Evening star. [volume], February 18, 1929, Page 10, Image 10

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
10
GLEBE ROAD NORTH
FLAN ISABANDONED
•Improvement of Route From
Lee Highway South
Favored Instead.
: BY LESTER N. INSKEEP.
j Staff Correspondent of The Star.
> CLARENDON, Va„ February 18.—
.The plan to request the Virginia State
| Highway Commission to construct Glebe
j road from the Columbia pike north in
i Btead of from Lee Highway south has
r been abandoned because of the prospect
j*f having Lee Boulevard furnish a paved
) outlet for residents of Glebe road, it
i was announced today by Robert H
(Foreman, chairman of the roads com-
Inaittee of the Glebe wood Citizen’s As
sociation.
f When the highway commission re
allocated $40,000 from the Lee High-
J way to Glebe road, announcing that the
1 money would be spent to widen the
latter road from lee Highway to Balls-
I ton, it was felt by the proponents of
j the Glebe road project that they needed
J access to Columbia pike and the High
j way Bridge more than to the Lee High
| way.
Needs Declared Not Served.
The money was to be spent, accord
ing to State highway officials, to con
struct a cement highway for as long a
wlctance as the money would cover, a
distance of between a mile and a half
• and two miles. This new highway would
not have reached a sufficient distance
i to serve those most in need of a paved
; road, so it was decided to request the
t State to construct a cheaper grade of
Toad for a greater distance.
The prospect of having the Lee Bou
levard completed before the new Me
morial Bridge is finished, however, has
slaced5 laced a different light on the subject.
he Lee Boulevard, it is explained by
Foreman, will pass between Ballston
and Columbia pike, furnishing a high
ly satisfactory outlet for most of the
residents between.
Paving of Glebe road from the Lee
: Highway south will also furnish an
excellent detour route when the Lee
Boulevard has been constructed as far
‘ as Glebe road, it was pointed out, since
the $40,000 allocation will carry the
paving of Glebe road to within less
than a mile of Lee Boulevard.
Hope for Funds Net Year.
, it is hoped by Foreman that the
State Highway Commission may be per
suaded to allocate sufficient funds next
to finish the paving of Glebe road
to at least Columbia pike. When this
Is done residents may have three routes
4nto Washington, all connected by a
hard-surfaced road.
Foreman stated that he had just re
ceived a letter from the highway com
mission offering the assistance of an
expert in procuring the few widening
Tights of way that are still not in
-possession of the State for the Glebe
road work. It is expected that the work
Fill start as soon as the money be
comes available on July 1, the begin
ning of the fiscal year.
CITIZENSHIP STRESSED.
Former Representative TJpshaw
Speaks in Alexandria Church.
ALEXANDRIA, Va., • February 18
(Special).—“The sacredness of citizen
'ahip should be taught not only in every
School, where our national anthems
*' and the ‘American Creed’ are sung and
taught from every pulpit and around
<ij|p not enacted in Wall Street or other
every hearthstone,” former Representa
tive William D. Upshaw of Georgia as
serted last night in an address at the
Second Presbyterian Church.
“The biggest business in this Nation
Is not enacted in Wall street or other
great financial centers, neither is the
Nation's biggest business transacted in
the halls of Congress or other Govern
ment departments of Washington.
America’s biggest business is the build
ing of citizens for God and the flag,”
be declared.
-- I— . .
You’re missing something if you don’t hear “FORHAN’S SONG SHOP”
Thursday night at 8, Station WRC
y
r|
Have you all of your
own teeth?
2
Unless you take preventive measures now, the day is coming
when you may know', to your sorrow, that the true meaning of
the phrase “artificial denture” is often the extravagant price of
self-neglect—false teeth. Here’s the reason and the way to help
safe-guard health against the coming of this day.
Teeth are only as healthy as the gums. And gums, under
nourished and under-exercised, soon surrender to dread diseases
that ravage health and often destroy teeth. To prevent this, avail
yourself of the best care that modern dentistry offers. Place
yourself in the hands of your dentist at least twice a year. And
brush your gums when you brush your teeth, every morning
and night.
But for this purpose—use Forhan’s for the Gums . . . the
dentifrice designed to help firm gums and keep them sound,
thus protecting them from the attack of disease.
Use Forhan’s regularly. You’ll be delighted with the way it
makes your gums look and feel. In addition, you’ll notice that
it effectively and safely cleans teeth and helps to protect them
from decay. Get a tube of Forhan's—today!
Forhaii’s for the gums
.J
★ 4 out of 5 people after forty and thousands younger pay the extravagant price of neglect
SUBURBAN NBWS t ;
Heads Roads Body
J *SP ’ j
,
ROBERT H. FOREMAN.
ARLINGTON CITIZENS’
COMMITTEES NAMED
President Grover E. Payne An
nounces Personnel of District
Council Bodies.
Special Dispatch to The Star.
CLARENDON, Va., February 18.—
Personnel of standing committees of the
Arlington District Council of Citizens’
Associations were announced today by
the newly elected president, Grover E.
Payne, as follows:
Roads, streets and sidewalks—Richard
L. Eacho, chairman, Ashton Heights;
Robert H. Forman, Glebewood, vice
chairman; J. T. Wallace, Arlington; D.
W. Leary, Aurora Heights; Maj. Charles
L. Ladson, Ballston; James W. Head,
Barcroft; R. P. Ballinger, Bon Air;
J. B. Swecker. Clarendon; James R.
Williams, Highland Park; H. B. Har
tung, Lyon Park; Horace Benton, Lyon
Village; Miss Bessie Christian, Radnor
Heights, and Samuel A. Graninger,
Veitch Summitt.
Water and sewerage—Gilbert L. Hall,
chairman, Aurora Heights; J. D. Cush
man, Bon Air, and H. F. Smith,
Clarendon.
Public utilities—William R. Swet
nam, chairman, Lyon Village; C. I.
Kephart, Ashton Heights; R. P. Bal
linger, Bon Air, and Richard L. Eacho,
Ashton Heights.
Public schools—C. I. Kephart, chair
man, Ashton Heights; J. P. Agnew, Ar
lington; James R. Williams. Highland
Park; Horace Benton, Lyon Village, and
John R. Evans, Glebewood.
Health and sanitation—A. A. Moore,
chairman, Lyon Park, and H. L. Zile,
Ashton Heights.
Public safety and fire departments—
H. F. Smith, chairman. Clarendon; J.
P. Agnew, Arlington, and Maj. Charles
L. Ladson, Ballston.
County finances—D. W. Leary, chaif
man, Lyon Village; J. P. Agnew. Ar
lington; Col. J. G. Pepper. Barcroft; H.
B. Hartung, Lyon Park, and O. J. Le
Prevost, Highland Park.
Zoning—Robert H. Forman, chair
man, Glebewood, and O. P. Farthmore,
Veitch Summitt.
Law and legislation—Gilbert L. Hall,
chairman, Aurora Heights; James R.
Williams, Highland Park, and C. I.
Kephart, Ashton Heights.
MARRIED AT 1 A.M.
Washington Couple United in Rock
ville at Early Hour.
ROCKVILLE, Md., February 18 (Spe
cial).—Shortly after 1 o’clock this
morning Miss Dorothy L. Peifer, 20. and
George L. Coulter, jr., 21. both of Wash
ington, were married here by Rev. S. J.
Goode of the Christian Church, at his
residence.
They found it necessary to arouse Dr.
Goode from his slumbers. The couple
were accompanied by two Washington
friends, and returned to the city imme
diately after the ceremony. No explana
tion was forthcoming as to why they
selected such an unusual hour to be
married.
THE EVENING ST AT?, WASHINGTON, D. C M MONDAY, FEBRUARY 18, 1920.
ARLINGTON MURDER
CASE IS MYSTERY
Charges Before Grand Jury
Stir Speculation at Open
ing of Court.
Special Dispatch to The Star.
ARLINGTON COUNTY COURT
HOUSE, February 18. —The regular
term of the Circuit Court of Arlington
County opened today, with Judge How
ard W. Smith on the bench.
The first business to come before the
court was the presentation by the Ar
lington County Bar Association of a
portrait of the late Judge Charles E.
Nichols of Alexandria. The presenta
tion was made by Crandal Mackey.
Judge Nichols served on the bench from
1895 until 1905, when he resigned to
run for Congress. He was defeated.
An air of mystery surrounds the an
nouncement by the office of the com
monwealth attorney that the grand
jury will consider, among a number of
other cases, one of murder. The na
ture of the case will not be revealed
until the grand jury has taken the mat
ter under consideration, it was said.
Among the early charges to be con
sidered by the grand jury are four
housebreaking cases, three mayhem and
a number of violations of the prohibi
tion law.
It is expected that the grand jury
will return the indictments by late this
afternoon, at which time they will be
docketed for trial.
HUNDREDS OF SKATERS
FLEE STARVING WOLVES
V
By the Associated Press.
BUDAPEST, Hungary, February 18.
—Hundreds of men and women enjoy
ing Winter sports in the Burgenland
region were terrified by the sudden ap
pearance of wolves driven out of the
dense forests by hunger.
There was a wild panic as skaters
attempted to gain the shores of the
lake. In places the ice broke, many
persons plunging into the freezing
water. All were rescued by means of
human lifelines from the shore.
Greater panic and possible disaster
were averted by a few of the skaters
who were armed and opened fire on the
wolves, killing several and frightening
off the rest.
TICKET LIMIT EXPIRES.
All requests for reserved seats for the
official celebration Friday of the 197th
anniversary of the birth cf George
Washington must be in the hands of
Mrs. Edgar B. Merritt, 1345 Jefferson
street, by tomorrow morning, the ticket
committee announced 1 today.
The exercises, which will be in charge
of the District of Columbia Federation
for Patriotic Observance and which will
be attended by members of Congress,
the diplomatic corps and other digni
taries, will begin at 11 oclock at Poii’s
Theater.
Veteran Dies at Age of 97.
STUART, Va., February 18 (Special).
—lsham Cockram, Patrick County's
oldest veteran of the Civil War, died
yesterday at the age of 97. He was one
of eight sons who marched to war.
Harvey Cockram, aged 82, is the sole
remaining son. Isham Cockram was
the filer of the 51st Virginia Regiment,
and fought through many of the big en
gagements.
« •
Randolph-Macon May Queen,
LYNCHBURG, Va., February 18
(Special).—Miss Lyla Brown of Burling
ton, N. C., has been elected Queen of
May at Randolph-Macon Woman’s Col
lege here.
—•—
Tuttle Estate SIO,OOO.
LYNCHBURG, Va„ February 18
(Special).—The will of C. R. Tuttle,
superintendent of the Lynchburg Foun
dry. Co., who died last week, has been
probated in the Circuit Court here, the
estate, valued at about SIO,OOO, being
left to his widow and two daughters.
Man Charging Hi-Jacking to Another
Now Is Himself Arrested as Rum Runner
Special Dispatch to The Star.
HYATTSVILLE, Md., February 18.—
James Lane, colored, whose complaint
two weeks ago that he had been hi
jacked led to the arrest of a Wash
ington man, yesterday was himself ar
rested for illegal transportation and
possession of liquor and held under
bonds totaling $2,000.
Prince Georges County Policemen
Harry Robinson and V. M. Nichols
apprehended Lane on the Washing
ton-Baltimore boulevard and reported
finding 15 cases of liquor in his car.
Justice of Peace Hugh O’Neil fixed his
bond at SI,OOO on the liquor charges
w’hile Justice of Peace Herbert Moffat
ROCKVILLE TO DEDICATE
GYMNASIUM-AUDITORIUM
Program of Exercises in $50,000
High School Addition Announced
for Thursday Evening.
Special Dispatch to The Star.
ROCKVILLE, Md.. February 18
The gymnasium-auditorium of the
Rockville High School, recently com
pleted at a cost of approximately
$50,000, will be dedicated Thursday eve
ning with elaborate exercises.
Presentation of the educational
pageant “The Light” will be the out
standing feature of the program. It
will include a prologue, called “The
Vision,” and eleven “glimmers” showing
the various steps in education, to be
followed by an epilogue, “The Gleam.”
The pageant will be presented under
the management of the High School
Dramatic Club and will be participated
in by a large number of the pupils.
The arrangements for the pageant
are largely in charge of Mrs. Fern D.
Schneider, a member of the high school
faculty, who is being assisted by Ken
neth Petrie, Miss Virginia Karn, Miss
Edna Hauke and Miss Letty Souder,
other members of the faculty.
The exercises will also include ad
dresses by Prof. Edwin W. Broome,
county superintendent fcf schools, and
Dr. George L. Edmonds of the county
Board of Education: music by the high
school orchestra and other features. A
dance will follow’.
THREE DIE IN LYNCHBURG.
LYNCHBURG, Va., February 18 (Spe
cial).—James William Kidd, 73 years of
age, died Saturday morning. He is sur
vived by his widow, Mrs. Nannie S.
Kidd; two sons, M. H. Kidd of Lynch
burg and J. B. Kidd of Nelson County,
and a daughter, Mrs. Mary A. Currier
of Lynchburg. His body was taken to
Rockfish for burial.
Mrs. Elizabeth Storey. 82 years of age,
widow of Adam Storey, died Friday.
She is survived by the following chil
dren: William D. and Adam Storev of
Lynchburg, James and Robert Storey
of Detroit and Miss Belle Storey of
Staunton.
John William Lair, 63 years of age,
died Friday. He is survived by his
widow, Mrs. Cora L. Lair; two daugh
ters, Miss Clara Lair and Mrs. J. W.
Bazemore; two brothers, Frank Lair
of Lynchburg and James Lair of Rust
burg, and two sisters, Mrs. Bergie Hick
man of Glasgow and Mrs. Lizzie Wil
liams of Richmond.
+
Crash Fatal to Two Students.
FREMONT, Ohio, February 18 (A 3 ).
Carl A. Strohl, Fremont High School
sophomore, was killed instantly and
Miss Ardis Hager, 18, Carrothers. Ohio,
student nurse, was fatally injured when
two automobiles collided 6 miles east of
Fremont yesterday. Miss Hager suf
fered a broken neck. Five other per
sons were injured in the crash, three
of them so seriously that they are not
expected to live. Physicians at Fre
mont Hospital, where the Injured were
taken, said that Raymond Schwartz,
21; Neal Nickloy. 24, both of Fremont,
and Elmer McClellan, 18, of Attica,
Ohio, had but a meager chance to live.
They suffered skull fractures.
There’s no fuss to VAPEX —
just breathe the healing vapor
WL ■\--p' |
Discorercd in Eng - jty|j|Plf' JHEHf a.
/a n d dur in g th c '
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devastating epidemic. It
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the materials with which they worked, gestion breaks up. A drop on both ends
Tests were instituted at once, supervised of your pillow will keep your head clear
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Chemical analyses proved conclusively hours,
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w *• **• j A drop on both ends
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Insist on the genuine Vapex in the little square bottle and I
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***’ l '' s ' l at ‘ °*’
set a similar bond when Lane was
. brought before him by Chief of Police
Carl M. Blanchard of Hyattsville as a
’ State’s witness.
On February 2 Lane reported to
Blanchard that his automobile con
taining 12 cases of liquor had been
1 taken from him near Hyattsville by
' three men who covered him with a
machine gun. Thomas Croughan. 23,
1300 black of Tenth street, was later
i arrested by Washington police in con
nection with the case,
i When Croughan appeared for hear
ing at Hyattsville Police Court last week
Lane could not be located and the
Maryland authorities have been search
ing for him.
AUSTRIA MOBILIZES
TO CURB DISORDERS
)
Rival Mass Meetings Next Sun
day’s Schedule of Socialists
and Anti-Socialists,
By the Associated Press.
VIENNA, February 18.—The Austrian
government today began to mobilize the
• 100.000 men in its combined army,
gendarmerie and police forces in antic
i ipation of rival mass meetings next
' Sunday of Socialists and Anti-Socialists.
The chief gatherings are to take place
. in the workmen's district of Meidling,
i but there are to be other meetings in
1 various parts of Vienna and its suburbs.
All officers and soldiers of the army
who are on leave have been ordered to
1 return to their regiments.
Police President Schober today offered
; hLs services as mediator in an attempt
1 to have at least one of the meetings
postponed beyond next Sunday. There
was only faint hope that this move
would succeed. Herr Schober said,
however, that he would compel the ri
val organizations to assemble fn widely
separated parts of Vienna.
The two factions are known as the
Heimwehr, which is generally called
Fascist, and the Schutzbund, known as
the Republic Defense League. Rivalry
between the organizations culminated in
disastrous riots in July, 1927, about 100
persons being killed and the palace of
; justice burned.
RELIGIOUS EDUCATION
SCHOOL TO BE OPENED
i
Epworth and Grace Methodist
Churches of Gaithersburg An
nounce Plans for Study.
Special Dispatch to The Star.
GAITHERSBURG. Md., February 18.
—Under the joint auspices of Epworth
and Grace Methodist Churches of
Gaithersburg, a school of religious edu
cation will be held at Gaithersburg,
probably in Epworth Church, begin
ning April 21 and continuing through
May 3, it was decided at a largely at
tended meeting in Epworth Church
Saturday afternoon.
The school is intended principally for
the training of Sunday school teachers,
but will be open to all Protestants of
the county who desire to enroll, and
diplomas or certificates of graduation
will, it is stated, be awarded all who
obtain the required number of credits.
The meeting Saturday was under the
joint direction of Dr. Millian and Rev.
Mr. Nevitt, who are directors of re
ligious education for the Baltimore
Conferences of the M. E. Church and
the M. E. Church South, respectively.
Dr. Millian will be dean of the school,
Mrs. Ethel Mills will be chairman of the
board of managers for Epworth Church
and Miss Effle K. Ternent head of the
board of managers for Grace Church,
and Walter Reinhardt will be registrar,
librarian and treasurer.
J. DJR.. PURCHASES
WAKEFIELD LAND
267 Acres Where Washing
ton Was Born Given to
Memorial Association.
By the Associated Press.
NEW YORK, February 18.—Pur
chase by John D. Rockefeller, jr., of
267 acres of the Wakefield estate, on
which George Washington was bom, in
Westmoreland County, Va., was an
nounced yesterday.
The purchase was made for the
Wakefield National Memorial Asso
ciation, which is preparing to rebuild
Wakefield, the house in which Washing
ton was born, in time for the bi
centenary celebration in 1932.
The property, consisting of wood
land and cornfields, fronts the Potomac
River and on it stands the Washington
family grafeyard in which are buried
Col. John Washington, first of the
Washington family in America, who
came from England in 1656 and died
in 1676, and members of seven suc
ceeding generations who possessed the
estate during 152 years. Eleven head
stones now stand in the cemetery.
' The burial ground was conveyed to
the Wakefield Association last year by
Washington heirs, W. Lanier Washing
ton, Mary Washington Keyser, Wash
ington Perine, George C. Perine, Marie
Perine Platt, Mildred Washington
Perine, Ezra Washington Perine and
Eleanor Washington Freeman.
Mr. Rockefeller paid $115,000 for the
tract.
When his interest was attracted to
the estate, Mr. Rockefeller organized
the River Holding Corporation, which
has taken title to the property and
holds it in trust for the Wakefield
organization.
It is estimated that the total cost of
the land, restoration and general im
provements will be about $500,000.
' Mrs. Harry Lee Rust, sr., of Wash
ington, D. C., is the founder and
president of the Wakefield National
Memorial Association.
HUSBANDS’ NIGHT HELD.
Annual Affair Is Given by River
dale Women’s Club.
RIVERDALE, Md., February 18
( Special).— The Riverdale Women’s
Club held its annual husbands’ night
Friday night at the home of Mrs. C.
A. Carey, president.
The committee assisting Mrs. Carey
in arrangements was: Mrs. D. W. Wor
ley, Mrs. Charles Magoon, Mrs. George
Montgomery, Mrs. Roland Starr, Mrs.
Charles Graes and Mrs. Peter Duguid.
DANNY DEVERE, 82, DIES.
Old-Type Minstrel on Stage With
Primrose and West.
WHEELING, W. Va., February 18
(A>). —Danny Devere, 82, old-time min
strel. who appeared with Primrose and
West, Lew Dockstader, A1 G. Field and
with the “Wizard of Oz.” in the orig
inal cast, died here Sunday night.
Up to the time of death Devere held
a responsible position in the office of
I. M. Scott, president of the Wheeling
Steel Corporation. Cause of death was
not given.
■ ■ -
Two Policemen Suspended.
Responding to an anonymous tele
phone call yesterday afternoon. Lieut.
F. M. Dent of the fourth police pre
cinct went to the vicinity of Third and
G streets southwest, found Policemen
Henry H. Heflin and Ralnh S. Warner
and suspended them on an allegation
that they had been drinking.
Both policemen denied the allegation
and are reported to have declared they
had indulged innothing but a bottle of
near beer.
SUBURBAN NEWS,"
ADVERTISEMENT. j ADVERTISEMENT.
Bulwark of $100,000,000
Protects Sun Life
Investments
Unique Financial Position of Company
Discussed by President Macaulay
in Annual Address.
Montreal, February 18th.—-The phenomenal growth and succesa of the
Sun Life Assurance Company of Canada lends widespread Interest each year i
I to the annual address of the President, Mr. T. B. Macaulay.
The annual meeting, which has Just been held, disclosed a continuation ■
i of this expansion, but it was more noteworthy still for an announcement,
almost startling in character, by Mr. Macaulay regarding the financial
I strength of the Company. He stated that so carefully had the directors
anticipated every possible adverse contingency in the money market that even
a panic which would reduce the value of the assets by one hundred millions j
of dollars would still leave untouched and unimpaired the shown surplus and
reserves of the Company.
Mr. Macaulay dwelt as well in a most interesting and illuminating
j manner upon the relative merits of the varied securities in which Insurance
companies invest their funds, and of how traditional views on investment have
1 altered owing to the changed conditions of modern business. He said lrvpart: j
“It is a great pleasure to move the adoption of this report, for the record
! it sets forth is a remarkable one.
“A mere statement of the increases over the figures of the previous year
!is impressive. In Income the increase is $41,972,000, in assets $87,650,000, in
surplus $9,157,000, in new assurances $112,836,000, and in total In force
$408,925,000. A company with total business equal to these increases would be
a large and powerful institution. It is but three years since we rejoiced at
! passing the milestone of $1,000,000,000 of assurance in force, and yet already
iwe are nearing $2,000,000,000, while at this moment our assets exceed
$500,000,000.
“But there is another feature even more striking and important. Ad- !
vance figures indicate that the increase over the previous year in the new
business written by the combined life companies of the continent was ap
proximately 8 per cent, and the increase in the combined total In force
approximately 9 per cent. Against these percentages let me place the figures
' of the Sun Life: Our new assurances Increased 34 per cent, while our total In
j force increased 27 per cent.
“I need not further emphasize the rapid expansion of our business. It !s
but a continuation, though in accelerating degree, of our normal condition.
! That the Company is extraordinarily popular with the insuring public Is
j evident. But people will hardly show so pronounced a preference without
| reason. That reason, unquestionably, Is the great strength of the Company
and its unusual profit-earning power. The earnings announced in the report
| are slightly In excess of $40,000,000, but it is clearly intimated that had we
1 desired to do so we could have taken credit for a much larger amount. We, I
j however, follow our usual conservative policy. We always have before our
i minds the possibility of a business depression, which might occasion heavy
j shrinkage in market values of all classes of securities. Mortgage securities
I may at such a time become totally unsalable, but that fact is not patent:
i while every fluctuation In the prices at which stocks and bonds can be turned
into immediate cash is quoted on the Stock Exchange.
Securities Heavily Undervalued.
“I have decided to take our policy
holders into our confidence in the most
complete way. so that they may realize
how fully our directors have provided
against any contingency of this kind.
You will notice that we say that the
values quoted are those given by the
government department or lower.
There is much in those two words.
They mean that the values given in
the report are approximately $62,500,-
000 less than the actual current values
of those securities on the Exchanges.
Then we have the additional deduction
from market values of $20,000,000, re
ferred to in the report, and also the
special contingency reserve of $12,-
500,000. These items total $95,000,000,
and our unlisted assets and other mar
-1 gins raise the amount to $100,000,000.
“This means that the market values
l of our securities could shrink by
$100,000,000 without reducing our
: surplus by one dollar. Such a shrink
age is, of course, almost inconceivable.
1 1, indeed, doubt very much if even the
Catastrophe of another world war
could produce so drastic a depression.
! Supposing it did. we would still have
1 intact our undivided surplus of over
$54,000,000. We are hardly likely, I
think, to be criticized for lack of con
servatism. 1 do not know any other
j financial corporation which has its
assets so protected. I Imagine we are
more likely to be told that we have
been too conservative; if so. that is a
criticism we must endure. Our safety
margins may, perhaps, be unneces
sarily large, but safety must be our
paramount consideration; and if. as we
confidently anticipate, the margins
prove not to be required, they will In
! time be available for distribution
among our policyholders. And what
possibilities for our policyholders do
these margins represent!
Praises Canadian Law.
“But let us look further into our
earning power. There are many con
| tributing factors: energetic, yet cau
tious and economical agency manage
ment; careful selection of risks; con
servatism in always retaining a con
i siderable proportion of our earnings to
build up protective reserves, and, above
all. specialization in the safe and
profitable investment of the funds.
“Our investment policy is. in fact, a
distinguishing characteristic of the
Company. Our development and pros
perity would have been Impossible but
; for our investment policy, and our in
vestment policy could not have been
pursued but for the wise investment
provisions of our Canadian Insurance
Law. That law stands before the
world as a monument to the wisdom
of our Dominion Parliament. Com
panies of many other lands are either
permitted unwise freedom or are
hampered by restrictions, equally
unwise, which prohibit investment In
many of the most desirable securities.
The Canadian Act, by contrast, per
mits reasonable freedom to the com
panies. while fully safeguarding policy
holders.
Investment Provisions.
“It may be timely to summarize
briefly the provisions of our law. They
permit investments in—first mortgages
(up to 60 per cent of the appraised
value), government and municipal
bonds, corporation bonds secured by
mortgage, preferred stocks of corpora
tions which have paid dividends for
the preceding five years, and common
stocks of corporations which have paid
dividends for the preceding seven
years, such dividends being not less
i than 4 per cent per annum, or
$500,000 per annum in amount. These
provisions avoid the extreme both of
; unwise freedom and of harmful re
! striction. To my mind they are almost
ideal.
“Our list of assets shows that we
own securities of large amounts in all
classes authorized by the Act.
i “With the great growth of the Com
i pany, the problem of investing its con
stantly increasing fund becomes more
; and more important. What avenues
i are open to us? As for mortgages, we
. are most unwilling to establish
' agencies in distant centers, of whose
! real estate values, conditions and dan
gers we know nothing. That would
I be to entrust the safety of our invest
| ments, even to'a large extent the
| safety of our Company, to the Judg
ment of strangers. Government and
municipal bonds yield but low rates of
j interest. As for bonds of corporations,
we must face the fact that, apart from
occasional railway and public utility
issues, the strongest corporations are
rapidly redeeming their obligations,
and no longer need to borrow. Desir
able bonds, therefore, represent a con
stantly decreasing field.
“For a very considerable part of our
: Investments we must, consequently,
look to those classes of eemnitin stocks
which are authorized by our Canadian
! Act. Fortunately, when the same
| degree of care as is necessary for
safety in selecting mortgages and
; bonds is applied to the selection of
common stocks, especially within the
| conservative limits laid down by the
Act, these selected securities are, in
the Judgment and experience of the
thoughtful and well-informed, among
the choicest and safest of all invest- '
ments and by far the most profitable i
and desirable. i
No Magic in "Bond.”
"Consider mortgages. What com- i
1 pany has not suffered losses, and
sometimes very heavy losses, on Its
mortgage investments? As to bonds,
some people seem to consider that
there is magic security in the label
•bond’. This popular belief is not sup
ported by experience. The surplus
earnings and margins of many com
panies, over and above the dividend
requirements of their stocks, are much
greater than the surplus earned by
other companies in excess of the in
terest requirements of their bonds.
Few experienced financiers would
claim that the bonds usually offered
are safer than, or even as safe as,
stock of such companies as the
Montreal Light, Heat & Power, Ameri
can Telephone and Telegraph, Com-!
monwealth Edison, and many others I
could name. The payment of the In
terest on the bonds is certainly no
more sure than the payment of the
dividends on the stocks. In the very
unlikely event of the dividend on anv
such choice stock being reduced. It
would be certain to be far more than
offset by increases in the dividends on
others. Our own average interest rate
has been steadily mounting year after
year, due solely to increased dividends
and bonuses received on our stocks
beyond the rates payable on those
stocks when we purchased them. As
an illustration, take the common
stocks purchased by us In 1923; the
actual cash yield from <hese in 1928
represented a return of 2.38 per cent!
on the purchase price greater than the
dividends payable on these stocks at
the time of purchase, while the
average value of the rights and
bonuses received during the interven-i
ing five years has amounted to a
further .38 per cent per annum.
Only Tested Securities Purchased.
“Our Canadian law wisely excludes
stocks of all companies that do not
have a long record of dividend pay big
and prosperity. But we go much
further than that. We limit ourselves j
almost entirely to eorporations that:
have attained outstanding financial
strength, with great reserves and re
sources already establLshed. that
supply some product or service essen
tial to the life of the community, and
that usually are dominant in their
respective spheres. Such corporations
have their roots deep in the life of the
nation they serve, and are almost part
of the nation itself. Th«* nation
cannot grow and prosper without their
growing and prospering. The opera-.
tions of such corporations can hardly
fall to expand, and their profits to
increase, surely and steadily: and this
is but another way of saying that the
stocks of such select and outstanding
corporations ran hardly fail to be or
greater Intrinsic value five, ten and
twenty years hence than they are
today.
"Let me repeat what I have alreadv
said on many occasions. We do not
speculate. We buy to keep. We never
sell the stock merely because it has
risen to a high figure. Stock exchange
quotations influence our decisions as to
whether we should buy a security, but
not as to whether we should sell. If
quotations be high, we can ignore
them, and, in fact, do ignore them.
Policyholders’ Profits Again Increase.
“There is no department of a Com
pany’s business which deserves closer
study and investigation than the in
vest mifnts of its funds. No other de
partment will give such a generous re
turn for the attention devoted to It.
“It is to its investments that our
Company owes its impregnable posi
tion, and the magnitude of the profits
in which our policyholders rejoice.
Many years ago I expressed the hope
that I would be able to announce an j
increased scale of profits every year
for at least ten years. We now make
that announcement for the ninth suc
cessive year, and I certainly cannot
say that I expect the increases to stop
with even the tenth announcement.
Our profits are accumulating as never
before, and it is inevitable that a
larger and larger proportion will be
disbursed to our policyholders with the
passing years.
A Company With a Soul.
“But there are other features to
which my mind reverts with pleasure.
One of the most delightful compli
ments I ever received was wh>n I was
once introduced to ap audience as the
president of a corporation that had a
soul. That this was no mere phrase is
shown by the sympathetic comrade
ship that exists between all ranks of
the Company’s service, both at head
office and in the field. It is seen also
in the enthusiastic support accorded
us by our legions of policyholders. Our
relationship with them is something
more than that of mere business co
operation. The sense of mutual con
fidence and mutual appreciation Is so
strong as to be akin to friendship, and
it is as our friends I like to think of
them. This delightful relationship is
the reward of unwearied and success
ful service on their behalf, and It Is a
reward which is greatly prized.
"I now move the adoption of the
Report. It is, I venture to think, one
of the most eminently satisfactory and
noteworthy reports ever presented at<
an annual meeting. It records the
transactions of one of the greatest, i
strongest and most beneficent corpora
tions in th v world, and It is worthy of
the Company.”