The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1911-12-20
SOME THINGS FOR
INVESTORS TO KNOW
CONTINUED from mage One)


not enhance its value
Making an average on a stock is
frequently attended with good results;
but
Attempting to average on bad
bond is usually throwing good money
after bad.
On the principle that putting all
ones eggs in one basket is considered
risky,
1t is a good rule for an investor to
scatter his risks.
The average bond issue per mile Of
all railroads in the United States is
$4,000; but
The average per mile of Eastern
railroads is $7,546, and
The average per mile of Western
railroads is S36,9S9
The average fixed charges per mile
of all railroads in the United States
is $2405; but
The average per mile OF railroads in
the East is $4,000, and
The average per mile of railroads
in the West is $179S.
The average net earnings per mile
Of all railroads in the United States is
$4611; but
The average per mile of Eastern
railroads is $1O1OS, and
The average per mile of Western
railroads is $3.50
1t should be realized that the
higher bond issue of Eastern roads is
equalized by their greater earning
power.
The average percentage of fixed
charges to net earnings of all rail
roads in the United States is 521 per
cent.
The total mileage of all railroads in
the United States in 1910 was 243OOO
miles; and
The total funded debt of all rail
roads in the United States was $10,-
51O,O3l,1O3, equal to $16,77 per capita;
and
The total capital stock of all rail
roads in the United States was $751;
3S0,S19,19O, equal to $93.12 per capita.
Bonds are issued in coupon and reg
istered forms; but
Most people prefer bonds that have
coupons attached.
Registered bonds are unpopular ow-
ing to the clue afforded to tax inquisi-
tors but
Secured debts can now be made
exempt from personal taxation in New
York state by paying a registration
fee of p per cent
Registered bonds are considered
less risky in the event of loss or of
theft; but
Coupon bonds usually obtain from !
per cent to 2 per cent more value in
the open market besides
The principal of coupon bond may
be registered in the owners name.
Practically all coupon bonds may
be exchanged for registered bonds;
! but
Only modern issues provide for in
terchangeability between coupon and
registered.
Ink writing of any kind on a cou
pom bond, except by an officer of the
issuing company, lessons its value
from to 10 per cent.
Investing your principal safely is
the first essential; but
1t is equally important to deposi
your securities where fre cannot de
stroy and thieves cannot enter.
If a registered bond is lost, a bon,
of an indemnity company for twice
the amount of principal must be fur
nished before obtaining a duplicate
and
To replace a lost coupon bond re
quires a bond of indemnity for dou
BILE the amount of both principal anC
coupons.
1t is a bad proposition to be tied III
with a security which cannot be read
lily marketed; therefore
A bond that is listed on a represen
tative exchange possesses market ad
vantages over one that is not listed
besides
A listed bond is a ready collatera
in making loans whereas
An unlisted security is not always
accepted by banks.
Remember a broad market for a
bond will permit of it being disposed
of at any time without unnecessary
sacrifice.
Four per cent Is the recognized