A By the Way NEW method of movie advertising has been finding favor. This rather novel scheme is worked out something like this: An old man and a young girl will board a street car and a conversation will be carried on for the benefit of the passengers. The old man holds an eartrumpet so that the words of the girl can be shouted loud enough for every one in the car to hear. "Ethel, dear," the old man will say, "are you sure that we are on the right car for the Blankety-Blank Theater?" "Yes, grandfather," she shouts back, "I know this car will take us to see Bill Hart [or Norma Talmadge] at the Blankety-Blank Theater in their latest picture, 'The Cowboy's Revenge.'" After another block this conversation is repeated, with variations such as "Ethel, dear, don't you think you should ask the conductor," etc., etc., and the reply, "Don't worry, grandfather, dear, we will surely see 'The Cowboy's Revenge.'" By this time some one will tell them that they are on the wrong car. Then-"Ethel, dear, did that man say something about the BlanketyBlank Theater?" "Yes, grandfather, he said that if we are going to 'The Cowboy's Revenge,' we should take the Fifth Street car," etc., etc., as long as they can keep it up. Then they get off and board another car going the opposite way, ad infinitum. What next? "What has become of the fine old names of Prudence and Patience?" the old sage was asked. "They wouldn't be appropriate these days," he replied. "If I had a couple of daughters, I'd christen them Extravagance and Hysteria." Here are some news items which haven't yet been heralded in the Nation's press: "Hamlet" in modern clothes, with the record for free publicity and critics' praise, plays two losing weeks on Broadway, while $800,000 is bid for the film rights of "Abie's Irish Rose," which is in its fifth New York year, with six companies "cleaning up" on the road. . . . Toy departments of large stores in Pittsburgh, Brooklyn, and New York are staging regular indoor circuses for the Christmas season. One has imported a zoo of 171 animals and 30 clowns for the entertainment of the children. . . . A vaudeville strong man, who had finished. his performance of feats of strength at a Western theater, was seen boarding the train to the next town. His iron weights and apparatus that were supposed to weigh several tons became only eighty pounds excess baggage to the railroad company. . . . The lawyers who allowed Leonard Kip Rhinelander to bring his now famous suit for annulment of marriage probably benefited only their own public recognition and the circulation of our yellowest journals. An added comment, which is not generally known, is the present business which has grown up of selling multigraphed copies of the unprintable love letters at one dollar per copy. People of an honorable name have been put through tortures and the public steeped in obscenity. It should never have been. The Columbia "Record" tells us how we can eat our cake and have it tooi. e., make two cakes. Reports from Florida state that nurses are getting $10.50 per day with board; watered milk is selling for 15 cents per glass; hotel rates of $50 per day are predicted; apartments formerly renting for $100 per month now bring $500; haircuts have gone up to 65 cents; and day laborers are getting $20 a day. Booze is still cheap. Whisky is plentiful at $5 the quart and from $28 per case up. The Hollander who says America has nothing to compare with Dutch windmills should see our cheer leaders. The London "Humorist" has discovered what is meant by the wise men of the East. It has learned that speeches at public dinners in Japan are made before the dinner commences. A Radio Favorite contest is being conducted by the New York "Evening World," a coupon worth one vote in each issue of the paper. Such radio favorites as the Happiness Boys and Roxy and His Gang are being left far behind by Harry Richman, who is spending $1,000 per day for papers, clipping the coupons by a cutting machine, and employing a large force to fill in the name of his orchestra-figuring, we suppose, that the winning publicity will amply repay him. Here is a riddle from Miss Imogen Clark's book "Suppose We Play:" My whole is a churchman. Behead it, and it is to tell; behead it again, and it is to be glad; behead again, and it is to be tardy; behead again, and it is consumed. Answer next week. wonders of the great Southwest can best be enjoyed through the superior accommodations and service of this world-famous train. All the comforts of luxurious modern travel at no extra fare. De luxe sleeping and Sunset Daily service New Orleans to Los Angeles, San Diego and San Francisco, with through sleeping cars for the 120-mile Apache Trail side trip, and through the beautiful Carriso Gorge. Stop over if you like at New Orleans, Houston, San Antonio, El Paso, and Tucson. For further information and descriptive booklets, address any of the following offices: New York Chicago New Orleans 165 Broadway 35 W. Jackson Blvd. Pan Am. Bk. Bldg. In writing to the above advertiser, please mention The Outlook The ever pressing problem of sufficient ITH interest levels lower, it becomes more and more difficult for the conservative But many people who are dependent upon income from investments cannot afford less To successfully deal with this problem, the investor should employ to a more than usual degree: 1-Thorough knowledge of bonds purchased. 2-Vigilance in keeping track of them. 4-Sponsorship by a reliable bond house. Selecting sound issues Bonds' of the same type may differ widely in their individual strength-in equities, assets, management, Keeping in touch Then, after the bonds have been bought, they should be carefully kept track of, to guard against or take Added security Diversification is a form of investment insurance. It averages risk, however slight that may be. This also re- The investor's problem is greatly simplified by selecting a good bond house HALSEY, STUART & CO. subordinate the interests of the investor to those of the syndicate or underwriter. The author of a recent book, stressing some of the bad features of this system, makes these pertinent remarks: This competition in the business and the necessity of supporting large sales forces has reached a point where the demand for new issues on the part of underwriting houses has become so great that, except during unusual depressions when securities are obtainable for almost any price offered, bankers are bidding against each other for the opportunity to buy and resell bond and stock issues. This carries the prices paid for these new securities to a point where they must be offered to the public at prices which are relatively high compared to the general market level, and especially for issues which are obviously unseasoned. Before, however, we can discuss this question, which will be left to another article, we should understand something of the syndicating mechanism which lies back of the whole process of floating and selling stocks and bonds. The statement that fifty million dollars' worth of Andalusian bonds were sold in an hour or two is in the category of partial truths. What actually occurred was that the syndicate manager within a short time after the opening of his subscription books found that the syndicate members had agreed to take off his hands the entire issue. In this narrow, yet very important sense, the issue was "sold." As a matter of fact, this selling marked a half-way point in a sales campaign the objective of which was to place the bonds in the hands of individual or institutional investors. Some issues are thus finally distributed to the ultimate investor weeks or months after the syndicate has concluded its initial work. Often, of course, it is finished sooner. If one could take a look behind the scenes, he would discover a situation like this: In one fashion or another a representative of the Minister of Finance of Andalusia comes to confer with one of the partners of, let us say, Brown & White, investment bankers of New York. One conference leads to another; to investigations; to the analysis of the revenues and the structure of the indebtedness of the nation; doubtless to "conversations" with the State Department at Washington. The negotiations may extend over months. If fortunate, they conclude with the acceptance by the foreign government of an offer by Brown & White to buy the issue at, for example, 92, which means $920 for each thousand Do Not Put Off Till January What You Can Do Today HE low yields now prevailing on other classes of securities will cause more investors than ever before to turn this January to the proven safety and liberal, dependable income of sound first mortgage bonds. cured by improved, income-producing city property, and give you, at the present time, a choice of maturities from 2 years to 10 years. You can make your selection now as to issue and maturity, If you are planning || Plan Now To Get to take advantage of prevailing first mortgage interest rates, you will do well, therefore, to 7% make your selec- on JanuaryFunds tion now, before the heavy January de mand restricts your choice. Thus you will assure, for your January funds, the security, the maturity and the interest rate that you and reserve the investment you want for delivery when your funds will be in hand. No deposit is required on investments reserved for sixty days. If you wish, payment for the bond or bonds select you be exmay tended over a longer period, by using our Investment Savings Plan. Under this plan, after an initial payment of 10%, you have 10 months to complete your purchase on any terms convenient to you. Every payment earns the full rate of bond interest. Send your name and address today, on the form below, for de scriptions of our current offerings. We also will send you our booklets, "Fifty-two Years of Proven Safety" and "How to Build an Independent Income.” Send Today For These Booklets Fifty-two Years of Proven Safety-Explains the time-tested safety features which have made Smith Bonds the choice of thousands of investors in 48 States and 30 foreign lands. How to Build an Independent Income-Explains our Investment Savings Plan, under which you may buy 7% Smith Bonds by payments extended over 10 months, and get 7% on every payment. THE F. H.SMITH Co. NEW YORK Founded 1873 PITTSBURGH PHILADELPHIA Smith Bldg., Washington, D.C. MINNEAPOLIS NO LOSS TO ANY INVESTOR IN 52 YEARS Address.. Please print name and address plainly In writing to the above advertiser, please mention The Outlook 6-E Wise planning TH certain progress HE professional man should take care to supplement his present income by the income from well-chosen securities. Wise investing now means less worry and more comfort later on. Ill-considered speculations, needless spending-both heavy drains on resources-find no place in the planning of a second income. That is why the consistent bond buyer has so much to show for his effort. Our offices in fifty leading cities are ready to analyze your requirements and suggest suitable offerings. dollar bond. Payment is to be made when the bonds, duly approved by eminent legal counsel, are delivered to Brown & White. At some point during these negotiations Brown & White proceed to form a syndicate or temporary partnership for the special purpose of selling the Andalusian bonds to the public. The syndicate consists of banks and investment houses with which Brown & White has become associated. Each member agrees to take a certain portion of the new issue, the size depending on its ability to sell and on the size of the issue. In short, the selling process has reached at last the beginning of the retailing stage. When Brown & White have finally completed the sale of the bonds to the syndicate members, the news is released that the bonds are sold. In one sense of the term, this is the main job, because the members know pretty well what they can do, and because, further, so far as the foreign government is concerned, they are sold. The final phase of the sales campaign now begins. Through advertising in the papers, through circulars to customers, through the solicitation by salesmen of their customers, the Andalusian bonds are distributed by syndicate members to the ultimate consumer. The price depends on market conditions and interest rates. Very likely it is fixed at 98 or 100, the difference between this figure and the price which the Andalusian Government received being the gross profit of the syndicate. Their net is, of course, this gross less their selling expense, which includes many miscellaneous items reaching back to the beginning of the negotiations. Such, very sketchily, is a glimpse behind the scenes into the realities of the first great step in merchandising a foreign bond issue. W. L. S. From Inquiring Readers IT is an interesting fact that relatively few of the inquiries that come to this department are about the very risky securities or rather, offerings. This may mean either or both of two things. It may mean that those who tend to purchase the very rocky stocks and bonds do not avail themselves of our service; or it may mean that very few Outlook readers are tempted by the salesmen of fraudulent schemes. We hope that the second statement is the truth. A recent bulletin of the Better Business Bureau of New York City offers this thoughtful paragraph in this connection: "The fight on fraud in some parts of In writing to the above advertiser, please mention The Outlook our State, at Utica, for example and at New York City and at Buffalo, has made the stock-swindling and bucket-shop business more dangerous than skillful crimes of violence. Brains are a principal factor in the commission of securities frauds. More alert, intelligent action is needed against them than against thugs and bandits. The total money loss from crimes of violence is but a small fraction of that from stock swindling, yet millions are spent for police and other forms of protection against common theft where but hundreds are spent to thwart the shrewder, greater plunderer. The victims of the venders of worthless stocks are frequently left destitute or forced back to where they made their financial beginnings. Their losses are not merely an economic, but a social and political waste as well. Their resistance to fake schemes is more likely weakened than strengthened by them. The best so-called 'sucker' list is one made up of former buyers of 'blue sky.' To which we would add a single word: In this warfare against cheats we cannot rely on laws. In the last analysis, the remedy lies with the individual. The money that goes into poor investments is not taken forcibly from you. You, the public, put it there voluntarily. Scores of honest agencies stand ready to give you facts and to help you to invest wisely. Use them. O N this topic, one more remark. The editor listened the other day to a stimulating talk on investments by the president of an investment company of the first rank. One striking point was this: "Don't take any statement I may make as a fact. Check it and me up. The trouble with investors to-day is that they want to tie to somebody on whom they can rely and pass the blame for bad judgment along to them. Shoulder the blame yourself. Inquire widely, but make your own decisions." We would apply this caution to those who use our Financial Service Department. A POSTSCRIPT to this general subject. Often readers want to know if such and such a stock or bond is a good investment. In answering this question we attempt to tell them whether it is a safe and sound investment, but whether it is good-i. e., good for the reader's own particular situation, circumstances, conditions, and prospects in life-we cannot say till he tells us what those are. A municipal, tax-exempt bond is well-nigh perfect for the rich man who must cut down his tax liabilities. But it is not good for the widow of very limited Should your Widow be left to manage your estate? "T A prominent business man says: HAT the average widow has not the ability wisely to manage the property left to her through the decease of her husband, is obvious to the general thinking public. Why? "In the first place, the widow's bereavement, in most cases, is a shock sufficient to prevent her from exercising ordinary business judgment in the management of the estate left to her. "Secondly, the handling of property and important business is too weighty for one trained in managing household affairs and other family interests, unless she has at her command professional counsel backed by years of training. "Upon the death of her husband she becomes the victim of undesirable business. schemes. She will frequently enter into expensive but ques tionable contracts through new business adventures thrust upon her by high pressure salesmen. Such pitfalls were evaded during the life of her husband through his guidance. He, unlike her, was not easy prey; his experience and association with business discouraged these solicitous maneuverers. "The loss often is not only financial but sometimes more disastrous. The gnawing worry, incident to business cares, so suddenly thrust upon a widow often results in her nervous breakdown necessitating heavy expenditures to restore her to health." The man who is wise in the arrangement of his affairs will appoint a trust company to manage his estate. Ask the trust officer of a local trust company to explain to you the benefits of trust serviceor write to TRUST COMPANY DIVISION AMERICAN BANKERS ASSOCIATION 110 EAST 42nd STREET, NEW YORK In writing to the above advertiser, please mention The Outlook |