Los Angeles herald., 1906-09-16

If you are a multl-milionaire and want to make
good investment then advise you to buy
United states bonds, They are about the safest
security you can get, but you must remember
that when you hold this security you only draw
about two per cent interest on your money. There
was a time during the Civil War) that you
could get six per cent on United States bonds
and the bonds were then selling at less than par
but you must remember the situation of the
country, naturally, was little hazardous.
If you are only an ordinary millionaire. then
you have to earn little more interest your
money, and we would advise you to invest in first
mortgages of the older class railroads.
You might buy preferred stock in the St Paul,
New York Central or Lackawanna; these will
pay trhe better than two per cent, and you
will not have to lose any sleep the security.
Yet, if you buy railroad stocks, you must re-
member that Mr.. Bryan has his eve the rail-
roads of this country and should he be elected
president, you might have to give up some of
your holdings because he is after these roads for
the United States government. Still, again, you
need not let this interfere with your golf play
ing.
II you widow orphan and have a
fairly good sum of money, it will be necessary
for you to get little more than two three per
cent therefore we advise you to buy municipal
bonds, those of water works in various large
from two to six per cent, but most of them only
pay about four
Now, to those who have not quite much
money and have to make a still better rate of
interest, advise taking first mortgages on
good business property in the rood cities of this
country. If you borrow so per cent of the value
of business property you get the loan at per
cent. If you borrow so per cent of the value Of
the property, you get in the neghborhood g. Az
per cent, and if you borrow high so per cent
then you doubt get six per cent on your
money. Thus you see, the greater the risk, the
greater the interest.
Now, some people consider real estate sound
investment They say if you have property, it
cannot be moved aw;tv. but let us tell you that
real estate is as hazardous anything else No
telling which way the wind may blow telling
just what is going to happen, and all of are
pretty familiar with the great catastrophe that
, happened to San Francisco; while it is building
up property valuations in the business section
have decreased considerably. We know person.
ally one man who had all of his money in busi-
ness property in that city. and had borrowed as
high so per cent on it. The fire came along,
and this property had to be turned over to his
bank to meet his go per cent loan Today this
man is broke.
One thing we want to indelbly impress upon
your mind is that If the rate of interest is fixed,
then the selling price of the stock is fixed. This
sort of an investment is not in any sense of the
word a speculation.
The who wants to make real money and
lots of 1.-THE man who has to make more money
than the United States bond buyer-is the
who takes little greater risk because he is sat-
isfed he will get greater returns for his money.
Naturally, he has to be the man that goes into
enterprises that are in their infancy. He must