‘o. AR? 7. 1929

in

bonds have recently become n

Time and Tide—‘

Due to the tremendous public’ iniorest in the flock '

that the market is In his favor.

Our February Offering List contains over I00 investment securities ylflllllll "om 413% to 7%. May we send you‘ n

Glfliliflilllll MONTlIAh pug";

‘llillllfll- Wlllihllwlllly they are selling at Ifllolllly lower price-g flu u, h. I yearn. "rue Investor seeking safe n c,‘ n “I "m"

m" "u" "Illlloyment of his funds

"mi" W!!! with every confidence

A

London. 805-‘

Real Estate Mortgage Bonds,

Opiates

471m“, EATURES which one naturally 54134;“ considers when plating money in o“... real‘ estate mortgages include z-g aim" Location of Property

W“: Earning Power

mama,” Margin of Value

‘T17: “fir” Quality of Ownership

M." Interest Return \

“M” Facility of Collection \

Coll"?

"Wt Real estate first mortgage bonds which Si. dean's. ma. we now oiier meet the requirements of m‘ Y” the discriminating investor. All of

them are secured by properties whose earning power has been demonstrated through actual operation.

Offerings will ‘be submitted upon request.

L-B

Royal Securities Corporation Limited a

Riley Building, Charlottetown Telephone 822

CHARL O ifTE TO WN

5% and 5%.%, BONDS

e500. DENOMINATIONS

MATURING

’ margin, but there will likely be ex-

“ ally ‘all mining" stocks (except with

1939, 1942, 1943, 1944,‘ 1945,1946, 1947

PRICE To YIELD OVER 4.90%‘ Eastern Securities Co., Ltd

. rrarowu can" o - Monrnasl.

Manchuria raised nearly 5,500,000 I l tons of soy beans this year. ,

New zmlmd h” - “cord WW, Quotations furnished through cour- °i the Sim“ depreciating w m? point where your margin is impair ‘mp m!‘ yea“ w“ 0i mum M ATWELL a‘ Co" ed do not resent being called for ad. chaflottetown omca diiiohal margin. The broker issues melee y 3hfhfi".XX“.§..SI.°ZTJ’ZZ‘..TZ.YZ'3 F" Influenza a ~ ~o~n ;:":.".:"§:::':r:;'.:":.':“::.::"5'1; n" Llnlmmi “in mum,” A“ Aha!“ "' "' "' "‘ 27o 275 using it for further purchases. Aummm Awnd‘ '" '" "' '" m 24 It is always better to have too “Wm '" -- "° 285 28° much margin than Just enough, not M" --- " 17 16 to oblige your broker but for your own 5'00 --- --- no 134 protection, so that should a. sudden Am"? 470F961’ --- w 40% 41 break in the market occur you are in 31118006 --- 49 43 a position to protect your account Cap. Rouyn ... ... 08 07% immediately. Trading on a narrow Cent. Man. ... ... 00 67 margin is a. source oi worry to client Clericy ... ... ... ... 32 35 and broker. Granada ... ... .. 30 27% A good broker has the interests 0i Howey ... ... ... 114 119 his clients at heart, and while h! Hudson nay ... ... 2275 2250 naturally strives to have them make Int'l Nick. ... 6510 0425 profits in the stock market, it i.s Just gods, flm-Qncg ... 25 25 as important to him to prevent loss- Lkce Shore ... 2025 2025 es if possible.‘ " h", Quebec ___ ___ _ 09 0g Now. when your Eastern Gadgets Mum“, .__ n. n 99 9g stock drops of! e. few points, your Mandy iso 15o 22:12" llihlgrliil dlzclllfillzfigvelixzi; fizogg;1;.x'l'_:z'_: 5:: u: then you are under max-glued to the Mon“ Hm u. n 15 15 extent of five‘ hundred dollars. If I New” m m m m 41 43 the broker has not a fair knowledge Norands ... ... .. 6470 8375 . HOnHQlK-u ee: ele en a 48 ‘ Sher. Gdrdon ... ... e 995 :9 Budbury Basin... ... 925 5 _ Iserspqsreeieamasiorm TeckHughes ... . m I96 loll wants, sea supply bee! . * "..."... ma" up osaliirst-m-ssssaetisutsu mirlhflafiaolli-lzningorltah- lye-bu and an. en run q mmmm“ 3?; ntgedidailm, "luh" p - a "Oystnellourdust! 0mg: . i *' , meantime..." s46 M Ho; » WD-Giili8&Co ma» -'°° "'- "“"”‘°"' i“ ,- 9- ... , ‘Y! 10,, n klmlybaokifpuddufililliiesl . r ~ 1; w.’ Iuokinshlm q- ~-- ~ ' g meow. - sieq wdi.

STANDARD MINING EXCHANGE}

B! DON MOOEMAN.

asked to put up some margin.

000 -

iflllmefili.

for themselves. let's take a‘. look at

means. Like Buying a House If you buy a house costing about $7.000 and you pay $2.000 in cash and slve a mortgage for the balance, you actually own. $2.000 worth of that house. The cash you paidin repi-g. sents your equity in the house, doesn't it?

Margin is the “same thing. Your marsln Wllrrsents your equity in the stockthat the broker has bought for your account. If the market price of the stock appreciates it increases your equity, and also if the price de- prectlates your equity is reduced by the amount of depreciation. There is no economic dlf betwe your purchase oi the house and your dealings with our broker, In both cases it is a i ltlmaie way of doing business.

There is no set rule for the amount of margin that a broker may ask of his client. Some brokers ask one- third. some 30 per cent, some ask ‘lo percent, an odd one asks 50 percent. and a few will carry accounts on a 10 point margin. But it is obvious that the more margin a. client has in his account the less chance he has of being forced to sell in a falling mar- ket. Twenty-flve percent. is about the minimum that any “good" house should accept, and the client is fair- ly well protected at that rate.‘

Why Margins Vary Margin depends chiefly on two things-the kind oi security dealt in and the conservative, or anti-conser- vative, ideas of the broker. Near- ly all brokers have a. fixed rate of

ceptlons requiring a higher rate. These exceptions would be for high- ly speculative issues or issues which the broker cannot easily or readily use as collateral in hisloans, such as some of the curb stocks ‘and practic-

mining brokers) and unlisted secur- ities.

The reason that a broker does not like to take unlisted stocks as mar- gin ls because the market for these stocks is so wide, the bid and offer prices are usually points apart in- stead of eights, that there would be very little protection for the broker in a panicky market. Some times the broker will refuse to carry a list- ed stock on margin-but don't hold this against him. He probably knows the risk involved better than you do. and while his refusal to carry it on margin is partly for his own protec- tion he also does not wish to see his client risk his capital unnecessarily.

Don't Blame Broker l In the event oi the market price

When you bousht that hundred shares of Eastern Gadsetsat 67 5-8 at your broker's last week you were Till-S particular broker's marginal {equin- meuts are 30 per cent. oi the market price, so he asked you for sbout_$2,-

The subieet of margin has often been the cause oi long and bitter Some people think that all martin: m too high, while oni- ers, when called for additional mar- gin, feel that the broker is rather overdoing it. Very few people look on a high margin rate aslprotection

this‘ mflrBlh thing and see what it -‘

oi your resources he becomes con- cerned over this state oi affairs and sends you a margin call with the in- tention oi keeping you fully margin- ed at all times. Should you make no response to. his call he will watch your account closely and ii the mer- ket condition oi the swck does not look healthy to him he may advise you to sell out. This might mean a loss of iive hundred dollars which you might not be willing to take, but by taking o small loss you may real- ize a few days later that he has sav- ed the remainder of your two thousand for you. Failing to take your broker's advice to sell or depo- sit more margin, suppose a further " follows until your margin is nearly cxhausted. The broker has warned you of the’ market condition and has done what he can to protect you. You have now practically no equity in the stock, so the broker proceeds to , tect himself by selling your account.

Proper Protection

when you deposited thirty percent at the time of purchase the broker supplied the other seventy percent. and when your equity is gone the broker will not take any further loss out of his own pocket. He couldn't and stay in business. It may hap- pen after your account has been sold that the market improves. and the Swell you held may ‘more than re- cover lts loss. But remember that you were warned when the loss first" started and if you have nothing left now it is not the fault oi the broker. Every reliable firm doing a margin business makes some sort of an agree- merit with the client. On the pur- chase notices is prinled “That should the broker advance all or part oi the purchase money, he reserves the right to sell the customer's securities at said broker's discretion at any time without notice and at public or private sale when in said broker's opinion the coriditlonoi the account warrants such action," or words to this effect. Of course, it is not presumed that the broker will sell an account just because he feels like it. Cust- om has ruled that the client be first given a fair chance to deposit the re- quired margin, but the broker has the right to decide what constitutes good margin. Cash or certified cheques are always good, and while other iornis of collateral such as stocks or bonds may be very valuable to the owner they may not seem good margin to the broker, who is in the same position as the banker. No bank will accept a. loan unless satis- fied with the security offered. In offering margin to your broker accept his appraisal of it: he knows what it is worth for the purpose and he will take anything that is good. Ii possible offer him more than he wants not for his, but for your own protection, and you will sleep easier at night.

1928 DOMINION INCOME TAX RETURNS

The income tax branch of the De- partment oi National Revenue is in- augurating a new method of supply- ing the necessa y forms to incorpor- ated companies direct from Ottawa. T5 are now being mailed to incorpor- ated companies direct lrom Ottawa. This added service is given with a view to economy in administration. Any incorporated company not re- ceiving forms by February 15th should apply to the assistant inspector of income tax Charlottetown, for forms T2. T4 and T5.

The Mar/tets

MONTREAL, Feb. iL-There were 115 cattle, d3 calves. 403 hogs and 20 lambs for sale on two markets, in- eluding one carload oi good steers held over from Tuesday's market. The supply oi cattle were common quality. One carload oi good steers sold up to $085. common to medium cows $5 to $050, canners and cutters from $3.70 to 84.50 and bologna bulls from $5.50 to 07.00. '

Calves were M“ demand. Calv- es oflered were veals of medium to good quality and sold for $14 to $10. lambs unchanged. $11.50 was the stands? quotation for holdings oi good weights fed and watered. not graded. Bows were sold for $9.75.

NORTH CAI-LETON SCHOOL

Grade 8-1, Annie Iiowther. Grads VII 5r.—i, Dorothy Mae- hrlens; 2, Lloyd Lowther and Ar- thur Wrigbt (equal): 8. Emmett Mc- Innis.

Grade VII fin-I. Norma Picker- llil: ll. Alberta Muttsrt.

Grade IV-i. Ulsnda ‘Lowthsr; l. Teresa Mhttart; I. Norman Mushr- isns. \

Grads flI-l. Wilbur lluttsrt: l.

11m cmuztmwarnww CUMHWAN

m5 srocx MARKET l WHAT IS IT .7 ‘

g THE sesr HUMAN ANTI-FREEZE HOT .

IT STIMUIJATES, GIVES YOU A GLOWING WARMTH, REVIVES YOU, AND GIVES YOU ENERGY AND ZESTA

f’

THE CHANNEL TUNNEL

By E. James

One day in the last 'slxties it oc-' curred to someone or other-(history apparently does not record his name) that o. tunnel between England and France via the bed of the ED811511 Channel would add greatly to the am- neties oi travel. Th0llSBYidS-— thousands uncountable in the course oi centuries have fared valiantly and uncomfortably across that narrow strip of restless water which, as "the Channel" to the Bri- ton and “the Pas de Calais" to the Gaul has, since time has been, sell- arated this little isle "set in a silver sea" from the continent of Europe. Then tliere ensued a controversy of extreme and unnecessary bitterness between the civilians and the soldiers. generally speaking, include the politicians, from that day to this have maintained that the advantages of free inter- course, uninterrupted by mal de mer. would be of incalculabe though direct benefit to trade and to international relations. The soldier-as relllesexited by the‘, War Oifice—has maintained no less. insistently. with all the benefit of bureaucratic _ such a. tunnel be cut the defence of these islands against a. foreign m‘ vading foe, could not be guaranteed.

And so the matter has stood i0!‘ half a century. Just after the Franco-German War‘ of 1870 the scheme began to take de- finite shape; theretofore it had been

The civilians, which

position, that

should

without form and void. stone walls began then to crumble and just about 43 years ago a begin-

Offlcialist '

British engineer!

The Lobster Industry

Continued 1mm page 4

the evidence bearing on the chief centres of violations, and these cen- tres should be rigorously watched. Only one conclusion can be reached —-that if earnest and immediate ef- forts are not taken to protect the in- dustry in these parts if will undoubt- edly in a very few years be no longer s. profitable enterprise. Either ade- quate laws must be enacted, and obeyed by fishermen, canners and dealers, or the industry must very soon inevitably disappear. There is no other alternative. If it is to be saved for the future, the fishermen themselves must be its protectors; its life is entirely in their hands, and they must take the full responsibility for its death."

Cornwall And Vicinity

On Friday nights the manage- ment of the local rink are endeav- oring to hold some special event in the rink which will prove of special interest to the patrons. Last Friday night a hockey match between the Y. M. C. A. team and the Cornwall ‘Community Club tcanr was hold. The large number of people who attended saw a very interesting game oi hock-- ey and enjoyed a special skate af- terwards, the ice being in excellent icondition. On next Friday night. Feb. |8£h a carnival is being hold with special prizes and only those in cos- tume will be allowed on the icc.

Mi". Gordon MacMillan, Cornwall»

made a business trip i0 Summerside,

last week. l much missed in that Society.

In Memoriam

JOHN GILLIS

There passed peacefully away at Cardigan on Saturday, February 3rd. after a short illness from pneumonia. John Glilis. Ali that medical skill and kind nursing could do was done t9 relieve him of his suffering, but. he gradually grew weaker until God relieved him by calling him to his eternal relvald. Ho was held in his" esteem by all who knew him. He was attended regularly by his pastor, Rev. M. J. Rooney who administered to him the last rites of the Roman Catholic Church to which he was fl- devoted member. His funeral was largely attended. The many spiritual bouquets and letters of sympatiai!‘

sorrowing wife to whom ‘sincere syni- ‘ pathy is extended. May his soul foil in peace, Amen-A l

H. R. BAKER. 5

MRS.

-At the ago of seventy-four yearsl there passed peacefully alvay at Ken- sington on January 29th., 1920, Ev-i elyn, beloved wife of Mr. HR. Baker. For some time she had not enjoyed good health. but the end came rather , unexpectedly.

She was a woman who lvas held in high esteem for her ltilirlly deeds and gentle ways. I: was a pleasure to, visit her home. and her passing will. be mourned by a wide circle of friends. For many years she was a member of the lilargatc Methodist, Church, now United, and took a.

and l

tie spirit quietly passed away to the Home above where pain and suffer- ing are unknown. I

Of a loving and cheerful dispo-

sition. she was laved by all her many.

friends and neighbors. who in her ‘illness ministered to her comfort.‘ I The departed wasacorrsistent mom- lber of the Presbyterian Church at ‘Peter's Road and she lived her re- Tligion in her daily life. W _ ' During the period of her illness ‘and suffering she resigned herself fwllfllly to the care of Him, upon l whose promises she relied with strong ifaith. Her bible was her daily ‘guide {along the pathway of life. f Frequently/she prayed for relief ,fl'om pain, and expressed a “siirlong desire to be “I-lome" with Jesus on LWllOIYI her trust was so firmly’ built. It is consoling and helpful-to the bereaved husband to know that his

showed the high esteem in which 119'. dear one is now at rest. and her was held. He leaves to mourn hlsfmany cgmfgrting expressions “You

never brought a tear to myeyie," I can't come to you but you can come to mo." . - These with many other similar exe pressions will be fond memories of their happy union. and strong" hope and joy to the bereaved and lonely husband. ' l‘ Besides the bereaved husband-and

gagod mother, the brothers and sisters

211131

. Flora. lGrcek River. MacDonald) Ailiston, Sarah (de- iceased). John 1L McSwain and Arm

ll/Irs. John A. Macdonald)

iemas. Peter's Road, Neil, Malcolm

and Chester. Greek River. i

The funeral services were conduct- ed by Rev. Mr. Smart of» Murray Harbor, within the Presbyterian church at Peter's R4, where e largo

_ vi-Ims-ymnxm-nera-w-rwunsps-us» m» ss-aul-ep-qa-Lie-pami-et-Qwwi-tezl- Y">!Q‘ ‘h; .~

Mary. (Mrs. Charles _ I’

"w “ “s.” ‘

deep interest in both Church assemblage or mo?“ we” 99115795‘,

Parsonage. She was a "Life Mem-iaied- _ bu... u, the w_ M‘ s_ and Wm be voryl The sermon "was most comforting

‘and impressive as the speakei-"por-

ning was made. commenced to bore beneath the While cliffs of Albion on the Dover side of the Straits while their French con- ireres burrowed into the chalk on the continental side. They hoped, in that day. that they would meet somewhere under the wat- ers of the Channel. Alas! after a few years they were doomed to disap- pointment. Sir Garnet Wclseley. the military demigod oi the time, declared that the scheme was danflelolls "mil a military point of view-and the end came. Today beneath the rails 0f the Southern Railway between Dover and Folkestone there is, on the Kelli-ls“ coast, a. chasm which is all that re- mains of the hopes of some 40 or 50 years ago.

Bandy lluttert; 8. ladle Mutt-art.

Grads Ii-i, tenn farther; a,

Jliilfilmibfi= i- h»: aura"-

But the aeroplane and the submar-

ine have come-and with them, and because oi them, the tunnel is likely to come too, for the British Isles are no longer islands.

To come down, as it were, to brass

tacks, the position now is thisf (mili- tary considerations apart). The dis- tance from London to Paris is roughly as the. rail and sea rolllfis 80. 50m" gag miles, The journey is an abomi- nable one: a. slow land travail 1mm the London terminus to Dover or r-olkestone of. say 70 or B0 miles, a 20 to 25 miles trip of over an hour across s strait whose side seas are calclllhlfill to nauseate the most eqllflblfl 0! ll"- man stomachs. 5 ‘lfllssle lhfollsh the Customs of Calais, ‘and s. land journey thence to Paris. All this oc- cupying on the time-tables about ‘i to 0 hours, and.in fact more often 9 W 10. Should the tunnel be cut, all this unhappiness and dis-ease will be things oi the past. It is proposed that s "broad 8W8! railway designed for the ‘