UC-NRLF 
 
 ^B E7T ^2b 
 
 TPiE Art of 
 
 Investinc 
 

 
 
 
 
 LIBRARY 
 
 OF THE 
 
 UNIVERSITY OF CALIFORNIA. 
 Class ' 
 
 
 
 
 
Digitized by tine Internet Archive 
 
 in 2007 with funding from 
 
 IVIicrosoft Corporation 
 
 http://www.archive.org/details/artofinvestingOOhumerich 
 
THE 
 
 ART OF INVESTING 
 
 BY 
 
 A NEW YORK BROKER 
 
 }■ 
 
 OF / 
 
 NEW YORK 
 APPLETON AND COMPANY 
 
 1888 
 
/}/ 6 6 
 
 
 Copyright, 1888, 
 By D. APPLETON AND COMPANY. 
 
PEEFACE. 
 
 The appearance, over his signature, 
 in leading magazines, of the papers that 
 principally make np the following hro- 
 cjiure, has involved the writer in con- 
 siderable correspondence. A number of 
 parties have, in consequence, written to 
 him : some requesting a fuller statement 
 of his views on points partially dis- 
 cussed or merely touched upon; some 
 disputing his conclusions or having sug- 
 gestions of their own to offer ; and others, 
 who had been made aware of the exist- 
 ence of the publications through news- 
 
PREFACE, 
 
 paper notices or in some other way, and 
 not caring to be at tlie trouble and cost 
 of procuring tlie periodicals in wliicli 
 they were to be found, asking for a re- 
 production of such passages as might be 
 applicable to their special circumstances. 
 The interest, as evidenced by the corre- 
 spondence referred to, which the papers 
 as magazine articles have awakened, 
 seems to the writer to be ample apology 
 for their reappearance in more accessi- 
 ble and economical form if the dis- 
 cussion of a subject of such general con- 
 cern as the investment of money, with 
 a view to an income more or less fixed 
 and permanent, calls for apology. 
 
 Somewhat in the nature of a sup- 
 plement, has been added a chapter on 
 speculation. People having idle money 
 
PREFACE. 
 
 often find it difficult to decide whether 
 they had better invest it securely, con- 
 tent with the amount they have and the 
 revenue to be derived as interest, or 
 seek to add to the principal by ventures 
 necessarily more or less uncertain. The 
 temptations to the latter course that are 
 held out by our stock and other ex- 
 changes are very dazzling — sometimes 
 quite irresistible. It is to those institu- 
 tions that persons of a speculative turn 
 and with money in hand are apt to look 
 for the realization of their hopes. To 
 any who may be halting between the 
 policies spoken of, with an inclination 
 to do a little in stocks, the subjoined 
 criticism of the methods and bearings 
 of our leading exchanges that make a 
 business of shares and bonds may prove 
 
PREFACE. 
 
 to be both entertaining and instructive 
 reading. 
 
 A few alterations have been made 
 in the original text, and some additions 
 to cover points raised or suggested by 
 communications from friendly hands; 
 otherwise, the matter is unchanged. 
 
 As the author prefers to avoid the 
 suspicion of using this publication as an 
 advertisement of his business — that of a 
 broker in securities — the matter which 
 in another form appeared over his signa- 
 ture is now presented without that ap- 
 pendage. 
 
OOS"TEI^TS. 
 
 CHAPTER I. 
 
 PAGE 
 
 Investing ^ 
 
 goveenments ^^ 
 
 State Obligations ^^ 
 
 Municipal Obligations . . . '56 
 
 Raileoad Moetgages 65 
 
 Railboad Stocks *^^ 
 
 Othee Stocks *^ 
 
 Faem Moetgages • ' ^ 
 
 Ranch Secfeities ^2 
 
 Watee-Woeks Loans 96 
 
 Steeet-Railwat Bonds . • • .107 
 
 Miscellaneous Bonds 109 
 
 Mining Secueities HI 
 
 Beidge Bonds H^ 
 
 Substitution Secueities .... 115 
 
CONTENTS. 
 
 CHAPTER II. 
 Speoxjlating 
 
 PAGB 
 
 . 118 
 
 APPENDIX. 
 
 
 Investment Seoueities 
 
 . 155 
 
 New York Stocz-Exohange 
 
 . 157 
 
 Philadelphia Stock-Exchange . 
 
 . 185 
 
 Boston Stock-Exchange 
 
 . 190 
 
 Baltimore Stock-Exchange 
 
 . 196 
 
THE ART OF INVESTING. 
 
 CHAPTEE L 
 INVESTING.'' 
 
 "How can I invest my money to 
 make it pay a fair interest, and at tlie 
 same time insure its safety ? " is a ques- 
 tion daily asked by thousands. With 
 the multiplication, consequent upon the 
 growth of wealth among us, of that class 
 of persons who want to live by their 
 means, without care or labor, the num- 
 ber of anxious inquirers on that point is 
 
 * The greater part of this chapter appeared in 
 " The Popular Science Monthly " under the title of 
 " The Art of Investing." 
 
THE ART OF INVESTING. 
 
 constantly increasing. It would seem, 
 when reference is liad to the many secu- 
 rities, both bonds and shares, that are 
 offered, often at temptingly low prices, 
 to be a question very easily answered. 
 The truth is, that there is none more 
 difficult. The ordinary investor who 
 goes about the work of converting his 
 cash into paper combining the two ele- 
 ments of value spoken of, finding himself 
 hopelessly embarrassed by the seeming 
 richness of the market, soon gives up in 
 despair, and turns the job over to some 
 banker or broker who works for a com- 
 mission. Experience shows that even 
 then he is too often the victim of defect- 
 ive judgment or misplaced confidence. 
 If it is difficult to make money — a 
 proposition about which there will not be 
 
INVESTING. n 
 
 mucli diversity of opinion — it is in most 
 cases even more difficult to keep it prof- 
 itably employed. Men of prudence and 
 skill in tlie acquisition of capital often 
 sliow astonishing recklessness in tke dis- 
 position they make of it. The strangest 
 caprices take possession of them when it 
 comes to the critical moment that calls 
 for a choice of investments. And as 
 riches are always clothed with folded 
 wings ready to expand at the most un- 
 looked-for exigencies, it is not much 
 wonder that they frequently take to the 
 winds and pass beyond recall. 
 
 The history of investment securities 
 would furnish a most interesting study. 
 In no other department of business have 
 there been greater changes. The time 
 has been, within the memoiy of many 
 
12 THE ART OF INVESTING, 
 
 now living, wlien tlie man wlio liad 
 money to put at usury generally loaned 
 on personal indorsement, the borrower 
 relying on his neighbor or other good 
 friend to "back" his paper for him. 
 The mortgage on real estate, of course, 
 was known ; but, owing to the short in- 
 tervals for which loans were generally 
 made, was not often resorted to. The 
 shares of banking, turnpike, canal, rail- 
 way, and other incorporated companies 
 after a while began to absorb the money 
 of people who wanted to realize more 
 than current rates of interest, and were 
 vrilling to take corresponding risks. 
 
 Nor have we yet reached a finality in 
 the matter of investments. Changes and 
 innovations are of continual occurrence. 
 Not only are new secuiities coming upon 
 
INVESTING. 13 
 
 the market, but new subjects as a basis 
 for their production are industriously 
 sought after, and new forms for their 
 preparation are being invented. Such 
 things as commercial farm mortgages, 
 water-works loans, street-railway debent- 
 ures, etc., etc., were utterly unknown but 
 a short time ago. Progress in the manu- 
 facture of investment issues keeps pace 
 with all material developments. Every 
 newly-discovered force or process in me- 
 chanics means the appearance of another 
 detachment of paper securities. 
 
 The war of the rebellion popularized 
 the coupon bond, in consequence of its 
 adoption by the Government, and made 
 it the favorite form of investment paper. 
 Railroad and other corporations lost no 
 time in availing themselves of the confl- 
 
14 THE ART OF INVESTING. 
 
 dence wMcli tliat species of debenture 
 inspired, and States, cities, counties, etc., 
 were soon flooding tlie country witli ob- 
 ligations carrying long coupon attacli- 
 ments. Except for Government and 
 municipal uses, there never was a more 
 disastrous invention. It lias been tlie 
 means of numberless deceptions, and lias 
 inflicted heavier losses upon tlie invest- 
 ing public tlian all otlier devices com- 
 bined. Being supplemental to stock 
 certificates, it lias duplicated representa- 
 tives of tbe same values and led to ex- 
 cessive issues of paper; it lias separat- 
 ed capitalists from tlie management of 
 properties into whicli tlieir moneys have 
 gone ; and, being based upon mortgages 
 promising absolute security, it has too 
 often accomplished the grossest decep- 
 
INVESTING. 15 
 
 tion. Many a man lias purcliased and 
 paid a good price for a mortgage coupon 
 bond, giving him no control over his 
 security, who would have rejected a 
 share-certificate standing for an equal 
 interest in the property pledged, and 
 giving him the right to participate in its 
 management, with the possibility of a 
 greater return for his money. 
 
 Under the careless legislation of 
 many of the States, which has permit- 
 ted corporations to decide for them- 
 selves the amounts of obligations they 
 might put out, it is no wonder that the 
 privilege has been abused, and the mak- 
 ing of shares and bonds, the latter rep- 
 resented to be amply secured by mort- 
 gage liens, has been carried to criminal 
 excess. One illustration will suffice: 
 
i6 THE ART OF INVESTING. 
 
 The Arkansas Central Railway Com- 
 pany (the name indicates the locality) 
 built only forty-eight miles of its pro- 
 jected road. The road was of narrow 
 gauge, with very light iron, and in every 
 way cheaply constructed. It cost less 
 than ten thousand dollars per mile, in- 
 cluding equipment. As has been the 
 case with most of companies building 
 railways in new countries, help in its 
 behalf was asked from the communities 
 to be benefited, and their bonds amount- 
 ing to nearly half a million dollars were 
 given it by counties, cities, etc. Un- 
 der a statute providing for aid to rail- 
 roads when their beds could be utilized 
 for levee purposes, the company got 
 $160,000 of State bonds. Under an- 
 other statute it got, as a loan from the 
 
INVESTING. 17 
 
 State, its bonds to the amount of $1,- 
 350,000, wMcli were to be a first lien 
 upon tlie property. After such abun- 
 dant assistance, it would have appeared 
 hardly necessary for the company to put 
 out obligations of its own. However, it 
 proceeded to issue and market its owtl 
 debentures to the amount of $2,500,000, 
 of which $1,200,000 purported to be se- 
 cured by first mortgage, a representa- 
 tion that, for reasons already stated, was 
 not correct. In addition, a considerable 
 amount of stock certificates was issued. 
 Altogether, nearly $5,000,000 of paper 
 was put out and negotiated on the basis 
 of forty -eight miles of narrow-gauge 
 road. But this proved to be insufficient. 
 The road, for non-payment of interest on 
 its bonds, soon passed into the hands of 
 
i8 THE ART OF INVESTING, 
 
 a receiver, wlio found it in such an un- 
 finislied state that, with the court's per- 
 mission, he issued a considerable amount 
 of his own certificates to provide for ne- 
 cessary repairs and betterments. Then 
 the road— the product of so much out- 
 lay — was sold at public auction, and 
 brought the magnificent sum of $40,000, 
 which was paid, not in cash, but in re- 
 ceiver's certificates that had been pur- 
 chased at a great discount from their 
 face ! 
 
 The business of manufactuiing secu^ 
 rities has not been confined to railroad 
 builders. We now have stocks and 
 bonds upon the market representing 
 nearly all conceivable kinds of prop- 
 erty — telegraphs, telephones, mines, cat- 
 tle ranches, grain and grass farms, water- 
 
INVESTING. 19 
 
 works, bridges, oil and gas wells, elec- 
 tric lights, factories and mills of every 
 description, patent rights of all sorts, 
 steamboat lines, apartment houses, and, 
 in one instance, a cemetery ! And not 
 only are properties of many kinds used 
 to issue bonds upon, but many kinds of 
 bonds are often issued upon the same 
 properties. Thus we find among our 
 railroads not only first, second, and third 
 mortgages, but income bonds, converti- 
 ble bonds, consolidated bonds, redemp- 
 tion bonds, renewal bonds, terminal 
 bonds, divisional bonds, sinking-fund 
 bonds, " blanket - mortgage *' bonds, col- 
 lateral trust bonds, equipment bonds, 
 and bonds ad nmtseam, until they lap 
 and overlap in seemingly endless compli- 
 cation. Not that merely, but one issue 
 
20 THE ART OF INVESTING. 
 
 of bonds is sometimes made tlie basis for 
 other issues. Indeed, one of tlie money- 
 making devices of the time is the forma- 
 tion of companies that issue their bonds 
 on the security of other people's bonds 
 that they have purchased, either yield- 
 ing a higher rate of interest or obtained 
 at lower prices than they expect to re- 
 alize for their issues. There seems, in 
 fact, to be no limit to the production of 
 securities that are spread before capital- 
 ists. There never was a time when it 
 was so easy to invest money — and to 
 lose it. Of the securities that are offered 
 with first-class recommendations, it is 
 probable that about one third are actu- 
 ally good, one third have some value, 
 and one third are practically worthless. 
 Hence the very natural inference that 
 
INVESTING. 21 
 
 whatever art there may be in the mat- 
 ter of investing is to be exercised chiefly 
 in the avoidance of unworthy offerings, 
 and it is to that point that a profitable 
 discussion of the subject must be mainly 
 directed. 
 
 For the condition of things de- 
 scribed, the laws of some of our States 
 in giving corporations almost limitless 
 power to issue negotiable paper, as well 
 as in permitting all sorts of companies 
 to incorporate themselves, are, undoubt- 
 edly, very largely to blame. Our banks 
 are closely watched and very properly 
 restrained from taking people's money 
 on false pretenses; but how much bet- 
 ter is it for railway and other corpora- 
 tions to take it by means of legalized 
 fictitious evidences of value ? Banks 
 
22 THE ART OF INVESTING. 
 
 are by no means tlie only corporate in- 
 stitutions that need watching. One of 
 tlie reforms that would seem to be very 
 much demanded is legislation prohibi- 
 tory of the creation by companies ex- 
 isting by authority of law, of debent- 
 ures or scrip not representing moneys 
 actually paid into their treasuries, or 
 proprietary interests whose values are 
 to be determined by disinterested par- 
 ties. Pennsylvania has incorporated sub- 
 stantially such a provision in her con- 
 stitution. Her example should be fol- 
 lowed by all other commonwealths. But 
 as long as corporations are permitted, 
 almost without limitation, to flood the 
 country with seductive promises of mon- 
 ey payments and to have them offered 
 in all our financial marts, it behooves 
 
INVESTING. 23 
 
 investors to be correspondingly cautions 
 in making tlieir purchases. If the law 
 will not protect them, they should be 
 the more careful to protect themselves. 
 But the security behind or beneath 
 the debenture or other paper obligatoiy 
 is not the only thing to be looked into 
 by the investor. Even the form of the 
 document may be important. A case 
 in point, inasmuch as it shows how the 
 preparation of an undertaking for the 
 payment of money may change its ap- 
 parent value, would seem in this con- 
 nection to be appropriately quoted. 
 Some years ago certain townships in the 
 State of Missouri were desirous of aid- 
 ing the construction of railroads with 
 their credit. The State legislature, to 
 that end, passed an act authorizing the 
 
24 THE ART OF INVESTING. 
 
 issue and sale of bonds obligatory upon 
 them; but it was stipulated — a very 
 singular provision — that, instead of be- 
 ing put out by the townships, the bonds 
 should be executed by the officials of 
 the counties in which they were located. 
 Accordingly, debentures aggregating sev- 
 eral million dollars were thus prepared 
 and disposed of. The bonds bore the 
 seals of the counties and the signatures 
 of their officials. On the back and at 
 the top of each obligation in large let- 
 ters were the words "county bond." 
 The instrument began with the recital, 
 in the usual form, that it was issued by 
 the county ; but farther on, and in the 
 smallest type employed, came the state- 
 ment that it was executed for and in be- 
 half of a certain township, which alone 
 
INVESTING. 25 
 
 was to be responsible for its payment. 
 These bonds were extensively advertised 
 as "county bonds," and probably in 
 most instances, certainly in many, were 
 sold as sucli, and it was not until pur- 
 chasers liad parted witli their money 
 that they discovered that, instead of 
 getting the paper of well known and 
 wealthy counties, they had secured only 
 the obligations of townships they had 
 never heard of before. It was then 
 manifest enough that they had been 
 made the victims of a piece of very 
 sharp and very shabby practice. In 
 very many cases the buyers of bonds 
 and other securities learn, when it is 
 too late, that their purchases, owing to 
 some obscure and apparently innocent 
 
 passage that had been overlooked or 
 3 
 
26 THE ART OF INVESTING. 
 
 disregarded, are very different from 
 what they thouglit tliey were getting. 
 How often have careless investors tliat 
 supposed tliey were purchasing under- 
 takings that would be good for long 
 terms of years, and probably paid pre- 
 miums to obtain them, ascertained at 
 the end of comparatively short intervals 
 that they were forced to accept in pay- 
 ment the amounts nominated in the 
 bonds in consequence of unnoticed 
 clauses giving their makers power to 
 redeem at their option? The lesson of 
 such cases is obvious enough. It is that 
 no one should ever buy a moneyed un- 
 dertaking without having first carefully 
 read it. This may seem like an un- 
 necessary warning; but in truth it is 
 a most material one. Thousands and 
 
INVESTING. 27 
 
 thousands of dollars have been lost by 
 the neglect of tliis simple precaution. 
 "I didn't read the paper" is the ex- 
 planation that has again and again been 
 offered when time has disclosed a dif- 
 ferent investment from the one intended 
 to be paid for. The fact is that com- 
 paratively few unprofessional bond and 
 share purchasers ever carefully examine 
 the instruments they acquire. They 
 look at the headings, those parts that 
 are in big letters, and take the rest for 
 granted. It is a most unwise practice. 
 Unless you are previously familiar with 
 the document in all its parts, don't fail 
 to read it before you buy. Read it all, 
 the little type as well as the big type, 
 the indorsements, the coupons, and all. 
 Don't take somebody's else word for it. 
 
28 THE ART OF INVESTING. 
 
 Examine the seal, tlie signatures, and 
 even tlie embellislunents. Something 
 may be disclosed tliat will cliange your 
 mind and save your money. 
 
 But if tliere are tricks in tlie mak- 
 ing of securities, even more are to be ap- 
 prehended in the selling of them, and 
 should be guarded against with corre- 
 sponding diligence. It is a notable 
 fact that no poor securities are ever of- 
 fered. They are always good so long 
 as they are on the market. It is only 
 after they have been purchased that 
 they prove to be worthless. Interest 
 has never been known to fail on bonds 
 that were seeking investors, although 
 default has sometimes followed very 
 closely on the sale of the last obligation. 
 Indeed, it is no secret that interest is 
 
INVESTING. 29 
 
 often paid out of the proceeds of bonds, 
 particularly railroad issues, tlie purchas- 
 ers in tliat way getting a portion of 
 tlieir own money back while the pro- 
 cess of marketing them is going for- 
 ward, although such a thing has seldom 
 been known to happen when the entire 
 issue was disposed of. The advertise- 
 ments of the bond-sellers are sometimes 
 marvelous productions. ISTo such securi- 
 ties as they have to offer have ever been 
 on the market before. They are abso- 
 lutely safe ; they pay extra rates of in- 
 terest, etc., etc. The wonder is that, 
 with so much capital seeking invest- 
 ment, it is found necessary to advertise 
 such perfections at all. In such cases 
 it is hardly necessary to say that the 
 only safe rule for investors is to find 
 
30 THE ART OF INVESTING, 
 
 other uses for tlieir money, however 
 strong tlie temptation may be. 
 
 A common expedient of bond-mak- 
 ers and bond-mercbants is to fortify 
 tbeir issues with the favorable opin- 
 ions of eminent lawyers. Tbis is par- 
 ticularly tbe case wben tbe obligations 
 of municipalities, or of companies tbat 
 are dependent upon contracts witb mu- 
 nicipalities, are offered, municipalities 
 having shown an unpleasant disposition 
 to go back on their undertakings. No 
 exception can be taken to the practice 
 referred to, as counsel learned in the 
 law should in such cases always be con- 
 sulted ; but the writer has to say that he 
 has never yet known a security so poor 
 that a lawyer's opinion could not be had 
 to back it. Such testimonials should be 
 
INVESTING. 31 
 
 taken for what they are worth, and no 
 more. 
 
 When so many seductive baits are 
 offered; so many nets and traps, con- 
 trived and constructed by clever brains 
 and cunning fingers, are spread for the 
 capture of those having money, is it sur- 
 prising that the careless and credulous 
 are victimized, and even that the saga- 
 cious and prudent should sometimes be 
 taken in? Nevertheless, for the losses 
 they have sustained, investors, as a rule, 
 have themselves chiefly to blame. The 
 mistake made, in nine cases out of ten, 
 has been the purchase of cTiewp securities. 
 The hope of realizing a little more than 
 ordinary interest, by buying paper at a 
 discount, has proved to be the rock on 
 which unnumbered capitalists have split. 
 
32 THE ART OF INVESTING. 
 
 In addition to their money's worth, they 
 have endeavored to get something for 
 nothing, with the result most generally 
 of getting nothing for something. It is 
 remarkable how blind are people, ordi- 
 narily sagacious enough to make money, 
 to the fact that property can not pay a 
 revenue beyond its producing capacity. 
 For instance, how can a railroad com- 
 pany, whose line is wholly or mainly 
 built from the proceeds of mortgage 
 bonds, sell them at a heavy discount, 
 besides allowing large commissions for 
 the selling, and then pay a high rate of 
 interest on their face? Or how can a 
 poor agriculturist, occupying a half im- 
 proved farm out on the frontier, with a 
 family to support, and grain selling 
 barely above the cost of production, pay 
 
INVESTING. 33 
 
 ten or twelve per cent, npon tlie capital 
 witlL whicli lie does business. 
 
 By what rule or rules is the investor 
 to govern himself? No formula can 
 guarantee him absolute safety. One 
 thing, however, he can properly count 
 upon, viz., that he must expect to pay 
 a fair price for a good security — one 
 that Tvdll return him no more than a 
 moderate interest on his money. If he 
 wants to speculate, and is willing to 
 take risks, that is another thing. He 
 can then look for bargains. As a 
 general proposition, it can be asserted 
 that the day for high prices for money, 
 as the day for large profits in trade or 
 manufacturing, or, indeed, in any regu» 
 larly recognized business with us, has 
 gone by. The capitalist who sends his 
 
34 THE ART OF INVESTING. 
 
 money into a new section, or puts it into 
 a new meclianical process or a new con- 
 structive enterprise, may or may not 
 make a Mt, but for the ordinary and 
 conservative operator tlie condition of 
 tlie commercial and financial world gives 
 warning tliat only small profits are 
 to be looked for. The first and main 
 thing to be studied is safety. And yet 
 there is such a thing as going too far in 
 the matter of prudence. The investor 
 may pay too dearly for safety. There 
 are securities which, compared with oth- 
 ers that are to be had, sell at prices 
 much above their real value. The rea- 
 son is that everybody knows them to be 
 good, and investors who don't want to 
 take the trouble to investigate, or are 
 afraid to trust both their own judg- 
 
INVESTING. 35 
 
 ments and tlie counsels of their friends, 
 are willing to pay extra prices for them. 
 But there are plenty of others that may 
 be had at lower figures, which are just 
 as good. There is no reason in the 
 world why the investor should not get 
 at par all the paper he wants that will 
 yield him six per cent, interest, and be 
 as safe as any property can be under hu- 
 man supervision. As heretofore stated, 
 with the creation of new enterprises and 
 properties, and the development of old 
 ones, new securities are constantly ap- 
 pearing in this country, and a fair share 
 of them ought to be good. Indeed, our 
 securities ought to be the best in the 
 world. The sure and rapid growth of 
 our resources supplies a reliable support, 
 as long as fair intelligence and common 
 
36 THE ART OF INVESTING. 
 
 honesty attend their production. The 
 only thing is to choose with discretion, 
 so many doubtful and even fraudulent 
 issues appearing at the same time ; but 
 no more judgment is really demanded 
 than in purchasing lands and cattle. 
 
 Two common and often fatal mis- 
 takes should be avoided. One is in re- 
 lying solely upon the advice of a broker. 
 No one competent to form an opinion 
 for himself should put his pecuniary in- 
 terests unreservedly in the keeping of 
 another. Such absolute confidence in- 
 vites betrayal. By far the greater num- 
 ber of losses to investors has been in 
 securities purchased exclusively on the 
 recommendation of interested commis- 
 sion men. While it is well to get the 
 opinion of a reputable broker, the pur- 
 
INVESTING. 37 
 
 chaser should investigate and decide for 
 himself. The other mistake is in giv- 
 ing a preference to "listed" securities. 
 Many persons seem to think that 
 stocks and bonds must have a value if 
 they are quoted at some stock exchange, 
 forgetting how many "fancies" have 
 been ballooned until they have burst at 
 such places. On the contrary, such a 
 position is likely to expose them to ma- 
 nipulation for purely speculative pur- 
 poses. Stock-exchange quotations, as a 
 rule, are unsafe guides to buyers. They 
 represent not so much the value of the 
 property as the pitch of speculation at 
 the time. When securities are convert- 
 ed into foot-balls for gamblers to play 
 with, they are pretty certain to be either 
 too high or too low. The only ad- 
 
38 THE ART OF INVESTING. 
 
 vantage they can have is a readier mar- 
 ketability in case of an urgent need to 
 sell; but it is at the times when such 
 need is likely to exist that they are 
 pretty certain to be at the lowest point. 
 ISTo speculative help can long take the 
 place of real value. Securities, in the 
 long run, must stand upon their merits, 
 and purchasers have merely to follow 
 business principles as taught by the can- 
 ons of common sense. 
 
 In seeking investments, and espe- 
 cially long-time investments, there are 
 several things to be taken into account. 
 There is not only the question of the 
 kind of security to purchase, but the 
 question of the time to purchase. There 
 are opportunities to be looked for as 
 well as pitfalls to be shunned. It is 
 
INVESTING. 39 
 
 during periods and seasons of depression, 
 when securities are forced upon tlie mar- 
 ket, often to be sacrificed — and they are 
 certain to come if waited for long enougli 
 — that the shrewd investor finds his rich- 
 est harvest. That, however, can not be 
 said of the ordinary investor. He usu- 
 ally buys when securities are up and 
 confidence is unimpaired, and becoming 
 frightened as market values go down 
 sells when they are at the bottom, and 
 holds his money to reinvest in something 
 else no better, and probably not as good, 
 when the tide has turned. As a rule, 
 the best time to invest is when others 
 are unloading. In money matters it is 
 never safe to follow " the crowd." Nor 
 is it safe (which, however, is little more 
 than the expression of the same idea in 
 
40 THE ART OF INVESTING. 
 
 another form) to purchase a security 
 when it is on the " boom." A pecul- 
 iarity of our money market, conservative 
 as it is popularly supposed to be, is that 
 it is constantly changing its favorites. 
 Its offerings come in waves. Its deal- 
 ings at one time may be chiefly in rail- 
 ways, at another in municipal obligations, 
 and at another the excitement may run 
 to mining shares or mortgages on ranches 
 and real estate. For the time all pro- 
 fessional brokers and bond and share 
 sellers ui^ge their customers to adopt the 
 popular issue, of which, as the result of 
 the increased demand, there is almost 
 certain to be an excessive if not fraudu- 
 lent production. To yield to the press- 
 ure at such a time is always risky. 
 Old and tried securities, like old 
 
INVESTING. 41 
 
 friends, are likely to be tlie truest and 
 best. 
 
 One tiling tlie investor would do 
 well never to forget, viz., that tliere is 
 always plenty of good securities in the 
 market. No one mtk money need ever 
 fear that others will get all the solid in- 
 vestments, and, in the apprehension that 
 there will not be enough of that sort to 
 go round, put up with an inferior article. 
 Don't let him choose what is not alto- 
 gether satisfactory, under the impression 
 that nothing else as good or better will 
 offer. If he does so, sooner or later he 
 will regret it. Something good always 
 comes to him who waits with money 
 in his hand. 
 
 Another thing of a precautionary na- 
 ture it is well enough for the investor to 
 
42 THE ART OF INVESTING. 
 
 do, and tliat is to scatter Ids purchases. 
 The old adage about putting all the 
 eggs in one basket applies with peculiar 
 force to investments. The tendency with 
 those having but moderate sums to place 
 at usury, and who need to be the most 
 circumspect, is to make up their minds 
 in favor of a single line of securities and 
 put everything there. Of course, a fail- 
 ure in that quarter is particularly disas- 
 trous. The writer knew a party, some 
 years ago, who decided in favor of mu- 
 nicipal obligations, saying that he had 
 satisfied himself that, on the whole, there 
 was nothing else so reliable. Accord- 
 ingly he put his entire available means 
 into them. But practicing abundant 
 precaution, as he supposed, he divided 
 his money equally among municipal is- 
 
GOVERNMENTS. 43 
 
 sues of Illinois, Missouri, and Kansas, 
 tliey having the most paper at that time 
 on the market. He thought he was cer- 
 tainly safe as to part. But soon after- 
 ward a wave of repudiation sentiment 
 swept over that part of the country, and 
 every one of his bonds was left in de- 
 fault. It is weU enough to scatter in 
 kind as well as in locality. 
 
 With these preliminary observations, 
 as a further aid in making a choice it 
 may be well to take up the different 
 kinds of investments and consider them 
 separately. 
 
 GOVEEIS-MEI^TS. 
 
 Of these there were at one time out- 
 standing over two and a half billion dol- 
 lars ; and, of course, a great deal of in- 
 
44 THE ART OF INVESTING. 
 
 vestors' capital found accommodation 
 tliere, witli satisfactory returns ; but tlie 
 amount lias so diminislied, and is so rap- 
 idly diminisMng, while prices liave cor- 
 respondingly advanced, tliat private par- 
 ties who want to get the most they can 
 for their money no longer look to that 
 quarter. It is only when a place is 
 sousrht for trust and other funds for 
 which safety and facility of conversion 
 are wanted rather than a high rate of 
 interest, that governments are to be con- 
 sidered. They are absolutely good and 
 always marketable, but they are no long- 
 er to be classed with investments whose 
 claims call for serious discussion. 
 
 The foregoing remarks, it is hardly 
 necessary to add, refer exclusively to the 
 obligations of our own Government. If 
 
GO VERNMENTS. 45 
 
 we pass beyond tlie limits of this coun- 
 try, we find not only an abundance of 
 government issues tliat are seeking buy- 
 ers in tlie markets of the world, but a 
 corresponding variety in values and quo- 
 tations. It is estimated that the civil- 
 ized nations of the globe now owe, with- 
 out including local or divisional imder- 
 takings, not less than $27,000,000,000, a 
 sum which, if equally distributed, would 
 impose an incumbrance of $720 on every 
 square mile of their territory, and a per 
 capita indebtedness of $23 on all their 
 subjects. The foregoing amount has ne- 
 cessarily absorbed a very large propor- 
 tion of the world's investment capital, 
 and, as its tendency in many localities is 
 to increase, it will continue to hold it 
 for many generations to come. But, as 
 
46 THE ART OF INVESTING. 
 
 we in America can create more liome 
 calls for money, tlie manufacture of se- 
 curities being one of our chief indus- 
 tries, tlian we can supply, there is no 
 disposition among us to go abroad for 
 investments, and we need not concern 
 ourselves about the offerings made else- 
 where. 
 
 State Obligation's. 
 
 The unquestioned credit of " govern- 
 ments " has led many persons to the in- 
 ference that the next safest and best 
 investment securities are the obligations 
 of the States, as they rank second only 
 to the national authority. How far that 
 impression is verified by the facts of the 
 case will appear from the statement 
 that, of about twenty of the thirty- 
 eight States of the Union that have out 
 
STATE OBLIGATIONS. 47 
 
 sufficient paper to test their dispositions 
 in tlie matter of paying debts, only eiglit 
 or nine faithfully keep all their agree- 
 ments, and as many as twelve, being 
 nearly one third of the whole number, 
 are in default as to all or portions of 
 their outstanding obligations; that the 
 State bonds that are promptly provided 
 for amount to a little over $100,000,000, 
 while the principal of those that are 
 defaulted on or have been in default 
 (some of them compromised by the sub- 
 stitution of issues of reduced amounts) 
 is not far from $200,000,000 ; and that 
 the sum total of the delinquency, when 
 unpaid interest is added, exceeds $300,- 
 000,000. 
 
 It is true that a considerable portion 
 of the last-mentioned figure is made up 
 
48 THE ART OF INVESTING. 
 
 of what are known as "carpet-bag 
 bonds," having been put out by States 
 that had been in rebellion during the 
 process of their reconstruction, and 
 which are repudiated on the alleged 
 ground that the governments creating 
 them did not fairly represent the peo- 
 ple of the States. But that is by no 
 means true of all. Virginia owes the 
 larg^est amount, and the whole of her 
 indebtedness was created before the war. 
 The same thing can be said of Missis- 
 sippi's debt and of the most of that of 
 Tennessee and some of the other de- 
 linquent States. 
 
 When the reasons for their failure 
 to maintain their credit are sought for, 
 the most potential and obvious is found 
 in the fact that States, under the na- 
 
STATE OBLIGATIONS. 49 
 
 tional Constitution, can not be sued or 
 otherwise legally proceeded against on 
 account of their pecuniary undertakings, 
 at least to private parties, and tliat con- 
 sequently there is no way to compel 
 them to pay if they are indisposed to 
 pay. Some of them have shown that 
 they are not above taking advantage of 
 the situation. This is the more to their 
 discredit, because it was not the inten- 
 tion of the Constitution's framers that 
 they should enjoy any such exemption. 
 The Constitution originally gave a right 
 of action against the States. The 
 eleventh amendment, which inhibits the 
 suing of States by private parties, thus 
 taking away a right previously existing, 
 was meant to cut off certain claims 
 
 growing out of the Eevolutionary War 
 5 
 
50 THE ART OF INVESTING. 
 
 and for no other purpose, no one at the 
 time of its adoption dreaming that it 
 would be used by the States to shield 
 themselves from subsequently contracted 
 liabilities. The States that thus avail 
 themselves of it are really guilty of a 
 double fraud. But the fact that so 
 many of them have not scrupled to do 
 so, shows the danger of trusting to their 
 pecuniary promises. 
 
 Whoever buys the paper of a State 
 should do so with the distinct under- 
 standing that he has nothing but its 
 honor to rely upon, unless the commer- 
 cial relations of its citizens should be 
 of such a character as to make its finan- 
 cial credit important to their business 
 interests. There is for that reason little 
 likelihood of such States as New York 
 
STATE OBLIGATIONS, 51 
 
 and MassacliTisetts ever repudiating their 
 obligations. But when such conditions 
 do not exist, the faith of a State is an 
 uncertain dependence. The public con- 
 science in the matter of commonwealth 
 obligations is notoriously lax, what is 
 everybody's duty being looked upon as 
 no particular individual's; and such a 
 thing as State pride, except in the form 
 of prejudices and antipathies, which are 
 very likely to be directed against public 
 creditors, can scarcely be said to exist. 
 Of all the States, Virginia has professed 
 the highest regard for her reputation, 
 yet she has been the most brazen of 
 repudiators. 
 
 How easy it is for a State to ignore 
 its contracts without attracting public 
 attention to its conduct is strikingly 
 
52 THE ART QF INVESTING. 
 
 shown in the case of Texas, whidi is not 
 one of the twelve bond repndiators re- 
 ferred to. Texas has issued, and now 
 has outstanding, agreements to furnish 
 land from her public domain calling for 
 about eight million acres, an area near- 
 ly three times the size of Connecticut, 
 which she does not supply to the cer- 
 tificate holders. No charge has ever 
 been made that the warrants were ille- 
 gally issued by the State or improperly 
 obtained by those owning them. The 
 State had the land when they were cre- 
 ated, and could without difficulty have 
 met her agreements ; but, after the war- 
 rants were out, she proceeded to give 
 away such extensive areas for the build- 
 ing of a State house, for the endowment 
 of universities, for the pensioning of 
 
STATE OBLIGATIONS. 53 
 
 wounded Confederate soldiers, and for 
 other local purposes, tliat tlie holders of 
 her land scrip can get no satisfaction. 
 As matters stand, the State has the con- 
 sideration for the land, but those who 
 have her paper can get neither land nor 
 money ; and although this condition of 
 things has existed for several years, 
 during which there have been several 
 sessions of her legislature, Texas has 
 taken no steps to redress the wrong she 
 has done, and there seems to be very 
 little desire on the part of either offi- 
 cials or citizens that reparation should 
 be made or concern about the dis2:race 
 that attaches to them and to their 
 State. 
 
 A very little reflection suffices to 
 teach the unreliability of obligations 
 
54 THE ART OF INVESTING. 
 
 resting upon no more substantial sup- 
 port tlian public opinion. Divided re- 
 sponsibilities are always lightly es- 
 teemed, while no burdens are so sharply 
 felt as those imposed by the common- 
 wealth. Tax-payers will shrink from 
 public debts, who would never think of 
 shirking individual liabilities. National 
 pride and the other elements of which 
 patriotism is compounded, even in cases 
 where there may be no pressure from 
 the governments of foreign bond-hold- 
 ers, may, and probably will be sufficient 
 to protect national agreements, but the 
 undertakings of subordinate communi- 
 ties need more positive backing. It 
 does not follow that there will be no re- 
 pudiation because of an honest purpose 
 in their contracting. There is always 
 
STATE OBLIGATIONS. 55 
 
 the possibility of political or other dis- 
 turbances that may lead to revulsion of 
 sentiment or give demagogues the op- 
 portunity to assail the public credit. 
 We are not without illustrations in this 
 country. Virginia's bonds at one time 
 commanded higher prices than those of 
 the Federal Government ; yet they are 
 to-day selling at figures far below par, 
 and some of them, or the certificates 
 representing them, can be purchased for 
 a few cents on the dollar. That they 
 and State debentures generally, when 
 all the contingencies attending them are 
 considered, should bring as liberal prices 
 as they do, is the only thing about it 
 that is surprising. Such securities, in 
 the writer's judgment, are, at present 
 quotations, beyond all question, the 
 
56 THE ART OF INVESTING. 
 
 dearest investments we have in tlie 
 market. 
 
 MmnciPAL Obligations. 
 
 What has just been said concerning 
 State undertakings is, in part, true of 
 these. How ready our minor communi- 
 ties are to create debts, and then ignore 
 them, has been proved by very many 
 illustrations, some of them of recent 
 date. With the revival of general busi- 
 ness at the close of the war, came a 
 period of rapid development in some of 
 the newer parts of the country. Nu- 
 merous railways were projected, and 
 municipalities were called upon to aid 
 in their construction by the donation of 
 bonds. The market was soon flooded 
 with them, particularly from the States 
 
MUNICIPAL OBLIGATIONS. 57 
 
 of Illinois, Missouri, Kansas, Arkansas, 
 and their immediate neighbors. But 
 tlie enthusiasm that led to their creation 
 was quickly succeeded by disgust when 
 the bui^dens they imposed began to be 
 felt. Many were repudiated, and, but 
 for fear of the courts, that would have 
 been the case practically as to all. In 
 Missouri a Repudiators' State conven- 
 tion was held, and resolutions denying 
 all moral responsibility on account of 
 municipal issues, and advising general 
 legal resistance, were published to the 
 world. Nearly one half of the indebted 
 cities, counties, and towns of Illinois and 
 Kansas denied their liability, and in Ar- 
 kansas repudiation was universal. Nor 
 were there lacking such examples in the 
 East. Very many investors who had 
 
58 THE ART OF INVESTING. 
 
 put their money into tlie rejected bonds, 
 became frightened, and sold out at what- 
 ever figures they could get. The aggre- 
 gate loss was very great. 
 
 Nor are such cases at an end. The 
 writer has before him, as these pages 
 are being prepared, a number of certifi- 
 cates of indebtedness recently put out 
 by one of the best-known and most 
 wealthy counties of Colorado. One of 
 the warrants was issued in payment for 
 furniture for the local court of justice, 
 several for salaries of county officials, a 
 number for witness-fees, etc. All were 
 created for purposes entirely proper and 
 necessary, and yet payment is absolutely 
 refused. 
 
 As a general thing, repudiated mu- 
 nicipal undertakings, being sustained by 
 
MUNICIPAL OBLIGATIONS, 59 
 
 the courts, have in the end been paid or 
 compromised; but many of them have 
 been defeated on technical grounds, and 
 proved wholly worthless in innocent 
 purchasers' hands. The wealthy capital 
 of the State of Kansas, to the State's 
 disgrace as weU as her own, has to-day 
 outstanding $100,000 of bonds which 
 she does not pay because the courts 
 have held that she can not be legally 
 compelled to pay them ! Everybody 
 has heard of the case of Memphis, Ten- 
 nessee, which, in order to escape pro- 
 ceedings for the enforcement of her obli- 
 gations, got her charter repealed, and 
 ceased to be an organized city. 
 
 What has been said concerning the 
 moral strength, or rather moral weak- 
 ness, of State bonds, will apply with 
 
6o THE ART OF INVESTING. 
 
 equal force to those put out by munici- 
 palities. The people in tlie one case 
 are no more honest than in the other ; 
 and local pride, except on the part of a 
 few leading commercial cities, in such 
 matters counts for very little. Never- 
 theless, as will be seen, municipal obli- 
 gations have an important element of 
 security that State issues do not possess. 
 Their collection, provided they are prop- 
 erly created, can be legally enforced. 
 But this fact should be accepted for no 
 more than it is worth. While the bulk 
 of the paper put out by our municipali- 
 ties is undoubtedly good, the only safe 
 course in buying it, in very many in- 
 stances — ^possibly a majority — is to pro- 
 ceed upon the assumption that payment 
 will not be made if it can be avoided, 
 
MUNICIPAL OBLIGATIONS. 6i 
 
 and to graduate prices as well as adopt 
 precautions in accordance witb. tliat 
 view. The aspect of tlie matter pre- 
 sented is not particularly charitable or 
 flattering; but, whoever invests his 
 money on a different one, runs an excel- 
 lent chance of losing it. 
 
 Hence, in taking municipal securi- 
 ties, it wiU be seen how important it is 
 that all points affecting their validity 
 should be inquired into. One of the 
 first questions to be settled is whether 
 they have been the subject of litigation, 
 and what, in that case, has been the re- 
 sult. Another is whether they belong 
 to the original issue, or have been put 
 out in settlement of an earlier and dis- 
 puted series. Compromise municipal 
 bonds have generally been good, al- 
 
62 THE ART OF INVESTING. 
 
 thougli there have been instances in 
 which even they have met with opposi- 
 tion from their makers. Fortunately 
 for later buyers, the litigation affecting 
 municipal undertakings has been so ex- 
 tensive that nearly all questions that can 
 possibly involve their validity have 
 been passed upon by the courts, and it 
 is not, therefore, now a difficult matter 
 to determine, if reasonable prudence is 
 exercised when such securities are of- 
 fered, whether they will stand the legal 
 test. But, of course, legal considerations 
 are not the only ones to be studied. 
 The pecuniary responsibility and gen- 
 eral credit of the contracting communi- 
 ties should not be overlooked. 
 
 The importance of the position 
 among investments that is held by mu- 
 
MUNICIPAL OBLIGATIONS. 63 
 
 nicipal issues is apparent as soon as we 
 consider tlie formidable sum which, in 
 the aggregate, they make up. In 1880, 
 according to the census taken that year, 
 they amounted to $871,507,373. But, 
 enormous as that figure appears to be, it 
 was considerably short of the actual to- 
 tal, because very many issues were then 
 repudiated or in litigation, and, their va- 
 lidity being denied, they were not re- 
 ported to the census-takers by the 
 makers of them as any part of their 
 debts. The most of them have been 
 sustained, and with them and the addi- 
 tions that have since been made in new 
 undertakings, the present aggregate 
 would doubtless considerably exceed a 
 thousand million dollars. A great deal 
 of investment capital is, therefore, in 
 
64 THE ART OF INVESTING, 
 
 them. In tlie main it is well and profit- 
 ably placed. As our cities and otlier 
 municipalities grow in wealth and popu- 
 lation, they become better able to take 
 care of the paper they have out ; partic- 
 ularly as their debts of late years have 
 not increased as they formerly did. A 
 number of the States have by constitu- 
 tional enactment prohibited their com- 
 munities from making donations of 
 bonds to railroads and other corporate 
 enterprises, and others have so re- 
 stricted them that the worst abuses of 
 the practice are no longer possible. On 
 the whole, if proper precautions are 
 taken by the buyers, municipal paper 
 may now be looked upon as one of our 
 safest and most remunerative invest- 
 ments. 
 
RAILROAD MORTGAGES. 65 
 
 Eailkoad Moetgages. 
 
 We have now come to a class of 
 securities in wliicli by far the greatest 
 amount of money has been invested ; 
 much of it permanently, as the class 
 under consideration has been the grave- 
 yard of a vast aggregate of capital. An 
 idea of the volume of interest-bearing ob- 
 ligations predicated upon railway prop- 
 perty in this country can be formed 
 when it is known that, at the time these 
 pages are written (1887), our operated 
 raiboad lines, all told, foot up not less 
 than one hundred and thirty-three thou- 
 sand miles. The portion that is unen- 
 cumbered is so small as to be scarcely 
 worth considering. The average funded 
 indebtedness is about $30,000 per mile. 
 
66 THE ART OF INVESTING. 
 
 or, in all, $4,000,000,000. But tliat 
 figure, enormous as it is, by no means 
 tells the whole story. So many rail- 
 roads liave been foreclosed and sold 
 under one series of bonds, tliat they 
 might be used in reorganization pro- 
 ceedings as a basis for another issue — 
 the process in some cases being several 
 times repeated — that it would proba- 
 bly be no exaggeration to say that the 
 liability, one time or another created, 
 would average nearly $50,000 per mile, 
 or a grand total of $6,000,000,000. 
 
 As our railways, with few excep- 
 tions, are valuable and productive proper- 
 ties, they furnish an excellent security 
 for interest-bearing paper, provided al- 
 ways that they are properly managed 
 and not overburdened with debt. There 
 
RAILROAD MORTGAGES. 67 
 
 are at all times good railroad bonds in 
 the market; the trouble is, that there 
 are poor ones there also. How is the 
 investor to discriminate between them ? 
 When the mortgages are on roads that 
 have been in operation for considerable 
 periods, there is little difficulty in reach- 
 ing safe conclusions. The principal 
 question involved is that of earning 
 capacity, considered in connection with 
 amounts of funded liability, and our 
 railroad manuals furnish all needed 
 data on those points. Of course, there 
 is always a danger from rival enterprises 
 in the shape of " paralleling " lines, 
 and possibly a greater one from speculat- 
 ing directors, who are willing to wreck 
 the properties intrusted to their charge ; 
 but the peril is small in comparison 
 
THE ART OF INVESTING. 
 
 with the interests involved. The puzzle 
 is when it comes to the paper of new 
 roads — of roads that are in course of 
 construction or Just completed — and gen- 
 erally by far the greatest amount of 
 railroad bonds offering in the market 
 is of this description. Here the earn- 
 ings guide-board is lacking. By what 
 rule or rules is the investor in such 
 cases to govern himself ? — ^because many 
 of the new securities are good, and as 
 they can be had at lower figures than 
 old ones, when properly sifted from the 
 others they offer bargains that should 
 not be neglected. The answer involves 
 a brief description of the prevailing 
 methods of railway construction. 
 
 It is quite within bounds to say that 
 the principal incentive to the building 
 
RAILROAD MORTGAGES. 
 
 of railroads nowadays is the expecta- 
 tion of making profit out of their con- 
 struction. The time for making roads 
 at a sacrifice to their projectors, and 
 because they are wanted by the public, 
 has gone by. Kailroad-building is now 
 a regular industry — as much so as the 
 erection of houses or the manufacture 
 of machinery. When a new railway 
 enterprise is undertaken, its authors ex- 
 pect to make the road not only supply 
 funds for its own construction, but to 
 leave them a handsome balance over. 
 This is accomplished by mortgaging the 
 property to that extent that the bonds 
 can be sold for more than it will cost. 
 In that case they are very likely to 
 exceed in amount, although not always 
 necessarily so, the security on which 
 
70 THE ART OF INVESTING, 
 
 they rest ; in other words, be composed, 
 in good part, of "water." Default in 
 tlie payment of interest, and the bank- 
 ruptcy of the enterprise, are the usual 
 consequences. What follows is matter 
 of routine. The property is put into 
 the hands of a receiver, the securities are 
 effectually discredited — perhaps bought 
 up by a syndicate of crafty speculators 
 — and then the work of reorganization 
 is entered upon. The reorganizing of 
 broken-down railroads has become an- 
 other regular and profitable business. 
 Calculation is made to determine on 
 how many obligations the property can 
 earn interest, and it is arranged to re- 
 issue for that amount, the old securities 
 being proportionately exchanged and re- 
 tired. Their holders, who are usually 
 
RAILROAD MORTGAGES. 71 
 
 glad to save sometliing out of the wreck, 
 are expected to accept bonds for a 
 smaller face value, and probably at a 
 reduced rate of interest, and at the same 
 time meet a cash assessment to cover 
 the cost of the operation. They not 
 only have the water squeezed out of 
 their holdings, but they have to pay 
 for the squeezing. 
 
 The lesson to be drawn from the 
 foregoing facts is easily stated. Let 
 the investor, before he purchases, ascer- 
 tain whether the bonds offered him are 
 secured on a road that has gone through 
 the reorganization process; and if not, 
 unless he feels that he is compensated 
 for the risk he takes by a great reduc- 
 tion in price, he had better keep his 
 money, or find some other place for it. 
 
72 THE ART OF INVESTING, 
 
 Reorganization is almost certain to come 
 sooner or later. It is tlie rock ahead. 
 There are exceptional cases, of course, 
 and if tlie investor has the means of 
 making a thorough investigation, he can 
 take advantage of them; but he ought 
 to be very sure of the ground before 
 venturing upon it. 
 
 Raileoad Stocks. 
 Of course, many of these are good, 
 and a great deal of money is profitably 
 invested in them ; but, as a rule, rail- 
 way bonds, while at times possibly not 
 yielding as liberal returns, are much to 
 be preferred by ordinary capitalists. 
 There are many things endangering 
 stocks that do not threaten mortgage 
 bonds. The latter are secured upon 
 
RAILROAD STOCKS. 73 
 
 property that is permanent, but the 
 value of stocks rests upon management 
 that is subject to constant change. The 
 ambition of railroad directors is even 
 more to be dreaded than their dishon- 
 esty. How many magnificent railway 
 properties have been ruined by the sui- 
 cidal policy of extending roads, adding 
 branches or taMng on leased lines ! 
 More particularly has this been the case 
 when their stocks are listed at some 
 exchange, and their managers happen 
 to be operators there. The temptation 
 to increase or diminish quotation values, 
 for speculating purposes, is then a 
 constant menace to conservative share- 
 holders. The fact that a stock pays 
 dividends, which is the only thing that 
 the most of investors look to, is no cer- 
 
74 THE ART OF INVESTING. 
 
 tain criterion of value unless tlie con- 
 trol of the property can in some way 
 be satisfactorily guaranteed, 
 
 Othee Stocks. 
 Of tliese tliere is no end. Tlie tend- 
 ency of business, owing partly to an 
 abundance of capital and partly to in- 
 creasing competition, is to a large scale 
 of operations, if not to absolute monop- 
 oly. One consequence is, that it is more 
 and more passing from private parties 
 into the hands of corporations. Cor- 
 porations issue stocks, and sometimes 
 that is one of the leading purposes of 
 their formation. Some of the stocks 
 are good and a good thing to have, and 
 others are wholly worthless. No rule, 
 beyond the exercise of common sense, 
 
OTHER STOCKS. 75 
 
 and the use of diligence in acquiring 
 reliable information, can be given for 
 their selection. Some dangers, however, 
 can be pointed out. The greatest of 
 these is the temptation of large divi- 
 dends. Investors are altogether too 
 prone to accept present realizations as 
 evidences of future profits. It may be 
 taken as a rule that, in this age of 
 plentiful money, no legitimate business 
 that is open to public competition will 
 long pay exceptionally well. The greater 
 its earnings at first, the stronger will be 
 the competition in the end. Hence we 
 find that many manufacturing compa- 
 nies, especially in New England, that 
 made handsome returns to their share- 
 holders for considerable periods, have 
 gradually ceased to pay dividends at 
 
76 THE ART OF INVESTING. 
 
 all, or been forced into liquidation. If 
 not strictly a legitimate business, any- 
 thing in the nature of profits must be 
 deceptive. 
 
 When corporations enjoy monopolies 
 by virtue of patent rights, their earnings 
 have often been very great, and early 
 investors have made splendid fortunes. 
 Those who come later, however, take 
 chances that are too frequently under- 
 estimated. There is always the danger 
 of new discovery. Gas is threatened by 
 electricity, the telegraph by the tele- 
 phone, and even steam is menaced by 
 new-fangled motors. Turnpikes and ca- 
 nals have been superseded by railways, 
 and old railroads may at any time suffer 
 from the competition of new ones. An- 
 other fact which is too often lost sight of 
 
OTHER STOCKS, 77 
 
 is that investing in a patent right, or in a 
 business founded upon it, is like invest- 
 ing in a mine that is being constantly 
 worked out. Every hour shortens its 
 monopoly. But the greatest danger in 
 such cases is over-capitalization. Such 
 stocks nearly always contain too much 
 water, and water invariably tends to 
 lower levels. 
 
 In handling shares the highest art is 
 in selling rather than in buying. That 
 is something that the most of -investors 
 do not understand. They hold on too 
 long. When they have a good thing, 
 they infer that it will always remain so, 
 and accordingly retain it until its value 
 has departed or greatly deteriorated. 
 Stocks require constant watching. If 
 any one wants to go to sleep on his in- 
 
78 THE ART OF INVESTING. 
 
 vestments lie had. better select mort- 
 gages. 
 
 While it is true that numerous stocks 
 are very much like lottery-tickets — a 
 good many of them, and among them 
 the shares of mining companies, from 
 the very nature of the case — and deal- 
 ing in them is a species of gambling, 
 the observation is not true as to all. 
 The law watches over some of them in 
 a way to protect them from the most 
 obvious dangers. For that reason, bank- 
 stocks can generally be relied upon as 
 representing actual cash investments. 
 In some of the States the same thing 
 is true of insurance companies' shares. 
 Efforts have even been made, in certain 
 quarters, to apply the rule to all cor- 
 porations; but, as the corporation laws 
 
FARM MORTGAGES. 79 
 
 of other States are generally open for 
 anybody to organize under, sncli restric- 
 tions have little practical value. In 
 acquiring stocks, it is always well to in- 
 quire — a point generally overlooked — 
 under what statutes the companies have 
 been organized. If they are found to 
 exist by virtue of the corporation laws 
 of States that are notoriously lax in 
 their requirements — especially if their 
 corporators are residents of other States 
 — the presumption is against them. 
 There is pretty certain to be bad faith 
 in their inception, and a bad beginning 
 is likely to make a bad ending. 
 
 Faem Moetgages. 
 We have now reached a class of 
 securities that has been steadily grow- 
 
8o THE ART OF INVESTING. 
 
 ing in popularity, and more and more 
 has absorbed tlie capital of investors. 
 That it must have merit is a fair infer- 
 ence. All things considered, it is doubt- 
 less the best now offered on a large 
 scale. Land in this country is steadily 
 appreciating, except in a few of the 
 older sections. There is no reason to 
 apprehend, at least for years to come, a 
 turn in the tide. Hence, paper resting 
 upon landed security, especially in the 
 newer and more rapidly-developing dis- 
 tricts, if properly graduated in amount, 
 is almost certain to be good. What is 
 required is sufficient care and judgment 
 in placing the loans ; and so complete is 
 the system applied by some of the parties 
 that make a business of putting mort- 
 gages upon land, in apportioning their 
 
FARM MORTGAGES. 8i 
 
 money allotments to the market values of 
 property, tliat they can be accepted with 
 even greater confidence than if arranged 
 by capitalists themselves. Hence many 
 savings-banks and other institutions of a 
 fiduciary character, as well as numerous 
 conservative individual investors, have 
 put their money into paper secured on 
 farming-lands, and lands which they 
 have never seen, and had no opportu- 
 nity to see. 
 
 At the same time it must be remem- 
 bered that, if the strictest good faith 
 is not observed, there is here a danger- 
 ous opening for fraudulent imposition. 
 Should there be collusion between the 
 loaning agent and the land-owner, the 
 advance may be in excess of what is 
 justified by the value of the realty, or 
 
82 THE ART OF INVESTING. 
 
 the title to tlie latter may be defective. 
 The surprising thing is, when the popu- 
 larity of farm-mortgages and the extent 
 to which they have been dealt in are 
 considered, that cases of deception have 
 not been more numerous. As it is, they 
 have not been wholly wanting. The 
 writer once had occasion to visit what 
 was called a farm, and as such had been 
 made the basis for a loan, in one of the 
 newer States. He found a piece of prai- 
 rie-ground on which there were signs 
 of occupancy at some considerably ante- 
 rior period ; but which was then deserted, 
 and to all intents and purposes mid 
 and waste. It was worth no more than 
 land in the same neighborhood, on which 
 there had been no attempt at improve- 
 ment, and that could be purchased for 
 
FARM MORTGAGES. 83 
 
 less to the acre than the mortgage upon 
 this property. The owner, having se- 
 cured such a liberal accommodation 
 through the carelessness or knavery of 
 some loaning agent or dealer in mort- 
 gages, had pocketed the money instead 
 of expending it on his place, and left 
 the ground for his creditor to make the 
 most out of that he could. Competi- 
 tion among professional money-lenders 
 in some of the Western States has be- 
 come so sharp that such cases are not 
 only possible but probable. Villages 
 away out on the frontier, with scarcely 
 sufficient population to make respect- 
 able settlements, are often the sites of in- 
 vestment companies — sometimes of sev- 
 eral of them — doing business under most 
 pretentious names, and offering amounts 
 
84 THE ART OF INVESTING. 
 
 of paper that, in view of the surround- 
 ings, are truly marvelous. Nothing 
 which, by the most liberal interpreta- 
 tion, can be called a farm, seems to es- 
 cape them. The writer was not sur- 
 prised, when told by "one of the na- 
 tives " of a border community, that 
 there was not a hen-coop in his part 
 of the country that did not have a mort- 
 gage on it! 
 
 One of the devices of these enter- 
 prising companies is to offer their own 
 guarantees as to both principal and in- 
 terest of all mortgages negotiated by 
 them. It is hardly necessary to ask 
 what, in a majority of cases, such in- 
 dorsements are worth. The writer 
 knows of one company that claims a 
 capital of only thirty thousand dollars^ 
 
FARM MORTGAGES. 85 
 
 and it is doubtful if lialf that amount 
 were ever in its treasury, which, by its 
 own profession, has disposed of indorsed 
 mortgages amounting to several million 
 dollars. The only safe policy, in buy- 
 ing paper of this description, is to deal 
 with parties of kno^vn responsibility in 
 the business, and that have reputations 
 which they will naturally be most anx- 
 ious to protect. There are a number 
 of such concerns, and it is here unneces- 
 sary to mention them. Some of them 
 are individual operators, some business 
 firms, and some incorporated institu- 
 tions mth large resources that make a 
 specialty in this line. It would not 
 seem to make much difference which 
 is dealt with, although when the loans 
 have a good while to run, and the in- 
 
86 THE ART OF INVESTING. 
 
 terests to be watched over are at a dis- 
 tance, prudence would suggest, in view 
 of tlie uncertainty of human life and 
 the many vicissitudes that fortune has 
 in store, that it would be wise to deal 
 with parties having the elements of 
 greatest permanency, and which are 
 likely to be corporations. 
 
 It is scarcely necessary to add that, 
 in selecting investments of this sort, 
 there is a choice apart from the market 
 values upon which they are secured. 
 What is wanted is, not merely safety as 
 to the principal of the loan, but regular- 
 ity in the payment of interest. In sec- 
 tions where only one crop is depended 
 on by agriculturists, such as wheat or 
 cotton, there is greater danger of de- 
 faults from natural causes than in dis- 
 
FARM MORTGAGES. 87 
 
 tricts where there is a variety of produc- 
 tions. Then, there is a drfference in 
 populations. Some have sounder no- 
 tions as to financial obligations than 
 others. It is hardly to be expected that 
 individuals in communities that repudi- 
 ate or neglect public debts, will be shin- 
 ing examples of personal integrity. It 
 will always be well to give the go-by to 
 repudiating districts. Apart from the 
 general lack of sound business ethics in 
 such localities, there is a reason why it 
 is unsafe to trust the monetary contracts 
 of their people, and that is the danger 
 to be apprehended from unfriendly col- 
 lection laws. When communities take 
 to fighting creditors, they are not likely 
 to confine their opposition to any one 
 class. By means of exemption laws, 
 
THE ART OF INVESTING. 
 
 stay laws, limitation laws, assignment 
 laws, etc., they can make it almost as 
 difficult to collect from individual debt- 
 ors as from tlie public, and, as a matter 
 of fact, we find legislation of tbat sort 
 most pronounced wherever common- 
 wealth and municipal undertakings are 
 least respected. For instance, Texas, in 
 selling her lands to outsiders, and then 
 converting them to the uses of her own 
 institutions and citizens, as heretofore 
 described, has shown an utter disregard 
 of all moral obligations, and here it is 
 that the laws have been apparently 
 made with special reference to protect- 
 ing local debtors from the clutch of out- 
 side creditors. In the most of the 
 States a sealed instrument for the pay- 
 ment of money is good for twenty years. 
 
FARM MORTGAGES. 89 
 
 but in Texas, if not sued on in four 
 years, it is barred by " the statute " ; and 
 thousands of people having claims 
 against Texans, have permitted them to 
 be lost through ignorance of that pecul- 
 iar provision. Again, in Texas a man 
 may possess a great deal of valuable 
 property and yet be execution-proof. 
 In addition to "all provisions and for- 
 age on hand for home consumption," all 
 household and kitchen furniture, all im- 
 plements of husbandry, all tools and 
 apparatus used in a trade or profession 
 actually followed, family portraits and 
 pictures, a gun, two horses and a wagon, 
 a carriage or buggy, ^yq milch-cows and 
 calves, two yoke of work-oxen, twenty 
 hogs, twenty head of sheep, all bridles, 
 saddles, harness, etc., the debtor head of 
 
90 THE ART OF INVESTING, 
 
 of a family may liold a homestead, not 
 in a town or city, of not less than two 
 hundred acres of improved land, or in a 
 city, town, or village, of lots of the 
 value of ^N^ thousand dollars, " without 
 reference to the value of improvements 
 thereon," and which, of course, may be 
 worth much more than the land. In 
 Texas, to get moieties under assignments 
 made for their benefit, creditors must 
 surrender in full their demands — from 
 which provisions it may not unreason- 
 ably be inferred that Texas is a much 
 more healthy region for debtors than for 
 creditors. In Colorado, whose repudia- 
 tions have also been referred to, a prom- 
 issory note may be '''- outlawed " by two 
 years' indulgence on the creditor's part, 
 and a judgment of a court of record is 
 
FARM MORTGAGES. 91 
 
 good for three years only. .The moral 
 from sucli cases is obvious enough. 
 Keep your money out of Texas, Colo- 
 rado, and other repudiating sections if 
 you ever want to see it again. The 
 Mgher rates of interest to be obtained 
 in such localities, and which are among 
 the penalties for their treatment of 
 those with whom they have dealing, 
 will not compensate for the increased 
 risk. Nor would it be imprudent to 
 avoid cities and towns of tainted finan- 
 cial records, however prosperous they 
 may appear to be, of which the capital 
 of the State of Kansas, whose course is 
 elsewhere considered, is, by reason of 
 its wealth and prominence, a notable 
 example. 
 
92 THE ART OF INVESTING. 
 
 Eai^ch Securities. 
 
 Akin to tlie obligations just treated 
 of, because having a basis in real estate, 
 and yet in so many points differing 
 from them as to seem to call for their 
 consideration under a different heading, 
 are securities predicated upon ranch- 
 properties. Cattle-raising, which, in ear- 
 lier times, was looked upon as a part 
 of the farmer's regular occupation, has 
 of late become almost a separate indus- 
 try, and grown to enormous propor- 
 tions. Ranching, however, is not con- 
 fined to cattle-production, as the term 
 " cattle " is ordinarily understood. We 
 now have sheep-ranches, horse-ranches, 
 pig-ranches, goat-ranches, and even os- 
 trich- and goose-ranches. The marvel- 
 
RANCH SECURITIES, 93 
 
 ous growth of the rancli business, in 
 quite recent times, has had the natural 
 effect of bringing upon the market a 
 class of securities that has absorbed, and 
 imfortunately dissipated, a good deal of 
 investment capital. For a time the busi- 
 ness was remarkably profitable. Lands 
 in the South and West, in large bodies, 
 were obtained at nominal figures — often 
 by mere appropriation — to operate them 
 as ranches cost but a trifle; for, as a 
 rule, neither houses nor fences were con- 
 structed or needed; and the prices of 
 cattle, largely purchased for the pur- 
 pose of stocking other ranches, were 
 high and constantly advancing. Every- 
 body in the business made money, or 
 seemed to be making it. Speculation 
 upon an extended scale was an inevita- 
 
94 THE ART OF INVESTING. 
 
 ble consequence. Stock-ranching com- 
 panies — " stock " in the corporate sense 
 — were soon being numerously or- 
 ganized with the usual concomitants 
 of mortgage-bonds and share-certificates, 
 and, of course, the public was invited 
 to share in their benefits. Circulars 
 that they put forth told very flattering 
 tales. The lands which they possessed, 
 often little better than desert wastes, 
 were usually described as worth from 
 ^YQ to twenty-five dollars per acre ; their 
 cattle were estimated at the highest 
 market prices; and calculations were 
 gone into to show, from the increase of 
 their herds and the quantities of beef 
 and young stock to be annually har- 
 vested, that they could not fail to be 
 first-class bonanzas. The highest rates 
 
RANCH SECURITIES. 95 
 
 of interest and most liberal dividends 
 were promised. It is no wonder that 
 a good many investors were captivated. 
 
 We all know what the result has 
 been. Droughts in summer and frosts 
 in winter, for which no allowance had 
 been made, and against which no pre- 
 cautions were taken, wrought havoc 
 with the herds, and production increased 
 until the ranges were overstocked, and 
 prices went down and down with grow- 
 ing competition until the end was fail- 
 ure and bankruptcy. 
 
 And yet it by no means follows that 
 ranch securities will always be worth- 
 less. Stock-raising is an entirely legiti- 
 mate calling, and will be successfully 
 prosecuted on a large scale, upon our 
 Western plains and prairies, which are 
 
96 THE ART OF INVESTING, 
 
 by nature intended for tliat particular 
 use. After sucb. arrangements have 
 been made for shelter and feed in the 
 winter, and for water in the summer, 
 as ordinary prudence dictates, and the 
 business is brought to that stage where 
 it will no longer be conducted by " cat- 
 tle-kings " and " cattle-queens " as a ven- 
 ture to be decided by the chances of the 
 weather and the market, but by ordi- 
 nary workers, content with moderate 
 profits, and mindful of all the oppor- 
 tunities and economies, ranching will be 
 a reasonably safe basis for money in- 
 vestments of all kinds. 
 
 Water- Works Loans. 
 These are becoming very plentiful — 
 how plentiful may be inferred from the 
 
WATER- WORKS LOANS. 97 
 
 fact that a directory of water- works for 
 towns and cities in the United States, 
 recently issued by a New York pub- 
 lisher, shows that of over fourteen hun- 
 dred such establishments, the number 
 of those owned and conducted by pri- 
 vate (although incorporated) companies 
 exceeds those belonging to the munici- 
 palities by over one hundred and fifty. 
 The communities served by these com- 
 panies range from villages of less than 
 two thousand population up to a city of 
 one hundred and twenty-five thousand 
 souls ; and the debts of the companies, 
 in nearly all cases represented by coupon 
 bonds, run from twenty-five thousand 
 up to four million dollars. As the 
 stock issued by the companies fully 
 equals their bonds, it will be seen that 
 
98 THE ART OF INVESTING. 
 
 the aggregate of securities put out by 
 tliem is very great. 
 
 The building of water- works has be- 
 come a regular business, and has been 
 followed with very satisfactory results 
 by contracting parties that, in many 
 instances, are owners of or interested 
 in the factories producing the pipes, 
 pumps, and other materials and machin- 
 ery necessarily used. The customary 
 method has been to secure, in the name 
 of an incorporated company, that is 
 merely a cover for a professional builder, 
 a contract with a city or village by 
 which it is to be supplied with water 
 for public uses — protection against fire 
 being the principal one — at a stipulated 
 annual price, or for so much per hy- 
 drant, with the privilege of selling 
 
WATER-WORKS LOANS. 99 
 
 water at specified rates to as many pri- 
 vate takers as can be found. The con- 
 ditions vary, but a supply of good, 
 wliolesome water, in adequate quanti- 
 ties, is always one of them. A failure 
 on this point is to invalidate the con- 
 tract, and there may be other grounds 
 of forfeiture. 
 
 For the money with which the works 
 are to be constructed, the builder ordi- 
 narily depends, sooner or later, upon 
 the sale of bonds. He even expects to 
 have a balance left from their proceeds 
 when the work is done, and that, with 
 the stock of the company, which may 
 or may not have a value, is to be his 
 profit. The works, in other words, are 
 relied upon to build themselves, and 
 pay the enterprising projector besides, 
 
loo THE ART OF INVESTING. 
 
 tliere being in this respect no difference 
 as to tlie construction of railroads and 
 water systems. 
 
 Tlie writer lias before him a pam- 
 phlet put out by a dealer in invest- 
 ments, in which water-works securities 
 are especially commended. " In no other 
 class of mortgages," says the pamphlet, 
 " can so many and such strong elements 
 of safety be found, since in the whole 
 history of water-works there is but one 
 known instance of the foreclosure of a 
 first mortgage (where the works were 
 completed and in operation), and in that 
 instance not a dollar of loss was sus- 
 tained by the bondholders." While the 
 author of the foregoing could not have 
 been familiar with the case of Mem- 
 phis, Tennessee, in which the unfortunate 
 
WATER-WORKS LOANS. loi 
 
 water-works bondliolders received less 
 than twenty per cent of their demands 
 from the proceeds of the foreclosure 
 sale, nor of those of Galesburg, Illinois, 
 and other bankrupt companies, there 
 are, nevertheless, reasons why water- 
 works mortgage-bonds, if issued under 
 proper conditions, should be among the 
 very best. They are secured on prop- 
 erty (underground pipes, etc.) which is 
 but little exposed to fire and accidental 
 injuries, and the business upholding 
 them is usually without competition, 
 conducted wholly for cash, and in grow- 
 ing communities must of necessity in- 
 crease. But there are perils and draw- 
 backs. There is here, as elsewhere, the 
 possibility of overbonding. A greater 
 danger is cheap construction. In no 
 
I02 THE ART OF INVESTING. 
 
 class of works, perhaps, is tliere an equal 
 liability in this direction. The most of 
 the material used is in pipes that are 
 buried and out of sight. It is possible to 
 employ an inferior article, such as sheet- 
 iron instead of cast-iron, which will tem- 
 porarily answer the purpose ; and as the 
 builder's interest in the works, after 
 their acceptance by the community with 
 which he has contracted — ^usually not as 
 critical as it should be — and the sale of 
 his bonds and stock, is at an end, the 
 temptation besetting him is very strong. 
 Five or six years is the limit to the 
 probable use assigned by engineers to 
 pipes and other materials in works 
 that the writer knows of, that are cov- 
 ered by mortgages authorizing bonds 
 having from twenty to twenty-five years 
 
WATER-WORKS LOANS. 103 
 
 to run. If, at any time before the 
 bonds mature and are satisfied, it is 
 found necessary to use the funds needed 
 for principal or interest, in the reconstruc- 
 tion of the property, it is easy to see 
 how the bondholders may suffer. Hence 
 to them the very great importance of 
 knowing, before they part with their 
 money, sundry points about the security 
 they are getting, that the most of bond- 
 purchasers rarely think of inquiring into. 
 Nor have we reached an end of the 
 risks attending this class of securities. 
 The question of water-supply is always 
 of first importance. Water- works with- 
 out water, and plenty of it, are, of 
 course, of very little account. Now, it is 
 very easy to understand how difficulties 
 on this score may arise and increase. 
 
I04 THE ART OF INVESTING. 
 
 When works are first constructed, tliere 
 may be a sufficiency of water of satisfac- 
 tory quality witMn easy reach, and the 
 builder, anxious to get through with his 
 work as quickly and cheaply as possible, 
 that he may realize on it, will naturally 
 avail himself of such supply and look no 
 further. But it does not follow that it 
 will always or for a considerable time 
 be adequate. Running streams are usu- 
 ally depended on, and everybody knows 
 how liable they are to become corrupted 
 in a settled country, and, while the de- 
 mand upon them is increasing their vol- 
 ume is likely to diminish. The writer 
 knows of more than one company that 
 on this point has met with embarrass- 
 ments not dreamed of when its opera- 
 tions were begun. In one instance 
 
WATER-WORKS LOANS. 105 
 
 the cost of a new water-supply, made 
 necessary by tlie deterioration of a run- 
 ning stream, exceeded the entire origi- 
 nal outlay. The point is one upon 
 which, in every instance, not only are 
 contracts made especially stringent, but 
 a strict compliance is certain to be 
 demanded. How many of our water 
 companies will be able to meet their ob- 
 ligations in this regard, during the pe- 
 riods that their bonds are issued for, 
 without the expenditui^e of considerable 
 sums of money not at first anticipated ? 
 To provide a fresh water-supply may 
 prove a more serious undertaking even 
 than the substitution of a new plant for 
 an old one. 
 
 When securities founded upon water- 
 works in localities where they are actu- 
 
io6 THE ART OF INVESTING. 
 
 ally needed, and erected under seem- 
 ingly favorable conditions, are attended 
 witli sucli liabilities, it will be seen how 
 mucli greater tlie danger must be wlien 
 the works are located, by speculative 
 builders, in communities that do not 
 need them, and of uncertain ability for 
 their support, purely as a basis for the 
 manufacture of bonds and stock. The 
 country has been ransacked for water- 
 works sites, and plenty of works have 
 been built in villages that the majority 
 of our people have never heard of. 
 They may grow and become important 
 places, and they may not. The obliga- 
 tions created in such cases may be valu- 
 able, and they may not. But it is quite 
 safe to say that, if the movement in this 
 direction continues and goes much fur- 
 
STREET-RAILWAY BONDS, 107 
 
 ther, the day is not far off wlien we will 
 be favored with a plentiful crop of de- 
 faults and water-works foreclosures. 
 
 StREET-RaILWAY BoiJTDS. 
 
 Much that has been said concerning 
 water-works securities is applicable to 
 these. There is not the same opportu- 
 nity to delude by the use of inferior 
 materials, since the works are on the 
 surface ; but there has been an equal dis- 
 position to push construction into terri- 
 tory of doubtful earning capacity. Many 
 roads have been built where they were 
 not needed, and where they can not 
 pay — at least, for considerable periods 
 to come ; and more of that sort are like- 
 ly to be built. At the same time, when 
 advantageous locations have been se- 
 
io8 THE ART OF INVESTING. 
 
 cured, witli francMses properly covering 
 tlie ground, and particularly if exclu- 
 sive, few better properties exist, and 
 tlie securities based upon tliem can be 
 safely recommended. All tlie investor 
 needs to do is to investigate thoroughly 
 before he buys. He should satisfy him- 
 self that the road is in a community 
 that is able to sustain it; if in a city 
 of known standing, that it occupies 
 streets likely to give it permanent busi- 
 ness, and has not been built in remote 
 suburbs or along country highways as 
 a pretext for bond-making ; that its 
 franchise is sufficient to protect it from 
 dangerous competition; that the securi- 
 ties have been legally issued ; and, above 
 all, that there are not too many of 
 them. 
 
MISCELLANEOUS BONDS. 109 
 
 Miscellaneous Bonds. 
 Much, that has been said concerning 
 water-works and street-railway mort- 
 gages is applicable to various other se- 
 curities, notably those of gas and elec- 
 tric-light companies. In cities and vil- 
 lages, when the latter are of considera- 
 ble size, streets must be lighted, and con- 
 tracts for the purpose are always sought 
 by those contemplating the construction 
 of illuminating-works. Such, contracts 
 are usually for short periods, one year 
 being the ordinary term, and for that 
 reason there is greater danger from 
 competition than in the matter of water- 
 supply. Indeed, gas and electricity are 
 likely to be competitors in most fields 
 for a considerable time to come, and 
 
no THE ART OF INVESTING. 
 
 the profits from their operations must 
 be correspondingly abridged. Never- 
 theless, many of the securities predi- 
 cated upon them should be good, and, 
 if selected with care, can be taken with 
 confidence. Of course, there may be 
 defective construction in material and 
 workmanship, and the buyers of gas- 
 light and electric-light bonds would do 
 well, before parting with their money, to 
 inform themselves thoroughly on these 
 points as well as others. In the larger 
 cities there is less difficulty in estimat- 
 ing securities of the kind, as they are 
 pretty certain to have local quotations 
 that determine their values for the time 
 being. 
 
 When it comes to bonds secured on 
 manufacturing and other private proper- 
 
MINING SECURITIES. in 
 
 ties, whicli may or may not be covered 
 by articles of incorporation, no general 
 rule can be laid down. Each interest 
 must be measured by its own circum- 
 stances, and investors can best deter- 
 mine for themselves bow far it is safe 
 to trust tbe promises it makes. The 
 markets in suck cases are always more 
 or less local, and those who see fit to 
 put their money into them may be sup- 
 posed to be in possession of all the facts 
 necessary for the formation of correct 
 judgments. 
 
 Mmma Secueities. 
 The best thing that, as a rule, can 
 be done with these is to let them severe- 
 ly alone. There are good mining shares, 
 but the average investor, who buys in- 
 
112 THE ART OF INVESTING. 
 
 to such properties, does not get that 
 kind. It is a peculiarity of the mining 
 business that it pays only when man- 
 aged with exceptional skill, and that 
 requires the property to be in the hands 
 of its owners. Of course, the average 
 investor can not take personal charge 
 of the mines into which he buys, and 
 would not know how to do it properly 
 if he could. He is compelled to intrust 
 his interest to the care of hired agents, 
 and, if anything is settled in connection 
 with mining, it is that about the only 
 thing the ordinary salaried mining su- 
 perintendent is good for is to draw 
 checks on his employers, and bury their 
 money beyond the reach of resurrection. 
 
BRIDGE-BONDS. 1 1 3 
 
 BEIDGE-B0I^IDS. 
 
 Wlien our larger streams are reached 
 by railways, and must be crossed by 
 bridges that cost a great deal of money, 
 sucli structures have generally been 
 erected by corporations independent of 
 or separate from the railroad companies. 
 As a general thing, being proximate to 
 large cities, they have also been made 
 to furnish the accommodations of pub- 
 lic highways. Bonds and stocks issued 
 upon them, w^hile subject to many of 
 the same vicissitudes, are quite as good 
 as those of the average of railroad com- 
 panies. No general iiile can be laid 
 down concerning them. Each security 
 must stand upon its own merits, as the 
 structure upon which it is issued must 
 
114 THE ART OF INVESTING. 
 
 stand upon its own foundations. There 
 should in each case be an investigation 
 before buying. One general caution, 
 however, may not be inappropriate, and 
 that is, to fight shy of the paper of com- 
 panies owning very expensive bridges, 
 unless the ordeal of a reorganization has 
 been gone through. It is well known 
 that the New York and Brooklyn 
 Bridge, lying between the first and 
 third cities in the country, does not 
 begin to pay interest on its cost. The 
 great St. Louis Bridge failed for the 
 same reason, and it is doubtful whether 
 such enormous structures can be erected 
 at outlays that will justify them merely 
 as business ventures and investments. 
 
SUBSTITUTION SECURITIES, 115 
 SuBSTITUTIOiq- SeCUEITIES. 
 
 Reference lias already been made to 
 an ingenious arrangement for issuing 
 bonds upon the security of other bonds. 
 The plan is comparatively a new one 
 in this country, although something like 
 it has long been practiced upon in Eng- 
 land, and where more than one com- 
 pany adopting it has come to grief 
 through injudicious investments. In 
 itself it is simple enough. Certain per- 
 sons having, as they suppose, superior 
 facilities for investigating securities of 
 one or more kinds, and sifting the good 
 from the bad, organize with a view to 
 purchasing such as they approve, and 
 on the strength of which, when placed 
 with some trust company or other safe 
 
ii6 THE ART OF INVESTING. 
 
 depository, they issue their own bonds 
 for tlie market to tlie same amount, but 
 usually bearing a lower rate of interest 
 than those which they own. The differ- 
 ence in the interest and the lower figures 
 at which they may buy, compared with 
 those at which they sell, make their 
 profits. To escape personal liability, and 
 possibly to establish a higher credit, 
 a corporation is formed, and the new 
 obligations are produced in its name. 
 
 To such investors as lack confidence 
 in their own judgments, or either do 
 not have or prefer not to avail them- 
 selves of satisfactory opportunities for 
 investigation on their own account, the 
 system undoubtedly has recommenda- 
 tions. If securities were scarce and 
 hard to find, it would be generally 
 
SUBSTITUTION SECURITIES. 117 
 
 popular; but, as long as tliey are plen- 
 tiful, the majority of investors will pre- 
 fer to trust to their own wits and save 
 tlieir money. And, after all, the judg- 
 ment of one man may be no better than 
 that of another, and those having money 
 to dispose of, who, while relying upon 
 themselves, exercise reasonable prudence, 
 will doubtless, as a rule, enjoy the great- 
 est peace of mind and occupy positions 
 in many respects most satisfactory. 
 
CHAPTER II. 
 
 SPECULATING.'' 
 
 New Yoek lias no more entertaining 
 public exhibition than its Stock Ex- 
 change. It is one of the show-places of 
 the city. The visitor who, for the first 
 time, looks down from a gallery upon its 
 members in the act of transacting busi- 
 ness, is astonished at the apparent con- 
 fusion he witnesses. He seems to have 
 entered a mad-house. The idea that the 
 market values of our leading securities 
 should be determined by what appears 
 
 * The following chapter appeared in " The Forum " 
 for October, 1886, under the title of " The Heart of 
 Speculation." 
 
SPECULATING. 119 
 
 to him to be a howling mob of incurable 
 lunatics, is incomprehensible. But if 
 nothing could be said against the Ex- 
 change, which is simply a big bazaar for 
 the sale of bonds and stocks, except its 
 tumultuousness and the seeming lack of 
 dignity among its operators, criticism 
 would have in it but an indifferent 
 target for its shafts. Much graver ques- 
 tions grow out of its existence. Is it a 
 harmless institution? Is it a public 
 blessing? Is it a public curse? 
 
 As a great central mart for current 
 securities, it would be unobjectionable. 
 There is no reason why bonds and 
 shares should not be publicly dealt in, 
 and in large quantities, as well as dry- 
 goods; as well as corn and cotton and 
 beef and kitchen vegetables. If the 
 
I20 777^ ART OF INVESTING, 
 
 Stock Excliange was intended for or re- 
 stricted to the hona-fide buying and sell- 
 ing of bonds and shares, not a word 
 could be justly said against it. But is 
 that its business? Unfortunately, no. 
 Its chief occupation is wagering on 
 stocks : its members, while going through 
 the forms of buying and selling, simply 
 bet their money, or somebody else's 
 money, upon the rise or fall of the 
 shares they select, as they would upon 
 the shiftings of cards or dice. The Ex- 
 change, while haying a share of legiti- 
 mate business, is chiefly an immense 
 gambling establishment. 
 
 Its members are divided into two 
 classes — those who execute commissions 
 for others, and those who deal on their 
 own account. It is needless to say that 
 
SPECULATING. 121 
 
 among tlie latter are tlie boldest and 
 sharpest speculators of the day. The 
 careers of these men can be sketched in 
 very few words. Through the exercise 
 of superior native wits or the accident 
 of extraordinary luck, they flourish mar- 
 velously for a time ; but only, as a rule, 
 to lose their heads and their balance at 
 last, and go down — often through a sin- 
 gle disastrous transaction — faster than 
 they went up. There are exceptions. 
 Some flourish to the end, dying — gener- 
 ally young — or retiring with estates 
 unbroken. But they are exceptions. 
 Wall Street is a place where a few for- 
 tunes are made and a great many are 
 lost. The stories of its magnificent 
 triumphs, and of its equally magnificent 
 
 wrecks, read like tales from the "Ara- 
 11 
 
122 THE ART OF INVESTING, 
 
 bian NigMs"; some of tliem like pas- 
 sages from Dante's "Inferno." Wall 
 Street has liad its suicides by tlie dozen, 
 and it will have plenty more. It would 
 not be Wall Street without surprises. 
 And yet there is a singular sameness in 
 the ordinary broker's experience. He 
 runs an exciting, if at times a rough and 
 stormy, career, snatches or seems to 
 snatch a good many pleasures by the 
 way, makes and breaks with about equal 
 abandon^ wrecks his health in a hurry, 
 dies early and suddenly, and then — well, 
 then, when his affairs come to be settled, 
 there are found to be large blocks of 
 utterly worthless shares, perhaps a fast 
 horse or two, a' two-wheeled vehicle and 
 trappings to match, some costly souve- 
 nirs, and very few solid assets, and the 
 
SPECULATING, 123 
 
 business is closed in bankruptcy. Poor 
 fellow, everybody has forgotten all 
 about liim ! 
 
 Of the ordinary Wall Street specula- 
 tor, however clever or however favored 
 for a time, it is perfectly safe to say 
 that, if he lives long enough and sticks 
 to the business, he will finally come to 
 grief. 
 
 But how about Vanderbilt jpere^ who 
 was more or less of a Wall Street opera- 
 tor all his many days, and a few other 
 not wholly dissimilar if less conspicuous 
 examples % 
 
 Ah! that brings us to a view of 
 some of the interior workings of the 
 New York Stock Exchange that the 
 public has little conception of, and 
 which alone will give a correct under- 
 
124- THE ART OF INVESTING. 
 
 standing of its real cliaracter. The pop- 
 ular idea is that the Exchange has upon 
 its list, to be dealt in, all, or nearly all, 
 prominent stocks and bonds of acknowl- 
 edged value, impartially selected and 
 solely because of their merits. There 
 could be no greater misconception. We 
 look there in vain for the shares of the 
 Pennsylvania Central, whose stock has 
 not a drop of water in it ; of the Balti- 
 more and Ohio, whose paper, notwith- 
 standing some mistakes of its managers, 
 is equally solvent; of the Boston and 
 Providence, the Boston and Albany, the 
 New Haven and Hartford, the Maine 
 Central, and of dozens of other corpora- 
 tions whose management is unexception- 
 able, and whose securities are among 
 the choicest investments. But if there 
 
SPECULATING. 125 
 
 is a company witli a speculating board 
 of clii^ectors, and wliose stock has been 
 watered until it will float a respectable 
 navy, its shares are pretty sure to be 
 found on the Exchansie's list. Or if 
 there is a company that is absolutely 
 controlled and directed by some partic- 
 ularly active and conspicuous manipu- 
 lator, its stock may be looked for at 
 the same place. There has never, ap- 
 parently, been any difficulty in a big 
 stock operator getting his issues upon 
 the list. What has been the result? 
 Simply that the most abominable rub- 
 bish has been unloaded upon the 
 public. 
 
 Much, but not too much, has been 
 said in condemnation of stock- watering ; 
 of the production of corporate certifi- 
 
126 THE ART OF INVESTING, 
 
 cates representing little or no casli in- 
 vestment, and wHcli innocent persons are 
 led to purchase in tlie belief tliat they 
 are getting full values. But how is it 
 that these fraudulent issues can be mar- 
 keted, and the producers escape legal re- 
 sponsibility for the impositions prac- 
 ticed? Here is where the Exchange's 
 work comes in. The Exchange is the 
 conduit through which the water is 
 safely carried into the investors' pock- 
 ets. When it takes the stock upon its 
 list, the Exchange becomes practically 
 the seller, supplying the machinery and 
 the means of transfer, and it guarantees 
 nothing. Whoever buys at its board is 
 understood to take all risks, no matter 
 how much deception is used. He may 
 be utterly victimized — often is so — but 
 
SPECULA TING, 1 27 
 
 he has no redress. Here is the medium 
 through which the over-issues have been 
 marketed. But for the Exchange's in- 
 strumentality, the facilities it has fur- 
 nished, those stupendous stock-watering 
 frauds which have become historical 
 never could have been successfully con- 
 summated. 
 
 Once on the Exchange's list, there 
 has never yet been a stock so worthless 
 that, with a shrewd manipulator behind 
 it, it could not be unloaded. The pro- 
 cess has been a simple one : First, there 
 are "washed" — singular how the idea 
 of water runs through all stock opera- 
 tions — or prearranged sales of the stock. 
 Outsiders are then told that there is 
 money in it, and they begin to buy. The 
 stock is duly " supported " — an indispen- 
 
128 THE ART OF INVESTING. 
 
 sable precaution — that is, it is taken at 
 quotation prices when offered by outside 
 owners, and so up and up it is marked, 
 tke speculative public taking large 
 blocks in the belief that it is going 
 bigker, and with little thought of its 
 actual value, until there comes a time 
 when, the original supply being ex- 
 hausted, the shares are no longer sup- 
 ported, and down, down they go. The 
 real value of the stock has little to do 
 with its negotiation. In the light of 
 that explanation, there is no difficulty in 
 comprehending how certain great rail- 
 road magnates, who are leading opera- 
 tors in Wall street, have amassed such co- 
 lossal fortunes. They have been stock- 
 manufacturers as well as stock-dealers. 
 The New York Exchange has been their 
 
SPECULATING. 129 
 
 field of operations — their market-place. 
 Througli it they have sold their wares. 
 Had they, like ordinary speculators, con- 
 fined themselves to other people's goods, 
 it is questionable whether they would 
 have grown exceptionably rich. They 
 might have become poor, as the most of 
 their associates have done. But when, 
 with consciences conformable to their 
 opportunities, they had the means of 
 selling water at high figures and in prac- 
 tically unlimited quantities, it is no won- 
 der that their fortunes swelled to fabu- 
 lous proportions. 
 
 A glance at the Exchange's list tells 
 the whole disgraceful story. What a 
 column of tatterdemalions it parades ! It 
 looks as if, in making up its assortment, 
 the listing committee had gone into the 
 
I30 THE ART OF INVESTING. 
 
 highways and by-ways, with orders to 
 bring in the lame, the halt, and the blind. 
 Wabash is there, Denver and Kio Grande 
 is there, Hocking Valley is there, Texas 
 and Pacific is there, Bloomington and 
 Western is there, Nickel Plate is there. 
 West Shore is there, the whole noble 
 army of frauds that once flourished 
 so magnificently and bled the public so 
 profusely, is there. Consolidated Gas, 
 with thirty-five millions of stock that, 
 from official investigation, would appear 
 to have been evolved from a cash invest- 
 ment of less than twelve millions, is 
 there, of course. It is a new accession, 
 and shows how naturally inflated and 
 adulterated securities seek the Ex- 
 change's forum, and how readily they 
 are admitted. The Exchange has a com- 
 
SPECULATING. 131 
 
 mittee to pass upon applications for list- 
 ing, and whicli, in theory, excludes un- 
 worthy issues. It is supposed to act as 
 a sieve ; but certain it is that, sieve-like, 
 it is no obstruction to the passage of 
 water. 
 
 While its bond-list, as a whole, is 
 much more respectable than its stock- 
 list, it is noteworthy that the Exchange's 
 dealings are principally in the specula- 
 tive issues — ^the second and third mort- 
 gages, the incomes, the land-grants, and 
 other junior or discredited securities. 
 These are the driftwood of the market, 
 which nobody buys to keep, because, 
 yielding little or no income, they are of 
 no account as investments ; and they are 
 bid up or bid down, according to the 
 course of speculation at the time. When 
 
132 THE ART OF INVESTING, 
 
 actual investors wisli to buy, as a rule 
 they go to bankers and dealers wlio 
 have nothing to do with the Exchange 
 and pay very little attention to its quo- 
 tations. 
 
 Oh, how gayly the business of mak- 
 ing and marketing securities was but re- 
 cently going forward in "Wall Street! 
 The inflation period that followed the 
 depression from 1873 to 1879 was the 
 golden era of stock speculation. The 
 Exchange fairly rioted in profitable traf- 
 fic. The public was supposed to be cry- 
 ing for shares, and the magnates of that 
 institution were doing their best to meet 
 the demand. They succeeded pretty 
 well. Some of them built new roads 
 and stocked and bonded them for only 
 four or five times theii^ actual cost. 
 
SPECULATING. 133 
 
 They souglit strange fields for tlieir vent- 
 ures — in tlie wilderness, upon tlie des- 
 ert plains, among the mountain-peaks. 
 They overleaped the national boundaries 
 and rushed pell-mell into Mexico; and 
 when all available openings were filled, 
 they entered upon the work of "paral- 
 leling " — constructing new roads by the 
 sides of old ones. The purpose of it 
 all was the production of paper to be 
 dealt in " at the board." It was bonds, 
 bonds, bonds ; stock, stock, stock ; wa- 
 ter, water, water. Millions upon mill- 
 ions of so-called securities were manu- 
 factured, costing little more than the 
 blank paper upon which they were 
 stamped and the mechanical labor be- 
 stowed upon it, and dumped into the 
 hopper of the Exchange, to be by it 
 
134 THE ART OF INVESTING, 
 
 stirred up and turned over a few times, 
 and tlien systematically worked off on 
 tlie great investing public. 
 
 Very well does tlie writer, as well as 
 a good many others, remember what it 
 all came to; how on a bright day of 
 May, of the year 1884, pandemonium, in 
 the form of a panic, entered Wall Street ; 
 how the great throngs that gathered 
 there and filled all available spaces 
 surged and seethed like troubled waters ; 
 how great bankers and leading busi- 
 ness men ran wild-eyed and bareheaded 
 through the streets ; how mobs of half- 
 demented people crowded round broker- 
 age-houses, richly -dressed women and 
 gray-haired men among them, weeping 
 and wringing their hands; how sur- 
 rounding the doors of suspected banks 
 
SPECULATING. 135 
 
 were groups of idlers who, witli tlie true 
 instinct of Wall Street denizens, were 
 betting tlieir money on tlie length of 
 time their doors would remain open; 
 how about the remorseless "tickers" 
 in brokers' shops were gathered crowds 
 of excited men, tremblingly watching 
 the course of stocks that seemed to be 
 going down, down to perdition, the wa- 
 ter they contained suddenly turning to 
 hydraulic pressure to crush them. Those 
 who saw that spectacle in all its grim 
 and terrible seriousness will witness 
 nothing to match it this side of the " In- 
 ferno." Ah ! the New York Stock Ex- 
 change then gave its patrons a treat 
 many of them will not soon forget. 
 
 But the Exchange, with all its short- 
 comings, is at least useful if not neces- 
 
136 THE ART OF INVESTING, 
 
 saiy in supplying quotable values and 
 giving stability and tone to tlie business 
 of tlie country. Is it ? Let us see. On 
 tlie 1st of March, 1884, Delaware, Lack- 
 awanna and Western stock sold on the 
 board at 133^. In January following it 
 brought at the same place only 82f. 
 The next December it was up to 129f. 
 "Lackawanna" is an old, conservative 
 company, lightly capitalized, with an es- 
 tablished business; a regular, uniform 
 dividend-payer. Intrinsically the value 
 of its shares has not varied in the past 
 five years. " St. Paul " is another stock 
 that, apart from speculation, should not 
 change. Yet in 1883 it sold "on 
 'Change" as high as 108 J, in 1884 down 
 to 58J-, and in 1885 was back to within 
 one per cent of par. In one half hour 
 
SPECULATING. 137 
 
 during the May panic of 1884 the se- 
 curities on tlie Exchange's list shrank in 
 quotations over $100,000,000; in one 
 day nearly $300,000,000. Not much 
 stability, not much reliability there! 
 Either prices had been much too high 
 or they went much too low. The Ex- 
 change in the one case or the other, if 
 not in both, failed to hold them at the 
 proper level. Nor in this is there any- 
 thing remarkable. Wide and sudden 
 fluctuations are necessary results of the 
 Exchange's methods. Its members are 
 supposed to be divided between " bulls" 
 and " bears " — those who try to advance 
 prices and those who try to depress 
 them ; but all are as likely as not at one 
 time to be bulls and at another bears. 
 They have their stampedes. No drove 
 
138 THE ART OF INVESTING, 
 
 of cattle upon tlie Western prairie is 
 more subject to sudden scares and er- 
 ratic ruslies than they are. Indeed, a 
 wild herd of steers, with horns uplifted 
 and tails in the air, charging across the 
 plain, would give but a faint idea of the 
 flurries and scurries of Wall Street bulls 
 and bears in the midst of a round-up. 
 When the market looks like going up, all 
 hands are ready to lift it higher. When 
 going down, all are ready to ride it to 
 the bottom. The result is, a succession 
 of extremes ; and even when the entire 
 Exchange is not blindly swayed to one 
 side or the other, nothing is more com- 
 mon among its operators than the for- 
 mation of pools to advance particular 
 stocks or of combinations to raid others, 
 artificial agencies in both cases being 
 
SPECULATING, 139 
 
 freely used. How often, or rather how 
 seldom, do Exchange quotations express 
 the values that stocks would have if left 
 to themselves or to the arbitrament of 
 supply and demand! 
 
 In these things, as already said, to 
 one familiar with Wall Street ways, 
 there is nothing remarkable. It is 
 upon fluctuations that stock speculation 
 fattens. The delight of the regular 
 Wall Street man is a wild market — 
 the wilder the better. Quick changes 
 bring him quick profits. He knows 
 that a steady market means a dull 
 market, and nothing does he more 
 heartily detest. To him the most agree- 
 able of all movements is that which 
 sends up prices with a rush and a hur- 
 rah, creating what, in Wall Street par- 
 
I40 777^ ART OF INVESTING. 
 
 lance, is known as a " boom," and lead- 
 ing outsiders to purchase on the rise — 
 of course, in tlie expectation of higher 
 figures — and which then lets prices drop 
 so suddenly as to shake or scare these 
 purchasers out. In that way the broker - 
 gets both the money and the stocks, 
 and the outsider gets a lesson. It is 
 the theory of experienced operators, and 
 undoubtedly a correct one, that the out- 
 side speculator rarely comes into the 
 market until prices are up, and he can 
 look back and see what he has lost by 
 not venturing earlier; and is never so 
 ready to sell as when prices are down, 
 and he can look back and see what he 
 has lost by not getting out sooner. 
 
 Instead of being a balance-wheel to 
 the business of the country, the Stock 
 
SPECULATING. 141 
 
 Exchange is far more likely to be a dis- 
 turbing factor. It does not even fur- 
 nisli trustworthy news. Nowhere is it 
 so difficult to get reliable intelligence 
 concerning any stock dealt in there, as 
 in Wall Street. The inventiveness of 
 the speculative broker is something 
 marvelous. He can ruin the country 
 one hour and save it the next. He 
 can blight the crops of a whole section, 
 or he can fill the land with abundance. 
 He can make war or he can make peace, 
 exactly as his momentary interest de- 
 mands. Rumor-mongering seems to be 
 a part of his trade. He is the chief of 
 liars. Perhaps he is the exception 
 rather than the rule among his fellows 
 — ^it is to be hoped that he is — ^but he is 
 a pretty numerous exception, for all that ! 
 
142 THE ART OF INVESTING, 
 
 What is tlie consequence? Simply 
 that when a financial storm threatens 
 the country, the Exchange is almost cer- 
 tain to be the center of disturbance. 
 No other institution is so sensitive. It 
 exaggerates all the symptoms of trouble. 
 It sends out its alarming reports as the 
 storm-cloud sends out its lightnings. 
 Looking at it as the barometer of values, 
 the timid naturally conclude that every- 
 thing is lost, and thus the evil is unduly 
 magnified. Wall Street is as much the 
 natural field for panics as the prairie is 
 for tornadoes. 
 
 If the Exchange has been of advan- 
 tage to the business interests of the 
 country, those who have had dealings 
 with it should be ready to testify in its 
 favor. Of the thousands and thousands 
 
SPECULATING. 143 
 
 who have visited it in person or by 
 proxy, and done a little business with 
 it, how many are ready to rise up and 
 call it blessed, except in a very quali- 
 fied sense ? If all were to give their 
 experiences, what would the verdict be ? 
 It is to be apprehended that the evi- 
 dence of a very decided majority would 
 not be flattering to Wall Street's famous 
 institution; that their testimony would 
 be that they had found it easier to lose 
 money there than to make it. 
 
 But why mince matters ? Why deal 
 in doubtful phrases ? Why not at once 
 declare what the discussion of the sub- 
 ject inevitably leads to — viz., that the 
 New York Stock Exchange, which is 
 the soul, the motive power of Wall 
 Street, is an evil in the land, a danger 
 
144 THE ART OF INVESTING. 
 
 to private wealth, a disturbing force in 
 general business, and a foe to public 
 morals. A not overdrawn description 
 would picture it as an enormous devil- 
 fisli witli a hundred thousand arms 
 reaching into all parts of the country, 
 and all equipped with suckers more or 
 less powerful, and busy every one of 
 them, in extracting nourishment for 
 the monster to which it belongs. The 
 trouble is that its tentacles are rarely 
 seen. They work in the dark ; they have 
 the gift of invisibility. But, oh, how 
 many victims they have crushed ! Yon- 
 der is a bank that is supposed to be as 
 solid as the hills. Rich and poor make 
 it the depository of their surpluses. It 
 enjoys the confidence of all. But in an 
 evil hour one of the arms of the Wall 
 
SPECULATING. 145 
 
 Street octopus lias fastened itself upon 
 it and penetrated to its safe, and pretty 
 soon its president, or its cashier, or its 
 managing director, will be gone — gone 
 to Canada — and the bank will be 
 wrecked. There is a citizen who has 
 the respect of all. He is a good man, 
 useful in his community, and the strong- 
 hold of his family and his friends. But, 
 somehow, he is caught in the deadly 
 embrace, and soon he w^ill be a bank- 
 rupt and a defaulter, if not a suicide. 
 Such cases, by their frequency, have 
 almost ceased to surprise ; and yet they 
 represent but a small portion of the 
 losses actually wrought. Most of the 
 injuries inflicted by stock-gambling are 
 unknown, except to the sufferers. Wall 
 Street's victims, as a rule, do not expose 
 
 13 
 
146 THE ART OF INVESTING. 
 
 tLeir wounds unless they are mortal. 
 Tlie aggregate tax upon tlie country for 
 tlie support of its operations is some- 
 thing enormous. It can not be other- 
 wise when we see how Wall Street lives 
 and flourishes. It maintains a good- 
 sized army of operators, the member- 
 ship of the Stock Exchange numbering 
 nearly twelve hundred — without count- 
 ing " curbstone " men and other camp- 
 followers — who spend with the lavish- 
 ness of soldiers of fortune, while some 
 of them take unparalleled fortunes out 
 of the street. And yet Wall Street 
 does not produce a dollar. It creates 
 nothing. It draws its sustenance en- 
 tirely from outsiders. It is a blood- 
 sucker. 
 
 That Wall Street should continue 
 
SPECULATING. 147 
 
 to attract fresh patrons and victims, 
 in view of the numerous warnings they 
 have received, would be unaccountable 
 were it not for that feverish desire for 
 sudden riches which pervades the whole 
 country, and which "the street" has 
 been mainly instrumental in producing. 
 It is said of the cuttle-fish that it dis- 
 charges a fluid which darkens the 
 water all about it, and so blinds its 
 prey that they are helpless against its 
 attacks. The Wall Street monster — 
 the comparison still holds good — ^by 
 the example of its few conspicuous suc- 
 cesses and its general demoralization, 
 so impregnates the atmosphere of the 
 whole country with the speculative 
 mania, that thousands and thousands 
 can not resist it. There is no village so 
 
148 THE ART OF INVESTING. 
 
 small or so remote tliat it may not have 
 its local speculator. No calling or pro- 
 fession escapes tlie contagion. Tlie ac- 
 commodations for all are ample. Wall 
 Street lias its wire connections with all 
 points, and there are plenty of middle- 
 men to instruct the uninitiated and 
 take their orders for stocks. The "mar- 
 gin " feature is the cleverest bait. The 
 fact that, by putting up one thousand 
 dollars in cash, you can buy or sell from 
 ten to twenty thousand dollars in stocks, 
 and take a profit on the larger amount, 
 is to many an irresistible temptation. 
 Then, in theory, it is so easy to win by 
 speculation! To buy at a low figure 
 and sell at a higher, or to sell at a high 
 figure and afterward buy at a lower, 
 seems such a simple operation ! It al- 
 
SPECULATING. 149 
 
 most looks as if you could go into Wall 
 Street and pick up money from tke side- 
 walks. Those wlio have made tke at- 
 tempt, however, liave found tlie practice 
 very different from tlie theory. When 
 the cleverest operators, the trained Tia- 
 bitues of the street, so often make ship- 
 wreck, what hope is there for the inex- 
 perienced ? A loss, however, is usually 
 incurred before the real difficulties of 
 the situation are realized, and then, in 
 nine cases in ten, there exists on the 
 part of speculators, out of sheer despera- 
 tion or from the fascination that attends 
 the game, the determination to try an- 
 other chance, and in that way good 
 money is thrown after bad until ruin is 
 reached. It is folly to charge upon 
 Wall Street sharpers the seduction of 
 
ISO THE ART OF INVESTING. 
 
 sucIl men. They lose because they 
 want to make money, are not particular 
 how they make it, and flatter themselves 
 that they are sharp enough to win where 
 others have failed. They are their own 
 victims. 
 
 And yet they are not the only suf- 
 ferers, and possibly not the greatest. 
 The man who wins somebody else's 
 money in Wall Street is far more than 
 likely to lose it, and more with it, at the 
 next venture he makes. And even the 
 few so-called lucky ones who retire with 
 their winnings, are not under all cir- 
 cumstances to be envied. The triumph 
 of the man who victimizes the public 
 with watered stocks, which are no better 
 than adulterated wares or counterfeited 
 coin, is not without alloy. He may re- 
 
* SPECULATING. 151 
 
 joice in tlie money, and in tlie fleeting 
 importance it gives him, but lie knows 
 how lie got his wealth, and he knows 
 that others know how he got it. The 
 sensitiveness of pride remains, even if 
 conscience be dead. 
 
 But while the writer does not hesi- 
 tate to arraign the ISTew York Exchange, 
 being the acknowledged center of stock 
 speculation in the country, as an enemy 
 to public morals and general business, 
 he admits that it is not the only culprit 
 of the kind. The Produce Exchange — 
 or Board of Trade, as it is called — of 
 Chicago, is a den of speculators, whose 
 operations are even more pernicious. 
 They affect more far-reaching interests. 
 Stocks and bonds are in comparatively 
 few hands, and these are generally strong 
 
152 THE ART OF INVESTING. 
 
 enough to withstand ordinary fluctua- 
 tions. But the produce-gambler deals 
 with men's necessities, he juggles with 
 the staff of life. The soil- worker, who 
 takes no part in the gamester's opera- 
 tions, and is in no wise responsible for 
 them, is liable at any time to be robbed 
 of his just rewards through their deals 
 and pools; and the mechanic or other 
 wage-earner, who is equally innocent of 
 complicity with them, is compelled to 
 pay them tribute on every loaf of bread 
 and every cut of beef or pork he puts 
 into his own or his children's mouths. 
 Of all kinds of speculative gambling, 
 that in breadstuffs and meats is the low- 
 est, the meanest. The same comment, 
 differing in degree only, will apply to 
 such institutions as the Petroleum Board 
 
SPECULATING. 153 
 
 of Pittsburg. Indeed, it runs tlie whole 
 gamut of the speculative "exchanges" 
 and " boards," from the highest down to 
 the petit-larceny bucket-shop where, with 
 a ten-dollar bill, you can purchase a 
 chance on stocks, or oil, or wheat, or 
 pork, or anything else that men gamble 
 in. All are members of one family, and 
 should be reo-arded and treated alike. 
 
APPENDIX. 
 
 INVESTMENT SECURITIES, 
 
 Ant one having a negotiable security is 
 naturally anxious to know its market value ; 
 especially so if looking for a purchaser. If 
 the security happens to be listed at a stock- 
 exchange, it is an easy matter to get a quota- 
 tion on it, and a buyer can generally be found 
 at some price. Or, if looking for a not very 
 common security, any one may possibly be 
 aided in his search by reference to the same 
 quarter. Few, however, outside of profession- 
 al bond and share dealers, are familiar with 
 the transactions of the exchanges, and it is 
 probable that a preponderance of the securi- 
 ties dealt in at their boards are in the hands 
 of people ignorant of the positions they oc- 
 cupy. To such parties, as well as to those 
 who may be in quest of particular bonds or 
 shares, without knowing exactly where to look 
 
56 APPENDIX. 
 
 for them, and what their acquisition will cost, 
 the following transcripts from the books of 
 our principal exchanges, and showing the range 
 of their operations, will be of interest, and 
 sometimes of advantage. 
 
 It will be seen that, beyond giving, to some 
 extent, a preference to obligations that happen 
 to be strictly local or most generally held in 
 the neighborhood, no positive rule of selection 
 has been observed in making up the lists. The 
 good and the bad are mingled in a way that is 
 quite indiscriminate, and which to the casual 
 observer must be somewhat bewildering. To 
 any one, however, who has read the accom- 
 panying chapters there will be no particular 
 mystery about it. Indeed, it is partly to illus- 
 trate the points therein made that the follow- 
 ing record is given. 
 
 As prices bid or paid are constantly fluctu- 
 ating, there is no use in giving present or 
 recent figures ; but any one interested in any 
 of the securities on the lists can easily inform 
 himself by applying to the proper quarter or 
 quarters. 
 
INVESTMENT SECURITIES. 157 
 
 NEW YORK STOCK-EXCHANGE. 
 
 Government Securities. 
 
 Amount. 
 
 U.S.4K, registered 1891 [244,251,000 
 
 43^, coupon 1891 S 
 
 4;s, registered 1907 1 737,812,800 
 
 4 s, coupon 1907 S 
 
 6's, currency 1895 3,002,000 
 
 6's, " 1896 8,000,000 
 
 6's, " 1897 9,712,000 
 
 6's, " 1898 29,904,952 
 
 6's, " 1899 14,004,560 
 
 State Securities. 
 
 Alabama, Class A, 3 to 5 1906, 6,728,800 
 
 Class B, 5's 1906, 539,000 
 
 Class C, 4's 1906, 959,000 
 
 6's, 10-20 1900, 960,000 
 
 Arkansas 6's, Funded 1899-1900, 3,000,000 
 
 7's, Little Rock & Fort Smith. . . 1,000,000 
 
 7's, Memphis & Little Rock 1,200,000 
 
 7's, Lit. Rock, Pine Bl. & K 0.. 1,200,000 
 
 7's, Miss., Ouachita & Red Riv.. 600,000 
 
 7's, Arkansas Central 1,350,000 
 
 Georgia 7's, gold bonds 1890, 2,000,000 
 
 Louisiana 7's, consolidated 1914, \ 
 
 7's, consolidated, stamped 4's (• 12,039,000 
 
 7's, consolidated, small bonds ) 
 
 Michigan 7's 1890, 231,000 
 
 Missouri 6's, due 1887, 3,242,000 
 
 6's, due 1888, 3,251,000 
 
 6's, due 1889 or 1890, 1,105,000 
 
158 
 
 APPENDIX, 
 
 Missouri Asylum or University, due. .1892, 
 
 Funding bonds, due 1894-'95, 
 
 Hannibal & St. Joseph, due 1887, 
 
 New York 6's, gold registered 1887, 
 
 6's, coupon 1887, 
 
 6's, loan 1891, 
 
 6's, loan 1892, 
 
 6's, loan 1893, 
 
 North Carolina 6's, old 1886-'98, 
 
 April and October 
 
 to N. C. R. R., 1883-'4^'5, 
 
 7 coupons off 
 
 April and October 
 
 7 coupons off 
 
 Funding act . . . 1866-1900, 
 Funding act. . .1868-1898, 
 New b'ds, J. & J. .1892-'98, 
 New b'ds, J. & J., A. & 0., 
 
 Chatham Railroad 
 
 Special tax, Class 1 
 
 Special tax. Class 2 
 
 Special tax, to W'n N. C. R. 
 Special tax. Western R. R. 
 Special tax, Wil. C. & Ru. R. 
 Special tax, W'n & Tar. R. 
 
 Trust certificates 
 
 Consolidated 4's 1910, 
 
 Consolidated small. . . 
 
 6's 1919, 
 
 Rhode Island 6's, coupon 1893-'94, 
 
 South Carolina 6's, Act March 23, 1869, 
 
 non-fundable 1888, 
 
 Brown consol'n 6's. . . 1893, 
 
 Amount. 
 
 401,000 
 1,000,000 
 1,000,000 
 
 942,000 
 
 643,200 
 4,302,600 
 2,000,000 
 
 473,000 
 4,738,000 
 3,639,400 
 
 3,000,000 
 
 2,417,000 
 1,721,400 
 2,383,000 
 495,000 
 1,200,000 
 
 11,360,000 
 
 3,620,311 
 
 2,593,000 
 1,372,000 
 
 5,965,000 
 4,280,000 
 
INVESTMENT SECURITIES. 
 
 Amount. 
 
 Tennessee 6's, old 1890-'^'8, ^ 
 
 6's, new bonds. . . .1892-'8-1900, V 4,397,000 
 6's, new bonds, new series.. 1914> ) 
 
 Compromise, 3^U5-6's 1912, 2,014,000 
 
 New settlement, 6's 1913, 827,000 
 
 Small bonds 51,600 
 
 New settlement, 5's 1913, 349,000 
 
 Small bonds 10,300 
 
 New settlement, 3's 1913, 10,743,000 
 
 Small bonds 350,000 
 
 Virginia 6's, old 9,427,000 
 
 6's, new bonds 1866, 700,000 
 
 6's, new bonds 1867, 466,000 
 
 6's, consol. bonds 20,239,000 
 
 6's, consol. second series 2,442,784 
 
 6's, deferred bonds ) ^n gg-i to-i 
 
 6's, deferred bonds, trust receipts. 
 
 DiSTEiCT OF Columbia 3-65's 1924, 
 
 Small bonds \ 14,033,600 
 
 Kegistered. . 
 
 Funding 5's... 1899, 
 
 Funding 5's, smaU.. \ 943,400 
 
 Funding 5's, reg'd. 
 
 Railroad Stocks. 
 
 99,) 
 
 Albany & Susquehanna 3,500,000 
 
 Atchison, Topeka & Santa Fe 68,000,000 
 
 Atlantic & Pacific 25,000,000 
 
 Beech Creek 3,700,000 
 
 Preferred 1,300,000 
 
 Burlington, Cedar Rapids & Northern 5,500,000 
 
 Buffalo, Rochester & Pittsburg 6,000,000 
 
 Preferred 6,000,000 
 
i6o APPENDIX, 
 
 Amount. 
 
 Canada Southern 15,000,000 
 
 Canadian Pacific 65,000,000 
 
 Central of New Jersey 18,563,200 
 
 Central Iowa 9,100,000 
 
 First preferred 907,000 
 
 Second preferred 1,167,800 
 
 Central Pacific 68,000,000 
 
 Charlotte, Columbia & Augusta 2,578,000 
 
 Chesapeake & Ohio 15,906,138 
 
 First preferred 8,447,800 
 
 Second preferred 11,594,000 
 
 Chicago & Alton 14,091,000 
 
 Preferred 3,479,500 
 
 Chicago & Northwestern 41,373,000 
 
 Preferred 22,325,200 
 
 Chicago, St. Paul, Minneapolis & Omaha. . . 21,403,293 
 
 Preferred 12,646,833 
 
 Chicago, Rock Island & Pacific 50,000,000 
 
 Chicago, Burlington & Quincy 76,385,700 
 
 Chicago, Milwaukee & St. Paul 39,680,361 
 
 Preferred 21,555,900 
 
 Chicago & Eastern Illinois 3,000,000 
 
 Chicago, St. Louis & Pittsburg 10,000,000 
 
 Preferred. . . 20,000,000 
 
 Chicago & Indiana Coal Railway Company. 2,197,800 
 
 Preferred 1,465,200 
 
 Cincinnati, New Orleans & Texas Pacific. . . 3,000,000 
 
 Cincinnati, Indianapolis, St. Louis & Chicago. 10,000,000 
 
 Cincinnati, Jackson & Mackinac 8,320,000 
 
 Preferred 4,680,000 
 
 Cleveland & Pittsburg Guaranteed 11,243,736 
 
 Cleveland, Columbus, Cincinnati & Ind's. . . 14,991,800 
 
 Columbia & Greenville 1,000,000 
 
INVESTMENT SECURITIES. 
 
 Amount. 
 
 Columbia & Greenville preferred 1,000,000 
 
 Columbus, Hocking Valley & Toledo 11,700,000 
 
 Delaware, Lackawanna & Western 26,200,000 
 
 Morris & Essex 15,000,000 
 
 New York, Lackawanna & Western 10,000,000 
 
 Dubuque & Sioux City 5,000,000 
 
 Denver & Rio Grande , 38,000,000 
 
 Preferred , 23,650,000 
 
 Denver & Rio Grande Western 7,500,000 
 
 Denver, South Park & Pacific 3,500,000 
 
 Des Moines & Fort Dodge 4,283,100 
 
 Preferred 763,000 
 
 Detroit, Mackinac & Marquette 4,750,000 
 
 Detroit, Bay City & Alpena 1,070,000 
 
 East Tennessee, Virginia & Georgia 27,500,000 
 
 First preferred 11,000,000 
 
 Second preferred 18,500,000 
 
 Elizabethtown, Lexington & Big Sandy 5,000,000 
 
 Evansville & Terre Haute 3,000,000 
 
 Flint & Pere Marquette preferred 6,500,000 
 
 Green Bay, Winona & St. Paul 8,000,000 
 
 Preferred 2,000,000 
 
 Harlem 8,518,100 
 
 Preferred 1,381,500 
 
 Houston & Texas Central 10,000,000 
 
 Illinois Central 40,000,000 
 
 Leased line, 4 per cent stock 10,000,000 
 
 Indiana, Bloomington & Western \ 
 
 Associated first installment paid )■ 10,000,000 
 
 Associated full assessment paid ) 
 
 Joliet & Chicago 1,500,000 
 
 Kentucky Central 6,600,000 
 
 Keokuk & Western 4,000,000 
 
i62 APPENDIX. 
 
 Amount. 
 
 Kingston & Pembroke 4,500,000 
 
 Lake Erie & Western 11,840,000 
 
 Preferred 11,840,000 
 
 Lake Shore & Michigan Southern 49,466,500 
 
 Long Island 10,000,000 
 
 Louisville & Nashville 30,000,000 
 
 Louisville, New Albany & Chicago 5,000,000 
 
 Manhattan Railroad Consolidated 23,895,630 
 
 Marquette, Houghton & Ontonagon 2,378,600 
 
 Preferred 3,278,500 
 
 Mexican Central (Limited) 35,000,000 
 
 Milwaukee, Lake Shore & Western 2,000,000 
 
 Preferred 5,000,000 
 
 Milwaukee & Northern 4,131,000 
 
 Michigan Central 18,738,204 
 
 Missouri Pacific 45,000,000 
 
 Missouri, Kansas & Texas 46,405,000 
 
 Mobile & Ohio Railroad Associated 5,320,600 
 
 Morgan's Louisiana & Texas R. R. & S, S. . 1,004,100 
 
 Minneapolis & St. Louis 6,000,000 
 
 Preferred 4,000,000 
 
 Minneapolis, Sault Ste. Marie & Atlantic. . 2,426,000 
 
 Preferred 2,426,000 
 
 New York Central & Hudson River 89,428,300 
 
 New York, New Haven & Hartford 15,500,000 
 
 Boston & N. Y. Air Line preferred 
 
 4pc 3,000,000 
 
 New York, Lake Erie & Western 78,000,000 
 
 Preferred 8,536,900 
 
 New York, Ontario & Western 58,113,982 
 
 New York & New England 20,000,000 
 
 New Jersey & New York 1,500,000 
 
 Preferred 800,000 
 
INVESTMENT SECURITIES. 163 
 
 Amount. 
 
 New York, Chicago & St. Louis ) 28 000 000 
 
 Assented ) 
 
 P^^^«^^^^ \ 22,000,000 
 
 Assented ) 
 
 New York, Susquehanna & Western 13,000,000 
 
 Preferred 8,000,000 
 
 Northern Pacific 49,000,000 
 
 Preferred 37,936,776 
 
 Nashville, Chattanooga & St. Louis 6,688,375 
 
 Norfolk & Western 7,000,000 
 
 Preferred. . . 22,000,000 
 
 Norfolk Southern 1,000,000 
 
 Ohio & Mississippi 20,000,000 
 
 Preferred 4,030,000 
 
 Ohio Southern 3,840,000 
 
 Omaha & St. Louis preferred 2,220,500 
 
 Oregon & California 7,000,000 
 
 Preferred 12,000,000 
 
 Oregon & Transcontinental Company 40,000,000 
 
 Oregon Short Line 15,265,000 
 
 Oregon Improvement Company 7,000,000 
 
 Oregon Railway & Navigation Company. . . 24,000,000 
 
 Philadelphia & Reading, 1st assessment paid"] 
 
 Second assessment paid ! „ , ^^^ ^.^ 
 
 Third assessment paid j ^^'^^^'^^^^ 
 
 All assessments paid J 
 
 Preferred first assessment paid ^ 
 
 Second assessment paid ' 
 
 Third assessment paid j 1»286,800 
 
 All assessments paid J 
 
 Pittsburg, Fort Wayne & Chicago Guar'd. . 19,714,285 
 
 Special 10,776,600 
 
 Pitts., McK'pt & Youghiogheny Consol. Stk. 3,000,000 
 
1 64 APPENDIX. 
 
 Amount. 
 
 Peoria, Decatur & Eyansville 8,400,000 
 
 Richmond & Alleghany Reorganization Cert. ) f. ^^^ ^^^ 
 
 Stamped assessment paid f ' ' 
 
 Richmond & Danville 5,000,000 
 
 Richmond & W. P't. Railway & W. Co 40,000,000 
 
 Preferred 5,000,000 
 
 Rome, Watertown & Ogdensburg 5,293,900 
 
 Utica & Black River Guaranteed 2,223,000 
 
 South Carolina 4,204,160 
 
 Southern Pacific Company 88,076,200 
 
 St. Louis, Alton & Terre Haute 2,300,000 
 
 Preferred 2,468,400 
 
 Belleville & Southern Illinois preferred. . 1,275,000 
 
 St. Louis & San Francisco 11,954,300 
 
 Preferred 10,000,000 
 
 First preferred 4,500,000 
 
 St. Louis, Arkansas & Texas 9,555,000 
 
 St. Paul & Duluth 4,055,400 
 
 Preferred 5,377,003 
 
 St. Joseph & Grand Island 4,500,000 
 
 St. Paul, Minneapolis & Manitoba 20,000,000 
 
 Texas & Pacific Trust c'tf 's, all ass'ts paid. . 32,188,700 
 
 Toledo & Ohio Central 1,592,000 
 
 Preferred 3,108,000 
 
 United New Jersey Railroad & Cons. Co. . . 21,240,400 
 
 Union Pacific 60,868,500 
 
 Utah Central 4,250,000 
 
 Virginia Midland 6,000,000 
 
 Wabash, St. Louis & Pacific \ oq ^io f^nn 
 
 Full-paid P. C. certificates f -«'41J,500 
 
 Full-paid preferred ) 24003000 
 
 Full-paid P. C. certificates f ^4,.^d,.UU 
 
 Wheeling & Lake Erie 3,600,000 
 
INVESTMENT SECURITIES. 165 
 
 Miscellaneous Stocks. 
 
 Amount. 
 
 Bankers' & Merchants' Telegraph 3,000,000 
 
 Boston Land Company 800,000 
 
 Canton Company, Baltimore . . 4,500,000 
 
 Chartiers Valley Gas Company 3,000,000 
 
 Central New Jersey Land Improvement 2,200,000 
 
 Consolidated Gas Company 35,430,000 
 
 Delaware & Hudson Canal 24,500,000 
 
 Equitable Gas-Light Company , 3,000,000 
 
 Iron Steamboat Company 2,000,000 
 
 Manhattan Beach Company 5,000,000 
 
 Philadelphia Company 7,500,000 
 
 Pullman's Palace Car Company 15,927,200 
 
 Southern & Atlantic Telegraph 948,875 
 
 Sutro Tunnel Company 20,000,000 
 
 Western Union Telegraph 81,200,000 
 
 Northwestern Telegraph 2,500,000 
 
 Central & South American Telegraph 4,006,600 
 
 Commercial Telegraph Company 1,800,000 
 
 Preferred 200,000 
 
 Mexican Telegraph Company 1,500,000 
 
 Joliet Steel Company 2,666,000 
 
 Coal and Mining Stocks. 
 
 American Coal 1,500,000 
 
 Consolidation Coal of Maiyland . . . 10,250,000 
 
 Cumberland Coal & Iron 500,000 
 
 Colorado Coal & Iron Company 10,000,000 
 
 Cameron Iron & Coal Company 2,720,900 
 
 Columbus & Hocking Coal & Iron 4,700,000 
 
 Marshall Consolidated Coal Company 2,000,000 
 
 Maryland Coal Company 4,400,000 
 
 New York & Perry Coal & Iron Company. . 3,000,000 
 
1 66 APPENDIX. 
 
 Amount. 
 
 New Central Coal Company 5,000,000 
 
 Pennsylvania Coal 5,000,000 
 
 Quicksilver Mining Company 5,708,700 
 
 Preferred 4,291,300 
 
 Tennessee Coal, Iron & Railroad Company. 10,000,000 
 
 Express Stocks. 
 
 Adams Express.. . , 12,000,000 
 
 American Express 18,000,000 
 
 United States Express 10,000,000 
 
 Wells Fargo Express 6,250,000 
 
 Pacific Mail Steamship Company 20,000,000 
 
 Railroad Bonds. 
 
 Atchison, Topeka & Santa Fe 4i's 1920, 4,687,000 
 
 Sinking-fund 6's 1911, 12,348,000 
 
 Atlantic & Pacific Guar. 1st gold 4's. .1937, 17,610,000 
 
 Beech Creek first gold 4's 1936, 5,000,000 
 
 Baltimore & Ohio first 6's, Park'g bch, 1919, 3,000,000 
 
 5's gold 1885-1925, 
 
 ^ . , ^ , 10,000,000 
 
 Registered 
 
 Boston, Hoosac Tunnel & Wn. Deb. 5's, 1913, 2,000,000 
 
 Burlington, C. R. & Northern 1st 5's. . 1906, 6,500,000 
 
 Con. 1st & Col. Tr., gold 5's 1934, ) ^ ^^^ ^^^ 
 
 Registered f [ ^'^^^'^^^ 
 
 Minneapolis & St. Louis 1st g 7's g'd, 1927, 150,000 
 
 Iowa City & Western 1st gold 7's. . .1909, 456,000 
 
 Cedar Rapids, Iowa, P's & N. 1st 6's, 1920, 825,000 
 
 1st 5's 1921, 1,905,000 
 
 Buffalo, N. Y. & Ph. Ry. Con. 1st 6's, 1921, \ ^^ ^^^ ^^ 
 
 Trust certificates S ' ' 
 
 Railroad general 6's 1924, ) 3 ^-qq qoo 
 
 Trust certificates \ ' ' 
 
INVESTMENT SECURITIES. 1l^ 
 
 Canada Southern 1st in't gt'd 5's 1908, 
 
 2d mortgage 5's 1913, 
 
 Registered 
 
 Central Iowa 1st mortgage 7's 1899, 
 
 Coupons off 
 
 Eastern division 1st 6's 1912, 
 
 Illinois division 1st 6's 1912, 
 
 Central R. R. & Bkg. Co. O. col. g 5's, 1937, 
 
 Chesapeake & Ohio Pur. M'y. Fd 1898, 
 
 6's gold. Series A 1908, 
 
 6's gold, Series B 1908, ^ 
 
 Coupons off 
 
 Small bonds 1908, 
 
 Coupons off 
 
 Extension coupons, gold 4's 1986, 
 
 Regular 4's 1986, j 
 
 6's, currency 1918, ) 
 
 Small bonds 1918, ) 
 
 Mortgage 6's 1911, 
 
 Chesapeake, Ohio & S. W. Mtge. 5-6's, 1911, 
 
 2d mortgage 6's 1911, 
 
 Chicago & Alton 1st mortgage 7's. . . 1893, 
 
 Sinking fund, gold 6's 1903, 
 
 Louisiana & Missouri River 1st 7's. .1900, 
 
 2d 7's 1900, 
 
 St. Louis, Jacksonville «& C. 1st 7's . . 1894, 
 
 1st guaranteed (564) 7's 1894, 
 
 2d mortgage (360) 7's 1898, 
 
 2d guaranteed (188) 7's 1898, 
 
 Mississippi River B'ge 1st S. F. g 6's, 1912, 
 
 Chicago, B. & Q. consolidated 7's 1903, 
 
 5's, sinking fund 1901, 
 
 5's, debentures 1913, 
 
 Amount. 
 
 14,000,000 
 6,000,000 
 
 3,700,000 
 
 1,515,000 
 1,520,000 
 5,000,000 
 2,300,000 
 2,000,000 
 
 15,000,000 
 
 10,122,500 
 
 2,000,000 
 6,676,000 
 2,495,000 
 2,383,000 
 2,655,000 
 1,785,000 
 
 300,000 
 2,365,000 
 
 564,000 
 44,000 
 
 188,000 
 
 660,000 
 
 30,000,000 
 
 2,500,000 
 
 9,000,000 
 
1 68 APPENDIX. 
 
 Amount. 
 
 C. B. & Q., Iowa Division S. F. 5's 1919, 3,000,000 
 
 4's 1919, 10,591,000 
 
 Denver Division 4's 1922, 7,968,000 
 
 4's 1921, 4,300,000 
 
 Nebraska Extension 4's 1927, 7,600,000 
 
 Registered 400,000 
 
 Chicago, Burlington & North. 1st 5's. .1926, 9,000,000 
 
 Debenture 6's 1896, 2,250,000 
 
 Chicago, R I. & Pacific 6's, coupon. . .1917, ) ^^ ^^ ^^^ 
 
 6 s, registered 1917, ) ' 
 
 Extension & Col. 5's 1934, } ^^ 
 
 Registered S ' ' 
 
 Des Moines & Fort Dodge 1st 4's. . . . 1905, 1,200,000 
 
 1st 2i's 1905, 1,200,000 
 
 Extension 4's 672,000 
 
 Keokuk & Des Moines 1st Mg. 5's. . . 1923, 2,750,000 
 
 Central Railroad of N. J., 1st 7's.. . .1890, 5,000,000 
 
 1st consolidated 7's 1899, ^ ^5 {\csOi 000 
 
 Convertible' 'r;:.v.'.';. ;.■;.■.■.■.■.■. .'.Voos; , 
 
 Assented ) 
 
 Convertible debenture 6's 1908, 5,000,000 
 
 Interim bond certificates 12,000,000 
 
 Lehigh & W. B. Con. guaranteed. . .1900, ) ^^ p,^„ „„^ 
 
 Assented f ' ' 
 
 Am. Dock & Improvement Co. 5's.. .1921, 5,000,000 
 
 M. & St. Paul's 1st M. 8's, P. D 1898, 3,674,000 
 
 2d 7 3-10 P. D 1898, 1,241,000 
 
 1st 7's % gold, R. D 1902, ) 
 
 1st 7's £ gold, R. D 1902, \ ^'^^^'^^^ 
 
 1st mortgage La. Consolidated 7's, 1893, 5,264,000 
 
 1st mortgage I. & M. 7's 1897, 3,198,000 
 
 1st mortgage I. & D. 7's 1899, 541,000 
 
INVESTMENT SECURITIES. 169 
 
 Amount 
 
 M. & St. P. 1st mortgage C. & M. 7's . 1903, 2,393,000 
 
 Consolidated 7's 1905, 35,000,000 
 
 1st mortgage 7's, I. & D. extension, 1908, 3,505,000 
 
 1st 6's, Southwestern Division 1909, 4,000,000 
 
 1st 5's Louisiana C. & Dav 1919, 3,000,000 
 
 1st South Min. Division 6's 1910, 7,432,000 
 
 1st H. & D. Division 7's 1910, 5,680,000 
 
 5's 1910, 585,000 
 
 Chicago & Pacific Division 6's 1910, 2,500,000 
 
 1st Chicago & Pacific W. 5's, 1921, 24,540,000 
 
 Chicago & Mo. ftiver Division 5's. 1926, 2,049,000 
 
 Mineral Point Division 5's 1910, 2,840,000 
 
 C. & Lake Superior Division 5's. . . 1921, 1,360,000 
 
 Wisconsin & Min. Division 5's 1921, 4,755,000 
 
 Terminal 5's 1914, 4,666,000 
 
 Far. & So. 6's Assu 1924, 1,250,000 
 
 Inc. convertible sinking fund 5's. . 1916, 2,000,000 
 
 Dakota & Great Southern 5's 1916, 1,000,000 
 
 Chicago and Northwestern Con. 7's, 1915, 12,900,000 
 
 '^'j- 48,000,000 
 
 Coupon gold 7's 1902, 
 
 Registered gold 7's 1902 
 
 Sinkmg fund 6's. 1879-1939, ) 
 
 Kegistered ) ' 
 
 ^■■::-- 1879-1929,. 
 
 Kegistered ) ' 
 
 Ssr.:a!:;v;::;;;:;;;.v;;.^!^ho«o 
 
 25 years debenture 5's 1909, ) . ^^ ^^^ 
 
 Registered ) ' ' 
 
 Extension gold 4's 1886-1926, 8,190,000 
 
 Escanaba & Lake Superior 1st 6's.. .1901, 720,000 
 
 Des Moines & Minneapolis 1st 7's.. .1907, 600,000 
 
 Iowa Midland 1st mortgage 8's 1900, 1,350,000 
 
 15 
 
170 APPENDIX, 
 
 Amount. 
 
 Peninsula 1st convertible 7's 1898, 152,000 
 
 Chicago & Mil. 1st mortgage 7's 1898, 1,700,000 
 
 Winona & St. Pet's 2d 7's 1907, 1,592,000 
 
 Milwaukee & Madison 1st 6's 1905, 1,600,000 
 
 Ottumwa C. F. & St. P. 1st 5's 1909, 1,600,000 
 
 Northern Illinois 1st 5's 1910, 1,500,000 
 
 C. C. C. & Ind's 1st 7's sinking fund. . . 1899, 3,000,000 
 
 Consolidated mortgage 7's 1914, ) -, f,^^ ^^^ 
 
 Sinking fund 7's 1914, \ ^'^^^'^^^ 
 
 General consolidated gold 6's . . .1934, ) „ ^^^ ^^^ 
 
 Registered S 
 
 Chicago, St. Paul, Min. & O'a Con. 6's, 1930, 22,839,000 
 
 Chicago, St. Paul & Min. 1st 6's 1918, 3,000,000 
 
 N. Wisconsin 1st mortgage 6's 1930, 800,000 
 
 St. Paul & Sioux City 1st g. 6's 1919, 6,080,200 
 
 Chicago & Eastern Illinois 1st S. F. C'y, 1907, 3,000,000 
 
 Small bonds 
 
 1st consolidated 6's gold 1934, 3,000,000 
 
 Chicago, St. L. & Pitts. 1st con. g. 5's, 1932, ) ^^ ^^^ ^^^ 
 
 Registered ) 
 
 Chicago & Western Ind. 1st S. F. g. 6's, 1919, 2,500,000 
 
 General mortgage g. 6's 1932, 8,896,666 
 
 Chicago & St. Louis 1st 6's 1915, 1,500,000 
 
 Chicago & Ind. Coal Railway 1st 5's. . . 1936, 3,689,000 
 
 Cin., Ind., St. Louis & Chicago 1st g. 4's, 1936, ) ^ ^rr; QfjA 
 
 Registered ) ' ' 
 
 Cin., Jack. & Mac. 1st con. g. 5's 1936, 1,400,000 
 
 Columbia & Greenville 1st 6's 1916, 2,000,000 
 
 2d 6's 1926, 1,000,000 
 
 Columbus, Hocking V. & Tol. Con. g. 5's, 1931, 14,500,000 
 
 General mortgage gold 6's 1904, 2,000,000 
 
 Columbus & Cincinnati Midland 1st 6's, 1914, 2,000,000 
 
 Delaware, Lack. & Western Conv. 7's . . 1892, 600,000 
 
INVESTMENT SECURITIES. 171 
 
 Amount. 
 
 Del. Lack. & W. Mortgage 7's 1907, 10,000,000 
 
 Syracuse, Binghamton & N. Y. 1st Ts, 1906, 1,750,000 
 
 Morris & Essex 1st mortgage 7's 1914, 5,000,000 
 
 2d 7's 1891, 3,000,000 
 
 Bonds rs 1900, 281,000 
 
 rs of. 1871-1901, 4,991,000 
 
 1st consolidated guaranteed 7's. . .1915, 25,000,000 
 
 New York, Lack. & Western 1st 6's. . 1921, 12,000,000 
 
 Construction 5's . . .1923, 5,000,000 
 
 Del. & Hudson Canal 1st reg. 7's.. . .1891, 4,988,000 
 
 1st extension regular 7's 1891, 549,000 
 
 ^''"P-'^'^h; ^Zl\ 4.829,000 
 
 Registered 7's 1894,) ' ' 
 
 1st Pennsylvania Division c. 7's. . . 1917, ) ^ ^ ^^^ ^^^ 
 
 Registered 1917,) ' ' 
 
 Albany & Susquehanna 1st 7's 1888, 1,000,000 
 
 1st con. guaranteed 7's 1906, ) „ ^^^ ^^^ 
 
 Registered \ ^'^^^'^^^ 
 
 6's 1906 
 
 T, . , 1 I 5,488,000 
 
 Registered ) 
 
 Rens'r & Saratoga 1st coupon 7's.. . .1921, ) « «^^ ^„^ 
 
 1st regular 7's 1921,) ' ' 
 
 Denver & Rio Grande 1st Con. g. 4's. .1936, 22,575,000 
 
 Denver & Rio Grande 1st mort. g. 7's, 1900, 6,382,500 
 
 Denver, S. P'k & Pacific 1st g. 7's 1905, 1,800,000 
 
 Denver & Rio Grande W'n 1st g. 6's. .1911, ) ^ ^^.^ ^^^ 
 
 Assented j ' ' 
 
 Detroit, Mackinac & Marquette 1st 6's, 1921, 2,280,000 
 
 Land grant 3^ S. A , 1911, 4,560,000 
 
 Detroit, Bay City & Alpena 1st g. 6's.. 1913, 2,300,000 
 
 E. Tenn., Virginia & Georgia 1st 7's. . . 1900, 3,500,000 
 
 Divisional 5's 1930, 3,106,000 
 
 E. Tenn., Va. & Ga. Ry. con. 1st g. 5's, 1956, 12,770,000 
 
172 APPENDIX. 
 
 Amount. 
 
 E. & W. of Alabama 1st con. gold 6's. . 1926, 1,709,000 
 
 Elizabeth City & Norfolk S. F. deb. cert. 6's. . 250,000 
 
 1st mortgage g. 6's 1920, 900,000 
 
 Elizabethtown, Lex. & Big Sandy 6's. .1902, 3,500,000 
 
 Erie 1st mortgage exten'd g. 7's. ...... 1897, 2,482,000 
 
 2d exten'd g. 5's 1919, 2,149,000 
 
 3d exten. g. 4i's 1923, 4,618,000 
 
 4th exten. g. 5's 1920, 2,926,000 
 
 5th 7's 1888, 709,500 
 
 1st con. gold 7's 1920, 16,890,000 
 
 1st con. gold F'd 7's 1920, 3,705,997 
 
 Reorganization 1st lien 6's 1908, 2,500,000 
 
 Long Dock bonds Ts. 1893, 3,000,000 
 
 Consolidated gold 6's 1935, 4,500,000 
 
 Buffalo, New York & Erie 1st 7's. . .1916, 2,380,000 
 
 N. Y. L. E. & W. new 2d con. 6's. . . 1969, 33,597,400 
 
 Collateral Trust 6's 1922, 5,000,000 
 
 Funding coupon 5's. .1885-1969, 4,032,000 
 
 Buffalo & Southwestern mort. g. 6's, 1908, ) ^ ^^^ ^^^ 
 
 Small .....) ' ' 
 
 Evansville & Terre H. 1st con. g. 6's. .1921, 3,000,000 
 
 Mount Vernon 1st 6's .1923, 375,000 
 
 Evansville & In's 1st con. gtd g. 6's. . .1926, 1,020,000 
 
 Eureka Springs Railway 1st 6's g 1933, 500,000 
 
 Flint & Pere Marquette mort. g. 6's. . . 1920, 5,000,000 
 
 Fort Worth & Denver City 1st 6's 1921, 6,448,000 
 
 Galveston, Har. & San Ant. 1st g. 6's. .1910, 4,800,000 
 
 2d mortgage g. 7's 1905, 1,000,000 
 
 Western Division 1st g. 5's 1931, 13,500,000 
 
 2d 6's 1931, 6,750,000 
 
 Grand Rapids & Ind. general 5's 1924, ) g ^yi qoO 
 
 Registered , ) 
 
 Green Bay, W. & St. Paul 1st 6's 1911, 1,600,000 
 
INVESTMENT SECURITIES. 173 
 
 Amount. 
 
 Oulf , Colorado & Santa Fe 1st 7's 1909, 11,724,000 
 
 GoldO's 1923, 6,000,000 
 
 Hannibal & St. Joseph consolidated 6's, 1911, 6,000,000 
 
 Henderson Bridge Company 1st g. 6's, 1931, 2,000,000 
 
 Houston & Texas Cent. 1st M'n L. 7's, 1891, 6,896,000 
 
 1st Western Division 7's 1891, 3,375,000 
 
 1st Waco & N. 7's 1903, 1,140,000 
 
 2d C. Main L. 8's 1912, 4,118,000 
 
 General mortgage g. 6's 1921, ) ^ g^^ ^^^ 
 
 Trust Company receipts ) ' " ' 
 
 Houston, E. & W. Texas 1st g. 7's 1898, 1,344,000 
 
 Illinois Central. 
 
 if' P^-^t'' ^^''^'\ 1.500,000 
 
 Registered ) 
 
 ^^^^^^^^^'^ • ^^^^'^ 2,500,000 
 
 \ 18,000,000 
 
 Registered 
 
 Springfield Division coupon 6's 1898, 1,600,000 
 
 Middle Division regular 5's 1921, 600,000 
 
 Chicago, St. L. & N. 0. Ten. lien 7's, 1897, 541,000 
 
 1st con. 7's 1897, 857,000 
 
 2d mortgage 6's 1907, 80,000 
 
 Gold 5's 1951, 
 
 Registered 
 
 Dubuque & Sioux City 2d div. 7's. . . 1894, 586,000 
 
 Cedar Falls & Minneapolis 1st 7's. . .1907, 1,334,000 
 
 Indiana, Bl'n & W. 1st preferred 7's. . . 1900, 1,000,000 
 
 1st 5-6's trust receipts 3,408,000 
 
 2d 5-6's trust receipts 1,477,000 
 
 Eastern Division trust receipts 2,950,000 
 
 Ind's, D. & Sp. 1st 7's Ex. F. coupon. .1906, 1,613,000 
 
 International & Great N'n 1st 6's gold, 1919, 7,954,000 
 
 Coupon 6's 1909, 7,054,000 
 
 Kentucky Central Railway gold 4's . . . 1987, 6,600,000 
 
74 APPENDIX, 
 
 25,000,000 
 25,000,000 
 
 Amount. 
 
 Knoxville & Ohio 1st 6's gold 1925, 2,000,000 
 
 Lake Erie & Western 1st gold 5's 1937, 5,920,000 
 
 Lake Shore & Michigan Southern. 
 
 Cleveland, Pain'le & Ash. 7's 1892, 920,000 
 
 Buffalo & Erie new bonds 7's 1898, 2,784,000 
 
 Kalamazoo & W. Pig'n 1st 7's 1890, 400,000 
 
 Detroit, Montreal & Toledo 1st 7's. .1906, 924,000 
 
 Lake Shore Division bonds 7's 1899, 1,356,000 
 
 Consolidated coupon 1st 7's 1900, 
 
 Registered 1st 1900, 
 
 Coupon 2d 7's. 1903, 
 
 Registered 2d 1903, 
 
 Mahoning Coal Railroad 1st 5's 1934, 1,500,000 
 
 Long Island 1st mortgage 7's 1898, 1,500,000 
 
 1st consolidated g. 5's 1931, 5,000,000 
 
 New York & Manhattan B'h 1st 7's, 1897, 500,000 
 
 New Y., B. & Man. B. 1st con. g. 5's, 1935, 783,000 
 
 Louisville & Nashville consolidated 7's, 1898, 7,070,000 
 
 Cecilian Branch 7's 1907, 1,000,000 
 
 New Orleans & Mobile 1st g. 6's. . . .1930, 5,000,000 
 
 2d 6's 1930, 1,000,000 
 
 E. H. & Nashville 1st g. 6's 1919, 2,400,000 
 
 General mortgage g. 6's 1930, 20,000,000 
 
 Pensacola Division 6's 1920, 600,000 
 
 St. Louis Division 1st g. 6's 1921, 3,500,000 
 
 2d g. 3's 1980, 3,000,000 
 
 Nashville & Dec. 1st 7's 1900, 1,900,000 
 
 South & N. Ala. sinking fund 6's. . .1910, 2,000,000 
 
 Louisville, Cin. & Lexington g. 6's. .1931, 7,000,000 
 
 Trust bonds g. 6's 1922, 10,000,000 
 
 Ten-forty g. 6's 1924, 5,000,000 
 
 5 per cent fifty year gold bonds 1937, 1,350,000 
 
 Pens. & At. 1st 6's gold guaranteed, 1921, 3,000,000 
 
INVESTMENT SECURITIES. 175 
 
 Amount. 
 
 Louisville, N. Albany & Chicago 1st 6's, 1910, 3,000,000 
 
 Consolidated gold 6's 1916, 3,500,000 
 
 Louisville, N. 0. & Texas 1st gold 4's, 1934, 11,140,000 
 
 2d mortgage 5's 1934, 8,117,000 
 
 Memphis & Charleston 6's gold 1924, 1,000,000 
 
 Metropolitan Elevated 1st g. 6's 1908, 10,818,000 
 
 2d 6's 1899, 4,000,000 
 
 Mexican Central 1st mortgage 7's 1911, \ 
 
 Ex-coupon 6-7-8 t 41,170,000 
 
 New assented 4's ) 
 
 Income bonds 1911, 8,734,000 
 
 Michigan Central 1st consolidated 7's. 1902, 8,000,000 
 
 5's 1902, 2,000,000 
 
 6's 1909, 1,500,000 
 
 Coupon 5's 1931, . „„„ „ „^ 
 
 T> • 1. J (ri ^^o/ r 4,000,000 
 
 Registered 5's 1931, ) ' ' 
 
 Jack., Lan. & Sag. 6's 1891, 1,100,000 
 
 Milwaukee & Nor. 1st main line, 6's.. .1910, 2,155,000 
 
 On extension 1st 6's 1913, 1,976,000 
 
 Milwaukee, Lake Shore & W'n 1st g. 6's, 1921, 4,350,000 
 
 Convertible debenture 5's 1907, 600,000 
 
 Michigan Division 1st 6's 1924, 1,281,000 
 
 Ashland Division 1st g. 6'«. 1925, 1,000,000 
 
 Minneapolis & St. Louis 1st g. 7's 1927, 950,000 
 
 Iowa extension 1st g. 7's 1909, 1,015,000 
 
 2d mortgage 7's 1891, 500,000 
 
 Southwestern extension 1st g. 7's. . .1910, 636,000 
 
 Pacific extension 1st g. 6's 1921, 1,382,000 
 
 Improvement & Equipment 6's 1922, 2,900,000 
 
 Minneapolis & Pacific 1st mortgage 5's, 1936, 3,035,000 
 
 Minneapolis & Northwestern 1st 5's g., 1934, 7,783,000 
 
 Minn., Sault Ste. Marie & Atl. 1st g. 5's, 1926, 4,000,000 
 
 Missouri, Kansas & T. Gen. Cons. g. 6's, 1920, 85,815,000 
 
176 APPENDIX. 
 
 Amount. 
 
 M. K. & T. Gold 5's 1920, 9,284,000 
 
 Consolidated g. 7's 1904-5-6, 14,877,000 
 
 2d mortgage Inc 1911, 630,000 
 
 H. & Central Missouri 1st g. 7's 1800, 664,000 
 
 Mobile & Ohio new mortgage g. 6's . . . 1927, 7,000,000 
 
 Collateral trust 6's 1892, 59,000 
 
 1st extension 6's 1927, 1,000,000 
 
 St. Louis & Cairo g. 4's guaranteed, 1931, 4,000,000 
 
 Morgan's Louisiana & Texas 1st g. 6's, 1920, 1,494,000 
 
 1st 7's .....1918, 5,000,000 
 
 Nashville, Chat. & St. Louis 1st 7's. . . . 1913, 6,800,000 
 
 2d 6's 1901, 1,000,000 
 
 New York Central 6's 1887, 2,391,000 
 
 Debt, certificates extended 5's 1893, 6,450,000 
 
 New York & Hudson 1st coupon 7's, 1903, ) ^n nnn nr\n 
 
 1st registered 1903, ) ' 
 
 Debenture 5's 1904^ ) ^ ^^^ ^^ 
 
 Registered ) ' ' 
 
 Harlem 1st mortgage 7's, coupon. . .1900, ) ..^ ^^^ ^-.^ 
 
 7's, registered 1900, S ^^'"""'""" 
 
 New Jersey Junction guar. 1st 4's 1986, ) ^ ^^ ^^ 
 
 Registered certificates ) ' ' 
 
 New York Elevated 1st moftgage 7's. .1906, 8,500,000 
 
 New York, Penn. & Ohio prior lien 6's, 1895, 8,000,000 
 New York City & Northern Gen. M. 6's, 1910^ \ 
 
 Trust Company receipts .' [• 4,000,000 
 
 Assented ) 
 
 New York & New England 1st 7's 1905, 6,000,000 
 
 1st 6's 1905, 4,000,000 
 
 N. Y., Ch. & St. L. 1st 6's T't Rec. Ass'd. ^ \ ^^ qqq qqq 
 
 New Trust Company receipts ) ' ' 
 
 2d 6's 1923, 10,000,000 
 
 New York, Ontario & W. 1st gold 6's. . 1914, 3,000,000 
 
INVESTMENT SECURITIES. 177 
 
 Amount. 
 
 New York, Susq'a & Wn debent. 6's. . 1897, ) ^^^ ^^^ 
 
 Coupons off ) ' 
 
 1st refunding 5's 1937, 3,750,000 
 
 2d mortgage 4i's 1937, 636,000 
 
 Midland Railroad of New J. 1st 6's, 1910, 3,500,000 
 
 N. Y., N. Haven «& Hartford 1st reg. 4's, 1903, 2,000,000 
 
 N. Y., Texas & Mexican guar. 1st 4's. . 1912, 1,442,500 
 
 Northern Pacific Gen. 1st M. R. R., coupon ) ^^ „^^ ^^^ 
 
 L'd Gt. gold 6's, 1921, regular \ ^^'^^^'O^O 
 
 Gen. 2d M. R. R., coupon ) 20 000 000 
 
 L. G. sinking fund gold 6's, 1933, regular ) ' ' 
 
 Dividend scrip ) ^1 
 
 Extended ) 
 
 James River Valley 1st 6's, gold. . . .1936, 963,000 
 
 Spokane & Pal. 1st sinking fund g. 6's, 1936, 688,000 
 
 St. Paul & N. Pacific Gen. g. 6's 1923, ) ^ g^^ qqq 
 
 Registered certificates ) 
 
 Helena & Red M'n 1st g. 6's 1937, 400,000 
 
 Duluth & Manitoba 1st g. 6's 1936, 1,650,000 
 
 Hel. B. Valley & Butte 1st 6's, g. . . .1937, 600,000 
 
 Nor. Pacific Term'l Co. 1st gold 6's. . .1933, 3,000,000 
 
 New Orleans Pacific 1st 6's, gold 1920, \ 
 
 Couponsofl [ 6,720,000 
 
 Trust Company receipts ) 
 
 N. Orleans & N. E'n. prior lien gold 6's, 1915, 1,050,000 
 
 Norfolk & Western Gen'i Mort. 6's. . . .1931, 6,902,000 
 
 New River 1st 6's 1932, 2,000,000 
 
 Improvement & extension g. 6's 1934, 3,500,000 
 
 Adjustment mortgage g. 7's 1924, 1,500,000 
 
 Ogdensburg & L. Champlain 1st con. 6's, 1920, 3,500,000 
 
 Ohio & Miss. Cons, sinking fund 7's. . .1898, 3,435,000 
 
 Consolidated 7's.. 1898, ■ 3,066,000 
 
 2d consolidated 7's 1911, 3,715,000 
 
78 
 
 APPENDIX. 
 
 Ohio & Miss. 1st Springfield Division 7's.l905, 
 
 1st general 5's 1932, 
 
 Ohio Central 1st Ter'l Trust 6's 1920, 
 
 1st Min'l Division 6's 1921, 
 
 Ohio Eiver Railroad 1st g. 5's 1936, 
 
 Ohio Southern 1st mortgage 6's 1921, 
 
 Omaha & St. Louis Railway 1st 4's.. . .1937, 
 
 Oregon & California 1st g. 6's 1921, 
 
 Oregon & Transcontinental 6's.. .1882-1922, 
 
 Oregon Improvement Co. 1st g. 6's 1910, 
 
 Oregon R'y & Navigation 1st g. 6's.. . .1909, 
 
 Consolidated mortgage g. 5's 1925, 
 
 Panama sinking fund Sub'y g. 6's 1910, 
 
 Peoria, Decatur & Evansville 1st 6's.. .1920, 
 
 Evansville Division 1st 6's 1920, 
 
 2d mortgage g. 5's 1927, 
 
 Peoria & Pekin Union 1st g. 6's 1921, 
 
 2d mortgage g. 4|'s 1921, 
 
 Central Pacific, gold bonds 6's 1895, 
 
 " " 1896, 
 
 " 1897, 
 
 " « 1898, 
 
 San Joaq'n Branch g. 6's 1900, 
 
 California & Oregon 1st g. 6's 1888, 
 
 Series B. g. 6's 1892, 
 
 Land grant g. 6's 1890, 
 
 Mortgage bond 6's 1936, 
 
 Western Pacific bonds 6's 1899, 
 
 Nor. R'y (Cal.) 1st g. 6's guaranteed. 1907, 
 Southern Pacific of Cal. 1st g. 6's, 1905-'12, 
 S. Pacific of Arizona guar. 1st 6's, 1909-'10, 
 Southern Pacific of N. Mexico 1st 6's, 1911, 
 
 Amount. 
 3,000,000 
 3,216,000 
 600,000 
 300,000 
 2,000,000 
 2,100,000 
 2,717,000 
 9,000,000 
 10,063,000 
 5,000,000 
 6,000,000 
 9,137,000 
 2,747,000 
 1,287,000 
 1,470,000 
 2,088,000 
 1,500,000 
 1,499,000 
 
 25,883,000 
 
 6,080,000 
 
 6,000,000 
 
 5,860,000 
 
 9,436,000 
 
 12,000,000 
 
 2,735,000 
 
 3,964,000 
 
 38,447,000 
 
 10,000,000 
 
 5,000,000 
 
INVESTMENT SECURITIES, 
 
 79 
 
 Union Pacific 1st 6's. 
 
 189G, 
 
 1897, 
 
 « " 1898, 
 
 1899, 
 
 Land grants 7's 1888-'89, ' 
 
 Sinking fund 8's 1893, ) 
 
 Registered 8's 1893, S 
 
 Collateral trust 6's 1908, 
 
 5's... 1907, 
 
 Kansas Pacific 1st 6's 1895, 
 
 1st 6's 1896, 
 
 Denver Division 6's assented 1899, 
 
 1st consolidated 6's 1919, 
 
 Central Branch U. P. F'd coup. 7's. .1895, 
 
 Atchison, Col. & Pacific 1st 6's 1905, 
 
 Atchison Jew'l Co. & W. 1st 6's 1905, 
 
 Oregon Short Line 1st 6's 1922, 
 
 Utah Southern Gen'l mortgage 7's. .1909, 
 
 Extension 1st 7's 1909, 
 
 Missouri Pacific 1st consolidated 6's, 1920, 
 
 3d mortgage 7's 1906, 
 
 Pacific Railway of Mo. 1st mort. 6's, 1888, 
 
 2d mortgage 7's 1891, 
 
 Verdig's Valley, Ind. & W. 1st 5's.. .1926, 
 Leroy & City Val. Air Line 1st 5's. .1926, 
 St. L. & San Fran. 2d 6's, class A. . .1906, 
 
 6's, class C 1906, 
 
 6's, class B 1906, 
 
 1st 6's Pierce C. & 0. branch 
 
 Equipment 7's 1895, 
 
 General mortgage 6's 1931, 
 
 5's 1931, 
 
 South Pacific R. of Missouri 1st 6's. 1888, 
 
 Amount. 
 27,229,000 
 
 1,270,000 
 
 14,348,000 
 
 4,423,000 
 
 5,583,000 
 
 2,240,000 
 
 4,063,000 
 
 6,242,000 
 
 13,855,000 
 
 630,000 
 
 3,672,000 
 
 542,000 
 
 14,931,000 
 
 1,950,000 
 
 1,950,000 
 
 20,184,000 
 
 3,328,000 
 
 7,000,000 
 
 2,573,000 
 
 750,000 
 
 520,000 
 
 500,000 
 
 2,400,000 
 
 2,766,500 
 
 1,090,000 
 
 650,000 
 
 7,732,000 
 
 5,000,000 
 
 7,144,500 
 
i8o APPENDIX. 
 
 Amount. 
 
 Kansas City & S. W'n 1st 6's gold.. .1916, 744,000 
 
 Ft. S'th & Van B. Bdg. 1st 6's 1910, 475,000 
 
 St. Louis, Kan. & S. W'n 1st 6's 1916, 735,000 
 
 Texas & Pacific Railway 1st 6's 1905, ) „ „^. ^^^ 
 
 Ex. coupon ) ' ' 
 
 Consolidated 6's, trust receipts 9,316,000 
 
 Inc. Land Grant Asst'd trust receipts 7,992,000 
 
 R. G. 6's 1930, trust receipts 13,028,000 
 
 General Mort. & T. trust receipts 2,859,000 
 
 Pennsylvania Railroad Company. 
 
 Pennsylvania Co.'s guar. ^ 1st coup., 1921, \ ^k qqa qqq 
 
 Regular 1921,) ' ' 
 
 Pittsburg, Chicago & St. Louis 1st coup. 
 
 7's 1900, 2,706,000 
 
 1st regular 7's 1900, 4,157,000 
 
 2d 7's 1913, 2,500,000 
 
 Pitts., Fort Wayne & C. 1st 7's 1912, 5,250,000 
 
 2d 7's 1912, 5,160,000 
 
 3d rs 1912, 2,000,000 
 
 Clev. & Pittsburg Cons. S. F. 7's. . . .1900, 2,292,000 
 
 4th sinking fund 6's 1892, 1,105,000 
 
 St. L., V'a & T. H. 1st gtd 7's 1897, 1,899,000 
 
 2d 7's 3898, 1,000,000 
 
 2d guaranteed 7's 1898, 1,600,000 
 
 Phil. & Reading Inc. M. Coupon 7's.. .1896, 
 
 Trust receipts [■ 10,000,000 
 
 4th assessment paid 
 
 Debenture coupon 6's 1893, 
 
 Trust receipts \ 670,500 
 
 4th assessment paid 
 
 Debenture convertible 7's 1893, 
 
 Trust receipts \ 10,395,900 
 
 4th assessment paid 
 
 I 
 
INVESTMENT SECURITIES. i8i 
 
 Amoant. 
 Phil. & R. Preferred 1st series con. 5's 1922, ^ 
 
 Trust receipts V 6,000,000 
 
 4th assessment paid * 
 
 2d assessment 5's 1933, \ 
 
 Trust receipts T 5,000,000 
 
 4th assessment paid ) 
 
 Pine Creek Railway 6's of 1932, 3,500,000 
 
 Pittsburg, Cleveland & Tol. 1st 6's. . . .1922, 2,400,000 
 
 Pittsburg Junction 1st 6's 1922, 1,440,000 
 
 Pittsburg, McKeesp't & Y. 1st 6's. . . .1932, 2,250,000 
 
 Rome, Wat. & Ogdensburg 1st 7's 1891, 1,021,500 
 
 Consolidated 1st extension 5's 1922, 6,337,000 
 
 Rochester & Pittsburg 1st 6's 1921, 1,300,000 
 
 Consolidated 1st 6's 1922, 8,920,000 
 
 Richmond & Alleghany 1st 7's.. 1920, \ 
 
 Trust Company receipts [• 5,000,000 
 
 Stamped. ) 
 
 Richmond & Danville cons. g. 6's 1915, 6,000,000 
 
 Debenture 6's 1927,^ 4,000,000 
 
 Extension coupon ) 
 
 Con. mortgage gold 5's 1936, 1,500,000 
 
 Atlanta & Char. 1st preferred 7's. . . . 1897, 500,000 
 
 Atlanta & Charlotte Inc 1900, 750,000 
 
 Richmond & W. P't Ter'l Trust 6's. . .1897, 8,500,000 
 
 San A. & Arans Pass 1st g. 6's.. .1885-1916, 1,750,000 
 
 1886-1926, 2,598,000 
 
 Scioto Valley 1st consolidated 7's 1910, ) ^m qqq 
 
 Coupons off ) ' 
 
 St. Joseph & G'd Island 1st 6's 1925, 7,000,000 
 
 St. Louis & Iron Mountain 1st 7's 1892, 4,000,000 
 
 2d 7's 1897, 6,000,000 
 
 Arkansas Branch 1st 7's 1895, 2,500,000 
 
 Cairo & Fulton 1st 7's 1891, 7,555,000 
 
1 82 APPENDIX. 
 
 Amount. 
 
 Cairo, Arkansas & T. 1st 7's 1897, 1,450,000 
 
 Gen. con. railroad & land-grant 5's, 1931, 38,201,000 
 
 St. Louis, Alt'n & T. H'te 1st 7's. . . . 1894, 2,200,000 
 
 2d mortgage preferred 7's 1894, 2,800,000 
 
 2d mortgage inconvertible 7's 1894, 1,700,000 
 
 Belleville & S. Ills. Railway 1st 8's. . 1896, 1,041,000 
 
 Belleville & Carond't 1st 6's 1923, 485,000 
 
 St. Louis, Ark. & Tex. 1st certi. 6's. . . . 1936, 12,870,000 
 
 2d certificates 6's 1936, 11,804,000 
 
 St. Paul, Minn. & Manitoba 1st 7's 1909, ) . ^^^ ^^ 
 
 Small ) ' ' 
 
 2d 6's 1909, 8,000,000 
 
 Dakota extension 6's 1910, 5,676,000 
 
 1st consolidated 6's 1933, 
 
 Registered. I 33^444^000 
 
 Reduced to 4^ s , 
 
 Registered 
 
 Minneapolis Union 1st 6's 1922, 2,150,000 
 
 St. Paul & Duluth 1st 5's 1931, 1,000,000 
 
 South Carolina Railway 1st 6's 1920, 5,000,000 
 
 2d 6's 1931, 1,500,000 
 
 Shenandoah Valley 1st 7's 1909, ) ^ ^^^ ^ „ 
 
 Trust Company receipts ) ''^ ' 
 
 General mortgage 6's 1921, ^ 4-110 oOO 
 
 Trust receipts S ' ' 
 
 Sodus Bay & S. 1st 5's gold 1924, 500,000 
 
 Texas Central 1st sinking fund 7's ... . 1909, 2,145,000 
 
 1st mortgage 7's 1911, 1,254,000 
 
 Texas & New Orleans 1st 7's 1905, 1,620,000 
 
 Sabine Division 1st 6's 1912, 2,075,000 
 
 Tol. & Ohio Central 1st gold 5's 1935, 3,000,000 
 
 ToL, Peoria & Western 1st 7's 1917, ) 4 5QA aaq 
 
 Trust Company receipts. 
 
INVESTMENT SECURITIES. 183 
 
 Amount. 
 
 Tol., Ann A. & N. Michigan 1st 6's. . . 1924, 2,120,000 
 
 Tol., Ann Arbor & G. T. 1st 6's gold. .1921, 1,260,000 
 
 Tol., St. L. & Kansas City 1st g. 6's. . .1916, 2,000,000 
 
 Val'y Railway Co. of 0. Con. gold 6's.. 1921, 1,700,000 
 
 Virginia Midland mortgage Inc. 6's . . . 1927, 604,000 
 
 General mortgage 5's 1936, 3,717,000 
 
 Wabash, St. L. & Pac. gen'l mort. 6's, 1920, ) ^^ ^^^ ^^^ 
 
 Trust Company receipts ) 
 
 Chicago Division 5's 1910, 4,500,000 
 
 Havana Division 6's 1910, 1,600,000 
 
 Indianapolis Division 6's 1921, 2,275,000 
 
 Detroit Division 6's 1921, 2,052,000 
 
 Cairo Division 5's 1931, 3,857,000 
 
 Wabash Railroad mortgage 7's . . 1879-1909, 2,000,000 
 
 Tol. & Wabash 1st extended 7's 1890, 3,400,000 
 
 1st St. Louis Division 7's 1889, 2,700,000 
 
 2d mortgage extended 7's 1893, 2,500,000 
 
 Equip, bonds 7's 1883, 600,000 
 
 Consolidated convertible 7's 1907, 2,600,000 
 
 Great Western 1st mortgage 7's 1888, 2,500,000 
 
 2d mortgage 7's 1893, 2,500,000 
 
 Quincy & Tol. 1st mortgage 7's 1890, 500,000 
 
 Hannibal & Naples 1st 7's 1909, 500,000 
 
 111. & So. Iowa 1st extension 6's 1912, 300,000 
 
 St. L., K., N. R'l Est'e & R. 7's 1395, 3,000,000 
 
 Clarinda branch 6's 1919, 264,000 
 
 St. Chas. B'ge 1st 6's 1908, 1,000,000 
 
 Northern Missouri 1st mortgage 7's, 1895, 6,000,000 
 
 Wab., St. L. & P. Iowa trust receipts 2,269,000 
 
 West Shore 1st mortgage 4's guaranteed. . . ) ^^ ^^^ ^^^ 
 
 Registered ) 
 
 Western Union coupon 7's 1900, ) „ qqq qqq 
 
 Registered ) 
 
[84 APPENDIX. 
 
 Amount. 
 
 Northwestern Telegraph 7's 1994, 1,250,000 
 
 Wheeling & Lake Erie 1st 5's 1926, 3,000,000 
 
 Mutual Union Telegraph Sk'g F. 6's. .1911, 5,000,000 
 
 Man. B. Improvement Co. limited 7's.. 1909, 1,000,000 
 
 Colorado, C'l & I'n 1st construction 6's, 1900, 3,500,000 
 
 Tenn. Coal, Iron & R. Con. 6's 1901, 620,000 
 
 South Pittsburg 1st 6's 1902, 720,000 
 
 Bir. Division 1st Con. 6's 1917, 4,000,000 
 
 Col. & Hock'g Coal & Iron 6's g 1917, 1,000,000 
 
 \ 10,500,000 
 
 Income Bonds. 
 
 Atlantic & Pac. W'n Division Inc 1910, 
 
 Small 
 
 Central Division Inc 1922, 2,100,000 
 
 Central Iowa coupon debenture certificates. 620,000 
 
 Chicago & Eastern Illinois income 1907, 1,000,000 
 
 Des M's & Fort D. 1st Inc. 6's 1905, 1,200,000 
 
 Det., Mack. & Marquette Inc 1921, 1,500,000 
 
 Elizabeth City & Nor. 2d Inc 1970, 1,000,000 
 
 G. Bay, W. & St. Paul 2d Inc 1911, 3,781,000 
 
 Ind., Bl'n & W. Cons. Inc. trust receipts. . . 4,560,000 
 
 Ind's, Decatur & Sp'd 2d Inc 1906, 
 
 m , n • . ( 2,850,000 
 
 Trust Company receipts ) 
 
 Lehigh & W. B're Coal Company 1888, ) ^-,-,0900 
 
 Small bonds 1888, i" ^'^^'^''"^^ 
 
 Mil., Lake Shore & Western Income 500,000 
 
 Mobile & Ohio 1st preferred debenture 4,763,000 
 
 2d preferred debentures 1,850,000 
 
 3d preferred debentures 600,000 
 
 4th preferred debentures 900,000 
 
 New York, Lake Erie & W'n Inc. 6's. .1977, 508,000 
 
 New York, Penn. & 0. 1st Inc. ace. 7's, 1905, 35,000,000 
 
 Ohio Central Min. Division Inc. 7's. . .1921, 300,000 
 
INVESTMENT SECURITIES. 185 
 
 Amount. 
 
 Ohio Southern 2d Income 6's 1921, 2,100,000 
 
 Og'b'g & Lake Champlain Income. . . . 1920, 800,000 
 
 Small.. 200,000 
 
 Kochester & Pittsburg Income 1921, 478,000 
 
 South Carolina Railway Income 6's. . .1931, 3,000,000 
 
 St. L., I. M. & S. 1st 7's preferred int. ae'e.; 348,000 
 
 Sterling Iron & Railway Ser's B. Inc. .1894, 418,000 
 
 Plain Income 6's 1896, 491,000 
 
 Sterling Mountain Railway Income. . .1895, 476,000 
 
 St. L., Alton & T. H. Division bonds. .1894, 1,357,000 
 
 St. Joseph & G'd Island 2d Income. . .1925, 1,680,000 
 
 Shenandoah Valley Income 6's 1923, 2,500,000 
 
 PHILADELPHIA STOCK-EXCHANGE. 
 
 Railroad Stocks. 
 
 Interest, 
 
 Atlantic & Pacific 100 
 
 Bell's Gap 50 
 
 Buffalo, New York & Philadelphia 50 
 
 Preferred 50 
 
 Common, assessment paid 50 
 
 Preferred, assessment paid 50 
 
 Camden & Atlantic 50 
 
 Preferred 50 
 
 Catawissa 50 
 
 1st preferred 50 
 
 2d preferred 50 
 
 Central of Xew Jersey 100 
 
 Clearfield & Jefferson 
 
 Delaware & Bound Brook 100 
 
 Denver & Rio Grande , . . 100 
 
i86 APPENDIX. 
 
 Interest. 
 
 East Pennsylvania 50 
 
 Elmira & Williams 50 
 
 Preferred 50 
 
 Harrisburg 50 
 
 Huntingdon & Broad Top Mountain 50 
 
 Preferred 50 
 
 Lehigh Valley 50 
 
 Little Schuylkill 50 
 
 Minehill 50 
 
 Nesquehoning Valley 50 
 
 Norfolk & Western 100 
 
 Preferred 100 
 
 Norristown 50 
 
 Northern Central 50 
 
 Northern Pacific 100 
 
 Preferred 100 
 
 North Pennsylvania 50 
 
 Oregon & Transcontinental 100 
 
 Pennsylvania 50 
 
 Philadelphia & Erie 50 
 
 Philadelphia & Reading 50 
 
 Preferred 50 
 
 St. Paul & Duluth 100 
 
 Preferred 100 
 
 Sunbury & Lewis 50 
 
 Texas & Pacific 100 
 
 United Companies of New Jersey 100 
 
 West Jersey , 50 
 
 West Jersey & Atlantic 50 
 
 Canal Stocks. 
 
 Chesapeake & Delaware , 50 
 
 Lehigh Navigation ., .o. . .„ 50 
 
INVESTMENT SECURITIES, 187 
 
 Interest. 
 
 Morris 100 
 
 Preferred 100 
 
 Schuylkill Navigation, preferred 50 
 
 Common 50 
 
 Railroad Bonds. 
 
 Allegheny Valley, regular 7 3-10 
 
 Income 7 
 
 Baltimore & Ohio, E. Side 5 
 
 Belville Delaware, 1st 6 
 
 Consolidated 4 
 
 Bell's Gap, consolidated 6 
 
 Camden & Amboy, mortgage, coupon, 1889 6 
 
 Coupon, 1889 6 
 
 Catawissa, new 7 
 
 Camden & Atlantic, 1st 7 
 
 2d mortgage 6 
 
 Columbus & Cincinnati Midland 6 
 
 Connecting, 1st. . . 6 
 
 Clearfield & Jefferson 6 
 
 Delaware Railroad, 1st 6 
 
 Delaware & Bound Brook, 1st 7 
 
 East Pennsylvania, 1st 7 
 
 Easton & Amboy 5 
 
 Elmira & Western, 1st, 1910 6 
 
 Perpetual 5 
 
 Huntingdon & Broad Top, 1st, gold 7 
 
 2d, 1895 7 
 
 3d, consolidated, 1895 5 
 
 Ithaca & Athens, 1st 7 
 
 Lehigh Valley, 1st, coupon 6 
 
 1st, regular, 1898 6 
 
 2d, regular, 1910 ,..,.... 7 
 
188 APPENDIX. 
 
 Interest. 
 
 Lehigh Val. Consolidated mortgage, regular, 19^3.. 6 
 
 Consolidated mortgage, coupon, 1923 6 
 
 New Orleans Pacific, 1st, 1920 6 
 
 New York, Philadelphia & Norfolk, 1st. 6 
 
 Income 6 
 
 Norfolk & Western, new railroad, 1st 6 
 
 Debenture 6 
 
 General mortgage 6 
 
 Northern Central, general mort., "A," coup., 1926.. 5 
 
 • General mortgage, series " B " 5 
 
 General mortgage, coupon, 1904 , 6 
 
 Northern Pacific, general mortgage 6 
 
 2d, coupon or regular 6 
 
 North Pacific, 1st, 1896.. 7 
 
 General mortgage, coupon, 1903 7 
 
 General mortgage, regular, 1903 7 
 
 Debentures . . 6 
 
 Pennsylvania & New York C. & E., 1896 7 
 
 Eegular and coupon, 1906 7 
 
 'Pennsylvania, general, coupon, 1910 6 
 
 General, regular, 1910 6 
 
 Consolidated, regular, 1905 6 
 
 ' Consolidated, coupon, 1905 6 
 
 Consolidated, regular, 1919 5 
 
 Consolidated, coupon, 1919 5 
 
 Pennsylvania Company, regular, 1907 6 
 
 Eegular, 1920., 4^ 
 
 Coupon, 1920 4^ 
 
 Perkiomen, 1st, 1887. 6 
 
 Philadelphia & Erie, 2d, 1888 7 
 
 General mortgage, 1920 5 
 
 Philadelphia & Eeading, 1st series 5 
 
 Consolidated, 2d series 5 
 
INVESTMENT SECURITIES. 189 
 
 luterest. 
 
 1st, 1910 6 
 
 2d, coupon, 1S93 7 
 
 Improvement. 6 
 
 Consolidated, coupon, 1911 *? 
 
 Consolidated, regular, 1911 7 
 
 Consolidated, gold, 1911 6 
 
 General mortgage, gold, 1908 6 
 
 General mortgage, 1908 7 
 
 Philadelphia & Reading, income, coupon, 189G 7 
 
 Debenture 6 
 
 Scrip 6 
 
 Deferred income 6 
 
 Convertible adj. scrip, 1888 6 
 
 . New convertible, 1893 7 
 
 Var. coupons on 
 
 P. & R. C. & I., Var.., 7 
 
 Debenture , 7 
 
 Philadelphia, Wilmington & Baltimore, trust certi. 4 
 
 Pittsburg, Cincinnati & St. Louis, coupon 7 
 
 Regular, 1900. 7 
 
 Sham. Valley & Pott., coupon 7 
 
 Sham. Sun. & Lew 5 
 
 Shenandoah Valley, 1st.. . ... ....... 7 
 
 General mortgage 6 
 
 Steub. & Ind., 1st, coupon.. 5 
 
 Sunb. & Lewist., 1st 7 
 
 Sun., Haz. & W., 1928 5 
 
 2d, 1938 6 
 
 Texas & Pacific, 1st, gold, 1805 6 
 
 1st, R. G. Division, 1930 6 
 
 Consolidated, gold, 1905 6 
 
 Union & Titusville, 1st, 1890 7 
 
 United New Jersey, consolidated. , 6 
 
ipo APPENDIX. 
 
 Interest. 
 
 United New Jersey, General mortgage , . 4 
 
 Warren & Farnsworth, 1st, 1896 7 
 
 West Chester, consolidated, 1891 7 
 
 West Jersey, 1st, 1896 6 
 
 1st, 1899 7 
 
 West Jersey & Atlantic, 1st, 1910 6 
 
 West Pennsylvania, 1st, 1893 6 
 
 Pittsburg Branch, coupon, 1896 6 
 
 West Shore, guaranteed 4 
 
 Canal Bonds. 
 
 Chesapeake & Delaware, extend 5 
 
 Lehigh Navigation, extend 4^ 
 
 Convertible, gold, 1894 6 
 
 Railroad loan, 1897 6 
 
 Gold, 1897 6 
 
 Consolidated mortgage, 1911 7 
 
 General mortgage, 1924 4} 
 
 Greenwood Tract 7 
 
 Pennsylvania, mortgage, 1910 6 
 
 Schuylkill Navigation, 1st, 1897 6 
 
 2d, 1907 6 
 
 Boat loan 7 
 
 Boat loan 6 
 
 Susquehanna, 1918 6 
 
 BOSTON STOCK^EXCHANGE. 
 
 Railroad Stocks. 
 
 Atlantic & Pacific 100 
 
 Atchison, Topeka & Santa Fe 100 
 
 Boston & Albany 100 
 
INVESTMENT SECURITIES. 191 
 
 Interest, 
 
 Boston, Concord & Montreal, preferred 100 
 
 Boston & Lowell 100 
 
 Boston & Maine 100 
 
 Boston & Providence 100 
 
 California Southern 100 
 
 Central Iowa 100 
 
 2d preferred 100 
 
 Central Massachusetts 100 
 
 Preferred 100 
 
 Cheshire, preferred 100 
 
 Chicago, Burlington & Quincy 100 
 
 Chicago, Burlington & Northern 100 
 
 Chicago & Eastern Illinois 100 
 
 Chicago & West Michigan ... 100 
 
 Cincinnati, Sand. & Cleveland 50 
 
 Cleveland & Canton 100 
 
 Preferred.., 100 
 
 Col., Spring. & Cincinnati 
 
 Concord 50 
 
 Connecticut & Passumpsic 100 
 
 Connecticut River 100 
 
 Consolidated of Vermont, preferred 100 
 
 Detroit, Lansing & Northern , 100 
 
 Preferred 100 
 
 Dayton & Ironton, preferred 
 
 Eastern (Massachusetts) 100 
 
 Preferred 100 
 
 Eastern in New Hampshire 100 
 
 Fitchburg preferred 100 
 
 Flint & Pere Marquette 100 
 
 Preferred 100 
 
 Fort Scott & Gulf 100 
 
 Preferred 100 
 
192 APPENDIX, 
 
 Interest. 
 
 Iowa F. & Sioux City 100 
 
 Kansas City, Springfield & Memphis 100 
 
 Kansas City, Memphis & Birmingham 
 
 Kansas City, Clinton & Springfield 100 
 
 Little Rock & Fort Smith 100 
 
 Louisville & Missouri Eiver 100 
 
 Maine Central 100 
 
 Manchester & Lawrence 100 
 
 Marquette, Houghton & Ontonagon. 100 
 
 Preferred 100 
 
 Mexican Central. , 100 
 
 Nashua & Lowell 100 
 
 New York & New England 100 
 
 Preferred 100 
 
 Northern, New Hampshire 100 
 
 Norwich & Worcester 100, 
 
 Ogdensburg & Lake Champlain 100 
 
 Old Colony 100 
 
 Philadelphia, Wilmington & Baltimore 50 
 
 Portsmouth, Great Falls & Conway 100 
 
 Portland, Saco & Portsmouth 100 
 
 Pullman Palace Car. 100 
 
 Ilevere Beach & Lynn 100 
 
 Rutland 100 
 
 Preferred 100 
 
 Summit Branch 50 
 
 Toledo, Cincinnati & St. Louis 50 
 
 Union Pacific, 100 
 
 Vermont & Massachusetts 100 
 
 Wisconsin Central 100 
 
 Preferred 1 00 
 
 Worcester, Nashua & Rochester 100 
 
INVESTMENT SECURITIES. 193 
 
 Railroad Bonds. 
 
 Interest. 
 
 Atchison, Topeka & Santa Fe, plain, 1920 5 
 
 Trust 6 
 
 Collateral trust 5 
 
 Atlantic & Pacific, 1st 4 
 
 Income, 1910 6 
 
 Central Division, 1st 6 
 
 Boston & Maine 7 
 
 Boston & Albany, not mortgaged 7 
 
 Burlington & Missouri River, land grant 7 
 
 In Nebraska, non-exempt, 1st 6 
 
 In Nebraska, exempt, 1st 6 
 
 In Nebraska, 1910 4 
 
 Cedar Rapids & Missouri River 7 
 
 Chicago, Burlington & Quincy, Denver Division 4 
 
 1st, 1903 7 
 
 Southwestern Division 4 
 
 Sinking fund 5 
 
 Plain bonds 4 
 
 Debentures 5 
 
 Chicago, Burlington & Northern 5 
 
 Debenture 6 
 
 Chicago, Milwaukee & St. Paul, Western Division. . 6 
 
 Dubuque Division 6 
 
 Chicago & Eastern Illinois, consolidated 6 
 
 Chicago, Kansas & Western 5 
 
 Incomes 
 
 Chicago & West Michigan 5 
 
 Cincinnati, Sandusky & Cleveland, 1st 7 
 
 Columbus, Springfield & Cincinnati 7 
 
 Connecticut & Passum, 1st 7 
 
 Consolidated Railroad of Vermont 5 
 
 17 
 
194 APPENDIX. 
 
 Interest. 
 
 California Southern, income 6 
 
 1st, 1926 6 
 
 Detroit, Lansing & Northern, 1st 7 
 
 Dixon, Peoria &H 8 
 
 Eastern, 1906 6 
 
 Fort Scott, S. E. & M. 7 
 
 Fort Scott & Gulf, 1st 7 
 
 Equipment 6 
 
 Fremont & Elk Horn 6 
 
 Iowa Falls & Sioux City 7 
 
 Illinois Grand Trunk 8 
 
 Kansas City & Camden 10 
 
 Kansas City, Topeka & Western, 1st 7 
 
 Kansas City, Em. & Southern, Gulf 7 
 
 Kansas City, Lawrence & Southern, 1st 6-5 
 
 Kansas City, Memphis & Birmingham. 5 
 
 Kansas City, Clinton & Springfield 5 
 
 Kansas City, Springfield & Memphis 6 
 
 Kansas City, St. Joseph & Council Bluffs, 1st 7 
 
 Leavenworth, Topeka & Southwestern 4 
 
 Little Rock & Fort Smith, land grant, 1st 7 
 
 Maine Central, 1913 7 
 
 Marion & McPher 7 
 
 Marquette, Houghton & Ontonagon 6 
 
 1st mortgage, 1923 6 
 
 1925 6 
 
 Mexican Central, 1911 7 
 
 Income 3 
 
 Scrip 
 
 Debenture 10 
 
 New assessment 4 
 
 Bond scrip 
 
 New York & New England, 1st 6 
 
INVESTMENT SECURITIES. 195 
 
 Interest. 
 
 New York & New England, 1st, 1905 7 
 
 2d mortgage 6 
 
 2d mortgage, scaled 3-5 
 
 New Mexico & Southern Pacific, 1st 7 
 
 Northern Pacific, 1st 6 
 
 P. d'O. Division 6 
 
 2d mortgage coupon 6 
 
 Ogdensburg & Lake Champlain, 1st 5 
 
 Consolidated, 1920 6 
 
 Income, 1920 3-6 
 
 Oregon Railway & Navigation Company 7 
 
 Consolidated, gold 5 
 
 Oregon Short Line 6 
 
 Portsmouth, Great Falls & Camden ^ 
 
 Pueblo & Arkansas V., 1st 7 
 
 Republican Valley 6 
 
 Rutland, 2d mortgage, equipment 5 
 
 1st mortgage 6 
 
 St. Louis, Kansas City & Southwestern 6 
 
 Sonora, 1st 7 
 
 South Kansas 5 
 
 Incomes 
 
 Southern Kansas & Western, 1st 7 
 
 Union Pacific, 1st, gold 6 
 
 Sinking fund, 3d mortgage 8 
 
 Wisconsin Central, 2d series 7 
 
 1st series 5 
 
 Wisconsin Valley, 1st 7 
 
 Worcester, Nashua & Rochester 5 
 
196 APPENDIX. 
 
 BALTIMORE STOCK-EXCHANGE. 
 
 Railroad Stocks. 
 
 Interest. 
 
 Atlanta & Charleston 100 
 
 Baltimore & Ohio 100 
 
 1st preferred 100 
 
 2d preferred 100 
 
 Canton Co 100 
 
 Central Ohio 50 
 
 Preferred 50 
 
 Cincinnati, Washington & Baltimore 100 
 
 Preferred , 100 
 
 Charlotte, Columbia & Augusta 100 
 
 Columbia & Greenville, preferred 100 
 
 Georgia Pacific 
 
 Northern Central 50 
 
 Parkersburg Branch 50 
 
 Petersburg 100 
 
 Pittsburg & Connellsville 
 
 Richmond, York River & Chesapeake 
 
 Virginia Midland, 1st preferred 100 
 
 Common 100 
 
 Wilmington, Columbia & Augusta 100 
 
 Wilmington & Weldon 100 
 
 Western Maryland 50 
 
 Railroad Bonds. 
 
 Atlanta & Charleston, 1st mortgage 7 
 
 Incomes 6 
 
 Baltimore & Ohio, East Side, 1st 5 
 
 Baltimore & Ohio, extended 4 
 
 Gold 5 
 
INVESTMENT SECURITIES. 197 
 
 Interest. 
 
 Baltimore & Potomac, 1st 6 
 
 Tunnel 6 
 
 Cape Fear & Yadkin Valley, 1st 6 
 
 Central Ohio, 1st, 1890 6 
 
 Charlotte, Columbia & Augusta, 1st 7 
 
 2d 7 
 
 Cincinnati & Baltimore 7 
 
 Cincinnati, Washington & Baltimore, 1st 4^ 
 
 2d 5 
 
 3d 3 
 
 Income 5 
 
 Columbia & Greenville, 1st 6 
 
 2d, 1926 6 
 
 Georgia Pacific, 1st, 1922 6 
 
 2d, income 6 
 
 Northern Central, general 4^ 
 
 Cur., 1900 6 
 
 Gold, 1900 6 
 
 Gold, 1904 6 
 
 Gold, 1926, Series A 5 
 
 Gold, 1926, Series B 5 
 
 Ohio & Mississippi, Springfield Division 7 
 
 2d 7 
 
 Consolidated sinking fund 7 
 
 General 5 
 
 Petersburg, Class A 5 
 
 Petersburg, Class B , .. . 6 
 
 Pittsburg & Con., 1st, 1898 7 
 
 Richmond & Danville, gold 6 
 
 1890. ....c 6 
 
 Piedmont Branch ... 8 
 
 Seaboard & Roanoke 5 
 
 Union Railroad, End. by Chattanooga Company. . . 
 
198 APPENDIX. 
 
 Interest. 
 
 Virgina Midland, 1st series 6 
 
 2d series 6 
 
 3d series 5-6 
 
 4th series 3-4-5 
 
 5th series 5 
 
 Virginia and Tennessee, 4th 8 
 
 5's 5 
 
 West Virginia Central, 1st 6 
 
 Western Alabama, 1890 8 
 
 West Maryland, 3d guaranteed by city 6 
 
 Western North Carolina, 1st, 1890 7 
 
 Consolidated 6 
 
 Wilmington, Columbia & Augusta, 1910 6 
 
 Wilmington & Weldon, new 5 
 
 THE END. 
 
 
 ^^r 
 
SCIENTIFIC PUBLICATIONS. 
 
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