Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-04
RASKOB|NvEST|NG
I. PLAN IS CRITICIZED
Ability to Select Stocks Which
Will Rise Is Declared
Very Rare.
BY JOHN +. SINCLAIR,

NEW YORK, September John j.
Raskob, formerly the chairman OF the
finance committee of the General
Motors Co, and spoken of as the man
who has helped to create more mil
lionaires in the United States than any
other man in American business his
tory, has come forward with a get-r1ch
scheme that Is causing widespread oS-
cuSSion,
Recently he declared that If person
will save SIS q month for 20 years and
invest the money In SQUAD common
worth at least $40, 600 at the end OF
that time. Under such an arrangement
Raskob does not see why anybody
should be poor-eVerybedy can be rich
But would such an arrangement ANAL
w work out? What bank or building
loan association or life insurance COM
pany alters such q fabulous return?
If one compounds interest at per
cent during this period he would pc
very tar short of $4,000. OF course. II
enc could buy stocks that have large
chance for a rise, such as General
Motors has shown during the last
decade, then all those that bought those
particular stocks could sell at the IN
creased values. But all stocks nave no!
increased in such a way. 1t WOULD
take q wise man, indeed, TO pick STOCKS
that always rise.
The last I'VE years have seen the
greatest bull" movement IN american
history. Can any one guarantee tnat
such a movement will continue? It's
one thing to save regularly a certain
amount and let the interest accumulate,
but it is an entirely different thing 70
buy common stocks with no guarantee
of return and play for q large rise IN
the equities.
Some of the best stocks today are the
highest priced Some bank stocks, FOL
instance, are selling on basis Of "a
times their earnings.
II Mr.. RaSkob will take the record OF
common stocks during the so years
Immediately preceding the great war
and figure the average rise In the
stocks during that period, would MS
plan have produced the results ne sug-
Qests as practicable now? Ne, the
world hasn't yet reached the point
where common stocks, even good ones
are a sure fire bet.
Until that time arrives, every man
who buys stocks must take his chances
Soviet Russia is busy studying Amer
lea at first hand. Scattered about
Lie OulJCd Ala oNOhNE
of factories and manufacturing plants
1000 representatives of Soviet Russia
are learning American business methods
at first hand.
They are studying every piece OF
mechanism that has been worked out
as q result of American postwar ex-
. pansion and attempting in their way
to see If each particular machine can
be used in Russia.
Some of the largest business firms
In the United States are doing business
today in Russia. Ford is one Of them
General Electric Is another.
Henry Ford is the most popular figure
in Russia next to Nicholas Lenin, the
real founder of Soviet Russia.
Soviet Russia has sent some OF heI
ablest business men and bankers to
the United States in the last few years.
They are here to seek loans, to buy new
machinery and to establish a larger
degree of business relationship.
Politically Soviet Russia and the
United States are as far apart as the
poles, but in the field Of business, Soviet
Russia very frankly recognizes Ameri-
can world leadership.
I received recently a long distance call
from one of the great Midwestern cities
asking confirmation Of the report widely
circulated in that city-that their
largest bank was about to be taken
over by one of New York's big three.
Was or was not this rumor true?
I called up one of the vice presidents
of the New York bank. a man who
should know what is going on, and he
said that his particular bank had not
purchased any interest in any bank
outside of New York City.
Nevertheless, these rumors continue
with great persistence.
A study of banks in the IL largest
cities in the United States, which have
approximately At per cent of the total
bank deposits Of the country, show that
there were only three more banks in
the aggregate in these cities five years
ago, with deposits of at least $4,000, 900
or more, than there are today.
While rs small banks have failed in
Florida in recent months due to the
fruit fly, the aftermath of land booms
and gossip, and two small banks have
failed in New York City zone a State
bank and one a private institution and
several small banks have failed in New
Jersey and Alabama in recent months,
the general banking situation Is in ex-
cellent shape.
Reserves are high, assets are unusual
" liquid, and the movement toward the
larger banking unit goes on.
Electrical engineers are trying to find
a way to keep a million volts of cleo
tricity confined to wires, but the job is
o dificult one
For. electricity leaks out Of wires just
rs water leaks out of holes-if the pres
sure is too great. Lightning just won't
stay put" in wires when 1t hits. If ii
doesn't escape through the insulators
then it wild come out through the air
in beautiful blush spark called the
"carona."
How much electricity is lost in such
a discharge, Michigan electrical engi-
ncers are trying to find out. One of
them tried out an experiment by sit
ting on the running board of his auto
mobile, adjacent to one of the voltage
recording instruments, attached to the
transmission power.
Suddenly, he felt O distinct shock.
His car, insulated from the ground by
rubber tires. had collected some of the
electrostatic charge of the million volts
Injected into transmission lines eight
miles away and the charge escaped
to the ground through his body. The
engineers, miles away, later reported
that they heard cracking noise as the
high voltage charge passed along the
line.
The million-volt generator is mounted
on an auto truck trailer. It looks like
hose tower or hook and ladder. It
is held horizontally on the trailer and
covered with metal hoods when being
moved, but when artificial lightning is
to be hurled, the doors are moved and
one end of the rack is elevated by
electric motor. The upper end of the
rack is pointed to and connected with
the transmission wire overhead. Then
all is set for the lightning flash.
In the practical field of business.
millions of dollars can be saved every
month If a method is devised to keep
e1Acfricifu confif1ed IN the uyirex