New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-03-19

ENORMOUS LOSSES IN THE PAST FIFTY WARS
MORALS DHAwN FROM TnE LEssON-RMLwAY
AND OTHER STOCK INVESTMENTS.
70 the Edttpr Or Fhc TrtdNHe.
SIR: 1t Is very much to be hoped that the
lessons people are learning will powerfully check
the formation OF joint stock companies whether f0f
the construction Of railroads, for manufactures or other
wise The amour; Of money actually sunk III these un-
dcrtapgs during the last half century has been some
Thing enormous. ASd It i worthy of special attention
that the sales at the stock Exchanges afford 10 falr
criterion for Judging. They exhibit depreciation enough
bnt vastly less The reality Hundreds thousands OF
ent.rtrses have completely failed as never TO be
heard Of at the stock board. They appear however IN
anctoncors' sales Blocks OF stocks belonging to estates
O, drccdents that need be sold 10 close the estate,
turned the auctions and are next day quoted in
some such fashion loo shares y. Y. H. company,
% cents for the Ot-and go on
The trouble this, that III small companies the officers
salaries eat up the profits, while for large companies
seems exceedingly difficult obtain :he honesty and ex
ecutive talent necessary II is undoubtedly true that
There was vast amount Of work necessary 20 be done
that could he done IN other way; railroads To be
built, manu- acturcs to be put under way on large
scale. And a generation ago there was not wealth
enough N the country permit OF manufactures being
undertaken very large scale except by the cOmD
nation many small means IN companies mat Is al
chan. ed more railroads have been Oult imam are
wanted or can fiud paving business; ana rs or man
features individual aud partnership, capital Is now able
10 grasp thrm and conduct them with much more sue
cess than can be ATTAINED by companies.
All this results from the fact that people are not
fled with the per cent 10 he had oubOnd
and mortgage III the different States, and, hoping FOR
more thew enter stock enterprises, from which, on
the average do not gCt three Ger crnt besits
in very many ca losing the entire principal II
would probably De not much to say that the amount
of capita sunk in oil suc4s copper stocks coal ana
other mining stocks, bankrupt railways, bankrupt manu-
featuring companies and all other jUGt-Ock concerns
clear out Of existence, II equal 10 Inc
vsuc of stocks quoted al the board sales and FUR
tuer il we take all the stocks now sclin1 M the board
.glrs they Will hardly 30 per cent OF par
The inc liable inference !, that OF all money which dur
ing the as century. las been put into stocks three
fOuTihs Is entirely sunk.
And therefore / would say 10 all persons who have
money to invest avoid the Stock market son would
pcs:iance aud especially DO not Dc drawn MO ne"
undertakings. Rather Bee content With ega! interest ana
good mort cages; 81 your money is 10 20 into active
business keep unaer your own eyes. manage II your
self: won can take far better care OF 10 than tIc pres
den! 1i q company Who often does not Aauw what hlh
cashier is doing. who is conducting tremendous nght
with rival concern, Of which al the excitement Is Tor
him and the you. Above all, money longing
to womau a shOud ever be pat INTO stocks or
even company bonds. think women are more eager
even than extra interest, and easily luduc'u
10 invest the most dan y.Uus ways The result OF when
d, misery and Keeping boarding hOuse, where comfort
and iud,prudence coud have been secured hy common
sens. and moderation. IN word, more Joint stock
companies. An OLD ObsLE'Lh'
gbfl1de{ghtn. March 9, 1877.