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MAKING SAFE INVESTMENTS lI'HE PERSONNEL OF DIRECTORS AND MANAGEMENT A MOST IMPORT- ANT CONSIDERATION. Net Earnings Must be Examined Over a Period of Years to Determine Whether Company Is Going Ahead or Not â€"â€" Should be About Double the Bond The last few articlues have dealt with the matter of safety of industrialbonds from what, for lack of a better term. we may call the physical sideâ€"features that 'can bn learned fromâ€"or at. least should be shown tnâ€"the balance sheet. There are two scarcely less important features, however. that must be looked into to complete the determination, not. so much. perhaps. of‘ the immediate safety of the bonds as the certainty of the interest, and the outlook for the future. The articles contributed by "Inventor" are for the sole purpose of guiding pros» pectxve investors. and. if possible of sev- ing them from losing money through lacing it in "wild-cat" enterprises. The mpartial and reliable character of the information may be relied upon. The writer of these articles and the publisher 9! this paper have no interest: to serve in connection with this matter other than those of the reader. The proposition between fixed charges and net earnings should be carefully noted. Net earnings should equal about twice the bond interest. taxes and sink- ing fund, for a. bond to receive favor- able consideration as a. safe investment, except under unusual circumstances. where the nature of the earnings are unusually steady, or the security un- usually substantial. The nature of the product is important. A company pro- ducing an article of fluctuating or un- certain demand should not issue bonds. Opportunities for successful competition or substitution must be wnsldered, and, if- possible. bonds should be avoided. ’l‘he first. is the question of “net earn- 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 a number of years should be examined. Most advertisements of industrial bond offerings contain some such statement as thiszâ€"“The net earnings during the past five years average 3 , which is over four times the bond interest.” This statement is interesting. but the care- ful investor should enquire further.‘ It would be much more valuable if the information were more complete. The net earnings for a. number of years tells a. very much more interestingâ€"and in- structiveâ€"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 hut is used merely for illustration.â€" 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. All this in- formation is most valuable, an it signi- fies a' steady demand and a. growing business, which indicates that fixed charges of a company similarly situat- ed would be regularly met. There is nothing like 21 “Tea P0?” test at your ovyn table to prove ‘lts - sterllng worth! TEA “Kiways’ and Easily the Best” BLACK, GREENLor Sealgd Airtight Packages Only Interest. A third point is management and con- 11, Before the day of Bondsâ€"an undertaking requiring a large mortgage was financed entirely by a Bank, an Insurance Company, or an institution having command of great sums of money. These institutions used the money paid them in deposits, policies, etc., to finance the undertaking. ‘1} Nowadays the mortgage is split into small denominations, called Bonds. 1] 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%. BANK / , I: a R O L ZSFLQ’PLbl-FEALTIION LIMITED $13 35”}; A LITTLE MONEY Profits 1906 were $191,552 -' 1907 " 195.650 “ 1908 " 182,725 “ 1909 " 501.466 “ 1910 “ 329,516 OF F MONTREAL B E“ M. WHITE (By "Investor"? Manager Let us send you literature on Bonds in general and special issues from time to time. Send your name and address to go or} our mailing list. BUILDING SECURITIES trol. Few questions are of greater im. portance in investigating the strength of an industrial company than the re putation and experience of the men in charge. As an American writing on this subject. puts it: “The ability and in- tegrity of the men who control the policy of the company and the efiiciency of the operating oflicials are the principal fac- tors in the success of an industrial un- der-taking.” 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 seeâ€"if the names are not familiarâ€" on what other boards they act. If their previous afliliations 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. wellâ€"known as a successful manager of this sort of business in a large way. been announced as managing- director of the enterprise. 'In connection with steamship propulsion the average man is apt to speak very glibly of so many hundred or thousand horse-power. But it is extremely doubtful if one person in a hundred really has a due appreciation 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- press Cunarder 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 produced all the day round by the wonderful turbine mach- inery of the great ship. of the suggestions here given and his own common sense he need not approach the matter with misgiving. To Chill Doughâ€"To prevent cookies and doughnuts from stickâ€" ing While handling; after breakfast mix your dough as you would like {it 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 small quantities at a time. So much for the question of safety of industrial bonds. The reader may won- der what. degree of safety attends to this class of investment. If it were pos- sible to make a. general statement, as in the case of municipals. this prolonged discussion would have been unnecessary. 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 QUICKLY STOPS COUGHS. CURES COLDS. MEALS THE THROAT AND LUNGS. 25 CENTS SIIiIolIZs Cm EXPLAINING HORSE-POWER, MONTREAL-QUEBEC-H ALIFAX-OTTAWA LONDON (ENG) YONGE AND QUEEN STREETS TORONTO ‘ “Welf, gentlemen of tfie jurl'y,” said the coroner, “what’s your ver- dict 2” The body was laid before them. The jury madfe a. careful examina- tion and questioned the attending surgeon. “Where was he shot 2” “Square through the heart.” “Dead in the centre 0’ the heart?” “Right in the centre.” “Who shot him 2” “Jake Daniels.” A dozen Witnesses declared that Jake fired the shot, and Jake him- self admitted it. The jury consult< ed softly for some time. 4' “Waal, jedge,” answered the foreman, “we’ve come to the conâ€" clusion that Jake Daniels is the dandiest shot in these partsâ€"and don’t you forget; it.” Head Office to be Moved ‘to Winnipeg. The Union Bank of Canada held its 47th annual meeting at the Head Office in Quebec on Monday, De- cember the 18th, 1911. The meet- ing was a memorable one for sev- eral reasons. In the first place, the reports presented by the President and General Manager were the best in the bank’s history and revealed the fact that several progressive steps had been taken during the year. At the meeting it was also decided to remove the Head Office from Quebec to Winnipeg; This was deemed a Wise move. owing to the fact that out of its total of 242 branches the bank has 156 west of Lake Superior and 76 in Ontario, leaving only a comparatively few in the Provinces of Quebec and the Eastern Provinces. This decision on the part of the directors and shareholders to move the Head Office to Winnipeg is a recognition of the growing importance of the West. In the Museum of Natural Hisâ€" tory at Soleure, in Switzerland, there is said to be abird’s nest made entirely of steel. There are a number 'of clock~making shops at Soleure, and in the yards of these [shops there are often found lying disused or broken springs of clocks. One day a cloekmaker noticed in a tree in his yard a bird’s nestof peculiar appearance. Examining it, he found that apair of wagâ€"tails had built a nest entirely of clock springs. It was more than four inches across, and perfectly comfortable for the birds. “Fetch in the body,” ordered the foremap qf a. Texas porroper’s jury. THE UNION BANK A RECORD YEAR. The net profits for the year, afâ€" ter deducting expenses of manageâ€" ment and making provision for all bad and doubtful debts, amounted to $662,437 as compared with $451,620 for the previous year. The earnings for 1911 were at the rate of 14 per. cont-L on the bank’s avâ€" erage paid-up capital for the year. The premium on new stock issued amounted to $457,000, while the balance at credit of account on November 30th amounted to $80,- During the year the Union Bank absorbed the United Empire Bank of Toronto, which had twelve branches in Ontario and a paid up capital of $559000. Later in the year it established a, branch in London. England, being one of the four Canadian banks having branches in Great Britain. Aitoâ€" gather the bank has been showing mgrked progress and enters upon the new year equipped to do even better work. Never give up horse. Even a unarmed man has a fightlng chance. 000. These sums with the net earnings for the year made a total of $1,199,000 available for distriâ€" bution. Of this large sum dividends absorbed $361,000, the sum of $200,000 was transferred to the rest account, as well as $457,000 transâ€" ferred to the same account from premium on new stock, making a total transferred to the rest ac- count of $657,000. The sum of $100,000 was written off bank preâ€" miums account and the offi-cers’ 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 notes in circulation increased during the year by $1,300,000, the total de- posits by over $7,600,000, which now stands at $45,232,000. The paid up capital increased by $914,â€" 000 and the rest account by nearly $600,000. The total assets ,of the bank now stand at $58.434.000 as compared with $46,555,000 for the previous year. The increase in 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 gain in the confidence of the public. A BIRD’S NEST OF STEEL THEIR VERDICT. “I have held a commission in the British army and I have served in the ranksyI have been atraLveIler in strange places; I have lived a. life full of vicis‘situde of sorts and I was for five strenuous and not unha py years in the French For- eign. _egion.” Mr. Martyn joined, like many others, because of some sort of scrape at home. So probablydid his first and firmest friend in the Legion. “Ivan Petrovski.” That was what the young Russian called hmlself, although he may have been a, nobleman for all the auth0r ever could learn; a likable character. absurdly generous, hot tempered. dictatorial, and above all audaci- ous. With this paragraph Frederic Martyn opens an account of his ex- periences as a. member of the French Foreign Legion. He writes of campaigns in French Indo- China. and against; the Dahomey- ags, and in both cases the fighting qu_ ofbey desperat'ie. ' W‘The uniform of these female warriors,” says the author, “was aeort of kilted divided skirt 0)? blue cotton stuff., This garment barely reached to the knees. It was supported at the waist by a. leather belt which carried the cart- ridge pouches. The upper part of their bodies was quite nude,’ but the head was covered with a, coquet- tish red fez or taboo‘sh, into which was struck anAeagle’s teether.’: “A battalion of Amazons attack- ed them and gave them a very rough time indeed, but the tirail- leurs stood their ground until re- enforced by some marine infantry. Any one inclined to sympathize with the Amazons on account of their sex and look upon the combat be- tween them and our men as unequal may take it from me that their sympathy would be misplaced. “These young women were far and away the best men in the Dahomeyan army, and woman to man were quite a match for any of us. They were armed with Spenc- er repeating carbines and made much better use of them than the men made of their rifles; and for work at close quarters they had a small, heavy backed chopping sword or knife, very much like a South American machete, with which they did great execution. They fought like unchained demons, and if driven into acorner did not disâ€" dain the use of their teeth and nail:s_”V Frederic Martyn Tells of Advent- ures With French Foreign Legion. Perhaps the campaign against the Dahomeyans is the most interestâ€" ing. There, at; all events, it was thgi‘ig‘jzhe Amazons figured. In one place he gays of Senegalese tirailleurs. . A Dahoxmeyan'warrior was killed while in the act of levelling his gun from behind a cotton tree at Capt. Battreau of the Legion at point blank range, and as he fell his rifle clatte‘red/down at the ofâ€" ficer’s feet. Capt. Battreau, see- ing that it was an old Chassepot. picked it up out of curiosity, and suddenly became very much interâ€" ested in it. He examined it very carefully, and then exclaimed with a gg_s_p__of astonishmenta “Well, this is something like a miracle! Here is the very rifle I used in 1870 during the war with Germany! See that hole in the butt? That was made by aPrus- sian bullet at Saintâ€"Privat. I could tell that gun from among a million by that mark alone; but It was that the thousands Now Use This low-cost Gugh Syrup A 50-cent bottle of Pinex, when mixed with homeâ€"made sugar syrup, makes 16 ouncesâ€"a faml'ly supplyâ€"of the most pleasant and effective cough remedy that money could buy, at a saving of $2. Easi- lylprepared in five minutesâ€"full direc- tions in package. A Family Supply for 50¢, Savlng You $2â€" The Quickest, Best Thing You Ever Used, or Money Refunded. The prompt and positive results given by this nexpensive cough medicine have caused> to be used in more homes in the U. *S. and Canada than any other cough 'remedy. It gives instant relief. and will usually wipe out the most ob- tinate, deepâ€"seated cough inside of 24 hours. It quickly succeeds, even in whooping cough and croup. Children take Pinex Cough Syrup wil- lingly. because it tastes good. It stimu- lates the appetite. and is slightly laxa- tiveâ€"both excellent features. Splendid for hoarseness, throat tickie, bronchitis, etc” and a. prompt, successful remedy fogincipient lung trouble. H v- u. DA;UMIJ by; u, toerBuJ If no}; "gé-Ildl ‘to" The Pinex (10.. Toronto. Ont. Pinex is a smeciai and highiy concen- trated compound or imported Norway White Pine extract and is rich in guala- co] and other natural healing pine ele- ments. Simply mix it with sugar syrup or strained honey, in a 16~oz. bottle, and It is; ready for use. Plnex has often been imitated, but never successfully. for nothlng else wlll produce the same results. The genuine Is guaranteed to give absolute satisfaction or money refunded, Certificate or guar- antee is wrapped in each package. Your grugglst has Plnex or will gladly get it AUTHOR FOUGHT AMAZONS. The» pyompt and posi'flve in this same campaign followmg 1nc1dent occurâ€" ISSUE “Frankly, I think it is the finest fighting force the world has ever seen. Its value to France 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 occupies much the same position in the French army of to- day as the famous Old Guard oo- cupied in the army of Napoleon. and the presence of a battalion of the Legion among a force of ordin- ary French troops will convince every soldier in that force that he is on the winning side.” here’s my number stamped 'on it as well, which is evidence enough for anybody. Who would have thought it possible that I could pick up in Africa, as a Captain, a rifle that I used in France, as asergâ€" ent, twentyâ€"two years ago? It is incredible l” Aside from the interest of the narrative, the book is valuable as conveying .a, notion of the person- nel and power of the Foreign Leg- ion. To the explanation of these thiggfi Mr Martyn gives a good many pages, and makes compari- sons between the Legion and the various divisions of the British army. with which he was intimate. His fina‘ estimate ofthe Legion’s value he» s_um§ u_p_i1_1 thegse words: The Mansion House,’which will be the future residence of the new Lord Mayor, was built by the eld-z er Dance letween 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 had to be based u on piles. Originally the facade ad: a. heavy attic story commonly call-j ed “The Mare’s (Mayor’s) Nest.”l The famous Egyptian Hall, which is the principal room, was so styled because intended hy the architect, In Norway women have the fran- chise and may themselves be elect- ed members of parliament. Even the police force is recruited frem women as well as from men. She can use use a ski as (skilfully and as boldly as any man. She can swim like an elderâ€"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, daintin feminine, and she can fluently express herself. in sev- eral languages. Her features may not be regular, but she is the em< bodiment of health, and she knows how to dress «so as to make her physique look attractive, though her costume has rather aTeutonic than a Gallic aspect. to reproduce exactly the Egyptian Hall described by Vitruvius, Tho cost of the Mansion House, £71,000, is alleged to have been partly de- frayed from fines inflicted upon Nonconformist members of the Corporation for not receiving the the sacrament according to the fibers of the Established Church, as required by the Corporation Act of Charles II. CLEVER NORWEGIAN WOMEN. When a. hard working man r‘e« main-s poor hls w £0 says he- is too zentmuz. THE MANSION HOUSE.