The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1889-02-14
HOW TO INVEST $500,
The Way Some Well Known Men Would
Employ it If They Had it to Spare.

"What is the best investment for
sum of $500 to $5,0OO?"
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 eve as he answered:
.Put i. into Lake Shore bonds,
guaranteed by the New York Central
and Hudson River, and 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: at 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
eral advice, l 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. !"
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.
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, but you ca: iot 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
my children and grandchildren. They
would find that when they came into
the property that its value was so en-
HANGED that they would be possessed of
adequate fortunes"
CYRUS W. Field was chatting merrily
with legal friend when he heard the
question. He glanced up quickly
with his Manhattan way-off eye to see
whether new scheme for extracting
a pointer was being tried, and then re-
sponded: why, how do you expect
me to answer such question:? He,
he! | don't know. Ican't answer it."
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 triie alb
surd.
Deacon S. V. White discussed the
question argumentatively. He said:
During the recent depreciation in the
marketable value of railway invest
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
and full prices maintained. In ex-
PLANTATION l would say, first, bond
holder is 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 stakeholder
| is only partner in a property whose
assets are mortgaged. Such stock may
depreciate in value under adverse cir
cumstances, and involve serious loss
in principal invested, and reduction
of dividends as we'll On bonds of the
same property, however, the rate OF
interest is fixed and obligatory. In
case of default the bondholder is pro-
tected, while the stakeholder has vir-
tually no security. Secondly, to cap.
italize funds expended for better
ments, ETC., it is not an unusual pro-
ceeding to increase the stock of a cor
poration. This may be necessary
| expenditure, but as a rule it does
not enhance the value of the stock,
but invariably increases the security OF
| the mortgages. There are numerous
| instances where such large amounts
have been expended for alleged better
| ments as to make the payment OF
dividends impracticable, while bond.
holders have reaped all the benefits of
| the expenditures. The bonds of most
of the large systems of roads in this
| country, notably on what are known
| as the Granger roads have recorded
an unprecedented advance during the
past four or five years, while the stocks
| of these corporations have deprecated
| Ill value from 20 to 40 per cent. Pri-
| marily the investor seeks safety. The
| payment of principal being assured,
| the rate of interest is the next import
ant factor, and this rate usually aver
| ages from AZ to 81 per cent. in bonds.
A safe investment for any man is some
| of these bond securities"
Henry Clews said: IAN A l first
mortgage railroad bond is the best Sc
curity for an investment of $500 TO
$1,000, because the interest is paid
| every six months and the principal
can be realized upon when needed on
short notice. '-Ne1U York Correspond
ence 81. Louis Globe Democrat.