The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-04
LAND VS. STOCKS AND BONDS.
An Experience of One That has Been

3
the Experience Of Many.
& The most difficult question for capitalists
is What securities are a safe investment?
This has been so for twenty years, and the
i difficulty is increasing every year.
There are three main causes of this con-
s dition. First, the very rapid accumulation
81 n many millions in a few hands: second
die combinations of those millions in cor.
Dorations, and, third, the fictitious prices
daily set on stocks and bonds BY stock ex-
changes These three causes or
powers are triune. They move to-
gether The owners of many millions
find It more profitable to combine and strip
the public than to fight each other. and
their favOrite field of operations is in an ex-
change. For there alone stocks Of large
81 corporations are rated. When large CAPT.
talists desire control of a railroad thew soon
& fix the price of the stock by depression
q then buy the majority ana the work is done
81 All else is smooth sailing. They elect their
& own directors, operate the road to a nom
& paving condition, buy its bonds, 90 into
court, foreclose. sell, wipe out the stock.
{ issue new bonds and 100 per cent. Of stock
& in lieu Of the majority they sacrificed, and
own the whole property, bonds and stocks.
This process has been going on for twenty
FIVE years. and the result is the combination
of those small bankrupted lines into a few
continental lines.
We have had this process at work in
d Georgia ever since the defeat of Mr. Raoul
for the presidency Of our Central system
What we see here has been seen all over the
United States. The Central is one of the
4 latest victims. 1t was safe during Mr.. Wad-
4 ley's administration. He was importuned
ii TO have the CentraPs stock listed on the
Il New York Stock Exchange. He persistently
Fl refused. After his DEATH and after the de-
h feat of MIR. Raoul, his successor, Central's
stock was listed and-the company is bank
rupt.
The pertinent question arises If the Cen
trail of Georgia Is IN ruins by such attacks,
what other stocks are secure9 Who i'm
sgined that the day would come when
this magnificent road would be bankrupt?
It's stock even five years ago was consid-
cred "gllt-edge" Banks preferred it as
collateral; idle capital sought il as a safe in
ves,ment, but now it cannot command 25
cents in the dollar on an original loan
Holders are in daily dread of losing every
dollar invested, and men seeking invests
menss regard it as valueless.
Bonds as an investment are not so bad
but they, too, are unsafe Centra's bonds
are dishonored and no finaucier can tell
what they are worth. The tripartite bonds
are secured, but they are small part of the
bonded debt.
The conclusion from the foregoing is that
minority holder, of stocks are
never safe, and that no man
IS wise who will invest in property
over which he has no control. That is the
position OF every minority holder. He com
mits his fortune to the keeping of the ma
jority holders who, as a rule, are gamblers
IN Wall street.
1t may be asked, what, then is a safe in
vestment! There are stocks that are safe,
but they are in small corporations. The safest
stocks are those of corporations that have
no bonded debt, but they are very rare.
The safest Investment Of all is land and
houses. The reasons for this are many.
Among them are:
l. They cannot be stolen.
Z There Is no corporation, no majority
stockholders to rob the owner.
3. They always yield an income-little or
much-there is an income.
4. Fire cannot destroy the land and in
surance can save the houses
5. Land steadily increases in value, espe-
clRllY IN and near cities. The richest class
in the United States are those who have in
vested in land. The Asuors are the wealthiest
family on the earth. They never specu-
lated, refused to deal in stocks, and invested
every year in land and houses. A gentle
man in our small city on a salary of 81 500
year invested every dollar h@ could save
In land, and he now owns over 500 small
houses and his income is probably S25 600
year. He is not in hourly dread of losing
his property.
Mrs. Marshall, late OF this city, bought
lots and built houses and Left q large and
valuable estate. Mrs. Jewett did the same
and left valuable property.
The man who has surplus at the end of
each year should avoid stocks and bonds as
he would a pit 1t was not imprudent
twenty-five years ago to invest in them.
but now it is next TO folly. If the money
now in imminent danger of total loss in
vested in Atlantic and Gulf and Central
railroad stock, had been put in land and
houses Savannah would have to-day 100. 600
population, and the capital invested would
be triple or quadruple the original amount.
The writer has had several investments
in different railroad stocks and he lost all.
He was a minority holder and learned his
helplessness when too late. 1t is best to be
safe even if slow. But the rate at which
real estate in and around Savannah has
advanced within four years ought TO satisfy
even those who are eager to accumulate
rapidly. Be that as it may, the money of
wives, widows and orphans should not be
hazarded on stocks and bonds, a few only
excepted. There are families all over Geor-
gia, owners Of Central stock, who are
trembling in the balance between affiuence
and poverty. OBSERVER.