New-York tribune., 1905-02-05

notice that one OF the inflated and top-heavy
industrials came TO the parting OF the ways
some days ago. 1t was a New Jersey corpora
ton with a modest little capitalization OF Sl2,-
COOOOO which came into existence in 1898, with
quite q flourish Of trumpets and an exhaustive
statement Of its resources and great earning
powers.
The entire issue OF IT'S s12.OoO.OoO worth OF
stock was readily subscribed for, and although
not penny was disbursed in dividends during
the ten years Of its existence. the shares or the
concern were regularly quoted I'm the financial
columns OF newspapers among other gltttering
securities.
/ have been much interested In the statement
which has been issued by the Receiver who was
placed in charge Of the corporations property
In the Receivers report the statement Is made
that the company has outstanding per cent
first mortgage bonds to the amount Of S2.I46.-
COO and in addition to this there are Outstand-
ing per cent. income mortgage bonds TO tns
tune Of S6,SO5. $50.
The Receiver has stated that he does not be-
lieve the total assets Of the corporation will be
sufficient to pay off its bonded Indebtedness TO
say nothing of affOrding any sort Of protection
for the unfortunate men and women who in
vested S12.OO0,OOO in its stock The indications
at the present time are that the stockholders
will lose Just S12. 100000; in other words, every
dollar invested in the enterprise.
The moral which want 10 introduce to adorD
this little tale Of woe is that huge capttaliza-
ton is no guarantee Of success. and that peO-
pie with money TO invest should count their
cQaQge twice DeIJFe puIcudSlI7 SIOCA CCLtt
Gates Of inflated and top-heavy corporations
/ read with interest a day or two ago tbs
financial statement OF a certain trust company.
a concern with enormous deposits, running close
up to S3O,OOOOOO and which has for several
years made loud boast from time 10 time or
its very liberal treatment OF depositors- 1t IS
one of the great trust companies OF the country,
and, as stated, carries enormous amount OF
the peoples money deposit at all times.
During the past several years this trust COM
pany has allowed interest on its deposits OF
per cent. but last year. in a burst OF generCs-
ity, the directors passed resolution increasing
the rate Of interest from per cent. to S12 per
cent, and the result OF that marvellOusly kind
hearted act was to materially increase the
amount of deposits. People actually focked
to the place and jOstled each other as they
stood in line. in their eagerneSs to get their
savings on deposit.
Well the statement Of this trust company for
the year 1904 has been issued 1t shows that
the net profits of the trust company for the
year were 81, 527. $50. From these profits divi-
dend Of 66 per cent. was distributed to the
half-dozen people owning the trust company.
and S4,000,O00 was added TO the surplus ac-
count, which now amounts TO S2OOO0O0O-
The working capital Of this trust companyy
that is to say, the money actually paid in BY
the halfdozen people who own il. is 81. 500. 900.
The net profits therefore. TO these people for
the year 1904 actually amount 70 more than 800
per cent-the net profits TO the depositors being
just S12 per cent. l leave the reader 70 figure
out the moral for himself.
people having money are entitled TO receive the
full increase which may come as a result OF the
position in which il may be placed. ! feel that
il would be q splendid thinss~if the directors
OF the trust company in question would distrib-
ute the S2O.0O0.0O0 accumulated surplus TO the
men and women who by their deposits have
made the accumulation OF this S20.O0O.000 sur
plus possible. But, OF course. the directors will
do no such thing They win continue TO pay
depositors at the rate OF S12 per cent, and roll
up for themselves profits on their investments
of 800 per cent as a result of these deposits
want 10 proclaim the fact, and emphasize
1t strongly as 1 possibly can. that, IN my
position as a general financial agent, am able
at all times TO offer investors good. safe. sound
securities which yield from three 70 i've times
as much as IS paid depOsitors by any trust COM
pany or savings bank in the country
And I want TO emphasize also the fact that
investors buying stocks which l recommend
have 10 more TO fear from the waves and hur-
ricanes Of the irregular and uncertain stock
market than has the .topmosr chamber or the
Rock of Gibraltar from the bilows that roll at
its feet.
am not a dabbler in any sort Of Wall Street
securities and do not recommend either Tor
permanent or temporary investment any OF tne
listed or unlisted securities conrOIled DE stOcA-
market gamblers.
Investors buying stocks ON my recommended
ton are sure Of splendid returns in the shape OK
honestly earned dividends; and as q cOnSe-
quence they have no cauS5 Tor SleepIess nights
The feyerIsh watching OF the tlcker-ths
quick glance at the daily market quotations in
the newspapers-may represent the height OF
happiness to those with the gaming Instinct
bur for the plain, every day citizen. who wants
his money 10 do him good service. and keep on
doing ii 10 the end of the chapter-the best kind
of securities are those that are secure; and
make bold to say that not one OF the big
cards. that are dealt in our great exchanges
are ever absolutely safe from sudden panic and
complete destruction.
The kind of securities I recommend and
which I am selling to investors all over the
country have first OF all foundation Thas
foundation is made up OF commercial integrity,
ample means, and the energy that accomplished
things 1 investigate carefully. and satisfy nv.
self OF the solidity and dividend-earning power
before am willing to assist in the slightest de-
gree in bringing to public notice the securities
of any corporation.
/ invite correspondence with all persons who
may be interested in investing money to the
very best advantage possible / am giving NV
whole time and attention to these questions and
am In position to render valuable service in this
connection to all persons with money 10 invest
am always glad to point out the way CT sue
cess. and give full and detailed information and
advice on all stocks and bonds which are offered
for public or private subscription
l am always glad to have investors write mo
for information. whether they invest a dollar.
In the securities which recommend or nor T
have the personal satisfaction OF knowing thar
L save Tor investors many thousands OF dollars
every week, by pointing out to those who vritS,
to me the whlrlpcOlS and pitfalls which are su-s
10 De encountered along the way
1 give personal attention TO all cOrreSpopdaDc.
anu treat all communications in strict CONF.
dence. SOun-
All letters should be addressed to me NJ NV