The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-04-12
Warning as to Dubious Schemes.


United States Investor CEditoriaD-
1t is one of the functions of the United
States Investor to put the investing public
on their guard against dubious schemes.
We think it is proper for US TO state that
we have performed valuable service in
this respect and one which no one else has
cared to undertake in anything approach
ing systematic manner. Some of the
enterprises whose weak points we have
brought to the notice of the public have
enlisted the service Of great names and
large capital, and have been managed with
an adroitness which rendered it extremely
difficult TO set forth their shortcomings ex-
cept by the use Of the greatest critical
acumen. Others have been of the vulgar
sort, such, for instance, as the L. s. Dean
Company. which went into the hands of
the sheriff this week-concerns which We're
calculated TO deceive no one except the
most gullible. Any one who recalls the ar
ticles which have appeared in this paper
since its start in 1891 will have no difficulty
in enumerating long list of inflated and
mismanaged railroads and industrial en-
terprises, to say nothing of discretionary
pools, bucket shops, etc., which have fol-
lowed the course outlined for tn I'm by the
investor and gone into the hands OF re-
celVers, aSSlgneeS and sharifs.
me latest justification of the course
Whlch We have pursued occurred this week,
when the big discretionary pool known as
the Il. s. Dean Company went into the
hands OF the sheriff. The facts regarding
this enterprise are set forth in another part
OF this weeks issue, and it is unnecessary
10 dllate upon them here. The event makes
IL clear that the present is an opportune
time Tor a word of warning to the thou
for guidance in the employment of their
surplus funds. 1t is every ones aim to
make his money bring him in the largest
possible returns, but in pursuance OF this
aim there Is a constant danger that the
limits of safety will be overstepped- No
one cares to accept 3 per cent. on his saw
lngs II he can just as easily obtain 4O per
cent. The trouble is, it is extremely diff
cult TO persuade many people, perhaps
most people, that 40 per cent, and even
6O per cent, is not "dead-sure thing IN
these days.
Under existing conditions only the most
meager returns can be guaranteed on in
vested capital: Investors, big and little.
should accept that the cardinal principle
In their philosophy. If they invest their
FUNDS with an eye to large prohtS they
should do so with the understanding that
they are mourning great risk and that
they will have no one to thank but them
selves If they find themselves out of pocket
the entire amount of their investments.
The person who makes a great success in
speculation, like the great soldier, or the
poet, or the artist. is born, mot made.
Most of us are constituted without genius
the fact that the dizzy heights of specula-
ton are trod with safety but by the few.
1t is the hardest thing in the world to get
people to recognize this; every one is prone
TO believe that he is the lucky person who
was born 10 succeed where others fail.
The safe investment of money is about
the most difficult task which this world
presents. The number of persons who are
called upon 10 perform this task is large
but experience shows that of that number
only q comparatively few adequately
equipped for the work in hand Conse-
quently we are having the fact Impressed
upon us that in the world of finance, as in
the domain OF physical life, the little fish
are created to afford food for the big fish,
How quick the Dig fish are to seize their
opportunity has been shown this week
The rascality of set of men operating
what is known a discretionary pool"
has led to untold misery throughout a vast
area. This sort of thing is likely to go
on repeating itself until the end of time.
The human race has improved greatly
along many lines, but in some respects it
is as credulous to-day at the start. 1t is
In this fact that the greatest danger to the
investing public lies.