Evening star., 1924-05-25
BY I. A. FLEMING.


to buy stocks in multitudinous and va
ried ventures and corporations these
days. Moreover, the list circularized
by the promoters is above the average,
having unquestionably been prepared
from lists of intangible tax payers in
the District of Columbia
The mails are literally cluttered with
the opportunities CD in units. common
and preferred. chiefly the former.
Each and every day there is more and
more need for the would-be buyer of
securities, regarding which he knows
nothing except the excellence set forth
in the tenders, to consult his banker
before acquiring something that may
mean a serious loss.
1t is written in the first stock primer
that the buyer of stock at once becomes
a partner in the business, and not all
lines of business are safe and profitable.
Even though one may have good advice
one may go wrong in the purchase of
stock.
No Such Thing as "Sure Thing"
The man who cannot afford to take a
chance in the market should keep away
from it, for there is no such thing as a
sure thing, and so-called tips are but
pitfalls III the path Of the wary.
In buying stock one should consider,
with other things it's marketabi1ity, Is
it listed, and is there good market
on which to sell when you may want to
liquidate? If not, then you would better
not buy it.
Investigate the character of the busi
ness. and at the same time the character
of the officials of the corporation issuing
the stock. If either is questionable
escheW the temDtinP offer
You would not wish to acquire stock
in a corporation that was engaged in
buying second or third trusts, would
you? Or even third trusts and slow ac-
counts. where the risk is measured by
the greater profit when paid off, or loss
when necessary to stand under it?
study the Directors.
And as you study the business of the
corporation give the board of directors
not only the once over. but the several
times over. for board of directors not
strictly up to standard can and will
place a corporation in trouble on short
order.
Public utility stocks offer some pro-
lection not given by other corporations
that is. as a rule In reports made
monthly to the utilities commissions,
stockholders and others interested have
an opportunity of keeping fully inform
ed to the condition of these corpora
tions, and therefore have a chance of
selling out through disposing of their
holdings on the open market. Mergen-
thaler is another corporation that
makes public periodical reports of it's
earnings.
AS rule the large and rapidly in
creasing flock of questionable corpora
tionS is not given to making accurate
returns-only come on publicity when
seeking more victims. When conditions
go wrong with a corporation the direc-
tTr h.at. L lad Of ha n linn CT
as soon as the officials, and then comes
the wild rush to get out from under
If a fiy-by-night company. the minority
shareholders are the chief victims.
If You Must Buy.
If you must buy stocks buy standard
stocks. regularly listed in New York,
Washington, Chicago or some other
city.
Bank stocks have proved most de-
sirable investments. with return
that is comparatively small, but with
such stability and continued profits
that the rise in value has made ex-
cellent results. They are very much
! like real estate ventures, they will
make you money if you hold them
| long enough.
Utilities have come back strongly
| in the last few months and are con-
sidered reasonably safe investments,
| by reason of the Supreme Court de-
cision that permits a rate for service
| that will give a fair return on in
vested capital. Moreover, shares of
local utilities are free of the intan-
gible tax of Z of l per cent, and that
| is a considerable factor.
Billions of Bonds on Market.
The printing presses are going at
| high speed night and day turning
| out stocks and bonds for the unwary.
The New York Stock Exchange list
| is large and may be studied to ad-
| vantage. Most of the bonds listed
there have some merit back of them,
| just as have the issues offered on
| the local stock exchange. If you will
watch them closely you will find that
| issues paying the highest returns to
| investors are not quoted at the high
| est prices: that the life of a bond, and
| the question of safety are items of
the greatest Importance, also that
consideration is given to the partial
payment of the income tax on the re-
turn of the y per cent intangible.
Few bond issues take cognizance
| of the intangible tax, but the Ward
| man Park Hotel IS. have this specif1-
cation: Intangible tax paid by the
| Wardman Park Hotel Co, when re-
quested." The holders of these bonds
| should remember that additional 12
of L per cent.
Bankers Form Of Recreation.
The District Bankers Association
have held five annual conventions and
| is on the even of the sixth.
These gatherings, inaugurated at
Deer Park. Md, have been prolific
of much good to the local banking
fraternity and together with regular
meetings held in Washington have
brought about more harmony in the
business, some changes in the meth
DDS prevailing, and great broaden
| ing in the good fellowship and friend
ship between bankers and their COM
petitors in the same line of business
The first convention at Deer Park
was really one of the best, but was
| held under disadvantages. the Spe-
cial train having been delayed on
the road and arriving at it's destina-
| tion about 10 o'clock in the evening,
in the rain, with a walk up the hill TO
the hotel and an hours wait before
assignment of rooms.
| But the convention was chock-full
of business. Several meetings were
held, discussions were general, with
| intermiSsionS for meals, evenings be-
| ing given over to sessions also. Only
two of the guests played golf, and
| they made the trip for that purpose.
Second Gathering Huge Success.
| The second convention was one of
the most enjoyable; a little over
| crowded andnot given to furtherine
| outdoor sports. 1t was held on the
oughly appreciated by the partici-
pants. Community singing was never
| offered to better advantage and the
daily sessions of the bankers proved
to be most interesting.
And during the three days and nights
the Midland sailed around the lower wa.
ters Of Chesapeake Bay a visit was
| paid to Yorktown. at which point Harr,
| v. Haynes cashed a two-hundred-dollal
| check bearing sufficient Endorsements tt
have made good for a couple of millions
| At Norfolk. on the last night out, tht
bankers and their friends were the
guests Of the bankers Of Norfolk at ont
| of the most pleasant and remarkable re-