The Washington herald., 1912-05-25
INCOME OF THE
POOR RICH NAN
loor5nlAt. N b c. n Ks5A NJ FoEk.l

There used 10 Be q man living near
Watertown. n. y. VINO considered Il
gambling to set more than per cent
on his money. He had been brought up
on the 4 per cent principle. Years ago.
be stopped working, and Invested a
comfortable little fortune IN high grade
bonds that yielded that rate. and 4 per
cent became his gospel
An agent OF q Boston banking house
called on him about once IN six months
as a matter OF course. He never bought
anything new. He never altered his
Investments. The agent called, in real
ity, because once or twice during the
years that this practice Kept up the old
man told him about other people who
had acquired more or less money; and
the collateral business that arose in
this way made Il worth while 20 keep
on calling every now and agan. He was
not regarded as prospect for any more
business.
In those days, the banking house which
this agent represented dealt almost
exclusively in high-grade municipal and
steam railroad bonds Its clients were
all educated to these securities. Poor's
Manual OF Railroads was It's Bible; and
the Chronicle took the place OF the Com
mentaFies. The agent and the investor
thought alike, and they got along In
excellent harmony.
A few years ago. however, this condi-
ton changed. so far as the agent was
concerned. For the first time in his
history. he was Offering. among the usual
list and pretty well buried, 10 be sure.
a single bond that represented a gas
company in New York City. He felt
half ashamed Of Il: but the House had
said II was all right. and when the
House says so II Is 50.
When he visited watertown the
agent debated whether or not to 90
and visit his friend in the country
and decided to do Il. They talked OF
general things. The perfunctory ques-
ticns were asked. and. to the agents
great surprise, the old man replied that
he would have 5000 TO Invest next
month, because some bonds were falling
due-a detail that had been overlooked
by the house.
The list was handed over and they
began TO go through it. sitting under
the shade OF a tree. Suddenly the old
man stopped.
Whats this-whats thisT' he asked.
The agent looked. II was that gas
bond. II was offered TO yield nearly
Per cent, and Il stood out in great
prominence among the items that yield
ed $50 per cent TO AS per cent To
make matters worse, the house recon-
mended It quite warmly in the printed
circular, without apologies
The agent tried to explain, but he
made a poor EFFORT at Il. The old mans
iaitn was badly shaken He summed
u all Up In phrase as the agent left
him:
Il thought your house was a bond
house, he said
That was nine years ago last sum
nler' The agent changed his house not
long afterward and seldom thought OF
the old man near Watertown. His own
work was in Pennsylvania Last year,
however. he happened to be in Water
town on q Saturday afternoon and sud
denly decided TO go and visit the old
man He was greeted quite warmly:
but when, in time, he began to tax
about investments he encountered a
strange retice1Ce- The secret came out
list
1t was different. There were. TO he
sure. two railroad items on II. but they
were middle-class railroad bonds good
indeed-but they yielded, At their cost.
a shade over per. cent. Every other
Item on IL was either an Industrial or a
public utility bond except one. which
was one Of the better class preferred
stocks.
The visitor looked II over without saw
ing word. while the old man waited
for the verdict. But all that the agent
said was this:
I see you are stin trading with the
old house"
Then the investor told his story. Along
about 1895, he had begun to get poor.
His income was just the same but ev-
erything else was different Clothes cost
more; food cost more; repairs cost more;
new barn nearly cost as much as the
house had cost twenty years before:
taxes cost more; Injuries cost infinitely
more. Everybody he knew. who had
kept on working, seemed to have a great
deal more money 10 spend than he had
ever had, and certainly more than ne
had now. Instead OF being considered a
rich retired gentleman. he had come to
consider himself as the poorest man in
the county.
So" he said. "since could not cut