New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-01-15

stock markets were 10 De Wlped OH tle race %
the earth not only the total, but the average
wealth of the country would be increased thsre-
bv There would. of course, be less capital rep
other hand money would not be put into the
possession of the big manipulators, but into
projects that would do some good
Paper values can only be described as a deiu-
man who puts his good money into the ma
nipulated stocks is. at first. worth just what he
has expended.
That's for a day or two.
In several weeks. perhaps, there is boom In
his particular flyer and he is worth 80 per cent
more than he Was-on papeT-fOr he holds on Tor
still better things, and then down goes his stock
with that dizzy drop known to Wall street, and
still there he is grasping the stuff by the shout
ders trying 10 keep its head above water Pretty
it sinks far below what he paid for It. OFTEN
never to rise again.
And then he is great deal poorer than he
was.
His poverty. too. is actual poverty. for while
the gains are often of paper value variety, the
losses are always from the pocketbOok- Wall
street has a way of satisfying with promises,
but when Wall street asks YOU to pay you nave
10 give up the coin of the realm
You remember 'Punch's" immortal advice TO
young man about to get married: Don't Ihat
is the lacOnic n2essag &c / feel like sending back
to those who ask for guidance In stock mar
ket speculation. But I realize that most OF
them are asking in perfect good faith, and con-
sequenty endeavor TO answer all such queries
with every bit of the patience and knowledge
that have and am happy 10 say that IN nine
cases out OF ten | oissuade the writer's from
jumping into the financial Niagara OF stock gam
bling and turn their attention in the direction
OF solid investments that are out Of the ordinary
class
The older / grow the more I realize that people
have right expect their money 10 DO some
of the work for them. Having labOred TO get
il together, they naturally think that turn about
is fair play. But most of them have no knOwl-
edge of the means of accomplishing this. They
take their talent and wrap II up IN a napkin
which is equivalent 10 saying that they put 1t
away in savings bank, which is an excellent
institution in its way. but for the average cit
izen who wants to see his money put forth buds
tUlgs and branches and grow. IL is not very
much better than the traditional hole in the
backyard. The interest paid depOSitOrs is get
ting beautifully less as time goes on, and pretty
soon bankers may think 1t convenient and
proper to make a storage charge for money left
in their mOss-cOvered vaults
After all. II is the money of the masses Of the
people of the United States, if you please, that
builds up the great successes along the lines OF
Industrial mining and transportation enter
prises- The masses of the people set the colossal
railroads in operation they launch gigantic
steamships they erect enormous factories. they
open up mines, they do the work of Titans. And
yet, how many of them know it?
The process is simplicity itself.
The public, made up Of many millions of hard
working, frugal, conservative men and women
~ ll-OIIey III tiIe % .ilo
and gets beggarly returns therefrom, rarely
over Per cent
But what is happening TO that money? 1t is
being loaned the railroads, the steamship
companies, the industrial concerns, at very much
larger rates of interest. Officers must be paid
princely salaries and running expenses met 1t
costs money TO build marble banking palaces
and equip them in regal style And it is the
peoples money that pays the bills
Now, I maintain that the money of the masses
may just as well build up industrial and finan-
Cial enterprises without the medium of banks
Why should not investors get at first hand the
interest 10 which they are entitled? The trouble
seems to have been one Of opportunity. for few
know where to go for sound stocks that Will
pay handsome dividends.
was talking this week with the vice-presi-
dent of q certain manufacturing company in the
state of New York. He told me that one share
W. frOV fot fEroa
years ago to a woman who wanted 1t purely for
investment. and the figure paid the
founding price of S30OOO.
That woman has received from IL 5000 every
three months since. 1t was probably the highest
price ever paid for single share of stock in
THIS country ana the figure was not reached
by manipulation. by juggling. by crazy antics
on the floor of the exchange. The share sold
for the price it did because it was worth it, and
ii may surprise some of my readers to know
that the stock to which I refer is not listed on
any exchange and has never been quoted in a
But 1t is worth $4,000 share as an invest
ment!
Now and then some good but tinid soul comes
TO me with the fear that he may lose the money
invested in some of the Industrial stocks / rec
ommend because they do not appear in the daily
list of Wall street quotations. To him / answer
as L say to every one of my readers and TO
the world at large-that there is more money
lost every day in the year by people who spec
ulate in the listed and manipulated stocks sun
poSedly gtt-edgeG though they be than in a
whole tWelvemOnth through investments I'm the
safe and conservative, though often highly re-
munerattve, securities such as I place in the
hands of my customers I defy contradiction in
this statement Of fact.
Not even the most wild-eyed believer in the
whirlpool of Wall Street would venture to assert
that what say is not So
Statistics prove it. experience backs II M and
common sense endorses it.
am going to print two letters from my mail
of this week because, although entirely different
in style and matter they are highly illumfnat~
ing on the question of stock sDeCulatins and
how to keep out of 1t. The first is from a Ros-
n and
thus.
Dear Sir-I write to ask your candid opinion
of U. s. Steel common. l inherited over 5000
and invested it IN 200 shares of Steel al 20 with
the information that il would reach 81 before
March. but, OF course. at present writing il is
good many points from the above. NV inten-
lions were. if l obtained 80 for the same to use
II annuity. il is the only source of in
come I have The person who told ms 10 pur-
chase Steel did it for my interest. / know Now
won't you tell me If both are correct and
what you advise investing in.
My reply need not he printed here. u went
to the lady and I believe II viii be helpful But.
l do want TO say. In regard 70 the "inf0rmatIon''
the writer received, that people can only 'proph-
esq In matters of stock speculation. they can
not inform,
The other letter is from a keen and sensible
New York man. who writes,
Dear Sir-Wiu YOU please d-isa me what Won
have 10 offer as a strictly Investment security?
Your article Of last Sunday Interested me- very
much on account OF its ring of sincerity and
common sense. l am working man with
little money in the bank and naturally would
like to have my money earn as much for me as
possible.
have been In Wall Street as a clerk and have
had some experience with "frenzied finance"
and am through with It, realize that there
are different ways Of investing even small
sum OF money than by placing it in a bank but
after becoming acquainted with Wall Street and
its ways hesitates to seek even an invest
ment in the form OF a first mortgage bond
through