The Pensacola journal., December 31, 1922, Page FOUR, Image 4

About The Pensacola journal. (Pensacola, Fla.) 1898-1985

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THE PENSACOLA JOURNAL, SUNDAY. MORNING, DECEMBER 31, sazz. '
FOUR
MORTGAGE fffi A m
. i ' ' ' Ifr "'
THE BENEVOLENT TYRANT Advertise Florida
f
1 V
in
IU1
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SUNDAY, DECEMBER 31, 1921
SOCIAL EDITOR, S3
6
THE STATE FAIR.
Y NO means least among the many ways that have, or may
be, devised to advertise Florida and to build hiVcpr iho
productive power of this great state is a centrally located
and a well-planned and well-managed State Fair. The so
called state fair which was recently held in Jacksonville was
reported to be a great success. In many ways it was, but in
some ways it could be made much better. No fair can be re
garded as a success that has to depend upon the financial sup
port of gambling devices. The so-called state fair recently
held in Jacksonville was over-loaded with inexcusable gamb
ling games all of which gave to the imaginative youth a
wrong impulse, lostered an unwholesome appetite and desire.
m We are on the threshold of a new year. Each new year
brings its new hopes, its new aspirations, its new determina
tions to do better and build better. The so-called state fair
at Jacksonville is now many months ahead of us, fortunately
so. l,cz us begin jnuw to make a state fair in fact, a real
Qtrifn I'm'. ,,.U ,,,X.:1 Oi i - T,t fXi-A- Tl ii
t-iiuiv a. an, x yvi m-wniie ouue rair, a oiaie rair mat em
phasizes the productive power of the state and the cultural
possibilities of this peninsular empire.
Let us -have a state fair that rep - tits the benignant
things of friendly Florida and throw :. j all these damnable
games of chance. They're nothing to .da dignified State
Fair upon. It was well not to speak of them when the spoken
word would hurt the fair. But now that the Fair is past it is
altogether fitting that the public demand a fine, clean Fair,
as worthy a State Fair as any Fair in the United States.
That is what Florida has never had. It is what Florida de
serves, needs, must have and will have.
In planning for a real State Fair let us first bear in mind
that Florida has no official state fair. Neither the Jackson
ville or Tampa fairs is a State Fair, of the state, by the state
and for the state, as are such famous State Fairs as those
created and conducted by the state of New York at Syracuse,
by Ohio at Columbus, by Indiana at Indianapolis, by Illinois
at Springfield, Minnesota at Saint Paul, Iowa at Des Moines
and Kansas at Topeka. Those are the best and the most fa
mous and the most successful State fairs in the nation.
They exist by legislative authorization and appropriation.
, Thei? aro governed by an official State Fair commission and
in all of them they have thrown out the snake-charmer, the
fakes and the freaks and the cheap tawdry dance shows and
all the gambling devices.
The merry-go-rounds are, of course, allowed. That's
good wholesome fun. Everything that is good fun is al
lowed and you'd be amazed how much keen fun there is to be
had when you once get rid of the dirty junk. The best of
acrobatic stunts and the best of band music and the best of
all manner of entertainment is fostered by those states. It
has to be cloan to get in and it has to pay well for the privi
lege of getting in.
Florida should have a state fair commission. Florida
should create an official Stats Fair, not two or three fairly
good fairs in different sections of the state. It should mar
shall all the strength of the state to build up one great State
Fair.
If we are going to build a great state we must get rid of
thi. sectional spirit. That hurts the state. We must stop
talking East Florida and West Florida and South Florida.
kWe must talk FLORIDA. We must think FLORIDA. We
must work for FLORIDA. We must weigh the state as a
whole and work for that which is for the best interest of the
state as a whole. Therefore we would have the State Fair
centrally located.
What is a central location ? The central location is not
the geographic center. The central location is the most ac
cessible point in any state. The most accessible point in
Florida is no& Tampa, it is not Miami, it is not Orlando. The
most central point in Florida is Jacksonville. Jacksonville is
eqftally accessible to Fensacola and Miami. More sd than
eithef Tampa and Orlando. No other point in the state
could be as equally accessible to all these points.
' -The Florida State Fair should be at Jacksonville. It
ehctuld be a place for wholesome fun, merriment, good time, a
place. 'to -gather information; it should be educational; it
should be informative, instructive, and what is more, it
should be FREE.
' ;The time is past when Florida can afford to be a trailer.
Florida must lead . Florida must put itself into the lead.
Thefrnost modern, the most progressive and the most suc
cessful State Fairs in ths country today are free. Their
gates are wide open, COME ON IN.
The open gates of welcome to all has proved to lure from
three to four time the charge attendance at State Fairs.
r,The multiplied attendance, equally multiplies the earn
ing of the concessions that are on the field. The free fair
charges a percentage to all concessions.
Suppose a fellow goes to the pay-fair with two dollars in
his' pocket. He pays fifty cents to get into the fair and he
spends a dollar and a half.
Suppose the same fellow goes to the free fair; he finds
himself inside the gate with the whole two dollars. He
spends his two dollars at the concessions on. the ground. If
fcie State Fair takes twenty-five per cent, and they usually
take more, they've got that fellow's gate fee right there and
they have got more because the attendance is multiplied
three to four times and the fellow with the merry-go-round
has got more because he has three to four times as many
pfttrcn.1. The whole thing is the simplest form of mathe
matics. Jt's MODERN. Let's be modern.
All exhibits of agricultural machinery, all exhibitions
that purely advertising displays are made to pay substantial"
rates at these free state fairs for their advertising rights
and it has been proven to be good advertising investment.
So let's begin the new year with this good thought of
working out every possible plan to build a bigger and better
Florida not least among which is the State Fair, OFFICIAL
CLEAN and FREE.
It is high time that the Governor of Florida and every
member of the Florida Legislature gave some intensive and
thoughtful study to this along with other constructive state
building plans.
The Pulse of the Nation
LESSON FOR OTHER STATES IN
ILLtNOIS' REJECTED CON
STITUTION. Illinois' emphatic, almost contemp
tuous, repudiation of the new con
stitution just submitted to popular
vote, while seemingly a local issue,
has aroused widespread interest and
editorial discussion throughout the
country. The explanation apparent
ly lies in the growing tendency, which
the San Antonio Light points out, to
raise the cry, "Give us a new Consti
tution." "The fever of dissatisfaction
with the old seems to be contagious,"
the Light says. "The existing consti
tutions of various states are being as
sailed. Nowhere, one might conclude
after reading about the many projects
of this kind, is everybody satisfied
with the organic law of his particular
state." And the Illinois experience
teaches valuable lessons in connec
tion with constitutional revision.
The most vital points in the lessons
thus taught, in general editorial opin
ion, is, first, the fallacy or incorpor
ating in the organic charter matters
which should be subjects for statu
tory enactment, and second, the fant
that the better way to revise consti
tutions, after all, seems to be to sim
plify amendment of the old rather
than to substitute an undigested and
untried new.
"Illinois has proved again," the
Duluth Herald announces "that about
the hardest ''job in American civic ex
perience is to exchange old constitu
tions for new ones." The convention
presented a document which the Bal
timore News believes was a very
good constitution," proposing "many
excellent and needed reforms," yet it
received an adverse vote ranging from
to 1 in rural districts to 30 to 1 in
urban communities. "No simitar de
bacle in popular rejection is recalled
in the history of constitution -making
in this country." ssrys the St. Louis
G4obe Democrat, and indeed "an'ad
verse majority o overwhelming"
seems to the Syracuse Herald "like a
farcfeal sequel to the three years of
discussion, meditation and hard labor
devoted to the framing of the new or
giftic law."
The personnel of the constitutional
convention, popularly dubbed the
"Con Con", "was regarded as excep
tionally competent," the Springfield
(Mass.) Republican reports, but "it is
not unlikely that it would have fared
better at the polls if it had had a
wider representation of points of
view," for "radical opposition seems
to have been strengthened by some
feeling that the convention was dom
inated by a class." Certainly such a
body should not have proceed a do
cument that could go down to such
ignominious defeat, the South Bend
Tribune thinks, and It is almost ridic
ulous that "members of such a con--ention
should shoot so wide of the
mark that the vote should amount to
repudiation of their sense and judg
ment." "What ailed the proposed consti
tution?" the Decatur Keview wants to
know, any things, as the editors of
the country analyze it. Primarily it
"impressed people as something which
had been carefully and discreetly
framed on them," according to the
diagnosis of the Chicago Tribune.
"The Idea or nw taxes seared the
great mass of citizenship which pays
the other man's taxes the landlord's
the butchers and the baker's but
does not want to see a tax bill. The
authority granted the legislature to
reform tax laws was a powder keg.
All citizens saw themselves paying
something directly for the upkeep of
the state. Nothing, as it were, do
ing." To the Kansas City Times,
also, that "one word" explains it
taxation. "In an endeavor to please
all factions it submitted, along with a
provision for an income on intangibles,
a provision calling for a tax on all
net incomes resardlese of siza." and.
as the St. Louis Post Dispatch says,
"the objection of the man of small in
come may be Ill-advised, experts may
theorize and patriots may plead, but
when it comes down to the issue it is
a rare man who vtte a tax on his
own pscketbook."
Asaiu, the Cincinnati Enquirer re
lates, "it denied to the people the right
of reviewing the acts of the General
Assembly, and it sought to limit the
representation in the legislature of the
residents of Chicago." Since, as the
Scranton Times points out, "Cook
County (Chicago) already has one-half
the population of the entire state,"
denying it the representation in the
legislature to which its population en
titled it "was denounced," according
to the St. Joseph News Press, "as a
step toward minority rule and there
fore a step toward autocracy." Final
ly, "when the leading Jurists of the
state wero unable to agree as to what
many of its provisions really meant,
the average laymen evidently con
cluded that its adoption would mean
endless litigation," and, in the words
of the Champaign (til.) News Gazette
he decided to "bear those JHs we
have, rather than fly to others that
we know not of."
The mam difficulty in the adoption
of a new constitution,' the Waterloo
Tribune believes, lies in the fact "that
there are so. many different things, for
people to object to. The aVcrage
voter reads a proposed constitution
not to find good in it, but to pick
fiaws in it." But back of that diffi
culty, deeper and more fundamental,
in the view of the Buffalo Times, is
the complexity which confuses the
voter. " 'He who runs may read' is
hardly too exacting a criterion by
which to suggest the brevity, the
clearness, which should characterize
the basic law of any commonwealth",
and one of tfce chief difficulties "is
lack of understanding or recognition
by ccstituton-framirg bodies of the
'essentiaU 'dme'rences between consti
tution and to confine themselres to
fundamentals to be supplemented by
legislation," the Providence TYitmne
believes that "less difficulty wpv3d be
experienced In obtaining favorar ac
tion." As Its neighbor, the Journal
explains it, "today .'i constitution is
supposed to be the repository for all
sorts of ideas which, if really worth
putting into effect would better be
left to the legislature to enact. "What
seems Important today may go out of
fashion tomorrow and statutory law is
easily changed.
The way out, declares the Hinois
State Journal (Springfield) "is
through amendment to the constitu
tion under which we now live. The
people can absorb and digest with a
competent degree of intelligence one
or two amendments at a time." "Pos
sibly four," the Chicago Journal adds,
and to the end that that may be pos
sible its prescription is "amend the
amending clause. That change is of
acceptance, and with that made the
way to modernise the constitution is
easy and plain." That, in the opin
ion of the Witchlta Eagle is the best
way "to improve a bad constltufcion,"
for it can "be improved and kept
somewhere near up to date by Judici
ous submission and adoption of
amendments," for, as the Rock s'and
(111.) Argus says, "after all, all of th
people don't go wrong all of the time."
Rooms for the stranger are easily
obtained and are of the best quality
if sought among the Want Ads.
P&itties, Pe$e, Persiflage
Comment on Subjects in Which You
May or May Not Be Inttrested
"About People You Know and Ought
to Know. -
By 8YRAN MACK.
Jim White is in a good humor this
New Tear. Whether it is because he
has had such a fine business, or he is
just naturally a good fellow, or a lit
tle of both, I know not, but his New
Tear cards express all of the good
things that could come to a fellow.
Says Jim:
May 1523 and the hundred years
that follow it be as amusing as a
Harold Lloyd comedy, a3 thrilling as
a Talmadge romance, and profitable
as a large chunk of Standard Oil
stock. That's my New Year wish for
you."
In 202S I'll call around to see Jim
and let him know whether his good
wishes attended me throughout the
century.
Every seaport town has a Bergdoll
story all its own. He probably
wo-ujfita't . desire to return to America
unless he coujfd make himself known
and; feel at Ifberty to go wherever he
might desire.
Several days ago I had a piece in
thai co'tema about the Little Theatre
mdvemefltithat is provins so popular
fa many cities of theJland. Since that
time many persons have callei to ex
press ttwrir approval of the suggestion
made fcEat Fbrisacola people organize
and.arraitge to produce these very at
tractive entertainments.
There seems to he sentiment suf
ficient t5 develop a fine- organ&ation,
and leadership seems to be the only
lackiztg element. I suggest titat the
Woman's club, Sidney Levy, Dr. Ken
nedy, or any other interested person
cill a meeting and let s fret the move
ment started along with the New
Year.
These Little Theatre organizations
not only use in known dramatic tal
ent, but give the untrained an oppor
tunity to devalop. There may not be
many who know that I am a great ac
tor, but this Little Theatre movement
might bring the fact to light.
Stanislas Wojciechowskl has been
chosen president of Poland. A man
who can survive a r.ame like that
ought to be proof against assassina
tion. Washington Star.
A child's character is made in the
first four years. Let's hope that
isn't true cf a peace. Akrou Beacon
Journal.
Port St. Jos is to have a celebration
on January 11 at which time a monu
ment will be unveiled on the spot
where the constitutional convention of
Florida was held. As many people as
possibly can, ought to attend this con
vention, not only on account of the
event it celebrates, but to see what
development is taking place in that
part of the country.
Time was when old St. Joe was a
thriving city of five or six thousand
inhabitants when yellow fever wiped
It off the face of the earth. Iam told
that in that size tewa there was not
a house of worship and that the people
were given to all forms of sin and un
righteous life.
Is it any wonder that an AH Wise
One saw fit to remove such a people
from this world. I am not a crank
about any particular kind of religion,
and am perfectly willing for anyone
to worship as he sees fit, whether it
be in my own Presbyterian Church,
some other Protestant denomination,
the Catholic, Jewish. Christian
Science or Salvation Army, but I do
like for men to have some thought and
reverence for a Supreme Being.
Port St. Joe is being built upon en
tirely different lines from the old
city. Now a fine, progressive, law
abiding people are building a city that
will endure through all time.'
THIS DATE IN HISTORY
December 31.
1G71 Battle of Mulliauseri. in
Alsace, In which the French
Marshal Turenna defeated the
Austrains
1673 John Adolphus BoTellis,
a distinguished philosopher and
mathematician of Naples, died;
author of thirteen treatises in
Italian and Latin.
1833 First successful reaping
machine patented.
THE DAILY THOUGHT
December 31.
"Union gives strength to the
humble."
(Panama City Beacon-Tribune).
In offering to contribute to the mil
lion dollar advertising fund, for the
purpose of advertising Florida, the
Beacon-Tribune Is actuated by mo
tives of cooperation, and voluntary
cooperation especially. The offer of
Messrs. John H. Perry and Richard
Lloyd Jones, of the Jacksonville Jour
nal and Pensacola Journal, to con
tribute $100,000, prompts us in follow
ing, in our small way, their generous
lead. ..
While we are of the opinion that
the most just and equitable basis of
raising a state-wide fund for adver
tising Florida would be by state-wide
taxation, still we feel that to attempt
j thi3 would seriously handicap the
advertising by the delay It would in
volve. We, therefore, approve the
action, of the Florida Development
Board, and in approving and by way
of cooperation with them and Messrs.
Perry and Jones, the Beacon-Tribune
has offered to contribute $200 a year
for five years, or a total of $1,000.
The raising of any fund is a Job,
discouraging and difficult, - and we
believe nothing will encourage the
committee more than voluntary con
tributions, no matter how email.
The advertising of Florida must be
done by the cooperation of all big
business and little business, large in
terests and small, rich . people and
those of moderate means. The bene
fits to be derived will be felt by all.
We wish for Florida a happy and
prosperous New Year.
OTHER INVESTMENT
By G.L.Miller
'' Jan. Feb. Mch. Apr. May Jung July Aug. Sspi Oct. Nov?
5---rtfl H I 111 H Ml M I II 11111 (WITfffijg
Lp. - - - Fluctuations of stocks actual record Z Z ifirt?'
" " Price level of Real Estate Bonds Z$rff-
gffTliiiiiiiiiiiiiiiiiiiiniiiiiiiiiEg
"The dotted line shows what actually happened
the price of stocks not long ago. Note the steadi
ness of first mortgage bonds, shown in the solid line"
The Premier Investment VIII
Forbes' Business and
Financial Analysis
Conversations overheard between
different citizens this week, mostly
on trains:
"Hasn't . Germany got gall? She
sold fraudulent currency to other peo
ple all over the world and scooped in
two or three billion dollars of good
money for her worthless stuff. Now
when she is being told that she can't
fool around much longer .without pay
ing over some real money, she wants
the United States to supply it; The
l-ich Germans haven't had to cough
up a nickel. They've been getting
richer and richer. It's high time to
call their bluff and make them dig
down into their own pockets."
"A man came into my office and
told me he was down and out and
forced to live on the charity of the
Y. M. C. A. He said he wanted a
job. I told him he was the very
man I was looking for, and that I
would pay him $5 a day to go out to
my place and cut wood. He looked
at me as if I were crazy and then
said, with a sneer, 'I don't cut wood.
That's not my job. I run an ele
vator." This made me wonder wheth
er there isn't too much coddling of
loafers in New York and other large
cities. It's all right to be kind-hearted.
But it's going too far when you
encourage a fellow to loaf when he
is offered honest work."
"We shouldn't try to deflate things
any further in this country. The
lower we send prices and wages, the
more valuable the dollar would be
come, and this would make It just so
much more difficult to get the dilfer
ent foreign exchanges back into same
sort of balance. High prices here
would make our dollar worth 13s and
would help foreign countries that ewe
us money to sell their products hern.
If we could get the foreign exchanges
back anywhere near parity, the whole
international dislocation would be
much easier to remedy. Of course,
the time would come when the cost
level here would have to he readjust
ed downwards. But I brieve it
would do more good than harm to
keep things on about the present
basts here for Quite some time to
come."
"You fellows always talk about be
ing willing tc pay a man a high sal
ary if hs ?."ins it, but this is all
bunk," said a man who apparently
was an employee to a man in the em
ploying class. "Tou know well that
the rule is to pay a man as little as
he'll take without kicking. It's hu
man nature to want to get things as
eheaply as you can. And don't tell
me that isn't the system you or any
body else doesn't go on when paying
wages. You try to got us much
work as you can for as little money
as possible."
"We are goinsr ahead in ihis coun
try as if there were no dange.s ahead.
The business boom here has worked
im s-rafftr momentum than most
people seem to realize. A lot of us
are making the mistaKe or ioo:ng
upon the war boom and the war-time
high records of production as normal.
And in lines where things are not as
active as they were at the h;ight of
the boom the feeling is that business
is not yet back to normal. A better
way to get a line on just how active
things are just now is to compare
them with pre-war years. If you do
that you will quickly realize that we
are having a boom in lots of direc
tions. We're having a boom in rail
way traffic, in steel production, in
building, in automobile manuZactur
5nir in rntton nrices. in the shoe in
dustry, in the silk trade, in Voliday
retailing, in sugar activity, in lumucr,
in cement, in bricks, in the electrical
ir.duetry, in furniture, in many lux
uries, and so forth.
But I very much doubt if we ccn
tun Tii!i Tiaea ub unless things turn
for better abroad and unless congress
behaves more rationally tnan ins raa
ical leaders in it threaten to behave.
The first thing you know prices and
wages will go sky-high unless we
watch our step. It's easier to start
a rise in prices and wages than it is
to top them, after they get under
way, from going to disastrous heights.
Watc'a out for that."
These are just a few samples of how
citizens in different walks of life feel
about things.
(Copyright, 1922, by B. C. Forbes.)
THE STATE PRESS
J
- IT CAN'T BE DONE.
The Irish republicans have called a
peace parley for January 7. The next
hlng we may. expect to hear is that
Satan is rebuking sin. Tampa Times.
GOOD IDEA.
' Automobile Insurance companies
should apply the sanity test to some
applicants before issuing a policy.
DeLand News.
WALK ON YOUR HANDS.
If you are going to leave any fool
prints in the sands of time, do not
let them show that you have been go
inc backwards. Chicley Banner.
The best way to get a clear idea
of an investment security is to com
pare it with other investment secur
ities. In this series of articles, I
have tried to define real estate mort
gage bonds and to show what qual
ities they possess as investments.
With this information in mind the
student of this subject can round
out and complete his understanding
of first mortgage real estate bonds
by comparing this security with
other securities into whiclf he may
be invited to put his money.
The broad fundamental divijion
of all investment securities is be
tween stocks and bonds. It would
seem that everybody ought to know
i-ery clearly by this time the differ
ence between stocks and bond9, but
numerous letters which my com
pany receives indicate that the
writers are sometimes very hazy on
this and other points.
A share of stock is a share in the
business. The owner of a stock
certificate is a part owner of the
business. If the business makes
money and if the directors whom
the shareholders elect decide that
the money can be paid out to stock
holders, he stockholders get divi
dends representing the profit on
their business enterprise. When the
investor buys a share of stock, he
should realize that he is taking a
chance on getting his money back.
Unless the business is liquidated,
there is usually no provision which
assures the holder of stock that his
money will be repaid. If he wants
to recover what he paid in, he must
sell his stock to somebody else.
Where the stock is listed on one of
the big stock exchanges, he can
always find a purchaser, although
there is no guarantee ss to the
price he will get if he sells. Where
the stock- is not listed, the owner
usually has to look around for a
purchaser among his friends.
"Real estate bonds are secured by a
single piece of income-earning
property."
A Promiie to Pay
A bond, on the other hand, is a
promise to pay. The bondholder
docs not own any part of the busi
ness to which he lends his monej',
he merely gets the written promise
of that company that on a certain
date, it will repay the amount he
has loaned (in other words, the
amount of the bond) together with
interest at a fixed rate, payable on
specified dates. The bondholder,
therefore, is merely a creditor of a
business and has only a creditor's
rights. As Ion r as he receives his
interest promptly and as long as
the borrower fulfills the other con
ditions of the agreement, the bond
holder has no voice whatever in the
management.
Real Estate Mortgage Bonds may
be compared with other bonds to
bring to light the peculiar charac
teristics of the former. In the first
place, real estate mortgage bonds
do not fluctuate in price from day
to day. The banker who issues
these bonds either sells them at
par or at a definite price, calculated
to yield a certain per cent on the
investment. Corporation bonds on
the other hand are constantly
changing in their market price.
Most of these bonds are either
listed on the big stock exchanges
or are dealt in "over the counter"
by dealers.
The price is determined day by
day, by the number and volume of
orders to sell which brokers receive
as balanced against the number and
volume of orders to buy. Owners
of real estate mortgage bonds are,
as a rule, people who do not like
these daily fluctuations, which so
often result in losses. The holder
of the corporation bond will be very
much tempted to sell if he sees his
bond going down in value day after
day. Forces may be at work to
decide the value which he only
vaguely understands. A great rail
road or a great industrial corpora
tion with bonds in the hands of the
public may find its financial posi
tion very much altered from year to
year, t-arnmgs may go up or down,
law3 may be passed affecting the
company's business, competition
may reduce its income.
Whereas corporation bonds are
usually secured by a first or second
lien on a vast piece of property,
subject to any conflicting influ
ences, the real estate mortgage
bond is based on a single building.
Even the largest of these buildings
cannot be comoared to the size of
the railroad property or large fx-
laciunng p;ant. i ne investor, tn
fore, or the banker acting for fc
need only concern hirr.srif vrith
relatively small piece oi prep
which is more easily watched s
more easilv orotected in r5t.
w - , ... vwjv
unforeseen dinicult', tl'.an the .
and widely scattered property c:
big corporation.
Ia Ceie of Foreclosure
Every mortgage, whether isr
by a corporation or the builder
an apartment structure or he
gives the lender the right to is
close on the property in ass :
terest or principal is rot t;
While foreclosures on proper!;-
cured real estate mortgage bo:
are extremely rare, yet every
vestor should ask himself
would happen in case forty
should become necessary. 1:
case of real estate mortgage h
the procedure would be vsrji
pie. There is a ready mark-
buildings and the trustee wos!dr
the structure for the best pna;
tainable, pay off the claims si
bopdholders, including principii
accrued interest, and turn t
whatever balance remained a
original borrower. The fact?
the building is always worth at
deal more than the amount of be
issued gives ample assurance .
there will be enough realir.ed t
the sale to pay off the bondi,;
both the bondholders and the
rower can feel inured that
banker will exert every effort
obtain the highest possible pr:c
Onlv in extreme cases, howr
vuld fereclosure be necessary
all. Ordinarilv. if a bofr:
should get into financial tro.
and be unable to meet h i t
obligations, the trustee hlx
could solve the difficulty by fa.t
over the property, giving it the
pert management of his organi-V
tion, stopping up financial lctks,.
providing the money immed:a'
necessary to pay interest and pr
cipal of the bonds as due. Ilo'd:
of the bonds would get their ir.on
promptly, as usual, and there wa:
be no impairment ot security, m
mortgage would still rcina:n
force. When the diftkul'.Vs s:
smoothed out. the raankremert
the property would be f.irrrd hi
to the owner who had tempers;
surrendered it. This is another
lustration of how it pss to iw
m bonds vouched ior by a canr
organization of wide experience!
ample financial resources, re
closure is pot a p!eas?nt rer-.?
and if a banker i3 al'e to pre?
it he is rendering a great srrv:.
his investors and to the bcrr:
When a corporation is urahe
pay interest or principal on :
bonds, however, the proreJurt
apt to be very different. It ss f
easy to find a pnrc!ia?er for a-'
tire railroad. It is still les ea"-
finrt a rttrriarr for a TJff O.
railroad which often untJerliey
bond issue. . !"
The difficulty is sh!I greater wj
several bond issues hive been if 1
out secured by first, second j
third mortgages on raiiroaa r
erty. Holders of the first mow
bonds may want to do one tn"
and holders of the other bont!
want to do snmethiner e!se.
sn
It usually is a comproa
Holders of each dais of bofldi '
invited to deposit their bopi
a protective committee. Tfta W
mittee draws up a plan of coc?r
mise whereby the bondholder
surrender a rart o f his holrtas
may be called upon t pay
tain amount of money to fee!?1
romnanv nirf. and in the e 3
1
ikely to find himself .pockety
tiV ln on the trants'
He realizes, however, that rt :
probably better to accept a joi
rxr.t the d:rWf
U.. vol Aetito rr.-r!Z3e
and corporation bords in im
portant matter of f-dojjrt,
tratcs the simplicity and safety '
real estate bonds, a
bond issue usuallv runs for a , c
siderable time. Real estate btr ,
of a single issue may mature a.f
way from two to fifteen years i.
date. Some railroad issues run -a
hundred years.. During tf..
. l - i 1. mnAitions mav cr.--
OI U1C UU""', " ,
materially uom
were v.
fered to
fore, for
what tr.
mdici"v ...... - --, , .
hen the bonds were first t
o investors. It is v.r!!. t..e I
.i- ihf investor li reaze It
T f IT r - IV' ' . s
he must look far ahea-i and w.
every possibility of r-nn
ditions which may arr?ct "
(Copyr'g'-t. 1922. J; 7 C. LJJ-
When this series of a;','
completed, copies nay 1 '
tained in booklet form.
h,1d hi. addressed a? once u
G L. Miller & Corrr-a
Atlanta. Ga., :
Street. Sezv crt. ' f"?
Toe
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