Cuban Investments 



laws. Its stock, which is now selling at about 

 ^40.00 a share, was issued at par, or above, under 

 authority of the Massachusetts Railroad Com- 

 mission; its bonds, now selling in the seventies, 

 have this Commission's stamp of approval. The 

 Commission required that the stock of its rail- 

 road companies be issued at par or above. Some 

 of this Boston & Maine Stock, now selling so 

 low, the Commission instructed should be sold 

 to the public at not less than $165.00 a share. 

 The present day holders of this stock receive 

 small protection on their investments. 



Nor is the cause of this depreciation, the result 

 of looting the treasury of the Boston & Maine. 

 Greater dividends than were actually earned 

 and the tendency to pay these dividends rather 

 than to make necessary improvements on physical 

 property, was the real cause of the Boston & 

 Mame failure. 



On the other hand, there are many railroads 

 today that are fully worthy of the high praise 

 given them. But a few years since, the same 

 praise was bestowed on the Rock Island, the 

 Chicago & Alton, The New Haven, the Cin- 

 cinnati, Hamilton & Dayton, and the Boston 

 & Maine. They were model roads, their se- 

 curities were then of the highest grade, the officials 

 were believed to be "careful, honest and long- 

 headed." History may repeat itself. 



As a result of these conditions illustrated in 

 the railroad field, investors are naturally looking 

 for more permanent forms of securities than 

 those offered by "Industrials" which today may 

 be highly profitable and tomorrow, by reason of 

 changed conditions, be worthless. 



