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of investment trusts which are being
presented to the American public will
read deeply into the record of this
period of British trust-company his-
tory, and will take pains to insert
in their trust indentures restrictions
against their own and their successors'
activities, so framed as
to make
impossible a repetition of the unfor-
tunate experiences which befell the
directors and investors in some of
the British trusts organized under
the spell of enthusiasm.

But restrictions alone will not provide sound management. There must be sincerity and a conscientious aim on the part of directors to protect the values entrusted to their care, rather than any ambition to reap large and quick profits through the control and manipulation of capital belonging to others. A clear-sighted investor examining the descriptive circulars of newly formed trusts will be able to identify those in which he may safely invest.

The Reserve Income


USINESS men and women should have a second or
reserve income distinct from that of their earnings-
to offset business reverses or declining earning ability,
and to purchase comfort when they retire.

The income from a reserve fund of sound investment
securities is the best bulwark against these ever-present
possibilities. Start now to build your reserve income.

Our monthly list of Investment Suggestions

will help you. Ask for folder, A-10

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International Silverplate— worthy the place of honor in your modern dining-room

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SINCE medieval days, our ancestors have rightly set much store by the family plate. International Silverplate is in every way worthy the honorable tradition.

A service of International Silverplate adds much to the appearance of a dining

room. It makes a well-cooked meal seem infinitely more attractive when it reaches the table.

As well as being a delight to the eye, it is both practical and permanent. Over a period of years, it is actually an economy! It cannot break or chip, in spite of accidents. Constant use and frequent washing keep it in prime condition. Yet the initial cost of this fine ware is not too great for even young people of the most moderate means to afford.

There are patterns of International Silverplate to harmonize with every style of decoration prevailing in American homes today. Every piece is guaranteed

to be highest quality and to give lasting satisfaction. Ask for International Silverplate by name at the better stores.

plate." Illustrations and text suggest many interesting Send for the free booklet, "The Rediscovery of Silver

ideas for arranging silverplate to its best advantage and for making it serve you beautifully. Write for booklet HW 90, Dept. E, International Silver Company, Meriden, Conn.


"... it is both practical and permanent"






I THINK of them as Bats, because they hate the light. Theirs is the jargon of Wall Street. They like you to believe their reputation and standing are unquestioned, and that they are indifferent to the publicity arising from the activities of the Attorney-General's office in New York, under the Martin Fraud Act, which have driven some of them from New York to Boston, while the Better Business Bureau has speeded their flight from Boston to Canada.

New York, Boston, Philadelphia, and other cities have made it hot for these vampires, but their activities. continue. For years mining stocks were their favorite vehicle. Then came fake oil stocks, next Florida or other real estate, then emerald mines, and more recently the tipster sheets, now in full bloom. That these tipster sheets are profitable may be surmised from the fact that the postage on one, which uses first-class mail, amounts to $30,000 a week. This one is mailed gratis for months at a time. Another, less voluminous, is sold at the rate of a dollar a month and promises huge profits if the investor will but purchase stocks it has picked for a rapid rise.

There is small danger that the experienced investor will be misled by these vicious papers. They all have certain earmarks which rouse suspicion. Several columns are devoted to a discussion of the market as a whole and to the action and price trend of two or three stocks which are listed on the New York Exchange all orthodox and sound. A page or more is given over to what purports to be correspond ence with subscribers in answering questions regarding holdings. Subscribers are urged to send in their lists of holdings for free analysis. It is sigificant in this page of correspondence

that a certain stock is insistently and especially recommended for purchase. Either on the front page or in double column on the second page appears an article with bold headlines telling in glowing terms of a bargain which will make history, and fortunes for those who rush their orders to buy. Note that these tipster sheets are exceptionally accommodating. They will not only analyze your list of holdings and tell you to sell your good securities in order to get the cash to buy their worthless paper, but they will also brush aside their own business and see to it personally' that your order is executed, saving you the bother of consulting a reputable broker.

Why do these gigantic frauds continue to thrive through the use of the mails? The silence of the victims is the answer. They are ashamed to admit that they have been duped. They will not take the matter up with the Post Office Department, and, until a definite complaint with all the facts in the case is filed, the Government has nothing upon which to base an action.

Supplementing the tipster sheet is the telegraph. Only the other day a successful investor handed me a telegram so typical of the methods of these Bats of Wall Street that I give the reader the advantage of the tip:

Tidal-wave buying sweeping in from Canadian interests sends PDQ to two dollars in short session to-day with orders for thousands of shares unfilled at the close. From what I know I now predict this avalanche of demand will make PDQ sell at ten dollars in possibly sixty days hence. Assays from even less time than previously predicted,

PDQ properties show PDQ as one of the biggest bonanzas of modern mining history. For gigantic profits buy it with both hands. Dig deep, but do it instantly. Wire your order now.

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Some bond investors demand the utmost in security-others look
more to income. Some need ready marketability-others place tax-
exemption first among their requirements. The National City Com-
pany always offers a wide choice of bonds of the various types, some
meeting the needs of one investor, some the needs of another. Compe-
tent bond men at any National City office will gladly help you make
a suitable selection. Ask for current list of recommended issues.

The National City Company

National City Bank Building, New York


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The cautious investor asks himself, "Why, if orders are coming in so fast, do they use the wires to get more orders?'

The telephone is another indispensable tool of these gentlemen. A friend occupying a position of responsibility in Cleveland was called the other day on 'long distance' and urged to buy a certain copper stock, said to be due for a remarkable advance. The fact that he had been called by an entire stranger from a distance and urged to buy in haste made him suspicious. He wisely did not purchase. It is common for these promoters to put in calls halfway across the continent and farther. They have found it pays. The telephone is also safe. In case of court proceedings the man who made the call cannot be identified.

Haste is always an outstanding earmark of this type of promoter. This urge for haste is the danger signal. The fake promoter is in a hurry because he must make his clean-up and disappear. Time presses.

One point regarding these 'blue-sky' securities should be borne in mind. The promoter usually pays almost nothing for his stock; often he merely buys an option at ten or twenty cents a share. The stock may be worth what he pays for it as a pure gamble in an unproven property. It may be worthless. The viciousness of the practice lies in the pricing and sales methods by which these securities are unloaded on a gullible public. To sell a ten-cent stock at thirteen cents on the basis of pure speculation would be to call a spade a spade, but to sell it at one, two, or three dollars and more, predict prices of ten dollars a share, and attempt to gloss over a theft by calling it an investment there lies the mischief.

Perhaps one of the stumblingblocks is the fact that so many people fail to distinguish between an investment and a speculation. The fact that a security is a stock or a bond is not the determining factor. There are bonds that are nothing more than speculations, just as there are stocks that have earned the

classification of investments. It is the financial record of the company that determines the status of its securities.

Our banks and investment bankers, chambers of commerce, and betterbusiness bureaus have spent thousands to educate the public on this single point, yet this same public eagerly pours out over one billion dollars a year to fatten these Bats of Wall Street.

Safety of principal is the cardinal and distinguishing characteristic one should demand of investments. A low yield on an investment is the natural corollary to this safety of principal, and the Simon-pure investor asks for no higher yield than is consistent with the degree of safety he demands.

The speculator, on the other hand, cares little for yield. He is concerned with profit. If, during his brief period of ownership, his security pays him something in the way of interest, or dividends, well and good. Often he buys a stock which has never paid a dividend, because he has reason to believe that dividends are just over the horizon. Once the first dividend is declared, he may sell that same stock, take his profit, and look for another stock, or a defaulted bond which may show him another profit.

There is a large group of securities which combine the characteristics of both investment and speculation, and should be properly considered as speculative investments. The factor of safety is sufficient to satisfy many business men and there is at the same time a possibility of appreciation in principal.

The Bats of Wall Street play upon the desire of those of modest means to improve their financial position, trick them into believing they are investing, and thus rob them of savings which should be either in the bank or in bonds of the highest grade. Millions would be saved if we would consult the cashiers of our banks, our investment bankers, or chambers of commerce or investment counsel, before making the purchase of any security, however attractive it may appear.

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