HomeMy WebLinkAboutThe Herald, 1911-12-15, Page 3here is nothrn . like a "Tea Pot"
test at your own table to prove its
sterling worth
TEA "Always and E. sily the Best"
BLACK, GREEN, or MIXED. Sealed Ay.rtight Packages Only
AKE SAFE INVESTMENTS
THE PERSONNEL OF DIRECTORS AND
MANAGEMENT A MOST IMPORT.
ANT CONSIDERATION.
Mot Earnings Must be
Period of Years to
Company Is Going
Should bo About
Interest.
Examined.
Over a
Determine Whether
Ahead or Not —
Doublo the Bond
The, articles contributed by "Investor"
are fr the sole purpose cf guiding pros•
ective investors, and, if possible of sat,
4118 them from losing money thrnnrrb
placing it in "wild -oat" 1•nterprises. The
unpartial and reliable oharacter of the
information may be relied upon. The
writer of these articles and the pablieber
of this paper have no interests to serve
in connection with this matter other than
those of the reader.
(By "Investor.")
Tho last' few artiolues have dealt with
the matter of safety of industrial bonds
from what, for lack of a better term,
wo may call the physical side—features
that can be learned from—or at least
should bo shown in—the balance sheet.
There are two scarcely less important
features, however, that must he looked
into to completo the determination, not
so much, perhaps, of the immediate
safety of the bonde as the certainty of
the interest, and the outlook for the
future.
The first, is the question of "netearn-
ings." On the proportion of net earnings
to outstanding obligations depends to
no small extent the strength of an in-
dustrial company.The figures of ii,
number of years should bo examined.
,Most advertisements of industrial .bond
%offerin=., . e such akatexnent as
his.—„The net earns gs"during the Nast
five years average $ , whioll is over
four times the bond interest." This
e' exnent I ' •111• cresting, but , the care•
fol investor should enquire further. It
would bo much more valuable if the
information were more complete. The
et earnings for a number of years tells
to very much more interesting—and in-
structive—story than the average for the
Same period. Take, for example, the
earnings of the Wm. A. Rogers, Limited,
which, by the way, has issued no bonds
bit is used merely for illustration.—
Profits 1906 were $191,552
” 1907 195,610
" 1908 " 182,725
" 1909 301,466
1910 329,616
The average over this period is $240,181,
which gives a very inadequate idea of
the remarkable growth of the earnings.
Note the small drop during 1908, the year
in which the panic in the States caused
a short falling off in the earnings of
most Canadian industrials. AU this in•
formation is most valuable, as it sigui-
Ilan a steady demand and a growing
business, which indicates that fixers
charges of a . company similarly situat-
ed would be regularly met.
The proposition between fixed charges
and net earnings should be earefullY
noted. Net earnings should equal about
twice the bond interest, taxes and sink-
ing -feud, for a bond to receive favor-
able oiis1deration as a safe investment,
except Hinder unusual circumstances,
where the nature of thb earnings are
unusually eteady, or the security un-
usually substantial. The nature of the
product is important. A company pro-
ducing an article of fluctuating or un•
eert'ain demand should' not issue bonds.
Opportunities for •successful competition
✓ substitution must be considered, and,
k possible, bonds should be avoided •
.
third point is management and con -
4444.4.4.44.4444410.44.44..
trot Few questions aro of greater im-
portance in .investigating the strength
of an industrial company than the re.
potation and experience of the Men In
charge. As an American writing ou this
subject, puts it: "The ability and in-
tegrity of the men who control the policy
of the company and the efficiency of the
operating officials are the principal fac-
tors in the success of an industrial un-
dertaking." Unquestionably, in the long
run and in probably a majority of cases
this is equally true in Canada, particu-
larly in the case of small companies.
Men with good reputation do not risk
them lightly in acting as directors of
hopeless industrial enterPrises. When
one sees the names on the list of officers
of new companies the first thing the ex-
perienced investor or financial man does
is to see—if the names are not familiar—
on what other boards they act. If their
previous affiliations have been success-
ful there is much more reason to suppose
the new venture will be so likewise. And
management is almost as important. For
example, the bonds of the Canada Bread
Company would probably have had a
cool reception from the public had. not
Mark Bredin, well-known as a successful
manager of this sort .of business in a
large way, been announced as managing -
director of the enterprise.
So much for the question of safety of
industrial bonds. Tho reader may won-
der what degree of safety attends to
this classof investment, If it were pos-
sible to make a general statement, as in
the case of municipals, this prolonged
discussion would have been unnecessai y.
Industrial bonds vary in safety from a
very high degree down. No general con-
clusions can be depended upon, and the
investor is forced to consider each issue
upon. its .own merits, but with the aid,
of the suggestions here given and his
own common sense he need not approach
the matter with misgiving.
QUICKLY STOPs,COUGHS, CURES COLDS,
MJ:AL•fY hE THROAT AND LUNGS. 25 CENTS
EXPLAINING HORSE -POWER.
In ' connection with steamship
propulsion the average man is apt
to speak ivery glibly of so many
hundred o .thousand horse -power.
But it is ,e$tremely doubtful if one
person in a hundred really has a
due appreciatioa3.of what the phrase
actually means. On this point
some very interesting remarks were
made by John Hock, the Glasgow
engineer surveyor. He said that,
calculating the strength of twelve
men to be equal to one horse-
power, it would require 840,000 men
to produce as much energy as the
70,000 horse -power developed by
the turbine machinery of the ex-
prees Ounarder Lusitania. Then if
the men were to work on the eight
hour day system those figures
would give atotal of 2,520,000, that
being the number of men whose
strength would be necessary to
drive the vessel across the Atlantic
Ocean. So it would take all the
men in Scotland to supply the
energy produeed all the day round
by the wonderful turbine mach-
inery of the great ship.
To Chill Dough.—To prevent
cookies and doughnuts from stick-
ing while handling, after breakfast
mix your dough as you would like
tit and set in the ice box or in a
pan of snow while you are doing
your morning's work. By this time
the dough should be chilled thor-
oughly and will be easy to handle.
Take only shall quantities at a
time,
LO SNA LITTLE MONEY
fiBefore the day of Bonds—an undei;taking requiring a large mortgage was
nanced entirely by a Bank, an Insurance Company, or an institution having
command of great sums of money. These institutions used the money paid them
deposits, policies, etc., to finance the undertaking.
to Nowadays the mortgage is split into small denominations, called Bonds.
J This gives the public--you--the opportunity to participate in an investment
backed by the greatest possible security and paying excellent interest, often as
'high as 6%.
Let us send you literature on Bonds in general and
special 'issues from time to time: Send your name
and address to go on our.maik+rtg list.
SECU.RIT .ES
umuTED
,T:E•i:ET$i,' VERDICT,
f Teteh In the body," orde
foreman of a Texas coroner'
The body was laid before
The jury peed& a careful era
tion and gaesti:oned the attk
surgeon.
'"Where was he shot?"
"Square through the ilea
"Dead in the centre
heart V' •
"Right in the centre."
`."Who shot him?"
"Jake Daniels."
A. dozen witnesses declared
Jake fired the shot, and, Jake;
self admitted it. The jury coni
ed softly for some time.
"Well, gentlemenof the j
said the coroner, "what's you
diet I"
"Waal, jedge," answered;
foreman, "we've come to the',
elusion that Jake Daniels is
dandiest shot in these parts-
don't you: forget it."
THE UNION BANE EEC
YEAR.
Head Office to be Moved
Winnipeg..
The Union Bank of `Caned
its 47th annual meeting at th
Office in Quebec on Monday,
cember the 18th, 1911. The i
ing was a memorable one for
eral reasons. In the first place,,
reports preseuted by the Presi
and General Manager were the;
in the bank's history and reveal
the fact that several, progee
'
steps had- been taken during ''
year. At the meeting it was
decided to remove the Head 0
from Quebec to Winnipeg.
was deemed a wise move, owing
the fact :that out of its total of
branches the bank has 156 west
Lake Superior and 76 in Ontari
leaving only a comparatively .:f'
in the Provinces of Quebec -and:
Eastern Provinces. This decxsi
On the part of the directors
shareholders to move the Bet
Office to Winnipeg is a recognti'1
of the growing importance of
West.
The net profits for the year, , a
ter deducting expenses of mane
ment and making provision, jor
bad •and'.doabtful debts, arauxi
to $662,437 as compared. w
$451-;620 for the previous .year:
earnings for 1911 were at the
of 14'p.E tOIlt.'an the bank'
'tea- for 1 ,,
amounted'' iii $A.
balance at credit o
November 30th amounted to
000. These sums with th'
earnings for the year made a
of $1,199,1100 available for
bution. Of this large sum di
absorbed $361,,000 'the dux
$200,000 was transferred to h4'
account, as well as '$457,000 *Ube,
ferred to the same areount 'from
premium ori new stock, Asking a
total transferred to the rent ac
count of $65'7,000. The suiil of
$100,000 was' written off bank pre-
miums account and the officers'
pension fund received $10,000,
leaving a balance carried forward
of $71,957.
A further examination ' of • the
report shows that the bank is
making rapid progress in'every
.
department. The amount of riot
in circulation increased during the
year by $1,300,000, the total de-
posits by over $7,600,000, whi�li,
now stands at $45,939,000. Tile;
paid up capital increased by $911,
000 and the rest account by nearly
$600,000. The total -assets of ,the
bank now stand at $58,434.000 aa,'
compared with $46,555,000 for the
previous year. The increasein the
bank's capital, deposits and assets,
puts it in a position to do a larger,
Business during the coming year.
These increases also show a ,ghiil
in the onfldence of the puh'ie.
During the year the Union 3n,u
absorbed the United Einp1ra
of Toronto, which had ta of , e
branches in Ontario and a pn.1.1 u i
capital. of $559,000. Later in th.,
year it established a braaeh 3'n
London, England, being one of the
four Canadian ba,nks baying
branches in Great Britain. Alto
gether the bank has been sliowinn
marked progress and enters upcai
the new year equipped to do oven
better work.
- ..vet �.c, :. .tney fought
,nm unchained demons, and if
driven into a corner did not itis;
in tilt, use of their teeth and
cas in this same campaign
tlie. following incident occur-
.* warrior was killed
table. in the act of levelling his
en.,„,i;rom behind a cotton tree at
1,apt;,;Eattreau of the Legion at
point`'lblenic range, and as he fell
his rifles clattered down at the of -
!leer's feet. Capt. Battreau, see-
ing that it was an old Chassepot.
picked it up out of curiosity, and
suddenly became very much inter-
ested in it, He examined it very
carefully, and then exclaimed with
a gasp of astonishment:
. "Well, this is something like a
miracle! Here is the very rifle I
nand in 1870 during the war with
Germany ! See that hole in the
butt? That was made by aPrus-
sian bullet at Saint -Privet. I
could tell that gun from among a
million by that mark alone ; but
A BIRD'S NEST OF STEEL.
In the Museum of Natural
tory at at Soleure, in Switzerlan'`,
there is said to , be a hind's tie(
made entirely of steel. There ar
a number of clock -making shoe
at Soleuro, and in the yards.
these shops there are often fon
lying disused or broken springs
clocks. One day, a,' elookmak
noticed in a tree in his yard
bird's nest of ar appearane
Examining ' Ind that a pal
wag -1 tilt ', a nes
ent el °r. ,s. It ws
more ti'. across, a
a.„.,,7 • , s.. 4t,c, t,ia.
Thou8aoris Now Use Els
LOW. Coni, Ccs h
A Family Supply for 811c, Saving You $2—
The Quickest, Best Thing You Ever
Used, or Money Refunded.•.
The prompt and positive results given
by this inexpensive cough medicine have
caused it, to bo used in more homes la
• the 'U. 9. and Canada than any other
cough remedy, It, gives instant relief,
and will usually wipe out the most ob-
stiriate, deep-seated cough inside of 24
hours, It quickly succeeds, even In
whooping cough and croup.
A. 50 -cent bottle of I''inex, when mixed
'With' 'homrie-made, sugar syrup, makes 18
ounces—a family sApply—of the moat
pleasant and effective cough remedy that
Money could buy, at a saving of $2. Ilasi-
ly.prepared in five minutes --full direc-
tions in package.
Children -take 1?]ilex,Cough Syrup wil-
lingly) becauso it tastes good. It stimu-
lates the appetite, slid is slightly laza-
fit; features. Splendid
t tickle, bronchitis,
suecessfut remedy
oub)e,
and 'highly coitcen-
Imperted Norway
and It rich in guaie,-
1rai healing pine elegy
it with sugar syrup
W 16 -es. bottle, and
men Imitated, but
r nothing 0180 will
Its. The gen1?ine le
lute' Satisfaction
iflcate of, guar -
rank e, I'.'think, at -is tee finest
fighting, force the world has ever
seen. Its . value to Trance is not,
however, to be measured by its
value as a fighting' force. The>
prestige of the Legion is so great
with the ordinary French soldier
that it occupiesmueh lilac ,-same
position in the 'French army of to-
day as the famous Old Guard oc-
cupied in the army of Napoleon.
and the presence of a battalion of
the Legion among a force of ordin
dry French troops will convince
every soldier in that force that he
is on the winning .side."
THE MANSION HOUSE.
The Mansion House, which will
be the future residence of the new
Lord Meeor, was built by the eld-
er Dave 1 etween 1739 and 1753,
says the Westminster Gazette. This
prolonged delay was caused by
the discovery of numerous springs
of water in digging the founda-
tions, which bad to be based upon
piles. Originally the facade had
a heavy attic story commonly call-
ed "The Mare's (Mayor's) Nest."
The famous Egyptian Hall, which is
the principal room, was so styled
because intended by the architect
to reproduce exactly the Egyptian
Hall described by Vitruvius, The
cost of the Mansion House, £71,000.
is alleged to have been•tpartly de-
frayed from fines inflicted upon
Nonconformist members of the
Corporation for not receiving the
the sacrament according to the
rites of the Established Church, as
required by the Corporation Act
of Charles II.
CLEVER NORWEGIAN WOMEN.
In Norway women have the fran-
chise .and may themselves be elect-
ed members of parliament. Even
the police force is recruited from
women as well as from men. She
can use use a ski as skilfully and
as boldly as any mail. She can
swim like an elder -duck and can
manipulate a sailboat like a, pilot.
Her intelligence is great, and,
while she is so accomplished an
athlete that we might expect to
find her an Amazon, she is, on the
contrary, daintily feminine, and she
can fluently express herself in sev-
eral languages. Her features may
not be regular, butshe ie the em-
bodiment of health _f d s. 'knows
how to dress so, r
physique look,.
her costume Th:
than a Gal
11,atS age, .-our
1♦
fifty years from ,no ;b, aur . Ch 1
(Irma 'then'"grown"";»X171
now sing over '-thee songs of Om
oth, and With just the same joy
may be. But I think they wil
then be singing too some of th,
songs that pleased us, the song
that go down through' generatiol
after generation."
IN AND AROUND THE DAIRY.
Every dairyman must, if he evil
succeed, employ a detective in hi
dairy barn—a Babcock tester. Thi
detective is absolutely honest, show
favors to nobody and always record
facts from all the facts. The pool
COWS stand no chance against it
If we allow buyers to come int
our herds and pick out the bes
cows how can we ever expect t
build up a profitable dairy?
We knew a farmer who • a,,lwa_v,
cured his calves of scours by break
ing raw eggs into their mouths.
better way, however, is dried blow
fed in moderate quantities at th,
start.
No matter at what price you eel
the poor cows it is generally sal
to say you get all they are wort
and a little more, particularly
she is to be classed as a dairy an
mal.
Never milk the cow with. w
hands. No more filthy habit is.'
dulged in than that of milking
the hand in order to strip the to
Milking should always be done w
a full, dry hand,
DOESN'T STOP AT LOT LIN
"Is he a gond neighbor?”
"Splendid. He's not at all sti
about how far he shovels snow
the sidewalk."
Hardup—: "You see tills hall
lar ?" "Yes, Why 4 Is there
thing extraordinary about
Hardup—"Bather 1 It's mine
"I shall leave footprints on
sands of time," said the ide
"What for i" asked ,the cru
practical person.. ".1:,Nebody�
want to go 'round looking for.
prints. Wbat we want to do
posterity is to help build some
roads."
Make Stove Shine.—Mix blac
with either cold coffee o'^
and apply to stove with:b
t oIoth. After blacking
ush until polish is dry,
fth Hann»r....:,. .--.,