The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-05-13
1ssEHr1A1.s AND oNE-TnE PUR-
CEASE Articles NOT so GOOD
POE THE INVESTOR HE SAYS.
Even a monopoly Not AS e+ood AZ
"Repeat" NEUTRALITY-SUSPICIOUS.
plained BY Statisdctan

StatlSGClan lousiN So"''N - 49,,
In recommending what lie calls the
repeats"
Manufacturing concerns are divided
into three main groups" said Mt Bah
son. according 10 the nature "i "hnt
thew produce. These groups are as !"l-
lows:
GROUP one includes thos" concerns
making products that are bought
eventually by every person. but In snla'l
Quantities. Collins arc simple Mus
tration OF this group. For each or w
one coffin will some day be bought
This Is known as the essential group
Group two includes those concerns
manufacturing products which only Il
certain percentage Of the people buy NJ
AL and which only 4 very few buy more
than once. There are hosts or i!luStra-
lions OF this group. Pianos. automo-
hiles. YES. even garden tools are in TINS
group.
Group three includes those concerns
who are engaged in the manufacture or
retreat merchandise. Tn" breakfast FOOD
rrople are an illustration Of such manu-
facturcrs You get into tn" habit OF
using 4 certain breakfast food ana you
keep buying it. The soap people are
engaged in this repeat business. Such
business in the most profitable hoih I"
the manufacturer and 10 the investor.
Industrial securities which are founded
on the third group are generally
recognized us the most attractive.
A rallaoy.
One might think that the essential.
group is the best group in which 10 IN
vest ones money. Nut study OF The
situation Convinces one that this Is not
50. Although some one is sure s"!n"
day to buy 4 coffin for each one OF Us,
yet the coffin industry Is Il very easy
industry to get ovcrStoched. surely the
sale Of collins can be increased Vcr%
little by advertising. sllcSmanshlD. or
any other means known |" the most
clever sales managers
Take sale" continued Nj. Hai""H.
salt is the prime essential OF food. yet
the clcycresl advertising III tn" world
could not increase the natural con-
sumption Of salt. Although OF hand you
might think il much safer L" I'm
money to the salt Industry than TO the
candy industry, yet study OF failure
records show that the candy Industry IS
safer than the salt industry. Although
musical instruments are not essential.
the demand for them can Be increased
10 an almost unlimited extent Hence,
Industries producing pr"dHnis II m
second group are preferable :" ;h"", "i
the first group.
THE third group, includl0c ih.>" '},-
duStries based upon repcat.u- iUg-
Chases, is the mos; profitable NJ AL
The securities of the "Gillcttr Razor"
are n very good illustration. The tai
lettc company can afford 10 sell 4 razor
at I loss because Of tho blades they
sell later. Another illustration is the
Eastman Kodak company. Eastman can
well afford 10 sell a kodak NJ cost be-
cause OF the great source Of income IN
films and supplies. Another illuStra-
;iun IS the phonoErLph. \ piano would
go In group two, phon"HrIph would
also go in group two, HI, phonograrn
records would go in group three. Thc
Victor company has made its greatest
profits on the records rather than on
tho monographs. This fact is very in
tcrcsting when looking over Tho storI.
market. because YOU will So" that the
most profitable stocks arc those Of COM
paDi"s like Gillette. Kodak. and Victor.
all Of which come under this third
group.
MouopoHes Dangerous
Investors should not be frightened
,
of securities has its strong features and
it, weak features. No class OF invest
mcnts has 4 monopoly Of all the good
points. The wise investor will diver
sify. taking part governments and mum
pals. part railroads, part induStrills,
part public utilities, part other classes.
w h e n. however. seeking Industrial
securities select those Industries that
are based upon repeat orders and where
the market is more or less unlimited
Some people bank on monopoly. They
Will buy only into Industries which have
monopolies. Temporarily they may win.
but the fact Of the company'S having Il
monopoly usually tends 10 make the
company In efficient and often ul,i-
mately brings disaster The investor
who depends on monopoly Is playing
dangerous game. 1t is far better to buy
into an industry which has n great un-
developed field and which relies on re-
peat orders.
Il certainly advise Investors against
putting their money Into companies
which manufacture products which do
people harm. Statistics show that the
greatest losses TO Investors in indus
trials have come through companies
such as brewery companies for in
stance IheE have OScn operated purely
for profit without regard to the welfare
OF the people. The primary feature 70
be sought when considering an invest
ment." concluded Mr. Bahsou. Zig 20 be
certain that your money is to MAKE
people healthier, happier and more
prosperous. When YOU invest your
money, If YOU will try 10 select such
companies. and at the same time com
panies proHting on repeat business. YOU
will make the greatest profit with the
least risk
General business has maintained the
gain made a week ago according u the
index Of the Babsonchart and is rum
ming at Is per cent below normal