New-York tribune., 1921-08-14
How Tribune Policy Applies to
Securities

How Tribune Policy Applies to
Securities
Question: would greatly appreciate
following points !. Some months ago, OF
tho recommendation OF a friend I opened
an account with RI. L. Mandeville & Co..
OF ~ Broadway recently received from
them the circulars enclosed and also SINH
lar prospectuses for patent fuel known
as 'FFueiite," These securities appear to
me to be OF questionable value, and ! am
wondering II the concern is reliable. At
the present time am buying through
them I'VE shares American Agricultural
Chemical preferred, nve shares American
Sugar Refining Company. and i've shares
Famous Players-Lasky common, on tho
partial payment plan described in tho
account transferred 10 margin basis
Taking into consideration these particula rs
and any other Information which you may
possess regarding this brokerage frm
would you consider it safe for me to leave
this account in their hands. or would YOU
ae yiso transfer to a more stable house ::
Its advertising apply to brokers' advertise
ments appearing in 1t? 3. What degree
or oa,,.a,ad ,s.tann'ns does membership In the Con
ns compared with mem bershin in the New
York Stock Exchange7 t. What is your
opinion tI OF the value Of tho recommenda-
'lons made in The Financial Forecast. is
soeo by NJ 3: Wolfe & Co. Al Broad
street New York copy OF which is
enclosed en-, sea s. would like to open mar
gin and investment account with Kohler
hre'ner 4 Co., 81 Broadway, New York
as they oner terms which would be con
tenent ven IN 76r !Nn my requirements They advcr-
firm as reliable IT. l.. D.
Answer-Your questions are answered
categorically as follows CD We DO
not pass on the merits of brokers or
financial houses of any description as
individuals. We think the partial pay
ment plan is unwise for the purchase.
OF speculative stocks, and your stocks
are speculative. You are quite likely
TO lose on them we think. 1t is always
bad idea to deal with broker in
whom you have not full confidence
whether your lack of confidence is JUS
tlHed by facts or not. CD The Trib-
une's guaranty means exactly what it
says. 1t applies to merchandise, and
securities arc not merchand The
Russian external bonds were ad-
vertlsed in The Tribune, but we
do not guarantee the debts of the
imperial Russian government nor
OF any one else. The Tribune's
policy THE Truth Editorials
advertisements" applies to facts
stated in financial advertising, but
we do not guarantee that opinions
expressed in financial advertising are
correct. Advertising copy is closely
censored and no house is admitted to
our columns until it has qualified un-
der standards imposed by the advert;s-
ing department. It's opinion, however.
is not binding on the financial depart
ment. CD Your question is too general.
Members Of both exchanges have vary
ing degrees Of standing" as you put
1T. If such estimates could be reduced
to an exact scale, they would probably
overlap. with the advantage much in
favor of the New York Stock Exchange.
(D The publication mentioned has the
same weakness that most brokers' let :
ters havc-they invariably take a bull
position because they know the public
has not the nerve to sell short, and
brokers live by commissions. 1t is de-
signed to persuade the readers to buy.
This particular market letter, how
ever, does not hesitate to point ont
that certain stocks are in a poor posi-
ton. There IS a certain negative viz
tue in that. Matter of this kind may be
useful as information as far as the
facts are concerned. We discount the
speculative opinions expressed CO..
You are at liberty 10 apply what we
have said about advertisers to Koh er,
Bremen & Co. We do not indorse any
body. We could not without a knowl-
edge Of brokers' affairs, which could
probably be acquired only by actually
running his business. Remember that
the Stock Exchange mas autocratc
powers over its members and tries to
enforce stric; standards of equality and
fair dealing, yet it neither guarantees
nor indorses the acts of brokers. How
then. could an outsider like The Trb-
uno venture 10 saw "SO-and so jS a re