New Britain Herald Newspaper, May 6, 1922, Page 11

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BABSON ADVISES CLIENTS AS TO PURCHASE OF MINING SECURITIES Wellesley Hills, May 6.—When tsk- ed for ap oplnion on certaln mining stocks, Roger W. Babson, advisor to over 10,000 investors, today pointed out three basic prineiples that should be horne clearly in mind by any onc contemplating the purchase of (this group of stocks, Three Classes “The industries engaged In produc- tion of raw materials,” observed Mr, Dabson, "may be divided roughly into three groups; mineral, vegetable «nd animal. ““The first group, mineral, all of the varfous mining projects, Tfundamentally it s the weakest group hecause the investors' dividends from mining stocks come largely from his principal. A mining com pany i8 very much like a barrel of apples, when you takt one appie from the barrel there is one less apple i the ba Every dividend one gets from the stock of a mining company represents the return of a portion of the principal invested This means that If you have a stock, for instunce, in a certain mine that has a life of 88 1.3 years, and you receive a divi- dend of 6 per cent. on that stock, you are receiving a dividend of only 3 per cent on your investment, the other 3 per cent. is the return of your principal. Should Pay Highly “You see mining stock, to compare favorably with any other kind of stock, should pay at least three per cent. or four per cent, more to cover this return of principal. The only proper way for the investor to kecp his books is to divide the dividends he receives on mining stocks into two portions. One portion is to be credite ed to principal, and the other to in- terest. “There, however, is another reason why mining stocks are different from other stocks. When buying a mining stock one bets on what {s in the ground. Yet one never knows what there is in the ground until gfter he has spent his money to get it ont. An admission fee must be paid one knows what there is inside to see. As 95 per cent. of the mining companies never get ore on a paying includes before | profitable, this is gambling to the nth degroe, “Mining securities for these reasons represent the most speculative class o, fstocks, althongh most people do not appreciate this fact, A Metho dist who does not belleve in playing cards, may buy mining ocks, and it I8 considered perfectly all right. He would, however, g r better mental training If he played poker and in many Instances his percentage of loss would be less, “I do not mean to infer,"” continued Mr. Babson, “that mining stocks as class should not he purchased, only that they should not he hought on a hit or miss basis. The copper indus- try, for instance, is ahgolutely legiti- mate, a8 farming, building, or operat- fig a water power, It is here to stay When you buy an interest in the cop- per indust vou are getting into a legitimate buciness, in a lezitimate The distinction between buying into the indvstr 1d of buying in a company must, however, he Kept clearly in mind. Few Producers “There are several thousand differ- ent copper mining stocks on the mar- ket todny and yot 18 of these com- panies prodice 80 per cent. of the copper, 1y huying the stocks of these 18 companies, you can have an inter- “in 80 per cent. of the industry. he point is this. If you put g $1,800 into these 18 companies, you re not hetting on any one company. You are buying an inter in the copper of America, and the value of your stock depends not on whether copperis found here or there, but rather on the price of coprer as de- termined hy the law of supply and demand. “This particular group of stocks, representing the industry, naturally fluctuates with it. With a great sur- plus of copper on the market, as was the case last year, the stocks go to low levels. That is the time to buy your interest in the indust If you Iold these stocks until the surplus is > of copper goes up, these securities increase in price and should then be sold out. By fol- {owing this basic plan you can make stock W BRITAIN DAILY HERALD of two or three years, and sume practically no risk, As not planning on them as a permanent Investment, you need not hother with amortization, or the setting aside of a portion of dividends to cover dimin ishing principal, Other Similar Stocks “This is the safest way to invest in mining stocks of any kind Coal stocks, lumher stocks ,oll stocks, fer tilizer stocks, and pulp stocks, in fact the stock of any industry engaged primarily in the production of raw materials, the supply of which is con- stantly diminishing, should be placed in the same grouy “When asked the names of the 1§ companies who practically control the copper industry, Mr. Bahbson named several Including, Anaconda, Phelph Dodge, Utah, Kennecott, Inspiration, Ray Consolidated, Calumet and Heda, Chino, Nevada Consolidated, Green Cananea, Miami, Calumet and Arizo na, opper Range.” The recent Improvement in the gen eral feeling among business men is beginning to he reflected in general husiness conditions, For instance gen- eral business is 15 per cent. helow normal now, as compared with 19 per cent. below a week ago. you as CODLIDGE SPEAKS BEFORE EDUCATORS Vice President, at New Haven, Emphasizes Education New Faven, May 6.—Americi in- stitutions have come from the people but they have come from a people directed, led and inspired by the ideals which came from the colleges, Vice-President Coolidge declared be- fore a meeting of the New England association of colleges and secondary schools here today. “That those who founded seats of learning were taking a wise course is demonstrated both by rea- son and experience,” the vice-presi- dent said. “They wished to secure a certain action on the part of their these | tinued, SATURDA men do depends upon what they know and think, They wished to in- crease the knowledge and thought of men that they might live in harmony with the truth, There was no other course that men could take who he- lieved in freedom. . . . . | Bullders of Character, “No one can examine the history of | America calmly and candidly and ¢ cape the conelusion that in its main | features, it has been a success. The | foundation and support of that suc- cess had its main source, directly anc indirectly, in the learning, the piety and the reverence which American | colleges hiad been established to pro mote. They have been the great builders of character.” Great material prosperity of last few years had a tendency to alter the accepted standards of success, Mr. Coolidge said, and some of the un- thinking drew the hasty conclusion | that liberal education should he dis- carded for something practical. While there was urgent need for technical, industrial commereial and profession al schools these could not he a substi- tute for liheral education, “They cannot replace it, they up- plement S the vice-president con “They could not long endure without the support of those in fluences which flow from finstitutions | | dent said | ed to the spirit of commercialism, | clsfh of the | some feeling, also, truth stitution, Th | gernaut, | Kempton Park great jubilee handicap Y, MAY 6, 1922, to answer,” the vice- “If our colleges have not so eas -presi vhlL they have swung awqy from their or- iginal moorings of liberal culture, they have, to some extent, ceased to fulfill | their original purpose of supporting | the foundations of government and | religion, . . . " | T'here s conslderable | | puplic opinion which is by no means | lacking in expression that there is a tendency in some of our colleges to ¢ too much attention to the criti- administration of govern- ment and too little attention to the | examination and demonstration of the soundness of the fundamental prin- ciples of free {institutions. There is | that they are not effective 1ustructions in the | of religion.. . . | “The main emphasis of our edu- | cational institutions should be put on the soundness of the fillulllnrllhll principles of free institutions. f- government the rule of the people is a finality, It is the theory of our con- is only one gub: tute that can be made for it and that is the rule of a part of the people, Colleges were not fonnded to support governors, they were founded to sup- port the government.” If they fail in that they fail in one of their chiet pUrpos The colleges would fail of their pur- pose also," Mr. Coolidge said, “unless in addition to instruction in the re- lationship between man and man | there was also instruction in the re- | lationship of man to the unive “A bare fntellectual power is not | sufficient to meet the requirements nH life. The chief need of the world fs | spiritual power, force of character | which is the result of religious con- | victions." giving SILVER IMAGE WINNER Kempton Par! May 6.—(By Asso- ciated Press) Iver Image by Jug- out of Queen Silver, won the | of 3,000 sovereigns, one mile and a quarter run here today. Monarch was| second. The betting on Silver Image | was 7 to 2 and on Monarch 100 to 12 H’nancial News { PUTNAM & CO. Members New York Stock Exchange Members Hartford Stock Exchange (successors to Richter & Co,) 6 Central Row, Hartford, Conn, NEW BRITAIN OFFICE, 31 Tel, Charter 2000 W. MAIN STRE Conn. Light & Power 8% Pref. to yield over 7.35% UDD & CO. MEMBERS HARTFORD STOCK EXCHANGE HARTFORD: NEW BRITAIN: Hartford-Conn, 23 West Main S Trust Bldg., Tel. Charter 6330 Telephone 1815, We Will Buy American Hardware Co. Stock fellow men. They realized that what Yee e basis and five per cent. are very|s some profit over a period [ @homson fm &0 NEW BRITAIN HARTFORD New Britain National Bank Bldg. 10 Central Row Telephone 2580 Telephone Charter £$000 DONALD R. HART. Manager Mcmber Hartford Stock Member N. Y. Stock Exchange Exchange. N NEW ENGLAND TELEPHONE CO. RIGHTS 5 RIGHTS PLUS $100 EQUAL 1 NEW SHARE Rights Expire June 19, 1922 SOUTHER Rights selling at $2.00 each equals $110 for new stock Rights selling at 25 each equals 11134 for new stock m{:m.s selling at 0 each equals 112% for new stock Rights selling at each equals 1133; for new stock Rights selling at 3.00 each equals 115 for new stock Rights selling at 25 each equals 1161 for new stock Rights selling at 3.50 each equals 11733 for new stock Rights selling at 3.75 each equals 1183 for new stock Rights selling at 4.00 each equals 120 for new stock Rights selling at 4.25 each equals 12114 for new stock Rights selling at 4.50 cach equals 12214 for new stock Rights selling at 4 each equals 1233 for new stock Rights selling at 5.00 each equals 125 for new stock HAgh Low Close | Dividends 8% Annually Rights Bought, Sold and Adjusted The Miser Has The Wrong Idea AVING doesn't mean hoarding. Miserliness is the saving instinct carried to an extreme. JOHN P. KEOGH Member Consolidated Stock Exchange of New York STOCKS Bridgeport Danbury New Haven Middletown BONDS Springfield Direct Private Wire to New York and Boston G. F. GROT'F, Mgr.—Room 509, N. B. Nat'l Bank Bldg.—Tel. 1013 side is You can save without denying yourself the necessities of life or a reasonable share of its luxuries. Saving is simply thrift—the avoid- ance of useless cxpendlture, and a systematic method of putting aside regularly a reasonable ol expert. portion of the money you earn. N R R forecasted for the coming few will mail the u for three Waterbury Cove introduce this publication, w One of the remarkable things about systematic Texas Ol Bullotin to y tely Free. Write saving is that it seldom means any sacrifice. A "'“"'(";"";m“'"M"w'm g o small part of your income saved regularly is not likely to be missed. for it today. The Hartford-Connecticut Trust Company Corner Main and Pearl Streets, Hartford, Conn. LJ.DI[‘\I $2,000,000.60. Surplus Funds $2,000,000.00 Safe Deposit BO\es, $5.00 and upwards. Scttlement of Estates. k Foreign Exchange to all parts of the world. Y LETTERS CF CREDIT — GENERAL BANKING Bank by mail. It is safe and saves time. An Interest Paying Account with this bank will prove a convenient method for systematic saving. make & financh There those who “now to live and y EXGHAN&E REP“BTS’ they do not detract from it. There is | . ¥ ; far more of danger, more f menace, | . Selling of oils, especially Mexican ter it wisely, They know well how | ;’"“;’””"‘Fm of };”ces GitinEodayie to make a living but they do not, Prief stock market session. This economic life of the republic ‘l']‘”’i’ “"‘" K PSRl mireD and pfd. | Education ¥sseptial. here were no changes of importance who have had a liberal education, | There is here and there a genius of | Am Bt Sugar sideration, if his subordinates are ex-| Ab Sumatra Tob amined, if the means by which he ac- | Am Tel & Tel ing that he uses in others what he|Ana Cop ..... does not pos himself. But to cite | At Top & S F . benefit of the fow fortunate tndividu- | Beth Steci B ... 70 als who may happen to attend them; | Canada Pacifio now benefit directly, every individual | Ghile Copper benefits indircetly. ICiiins Cop e Buba Oane Su: .. FREE FOR THREE MONTHS |0 am T he whole field of de- | 1n" Cop ingly rich oil fields |Inter Con months A mers | Pacific Oil 1582 Waggoner Bldg. Fort Worth, Texas | > 5 Ken Cop — | Lack Steel | Missou Pa |N Y Central 4V, Interest [ Penn R R Pittsbu Royal D, N. Y. A4 0il Ref 331 liberal educs who are unable to| | are 10w how to make a 1|\n\" 7 ittle positive contribu- tion to the general fare, at least from those who have the power which (‘1;‘ "’""’ e ‘”t thiciless prominentl great financial siccess brings and yet | S2Mestc Jssues a “"”f:‘f EEdeisions are lacking the character to adminis o 3-points, caused’ temporary know how to live. The Caesarism of | :”“"T“:f“‘ e °f}f"‘ "‘-d gaiad ot Lo the present day does not lie in the |} ‘“‘”'"(:‘I”i“ cndependentistecispats military life of the republic but in the | 2ntic Gulf, Famous Players, Postum If the economic life of the nation ‘Jnth': rall l’(’,“‘f““"‘ ahe “]"s‘;’fn‘n"fi be examined it will be found to be| SrouE: Sales approximated. £00;000) largely under the direction of those | SHares: invention or organization Who might | Am Can & 45 appear to be an axception. But if|Am S & Ref ... those around him are taken into con- | Am Sug Ref com complishes his ends are taken into ac- | Am Tob count there is no doubt of i ippear- | Am Wool such examples is to fail to compre- |At Gulf & W I . 3 hend the question. | Bald Loco 11814 “Colleges are not for the exclusive | Baltimore & O . 479, they are for the moral Support of §0- | (hes & Ohio . ciety and for the mai ance of the |cpi Mill & St P . ¢ state. While individual may|copi g 151 & P Answers Criticism, Gon Gas “Criticism from the other Corn Prod Ref . { Crucible Steel JBIBIB: o' s i Erie 1st pfd .. Gen Motors . | Goodrich (BF) . Issued weekly and edited by oll and finan- | Gt North pfd events are | Tntar Con pfd AL S In Mer Mar In Mer Mar pfc Int Nickel For 12 Years Gil Operators and Brokers |10t I ] | Kellg Spring T | Lehigh Valley i 1 | Mex Petrol Deposit In This Siavaie & Mutual Savings _ 5 INYNH & < g NYNHG& Bank Paying [ North Pacitic | Pan Am P Ray Con Cop Reading .. Rep I & 8 ..., 88 South Paci South Rail . Studebaker Co Tu\v 1000 Trans Oi Union Pacific United ¥ Open Saturday Evenings 6 to 8 o’Clock Standard Time Wiilys Overland Safe Way to Borrow Money—-—We Lend Money [ , e | - ing_ steady l'mnknnwnl. or (Putnam NS; Of New Britain THE \llL\h s Organized 1862 'PHONE 4 . 7 Be-Por Assets $12,960,390 _\n ‘th and RNITURE, withont removal, to persons Ean incomes, witheut inguir f emplo. Ao 1 PAYABLE IN & to 15 MONTIIA ALMEN' 1 based upon actual unpaid bal . for the EXACT TIME YOU HAVE CONFIDENTIAL, CONSULTATION BANK-LIKE SERVICE- THIS INSTITUTION Is financed and directed by business and professi n ICE, and not solcly fe u“l‘ VERY FAIR, A 1 ot nTvom DE JORROWERS W MED; CONCE! 10N 1 l"l‘ L. HELP YOU SOLVE YOUR PROBI 1 SATURDAYS, 8 to 1, and HOM com dncted in n spirit_of public SEGV- AT: STRICTLY CONFIDENTIAL AND RATE YOUR OBLIGA- MS; PRIVATE INQUIR- CALL PERSONALLY, or WRITE, or I L s, \E\\ BRITAIN 1-9- Beneficial Loan Society} ROOMS 104-5 PROFESSIONAL BLDG. 87 WEST MAIN ST (SECOND FLOOR, RIGHT). Licensed, and Supervised, by — | Peck Stow & Open 8 to 3. Saturdays 8 to 11 Monday Evenings 6:30 to 8 At Wellesley College, scrub women. Just a stunt they do each ard Screw | Traut & Hi | Union Mfg Co | stantey Works ¢ chapel steps at six a. m. State Bank Commissioner. Bonded to the State of Connecticat.

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