Newspaper Page Text
.
Grave Dangers Are Faced in the
Many Flotations Caused by
.
War Business,
By B. C. FORBES.
I want to put investors and pros
pective investors on their guard.
All sorts of flotations—new com
panies, mergers, the incorporation
and overcapitalization of firms, ete,—
are being hatched.
A few already have made their ap
pearance,
Most of these new flotations are
more dangerous than. outright get
rich-quick swindles,
: They are cloaked in respectabil
s
And they possess, in many cases,
more or less merit,
But the majority are rankly specu
lative,
The promoters are gambling upon
greatly increased profits in future.
Prospectuses are based on boom
times,
Every concern being floated by the
public’s money counts upon great ex
pansion,
Danger of Overproduction.
One grave danger confronting this
coumrg before the present economic
cycle has run its course Is overpro
duction.
No doubt a number of recent and
of impending mining, industrial, mer
cantile and other stock promotions
will “make good.”
Gamblers who buy the shares when
first offered, may, in certain cases,
earn big profits,
But investors who want to be care
ful and conservative should heslitate
to take & leap In the dark.
The man or woman who has saved
A’ few hundred or a few thousand
dollars should not be carried away
hy promoters’ promises or fabulous
profits,
Shares offered at $1 or $5 or $lO
usually call for more scrutiny than
those sold at SIOO, although, of
course, there can be-—-and are—ex.
ceptions to this rule
Indeed, from what | learn, num
hers of sloo.ghare ventires are now |
being put through the financial mill
preparatory to flotation with a blare
of trumpets.
Demand for Options.
There is a keen demand for op
tions on well-knowngfirms or private
ly-controlled companies with a \ri'wl
to foisting them upon the publie at
capitalizations inordinately in excess
of assets and all reasonabie allow- |
ancs for good wiil
The time is coming when no pro.
moter will be allowed to float a com
pany by inv ~mx pulilic subscriptions
without first making & sworn declara- |
tion of the amount paid for the assets,
the amount allowed for good will, the
amount to be paid the rml
in short, without revealing to the
::Nh exactly and truthfully what is
Dp, veates. |
And severs penalties will be pro
vided for misrepresentation. |
Several Buropean countries have
practical laws 1o safeguard the pub
e against frasdulent, questionable |
or deceptive promotions
Conditions DiNerent Mere. |
Here any conecienceiess faker AN |
float a hole in the ground, & worthiess
invention, or any other contraption
calculated o separste the unwary
from their money.
The greatest danger pow In sight,
however, is not the flotation of lb-l
solutely hogus ventures, but the flo
tation of enterprises of sdme merit ot
capitalizations far in excess of reason
ord just-fication |
Conditions are ripe, or rigening, for
a deluge of such fotations. l
The country is flooded with meney.
Boom times have set in. Wages m‘
high. Confidence has no bounds. Se-
Surities have been scaring. Fertunes
have been made almost svernight in
“war stocks” n automebile shares,
i mariee seves and the ke |
And the speculative spirit which is
inharent in human nature s to-day
rampant
The New Genaration l
A mew generation of badding Anan
rin! Nagoleone n thelr own salithe -
tion-—are chafing 1o do spectacrular
things and make millions in & hurey
Most of thesn have hrales. Nat 3
fem have feeajevtahle Reghoisl oy |
nections. Bome are men of no ““"‘
‘nfuence
The sponsorehin of more than one
ventihe will he far fremm tenth rate
What the pablic must Bs sarned |
AEainst is bhe ng Wmisied linto IMAZIN- |
g that all Ithey have te do o deuble !
15elr money & o Huy ARy ew Mlark
g g 4 gt with & hureah
Lot me add that undoubiedly the
timne has arfived for the ofgan sation
of pombere of leqitimais anicrpriess |
1o take advantage of the rhanged and
rhanging conditione sniailed by Iho“
Paurogear ratar vem
f wonld not be mlsgnderetond (o
® Wmament s oavtioning 'Evestors
alsinst sountisnancing EVERY sew
PPt g Ehem Sreaghe oyt
Thare »11l %e reem fee pe-Mighie
investmant for esample, I progeriy
handisd satiomally eapitalised In }
Bgentigly fathered seganisationse is
sxtond Ameticar cpetailons In ofhes
Fegets e
Eduwcst wn to Noadod
Indend if the United Biates s Yo
ks firet place among e werid s
Aran il matisne i te WRperative ihgl
he ek and e of Amerioan Ine
Foutare he slocatad apse arpre-iat
g oppaet gnitime '+ T oroigr Ralte
THhie bomerer foame an adionel
fetecs Ry srery et iie Mear: be
ompioved by The steee amd by bomeet
barbare Wrohere o s save i»
Yantare framm the pitfalie whieh are
teing dug for them
'amnh Il nest e AN e
o far Srery doime AMEriGane can
s .
Lot wn ol jeim offarte, wo-'v: -
nn&.o Set ofa clerian a 7 4y
.. s hemare of sueetansh e
St ree
- ',
Kiss, Judge Decrees
FLYEIA NS e ¢ * w'r sy
o W A Swepedted e T ewied
Bhass boidar el b uhege e bgy
s macciage oakeed 8t e Pecligie
£ ospagp® P g e W 8 Tal eenedd
B allied Bl g A eadasarr had b
"~v‘¢o4 Megining 8 SErtiags Sesses
o® . s 'L . 'm * S onig® h o
¥3a eraave rs W aea @ik awm
ggd % A se e mw;’u':':
S SR » MaaaeE e e N
B
Flood of Gold To Be Turned
Loose in 1916, Says Banker
Woodruff,
BE. Woodruff, president of tha Trust
Company of Georgia, one of the city's
strongest financial institutions, yes
terday said to The Sunday American
that he expects investors to snap up
£ll the available high-class securities
at an early date and start on an end
less round of circulation the great
amount of gold that has poured into
this country from Europe.
“The results of the operation of the
Trust Company of Georgia are re
flected in its published statement cov
ering its business as closed December
31, 1915, declared Mr. Woodruff.
“This statement shows net earnings
of something more than 25 per cent
on the capital stock and a very sub
stantial increase in deposits, as well
as In cvery other branch of the busi
ness,
“This showing is especially gratify«
ing to the officers of the company, and
it is my personal opinion that there ie
every reason to believe that we are
entering into the greatest period of
industrial prosperity this country has
| ever known.
' “Already nearly every manufactur
ing plant in the United States is op
erating on full time and is offered
more business than it can take care
of, and the entire world is looking to
America to replenish its already de
pleted stocks of merchandise, result-
Ing in a flow of gold to this country
from évery nation on the globe, never
before anticipated .
“Confidence is being rapidly re
stored and investors are eagerly ab
{ sorbing all of the high-grade Ameri
; CAn securities of which the belliger
'fln' nations have been compelled to
{ dispose
i “1 have spent fmuch of my time dur
;tng the past three months in the
{ Ainanclal centers in the East, and have
| never seen such optimism displaved
iby al lasses of citizens and such
| favorable conditions for the des elog -
‘ment of the resources of the United
| States
‘ At no previous time has there besn
Ax much money in Atlanta banks as
i there is to-day It is the rare exce
| tion o discover a bank statement
| that does not show a healthy inc rease
|in deposits
“The securities of aur 1 2l Instity.
tions are In active demand Ax far
as | am able to learn. thes have all
| had a prosperous year. and thers hae
heen a substantial advance in the
| market value of securities dur ng the
| last €0 dave
i Such a condition of affalre. how
| over. is not without ts dangers as 1*
| tends 1o promote rank speculation
| which s & serious menace to our fu
| ture prosperity. and such sentiment
j-'.«— 3id be dis uraged by anl
Insurance Business
Good in Past Year
BY M. C. BAGLEY,
| Life inurance, except in its minor
&lu-u ean hardly be considered a
ir barometer of husiness conditions.
It has resched a period of develop
‘-:on-mununm-:cw con
tions. During periods of depression
and discouragement. the human mind
tarne more readily to others to do
for him what he has failed to do for
himself. while during periods of pros
perity the prudent husiness man finds
in life insurance the one safeguard
which protects his family and his
business against loss should he dle
before his plans are consummated.
| muutfllunmnm
hered business men In all lines
1t has been the confusion of prophets,
and only the unexpected has hap
pened. During this pertod life in
surance has proven its value by its
m::‘c m turn l:'m had the
support patronage business
world to an extent never before
equaied In its history
| uflrmm:mdmm--
Panies « Ihe years operations
e yol -nnalto. but advance infor
\utw the statement that
every old-line company has closed the
year with a larger volume of busl
e ;flfl‘l. iarger .:m-hld s
setn larger arger volume
iflmumm-‘mma
| ttatement applise gonerally 14
ifl',‘.’"”""""’""‘“,‘,"""‘"
vorabie
}mmulcmmmm
All of the artive general agencies in
the Htate quickly recoversd from (he
stagnation and depresston incldent to
The sarly monthe of the war. and mest
‘: them have writien business :.
oqual to thelr meost fa
vorable ftecord. Ihe
AMOUnt written In the Stale by 3
ke rombanies prolmbiy e
'm of any former yenr
Ahong o pehies Proper .
thon 18 the aetivily of their agents.
mmtmdchmz
a“{rmmuh
fop of al! the Niates in the Union
President of De Pauw
Favors War Training
aining of % mmectean pouthe of
E JM%‘&&E
l:; redent 80l & eTI oy
“We do wot have sdesuate W
'mfiwm'mw‘w“
'meo sohey of seevared:
- - 5 s
;m"-: ; u@“m'Mi
| S abshaied fest before the g amin g
of the h‘h‘w Am“tu
'Bold, Bad Burglars i
| Loot Police Imokerli
| pßEsse. cal. dos 1S A% even 2o
{(e ey o the sahen ~"'.‘."‘".m'(
B Noldemriers so ok ".é“
i ’:-n '::':\w- et SSI |
?flwflpm Boabiilei s Wee e o e |
::: Al SR Gt Spned Seguted By
lhv:.u‘?:‘:rmumtm
HEARST’'S SUNDAY AMERICAN. ATLANTA, GA., SUNDAY, JANUARY 2. 1916.
ettt ettt it e e —_— R R . .. A st —— oST
INSURANCE—-A MIGHTY BUSINESS FORCE
. Continued From Page 4. :
but it is not. Farm prosperity and farm conditions have a direct
‘effect upon all lines of business, especially insurance. When a
farmer makes money he buys insurance. And when he learns
efficiency and economy he learns the value of protection. Then
half of the work of the insurance salesman is done.
A recent survey of business conditions in Atlanta brought out
the fact that stocks of merchandise carried during the last four
months were more seasonable than at any time during the past ten
years. This may seem strange in view of the generally uputl
financial conditions. But it is not really so strange after al.lll
Merchants did not buy heavily—in fact, hardly at all—for months
after the European war began. They sold out their stocks and
refused to replenish. But during the fall season retail buying was
unprecedented.
Christmas business was the record for Atlanta. Every mer
chant was compelled to buy heavily to keep up with the mm‘
demand. Hep was a cause of insurance prosperity. l
When a merchant allows his stock to become depleted, he has
no use for insurance. But when demand forces him to fill up all
his shelves, he has to carry insurance of all classes. His bankm.f
the wholesalers and manufacturers with whom he does business
see to that. This increase of stocks has been another of the causes
which has brought prosperity to insurance men of Atlanta. |
As a prospect for insurance men during 1916, there is the
railroad work.
Railroads of the South have been enjoying unprecedented
prosperity during the past six or eight months. Not all of this
business—in fact, very little of it—came from war munitions. It
was general business created by the laws of supply and demand.
When railroads are making money they prepare to make
improvements and extensions. Southern railroads are no excep
tion. Millions of dollars will be spent during the coming twelve
months by railroads of the South for improvements. As a matter
of fact, much of the work is under way at present. The money
has been earned and is being appropriated and disbursed. {
Money has been flowing into the banks and deposits are on the
increase at a most satisfactory rate. There is mnow plenty of-]
money in banks for improvement work, for new construction andl
for extensions to established businesses. A year ago it was dif-‘
ferent. “Money went into hiding eighteen montbs ago. And it
stayed there for many months. Loan companies refused to puv
their money into anything, no matter what the class of muruyi
or the rate of interest. It's different now.
Now the money lender is seeking the borrower. Money, to!
be of advantage to its owner, must be put to work. So the money
owners are seeking the money users. '
Loan companies which practically withdrew from the Atlanta
field at the opening of the European war are now back in tbol
'market. This presages a period of development. And dcnlqp-%
ment means business for the insurance man. 1
One of the most telling conditions in insurance to.day is the
repayment of loans made on policies by policyholders. |
When the business pinch came, policyholders—mostly of thol
salaried class—made loans on their insurance. One insurance au
thority has stated that fully 90 per cent of all these loans has been
repaid. |
’ The very fact that these loans have been paid is a lesson in it
self. First, it shows that personal economy has been learned. But
lgmut still is the lesson that owners of insurance have at all times
a real and tangible asset which may be converted into cash at a
moment’'s notice. Whenever a &cnon learns personal economy and
| the value of tangible, convertible assets, he has learned the value
‘of life insurance. : |
Imul:uunoo is the only practical safeguard against life's uncer- |
{ Twenty million people in the United lumhaneomu{,
indiuthh‘mt mthg'hcypay upward of a billion dollars cach |
year zruhn—hvumuu in protection. |
| in return they get freedom from fear of loss—whether
through fire, burglary, sccident or sickness—and are saved the
sickening apprehension of want in many of its forms. i
. The man who insures his life, for instance, robs death of its
only real terror—the possible privation of the loved left be- |
‘hind. At the same time, if he chooses, Inukutnnn‘rlhtvm‘
‘make him financially comfortable in later years. c
| And more than that: He provides himself with a business as.
et of no minor importance—an asset upon which many fortunes
have been based. |
| Life insurance insures confidence, confidence begets credit, and
credit makes profit, |
| ““Twenty years ago,” 1o quote & famous merchant, ‘I had &
capital of half & milion dollars. I then realized that & businesss
‘man with half a million dollars of capital and a million and half
‘dollars invested in insurance on his life. would have better credit
than one with half a million dollars capital and no insurance. 8o 1
took insurance. Inow find that trading on the credit of this tnsur
jance bas made far greater profits than had I used the amount 1
paid in premiums directly in my business '’
Oredit, therefore, is one of the tangible advantages of insur.
ance
Bankers, before they will m%huhuywflul.u
B B . ee e
y o o , m
carry heavy insurance A“nhshmmmmy
o & merchant who did not carry insurance on his stock. The bank.
or knows the value of protection. It is his duty to protect his loans
&mp‘d&ny.mm,bymmwm;m!w%
| Protection—freedom from fear of los—this is the basie prinel.
'k of insurance ;
hwlmfmhmhlhnbmmh’
which place when Atlanta was making its sucoessful effort to
gt the Regional Bank of the Federa! Reserve Banks. «
Mthl.r&n Atianta 1t was brought out that an aggregate
of over §30.000.000 passed through the city annually on sccount of
mtammwmmhmlhb When
these astounding x:o were placed before the commities there
:nh.nuq L selocting Atlanta a¢ the Regional Bank
l ’MAM‘ibmmmhnmmm; bring the
Regional Bank here Mhnmfllyht‘rhh&ummy
| Through the good offices of ineurance men willions of dollars have
;hu loaned for improvements here lmm business ability, At
lanta’s insurance men have ereated od for office buildings,
ihrhu;m M&fm the money with lh’:.mtnm com
'panies to construct buildings. Property va were increas
idn Prosperity was created .
‘ To no clams of business men does Atlanta owe more for her
pn:;v-m: 1o the insurance men And in patroniring them . that
|is, by taking libers! insurance--the patron is doing himself the
mM He is protecting bimeelf and heaping up assets,
sccident insurance. burglary insurance or any other
| whether he buy life insurance, fire insurance, hoalth insurance. se
cidert ‘::::u«l;.huhn insurance, :;9 Aty mm kind of inewr
arce i prot himeoll against ealest of
:3»- pretecting agnl e sl
Every Branch of Industry in South
i Al .
Thriving and Agencies
Are Prospering. .
BY ARTHUR HOWELL,
Of Aaron Haas, Son & Howell,
Insurance is one of the real barom
eters of general trade conditions.
When the insurance man is prosper
ous, It is indicative that general busi
ness Aa prosperous. We insurance
men depend upon other business for
our existence,
I can truthfully say that 1916 looms
large with prospects for business
Prosperity is at hand, In every line
of business.
Our own business has shown an in
crease of nearly 25 per cent during
the last three months over the same
period of 1914. For the entire year,
the increase will be about 10 pér cent.
This in face of the fact that a part
of 1915 was dull to the point of stag
nation, !
Farmers.of the South have learned
a great lesson from the European
war., That lesson is the diversifying
of crops. When farmers depend sole
ly upon one crop, and that crop falls
through any cause, the farmer suf
fers. Southern farmers are ralsing
many more crops than cotton, al
though cotton is, and probably alwavs
will be, the mainstay of the Southern
farmer/ As long as cotton remalns
above ten cents, the Southern farmer
will be prosperous.
During 1915 merchants allowed
their stocks to become depleted. They
did not want to buy, for they could
not guite figure out what the future
Was to be. What they bought was
from necersity. Now, with these
stocks depleted, necessity is forcing
merchants to buy heavily. And the
best part of it all is that the public
is buying heavily, but not foolishly or
extravagantly, in ltke proportion to
the merchants. This means business
for the insurance man
The lumber industty of South Geor
gin I 8 In better condition right now
than for a long time past. There is &
real demand for ruu&h lumber all
over the Bbuth. Shingle mills are
eanecially active
The Southern Railway and the Sea.
board Air Line are to expend millions
of dollars In improvement work dur
ing 1916, This Is not merely a plan
in the making. The money has been
appropriated and s being spent right
now, One Atlanta firm has a contract
for 3500000 worth of work Here
again is a source of prosperity for
the insurance man,
Automobiles are being purchased
frealy No better evidence of pros
perity could be found than the buy
ing of autos. Peaple do not put the!r
money into machines when times are
hard
There is any quantity of money for
bullding, providing the bullder can
show a flecessity for the structure
The bhooming promoter Is exempted
This is the best Indieation of pros
perity And it shows that business
conditions are healthy
1 could enumerate & hundred In.
stances of prosperity SBufice It 10
say, that business is gnod and in get.
ting bLetter every day I feel that
1918 is going 1o be Atlanta's hest yenr
PURITY BAKERY,
51 CARNEGIE WAY
The very best of Bread, Rolls, Cakes and Pies.
Our Goods are made by masters of the bakery trade.
ATI we ask is a trial, and you will become a Purity Booster,
PROMPT DELIVERY.
Atianta Phone 1897, 51 Carnegie Way
Buckhead Drug Co.
Cold Drinks Lunches
Gives S. & H. Green Slam.
With CASH PURCHAS&
T L. DAVIDSON .6
el ST 1 FACY 20.ERCS RSN METS nd S
WE DELELIVER
Stone’s Cakes, 6 Varieties, 10c
U, S, BREAD, TIP-TOP BREAD,
w.s.sclmw.usc
BLOCK'S CRACKERS
H.H ARNOLD
GROCERIES - HAPEVILLE, GA.
Stone’s Cakes, 6 Varieties, 10c¢
o & ToTe ol B
MA....'....:.LJ‘ ‘§¢ : lo“ S 'M.S_c
BLOCK'S CREMONA CREAMS
EAGLE PRESSING CLUB
HOLLING & MOODY, Props.
In Rear of Coliege Park Pharmacy
DRY CLEANING
Ladies’ Suits, 75¢ Men's Suits, 75¢
ALL WORK GUARANTEED
Called for and Delivered Promptly
Six Suits Sponged and Press:d SI.OO
CALL E. P. 100
s ¥ - e
The Penn Mufual Life
Insurance Company
Bagley & Wlllet, Gen.Agts.
WANTED:—
1] & In every town and villagc. where
(4 we are not already actively repre
-41 it sented, a reliable business man, who
111 can give the whole or a portien of
1 his time. as local agent for The
i Penn Mutual Life Insurance Com
-111 pany. Previous insurance experi
ence dcsira‘)lc but not ecssential.
‘ Full information and instructions
by mail. Auistance of spccia]
’ agent from this office upon request.
BAGLEY & WILLET
GENERAL AGENTS
Fourth National Bank Bui]ding
ATLANTA. GA.
H. &E. L. Byrd Grocery Co. !;;
We Give 8. & H. Green Trading Stamps With All
Cash Purchases. ;
361 Peters Street. ____Atlanta Phone 2094
_____Stone's Cakes—§ Varioties—loc. &
N . 5c ,Loaf ceeeseeesca scwa
BLOCK'S KENNESAW BISCUIT_THE
PERFECT SODA CRACKER. .
JIM PRATTIS GEO. PEFINIS gfi
. - - *1
Prattis & Pefinis
CANDIES, SOFT DRINKS,
CIGARS AND PERIODICALS
Give 8. &H. Green Stamps and Hapilton Coupons, :
Bell Phone Main 4508 ?
Bell Phone Main 9161 17 & BROAD STREET, {
Atlanta Phone 4308 ATLANTA, GA.
Atlanta Phone 247 -
The Best Made ;
FROM SELECT HOME GROWN CORN
The corn i+ thoroughly cleaned by improved cleaning methods,
which take out the fauity grains, corn silks, pieces of cob, and
the dust and dirt that usually get into the mmal '
The corn is then ground in & set of old-fashioned Esophiug
stones. the large:t and the heaviest made. running at A slow and
sleady speed which insares the very best quality of meal .
Peerioss Meal is sold under a positive guaranies 1o be the “
made. It will cost you a litthe more than & cheap meal, but it fe
worth more. Cive i & trial ¥
If your grocer ean't supply you WRITE FOR PRICES. :
W. E. TUGGLE
STONE'S CAKES (~5%,,) 10¢
o™ €46G|| 11 for BREAD: Go
’ ,
BLOCK'S CRACK“‘J
ALWAYS FRESH
5