Evening Star Newspaper, January 30, 1926, Page 23

) ¥ GREAT GAINS ADE INLIFEINSURANGE American People Paying More Attention to This Kind of Protection. | Special Dispatch to The Star. NEW YORK, January 30.—“In the budget of the American people life in- surance is becoming an increasingly important item,” according to Com- merce Monthly, published by the Na- Uonal Bank of Commerce in New York. Continuing. the bank says: In 1924 the legal reserve life insur- ance companies collected over $2,100,- 000,000 in premiums. In addition, the United States war risk insurance and fraternal und other miscellaneous lfe organizations collected around 2250,000,000. The total income of the | American people for the yvear 1924 is placed by an authority at $70,000,000,- 000. It {5 thus cleur that the figure for life insurance premiums collected ex- ceeds 3 per cent of the total American | income. Growth Is Startling. “Now J per cent is not a striking amount considered alone. However, the total annual savings of the Ameri- can people in recent years has been estimated by the same guthority as 18 per cent of their income. A large por- tion of money paid as life insurance premiums is quite usually regarded as savings. Hence it is clear that a large fraction of the total annual sav- ings of the American people takes the form of life insurance. The portion of the income of the American people pald In 1924 as insurance premiums vas distinctly more than it was in ‘‘Measured in dollar figures, there has been a startling growth over the rast decade in life insurance in force. Tncluding legal reserve, assessment and fraternal organizations there was in force in 1913 nearly $31,000,000,000 of life insurance. By the end of 1924 1his figure was nearly two and a half times as great, or about $77,000,000,- 000, taking into account United States war risk insurance. Great Change in Values. Thete are startling increases, but uch increases give a false proportion. the basis of current index numbers $100 would have purchased in 1913 what it would have taken about $160 15 buy in 1924. So really the $31,000,- 000,000 of insurance had about as ruch purchasing value in 1913 as £50,000,000,000 would have had in 1924. ©n this basis the purchasing power of insurance in force increased no l2ss than 50 per cent over the decade. “From the record of the past decade figures indicate that life insurance wealth more than holds its own as a part of the wing wealth of the United Stat B Policemen Dismissed. Privates John F. Moore and James R. Atwill were dismissed from the police force yesterday by the Board of Commissioners on recommendation of | Maj. Edward B. Hesse, superintend ent of police. Moore has been ¢n a probationary tenure in the Police De- vartment and was suspended follow- ing his capture recently in a house At 208 C street which was raided Ly police of the sixth precinet. At- will, it was said, did not meet the| requirements demanded of a member of the force The girl who boasts that she can EVERYMAN’S INVESTMENTS THE INVESTOR. Now turning from the investment to the investor. Whether or not any glven security is a good investment de- pends on who is buying it. And the first question to be answered {s what are the total resources of the investor. A bond that would be perfectly suit- able for a $100.000 man to hold might involve unjustifiable risk for one with a capital of only $10,000. and when the entire savings arc still smaller the fleld from which a cholce may be made narrows down even more rzpldly. Too much stress cannot be placed on this point. To overlook it is to in- vite disaster. The rule is that the smaller the amount to be invested the larger the caution that must be ex- ercised, and remembering the principle emphasized in a previous article that the higher the rate of income an in- vestment promises the greater the risk, it follows that the investor of moderate means must be content with a moderate return. Right here is where the inex) enced make a cardinal mistake. argue that because their income needs are large they must buy high-ylelding securities. The wealthy, they insist, may be content with 5 per cent, be- cause such can live luxuriously on that or less, but the poor need and must have 7. Nothing could be more fal- lacious. Exactly the reverse is true. It is the small investor who must, not may, must, take the 5 per cent and leave the 7 to the man of wealth. The reason, of course, is that the large investor can afford to take the chance of loss of principal on one or more high-yielding investments because loss would be of little importance to 5 would have plenty left. The small investor who took the same risk and sustained the same loss might be ruined. There is no more important {nvestment lesson to be learned than this, and none more difficult to mas- ter for sorne people. Sometimes it can be made plain by a simple arithmetical calculation. Five per cent on $1,000 is $60 a year, and 7 per cent on the same amount is $70 a year. The d! terence is $20, and the question how much of a chance of loss is $20 a year worth. I have taken 5 and 7 per cent sim- ply as arbitrary rates to make the case plain. It might be 4 per cent and 6 or even on rare occasions € per cent and 8. It {s not actual return that matters, but the principle. (Covsright. 1026.) s TWO YOUTHS HANGED. Pair Convicted of Murder in Geor- gla Dropped From Same Gallows. COLUMBUS, Ga.. January 30.— Willie Jones and Gervis Bloodworth youths condemned for the murder two years ago of Howard Under- wood, were hanged here yesterday. They were hanged from the same nxolous. 11:02. ri- ——— BUSINESS TOPICS. BOSTON, A minimum wage of §13 a week has been decreed by Minimum Wage Commission of Massachusetts irls employed in candy factories. oard and lodging are estimated at $8 in the budget prepared by the comumission, clothing at $2 a week. Allowance of tion, vacations and reserve for emer- gency.” BRUNSWICK, Ga. January 30 (Speclal).—Long Island, which lies off the Georgla coast, near here, has been purchased by Atlanta capitalists nafther cook nor sew usually does so becsuse sne has nothing elss to boast | about. for the sume of $300,000. They will develop an all-vearround beach sort on the isiand. COLONIAL HOMES 808 to 826 Marietta Place Northwest Marietta Place Is Situated Immediately North of Ninth and Madison Stree Convenient to Two Car Lines Containing six large rooms, tiled baths, built-in tubs, con- crete front porches, one-piece sinks, hot-water heat, enameled kitchen cablnets, large porches, storage heater. Price, $8,750 Terms “Two Sold Before Completion” FLOYD E. DAVIS COPMANY ts paved alley, 30.gallon hot-water 733 Twelfth Street Northwest Main 352-353 Whether Your Order Calls for One Shade or a Thousand You'll Save Money by Seeing Us First Factory Prices—Let U- Estimate ] 830 13th St. N.W. ! W. 1 SOBE Main 4874 Main 8552 TOKES SAMMONS, Proprietor following attractive feature: Free use of plat and Listin, Use of our address. gation. 410 BOND A New Service for Real Estate Brokers Furnished desk space with telephone service and the 5 telephone numbers on your stationery. Your telephone messages taken by experi- enced operators. Your callers courteously received. on our building directory. Light, heat and Janitor service. The low rental rates and excellent location of this building make this well worth your immediate investi- s as low os $15 per month. assessment books. BUILDING The trap was sprung at| January 30 (Special).— |/ for || of cost of living |/ and '} 25 cents & week is made for “recrea- |, DRIVE ON STEEL STOCKS FAILS; MARKET THEN MOVES UPWARD Jump nowadays is that the stock in question is going to figure in some combination. Little in Week’s Money or Business Situation to War- gtr:lh:' stmply rant Rise—Merger Rumors Used to Force Prices Forward—The Outlook. BY STUART P. WEST. Special Dispatch to The Star. NEW YORK, January 30.—During the past week it has been the specula- tive situation which has attracted most attention. At the beginning of the period there was definite evidence of conflicting opinions and of & desire to test these out on the floor of the Stock Exchange. A certaln important element was credited with exploiting | the view that the market during the Autumn and early Winter had gone forward far enough, that most of the favorable features in the outside situ ation had been adequately measured and that some sort of a reaction was in_order. The test came with the announce- ment on Tuesday of no increase in -he United States Steel extra dividend. A powerful effort was made on the strength of this to break steel stock. When this effort failed, it was the signal for a resumption of operations for the rise. More and more, the week went on, the buylng side got the upper hand. The market in the closing days of January was not the furious speculation of October and November, but it was fully equal to the rising market at the end of De- cember. The Money Situstion. There have been no new develop- ments to explain this latest phase of the rise. Money has continued easy, but then easy money, taking the ex. perience of the last four years, could never have been considered a stimulus to advancing prices, because it has never been a deterrent to very large declines. In the old days before the new hanking system the money market was u serfous question for speculators. There was always the doubt as to whether at certain seasons of the year <hs credit supply would be sufficient to take care of Wall Street operations, while at the same time accommodating the increased demand from other quarters. But with the exception of the ab- normal period of 1919-20, the credit potentialities of the Federal Reserve have been 80 great as to assure against any real deficiéncy. Wall Street has had its moments of fear that the Fed- eral Reserve would raise its rediscount quotations for the purpose of stopping Easy double back porches. Convenient to stores, car 904 14th St. N.W. an overdone speculation. But it has not had any fear that the supply of legally available funds would run out, as they used to do under the old re- gime, and it has not been afraid of any excessive rise in money rates. Business Situation Unchanged- If the fresh upward turn in stocks has not been bused upon the money situation, neither has it been based on mythlt&' particularly new in the business situation. The December railway statements were used &5 an argument for putting up the rallway st But as a matter of fact they were simply repeating the story of the previous three months. This was that with the abandonment of ex nary maintenance appropriation large gains In gross earnings wer showing in net, making sure the con. tinuance of present dividends and holding out the promise of numerous increases. The turn for the better in the sugar trade has been indicated for some time. It {s stmply more fully recog- nized now, and with sugar °"prices gradually pointing upward, the reason for the buying of the sugar stocks has become apparent. Oil and Steel Outlook. Oil production has been coming down for three months now, with scarcely apy interruption. This means higher prices and the market for the oil stocks is recognizing the fact. On the other hand, the steel companies are confronted with price conditions which are not satisfactory. For three weeks in succession thera has been a decline, and this decline has occurred from a level low in com- parison with previous years. The steel companies, therefore, have to de- | pend upon keeping up production to maximum {n order to countecbal- ance the unfavorable effect of these price decreases. The prime impulse to the Stock Ex- change movement is the widespread merger rumors. Nothing excites speculation 80 much as the suggestion of one company taking over another on terms of seemingly high. If past experience counts for anything. a lot of these merger stories will turn out | to be nothing more than speculative | gossip. Some of them undoubtedly will prove to be trus. But at least the | favored explanation for overy big MODERN HOMES Northeast $6,950:% Terms Six rooms and bath, hot-water heat, electric lights, hard- wood floors, laundry trays in cellar. Long lot to alley. Room for garage. Colonial front porch, line, schools, etc. Sample House, 803 20th St. N.E. Open All Day Sunday Representative on Premises | J. DALLAS GRADY Winter’s Supply of Hard Coal goes with this for many months. fixtures, other refinements. Larg 1417 K Street CHEVY CHASE HOME Ono of the best values that has been offered in Chevy Chase A twostory, thoroughly modern residence, with oak floors, special electric hot-water heat and porches and generous grounds. Small cash payment accepted and immediate possession given: DON'T FAIL TO LOOK AT— 3727 Kanawha Street DOSTESHELPS $10,950 Convenient Terms = Can Be Arronged OPEN SUNDAY AFTER 2 PM. ' Main 9300 REALTORS Don’t Just Pretty HAVE iving eq '%‘!"{“ tchen crbinets; attic with fenced: east on Ritlenhouse take 14th St car m: OR PARK. - ms; hot-water X S ot Fo SR B from "‘0 m'rr—sm'-m“uu ‘wampie. No: 5600 S Halome, oot o8 at 3rd-and sla. Wish for a Bungalow ONE AT D 45 auarerent exteriors trom which to choose !llpnsnl and conveniences tbat are B in $30. ] S A o Iitchen ¢ 3 w ] : cash payments a4 low as & Evening Phones—Adams 3215.-W or ZSQ-J 1206 18th Street N.W. th be an increasing degree o.!‘a.rllfldl-uly appearing in the buying movement. Foreign Exchanges Steady. The past week has held little of interest in the commodity markets or in the foreign exchange. The London market has o far been successful in maintaining sterling at a high enough level to discourage important gold shipments and to permit some uc- cumulation of gold by the Bank of |ban! England. The French Snancial pro- gram still hangs in the bulance, while the French franc remains at u level less than a quarter of & cent above the lowest of the last year, and only olhflbr‘ bd‘h' iths of a cent above the rec- The opinion seems well founded *|that money will continue on a low range for some time to come and that unless thers is an extremely large outpour of new securities to take up the slack the present high Investment prices will be maintained and perhape even increased. (Copyright. 1926, Sues Real Estate Man. Stanley L. Wolfe of Chevy Chave, Md., bas flled suit to recover $15,000 damages from Edward L. Strobecke: Washington realty dealer. charges that the defendant made mi; representations in reference to certain property at Bethesda, Md. Attorne 'z,l.:“d. & Dutton appear for the plain- — ANNOUNCING Mr. Charles H. Hillegeist Is Now Associated With Our Sales Organization In the Capacity of SALES MANAGER W.C. &A. Realtors—Builders 1119 17th Street N.-W. 140-156 T St. NE. Sample House No. 142 Open Daily Until 9 P.M. Metal Weather- stripped and Screened Thruout Built-in Garage Ballt-In Refrigerator fhadies ll site of the PLAN TO CUT LOANS. Business Men Will Use More of Own Money This Year. That 1926 will provide a sound basis for business is the general hope, and it is, indeed, the impression of most business men that businese will be good during the coming year, as indicated by the results of a recent questignnaire addressed to several thousand representative merchants, manufacturers and others engaged in various lines of business activity by the Magazine of Wall Street. One of the most important facts brought out is that inventory and bank loans will show no such expan- sion in 1926 as they did in 1920. 1y 86 per cent of those questioned de- clared that they had no intention of ‘ncr&lln;u!hflr borrowings from the ks. lly 66 per cent had no in- tention of udding to their inventory. Yet 88 per cent intended to do a larger gross volume. Important deductions can be drawn from this unusual com- bination of circumstances. In the first place, it is clear that should there be any recession in prices during the vear, business would not be confronted with the urgent demand from banks that they reduce their loans. Perhaps no other single factor is so powerful in bringing about a commercial panic as that of compul- sory reduction of bank loans at a time when prices of merchandise are full- ing. From this viewpoint alone, we soem panicproof for the coming year. Easily Explained. From tho Florida Times-Union. “Why do they always say a cool million” dollars?** “Because it has such & way of! keeping aloof from most of u: —_— Of all European countries, Ireland wccommodates the fewest Jews. N. MILLER Main 1790 LA THMTEHTADaTIL | the new McKinley High School TYTYTY 0900696000046 A project which will substantially INCREASE THE VALUE OF THESE HOMES Only $1,000 Cash SMALL MONTHLY PAYMENTS 11O LA R0 AN 1060 PRI RSO0 TSRS LS LITO OO N. L. SANSBURY CO., Inc. 1418 Eye St. N.W. A bit of Olde England —in the National Capital We are creating an exclusive community here —with effective groups of Semi-detached English- type Homes that will appeal for their distinctive design—and their solid comfort. Miller-built—Which Means Built of the Best Six and eight rooms—with every modern refinement $12,950 to *13.500 Main 5904-5 Terms Easy to Meet Open, Lij hted and Heated All Day Sunday and very Afternoon and Evening —LOCATED— Just North of Cleveland Park, at Wisconsin Avenue and Van Ness W. C. ale 1&." N. Miller 1119 Seventeenth Street Main 1790 REAL ESTAT List your Real Estate For Sale and For Rent with this office, city, suburban and country. We are prepared to produce satisfac- tory results. Gardiner & Dent, Inc. 1409 L St. N.W. 3333383333333334555334833383883% AN UNUSUAL NEW HOME Exceptional Value Only One Left 6614 Piney Branch Road N.W. (Cor. Piney Branch and Venable St.) DESCRIPTION. Seven spacious rooms and attic, large front porch, sun parlor, sleeping porch, cak floors, built-in ice chest, pantry one-piece porcelain sink, attractive interior fu , large cellar, laundry equipment, automatic hot-water storage heater, buil garage, spacious lawns, many extra conveniences. Price, $12,250 Open for inspection daily and Sunday M.S. PHILLIP 1432 K St. N.W. Main 4600 Deal With a Realtor 329322828 4342822224242 4324 & * 333338332333338333338¢ University Park | Just beyond Hyattsville on the Wash. and Balto. Boulevard Unusual Features—No. 3 Assured Investment Value The nearness to Washington—the ease of access to and fro—the protecting restrictions— are all factors which are enhancing values in University Park—and attracting substantial people as investors. Lots 15¢ to 30c a foot Homes $9,000 to $13,500 Very tempting terms On the Wash.-Balto. Boulevard Park Office Open Every Day—Including Sunday Investigate and You'll Invest University Park Co., Inc. Phone Hyattsville 582-W One of the most com- plete and best built houses in this beautiful section. Six rooms and sleeping porch, tiled bath, one-<ar garage. House is weather- stripped and screened. Lot 20 feet wide. Open Sunday from 11 A.M. to 6 P.M. L€ Breunanger &Soxs Agents 706 Colorado Bldg. Main, 6140 “Deal With & Reaitor’ Nee