Judge — July 1, 1922 — page 30: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

But 10% of All Loans are fit for Federal Bonds It has been said that the very cream of first mortgage real estate loans is offered Federal. And yet of all these but an average number ap- proximating 10% are found fit for Federal issues. Our standards are stringent to the point that 90% of all loans offered fail to pass. But the result has been to gain so complete a confidence from inves- tors that Federal Bond issues are taken up in person, by mail, and by wire, almost overnight, in a way of speaking. Write for our new booklet 6L 7% FEDERAL BONDS Are Better Bonds Federal Bond & Mortgage Co. Federal Bond & Mortgage Bldg. Detroit (ss1) Mail This Coupon peccccenoneerseesccccsccerececesscseers { Federal Bond & Mortgage Co. H Federal Bond & Mortgage Bldg., Detroit. Tam greatly interested in your 7% Better i INVESTMENT BUREAU ConpucTED BY THEODORE WILLIAMS Sulecriters to Jepas are entitled to anreere to inguiries on Anancial question, and in emergencics telegraph. No charge is made for this service. stamp should aleays be i mm unicati are treated confidentiall; “A two-cent pos f°" Aad cas el inquiries to the Ponanclel Editor, Suooe 6&7 West 434 Sta New nat giving full name and ezact street address, Anonymous communications will in no case be Cheap Issues That Yet Are Dear HE general run of this department's correspondents have clear and sen- sible ideas concerning the wares which the securities markets offer. But occasionally there comes in a stream of inquiries about certain highly speculative, not to say impossible and worthless, stocks, the letter writers evidently sup- posing that these issues may some day rise to very high figures. This class of inquiries is not so large as it formerly was, but it is still numerous enough to call for another warning against the kind of issues it so favors. Every person of experience knows that one can’t usually get a good thing for little or nothing. Only once in a long time does any such piece of luck befall a human being. THE man who bought a lot of poor apples because the cost was small did not get any more value than he paid for. In fact, he got less, for in picking it over he found that much of the fruit had rotted. Good things must almost always be paid for at their full value and this is as true of desirable stocks and bonds as of everything else. Yet many people who could not be fooled into buying decayed apples can be easily led to put their money into rotten so-called securities. Thousands of persons buy stocks simpl. because they are low priced and believed, therefore, to be cheap. Oil and mining, and some industrial, issues of par values ranging from one mill, one cent, five cents or ten cents, up to $1 have a resistless lure for unsophisticated mortals of limited means. That is why a billion dollars yearly is taken from ‘the pockets of the masses by rascally or unreliable pro- moters. UTTERLY ignorant of what consti- tutes merit in a stock, hosts of buyers seem to think that a share in one com- pany is as worth while as a share in any other, and having secured a few units of stock for a small amount of cash—say, 100 shares of 1c stock for $1, or 1,000 shares for $10, or 100 shares of 10c stock for $10, or 1,000 shares for $100—they indulge in roseate, get-rich-quick dreams. Sooner or later, the victims of the craze for cheapness are’ grievously disillusioned. The concerns which got their subscriptions may not be able to earn dividends and the majority fail and die, bequeathing to their stockholders a sad “‘morning after.” Many a dupe has sunk the hard-earned savings of a lifetime in fraudulent cheap stocks. 238 A low-priced stock may prove to be the dearest in the world, while a high- priced stock making a good return may relatively cheap. One share of $100 stock yielding dividends is better than 1,000 shares of 10c stock that never will be a dividend payer. How much safer it is to buy a good real estate or other bond making a fixed and certain return than a cartload of trash which will never be profitable to the buyer. Bonds and stocks that are sound investments. will not put wealth into anyone’s hands all at once, but their owners do not have to lie awake nights worrying over them. M** the tribe of people infatuated with cheapness in stocks rapidly decrease. I like better the attitude of the young couple who informed me that . they had inherited a few thousand dollars and were carefully investing in bonds of approved quality. Their letter said: “We don’t expect to get rich quickly, but we mean to be on the safe side and to make progress surely, if slowly.” This prudent man and woman are on the right track toward independence, if not affluence, and if they do not change their policy, they will never have cause in their old age to regret the folly of chasing will-o’- the-wisps into the bogs of poverty. Answers to Inquiries G., Tirrow, N. H.: ieoses Clrcatt hed s bed yout ti 1921 and earnings for we t quarter of 19%2 were poor. A block of the ferred stock was offered ately at pot many points below par, which indicated hope of an im- Provement in business later. — Lov, Mo.: The Lincoln Motor Car Co. has grorgasized. The property was sold to Henry Ford for 63,000,000 tnd this bore is by the re- ceiver to meet claims of creditors. ernment ‘a suit against the company for #6,000,000. Even if the Government loses, it is not believed that anything will be left for the st P., Brooxirx, N. Y.: The International Radio Cor- poration was only recently organized and its future is therefore sotrdy problematic. The fact that the stock sells for only 50c does not recommend it. The Radio Corporation of America is a stronger and better estab- Tshed eoterprse and it would srem preferable to buy ite shares even at several times the price of International Radio. The so-called radio craze appears to be similar to the automobile craze of years ago. Gyre Se redo instrumenta promises to continue heavy for R, Caxton, O.: If there are doubs about oat the sty and honesty of the management of a corporatior always well for stockholders to jake Prompt action and to demand an accounting, even if they have to secure an order from the court. You and your fellow preferred would be. wise to/combins our forces and to make a strong move for unpaid H., Brooxrs, N. Y.:_ It would be quite ‘co Hl to Federal Bond and Bond The boude wtseh r own are meritori-