Evening star., 1915-03-28
Borrowing Nations Handicapped.


of battle turns, the belligerent nations
Will all be confronted with a series of
complications Gncluding enormously
increased debts) that will be extreme
~ difficult to Uhtangle. Billions of
dollars worth of actual property will
have been destroyed and the borrow
Ing nations will find their burdens in
creased tenfold. Just as no sensible in
vestor would care to invest in the
bonds of corporation that was
weighted down with complex litfga-
tion, or to purchase mortgage on a
property. the title of which was ex-
tremely insecure, neither should be in
trust his funds to the mighty powers
that are intent only upon destruction
and devastation.
A due regard for the wise American
principle of safety first" should instill
into our investors a desire to place
their funds where they can be reason
ably sure of their ultimate return, even
at the sacrifice of a promising divi-
dend. This can be done by investing
only in American securities. many of
which are now offering a most desira-
BILE avenue for the safe investment Of
loanable funds.
April's Big Cash for Investors.
Take, for example, the month Of April,
In which the dividend and interest pay
ments for the first quarter Of 1915 will
be due. The Journal Of Commerce esti-
mates that during this month the sum
of s17s,1O4.1Ss will be paid out to in
vcstors, representing the dividend and
interest disbursements on capital IN
vested in American industry. In addf-
tou to this. the total amount of matur-
ing railroad and industrial bonds in the
month of April is little over s50,000,-
600. and this sum will also return to
the Golfers of the investing public.
making a total of $2SS.000.000,
Though a certain portion of this
money will be devoted to the living ex-
penses of the recipients. by far the
greater proportion will be available for
reinvestment, and should, in due time,
find its way back to the investment
markets. The time is most opportune,
and 1t is to be hoped that the American
security markets will benefit by this
new influx. After safety first" comes
America first" in investments as well
rs in commerce.
Demand for Baby Bonds.
One of the most notable Developments
in the investment markets in the last
decade has been the remarkable in
crease in the demand for bonds OF
smaller denomination. While some OF
the larger corporations have hereto
fore issued their bonds in denomina-
tions of $4,000 and $1,000, SO that they
average investor, the tendency of late
years has been to split them up into
obligations of $1,000. and in some cases
even to $500. The success of this policy
has been SO marked that number OF
railroad. public utility and Industrial
corporations have gone still further
and have provided Investments In the
shape of real bonds of the denomina-
tion Of s100-"baby bonds" so-called.
1t is therefore possible for any one
who can maintain a savings bank ac-
count TO Immediately step into that en-
chanted circle sometimes referred to
as that of a ''bondholder": and In most
instances the baby bond is a very
desirable investment. both from the
standpoint of dividend return and OF
safety of principal. One or more re-
found in the larger monetary centers
which specialize in these securities, and
are willing and competent to give ex-
pert advice on the subject.
Rational Railway Regulation.
Railway regulation is quite proper Il
Il is rational. but wholly wrong IL It 1,
Irrational. and especially II the re.
Quirements laid down by legislative
authority border on absurdity.
OF late the railroads have been com.
planning loudly of unjust laws enacted
by the legislatures OF many states
These statutes have been passed SUP
posedly IN response to popular demand
but really have been dictated by III,
mistaken notions of demagogues who
think that they have only to attack
big business to insure their own politi-
cal success. This is complete mis-
take. When any matter is squareIy
presented to the people. and the voter
have a chance to pass upon the ques.
tion, they seldom come to wrong de.
cision. This was indicated in Missouri
where the people recently voted
against the full crew. bill The rail
roads should appeal from Philip drum,
TO Philip sober. The legislatures ma,
be regarded as Philip drunk. and th'
people, acting through referendum
as Philip sober.
called full crew. bill. 1t Ii only neces
sary to recall It's provisions In thii
state. twenty -nine-car freight trail
may be run with one man. but a sec
ond man is required for thirty-ca
train. Five men suffice for four-ca
passenger train, but five-car or long
er train must have crew of six men
According to the full crew" law
milk train Of twenty or more cars mus
have six men. although there is NJ
room on the train for four men to rid
except on the caboose.
Extra Expense on Railways.
In Pennsylvania and New Jerse,
alone these legal requirements pu
upon the railroads an extra expense O
100000 annually. or an income Of
per cent on 100000 900. This is tn
money wasted every year in the EN-
pioyInent of superhuous men, when
should rather be paid out for building
new stations. more steel passenge
ears extending block signal systems
constructing heavier bridges, providing
new freight terminal facilities an