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, etc,—
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
country 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. l
The man or woman who has saved
a few hundred or a few thousand |
dollars 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.
Indged, from what I learn, num
" bers of SIOO-share ventures are now
being put through the financial mill
preparatory to flotation with a blare
of trumpeta.
Demand for Options.
There is a keen demand for op
tions on well-known firms or private
ly-controlled companies with a view
to foisting them upon the public at
capitalizations inordinately in excess
of assets and all reasonable allow
ance for good will
The time is coming when no pro
moter will be. allowed to float a li’-l’ll-'
pany by inviting public subscriptions |
without first m.ting a sworn declara- '
tion of the amount paid for the assets,
the amount allowed for good will, the |
amount to be paid the rumoun—'
in short, without revealing to the'
üblic exactly and truthfully what is
:flng vended.
And severe penalties will be pre
vided for misrepresentation.
Several BEuropean countries bave
practical laws to safeguard the pub
e against fravdulent, questionable
or deceptive promotions :
Conditions Different Here. !
Here any consclenceless faker can,
float a hole in the ground, a worthless
invention, or any other contraption
Alcuinted to separate the unwary
from their money.
The greatest danger now In sight,
however, is not the flotation of ab
solutely bogus ventures, but the flo.
tation of enterprises of some merit at |
capitalizations far in excess of reason |
ond justification. ; '
Conditions are ripe. or ripening, ’0"
a deluge of such fotations.
The country is flooded with mouy.!
Boom times have set in. Wages are |
high. Confidence has no bounds. Se
turities have besn soaring Fafluml
have been made almost overnight in!
“war stocks.” in automobile shares, |
in marine issues and the like, '
And the speculative spirit which is}
inherent in human nature is to-day |
rampant. ‘
The New Generation.
A new generation of budding '\nwr-l
cinl Napoleons n their own estima
tion-—are chafing to 4o spect n;'\)':-'!
things and make milllons in a hurry
Most of them have bhirains Not al
few have respectable fAnancial m'!»’
nections. Bome are men of no little
infuence i
The sponsarship of more than one|
venture will be far from tenth rate
What the public must be warned |
Against = being misied into Imarin- |
Ing that all they ave to do ts '!"'l'll‘i
thelr money s to Buy any new stock |
Leoght ut with & hurrah :
Lot me add that undoubtedly the
t'me has arrived for the organ sation §
of numbers of legitimate anterprises |
1o take advantage of the ~hanged and
ehanging conditions entalled by tb‘l
Furopean cataciyem
f wanld not be misunderstood for
O mement as cautioning Investors |
Against ecountenancing EVERY new
corporation hrought out !
There il be room for profitable |
nvesiment, for sxample, In properly
handied. mationally eaplializsed, In '
fuentially fathered organisations (¢
extend American operations In other |
tountries
Education is Neeaded,
indesd. If 'he U'nited States s 1o
take firet place among the worlds |
financial nations 1t is imperative that
the rank and fle of Ameriean in
vestore be adurated up o appresiat.
Ing oppoartunities in foreign feide
This, however, forms an additional |
Peasnn why svery possibie moans hel
empiaved hy the press and by he fest |
bankers, bhrokers et e save in-|
vyostors from the pitfalls which arel
being dug for them i
Legitimate Invesiment use can bel
found far svery Ao'lar Americars can |
sace '
Lot us all join sMorta, therelore, in
sy nd a mationwide clarion call o]
- .."J-. te beware of auestionable
ventures.
Bridal Couples Must |
Kiss, Judge Decrees
FLYRIA, OMIO. Jan 1 - A arpge spvig
of miatietoe e suspended over Ihe et
Nhats Wides atdl Shisronme ohisi
hailr Marviage ‘lrenees as Ihe Prolante
ooy * Tadge s W ~q e Feemet
oh efisd ki f @nlstars Ihat al
m‘m sMainitE & Wwarfiage lirenes
b T > 4 avatas ke Mmistigtow
The caveral & g @ e " L
Mlrgwd, i ARe +ice e Fesmometialing
.-.nu. haitg Witnseess in Be favead )
vl
'Flood of Gold To Be Turned
'
Loose in 1916, Says Banker
Woodruff,
B. Woodruff, president of the 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
lammmt 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 every 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 & flow of gold to this country
from every nation on the globe, never
before anticipated.
“Confidence is being rapldly ré
stored and investors are eagerly ab
|nurhlnz all of the high-grade Ameri
can securities of which the belliger
!o-n' nations have been compelled to
{digpose,
t “I have spent much of my time dur
ling the past three months In the
'fll!:nn lal centers in the East, and have
| never sken such optimism displayed
Ih\ all classes of citizens and such
{ favorable conditions for the develor -
i ment of the resources of the United
States
’ At no previous time has there heen
A« much money in Atlanta banks as
there is to-day. It is the rare excen
| tion to discover a ban statement
“":1' does not show a healthy increase
in deposits ‘
“The securities of our local Institya.
thone are In active demand As far
as I am able to learn, they have all
'hn-l A prosperous year, and there has
been a substantial advance in the
| market value of securitles A ring the
| last 60 davse
! Such a condition of affalrs. hos
| ever, is not without Jts dangers. as It
| tends to promote rank speculation |
| Which is a serious menace to our fu
| ture prasperity, and such sentiment
should be discouraged by all
]
Insurance Business
.
} Good in Past Year
\ BY H. C. BAGLEY.
- Life inwurance, except in its minor
phases, can hardly be considered a
fair barometer of business conditions.
It has reached a period of develop
ment where it thrives under all con
ditlons. During periods of depression
and discouragement, the human mind
turns more readlly to others to do
for him what he has failed to do forl
himself: while during periods of pros
perity the prudent husiness man flndn}
in life insurance the one n?ocmrfl
which protects his family and hu‘
business against loss should he die
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. Duoring this period life in
surance has proven its value by Hs
service, and In turn it has had the
support and patronage of the business
world to an extent never Moni
equaled in Its history,
OMcial reports of none of the com. |
Panies covering the year's operations
are yot avatiable. but advance infor
mation justifies the statement that
every old-line company has closed the
Yeur with a larger volume of busi.
ness written, larger accumniated as
seta, larger surplus and larger volume |
of business in force than at the end of
lnfimmg year, I
ie statement applies generally 1o
the entire country, and in the matter
of favorabie ancm- is esnecially
anplicable to the business in Georgia
All of the artive genera! agencies in
the State quickly recovered from the
stagnation and depression incident 1o
the early months of the war. and most
of them have written business ap
proximately squal to their most fa
vorable record; the aggregate
Amount writien In the State by all
the rompanies probably exceeding the
business of any former year This
buflnm“un;‘ been well distributed
among all the companies in propor.
tion to the activity of their asgents
and with most of the companies the
nmzh business stands close to the
top of all the Ktates in the U nion,
OREENCANTLE. IND . Jan 1 . The
raining of Amsrican youths of lnu:’
Ez-ht'a the m.u" areme n.:“u'c:m
Gentge rone, " m
uw University, in u’:unu
:ho otudent i-Jv of the loral inetity
o
“We do vt have adeauate modrn
of consts and commeres. -it Iw
Grase, “and while | am peacelul i epirnt
‘ am alse beartily in nl:r"h -
t Wilson s polley prepared
Tr e Selisved Ihat President «m!
would saver the re-eptablishment of
silitary Iraining Sere, ek A was of -
sored in former yoars lmmwuml
g Sas estabiinhied hers in 10T and |
Was aboliched just hefore the beginning
of the Spa®ieh. American wef |
eBP li I.gol:l:8 i
FRESNSO CAL Jas 1 - Anl sven Q:\m
e Bave B ¢ s ¥ ol
ru.?lm«:““-f.om ol fx‘.-mu
Mighte age sovernl of the wokere gt g ;
Bee handasnriors were jried aten |
Camey, tevaivers and 8 Nelmet Sers
a 8 The Sur@iery Wae s Aasewy
ered walll Ihe cay squad repeited e
#
‘”?"so vahbmes of (he solics fs the o immgy
9 & seies of petty burginties
J:l}ié}}'ST'S SUNDAY AMERICAN, ATLANTA, GA., SUNDAY. JANUARY 2, 1916.
ettt ——— et et i asl| % . Wttt ettt o i O ERAV ST LALLMy AT A
L ——————— ——————————————————————————
INSURANCE—A MIGHTY BUSINESS FORCE i
* Continued From Page 4. ] |
but it is not. - Farm pro'op’;rity and farm ‘cbnditioxisiliave‘a direct
-effect upon all lines of business, especially insurance. When a
lfarmer 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
Iyears. This may seem strange in view of the generally 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
lchant was compelled to buy heavily to keep up with the retail
demand. Here was a cause of insurance prosperity.
When a merchant allows his stock to become depleted, he has
no use for insurance. But when demand forces him to fill up all
|h’is 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 ofs
‘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 months ago. And it
htayod there for many months. Loan companies refused to put
their money into anything, no matter what the class of security
’or the rate of interest. It's different now. 1
" Now the money lehder is seéking the borrower. Money, to
be of advantage to its owner, must be put to work. So the money
‘owners are seeking the money users. l
Loan companies which practically withdrew from the Atlanta
field at the opening of the European war are now back in '.hoi
market. This presages a period of development. And develop.‘
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
greater 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 person learns personal economy and
the vadue of tangible, convertible assets, he has learned the value
of life insurance. |
znmnnoe is the only practical safeguard against life’s uncer.
tainties.
Twenty million people in the United States have come tol
realize this great truth. They pay upward of a billion dollars each
year in Ifiminm-—invnunmu in protection. |
And 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 desth of its |
only real terror—the possible privation of the loved ones left be- |
hind. At the same time, if he chooses, he takes a measure that will
make him financially comfortable in later years. 1
And more than that: He provides himself with a business as.
set 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,’’ to quote a famous merchant, ‘I had &
capital of half a milion dollars. I then realized that a businesss
man with half & 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 I
took 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.”’ i
Credit, therefore, is one of the tangible advantages of insur.
ance. w
Bankers, before they will make big loans to any individual, de.
mand that the life of that individual be insured. When a loan is
made 1o a corporation, individual officers of the corporation must
carry heavy insurance. And no bank on earth would loan money |
to a merchant who did not earry insurance on his stock. The bank.
er knows the value of protsction. It is his duty to protect his loans
&c;r:.ry possible way, not merely by the actual security given for
n.
Protection—freedom from fear of loss—this s the basie prinei.
ple of insurance. ]
M{mllmlmhtnmmhmwtbmt"
which took place when Atlanta was making its successful effort to
get the Regional Bank of the Federal Reserve Banks |
At the bunoa in Atianta it was brought out that an aggregate
of over $30,000,000 passed through the city annually on account of
insurance transactions in Georgia and neighboring States. When
these astounding m'm were placed befores the commities there
was no hesitancy t selecting Atlanta as the Regional Bank
cit
. But Atlanta’s insurance men have done more than bring the
Regional Bank here. They have actually M:{‘cd to build the city.
Through the good offices of insurance men millions of dollars have
been loaned for improvements here B‘{ their business ability, At.
lanta ‘s insurance men have created a demand for office bulldings,
for instance. Then they found the money with the insurance com
panies to construct these buildings. Property values were increas.
od. Prosperity was created.
To no class of business men does Atlanta owe more for her
progress than 1o the insurance men. And in patronizing them — that
is, by taking iiberal insurance—the patron is doing himself the
greater favor. He is protecting himself and heaping up assets,
insurance, accident insurance, burglary insurance. or any other
whether he buy life insurance, fire insurance. health insurance, se
cident insurance. burglary insurance. or any other kind of ineuy
ance. Always, he 15 protecting himsel! against the greatest of all
fears. fear of loe-
:
Every Branch of Industry in South
g & '
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 js 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 wi'l be about 10 per 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 raising
many more crops than cotton, al
though cotton is, and probably always
will be, the mainstay of the Southern
farmer. As long as cotton remaJns
above ten cents, the Southern farmer
will be prosperous.
During 1815 merchants allowed
their stocks to become depleted. They
did not want to buy, for they could
net quite figure out what the future
was to be. What they bought was
from necesrsity. Now, with these
stocks depleted, necessity is forcing
merchants to buy heavily, And the
best part of it all is that the publie
is buying heavily, but not foolishly or
extravagantly, in llke proportion to
the merchants. This means business
for the insurance man.
The lumber industry of South Geor
gia is in better condition right now
than for a long time past. There is a
real demand for rough lumber all
over the South., Shingle mills are
especially active
The Southern Rallway and the Sea.
hoard 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 is being spent right
now, One Atlanta firm has a contract
for $5M.000 worh of work Here
\Rain is a source of prosperity for
the insurance man
Automobiles are being purchased
froely No better evidence of pros.
perity eould be found than the buy
ing of autos. People do not put thelr
money into machines when times are
hard
There 18 any quantity of money for
buliding, providing the bullder can
Show & necessitly for the structure
The booming promoter is exempted
This s the best Indication of pros.
perity And it shows that business
onditions are healthy
I could enumerate a hundred in
stances of prosperity Suffice It 1o
say, that business is good and is get.
ting better every day I feel that
1%16 s going 1o be Atlanta's hest 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.
Atianta Phone 1897, 51 Carnegie Way
Buckhead Drug Co.
Cold Drinks Lunches
Gives S. & H Green Stam
With CASH PURCHASL[;
sen . DAVIDSON 3
Dealer in STAPLE and FANCY G2O: ERIES, FRESH MEATS and FISH
Considering the quo»thwq"‘ e\;-’:?:o‘.\;';';'-uo are always low
Stone’s Cakes, 6 Varieties, 10c
U, S. BREAD, TIP-TOP BREAD,
Ny . . .sc lmm...sc
BLOCK'S CRACKERS
Made in Atlanta. ALWAYS FRESH
H.H ARNOLD
GROCERILS - HAPEVILLE, GA.
Stone’s Cakes, 6 Varieties, 10c¢
US Bread @& | Tip Top Bread, &= o
1’“!.....’.....’_L_LN.', _s_c l“' e L,,“s c
BLOCK'S .SQE”S‘)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
Zix Swits Sponged and Presa:d SI.OO
CALL E. P. 100
; i @
The Penn Mutunal Life
Insurance Company
Bagley (& Willet, Gen.Agts. 7%‘
WANTED:— . "
3 ) fieel In every town and village. where
T g we are not already actively repre- '
| 1 sented, a reliable business man, who
| ' | can give the whole or a portien of
” his time. as local agent for The '
‘ Penn Mutual Life Insurance Com
pany. Previous insurance experi- ;
ence desirable but not essential.
Full information and instructions
by mail. Assistance of special )
agent from this office upon request.
BAGLEY & WILLET
GENERAL AGENTS
Fourth National Bank Building
ATLANTA. GA.
H. &E. L. Byrd Grocery Co.
We Give 8. & H. Green Trading Stamps With All
Cash Purchases.
_ 361 Peters Street. ____Atlanta Phone 2004.
e Stone’'s Cakes—6 Varloties—-l()c.
U. 8. Bread, Tip- Top Bread,
Loaf sc,Loaf Msc
BLOCK'S KENNESAW BISCUIT--THE
PERP:ECT SODA CRACKER.
JIM PRATTIS GEO. Pm
Prattis & Pefinis
CANDIES, SOFT DRINKS, -
CIGARS AND PERIODICALS
Give 8. & H. Green Stamps and Hamilton Coupons, :
Bell Phone Main 4508 :
Bell Phone Main 9161 17 8 BROAD STREET,
Atlanta Phone 4508 ATLANTA, GA. i
Atlanta Phone 240 -
FROM SELECT HOME GROWN COR !
The corn is thoroughly cleaned by improved cleaning M
which take out the faulty grains, corn silks, pieces of cob, and
the dust and dirt that usually get into the nmal i
The corn is then ground in & set of old-fashioned s
stones, the largest and the heaviest made running at a slow 4
steady speed. which insures the very best quality of meal.
Peerless Meal is sold under a positive guarantee to be the ]
made. It will cost you a little more than a cheap meal but it f 9
worth more. Give it & trial 1
If your groces ean t supply you WRITE FOR PRICES. 3
W. E. TUGGLE
Stone Mountain, Ga. AGENT FOR
-v P [
STONE “ 4"‘ vameries) L UC
Voae® READ Ba || TIP-TOP BREAD. B
LOAF - = sf COAV = e_ &
'S KERS
BLOCK’S CRAC
ALWAYS FRESH
5