very attractive. We do not believe that a sound list of well-diversified stocks held over a period of years, watched and shifted from time to time, is other than good investing. But there are many "if's" in the proc

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The Dougle $10

You'd naturally

go to Spalding
for athletic shoes
...and that's
what golf shoes
should be...

AN ATHLETE can't be

bothered with shoes that
have to be broken in. His
shoes must be easy and com-
fortable the first time he
puts them on.

It requires a highly special-
ized type of skill to make
that kind of shoes. Spalding
has developed the skill
through thirty-six years'
experience as shoemaker to
America's athletes.

Golf is an athletic contest
-not just a walk in the
country. To play the game
best requires athletic shoes-
the kind that only Spalding
knows how to make.
Try on a pair at the Spalding
store...realize the difference!

AG. Spalding & Bros.

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In writing to the above advertisers please mention The Outlook

New York Chicago San Francisco and all principal cities

ess. The bond will remain a staple for

NATIONAL the small investor, a mainstay for the

UNION MORTGAGE BONDS

A Good Place

to put Dividends

WHEN your dividend checks

come in, put them to work again in safe, productive real estate mortgage bonds-a class of security that offers every advantage for the investment of either large or small

sums.

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institution, and must be included in
every fairly rounded investment pro-
gram.

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NO LOSS TO ANY ADAIR INVESTOR IN OVER 60 YEARS

If

you've got time

you can make yourself financially independent

stocks of railways. They were, we have N be, you can provide for a confortable

every reason to believe, honestly planned
and managed and are not to be confused
with the fraudulent "Ford of Canada"
schemes. But they were financially un-
sound, and hence have been dissolved.
It is understood that the stockholders
lose nothing.

A

a

and independent old age if only you will
take time by the forelock.
For example:

Thirty years plus $600 a year at 6%
compounded equals $50,000. Whereas
the man who allows time to slip by,
the man with only ten years in which to
accumulate $50,000 must invest just
six times as much-or $3600 a year.
The decision lies with you.

BRIEF statement of policy. From
time to time readers ask us to sug-in a few short years build up a comfortable
F YOU will take advantage of time, you can

gest investments. In very rare cases we
do so, but our general practice is not
to do so. Many may think that it is
splitting a distinction pretty fine to give
facts and opinions on proposed invest-
ments but not to offer concrete sugges-
tions.

Our reason for this is that we offer,
primarily facts, and secondarily opin-
ions. We are not in the business of
advising as to people's investments for
them unless they tell us what, in their
own best judgment, they think they
should purchase. Always this judg-
ment; and our reaction to it must be
tempered by the inquirer's personal cir-

cumstances.

If, therefore, we suggest investments, we must have a pretty clear picture of the inquirer's situation.

Lastly, it is a very risky and usually a thankless thing to suggest investments. Suppose, for example, that we recommended a certain bond or issue of stock and the day after it was bought something happened to depress the market. The fact would remain that The Outlook had recommended it, and all the qualifications with which our recommendation was surrounded would be forgotten. If we were in the business of selling investments or of counseling people about investments, it would be different. We leave that to others.

No, we must confine the service which this department is trying to give readers. We must stick to our limited field.

fortune in Adair Guaranteed 62% Bonds, every dollar secured (1) by conservative loans on income-producing city property; (2) by the earnings from the property; (3) by the financial resources of the borrowing corporation.

future will be safeguarded, pro

Ytected by the unconditional guarantee of

the Adair Realty & Trust Company—a written pledge placing every dollar of our capital, surplus and profits (over $2,500,000)squarely behind each and every bond.

Further: you can, if you so desire, have your Adair Bonds insured against loss by one of the oldest and strongest surety companies in America.

Adair Guaranteed 62% Bonds have an
income advantage of

62% over 4% bonds
44% over 42% bonds
30% over 5% bonds
18% over 52% bonds
8% over 6% bonds

Take time now! Mail the coupon today and without obligation on your part, we will gladly suggest an investment plan exactly suited to your needs.

ADAIR REALTY
& TRUST CO. Founded 180s

CAPITAL, SURPLUS and PROFITS $2,500,000
ATLANTA PHILADELPHIA

Offices and Correspondents in principal cities
NEW YORK: ADAIR REALTY & MORTGAGE CO., Inc.
270 Madison Avenue (Ownership identical)

ADAIR REALTY & TRUST CO.,

Healey Building, Dept. Y-33
Atlanta, Georgia

1 Gentlemen : Please send me without obligation your booklet "Why Your Real Estate Bonds Should Be Guaranteed."

Name

I Address
L.

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