The Columbus weekly dispatch., 1907-03-21
INVEST AT HOME.


| is one of the ablest and best fnan-
ciers in the South, and is recognized
as an authority whose opinions are
worth quoting. The Manufacturers
Record, the leading and representa-
tice paper of it's kind in the world
/ has been requesting discussions of
live topics by the best men of the
South in its columns, and it asked
! Capt. Johnston how the South could
invest its increasing wealth to the
| best advantage. That Capt. John
ston believes in the future of his
country, the country he fought so
| gallantly for many years ago, and
that his views of the present financial
question are sound, is shown by the
answer which he gave this eminent
authority. His reply is reproduced
| in full for the sound advice and coun-
sci it contains. Replying to the ques-
/ ton Capt. Johnston wrote as follows:
Each community should invest in
| home enterprise, city or county bonds
| of its own State. Heretofore bonds
and stocks of some of the railroad
companies of the United States have
| been considered a good and safe in
vestment, where the funds of women
children or a trust fund might be put,
but the revelations made before the
| interstate commerce commission too
clearly show the uncertainty and un-
safety of such and the utter helpless
DF
not a railroad bond or stock in the
United States today that it would be
safe to put trust fund into. Nor
should any probate court approve
such investment of the funds of an
estate. Indeed, the robbery of rail-
road companies under the guise of
financing" has certainly put every
railroad obligation out of the ques-
tion for the prudent investor or bank
er. They belong in the "stock ex-
them severely alone. The I1l-gotten
wealth has become so strong, so pred
atOry, as to defy public sentiment and
intimidate public prosecutors; has
taught the venal or coward judge to
differentiate stealing and robbery.
Restitution is never dreamed of, the
penitentiary never dreaded. All min
or officials are dogged with detectives,
all accounts unaudited or overhauled
outside the company. 1t is a marvel
the petty officer doesn't steal the
roadbed.
Invest in local enterprises owned
and managed by competent and hon
est local men of good judgment, and
there are plenty of this kind in each
community; ''by their works shall
We know them" If it be a manufact-
uring concern Cd it should manufac-
ture from raw material at hand; (2)
it should be sure of a market for its
product and consent first obtained of
the local railroad to distribute its
product at a reasonable rate. Don't
depend upon getting rate from a /
railroad commission" except in the |
State of Texas. (3) The enterprise |
should have abundant working cap
ital to carry it's pay roll, supplies and
product. The cause of failure nine |
times out of ten is inadequate work |
ing capital. To Illustrate: Locally |
there is a milf making yarns and cot
ton goods: it is owned here, managed |
by a good business man, but without |
experience as a mill man. 1t is a |
making good dividends for |
its stockholders. cotton oil mill |
owned and managed locally; the /
had no experience as such, |
but he was honest, industrious and |
and when it was found |
that the concern was shy of working |
capital it's stockholders got together,
issued bonds for all the money that |
was needed, went down in their own
pockets and took the issue at par, not
''at 65," but 100, and today the mill |
is running full time and everybody |
happy. There are others. In time
there will be still more like them.
Locally a 'sure-enough' railroad |
is needed, one that will run its pas
senger trains to make close connec-
tions; that will furnish cars to do
the business in hand. A local man
will develop after awhile with indus
try, integrity and common sense, and
whom the community will trust. He
will build it with local money, it's
stock will be good investment, as
the people will own it and patronize
it. BY all means the South should
invest its money at home, keep away
from every United States railroad
stock, bond or note, as the high-roller
railroad president and his Robin
Hood coterie OF directors will in time
wash out all the worth they ever con-
tanned Investments in home enter