New Britain herald., 1928-04-12
BENNETT SPEAKS
 0N INVESTMENTS
Diversity Is Safety, Editor Tells
 Rotary Club Members

The only safe way to make an in- vestment Is to distribute ones in- vestments over a number of stable propositions. according to Frank P. Bennett. editor of The United States Investor. who spoke to the mem- bers of the Rotary club at the noon luncheon today.
 Mir. Bennett's address was on the subject of Investment Trusts" He gave brief history of the develop ment of investments by pointing out that the history of every country so far as its finances is concerned is based on three things, the need for outside capital to help develop the natural resources of the country, the development of the ability by the country of financing it's own re- sources and the reaching of the point where 1t can spread out and help finance foreign resources.
 He said the most pathetic book he ever read was the diary kept by the men who came over on the May flower. These men. in order to have their venture financed. were forced to sell stock in England to investors who insisted that each man consider himself one share of stock.
 In the early days of railroad transportation. he said, E. H. liar riman and J. r. Morgan had to go to Europe with their hats in their hand looking for investment capi- tai.
 In the third period. he said, the country becomes international and. having more money than is needed to develop it's internal resources, reaches out and begins to talk about foreign loans. This is the state the United States now has req ached, and the point where the United States has become the treasure house of the world. he said.
 It is at this stage that investment trusts first are heard of. The in vestment trust. he explained. is sim ply the application of the insurance principle to business. An insurance company which would try to do business in one community alone. would be a greater gamble. accord ing to the speaker. than anything in the history of the world, not except ing the Louisiana lottery. He ex- plained that if man pays $40 for insurance on a $l0,0o0 policy. he $ betting that his house will burn down. If 1t does, the insurance company pays him s10,0oo. If it doesn't the insurance company makes profit Of $40. But the pos sibility of a conflagration in the vi cinity of that house. keeps it an un- safe bet for the insurance company SO to avoid this danger. the con- pany takes few policies in New Britain. a few in Hartford. a few in Boston and in other cities. so that in the end the losses are smaller than the profits.
 He spoke of many spectators who hang around brokers offices by say ing that Every brokers office to- day reminds me of the rush for tickets for the Yale-Harvard foot baH game.' The wise investor, he told the Rotarians, puts his money into six or seven well founded in- dustrieA those dealing with the es- sentials of life.
 ''If a man intending to invest his all in one concern, invests in ono line of business he may find that the only companies in that line which have made any money are the small er one. He may select the shoe business and find it has not been paying during the past year. He may decide to invest in street rail-