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All legitimate questions from Outlook readers about investment securities will be answered either by personal letter or in these pages. The Outlook cannot, of course, undertake to guarantee against loss resulting from any specific investment. Therefore it will not advise the purchase of any specific security. But it will give to inquirers facts of record or information resulting from expert investigation, leaving the responsibility for final decision to the investor. And it will admit to its pages only those financial advertisements which after thorough expert scrutiny are believed to be worthy of confidence. All letters of inquiry regarding investment securities should be addressed to


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Individual Income Tax Return Blanks

for Incomes in Excess of $3,000

This Department will be glad
approved the blank form

to aid you in making your income
for Income Tax returns on indi tax return and in clearing up
vidual incomes in excess of $3,000. your income tax problems.
A copy of this blank (Form 1040)

Our various
may be obtained at our offices.


offices, located in the important A representative of the Internal

investment centers, are

Revenue Bureau is located in
the office of The National City

equipped to render valuable serv

ice in this connection.
Company and is co-operating
with the experts in our War There will be no charge for this
Tax Department.

The War Tax Department supplements the various departments in this Company
which are making a study of specific classes of securities. Through these depart-
ments The National City Company will be glad to submit offerings of securities
or to make timely suggestions regarding investment problems. Send for circular Z-67.

The National City Company
National City Bank Building New York


10 State Street

Ten Eyck Building

Marine Bank Building

Guardian Building

Farmers Bank Building

Dime Bank Building


1421 Chestnut Street

137 So. La Salle Street

St. Louis, Mo.
Miners Bank Building

Bank of Commerce Bldg.

Kansas City, Mo.
Munsey Building

Republic Building

741 15th Street, N. W.

McKnight Building

Trust Co. of Ga. Building

First National Bank Bldg.
303 Baronne Street

Short Term Notes


424 California Street

Hibernian Building

Railway Exchange Bldg.

Hoge Building

London, E. C. 2. ENG.
36 Bishopsgate


ESTABLISHED 1865||||||lll


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SAVE THE SAVINGS BANKS READER has sent us the following seeking advice on the exchange of savings letter, which we reprint with our banks deposits for investment securities. comment thereon:

To all of them we have made the same

answer : “ Keep your money in the savings I am putting most of my current savings into

bank.” We have gone so far as to say to United States Government bonds, but I have $1,000

readers who desired to purchase Liberty in the savings bank, and I want to get it earning more. Will you kindly suggest a few issues suitable

Bonds or War Savings Stamps with savings for this small investment ? I have offered to me bank funds that it is better to leave savtwo $500 bonds to return about 6 per cent. I am ings bank deposits untouched, and use only getting only 4 per cent from the savings bank.

new savings for the support of the Govern

ment. Generally speaking, we do not recom

We do not believe that money should be mend the withdrawal of funds from savings

taken out of the savings banks to be loaned banks for the purchase of investment secu

to the Government. The credit of the Govrities. The great savings banks of the

ernment is more likely to be disturbed than country are institutions conducted without

aided by such a course. Over and over profit for the purpose of enabling people of

again it must be reiterated that the need of small means to invest their savings at a fair rate of interest with absolute security. The war cannot be financed by the sale of

the Government now is for current savings. Savings banks perform a great function in

securities by one citizen to another. This the country. The funds deposited in them

does not increase the wealth of the country are invested by the trustees with great care ander rigid State laws for the protection

by a single cent. New wealth can come

only from new production, and the billions of depositors. About $5,500,000,000 is now on deposit

that we must put at the service of the Gov

ernment to bring the war to a victorious in American savings banks—an amount

end must come out of our current producequal to the entire stock of money in the

tion and our current savings. country. But the savings banks do not hold the money intrusted to them by their depositors. If they held the money idle in

QUESTIONS AND ANSWERS their vaults, it would be earning nothing,

Q. A circular of the and therefore the banks could pay no inter

Company was mailed

to me by a firm of investing bankers who are memest to their depositors. All of these savings

bers of the New York Stock Exchange. It debanks funds, excepting a very small amount

scribes certain 7 per cent gold notes, issued in 1917 of till money, are invested in high-grade and maturing in 1920. With each $1,000 note is a bonds, mortgages, and loans. In other

stock option warrant entitling the holder to buy words, the small savings of millions of within a certain period 25 shares of stock at $15 a people are through the savings banks share. I cannot understand why this concern should mobilized to finance a very considerable

try to float the stock at $45 when it is being sold

on the exchange at $30. proportion of the capital needs of the country. This $1,000 that you have in the A. The convertible bond is an excellent savings bank may now be loaned to a medium for providing new capital for a wheat farmer in the Mississippi Valley, or corporation. It is, in fact, an option to purit may be loaned to a railway that has used chase before the end of a stated time the it for the building of new tracks. All the stock of the corporation at a stated price, savings banks deposits are at work in the usually fixed at a point considerably higher country producing wealth. Your interest than the market valuation when the bond from the bank is your share of this wealth is issued. If the corporation prospers and production, turned over to you in payment the market value of the stock rises above for the use of your capital."

the conversion price during the period, If you withdraw your funds from the then the privilege becomes of value to the savings bank, the bank will probably not bondholder. For example, in the case of be obliged to sell any of its securities to get the corporation you mention, if during the the money for you, because some other period during which the bond can be conindividual will be making a deposit while verted into stock at $45 a share, the stock you are withdrawing yours. But if a great rises, say, to $60 a share, the holder of the many people, like yourself, decided that convertible bond has the privilege of conthey preferred to do their own investing in version into stock at a cost to him of $45 and securities rather than have it done by the selling the stock on the market for $60, savings banks trustees, the result would be thus making a profit of $15 a share. that the savings banks would be obliged to In recent years convertible bonds have sell securities to get the funds to pay de been a popular and desirable form of corpositors, and it might be that the very poration financing, especially in providing securities sold would be the securities new railway capital. Among the railway bought by the depositors.

companies that now have convertible bonds It must be plain to any one who stops to outstanding are Atchison, Atlantic Coast consider the function of savings banks that Line, Baltimore and Ohio, Chesapeake and any wholesale withdrawal of deposits would Ohio, St. Paul, Erie, New York Central, New force a heavy liquidation in our markets of Haven, Norfolk and Western, and Southern the high-grade securities now in the vaults Pacific. When Mr. Harriman was buildof the banks. At a time like this, when the ing up his Pacific system, he used the confinancial markets of the world are burdened vertible bond with great success, and the with an unprecedented volume of securities purchasers made handsome profits. The for the prosecution of the war, it is unthink convertible bond is a desirable method of able that the savings banks should be obliged providing new capital for a growing corto force more securities on the markets. poration because it facilitates the raising of Of course the Government would not allow capital when there is no adequate market such a thing to happen. The Secretary of for new stock; while at the same time it the Treasury would consider it a paramount makes it possible to put the company's duty to keep savings bank credit as sound financing on a sounder basis later on, by as the credit of the Government itself. reducing the debt and increasing the cap

A number of inquiries from Outlook read ital if the growth of business during the ers have been received the last few months period of conversion advances the market


Issued with

approval of a State Railroad Commission.


Company supplies

power to industries of vast importance in times of

peace as well

as war.

Send for Circular No. 10042.

Peabody, Houghteling & Co.


10 South La Salle Street

Chicago, Illi.





You owe it to your
country to purchase
its obligations first.

inonths ago


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Questions and Answers ( Continued)
value of the stock above the conversion

Liberty Loan
It is always desirable to finance a com-

pany with as little debt as possible, com-

How many times do you find questions coming pared with the amount of share capital. up in your mind concerning Liberty Loan bonds

which you can't answer? The reason for this is that in a period of

You can easily and quickly learn almost any fact lean earnings a company with a large debt concerning Liberty Loan procedure by consulting may be unable to pay its interest, and so be our conveniently indexed booklet.

Send for Booklet H-8
forced into bankruptcy; if the bulk of the

“ Your Liberty Bond."
capital is in the form of stock instead of
bonds, then the reduction in earnings and


Above Par, (Page) 10. the consequent reduction of dividends does

Destroyed Bonds, 10, 11.

Accrued Interest, 17. “Dollar a Week," 15. not affect the solvency of the company

Baby Bonds, 16.

Excess Profits Tax, 5.

Ranks, 10, 12, 13, 14, 16. Exchanges, 6.
Interest on bonds must be paid, but divi Borrowing, 11, 14, 15. Face Value, 9.

Conversions, 6, 8.
dends can always be reduced or passed.

First 3% Bonds, 4, 5, 6, 7, 8.

Coupons, 12, 13, 15. Free Safekeeping, 11. We discussed in these columns several

Dates of Maturity, 4, 8. Future Value, 9, 10.

Dates of Redemption, 5, 8. Germany, War with, 3, 6. the dangerous growth of rail Dates of Interest, 7, 8, 17. Higher Rates, 6, 7.

way debt as compared with capital in the
form of stock. A railway with a large pro John

Muir & Co
portion of debt has a very narrow margin
of safety in periods of thin earnings. Nearly

Odd Lots all the railway bankruptcies of recent years

Main Office, 61 Broadway, N. Y. have been of companies that were unable

New York, N. Y.

Brooklyn, N. Y. to sell stock and were forced to issue an

Newark, N. J.

Bridgeport, Conn. abnormally large proportion of bonds.

New Haven, Conn.
When earnings fell off, these companies

Members N. Y. Stock Exchange
were unable to meet their obligations to
their creditors or bondholders, and were NOT ONE DOLLAR LOST
forced into receivership. The convertible
bond is a means of bridging a company
over a period in which it cannot provide

DANFORTH FARM MORTGAGE needed capital requirements by the sale of


No Investor has ever foreclosed a Mortgage, taken a foot new stock, and gives it the opportunity of land or lost a dollar on a Danforth Farm Mortgage. later on, if earnings sufficiently expand, to

For further information regarding our Farm Loans and

Bonds write for Booklet and Investors' List No. 58. readjust its financing on a sounder basis. Q. I own the following railway stocks :

BANKERS 10 shares Mil., St. Paul & S.S. Marie, costing $74)

Founded A.D. 1858 WASHINGTON

ILLINOIS 5 shares Southern Pacific, costing.

98 10 shares Atch. Top. & Santa Fé, costing.. 96 10 shares New York Central, costing


Would you advise selling these stocks at present

1918 Income and Federal
prives, taking a considerable loss, and reinvesting
the proceeds in higher grade securities with the
possibility of getting a better return on my money?
I am a holder of both issues of Liberty bonds and Tells individuals, partners, fiduciaries, and corpora-
shall invest in the next issue. I have about $1,000 tions how best to prepare 1918 tax reports for the
to invest. What would you advise me to purchase ? income tax, excess profits, capital stock, stamp and

every other Federal tax. It answers every question A. We presume the “ Soo” stock is not und tells precisely what to do in your particular case. the common stock of this company, but the The only complete, up-to-date, authoritative book Wisconsin Central leased line stock that

covering all Federal taxes.

Includes the laws, amendments, treasury decisions and regpays a dividend of $4. If you sell these ulations to Feb. 1, 1918 and the combined advice of five stocks on the present market, you would

recognized experts. 704 pages. $3.00 per copy.

At your bookseller or from receive about $2,500 for them. Your divi

Save time, energy and PRENTICE - HALL, INC. dends are $180 a year. In other words, avoid errors by using

Publishers your investment is selling in the market

this book as your guide. 70 Fifth Ave., New York now on a basis of about 7.2 per cent. You could invest this money in bonds or other we can certainly anticipate a rise in the securities of greater stability, but if you market value of these stocks when peace is did so you could hardly expect to receive in sight. as high an interest yield. High-grade rail As to the further investment of $1,000 way bonds

are now selling to yield from that you are now considering, we think you 5 to 6 per cent, and there are some excel would do well to diversify your purchases lent public utility bonds that yield at cur of securities. You have the choice of highrent prices from 6 to 7 per cent. Some grade farm and real estate mortgages, of short-term securities, including international underlying railway bonds of undoubted obligations, can be bought to yield a still stability, seasoned public utility bonds, and higher return, but we think that, under the short-term corporation and Government circumstances, you would do well to hold securities. Any of the large financial instiyour railway stocks, all of which are of tutions advertising in The Outlook will be high rank. As was recently pointed out in

glad to give you a selected list of securities these columns in a discussion of Govern of these various descriptions. ment.control of railway financing during

We suppose that you are putting some the war, the dividends that you are now

of your savings in the Government War receiving on these railway stocks will un

Savings Stamps. We know of 10 better doubtedly be paid during the period of the

investment. They return about 4 per cent war, and there is every reason to believe and are easily converted at any time into that when railway financing is readjusted

cash. We think that every investor who is after the war the Government will deal

accumulating savings ought to put a cer, fairly with the owners of railway securities.

tain portion of his savings at the disposal While a long war would mean a further

of the Government by the purchase of decline in the market quotations of these

War Saving Stamps. These can be bought stocks, we believe that the dividends are as well assured as any corporation dividends ;

at post-offices, banks, and retail stores throughout the country.

First Mortgage Certificates


Denominations, $200-$300-$500-$1,000-$3,000

Secured by an equal amount of first mortgages
on real estate deposited with First National
Bank of Kansas City, Trustee, and the assets
of the Waddell Investment Company.

Ask for our Booklet

and Financial Statement

Waddell Investment


Capital & surplus $500,000

Established 1872

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A recent “Knoll Paper " on

“ The Children of the Church” has brought us the following response. We are glad to receive it and to give it to our readers, because it furnishes a concrete illustration of one way in which the Church can fulfill its unfulfilled duty of ministering to its children.

As the welfare of children, materially and spiritually, has always been of interest to me, your " Knoll Paper” on “ The Children of the Church," in the issue of The Outlook for January 16, struck a sympathetic chord, and I agree with you that as a general rule the children are not given the consideration due them in the average church. However, there is an exception to this rule in our little city of Glens Falls, Christ Church (Methodist Episcopal), whose pastor is the Rev. Charles (). Judkins. In addition to our Bible school [held every Sunday afternoon), Dr. Judkins holds two special church services for the children each week: junior church at 6:30 Sunday evenings for young people from the ages of twelve to twenty, and child's church for the little ones from eight to twelve, which meets each Thursday afternoon at 4:15. At each of these services there is preached a specially prepared sermon. Many young people outside of Christ Church take advantage of the junior church, which proves its value and shows that it is appreciated.

As to our Bible school, we have a very well-equipped building for the purpose, with separate class-rooms for each class of the senior and intermediate departments, these rooms being provided with tables and chairs ; and forty minutes is given to the study of the lesson. We also have a primary department and a kindergarten, which latter is in charge of a regularly trained kindergarten teacher. We have a graded school governed by a yrauling commission, and we are using the Constructive Bible Studies as outlined by the University of Chicago Press. Great care is taken by the grading commission in the selection of teachers, with the result that we have an efficient body of men and women for the work. One of the rules provides men teachers for the boys and women for the girls.

Dr. Judkins not only realizes the need of special church services for the children, but also feels the need of a better knowledge of the Bible among the adults ; and, with that end in view, he has a men's class and a women's class for the modern critical constructive study of the Bible, on different evenings of each week. The attendance at the men's classes averages ninety and at the women's over a hundred. We are peculiarly blessed in having for our clergyman a man with a vision.

L. CAROLINE MAYER. Glens Falls, New York.

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BOSTON ELECTION On the question of women voting as to school committees, no reform was gained in Boston, despite the fact that most of the reform or good government nominees were elected-men only voting for these. Taking this into account with the New York suffrage and Tammany victory, would not the natural inference be that the question be left to single States at least, if not to the women themselves?

CHARLES H. LINCOLX. Worcester, Massachusetts.

Are You An Investor?

During the past year the Financial Editor of The Outlook has helped hundreds of Outlook readers to solve intelligently their particular investment problems. Perhaps you are contemplating a shifting of your present holdings or have fresh funds to invest. In either case we shall be glad to give you specific information on any securities in which you may be interested. This

service is entirely free to Outlook readers. THE OUTLOOK FINANCIAL DEPARTMENT

The Outlook Company, 381 Fourth Avenue, New York


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BY THE WAY A letter from an American soldier in France speaks appreciatively of the good things received at Christmas from the home folks : “ One fellow got four mince pies ; others fruit cake, etc. I myself have received two packages now, one with cigarettes, candy, socks, jam, handkerchiefs, and lots of things a sight for sore eyes over here. To-day I got a can of candy-fudge in it, real nut fudge. That was a good treat, too. The night before Christmas I went down by the river and slept in a bed for the first time since August. We built a fire in the fireplace and toasted crackers, ate nuts, dates, candy, etc. Christmas Day they gave us a fine dinner at the mess. I am not making any special plans, but just looking for the chance to get back to that little family, which has increased by one since my departure-another little girl. ... We think if we could get enough of the U. S. boys over here it would not take long to end this war.".

How do you pronounce cantonment? Some people call it can-tonment, some canton-ment, and some can-toon-ment. The first is preferred by the Century Dictionary,

the second by the Oxford English Dictionary, and the third by the Standard Dictionary. The last-named authority, however, has an advisory committee of eminent orthoepists, to whom words of disputed pronunciation are submitted, and a large majority of these have voted in favor of can-ton-ment. Can-toon-ment is said to be the favorite pronunciation in India. An old spelling of the word is “cantoonment.”

Cleanliness is near to self-veneration as well as to godliness. A trained nurse tells in a recent book an incident illustrative of this fact. A neglected boy of nineteen hail met with an accident and come to the hospital. The nurse had thoroughly washed and combed his hair and subjected hands and nails to cleansing and manicuring to which they were entire strangers. The boy was delighted. He felt his hair and looked at his hands a hundred times a day. When some friends came in to see him, he exclaimed, like a child with a new toy, “ Look at me hair! Look at me hands! Ain't it great !"

The English Government, according to the “ Railway Age," has granted another war bonus to railway workers--the fifth since the beginning of the war. The new bonus amounts to six shillings a week, bringing the total increase since February, 1915, to twenty-one shillings a week (about $5.25).

“ James Murray, a seaman on Commodore Perry's flagship on the voyage that opened Japan to the world, died yesterday at his home in Brooklyn.” So passed away the fourth “ last survivor of the Perry expedition who has come to the attention of this department since the publication in The Outlook of January 2 of the portrait of William H. Hardy, who at the time was supposed to be the only surviving member of the famous expedition. That trip to Japan seems to have had a remarkable influence in conferring longevity upon the fortunate cailors who accompanied Commodore Perry.

Tolstoy and Turgenev, famous Russian novelists, were contemporaries and friends but on one occasion they had a serious falling out. As gathered from a recent biography, this is the story of their quarrel:

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