The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1889-02-14
HOW TO INVEST $500.
The Way Some Well Known Men Would
Employ 1t IL They Had 1t to Spare.

"What is the best investment for
sum of $500 to $5,000?"
The question was asked of many
capitalists and financial leaders in New
York and through the country. Some
of the replies are interesting and sug-
gestive:
Chauncey NJ. Depew, of the Hudson
river road, had just left a conference
with his vice presidents when the ques-
ton was asked him. and business was
in his eye as he answered.:
'tPnt i: into Lake Shore bonds,
guaranteed by the New York Cen trail
and Hudson River, aud save the inter-
est to buy more" Then thinking if
every body followed his advice there
would not be enough bonds to go
around, he. continued: 1T depends
a great deal on who the man is you
advise. You must take into consider
alton his training, his nature, and the
circumstances about him. What is
one mans food is another mans poison,
and if he does not go at it in the right
way. or is not able to, he may lose in
stead of making money. But as gen.
eral advice, would tell him invest in
railroad bonds, put the interest in
them. and by the time he is an old
man he would have enough to live on. r
"If | had the money to spare" said
Roswell p Flower. Il would invest in
real estate in the upper part of this
island and in the annexed districts. l
consider this the greatest opportunity
for an investment, much better than
investments in railroad securities and
| bonds. You can duplicate any rail-
road in America, hut you cannot du-
plicate an inch of the ground on Man
haitian island. If my income was such
that could afford to l would pay the
taxes on this real estate and leave it to
nv children aud grandchildren. They
would fin,t that when they came into
the property that its value. was so en-
haneed that they would be possessed of
adequate fortunes"
CYRUS W. Field was chatting merrily
with legal friend when he heardrt the
question. He glanced up quickly
with his Manhattan way-of eye to see
whether a new scheme for extracting
a pointer was being tried, and then re-
sponded: why, how do you expect
me To answer such a question? He,
he! | don't know. Ican't answer il. !"
1t was thought he might remember
how the beginning of two or three
fortunes he made were less in value
than the sum he was asked about, but
he laughed as though the idea of in
vesting $500 or 5000 was a trihe abb
| surd.
Deacon S. V. White discussed the
question argumentatively. He said:
'During the recent depreciation in the
1 4, H.. Of
ment stocks it is noteworthy fact
| that the bond market has in no way
reflected this decentralization. On the
| contrary, mortgage bonds of the same
properties have been steadily absorbed
aud full prices maintained. In ex-
PLANTATION | would say, first, Il bond.
holder is n creditor. and in well-select.
ed bonds holds lien upon the proper.
ty whose value is much in excess Of
the amount loaned, while a stOckholdel
is only a partner in Il property whose
assets are mortgaged. Such stock ma,
depreciate in value under adverse cir
eumstances, aud involve serious Loss
in principal invested. and u reduction
of dividends as well. On bonds of the
same property, however, the rate o
interest is fixed and obligatory. Ii
case of default the bondholder is pro
tected, while the stockholder has vir
tually no security. Secondly, to cap
italize funds expended for better
ments, ETC., it is not au unusual pro
ceeding to increase the stock of cor
porati0n. This may be a necessary
expenditure, but us rule it doe
not enhance the value of the stock
but invariably increases the security o
the mortgages. There are numerOu
instances where such large amount
have been expended for alleged better
ments as to make lhe payment o
. dividends impracticable, while bond
, holders have reaped all the benefits {
the expenditures. The bonds of mo:
of the large systems of roads in til
: country, notably on what are know
as the Granger roads have recorde
an unprecedented advance during th
past four or five years. while the stocl
of these corporations have depreciate
in value from 20 to 40 per cent Pr
marily the investor seeks safety. I'll
! payment of principal being assured
: the rate of interest is the next impor
: ant factor, and this rate usually ave
ages from u TO 81 per cent. in bond
A safe investment for any man is SON
of these bond securities"
|, Henry Clews said: IAN A l fir
r mortgage railroad bond is the best s.
Y curity for an investment of $500 {
!, 5000, because the interest is pa
7 every six months and the princip
t can be realized upon when needed c
0 short notice. ."-kes1 fork Carrespola
sass St Loxis Gt0hs pSa9QcrGt,