The Washington herald., 1912-04-27
WHAT A BUSINESS
MAN BOUGHT FOR
INVESTMENT
Rr c. u. KEYs.


A few days ago. the estate Of, the late
Julius z. French became matter OF
record in New York. Mr.. French was
Chairman Of the Board Of Railway Steel
Spring Company and a director Of many
other successful Industrial concerns. He
was q strong and wealthy capitalist.
leaning decidedly toward manufacturing
pursuits rather than transportation or
merchandiEipe.
The value OF his personality is record
ed at S2,953O0o. II Is all IN the form
OF stocks and bonds. SO far as the
records show. he owned no real estate.
His fortune Is worth studying as typi-
cal Of the sort Of investment that is
often made by successful business men.
who feel quite competent and able to
take care Of themselves. and to make
their money not only earn a substantial
income but also increase, in amount
through the purchase OF securities.
Mr.. French. at his death. owned $4,000
par Of railroad bonds. Not bond in
the list Is gilt-edge, The bulk OF this
item consists of $4,000 OF bonds on.
the Hudson Tdnnels in New York, an
enterprise barely launched and hardly
earning the interest on its bonds. Here
there is what one might call fair secur-
ity; but clearly the chief desire In such
purchase was profit rather than great
strength and safety.
Another item OF Sz5o.0O0 in Industrial
bonds follows The big item here Is
United States Steel 5 per cent bonds,
100000 Another large item is In his
own company. the Railway Steel Spring
Industrial bonds are not listed. and
clearly represent little business ventures
rather than the permanent putting away
OF money for income.
In railroad stocks, the biggest ven
ture Is again In the Hudson companies
stock. Evidently Mr. French had stud
led this proposition and was backing
Il as a business venture-for no man
pretends at this time that the stocks
Of this company are anything but a
purely business proposition. The actual
value Of all the railroad stocks IL about
s175.Ooo.
In bank and insurance stocks there are
Is shares Of First National Bank OF
New York-a very valuable asset-and 80
shares of Casualty Company Of America
a business venture. In this Geld this In
vestor dabbled less than most capitalists
Of his class for stocks OF this sort are
peculiarly suitable for rich mems funds
After this follows the really distinctive
part Of the fund-an accumulation Of
more than 100000 par value OF indus
trial stocks. ranging IN character from
the preferred stock Of the American To-
bacco Company and the Railway Steel
Spring Company-an Investment in pa
triotism-to the most stArtlingiy specula-
tive issues Of common Industrial stocks.
little land companies. little coal compa-
nies. the New York Transportation Com
pany, the venango Manufacturing Com
pany. and others. some little known 70
the financial world.
Through this whole fund. characteristic
OF the motives and methods that are fol-
lowed by a confident and enterprislng
speculative investor. there runs the spirit
OF adventure. II would look as though
Mr. French had bought a little round
block OF 100 shares or so OF every COM
pany that interested him. Occasionally
enthusiasm urged larger buying. Thus
one finds tp the list a single item Of
500, 600 par Republic Iron and Steel Com
pany. and 1880 shares Of United States
Light and Heating Company, a new pro-
motion-evidently bids for great fortune
or great loss.
Such buying as this is legitimate, praise
worthy. and indeed patriotic-If you hap
pen to be Julius E. French. Mr.. French
was a business man who had himself
built industries. He knew sound from
unsound, and was fully equipped to
gauge the possible future Of a business
risk in industrial pursuits. He lived in
touch with the manufacturing world.
The best OF inside information" came
to him as q matter of course. He was
director of many Of the companies whose
stocks he held. and was fully competent
to draw HIS own conclusions from the
facts.
Such a man. having acquired fortune.
can well AFFORD to seek the risky profits
Of semi-speculative buying No other
class Of men Is better qualified. Yet. in
III NrNI. H. l. - II l.
item that does not represent the name OF
pretty well established concern. There
is no glaring gamble in mining stocks or
get-rich-quick concerns.
To the man who. in his investment.
desires the maximum chance for Iegit-
mate business profit. and does not care
too much for safety. the record OF this
fund will prove instructive. Only let II
be observed, Mr.. French knew most OF
his companies from the inside" 1t is a
safe and profitable standpoint for the in
yestor In industries.