The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-04

fepitScntlnk $l4, 3D0O00.
II is easy To talk millions but some-
times some OF the ,ciphers prove TO be
nothing but ciphers.
This preferred stock is &c per cent.
cumulative"--that means that IL dvi.
dends have TO be passed at any time
they will be credited to the preferred
stockholders and allowed to accumu-
late until they. are paid.
II is worth noting by the way that
there are today on the books of several
of the big corporations OF the country
millions upon millions OF preferred
stock cumulative" dividends that have
been accommodating" for years,but that
never have been paid and probably
never will be paid because there isn't
any money in sight to pay them.
And there are instances where the
acumulations of credit have been
wiped out with the stroke of pen by
agreement OF the preferred stockhold-
ers who We're forced To come TO the
conclusion that 1t was no further use
asking and waiting for what they were
never likely to get.
So cumulative dividends" like any
other kind of dividends depend on
something else besides the guarantee
to secure them.
1t takes money to pay dividends.
Guarantees won't do IL. Neither Will
credits marked in ink on the books.
If the Siegel- Cooper company were
not 50 diffident about showing their
balance sheet II might be possible to
learn how much OF the 100000 shares OF
preferred stock to be distributed to the
public out OF the 2s5,0o0 shares-the
modest amount OF $1,000 being retained
by the present owners--ls water.
Perhaps none of IL is water. AS I said
before nobody can know anything
about it,
But I suppose lots Of folks will just
tumble over themselves TO subscribe
to this stock.
AS understand II the small sub
scribers are to be let in first-the one
share lot. then the two share and then
the three shares and so on. Which re-
minds me OF the Parker lucky box"
scheme. Parker advertised that he did
not want rich folks to buy the 'iucky
boxes as they had fortune enough al
ready. He only had a few left" and he
wanted poor people and people I'm hard
luck TO secure the advantages that
would accrue from possession of the
lucky box
Some day when the small stockhold-
ers in the Siegei-Cooper corporation
want their money back and try 10 sell
their stock they may not find the mar
ket in such a feverish state of enthu-
siasm to buy as IL was when they went
in themselves.
TO my mind there is plenty OF OPP
portunity for small investors right here
in Providence.
There is no reason why anybody with
few hundred dollars should go out
side the town. And IL there Is any like
lhood that some day the investor may
want his capital regardless Of whether
IL is paying a good interest or not
sometimes the value Of the investment
cuts no figure. you know, you want TO
get your capital back and no piece OF
paper is the same as money II you are
hard up-why the savings banks and
the participation accounts of the trust
companies offer the best investment
possible.
The small capitalist is forever itch
ing to own stock in something.
4, He is an easy mark as rule because
of this desire for an ornamental stock
certificate. It's possession makes him
feel large and good. He likes to look
at 1t and fondle il and have the divi-
dends come.
And in the water of the big corpora
tions are represented the accumulated
millions of thousands OF small capital
lists who have had this itching
When the water is wrung out these
millions disappear and only the pretty
stock certificates remain.
TO my mind. however. the small
capitalist has an easy road to travel
when st comes to investing his money
providing he only uses little reason.
The man of much money has to figure
and calculate and speculate and take
chances that his stuff shall be safely
invested. return good interest and not
get away from him.
1t is a harrassing job TO invest
whole lot of money and the best thing
sometimes disappears over night.
But the small capitalist has only TO
take his savings to the trust company
of the savings bank, deposit them.
draw his interest every quarter or let
II accumulate and let the men who run
the bank do the worrying for him.
once in great long while such an
institution goes UP. But 1t is such
rare catastrophe az to be practically
unnecessary to reckon with, especially
when contrasted with the wrecks of
business corporations in which millions
of small savings have been invested.