The New Books (Continued)

as to the wonders of this island and the author's hopes for its future abundantly justified in the chapters of this book. Virgin Islands (The). Our New Possessions

and the British Islands. By Theodoor De Booy and John T. Faris. Illustrated. The J. B. Lippincott Company, Philadelphia. $3. When the last hostile submarine shall have been put out of commission and the freedom of the seas is achieved, there will probably be a revival of travel on an unprecedented scale. Americans will then find our new possessions a goal of the greatest interest. Meanwhile a book like this will whet the appetite for the good things that are to come This volume would make an excellent guide-book for the traveler Its information is complete and well presented, and there are many good pictures.

HISTORY, POLITICAL ECONOMY, AND POLITICS Organized Banking. By Eugene E. Agger, Ph.D. Henry Holt & Co., New York. $3.

This valuable volume analyzes the mod ern bank's activities and shows how, through these activities, the bank functions as a far-reaching economic agent. A special feature of the book is its analysis of the principles of our new Federal Reserve system, together with a consideration of the results so far achieved by that system.

WAR BOOKS

Japan or Germany. The Inside Story of the Struggle in Siberia. By Frederic Coleman, F.R.G.S. The George H. Doran Company. New York. $1.35.

The reason why the title "Japan or Germany" was chosen for this volume was doubtless because uppermost in the author's mind was the query "Should Japan Go to Siberia?" and also the conviction that, whether Japan goes or not, Germany is getting ever closer to Siberia. Most of the book does not have to do with Japan or Germany, but with Siberia itself, unaffected by any outside influences. In no work with which we are acquainted do we learn so well about the Siberian people and the varying conditions under which they have had to live. Indeed, in no book do we get such a side-light on the Bolsheviki as here. In this connection the character study of Agarev, Mayor of Vladivostok, seems worth a 1 the rest of the book together.

Runaway Russia. By Florence MacLeod Harper. Illustrated. The Century Company, New York. $2.

The author of this timely volume spent the first nine months of 1917 in Russia. Her book, with its clever title, portrays conditions under which the Russian army had been fighting for three years. On the western front, as she says, the Allied army is backed by the people at home. In Russia, on the contrary, "nothing but treachery existed behind the lines." Nothing? There surely must have been spots of loyalty here and there. Further sweeping statements are that "there was no ammunition for the guns," and " no motor ambulances were there to rush the wounded to the hospitals." It is true, of course, that the conditions of war for the Russiam army were ghastly enough, in all conscience. As to the civilian side of life, the author's first-hand accounts of the riots and street fighting (of which as yet we do not know all the horrors) and the whole pitiful tragedy of 1917, of which she was a witness, are described in a feminine and emotional but very dramatic and moving

manner.

Trucking to the Trenches. Letters from France. June November, 1917. By John Iden Kautz. Houghton Mifflin Company, Boston. $1.

Like Airy

Nut Meats

Whole Grains Puffed to Bubbles

Don't serve Puffed Grains just at mealtime. They are all-day joys in summer.

Boys like them crisped and lightly buttered, to eat like peanuts when at play.

Home-made fudge is light and nut-like with Puffed Rice mixed in. Ice cream is five-fold better with Corn Puffs scattered on it.

And Puffed Grains add to berry dishes what crust adds to a shortcake.

No July Day Without Them

Let every summer day bring children some Puffed Grain delight. To children they are food confections. To parents they are ideal scientific foods.

They are simply grain foods steam exploded-puffed to eight times former size. Every food cell is blasted, so they easily digest. A fearful heat creates in them a fascinating flavor.

Days should start and end with some Puffed Grain in milk. Between times they will take the place of sweetmeats. Why serve a less-liked cereal food when everyone prefers these toasted bubble grains?

T

HE unprecedented demand for money to finance the war has placed maturing investment securities, as a whole, in an uncertain position. With the continuance of the world struggle corporations have fought an uphill fight for capital. As far as the railways are concerned, the Government has temporarily provided a satisfactory solution. Our industrial corporations, particularly those which were readily adaptable, have been able to show large earnings under the present trying circumstances. Clock factories are making fuses and automobile makers are turning out Liberty motors. Their financial necessities have been met partly by means of the usual bank accommodation and partly from their own profits, which in many cases have been plowed back into the properties.

The question is, What will happen to the public utilities?

A few days ago the War Finance Corporation made an advance to the United Railways of St. Louis, and momentarily a situation was taken care of which up to that point had caused some little con

cern.

The situation of the Brooklyn Rapid Transit Company is one that focuses upon itself the attention of the investing public. This company has $57,735,000 5 per cent notes, the largest single block of like obligations falling due during the balance of this year, maturing on July 1. At the time of the present writing the Company has applied to the Capital Issues Committee for permission to refund these notes, and has been refused. In view of the uncertainty, the directors have deferred payment of the usual quarterly dividend to the stockholders. In such a state of affairs one of three things may befall: either (1) a group of banks and bankers will refund the issue; or (2) the concern will effect a compromise with the note-holders, such as an extension of the notes at a higher rate of interest; or (3) the Federal Government will, as in St. Louis, advance the necessary funds against sufficient collateral. In the first case we have a very happy solution; in the second, civil morale would be to some degree endangered. The Government can not afford to have this happen on any considerable scale. And because of the policy pursued with the railways, which also are public servants, and because of the recent statements of President Wilson and Secretary McAdoo that these properties perform a vital service in war work, it would seem to be reasonable to assume that Government assistance for public utilities in such a condition is probable and desirable. Although in some isolated instances companies, notably traction companies serving munition plants, ship-yards, or navy-yards, may be taken over for the duration of the war, it is not likely that the gigantic task of putting under Government management the almost innumerable public service corporations will be attempted in the immediate future. The aid of the War Finance Corporation could be extended to them without this radical step being taken.

Governmental assistance to the public utilities would strengthen the companies themselves. The immediate effect on their securities would be to enhance their value; but ultimately standardization might, by leveling values, discourage trading, and

to some extent limit the market for them. The incentive to open new fields of enterprise would be removed, although companies already fortunately established in booming industrial centers would receive a new lease of life, especially as the new order would carry with it needed rate increases.

After all, these considerations do not seriously affect long-term public utility bonds in the same sense as they affect securities which may fall due before the termination of the war. The long-term investments are certain to go on paying their interest with their accustomed promptitude. The long-term issues, unless the war lasts beyond the next decade, will again enjoy the high favor of the investing public. At present prices, which reflect to some degree the present uncertainties of the situation, most of the seasoned public utilities are attractive beyond precedent.

QUESTIONS AND ANSWERS

Please advise whether or not you consider City of Philadelphia 11 per cent bonds, which I ste advertised in the newspapers, a proper investment for a woman.

A. Most certainly. These come into the class known as "widows' and orphans' bonds." Being free from the Pennsylvania tax, which is exceedingly high, this issue is particularly attractive to residents of that State. Outsiders would, in our opinion, do better in buying equally high grade obligations of some other city, such as New York, whose bonds, not carrying this tax feature, now sell at a price to yield the purchaser about 4.50 or 4.55 per cent, as contrasted with these Philadelphia bonds, which are now offered to yield about 4.30 per cent. Both of the above-mentioned investments are exempt from Federal income tax.

Q. Would you advise investing in any of the paper-manufacturing concerns at the present time? A. Investment in a first-mortgage bond, short-term note, or preferred stock of a good company might be made with safety. In buying, however, this fact should be borne in mind: that while most of the paper and pulp companies of both the United States and Canada have been exceptionally prosperous in the past few years, have accumulated substantial surpluses, and have put unusual amounts into additions and improvements, this industry has recently been declared non-essential, and it is hard to say what effect this will have on future earnings.

Q. A friend has told me something about certain bonds of the city of New Orleans known as "Premium Bonds."

Apparently these bonds are issued under a lottery plan.

Will you kindly give full particulars?

A. Immediately after the Civil War the finances of the city of New Orleans were in a chaotic state. At that time the Administrator of Finances announced that the City Council, in its efforts to find a solution for its problems, had been compelled to "abandon the ordinary forms of finance as unequal to the occasion, and to seek other and perhaps novel means of meeting the exigency." He therefore submitted a plan for the liquidation of the entire city debt, principal and interest, within fifty years, known as the Premium Bond

Plan.

The main object of the plan, which was ratified by the Legislature under Act 31 of

ESTABLISHED 1865

Farm Land Bonds Netting 7%

Security located in wellknown prosperous farming community.

Value over twice loan. Income from farm products five times interest.

First serial instalment of principal already paid off. Denomination $500. Maturities one to nine years.

Farm land of this character forms ideal security for investment and is of utmost importance to our country at this time.

Ask for circular No. 985-Z.

Peabody, Houghteling & Co.

(ESTABLISHED 1865)

10 South La Salle Street Chicago

The worth of a farm mortgage depends upon the land behind it and the care with which the loan is made. The security for

Straus Farm
Mortgages

consists only of improved, productive farms in the richest sections of Ohio, Indiana, and Illinois-the very best land in three of the richest agricultural States, unexcelled for dependability because climate and rainfall are certain, the big buying markets are near, communities are well settled and values are stable.

In our record of nearly sixty years without loss to a customer, you have assurance that our loans are carefully made. As further security, our capital and surplus of $3,000,000.00 stands behind our legal guarantee of full payment of principal and interest at 5%.

Write for Special Bulletin and Booklet 0-6.

THE STRAUS BROTHERS COMPANY LIGONIER, INDIANA

||||||||||||||||||||KESTABLISHED 1865

1:1

Questions and Answers (Continued) 1876, was to convert the bonded debt of the city-which amounted to over $20,000,000, bearing an average annual interest of about 7% per cent into premium bonds redeemable in from one to fifty years with 5 per cent interest plus certain prizes. These new bonds were to be 1,000,000 in number, of the denomination of $20, divided into 10,000 series of 100 bonds each, of which a certain number were redeemable within a year. To determine the particular series that was redeemable, all of the numbers of the bonds were put into a wheel, where they have remained for forty years, and four times a year-on January 31, April 15, July 31, and October 15-as many numbers as there are series to be redeemed are drawn out of the wheel by a blindfolded orphan boy. Twice a year, on January 15 and on July 15, these drawn series participate in the premium drawing, at which 1,176 prizes ranging from $20 to $5,000, totaling $50,000, are distributed, and all bonds which do not win a special prize are paid at their par value plus interest, at the rate of 5 per cent from July 15, 1875. The interest is not compounded, but 5 per cent interest on $20 amounts to 50 cents every six months, and for this reason the minimum value continues to become greater with every prize drawing until 1925, when the last of these bonds have been drawn, and when the minimum value of each bond will be $70.

This plan is not an American invention. It is well known in Europe and has been adopted by many large municipalities.

Q. Will you kindly explain what security, if any, is behind the new 6 per cent notes of Armour & Co. ?

A. These are debenture bonds, and are

THE NATION'S INDUSTRIAL PROGRESS

Believing that the advance of business is a subjec of vital interest and importance, The Outlook vill present under the above heading frequent de cussions of subjects of industrial and commercial interest. The department will include paragraphs of timely interest and articles of educational vala dealing with the industrial upbuilding of the Nation Comment and suggestions are invited.

MOTOR-TRUCK DELIV.
ERY OF GOODS VITAL
TO THE NATION
BY GEORGE A. KISSEL

PRESIDENT KISSEL MOTOR CAR COMPANY

T

HE non-delivery of goods and sup plies necessary to the life of a cour munity can boost the high cost of living just as quickly as non-produc tion due to scarcity of labor or materials. Right now, at the beginning of summer, the cost of almost every commodity is unusually high. At first glance one would say that the demand is greater than the supply, when, as a matter of fact, the goods are manufactured and ready for consumption, but, owing to a lack of transportation facilities, they cannot be delivered fast enough to those points whence the demand arises.

We all know that the railways have more than they can handle. They are falling far short of keeping up the normal supply of goods while maintaining an uninterrupted delivery of supplies for the Government. In addition, they are called upon to rush

having over common They are not a mortgage, but the trust agreement securing them provides that no additional mortgage shall be placed on the properties and assets of the company which does not include these debentures in the lien of such mortgage. No foreclosure can be accomplished in case of default. The holder is simply a note-holder, and has prior claim only on balance of assets after the $50,000,000 real estate first closed mortgage has been satisfied. The company's total assets at the close of its last fiscal year were $314,174,135.89.

TWO YEARS

FROM NOW

will you be better off financially?
It all depends on how much you save and
how you invest your savings. By using

The Twenty Payment Plan

you will not only induce and foster
saving, but will find yourself the owner
of income-producing securities within
two years.

Booklet explaining this method of investing, as
well as copy of our fortnightly publication
"Investment Opportunities'
will be sent without charge upon request for
63-OL

We Specialize in
SCRIP DIVIDENDS

SLATTERY &

Investment Securities

Founded 1908)

40 Exchange Place

New York

lowa

ers doing Government work, as well as transport supplies to the workers in the factories.

Thus it can be seen that the railways, while handling a herculean task in a manner that speaks well for Yankee ingenuity, are still unable to keep all civilian channels as fully supplied as formerly. Such a situation will eventually threaten the life of our communities if not remedied. The stocks in retail stores and warehouses are apt to be greatly depleted if supplies cannot reach them regularly and in sufficient quantities. As goods become scarcer the prices on the remaining goods will increase in the same proportion as if the goods were not being manufactured at all.

COMMUNITY TRANSPORTATION COMPANIES

To those communities that have not felt as yet the inability of the railways to keep their merchants supplied with goods, but that realize that it is good judgment to take immediate steps to prevent their being placed in such a position, the motor truck offers immediate and dependable relief.

That the Government realizes the situation can be seen in a good many ways. The recent appropriation of over two hundred and fifty million dollars for more good roads will make it easier for communities to help themselves. The committees on highways and transportation, the excellent work of the Council of National Defense, the inauguration of return loads bureaus, community delivery associations, etc., are all for the purpose of enabling the country to maintain its normal life and work, and at the same time help the railways to keep the lines of communication open between this country and its allies.

I doubt if business men are aware of

Motor-Truck Delivery of Goods Vital to the Nation (Continued)

the unusual opportunity the formation of a local motor-truck transportation company affords, the object of which is to haul produce and materials within a radius of fifty miles of a city, or between it and neighboring towns.

If there is one thing that a community must depend on, it is the receiving and shipping of the necessities of life. Not all cities are manufacturing or producing centers. Since their growth from village to town or city they have had to depend on certain supplies coming from the outside. Now, at a time when the facilities for bringing in supplies are threatened to be curtailed, it is up to the local business men, commercial club, chamber of commerce, and other business organizations to take immediate steps to provide dependable transportation.

It has been conclusively demonstrated during the past winter that motor trucks can be used to a decided advantage in relieving the railways of short hauls, and it has also been proved that trucks can be kept in operation over long-distance hauls, as witness the routes now in operation between Akron and Boston, Chicago and New York, Boston and New York, and many others.

Over these routes trucks have been kept in continual operation during the past winter, which everybody knows was one of the most severe in many years, especially in the East. If this is possible, it surely is feasible to keep motor trucks running over shorter distances-out of cities to country communities or to neighboring cities, which, as a rule, are usually connected by fairly good and much-traveled roads.

GOOD ROADS A NATIONAL ASSET

And this brings me to a subject on which I would like to touch-good roads. There is not the slightest doubt that those tax-payers who have paid taxes on good roads in their communities have found that such taxes were well spent, and that they have been returned many times through the increased business that these good roads have created and a natural increase in realty values.

It is estimated that there are 2,200,000 miles of public roads within the United States, yet only 156,000 miles of these roads are highly improved or hard surfaced -hardly one-fifteenth of the total a fact that should give National importance to the vital necessity of more good roads.

I believe that every community should form a local committee to interview every property-owner, urging that time and money be spent this summer to clean up the roads leading in and out of town.

That it is possible for such organizations to accomplish good work has been proved in different parts of the country. This work depends largely upon local conditions, and to amount to anything the work should go beyond merely keeping the roads filled up by dragging. In fact, it should include the minor betterments on roads which have not been improved, as well as on the improved sections.

I believe that if communities will start this road-building movement this summer and fall, enroll the local children, youth, men, horses, and trucks in the work, even one day a week, dividends will be returned tenfold.

FORM LOCAL TRANSPORTATION COMPANIES

There is in almost every community a group of public-spirited citizens who are

"SUNSHINE & CONSOLATION" IS SENT FREE. "POEMS OF FAITH, CONSOLATION AND CHEER"— also some "EVERYDAY THOUGHTS" and an ART SUPPLEMENT comprise Volume 43 of the Cypress Pocket Library 34 famous poets are represented by their best work. "A vest pocket edition of highest literary value." Such is the already famous "ONCE-IN-WHILE BOOK. No conditions. No subscriptions. No "follow-up." Simply write Southern Cypress Assn., 1266 Hibernia Building, New Orleans, or 1266 Heard Building, Jacksonville, Fla.

WHITE MOUNTAIN

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