Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-05

g. A. Photo. Map N. Y. Herald Tribune.
OF Virginia approve or disapprove OF
these attacks upon my reputation and
influence by these political assaSsins?"
Defends Prosperity.
Bishop Cannon insisted that a
Methodist minister or bishop was not
barred from earning a living by In
vesting his money or by conducting any
business in an honorable way. Indeed,
he pointed out many Methodist minis
tiers are compelled to work or carry on
business activities to maintain them
selves and their families, while at the
same time giving attention to their
duties as ministers. He said he had
become convinced that stocks represent
real values; that every great business
has been capitalized and stocks and
bonds have been issued to represent
actual values.
las a matter of fact" he said. "the
greater part of the business OF the
country is carried on today on the stock
and bond basis
The bishop also said:
1T did give very full and thorough con-
sideration to the question OF the pro-
priety and morality of the purchase OF
| stocks and bonds, both for investment
and for resale at a proflt. l became
convinced that there was very much
latent hypocrisy in the attitude OF very
many persons on this subject. some
! persons seem to think that all trading
! in Wall Street stocks is gambling. Some
| others think that part of 1T is gambling
| and part of it is honest What are
| the actual facts and implications there
| from"
Trading In Real Values.
THE daily and weekly papers of all
! descriptions carry pages OF informa-
! ton concerning stocks and bonds.
| When a man purchases or sells these
| stocks or bonds he is trading just as
much in real business values as when
he buys and sells lots. houses. wheat,
! tobacco or merchandise. either Tor m
vestment or immediate resale at pront.
A man may buy lot in new section
| OF a city because he believes there will
be an increase in value and pay one
fourth cash and give three notes secured
| by deed Of trust for future purpose OF
selling the lot at profit, and this Is
| legitimate business speculation. The
| man may use poor judgment and buy q
| j.. In the wrong location and may have
to sell it at loss. but he is using his
judgment and is taking his risk and he
may make profit or he may lose.
| Just so a man may buy 100 shares OF
stock after a careful consideration of its
value. he may pay one-tenth. one-fifth
or one-fourth of the value Of the stock
and put the stock in the hands of A
broker with the purpose of selling at
a profit when he can advantageously
do so. His Judgment may be faulty as
to the value of the stock or it may be
correct. In either event, whether in
the purchase of a lot or stock, the
principle is ex" city the same. A partial
payment is made and the mans lot or
stock Is held as collateral for the bal
ance due, and there may be profit
or a loss, in accordance with the cor
rectness of his judgment"
Bishop Cannon Said in 1914, because
| Of his attitude on prohibition, he was
| subjected to a similar attack as that
made on him today. because he had
| been dealing in SOCKS and bonds. He
said he was threatened at the time
with publication Of charges against him
and that finally one or two newspapers
did print stories.
KabIe Dealings Covered.
with regard. to the reports Of his
| dealings with Kable & Co. of New York,
which has failed. Bishop Cannon said
that all his purchases had been made
| for investment and for profit, but on
so-ca1led partial-payment plan. He
said he had no reason to suspect that
this company was not doing business In
an entirely honest way.
1T was clearly understood" continued
! Bishop Cannon, that while Mr.. Gold
hurst connected with Kable g. Coz had
discretion as to what stocks he should
+, buv, vet IL he exceeded my order and
| charged ME with more stock than could
| be carried on the monthly installment
| plan on the basis of my credit. it would
| be at his own risk. until approved his
action and agreed to furnish the initial
cash payment required. AS matter Of
| fact during the eight months of the life
| of the account ! was in Mr.. GoldhurSt's
ONCE only FIVE or six times, and on every
occasion 1 was obliged to state that
| could not accept some heavy contracts
( which had been made for my account
! and I gave instructions for immediate
resale. Sometimes 1t happened that or
! the same day on which large contracts
were charged to my account and wal
requested to accept them either In per.
| son or BY telephone or by wire, I de.
] clined and ordered resale at once, a.
| unwilling to assume such heavy obliga-
| tions. This accounts for the fact tina
| on some days there are large purchase,
| charged to my account followed by large
sales credited to my account on tina
same day. Finally in April I requested
| that all contracts charged to me bt
! closed except one for 200 shares Of Hud'
son Motors on which I decided to con-
| tinue to pay for investment or to ex'
change my equity for . lower-pricet
! stock"
Thought Failure Honest.