American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-04-12
INVESTING FOR SAFETY.
~ william =. Chancellor, Head OF De-
partments 0f Economies, Politics and
Sociology, college OF Wooster, Woo
sier. Ohio.

partments Of Economics. Politics and
Sociology, College OF Wooster. Woo
ster. Ohio.
A great corporation usually affords
better security for Investment than "A
mall one for several reasons. One
IS that while 10 "a small concern the
llle and health of q single individual
rs usually very important, % the great
enterprise one man BIS rarely OF criti-
cal importance. Another reason Is
that In business. there is safety in
numbers. The total OF employees, Of
stockholders. of customers and OF
others Interested such as sellers Of
materials and relatives Of these var
ious persons creates a great public in
.%terest and following. A third eason
Is that no enterprise can grow very
large without some inherent merit. 1t
may produce an article In active and
general demand, or It may be manag-
ed with signal ability.
An old corporation usually affords
better security than a young one. This
Is especial true where the old corpor-
alton produces or trades In something
that has long been in use. The rea-
sons are that age indicates honesty
and skill In management. and that
age has developed a tradition and a
custom that persist through universal
habits of human nature. II might be
said that often a company has as Ions
a prospect for future life as il has al
ready lived. Every year a successful
existence is in a way "a guarantee o
another year. When, however. the to
tal annual business continues year by
year To fan away. then. OF course. IN,
old company offers but a poor oppor
tunity for investment.
Small Concern In New Field Unsafe
Tho small corporation In a new hel,
may afford a great hope of profits be
.lSoud the ordinary. but It cannot az
ford security The small corporation
tn an old field is seldom one to b.
considered safe by the prospective in
vcstor.
My ANlfNIAMN WNfA NAhA ny NANA ~
widely known character for ability am
integrity is worth looking into wit
"a view 20 investing. but when one doe
look into Il. one must be assured tina
ample opportunities TO learn the fact
are being afforded and that one ha
himself sufficient knowledge Of IN
held TO trust ones own judgment.
An enterprise that is new but IN
l dertaken by friends aud familiar &C
Quaiutances should be viewed with su:
/ picion. for the friendship may cast
glamor over the affair that deceive
8 the judgment
3 A small enterprise widely adverti'
{ ed IN a large and noisy II ma
= properly be considered unsafe In pr,
. portion to the noise and to the sil
a of the advertisements.
The concern that goes direct TO III
e public for the sale OF It's securiti,
rather than through long estahlishG
and we'll known bankers is prohabl
one 20 be avoided for Investment. m
= reason why IL appeals 70 the publ
despite the great expense of advetri0
NIX and circularizing ia because q
o bankers have already declined to ba,
ntlt a corporation into which rich me
wlll NO put their money is not OF
q for a poor ran TO trust Rich M,
D have grown rich and stay rich b
* cause their Judgment regarding inves
n ments has been on the whole cOrre'
Rich men become poor because the
q Judgment has failed TO advance al
ID % protect their financial interests.
Many Stockholders Best.
~ As between one concern capitaliz
in at ten million dollars and doing
d good business whose stock Is main
e. held by one or two men or famili
and another concern of equal capii
u which no one man or family hol
ly, over a million dollars Of stock, I
air latter Is the better one for the
w. yestmeut OF any stranger. The co
ole pany no which one or two men C
be- troll a majority Of stock can be tire
md Cd like personal property and the 0
md or owners can easily be frozen out
Ter. defrauded OF just returns upon th
funds. How? BY excessive salaI
my paid to the insiders. or by inside c
OF tracts az excessive profits, or by
'ro- rect stealing OF cash from bank
us counts or the safe itself.
i'm Investing safely requires investi