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The Seaforth News, 1934-01-11, Page 7•v If 5 • THURSDAY, 'jiANUEARY 11, 1934 THE SEAFORTH NEWS. PAGE SEVEN _� _ speculation precisely e:minen.t o,f knows effects r0anntunity. about sooial ,mined stock. This market -,_ thespeculator,supplying exchange does Not assist in ling, and speculative con- ening gambling, = a�an-�u��ra�nn�rG r ,hen who buys a share for X200 be- cause he thinks he can sell it to some- capital funds ,to industry. I have made a study df the stocks of innutn- tracts could not he enforced if they were gambling contractts. But, while Services We Can Render Services Render In'the time of need i'ROTECTIO1 o n au�ru—rr�rn--un I1one ■ Dup j j Monthly I Statements JJJ �• ii1 Stat m. _ • a.cate1 I m c I o else dor .12510 in a week or a month must be seen as performing a very different kited of act from the man who puts his money into a business and looks to the business ,for his pro- fits. One man is divesting in alt cuter- The other is speculating in stocks. I lay stress- on this because when- ever an apologist of the exchange sets out to defend the ra practice of specula- tion he promptly confuses these two operations. He tells how the 'building of our early railroads, our great in- dustries, were all the work ,ref the men erable corporations and find that for the most part these stocks yield al- most no actual capital to enterprise. Taice the steel industry as an ex- ample, The three great units are 'United States Steel, 'Bethlehem !Steel and Republic Steel, All of these tor- poratioas were farmed by mergers. When the mergers took place; the stock in almost every case.rvas issued without any capital contribution what- ininterested, ever. The plants were turned for bonds and preferred stock. The cam- mon .st'ocks were passed out as so' much water. Had they never been they may succeed in evading the eco- le,al consequences of gambling, they cannot evade the economic and ethic- al. A game of change is a game of chance no matter how you disguise it, In Wall street it takes the form 'of buying artd selling. stocks, In. Florida some years ago the race track gang• tried to get around the anti -gain- bli'ng laws by making every bettor on a horse buy a mythical share own- ership in the horse. IWhei the horses went to the post. hey were just a group of animals owned in theory by the large groups of people who had is your best !friend. Life Insurance —To protect your LOVED ONES Auto Insurance— To protect you against LIASffLRT'1 t.0 PnB.L1C and their PROPIERT'Y Fire Insnrance— To protect your.FIOME and itprise. CONTENTS. Bickneas and Accident e— Insurando protect our IN Any of the above lines we can�give you in strong and reliable companies, f call or write, E. C. CHAMBERLAIN BDF'SURANCE AGENCY Phone 334 Seaforth, Ont. I who speculated—who risked their issued the steel industry would bet on them, All the bets were I not put • i i m We can save you money on Bill and - Charge Forms, standard sizes to fit _- ^ledgers, white or colors. Also best quality Metal Hinged Sec- tional Post Binders and Index. I o ; ■ ■ strength in the hope 'of great rewards. We may well grant that the risks and labors .of our industrial pioneers pro- ducecl our present industries. But that was not security speculation, iOtir early railroads, our oil indus- tries, our motor industry, were all in- itiated and built to the highest levels by pure im'vestors, ,mei who put their money and energy into the industries, When those industries were develop- cd, it was then that the promoter came along, united these vast enter- prises into countless mergers, 'without adding anything to them in either ' have been deprived of a dollar of ca- pital, Of course, in the course of time these stocks have come to have a,.value backed by the earning power of the c company, 'But this value has come out of earnings, .But very lit_ . tie of it has ever been contributed by a common stockholder paying any money into the coffers of the corpoea- tion, It may come as a surprise to -many, but it is fact, that the great bulk of the real capital for industry is sup- plied by. bonds and preferred stocks and not by common is together and constituted the purse on the race. When a horse won, the People who 'owned hint wan. The purse was distributed among all the owners of the horse, They did not bet. They merely collected the prize which went to the group of horse owners, :Now you can disguise a real gambling operation in a fiction like that, but it is still gambling, and so is ninety per cent of what takes place on the stock exchange. . Every state should- enact a law and congress should' make a similar en- actrnent would t He M McInnes chiropractor Electro Therapist — i4'assage : Office — Commercial ,Plotel Hours -Mon. and ,Thurs. after - noons and by appointment FOOT CORRECTION by manipulation—Sun-ray treat - ment Phone 227. IiRey mo- or plant, and :issued vast oceans stocks, which the medium in which almost all the which do away with margin buying and short selling of of watered stocks against then, listed speculation on the exchanges takes common or any other kind of stocks The.Seaforth NeterJ ` d 84 these on 'the sdock exchanges and set the public to speculating in thein. Did Andrew Carnegie or John 0, place. This is not all. It would not be pos- sible to emit the overwhelming floods in corporations. Then our corpora- tion laws should be overhauled to prohibit the manipulation of corpor- .ere aga(,l•There' Phone I m Rockefeller or Henry Ford build their giant industries as "security speculators?" - 'Andrew Carnegie built the Carne- of watered stocks were it not for the speculative machinery of the ex- change. Stocks as a rule are not sold publicly, Bonds are. The stocks are al structures dor speculative and pro- motional purposes, Thee our hanks should be driven ruthlessly out of the speculative markets. The exchange One of the largest cargoes of lumber shipped from Saint John on the Canadian Atlantic sea coast was forwarded to Great Britain •,,.�rn�.r„rn�uu�an��+urn--mt��rrl--ung°p ;.,ie Steel Works, He brought it to the highest development. generally issued to the insiders. This is might then be maintained under gov- 996 feet, mostly ofideals.Y 3043,- .All the stock belonged him what happened in in United States ernmeet auspices as a place where Output of niekol in Canada in to and a few paatners. The actual money value of the whole Steel, A half billion dollars of cam- mon stock was sold privately to the owners of shares could. come to find buyers of shares, with the whole nest 1932 totalled 3Q327,963 aounds valued at V1,179,862. Production A DOLLAR'S WORTH to business was n'ot over $75,009,0CD. Car- negie himself and his partner Frick appraised it at 1160,000,000 and they S issued bonds against it for that ant- oun•t. Such stock they issued insiders who put up nothing for the shares, Then they were listed on the stock exchange. Then a market g manipulator (in this case the rotor- ions James R. Keene) of speculators and gamblers driven out of our financial markets and to our race tracks, our crapcamnared parlors, hey pool roosts and keno hells where they belong. during the first six months of 1938 amounted to 22,802,434 pounds es with 21,162,786 pounds for the •corresponding period of 1932. — Clip this coupon and mail itwith $lfor a six weeks' trial subscription as was pure water. Then Pier- was employed to for Meking Every home at some future date THE CHRISTIAN SCIENCE MONITOR Published by TR£. Othuo XSN Samos PnowsBoor=O BooI Boston, Massachusetts, u. s. A. In It you will find the deny good news of the world from its Boo ssoCto5 writers, as well u departments devoted to woolen's and : ohtl wet Interests, sports, music, Mince, eddcation, radio, oto t ou willess's clad to welcome into your tomo so fenrloes an ad 00000 of 50000 and prohibitioao. And don't m1w Snubs, on: nos. and the sundial and rho other textures. along came J. pont Morgan with his United States Steel Corporation. He took over Car- negie's bonds and stock—real value only $l160,000,G00—wild gave him 314G,- 'OGO�o00 in bo'n'ds of the new company '$1440,000,000 make a market theta. a market for a stock is a treat little process, The manipulator gives or- dens to many brokers to buy and to many others 10 sell. He keeps .chs++g- ing the buying and selling prices to TOWARD PERPETUAL MOTION Perpetual motion has long been an aspiration of visionary inventors, It has .been, practically eliminated as a Possibility ill the thought of most will her the wOiheating” will pass out'd ve "air .conditioning and of use among home owners, J. J. Donovan, General Electric Com- Com - pony expert, told a largely at- tended meeting of the Electrical at the Royal York hotel, To- ` TRE ORRIETIAN 9oIENCE MONITan, Sack Bag9 BEation, Boston, ffissa. t . one dollar t5) and �uClub in its stocks—stocks suit the exigencies of his campaign, serious workers. Yet a new clock has just been developed ionto, recently. Please send the a six weeks' triol auhscrintlon. I eneloso which represea•ted. nothing, All told, Morgan issued hall a billion dollars always raising the bids a little. This produces an appearance of activityin in France which comes as near to being perpetual mo- Steep grades the Rocky Mountain areas (Nnme, please print) sfaculty worth of 001001011 stock in the Steel the stocks and at the same time acts tion. as anything yet devised. This clock employs preefsented no dif- to the Royal Scot, clack' British flyer, o,,ry`°�e (Andress) oo �f'4°,6e. ? ,y corporation to various persons for which not one dollar was paid. It was to push its price up. Outsiders see this and are induced to .come in and a source of energy which seems to have been neglected en route to Winni- peg and the east from Vancouver recently. The all -British train is P ,. (Town) (state) _-. - --- - . ' A-' A-, not until all this was done—until the buy. This, of course, is all helped hitherto—the temperature, Tempera- ture is attracting great popular enthu- - „ ,�,. _ A - ..� A -__A -..-a a.w-..-.-- solid buildifng of Carnegie, the build- along by the proper publicity. As everywhere and it varies ev- eiasm throughout Canada on. its ing of a constructive investor, was ac- this trading goes along, the insiders eryw'here. There is no normal lora- return Journey to Montreal. ,4 COASTAL- STEAMERS (continued from Page .Three) seven pounds a week for doing duty with no hour limit seven .days a week and fifty-bwo weeks in. a year. )Like all his crew he is possessed by his vessel and when .she needs' him he has to be there. There are no. hours on the social effects of speculation. Neverthe- complished that speculation in the shares of his less I came to the conclusion some great work, .merged info five years ago that I knew nothing the Steel corporation began. about it, that all rine arras; 01 informs_ 'The great argument for speculation tion I had collected was worthless—that if it did not exist no one would ever put any money into corporate without any foundation in fact—just ever a collection of mere statements re -because he would not he able t'> panted aver and over again, There- Sell it when in need of money. This is gradually unload their stock tuttil the public has most of it, This is the al- most universal way of disposing of stock in large mergers. Alnnost in variably the stock represents no capital contribution to the corporation or a very small one compared with the price at which the insiders un_ tion where the temperature will not change at least one degreeMontreal's a day. It usually varies over a much wider mar- gin. Yet this new French clock will operate 120 hours on the amount of energy it gets from a single degree's variation, The The method by which this timepiece "million dollar hole" on Dorchester street, where a rail. way terminad was to have been built, will become the world's most costly sunken garden, iY Canada sees eye to eye with a couple of Montreal aldermen who advocate beautifying the gash with flowers and shrubs. coast. fore, I began to look for these essen- an argument for a stock exchange, but tial facts.'To my amazement I found not for speculation, There ought to be Toad it. The exceptions' to this. were the in- operates utilizes a U-shaped glass I Canadian Pacific employees un - Canadian tube, one end of which is inaulated der 21 and minor sons of em- Whenever an outcry goes up against' speculation there are always .plenty of very respectable people..tocome ,for- ward with a warning against .ill -ad- vised action which maydeprive the effects spec- that no 010 had ever taken the trouble an exchange, at should be a place to to collect their, which a moi 10110 o•tvns a share of It is an amazing thing that no first stock in a corporation could go and class economist has ever taken the find a buyer for it, if there is some trouble to examiife in a scientific spir- other Person who wishes to invest in it this important henrrmettau of our the stool: of that corporation, p p' 'economic life. At intervals the The exchange officials' contend, vestment trusts in 023 and 119129, They sold publiclylarge quantities of g stock. But this stock brought no money into productive business. All the money was used merely to buy other ahead listed stocks, Y The speculative machinery thus against temperature changes, In this Ployees are again offered the op - tube is mercury. As the exposed end Dortunity of two University of of the U comes do contact with the ti iveTeesamination scholarships by pjls slightest variations in temperature the an announcement by Grant.$3ali, differences between it and the insulae- senior vice-president of the com- ed end cause the mercury to move ov- pony' o mke ap have until May1, 1934, to make application. er to one side or the other. This public of the beneficial •af oration. Grave abuses perhaps have appeared upon our markets. These rbu'ses, we are: assured, ought to be atred, of course, but alas! what per- son has 'appeared wise enough to per- tom the necessary surgical operation which'will cut away the evils without tilting the patient altogether? govern- ment has investigated speculation and however, that without speculation the stock exchange. But the investigation exchange,w.ouid he inefficient, To be has generally limited itself to more or efficient it must have a continuous less sensational abuses by individuals 'market. And to have a continuous rather than to an examination of the market you must have speculation, underlying ecoisomic ,Forces. It is for Chi; invoices two propositions, One this reason that 1, began to collect that you must have a continuous mar- material with a view to forming an in- ket, the other that speculation is es- used to feed new shares to the public is used also by all sorts of advent- urers to manipulate palate the price of in- numerable shares. It is, common' to say that our market is now too big to be manipulated by env man or set of men. Of course that is just trifling with the 'subject. No man could go change in the weight of the mercury Twenty-one months of training tends to make the U stving,likea pen- doc reeognizod shop, junior ma- coursetlon 9r its equivalent and a durum, and this swinging stores up course !n an academy. to be estab- energy in the clock. It is said to be listed in Toronto is the ordeal for absolutely silent and, getting all the novices for Ontario registration as power it needs from the temperature barbers and hairdressers, it was stated at a meeting oP tonsorial changes around it, it is good for an in- arbiters at the Royal York hotel, definite period. Toronto, recently, Power whenever an investigating com- nittee or a public body wants to know tbout speculation, it sends for the ,resident of the stock exchange of o01e�brokers or a banker or two and >robes their vast reservoirs of knowl- :(lge.'The assumption,isthat tate pres- dent of the stock exchange •or the tro'kers know old about that phase of which the investigator is telligent opinion about the subject. Inn sential to that. But why must there the last few years •with so many agen- be a continuous market? .Why must it cies for •collecting data, it has been he Possible for a man ,who invests ,in possible to assemble a mass of inion; a fixed investment to be able to find at an minute of the daying npation bearing on the subject. And y a buyer ,tor from this I have come to the conclu- his stock?' Why should it be possible si'on that speculation in securities per- for a buyer of stock to be able to pick forms no useful function whatever and up his telephone, ring up his broker that it should be abolished. and order him to sell his shares and d3y speculation in securities I Mean thus be rid of them in ten minutes? in and manipulate the whole market, Rut he can manipulate the prices of individual stocks, And in Wall Street all the time are groups of men. act- as Pools as well as large num= hers of individual operators, who are constantly at work manipulating prices up—usually up—in syndicate drives. The two most serious features of to run a clock is one thing, Five ports hitherto not w and power for commercial purposes is oli the . P schedule of world cruise liners another, but it is not beyond possibil- have been added ' to the 1934 ity that some means of taking advan- itinerary of the Canadian Pa - tage of the air temperatureeff£c liner empress of Britain variations when she leaves New York, may ultimately be developed which January, 4 next. They are Sema- will form a free and continue, .1 source rang, Java; Boeleleng and Padang of power for all purposes. At least Bay' Island of Bali; Penang, this French clock does seem to bringStraits Settlements• and Zambo- ansa, in the Sulu Archipelago, something like perpetual notion much • nterested in. They know indeed •h.ow o play the market, how to list stocks, vow to .borrow money on them, when, within certain limitations, , to buy tacks and when to sell them and so ortth. mut all this is not what we are in- erested in now. We want to know vhat speculation is doing to cow econ- ,mic machine, what fruits it is pro- hieing in our social life: And these are the buying of stock or bonds with the What becomes of the function of 0w•- purpose of making a profit out of the nership? 4V'hat_becomes of the respon- ?and change in the market price of those s;biJities of ownership? Is not this one securities. 'That is important to rein- of the reasons why shareholders do ember, not care a hoot what directors do When a man puts up ten thousand with their companies and their prop- dollars in a new enterprise and re- erty? IDE' the corporation doesn't suit ceives stock.: for his share, and does it them, why—a jingle of the .phone, an with the intention of supplying funds order to the broker, and the stock is they to the.enterprise in the expectation of sold, The shareholder has stepped some day that enterprise by prudent from his responsibilities as an owner speculation are, first, the effect on the management OF our great for-! poratfons, and, secondly, the effect upon our banks. Corporation managers and directors can make ten times as much in the market with their own stocks and the stocks of their colleagues from whom obtain inside information as they can from their.salaries as corporation executives, The result is that many nearer. In making a choice between The mechanism is absolutely silent transportation by tall and by road, extremely shippers should consider what the y sintpie. There are only railroads are doing and have,done 10 wheels in the clock, and their move- for their advantage,. G. G. Om- ment is so slow that it is estimated manney,s development commis- several centuries would be required to tooner, Canadian Pacific Railway, told the Rotary Club of Lyndon - wear them. out: The manufacturers vine, Vt., recently. He cited many claim that the clock runs continuously cases where the railways had first without being wound or otherwise Inventoried, then developed •'he looked after, in all weathers compris- t.iral resources of the cortin- ing temperatures ranging between the points about wltdeh bhe president of the ex'ch'ange and is doughty brokers know next to no- king. Ws do not g'o to manufacturers pills and' bandages .and gargles., cher we want to know about the hy- foods mtanagoment may grow into a large 0i a great entetlprise which employs corporations and proofitable business, he is not spe_ thousands of men and serves hnntl- dilating in securities. He is investing, reels of thousands of the •community, There is a certain speculative element I attribute this indifference of the than in his act, lie takes a chance. There shareholder and the complete cxtinc_ is a large risk. But that is only an in- tion of the functions of ownership to of cident, His is to collaborate this curse of marketability, its are run primarily as manufaotories of stocks and instru- ments for stock market profits ,rather as public producing machines, As for our Mlles, the crying curse. the ,American banking system is almost complete drift from four degrees below .and' 122 degrees I,1'he Many -Purpose Oil.—,Both_ in above zero Fahrenheit. If is not de- the house and stable there are scores Pendent on electric current for its op- of uses for. Dr. Thomas' Eo'lectric 011. eration but the movement with each 'Use it for cats, bruises, burns, scalds, slight change of temperature winds the pains of r'heumatis'm and sciatica, the clock by means of a ratchet wheel. sore throat and ohes,t, ,Horses a;re H., largely lemic effect of and medicines, V'e go to clinical experts, Pt does not o.lIow that a scan who has been a nanufaeturer :af sausage. all his. - life anylbbing .about the therapeutic 0,1 chopp,ed horse meat on t'he to know Purpose by Putting up; his money in the level- But it is not true that .unless' mei the opnleit of a productive business and find it ready and .instantaneous mar- 'Banks toget his re'w'ards out of the business. ket for their shares they will not in- Whatever speculation may.' be in this rest in enterprise. I,1 is only a few the Oct,Is iit the enterprise and not in the Years ago that a hank president was and securities issued by it. bemoaning that still preferred ciirity away, primary functions of banking. have fallen into the hands of Bien interested in securities and hence funds of hanks have come more more to unci their way into se- loans. There has been a False able very to similar ailments Plant 'Soybeans in Rows and mishaps as afflict mankind,and During the past season which was are equally amenable to the healing notable. ,ter lade of rainfall, growers influence of this fine old remedy of soybeans'will have noticed the val- which has made thousaeds of firm tie sof 'cultivation to this crop. The friends during the past fifty years. practice of Harrow has been to cul - Lf you want ,people speculation—its economic andThe security speculator is very dif- real estate investment to corporate theory effects—then you must go to Iferent. die is the pian who seldom if investment. 'People still :put• countless is he cUiseical invesnigatar 'wh'o has ex -I ever puts Malley into any enterprise, millions' into small industries, into investments Inc necessary data. ;dor remember When you buy a share. real estate,'into real estate bonds and is !Rene het Inc conlfess that when the of stock in Wall Street you cio not 'lite innumerable corporations .not '10 nquirer alter the troth goes to the, add a diene to any productive business, listed on any exchange—in'vestments the ainical investigator the is doomed to The moony represented by that stock for which there is no immediate and lis:appointme•nt, I attempted that my -:ds already in the business, ,Perhaps -it ready market. self years ago. iI have been for many' is $11100 for each share. If you pay $200 The . most effective answer to this g• ;ea.rs -a student of she economic and � for that share the money gpes into : whole argument, however, is that t'lte the pocket of the .man who sells you speculative tnectnanism of the stock •_ I that these are liquid. But this a delusion. Stocks are fixed capital and they (lo not belong bank portfolios. Banlc funds ought be used as the, working capital of community and as nothing else. One more '.point, The stock ex- change has '.expended •hundreds of thousands of dollars to prove that speculation isnot gambling. The rea- son is 'obvious. There are laws coy- tivate soyibeans similar to corn and a IOtat'ario Vegetable Growers''Con- clean crop of good ;quality soybeans vention, Toronto, 'Feb, 2. has ,always resulted. ,When soybeans 'O,ntario 'Plowmen, Annual meeting, are planted in rows 218 to 30 inches Toronto, !Feb. 7, ' apart, this beneficial cultivating may Ontario Seed Growers, ;Annual' be one. 'Tails distance of • planting meeting, Toronto, Feb. 8. would alsoe he en .advantage over the Ontario Ass'n of Fairs ,and Exhi solid drilling of the beans,in that the itions, Convention, 'Toron.to, Feb. 8-9. Plants are alda4=eil•"'"in(ire space in Ontario llJorbicultural ,Association, WhIch,. to develop 'and produce 'abun- 'convention, Toronto, Feb. 1'546, dant',beans 11 good size. Canadian 'Ayrshire. U3reeders, Tor onto, 'Feb. 7.