Newspaper Page Text
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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
ty.
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 hesitate
to take a leap in the dark.
The man or woman who has saved
&' few hundred or a few thousand
dollare should not be carried away
by 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
bers of sloo.share ventiures are now
being put through the financial miil
preparatory to flotation with a blare
of trumpets.
Demand for Options.
There is a keen demand for op
tions on well-known firms or private
ly-controlled companies with a Nrw‘
to foisting them upon the public at
capitalizations inordinately in excess |
of assets and all reasonabie allow
ancs for good will l
The time is coming when no pro
moter will be allowed to float & com
pany by ms:uni putilic pubo«'rtpuomi
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 rromfloro—‘
in short, without revealing to the
wflc exactly and truthfully what is
ng vended. |
And severe penalties will be pro
vided for misrepresentation. |
Several European countries have
practical laws to safeguard the pub
e against fragdulent, questionable
or deceptive ‘,ynmntmht
Conditions Different Mere. |
Here any conscienceloss faker Can
float & hole in the ground, a worthless
invention, or any other (onl'lflhfll
calculated to separate the unwary
from their money. '
The greatest danger now In sight, |
however, i# not the flotation of lb-]
solutely bogus venturea but the fl"-i
tation of enterprises of some merit st |
capitalizations far in excess of reason
ond justification. |
Conditions are ripe, or rigening, for
s deluge of such flotations. ‘
The country is flooded with money.
Boom times have set in. Wages are
high. Confidence has ne bounds. Se-
Surities have been soaring. Fortunes
have been made almest overnight in
“war stocks.” in sutomobile shares,
" marine asues and the like, |
And the speculative spirit which is
inharent in human nature is to-day
rampant.
The New Generation. 1
A new generation of budding finan. |
ria! Napoleane fn thelr own sstimae
tion-<are chafing 1o do spectacular
things and make millions In & Surry.
Most of themn have hrains Not a
few have respectable financial con.
nections. Bome are men of no littie
nfluence |
The sponsorshibn of more than one
Yente will be far frem tenth rate
What the public must be warned
AEninst s be ng misled into IMmagin
fng that all they have to do 1o double
thelr money & 1o huy ARy new Mok
Srought 3t with & hureah
Lat me add that undoubtedly the
time has arrived for the organisation
of numbers of legitimate snterprises
i take advantage of the changed and
thanging conditions entalied by the
Purcpean catacivem
f would not e misunderstond for
& moment as oautioning Investors
&Bsinet ecountenancing BEVERY new
ration hrought oyt
m #lll he roam for prefitable
invertment, for example, In properiy
hand ot rationally ecaplialined in
flm!l“h fathered organizations 6
sxtend Ametican opetailors In ot hee
soynirioe
Education s Neaded
Indesd If the United Hiates is Yo
take firet place among the worid e
Anancial natisne 11 is imperative that
the mak and e of American in-
Youtare e educated up ta appreciat
Ing oppoartanities 1» foreign Aelde
Thie haweser forme an additional
Peßenn why every poseihle means he
smpiaved by the press and by honest
Bankers, Brokers etc. e save In
Fontars from the pitfalls which are
heing dug for them
l::muu Investment use san he
P far overy doims AMerieane ran
e
Lot we 01l join efferts, lm -
o-uo nationwide slarion ol 1s
the s bewars of guestisnabie
et yree
]
Bridal Couples Must
i
Kiss, Judge Decrees
BLYRIA, OMIO Son 1A Woge sowig
o amietisnm ie Gwepemied m.& oo s
Shate brider skl e legenine whtgin
heis marriage enast of the Probgts
Cosrt. Jadge lads Wikan has fasued
85 adiet BANBE H WANINtErs That ab
w W.Rnw & Berriage k
o i i g # e miel gloe
Fhe srvaval m‘:»’::am* PR e
fesad i the i e FeRaRM It '
m Seing Wiimosere b e flm:::l
Flood of Gold To Be Turned
'
Loose in 1916, Says Banker
Woodruff,
E. 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 Kurope.
“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 i
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 every nation on the globe, never
before anticipated. ’
“Confidence is being rapldly re
stored and investors are eagerly ab
sorbing all of the high-grade Ameri
can securities of which the belliger
lent nations have been compelled to
dispose
“I have spent much of my time dur
ing the past three months in the
financial centers in the East, and have
never seen such optimism displayed
by all classes of citizens and such
favorable conditions for the develor -
ment of the resources of the United
States
“At no previous time has there bhesn
as much money in Atlanta banks as
there Is to-day It is the rare excen
tion to discover a bank statement
that does not show a healthy incre Ave
in deposits
“The securities of our local Instity.
tions are In active demand Ax ar
as I am adle to learn, they have all
had a prosperous vear. and thers hae
heen a substantial advance In the
market value of securities 4 iring the
last 60 dave
Such a condition of affalr how -
ever, is not without its dangers. as ¢
tends to. promote rank speculation
which fx a serious menace to our fu
ture prosperity and such sentiment
should be discouraged by anl
Insurance Business
.
Good in Past Year
BY M. C. BAGLEY,
Life insurance, except in its minor
}-nn-. can hardly be considered a
alr barometer of husiness conditions,
It has resched a period of develop
::nt where it tm.u::a all con
tions. During depression
and discouragement. the human mind
turne more readily to others to do
for him what he has failed to do for
himself; while during periods of pros
perity the prudent business 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.
The year 1915 will long be remem.
bered by business men in all lines
It has been the confusion of prophets,
and only the unexpected has hap
pened. During this perfod life in-.
surance has proven its value by Its
sarvice, and ' turn It has had the
support and patronage of the business
world to an extent never before
equaled In lts history
Official reports of none of the com.
ranies mcn.g the year's operations
are yol avariable but advance infor
mation jJustifles the statement that
every old-line company has closed the
year with a larger volume of busi.
mess written, larger accumulated as.
sota larger surplus and larger volume
of business in force than at the end of
.u‘;‘rmflu Year.
fe sfatement applies generally ts
the antire country, and In the matter
of favorable smo is esnecially
Appiicable to the husiness in Georgia.
ALI of the active general agencies in
the Siate quickly recoversd from (he
staghation and depression incident to
the sarly months of the war, and most
: them have writien business ap
>:wummy squal to their most fa
vorable record; the ageregats
in'.-.«m written In ap Kiate m':l‘l
t rompgniee M ¥ exceed,
blisiness of any former mr..qm
business has been well distributed
among all the companies In propor.
tion 16 the activity of their agents,
and with mest of the companies the
OQT business siande close to the
top of all the Niates In the Union
OREENCASTLE. IND. Jan. | ~The
training of Lmeriean youthe of ‘.u
i the aee of arme oas adv
Elfi ?’”'} lmm.«g!
:M ol l-n:; of the local netity
%o Ao med have aleguste wo«r
of consts and commerce ..
M"g-m?“:“mwnm’.
a 8 Fam v
"nugofl Wey @ .&n :’ prepared .
Tl' s belioved that President rese
waghd saver the re-esiablishment of
militady 'w hete, Srh 8% as of .
sored in Tente flumm‘
fhg was sstahiiohad Seve in INTT and
®ae ahwdietad faet Talate he he@ianing
of Ihe Spar ot . Ametican wat
Bold, Bmll Burglars
FRESNOD. Al ,”. 1 Al ecven the
b b w!.« have Be respect M
The Sighite the peliee, for seversl
F;su g u':u! o Ty em: EL
bpadn sk 18 e et oi <
,:-" o;w‘:um ot 9 *:h»u m
e o e hagiary See ae dasen
sl anill 5 dar epued tebarted By
. \
sadhmsy od Khe goaliom te I s g e
5 8 sefas of peits byl glaries
HEARST'S SUNDAY AMERICAN. ATLANTA, GA. SUNDAY, JANUARY 2. 1916
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 genemlly upset
financial conditions. But it is not really so strange after all.
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 retail
demand. Here was a cause of insurance prosperity.
When & 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 bankers,
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 now plenty of
money in banks for improvement work, for new construction and
'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 pu
their money into anything, no matter what the class of security
'or the fate of interest. It's different now. . Wik
i 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 Afluu‘
!n.u at the opening of the European war are now back in the
market. This presages a period of development. And dcnlop-i
ment means business for the insurance man. |
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 the
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
lgmm 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 n learns personal economy and
| the value of tangible, convert&le assets, he has learned the value
|of life insurance. ' |
‘tdn t‘l:umwo is the only practical safeguard against life's uncer
f Twenty million people in the United States have come to{
‘rulm this great truth. They pay upward of a billion dollars cach
| year ‘hummnm-invatmcnu in protection.
, in return they get freedom from fear of loss—whether
through fire, burglary, accident or sickness—and are saved the
| sickening apprehension of want in many of its forms. |
| The man who insures his life, for instance, robs death of its
jonly real terror—the possible privation of the loved left be
'hind. At the same time, if he chooses, boukunmm:rthtfin
'make him financially comfortable in later years. |
am:::mnth‘;n that: Bom‘:d‘uhlmul;’wgthummuf
, minor importance—an u which man nes
| have been based. i ’
| Life insurance insures confidence, confidence begets credit, and
credit makes profit. i
l “Twenty years ago,’’ to quote a famous merchant, ‘1 had a
|capital of half a milion dollars. I then realized that a 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
'mk insurance. I now find that trading on the credit of this insur.
ance has made far greater profits than had I used the amount I
paid in premiums directly in my business.’’
Oredit, therefore, is one of the tangible advantages of insur.
ance
l Mbdmm'fllmhbmmuuyimfldul.d‘
mand that the life of that individual be tnsured. When & loan is
made 1o & corporation, individual officers of the corporation must
carry heavy insurance. And no bank on earth would loan money
to a merchant who did not carry insurance on his stock. The bank.
er knows the value of protection. It is his duty to protect his loans
l&mpflbh way, not merely by the actual security given for
Protection—freedom from fear of loss—this is the baste prinei.
ple of insurance. |
‘ &:‘Ptubunmfmntmnmhmwmmlw
which place when Atlanta was making its sucoessful effort to
get the Regional Bank of the Federa] Reserve Banks. |
! Mfiohu&blflnauflmhmhlnlmluw
|of over $30,000,000 passed through the city annually on account of
.mammmmmhbmulwu When
|Muuq u:c:nmphudbdm the commities there
'::;loh.tuuy t selocting Atlanta as the Regional Bank
i But Atlanta’s insurance men have done more than bring the
' Regional Bank here. They have actually tu!rd to build the city.
| Through the good offices of insurance men millions of dollars have
been loaned for improvements here BL;m business ability, At
lanta’s insurance men have ereated a and for office buildings,
| for instance. Then they found the money with the insurance com.
{ panies 1o construct these buildings. Property values were increas.
‘o‘ Prosperity was created
| To no clams of business men does Atlanta owe more for her
*"‘:;- than to the insurance men. And in patronizing them - that
|9, by taking liberal insurance--the patron is doing himself the
mmf He is protecting himself and beaping up assets,
: accident insurance, burglary insurance. or any other
| whether he buy life insurance, fire insurance, bealth insurance. ae
eident ‘nsarance, burglary insurance, or any other kind of insur
Ance. Always, be is protecting himeelf against the greatest of all
soars. fear of tooe
l\f‘\ L*’\ , ) l
\
Every Branch of Industry in South
. . .
Thriving and Agencies
Are Prospering. g
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 s 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 fails
through any ecause, the farmer suf
fers. Southern farmers are raising
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 llke proportion to
the merchants. This means business
for the insurance man
The lumber industty of South Geor
gin Is In better condition right now
than for a long time r?-n There is a
real demand for rodgh lumber all
over the Sbuth. Shingle mills are
especially active
The Southern Rallway and the Sea.
board Air Line are to expend milllons
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 contra®
for 3500000 worth of work Here
again is a source of prosperity for
the insurance man
Automoblies are being purchased
froat, No better evidence of pros
perity could be found than the buye.
ing of auton. Peaple do not put the!r
money into machines when times are
hard
There s any quantity of money for
bullding providing the bdullder can
show a flecessitly for the structure
The booming promoter is exempted
This is the best Indication of pros
perity And It shows that business
conditionas are healthy
I could enumerate a hundred in
stances of prosperity Suffice It to
say, that husiness is good and is get.
ting betier every day I feel that
1918 is going 1o D¢ Atlanta's best year
PURITY BAKERY,
51 CARNEGIE WAY
The very best of Bread, Rolls, Cakes and Pies,
Our Goods are made by masters of the bakery trade.
All we ask is a trial, and you will become a Purity Booster,
PROMPT DELIVERY.
Atlanta Phone 1897, 51 Carnegie Way.
Buckhead Drug Co.
Cold Drinks Lunches
Gives S. & H. Green Slam.a
With CASH PURCHAS&
T L. DAVIDSON
esr oST 1 FACY G 2 RS, FRESH MEA'Snd P
WE D LIVER
Stone’s Cakes, 6 Varieties, 10c
U. S, BREAD, TIP-TOP BREAD,
w ' L.BC I 9t
BLOCK'S CRACKguRS
Made in Atlanta ALWAYS F H
H.H ARNOLD
GROCERILES ~- HAPEVILLE, GA,
Stone's Cakes, 6 Varieties, 10c¢
USBread & ThlTop breed &= o
e DC .. OC
BLOCK'S ‘SIEE"‘Q'?NA. 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 Swuits Sponged and Presssd SI.OO
AL B P 10
50, Cld
L i L .
The Penn Mutual Life
Insurance Company
Bag’ley (& Wlllet, Gen.Agts.
WANTED:—
{ i : " In every town and village, where
s\ we are not alrucly activcly repre
:|,l j‘ 1 sented, a reliable business man, who
| ] can give the whole or a portien of
l his time. as local agent for The
4 Penn Mutual Life Insurance Com
. pany. Previous insurance experi
: ence desirable but not essential.
; i Full information and instructions
by mail. Assistance of spccial
’ agent from this office upon request.
BAGLEY & WILLET
GENERAL AGENTS
Fourth National Bank Building
ATLANTA. GA.
o ,———*s
H. &E. L. Byrd Grocery Co. :
We Give 8. & H. Green Trading Stamps With All
Cash Purchases.
__36l Peters Street. Atlanta Phone 2994.
¥ Stone’s Cakes—6 Varieties—loc.
U. 8. Bread, Tip-Top Bread,
s s 5c ,I.oaf RRERRRS 5c
BLOCK'S KENNESAW BISCUIT_THE
PERFECT SODA CRACKER.
JIM PRATTIS GEO. Pm
Prattis & Pefims
CANDIES, SOFT DRINKS,
CIGARS AND PERIODICALS
Give S. &H. Green Stamps and Hapilton Coupens, f
Bell Phone Main 4508
Bell Phone Main 9161 17 & BROAD STREET, |
Atlanta Phone 4508 ATLANTA, GA. =
Atlanta Phone 24
The Best Made :
FROM SELECT HOME GROWN CORN
The corn 1« thoroughly cleaned by improved cleaning methods,
Which take out the fauity grains, corn silks, pleces of cob, and
the dust and dirt that usually get into the nmal :
The corn is then ground in & set of old-fashioned Esophiug
stomes, the largest and the heaviest made, running at & slow snd
steady speed. which insures the very best quality of meal >
Poerless Meal is sold under a positive guaranies to be the best
made. It will ccst you \i’d'.h‘*"!fi‘wlc”“’ “Lmnq
worth more. Cive i 1 & trial »
If your grocer ean't supply you WRITE FOR PRICES. :
W. E. TUGGLE
STONE'S CAKES (~2%,,) 10¢
Loar = =B| v el
. ‘
BLOCK’'S CRACKERS
ALWAYS FRESH
5