S

he bought it? The stock pays no dividends, and never has paid any; production is just beginning, and earnings, if indeed there are any at all, cannot amount to very much. The stock is a speculation pure and simple, and if the milkman bought it as a speculation with his eyes wide open we have no quarrel with him, for he is the one to decide whether he can afford the luxury of speculation. But if he thinks he was buying an investment he is either ignorant or foolish. Ignorance is no crime and can be remedied by the exercise of due care and common sense; foolishness is another matter. In our opinion, however, there is little excuse for either. There are many sources from which investment information may be obtained, and there is no reason why the man or woman who needs such information should not get it. And, in conclusion, we ask-when the opportunities for purchasing investment securities are so favorable, why should any one waste his time with speculations?

QUESTIONS AND ANSWERS

Q. I note that the new issue of $230,000,000 Northern Pacific-Great Northern Railway Companies Joint fifteen-year 6 per cent bonds may be converted into 6 per cent Refunding and Improved Mortgage Bonds of the Northern Pacific Railway Company, or into, 7 per cent fifteen-year General Mortgage Bonds of the Great Northern Railway Company. Can you give me some information about these issues?

A. A brief description of them is as follows:

Northern Pacific Railway Refunding and Improvement Mortgage 6 per cent Bonds, Series B, to be dated July 1, 1921-to mature July 1, 2047-interest payable January 1 and July 1 in the City of New York. Redeemable at the option of the company on and after July 1, 1936, on any interest date, at 110 per cent and accrued interest. Coupon

bonds in denominations of $1,000, $500,

4A and $100, registerable as to principal. Fully registered bonds in denominations of $1,000 and authorized multiples thereof. Coupon and registered bonds and the several denominations interchangeable. These bonds will be secured by a direct mortgage or collateral lien on 6,873 miles of road, appurtenances, equipment, securities, terminals, leasehold interests, trackage rights, etc., and all other property of the company hereafter acquired with the proceeds of these bonds. Bonds may be issued under this mortgage for acquisition of property and for equipment, additions, and betterments, becoming subject to the lien of the mortgage for a principal amount equaling the actual cost, except that after the amount of the bonds outstanding shall have reached a sum specified in the mortgage additional bonds may be issued only to the extent of eighty per cent of such cost. thorized issue is limited to an amount The auwhich, together with all outstanding prior debt of the railway company, after deducting therefrom bonds reserved to retire prior debt, shall never at any time exceed three times the amount of capital stock then outstanding.

Great Northern Railway Company

Safeguarding Your Family

by Your Will

Men who are prudent give thought to the problem of the financial security of their dependents for the future. And it is not all a problem of getting it is one of disposing. For the average man the latter is the harder, oftentimes because it is a thing he dislikes to go into, or because he thinks the necessity too remote. But if he is to do that duty which he owes his family, a man must think and learn about wills, and about executors, and about trustees. For in these things the future of his loved ones may be bound up.

What Is a Will?

Property is never without an owner. As has already been pointed out, if a person fails to make valid disposition of his property by will, upon his death the law directs who shall receive it, and in what amounts and proportions. Furthermore,

What is a Will?

Safeguarding Your Family's Future

and witnessed by others, stating what disposition of his property shall be made after his death. (In some States wit-) nesses are not required.)

A person making a will should rememher the uncertainties of life; that the will may go into effect shortly, and that it may, therefore, be his last opportunity to express his wishes in regard to his property. Viewed in this light, the will is a very important instrument and should be drawn by competent legal authority.

A mere written declaration of one's wishes may not be a will. So called "home made" wils are dangerous, and too often worthless, for many niceties of language and law must be considered and the manner of execution and declaration given careful attention.

Can Will be Changed?

Many persons hesitate to approach the preparation of a will, feeling that it is a when executed, exists

Can a Will be Changed?

Who Will Carry Out Your Wishes?

WITH

7ITH the best of intentions for the welfare of their families, many men neglect to consider the future. They forget that women and children, left without the protection of husband and father, are often obliged to endure unnecessary hardships.

There is one best way to provide for the time when you may not be here. That is to make a will. What is a will? Can it be changed at any time to meet new circumstances? What is an executor and trustee? Can the money and property you leave be surrounded by such safeguards as to protect it against the business in

experience of those who may receive it? Is there a way to direct the distribution of property and the income from it over a period of years?

The head of a family owes it to those who look to him for protection, to be informed on these questions. They are discussed in a booklet entitled "Safeguarding Your Family's Future,' published by the Trust Company Division of the American Bankers Association. Trust companies throughout the country have supplies of the booklet for free distribution. Ask one of these companies or write to the address below for a copy.

TRUST COMPANY DIVISION AMERICAN BANKERS ASSOCIATION FIVE NASSAU STREET, NEW YORK

FINANCIAL DEPARTMENT

(Continued)

is gone. Suppose it is; there are thousands of other good investments, and many thousands of honest and reputable banks, bankers, and brokers ready to give you advice about them and buy them for you. Don't be misled by the "hurry" argument. Time spent in careful investigation before buying will repay you many times over.

There is no investment in the world which in the strictest sense of the term can be called safe. Losses occur in every business; but care can be exercised, and when it comes to buying securities it is only reasonable to keep away from those which are practically worthless at the start and have little or no chance of ever being a success. Granted that nothing in this world is perfect and no stock or bond free from certain risks; yet it is possible to reduce these risks to a minimum. Certainly it is no more than prudent to confine your purchases to those securities which have behind them a record of earnings showing an ample margin for dividends or interest charges, are well secured, are issued by a well-managed company, and are in demand by discriminating investors and can be sold without undue loss if the occasion requires.

Plenty of investments are to be had at the present time which meet these requirements. Reputable bankers offer n for sale, and, while they naturally ribe them in attractive terms, they to the facts as they know them,

they are offering, and do not dwell principally upon other successes. And the statements they make are conservative, for good bankers are among the most conservative of people; promoters and sellers of fake and speculative securities the least so. The degree of conservatism shown is often a good test of whether the security described is worth investigating or not.

First-lien bonds of railways and industrial and public utility companies are to be had to yield from 5 to 6 or even a larger per cent. Foreign government bonds are offered to yield 8 per cent and more. Short-term bonds and notes, excellently secured many of them, return from 6 to 8 per cent at present prices. Tax-exempt Government and municipal bonds are selling on a 5 to 6 per cent basis. High-grade preferred stocks can be bought to return from 5 to 7 per cent. What more can any sane person want?

The phonograph stock salesman told the writer that he had sold his milkman five hundred shares of his stock. One thousand dollars are what it cost him, hard-earned money probably; and what are his chances of ever getting it back again? Pretty slim, we should say. Suppose that he had put this thousand dollars into Liberty Bonds and been content to get 54 per cent on his investment. Would he be better or worse off ten years from now? There is no question in our minds about it. Of course his phonograph stock may be extremely valuable some day, and, for his sake, we

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he bought it? The stock pays no dividends, and never has paid any; production is just beginning, and earnings, if indeed there are any at all, cannot amount to very much. The stock is a speculation pure and simple, and if the milkman bought it as a speculation with his eyes wide open we have no quarrel with him, for he is the one to decide whether he can afford the luxury of speculation. But if he thinks he was buying an investment he is either ignorant or foolish. Ignorance is no crime and can be remedied by the exercise of due care and common sense; foolishness is another matter. In our opinion, however, there is little excuse for either. There are many sources from which investment information may be obtained, and there is no reason why the man or woman who needs such information should not get it. And, in conclusion, we ask-when the opportunities for purchasing investment securities are so favorable, why should any one waste his time with speculations?

QUESTIONS AND ANSWERS

Q. I note that the new issue of $230,000,000 Northern Pacific-Great Northern Railway Companies Joint fifteen-year 6 per cent bonds may be converted into 6 per cent Refunding and Improved Mortgage Bonds of the Northern Pacific Railway Company, or into. 7 per cent fifteen-year General Mortgage Bonds of the Great Northern Railway Company. Can you give me some information about these issues?

A. A brief description of them is as follows:

Northern Pacific Railway Refunding and Improvement Mortgage 6 per cent Bonds, Series B, to be dated July 1, 1921-to mature July 1, 2047-interest payable January 1 and July 1 in the City of New York. Redeemable at the option of the company on and after July 1, 1936, on any interest date, at 110 per cent and accrued interest. Coupon bonds in denominations of $1,000, $500, and $100, registerable as to principal. Fully registered bonds in denominations of $1,000 and authorized multiples thereof. Coupon and registered bonds and the several denominations interchangeable. These bonds will be secured by a direct mortgage or collateral lien on 6,873 miles of road, appurtenances, equipment, securities, terminals, leasehold interests, trackage rights, etc., and all other property of the company hereafter acquired with the proceeds of these bonds. Bonds may be issued under this mortgage for acquisition of property and for equipment, additions, and betterments, becoming subject to the lien of the mortgage for a principal amount equaling the actual cost, except that after the amount of the bonds outstanding shall have reached a sum specified in the mortgage additional bonds may be issued only to the extent of eighty per cent of such cost. The authorized issue is limited to an amount which, together with all outstanding prior debt of the railway company, after deducting therefrom bonds reserved to retire prior debt, shall never at any time exceed three times the amount of capital stock then outstanding.

Great Northern Railway Company

Safeguarding Your Family

by Your Will

Men who are prudent give thought to the problem of the financial security of their dependents for the future. And it

is not all a problem of getting—it is one of disposing. For the average nan the latter is the harder, oftentimes because it is a thing he dislikes to go into, or because he thinks the necessity too remote. But

if he is to do that duty which he owes his family, a man must think and learn about. wills, and about executors, and about trustees. For in these things the future of his loved ones may be bound up. What Is a Will?

Property is never without an owner. As has already been pointed out, if a person fails to make valid disposition of his property by will, upon his death the law directs who shall receive it, and in what amounts and proportions. Furthermore,

What is a Will?

Safeguarding Your Family's Future

and witnessed by others, stating what disposition of his property shall he made after his death. (In some States witnesses are not required.)

A person making a will should rememher the uncertainties of life; that the will

may go into effect shortly, and that it
may, therefore, be his last opportunity to
express his wishes in regard to his prop
erty, Viewed in this light, the will is a
very important instrument and should be
drawn by competent legal authority.

A mere written declaration of one's
wishes may not be a will. So called
"home made" wills are dangerous, and
too often worthless, for many niceties of
language and law must be considered and
the manner of execution and declaration
given careful attention.

Can Will be Changed?
Many persons hesitate to approach the
preparation of a will, feeling that it is a
executed crista

Can a Will be Changed?

Who Will Carry Out Your Wishes?

WITH

ITH the best of intentions for the welfare of their families, many men neglect to consider the future. They forget that women and children, left without the protection of husband and father, are often obliged to endure unnecessary hardships.

There is one best way to provide for the time when you may not be here. That is to make a will. What is a will? Can it be changed at any time to meet new circumstances? What is an executor and trustee? Can the money and property you leave be surrounded by such safeguards as to protect it against the business in

experience of those who may receive it? Is there a way to direct the distribution of property and the income from it over a period of years?

The head of a family owes it to those who look

to him for protection, to be informed on these questions. They are discussed in a booklet entitled "Safeguarding Your Family's Future, published by the Trust Company Division of the American Bankers Association. Trust companies throughout the country have supplies of the booklet for free distribution. Ask one of these companies or write to the address below for a copy.

TRUST COMPANY DIVISION AMERICAN BANKERS ASSOCIATION FIVE NASSAU STREET, NEW YORK

COMPANY

1896-1991-NO

(Continued)

General Mortgage 7 per cent Gold Bonds, Series A, to be dated July 1, 1921 -to mature July 1, 1936-interest pay. able January 1 and July 1 in the City of New York. These bonds are not to be redeemable by the company before maturity. Coupon bonds in denominations of $1,000, $500, and $100, registerable as to principal. Fully registered bonds in denominations of $1,000 and authorized multiples thereof. Coupon and registered bonds and the several denominations interchangeable. The general mortgage was authorized in March, 1921, and no bonds have as yet been issued under it. The total mileage to be cov ered (directly or collaterally) by the general mortgage is 7,675 miles, constituting approximately ninety-eight per cent of the total mileage of the Great Northern system, and the company's outstanding mortgage indebtedness (exclusive of the general mortgage bonds issuable in conversion of the joint 61⁄2 per cent bonds) will be at the rate of approximately $21,000 per mile. No more of the underlying mortgage bonds may be issued. There will also be pledged under the general mortgage such shares of Chicago, Burlington, and Quincy stock as are released by reason of conversion of Northern Pacific-Great Northern Joint 62 per cent bonds into Great Northern General Mortgage Bonds.

Q. Please tell me something about the 15 year 6 per cent Equipment Trust Gold Certificates of the Grand Trunk Railway of Canada, Series "F," due 1936.

A. The total of these certificates authorized and issued is $12,000,000. They are dated February 1, 1921, and issued under the Philadelphia Plan. Title to all equipment-these certificates are is sued against new equipment costing $16,000,562-is vested in the trustee for the benefit of the certificate holders. The equipment is leased for rentals equal to the principal and dividends of the certificates together with insurance, taxes, and all other charges. These rentals rank as a railway working expenditure and constitute a claim against earnings prior to both principal and interest of mortgage debt. Semi-annual payments of $400,000, beginning August 1, 1921, are to be used to purchase certificates in the open market, if obtainable, at or under par, but the issue is not callable. The Grand Trunk Railway is the oldest railway system in Canada and is being operated in connection with the Canadian National Railways, the Government-owned system of Canada.