The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-01-08
The Investment Of EarnInes.

A New York paper recently asked of over
half a hundred representative business men
OF the country, including such men as S. V.
White and Chauncey Depew of New York,
for advice as to the safest and most profita-
BILE investments for the man or woman of
small means. Many kinds of securities were
recommended: railroad bonds, municipal
bonds, mortgages on real estate in both East
and West, and titles to real estate in both
East and West. But not one of these men
recommended railroad stock as a desirable
investment for a person of small means. al
though many of them have had large and
varied experience in that form Of invest
ment. There are railroad stocks that are
good Investments undoubtedly; but in this
country there is that about them that does
not recommend them to investors who can
not take risks. Stocks apparently gilt-edged
have suddenly failed to meet expectations.
because, under the reckless system of build
ing new railways in this country. and under
still more reckless management, the business
of the lines which they represent has sud
denly been diverted, or the earnings absorbed
In Improbable ventures. A remarkable in
stance Of sudden depreciation in a railroad
stock Of good reputation was cited last week
in the letter Of well known Boston Jour
nalist to the Hartford Courant. 81 wrote
you in previous letter." says "Templeton''
in his letter, show much Boston people had
suffered from losses by the failure of West
ern railroad dividends and the depreciation
in Western railroad stocks. There have
been some important failures from this
cause. know one man who was worth a
year ago 100000. He thought he was
straight on the road to be worth million.
He is worth nothing now. 1t has all gone in
the falling off of. Atchison and Topeka. 1t
caught him before he was prepared, and the
margins took everything he had. Another
had just built an elegant house. He could
not mortgage it for enough to save him.
There are many examples less known to the
public. One physician is reported to have
said that there are ten families among his
patients at the Back Bay territory living in
luxury, who find nearly their entire income
cut off. They will be fortunate If they do
not have to sell their real estate at a sacri-
fee. Some Of them are seriously thinking
of trying to keep it by taking boarders
There has been the greatest faith In Atchi-
son in Boston. The stock was held on every
MANU- hcho' OuI ucdNlebt CAPITALISTS naQ IL,
and their example encouraged others to in
vest. There are many who have confidence
that 1t will come up again, but in the mean
time what are those to do who depend on it
for an income?" What is true of Atchison is
true Of many other American railroad secur-
tiles. What reason is there for this? Why
should not the stock Of an old established
railroad. in prosperous country, remain
stable investment? 1t is because the public
for whose good the roads ought to be man
aged, have too little to say about that man.
agement. Parallel lines, consultations and
leases are allowed, often for no other reason
than because the ambition or greed of mana
gers dictates that such shall take place. Par
allel lines, leases and consultations are all
useful and advantageous TO the public under
certain circumstances; and under certain
other circumstances they are not. And I'M
til some way can be devised whereby the
public may exercise needed supervision
and restraint, the building and management
OF railroads, especially in that great West
ern field, Is likely to continue to be great
scramble with the attendant possibilities of
great gains and great losses. So, it is not
strange that the experienced capitalists of
the country do not recommend railroad
stocks as good investments. The time may
come when they will be looked upon as the
stocks In other we'll established business en-
terprises but II is not yet.