Evening Star Newspaper, October 7, 1926, Page 31

FINANCIAL. MEN AND MONEY By M. S. Rukeyser. (Copyright. 1926.) Donald MacGregor Stern, who rose from the rank of statistician to suc- cessful financler in a vear, has just returned from Europe with a minority report about the tipping evil. At the Kurhaus, in Interlaken, Switzerland, Mr. Stern entertained friends at tea. In paying the check he gave the waitress two Swiss {rancs —not quite 40 cents—as her tip. To his amazement, sh> said: “That is too_much,” and returned 1 franc. As a matter of fact, the tolrist is confused in going from -countries with depreciated currencies to those on a gold standard. In France and Bel- glum the franc is worth less than & cents at.the present rate of exchange. Even financiers are puzzled when they cross borders. E. H. H. Simmons, president of the New York Stock Ex- change, recently complained in Paris that he had difficulty in determining e fair gratuity. The average French serving person, eager to get all the traffic will bear, frequently grumbles, no matter_how large the proffered tir may be. Tipping in Europe has been bereft of all subtlety. The worker claims his pourboire as his due. Stern Turned the Tables. In his own development Mr. Stern, who once dreamed of becoming & play- wright or an editor, turned a personal setback into the foundation of his succhss. He was statistician for Ham- bleton & Co., New York and Baltimore bankers. During an economy wave the bankers decided to get along with- out the luxury of a skilled statisticlan. Instead of teiling the world about his troubles, Mr. Stern decided to gather data for his own purposes instead of for others. It took him less than a vear to test the merit of his idea, and n the second full year he earned as much as he would have made at his old post in 18 years. The business currents move rapldly in Wall Street, and striking personal successes cf this modest kind are per- petually taking place, unheralded and unsung. Even as a boy Mr. Stern took his work serously and sought to under- stand the major problems of the en- terprise for which he toiled. He never was satisfled with merely performing the task immediately before him. Be- ence in being fired, he said, paved the way for much better jobs. THE BUSINESS OF GETTING AHEAD Investing Through Experts. It is not surprising that you who are not bankers are unskilled in in- vestment matters. The plumber lacks specialized medical knowledge; the minister is deficient at mechanics; the chauffeur is untrained in cooking; and the business man does not at- tempt to plead for himself in the court room instead of g a lawyer. This is an age of specialization, and the man who succeeds best sticks to his last and hires experts to do unfamiliar tasks. The public losses in the field of investment reach $1,000,000,000 a year, and could be eliminated to a large extent if the layman never parted with his funds until he sought competent, authorita- tive, impartial advice. It is just as costly- for the ordinary individual to invest his money on his own as it would be for him to try to fix the hairspring of his watch with a pen- knife instead of taking it around the corner to the jeweler’s. A new profession of investment counselors, who seel nothing but ad- wvice, is springing up. The practition- ers, of course, prefer the patronage of large investors, but banks and in- vestment houses are equipped to ad- vise the man with only $100 to invest. There are indirect ways also where- by you can at virtually no cost en- list the service of the most skilled investment experts in the country. First, by depositing funds in a sav- ings bank, you are acquiring a pro rata stake, in accordance with the size of your deposit, in a diversified list of high-grade bonds and mort- gages, which arc selected by expert buyers in conformity with definite rules established by State law. As a depositor, you shift the problem of investing your savings to a specialist. You get the highest degree of safety in this way, but must accept a modest interest return. A savings bank ac- count should be the foundation of your investment structure. Secondly, you can get the benefit of expert judgment by buying shares of well established and successful banks, trust companies, and insurance com- FIRST MORTGAGES ’ FOR SALE panies. The assets of such fiduclary institutions consist to a large extent of diversified stocks and bonds and short-term evidences of indebtedness of other business enterprises. Yau get automatic riversification by buying shares of good financial institutions. You pick only once, and then a skilled financial officer of the company works for you. There are of course varying degrees of desirability among bank and insurance stocks, but shares of financial institutions with a long record of good performance behind them possess investment merit. Thirdly., you can shift the invest- ment burden to an expert by pur- chasing shares of well managed invest- ment trusts. The investment trust idea is relatively new in this country, al- though it has been successfully car- ried out in England for generations. Function of Investment Trust. The investment trust raises capital by selling its own promises to pay or partnership shares to the public. The funds thus raised are invested in the securities of other corporations— railroads, industrials, public utilitles and banks at home and abroad. The investment trust functions like a savings bank, except that it is freer from restrictions. The average invest- ment trust offers the promise of a REAL ESTATE LOANS ANY AMOUNT l APARTMENT HOUSES 2 0 BUSINESS PROPERTY RESIDENCE LOANS AT LOW RATES FRED T. NESBIT 1010 Vermoct Avenue N.W. Main 9398 higher return than a savings bank, but the price that the investor 8 is the assumption of greater haza: i Fourthly, if you are interested in first mortgages, you can invest in a diversified group of them by buying, the shares of a well managed local building and loan association. Fifthly, if you wish to save regu- larly and do not desire to trust your own judgment, you can purchase an endowment policy from a life insur- ance cogpany and let the company experts 'invest your surplus funds, which you turn over in the form of premiums. There are a varlety of ways in which you can enlist the services of competent investment specialists at small cost and thus assure yourself that your nest egg will grow. A safe investment keeps getting larger all the time through the masgic of com- | pound interest. It is as easy for the thrifty to build up a competence as to learn the A B Cs, yet ever so many never grasp this simple truth. (Covyrirht. 1926.) HOME OWNERS all Loan 704 District National Bank Blds. Dependable Income First Mortgage Notes are an ideal in- Money to Loan h% by d of on real estate. i Store Locations Warehouses Office Buildings Apartment Houses Offered for sale only after careful analysis by our City Central Property Specialists 713 14th Street, FINANCTAL. The Royal Promise The birth of the idea of the mod- ern promissory note occurred during the Bark Ages, when the monarchs- in order to replenish their treasury often borrowed money from their wealthy subjects, giving them in re- turn the “Royal Promise” to pay. Unfortunately, the monarch often either forgot about his promise or was dethroned before the money was to be returned. Needless to say that this type of security was not very enduring. Today, First Mortgages are some- onc’s promise to pay secured by a parcel of that someone’s real estate worth generally about double the amount promised. There is now no question about his forgetting his promise, because he has pledged val- uable property which heywill lose if he should forget. This is why the investor takes very little risk, today, in investing in First Mortgages. And through Swartzell, Rheem [v, 6%2% T LS INVESTORS BU In denominations of $250, $500, $750, $1,000 and upwards, se- cured on improved real esta situated in the District of Columbia. JAMES F. SHEA 643 Louisiana Ave. N.W. fore studying journalism at Columbia University Mr. Stern, at the age of 18, worked for a concern of credit inves- tigators. He was in deadly earnest about his work. His sincerity outran his sense of diplomacy. Finally the head of the firm told him that his gervices were no longer required be. cause there was need for only one president in the concern Mr. Stern’s recent speclaity has been acting as broker for the sale of local gas and water companies to nation- wide public utility holding companies. Trend Toward Concentration. Inoidentally, the trend since the war has been toward the concentration of all public utilities into the hands of a few large operating and management companies. In general this has been with the approval of local communi- ties, which felt they were getting bet- ter servicg. Five years ago the hold- ing comphnies stayed in the back- ground, playing up in their advertis- ing and public relations the name of the local operating company. But now there is a new feeling, and the holding companies stress the fact that ‘he local companies are members of a large management group capable of giving superior service. In the electrical fleld the drift tas been toward unificatior through finan- clal and operating agreements. The idea of super power has been much stressed. The system {8 a means of interconnecting adjoining in- dependent power companies o that in an emergency one can give powsr to the neighbor. Companies from Pitts- burgh to Chicago have become inter- connected, and soon Pittsburgh will be tied up with companies ranging all the way to Texas. The menace of super power has been hinted in political quarters, but there appears to be safety in the fact that rates are determined by public com- misslons In the various States, which can limit the power of moncpolies. Mr. Stern’s experience is typical of how enterprising men capitalize re- verses. The faflure in business always com- plains of adverse conditions. The suc- cessful man,-on the other hand, per- petually fights conditions, climbing upward over hurdles. Hobby Medieval History. hobb; istory and 5 look: Tk up to any an option on his prope endeavor to find a buyer for it bond salesmen sell certificate vestment medium for people whose cap- ital is a limited one, and when every dollar must produce an assured amount. And, unlike many mediums of invest- ment, they're never affected by fluctu- ating markets and industrial disorders. The reason for this is that each parcel of improved real estate securing the in- vestment is located in the Nation's Capital. & Hensey Company he can now receive interest at 6% on these safe securities. - RITY 17th ana Eye Sts. Rooms, $50 each. toot rats se low ‘as $158 ver_foot. [ WIS doce slere AATA A A s ( Swartzell, Rheem & Hensey Co, Mort§age Barkers 727-15th. Street, ... WashingtonDC. We will gladly receive _ and give prompt attention to applications for Loans on Washington Real Estate Current rates of inter- est. Should you have Money to Invest —we can also take care of you. Our experience, ex- tending over a period of Thirty-five Years —insures your protection. Percy H. Russell Co. 926 15th St. N.W. EDWARD B.SMITH & Co. ) Members N. Y. Stock Exchange NewYork Phiiadelphia Bosten HEARSAY— OR FACTS? So many investors have had their financial record “in the red” because of banking on hearsay. “I’ve heard so-and- so is good”—and then, often, the stock is never heard from again. In our safe 6%,% FIRST MORTGAGES —your investment is fact- guarded. Definite real estate value secures your principal; experienced, successful man- agement assures your interest. Choose them, and you invest in paying facts. e having been received in excess of the offering, this advertisement appears as a matter of record only Dividends Exempt from Present Normal Federal Income Tax $1,500,000 Tide Water Power Company 7% Series Preferred Stock -assessable Full paid and.non. assets and dividends Par Value of Shares $100 Dividends payable moenthly. Redeemablo as a whole or in part st the option of the Company on the first day of any moath thirty days’ motice at $115 per share and accrued, uapeid dividends. nlvll-fim-l.l.nuunm"r:apl-rzfinu:uu TRANSFER AGENTS REGISTRAR Tide Water Power Company, Wilmingtos, N. C. A E. Fitkin & Company, 165 iway, New York City Mr. F. A. Matthes, vice-president of the Compeny, summarises kis letter to us as follows: BUSINESS AND The Tide Water Power Company furnishes to the public withor i J ; Vi Furni t public without competition electric light and TERRITORY: ant in Wilmington, N. C., vicinity, with an aggregate population of approximately 71,500, ‘-————m o fi.: mm‘u all d;g !:il ln:“l mt’l railway sen;:ce in Wilmington. Its properties include a a combination a ater t, i i i i iy fi:l‘lhu o e nd w: gas plant, with an extensive system of high tension Through its sul , the Pinellas County Power Company, electric light and power will be served to a territos in Florida extending from St. Petersburg northward along the West Coast and Lhrg:gh Central Florida to the Georgg gt::;ni;ei n::vllllx:ea: lggreg:lt:“ pypulmanfiof lpproximgul}; 243,000. The properties of the Pinellas County Power steam ric gen~-iting piant at St. Petersb i i bt il ot gen A ufi :- at etersburg and a hydro-electric generating plant at Dunnellon, The construction program of the s A Third of a Century Without a Loss The Bank of America, New York City Investment Securities is the study of ) 0 Corporation Financing B. F. SAUL CO. Commission Orders light and power companies. ing as an agent, Mr. Stern sells the properties themselves. Hence the commissions are larger. Less than two years ago Mr. Stern was digging up facts so that his employers could put over big deals. e finds it more fun to work for bimselt. Talking of being fired, Don Seitz, who was Joseph Pulitzer's right-hand man on the business side in the man- agement of his newspapers, was dis- charged three times before he entered the employ of Pulitzer. Each experi 1508 H St., N.W. WASHINGTON James Donald Cassels £ Manager Main 2100 925 15th St. N.W. Convincing Evidence in favor of tem now under- way inFlorida involves the expenditure of over $6,000,000 and is expected w'be completed during first quarter of 1927. It includes the cons:s:ction of a 25,000511, w. steam gen- erating station at Inglis; the installation of a 1,600 k. w. hydro turbine with accessories in the hydroelectric plant at Dunnellon; the cmtmctiop of roximately 70 miles of 110,000-volt steel tower transmission lines to connect the ?::i':n at St. Petersburg, Inglis and on; and the construction of approximately 200 miles of additional high e pole transmission lines to enable the Company properly to develop the territory to be served in Central VALUATION: Based on rts and appraisals by Sanderson & Porter, New York, Engi i , Engineers, and adding subse- e quent upimoe,xpmdllum made to August 31, 1926, the properties of the Company mdn‘iu sub- aries - cash to be deposited with the Trustee under the First Lien Refunding Mortgage for construction pure poses, show a combined valuation substantially in excess of‘all Bonds and Preferred Stock outstanding. EARNINGS: Year Ended August 31st, 1926 .. $3,502,258.77 .. 1,600,391.89* .. $1,901,866.88 .. 769407.50 .. $1,132,459.38 72,776.08 Annual Dividend Requirements on Pr ufl?rs.g.ek( cluding .Ul)gz,'gfifig *Dividends amounting to $63,676.81 paid by the Pinellas County Pe [of 7% Preferred Stock not owned by T&:‘ ‘Water Power Cem;nunyy-reoi::lrude:lmiv';.:;e;nfi}:; expenses in the above statement. Earnings for the year ended August 31, 1926, available for Preferred Stock Divid times dividend requirements on Preferred Stock. T N The earnings do not fully reflect the benefits to.be derived from the greatly i b ; it g - greatly increased capacity resulting from the con- DIVIDEND RECORD: The dividend record of the Company is most’ an unbroken record in the payment of divid eighteen y and on {ts Common Stock for the last sixteen years. PUBLIC RELATIONS: Public relations are excellent and are luuu;ti by the policy of the Company in encour- 5 aging investment by consumers in its securities. Good i i tions are the natural results of this plan. i e e LA DT MANAmENT: The have the advantage of expert engineering advice and are under the direct —uulldu. vision of the General Engineering & Management Corporation, successful u;enwn of m The New York Life Insurance Company First Mortgage Loans- On Improved Real Estate in the District of Columbia and Nearby Suburbs in Montgomery County, Maryland 3 Years, 5 Years, 10 Years 52% RAanDALL H. FAGNER: & COMPANY Incorporated. MORTGAGE LoAN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 This Preferred Security Now Yielding About 6%7% The 6%% income you get from an investment inCities Service Preferred stockisprotected by: 1. The 15 years’ successful record of a $609,000- 000 organization. 2. Net earnings three timesasmuch asdividend requirements. ‘ 3. Equities of about three times its market price. g 4. Steady, diversified business in necessities— electricity, gas and petroleum products. 5. Ready market—your security can be quickly turned into cash. Send for a copy of booklet, Safety and 624% for Your Money, which describes this preferred security and the $609,000,000 organization behind it. ] o ‘ TR Ol s foyoe oo UEIE (LIS 11} = . Hen herty 803 Wilkins Bldg. ‘Washington, T D.C. el. Main 6189. Office Buildings Business Properties Homes Apartments ressive. The Company has maintained on its Preferred Stock for the last Trust Duties —of every character are dis- § charged by this bank with the H#i i same efficiency that has made “Metropolitan” banking service standard, for over a century. ¢ Conference about Wills or other fiduciary matters invited without obligation. i National Seseseamss Metropolitan Bank —112 Years Old 15th St., Opposite U. S. Treq:ury wmfl.-:—.«m-fibafii—-flhw- Messss. ind, Elliot Mo Ci ), Jaschel & Brown e " 1955 by Meson: Boeren ‘:,Z'-?u.“(.‘:am’fi‘;cu.' Sl L T T It is expected that Permanent Certificates will be available about October 15th. Price 97% and Accrued Dividend STROUD, W & Co. EASTMAN, PiLLoN & Co. A. E. FITKIN & COMPANY ‘The information and statistics contsined in this sdvertisement obtained o 0% o it have been .,:-—e-lhlnhh-mbn 1t & Manson of Philadelphis for the Benbers N Compound Interest Paid on Savings N ————