Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1890-01-06
LAN0AsrER, PA. January 9. 1880.
Inyestlns Nlllloaa.

Investing Millions.
II Is said that within the last year and
half over one hundred millions OF
dollars Of English capital has been In
vested In industrial enterprises an tnls
country; and that this was but one.
tenth Of the amount Of such capital that
has eonc In that time into such places
outside Of England, particularly IN
south America, Africa aud Australia;
and the gentleman who gives this esti-
mate to the New York SDa and VINO
claims to have started the ball In TINS
country in the purchase OF the New
York brcweries, and who Is still busily
diving at it, declares that he docs
not include In this estimate the
many millions that have gone IN
to mining and land speculations
It sounds like fairy tale to say ihat
thousand millions of British money has
zone out In this way into the industries
OF foreign lands I'm so short time. But
Il js no longer incredible when 1t is ex-
planned how the wheels are creased ior
: the movement. 1t seems that compa-
MES to promote the schemes sprung IN
great numbers. The idea upon which they
flourish Is that they can procure the pro-
fitable use of apital and take care FOR Its
safety that the owners of 1t have neither
the opportunity, talent or taste Tor
doing. It Is the speculative money ofthe
country that they undertake to handle.
What goes to them is doubtless generally
what the owner thinks he can spare for
"fllerp and what would go into lot
tery II lotteries were lawful. The Eng
lish capitalist IL said, moreover, to value
an investment according to its prom
ise of dividend, with little considera-
1 tion for the present cash value OF the
asssets Of the business which promises
the increase our habit, on the contrary,
being to look closely to the value of the
plant.
The companies that thus kindly offer
profitable Investment to the money that
s the owners find to burn their pockets pick
out an eligible looking business that is
busy enough to be worth promoting
and buy it. Then they add to the price
the sum they want for their profit, and
divide the total into three classes of Sc
curities, bonds, preferred and common
stock which they offer to the public.
And It is stated that the common stock
goes off like hot cakes, the preferred
stock more slowly, while the bonds gen.
orally remain on hand, showing that
the people who go into these enterprises
are delighted to take the greatest amount
OF risk that they may indulge In the
pleasing anticipation OF dividing all the
big remainder Of profit that ia to he left
after the prudent bondholders get theil
moderate percentage. And 1t is not clear
that they are not sagacious In so doing
4 for there is probably no very valuabl,
amount of safety in any form Of the in
investment and il their money is goin,
It had better go where 1t will give then
the most delightful pleasures ofhope.
But there is another set Of companie
that have an allied mission with thes'
promoting companies. 1t was necessar,
when property was purchased that tn
movement to stock it should not be
failure a result which could not leav
the property upon the hands ofth mel
who had bought to unload at a profit OF
others, but it would also throw a dam
per upon the whole business of provid
ing their outlets for rusting capital
Bankers were therefore paid good com
mission for guaranteeing the successful
sale of the bonds and shares /; and f
nally companies have been organize
with this as their sole business. The
Il are said to make great deal of none
out of 1t, the temper of the investin
public being such that shares are nc
often left on their hands, and they q
their commission without having to pa
out much money themselves.
It is TO be said Of these schemes tha
while highly speculative, the investor
are not fleeced by the originators in an
secret fashion, as It is the habit of il
vestors in this country to Ike fleece,
These English companies, to obtain an
standing, have to furnish the most d.
tailed accounts of their enterprise, 4
cost and commissions to the Londo
Stock Exchange, and must have the
account approved by reliable firm
public accountants so that the En-
lishman who sees his money goir
where the woodbine twineth cannot 81
that he did not have every fair opport
nity to hedge himself of the course thu
it pursued.
Some of these days doubtless we wi
have these extraordinary faciliti
offered in this country to people who {
not know what to do with their none
but at present this class here is hard
numerous enough to need them. b
one thing might be taught our capita
lists by this European demand for o
Industries; and that is to look wi
greater favor themselves upon industri
investments about which they are
often as timid as hares.