Telephoning over a ray of light

Building on the Telephone Principle

casting entertainment and carrying important information to the remotest regions.

But new applications of the telephone principle are still being found. In the loud speaker, in the deaf set, the electrical stethoscope, the improved phonograph, the telephone principle has been adapted by the Bell Telephone Laboratories to the uses of the physician, the public speaker and the musician. The scientific research and engineering skill, which enable America to lead the world in telephone service, are also bringing forth from the telephone principle other devices of great usefulness.

of Gobi; in steaming Borneo jungles; among palm trees on the enchanted islands of the East Indies; in the wilderness of Korean forests; along the fogbound shores of Bering Sea-wherever I made my little camp-fire, there was 'home.' But it has been a happy life and a full one. Not for an instant would I have changed it for the static existence of a palace on Fifth Avenue." These are estimable sentiments surely, but we could wish he hadn't put them just that way and these aren't the only ones, mark you! To the effete modern ear they are almost as cataclysmic as if one of Miss Alcott's Little Women had said: "Aw, so's your old man!"

IN ITS SEMI-CENTENNIAL YEAR THE BELL SYSTEM LOOKS FORWARD TO CONTINUED PROGRESS IN TELEPHONE COMMUNICATION

Important to Subscribers

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 go into effect.

Dr. Andrews does not happen to be William Beebe or W. H. Hudson, and perhaps it is not to be expected that he should be. He has made some of the most important discoveries of this generation in the science of evolution; he has shot the Golden Fleece and that poetic animal, the Wild Ass of the Gobi; he has been to the Flaming Cliffs of Shabarakh Usu and the City of the Living God. What more do you want?

Fiction

OKLAHOMA. By C. R. Cooper. Little, Brown & Co., Boston. $2.

The scenes when Oklahoma first and later the Cherokee Strip were open to homesteaders had dramatic elements enough to furnish forth scores of novels, but this is the only one we remember to have seen. The hero was in the race for land location and was first aid to Pawnee Bill. The author has led an adventurous life and knows his subject. In fact, plot and love story would probably have been better if he had not been so absorbed in the historical side.

Landscape Architecture

By William G. P. Put

LAY THOUGHTS OF A DEAN. Ralph Inge, Dean of St. Paul's. nam's Sons, New York. $3. These papers, which have appeared in various periodicals, embrace a large number of subjects, literary, political, social, and religious. Whether or not we always agree with the Dean, his essays are always worth reading. To use his own words spoken of Alfred Noyes: "He is a hard hitter, giving vent to a strong and healthy indigestion. He will stir up a wasp's nest, but he can take care of himself." He dislikes Bolshevists, Russians, literary and artistic, Socialism, faith healing, bricklayers, gambling, and the new rich; while he speaks well of classical studies, the Victorians, English public schools, Walter Page, eugenics, birth control, and Modernism. What he says about America is interesting, but he goes perhaps a little too far when he speaks of the "Crime of 1812,"

when we "stabbed England in the back while she was fighting for her existence and for the liberties of Europe."

Comets

The comments on comets printed in the Book Table, August 11, 1926 (in connection with Miss Mary Proctor's book, "The Romance of Comets"), have elicited a number of letters. Apparently there are many readers of The Outlook who feel deeply upon the subject of comets and meteors. In this respect they are like the writer of that article. Some of them are respectful toward the comets, and some of them are inclined to be irreverent.

N. C. Crandall writes from Baraboo, and relates some of his or her-experiences with comets in the State of Washington. In accordance with the practice of those regions, he makes some slighting references toward New York and the Great White Way. He admits that he wearied of waiting for Halley's comet, but asserts that when it arrived it was a magnificent sight. It extended from Willapa Harbor to the Cowlitz River region, so it is clear that it could have been no disappointment. In fact, we gather that it was one more triumph of the West over the East.

From Hibbing, Minnesota, comes a letter from Mr. Charles Edward Roe. He agrees with me about Halley's comet, and adds some family experiences with that swarm of meteors called the Leonids, which used to turn up promptly every thirty-three years until they slipped their trolley in 1899. Mr. Roe's grandfather had a frightful experience, in 1833, while returning from a husking bee. The air was full of meteors, and the young man narrowly escaped with his life. He sought refuge under a stone bridge, into which retreat he was actually pursued by some of the more vicious Leonids. In 1866 these meteors forgot their feud with the Roe family, so that its representative in that generation met with no misfortune whatever. He missed seeing them, it is true, but while waiting for them to appear he and his friends, veterans of the Civil War, engaged in a friendly little game which turned out very much to the profit of the Mr. Roe of that time. This good luck continued down to the present generation, although the Leonids were still shy in 1899.

The Rev. Mr. T. D. Jones writes from Espanola, Ontario, to describe an evening in Staffordshire, England, in 1899. Here, also, the Leonids failed to perform as advertised, and the spectacle might have been a disappointment to the observers in the town had not a group of young boys thoughtfully provided Roman candles and rockets. The amateur astronomers, who had been keeping themselves warm with various liquids, were quite satisfied with the display. It is odd to note, by the way, how frequent are the references to alcoholic drink in the narratives of these lonely watchers of the skies. There must be some direct connection between astronomy and the juice of the grape or the corn. One of the most interesting of the letters came from Mr. George H. Remele, of Palo Alto, California. In 1866 he was a boy of fifteen, living in Middlebury, Vermont. Early in the morning of November 13 he saw the beginning of the shower of Leonids. (This was the shower which other observers have reported as no disappointment, but as a wonderful sight. Edwin Booth was born during the great shower of meteors, November 13, 1833.) Mr. Remele awakened his family, who watched the meteors from 2 A.M. until after daybreak. There would be scores falling at the same instant. Tens of thousands shot across the sky, and some of the most brilliant were observed after daylight.-E. P.

Cunard S.S."SCYTHIA"

5th Annual Cruise de Luxe

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The cruise of the magnificent 20,000-ton "Scythia" to the Mediterranean, under special charter, has become an annual classic. In every respect it is unsurpassed. Hot and cold running water in every cabin. Pre-arranged shore excursions at every port included in the rate. Finest hotels and the best of everything. Unusually long stay, at the height of the season, in Egypt and Palestine.

Stop-over privilege in Europe without extra cost, returning via S. S. "Aquitania," "Mauretania," "Berengaria," or any Cunard Line Steamer.

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fairly safe in speculating? Is it possible to secure the gains which come from successful speculation without incurring the risk of losses that are supposed to be inherent in speculating?

By attempting to answer these questions let it be clearly understood that we are not recommending speculation of any kind. The object in setting forth the views in the following paragraphs is to guide and assist those who have been tempted to speculate so that they can - minimize their losses as far as possible. In sum our suggestions are these:

1. If you speculate, be frank with yourself and don't say that you are investing.

2. Never speculate with more than a small portion of your funds. Speculation is a weak basket in which to carry many eggs.

3. Plan your speculation; limit your loss or rather, your possible loss-before you start; don't inflate your hope of gain.

4. Deal only with thoroughly reliable brokerage houses. Don't add to your risk by employing agents of uncertain reputation.

5. Investigate before you speculate. Investigate more thoroughly (if possible) than you do before you invest.

6. Speculate in real, not in fictitious values. Of the six rules here given, this is the most important.

This list of directions is not complete, but it embraces the principal points that should be borne in mind. In anticipation of the heralded bull market of the coming autumn, we trust that our readers will ponder these points carefully, and, if they speculate, remember them throughout the process.

Let us now explain why each of these points is important.

1. The failure to distinguish between what is speculative and what is not is a cause of prolific loss. I do not refer to the "twilight" zone which exists just above the speculation and below the investment. I refer rather to the degree of risk taken, and this is always more or less easily ascertainable. If you have a conservative bond or investment stock, it is speculating to sell it and buy a less conservative bond or stock because you have reason to believe that it is going up. Don't let expectations outweigh facts. Be honest with yourself.

2. The man who speculates with all his money should-and probably will-have none later on. This point is so obvious that there is little need to dilate upon it. 3. "Plan your speculation; limit your loss." Why not? Anything done in accordance with a reasoned program is better than something else done at hit

NO LOSS TO ANY INVESTOR IN 53 YEAR'S.

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Scientific Facts

About Diet

CONDENSED book on diet entitled

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CRUISES

The Round-the-World or Mediterranean Cruises are reasonably priced this year, and offer unusually interesting itineraries. Also South American, West Indies, special African tours, and California via Panama Canal are mapped out in well-built schedules. We will be glad to offer interesting literature and further details on any of these

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LOCAL TRIPS

Our own country is crowded with worthwhile and intriguing trips by motor, coastwise steamer, or railroad. For plans for your next trip write to

EVA R. DIXON, Director Outlook Hotel and Travel Bureau 120 East 16th Street, New York City

or miss. If you are speculating, you are risking. If you are risking, you must determine how much you can incur and when you should stop, even though in so stopping you lose. It is good policy to hang on to a real investment in spite of temporary market fluctuations.

same policy becomes bad when applied to speculations, for the reason that temporary market fluctuations spell either failure or success.

4. This also is too obvious to require exposition. But don't forget it.

5 and 6. To our way of thinking, the ideal speculation, the speculation with risk chopped to the bone, is the purchase of equities in sound corporations which, upon the most careful investigation, and after consideration of the large variety of factors that affect the market during any given period, seem most likely to sell higher. If the right choice is made, you are, in a sense, not speculating except to a very small degree. You are investing in dividend-paying stocks with every reason to believe that dividends will continue. You are buying shares in established businesses with real value behind them. You are, in short, doing much what the investor-speculator in real estate does when he purchases land in a growing community.

It is safe to say-there are no statistics against it that most of the solid money made by buying and selling on the Stock Exchange is made by trading in equities. It is no game for an amateur. It is a dangerous game for even a well-informed professional if he buys only one stock; or if he misjudges market conditions, or if he buys the wrong stock, or if he over-buys. It is a less dangerous game if such speculation is diversified, for, if diversification is a good principle when applied to investing, it is trebly valuable when applied to speculation.

One of the cautions which we want to

pass on to our readers in this connection is clearly explained in a letter from one of our friends, A. W. Smith, as follows:

"It is interesting and worth while to note the effect on the market of a listed stock when some powerful brokerage house or syndicate is 'pushing' the sale of that particular stock. Said brokers or syndicates are usually interested in the stock, and their enthusiasm, whether genuine or not, tends to create an artificial demand for it, which places it on an artificial and unstable price level. This price level will rise rapidly in a rising market, then will react sharply in a falling market and stay below its previous high level upon recovery of the general market.

"Recent prominent examples are Nash

American Company,

Motors, North American Barnsdall Corporation A, Dodge Brothers A, and Gillette Safety Razor. These stocks were all being pushed very aggressively by large, well-known houses in the early part of 1926. Prior to the break in the market during March of this year these stocks sold at an average high price of 651⁄2 per share. They fell off to an average low price of 451⁄2 per share. To-day (August 19) they have recovered to only 52. They fell off 30 per cent in market value, and have re-covered only one-third of that loss. Over the same period the Dow-Jones average ranged from a high in February of 162 to a low in March of 135, a loss of 163 per cent. To-day this average price is 162.43, a recovery of more than the total loss.

"The logical conclusion is that you should be careful of the listed common stock which the broker is pushing by lavishly circulating elaborate and expensive literature setting forth the great virtues of that particular issue."

There is much sense in this and a good warning for those who believe that the action of stocks on the exchanges is due to uninspired supply and demand. We have quoted Mr. Smith at length to conclude these scattering remarks on speculation because we do not wish to be thought of as teachers of that gentle and sometimes profitable art. Speculation is playing with fire. Even the devil himself cannot always do that safely.

IT pays to look carefully into every

investment trust plan before buying shares. Of course it always pays to investigate an investment, but caution is particularly necessary when considering this type because it is relatively new and there are in the field several plans which,

with the best intentions in the world on the part of their managers, are not at all sound. There are some, it should be added, which are not well intended.

Recently we reported to a reader of these pages on a certain trust shares proposition. What we said suggests a line of inquiry which may be of value to others:

"We would not call Blank Trust Shares an unsafe investment. On the other hand, we would not consider it as good an investment as to invest directly in the stocks on which these shares are based. The market for these shares is, we understand, fairly narrow, and, while we haven't seen a recent quotation, we would suggest to one contemplating buying that he figure up the market value of the stocks back of the shares and compare this with the offering price."

W. L. S.