oe : --_---- _Various Securities in Which We -§dea--of--building--a-great- railroad | 'WHAT CONSTITUTES THE DIF- FERENCE BETWEEN BONDS AND STOCKS. oo Insest--Bonds ahd Shares Pro- duct of Modern Times--Explain- ing Di€erence Between Bonds | 2? and Debentures--How Bond In- terest is Paid. This column is written with the sole aim of supplying reliabie in- formation for the us. and protec- tion--in 'fi.ancial matters--of the readers of this paper. Its impartial and reliable character. may be de- pended upon. The writer of these articles and the publi-her of this Paper have no oth - interests to serve in connection with this mat- ter. ¥ Excepting purchases of real es- tate and loans secured by real es- tate mortgages, most investments are represented by what are gen- erally known as "securities." Thi: term includes bonds, stocks, de- bentures, shares and all manner of documents to show in what you have invested your money. Some- times even, as in the case of Cana- dian bank stocks, you have no- thing to show, your name and number of shares entered in the 'stock ledger' being the only evi- dence of your interest. Two. centuries ago, if a Sir Wil- liam Mackenzie had conceived the like the Canadian Northern, he would have found it impomsibie te tiave raised the money. were at that time few, if any, tok tunes of eighty million dollars (which the road has cost). No one had thought of the idea of divid- ing up into small amounts the in- debtedness of a company desiring to borrow money on. & mortgage. In short, it could not have been built unless the King and Parlia- ment had undertaken it. Then, too, if a miller wished to build a flour mill requiring a large amount of capital, he would have had either to have put up the money himself or taken in some partners. He could nos have taken in many, for it would have been too cumbersome under the old laws. Moreover, the idea of our joint stock companies had not been thought of. y AKING SAFE. FE WVESTIENTS = wih he the shareholder, except that] joint Tock 6 eBeca ns nian shore f is a re- gular market for these shares, which are bought and sold daily at a price determined largely by 'the amount of shares to be sold, and the number of buyers and their eagerness to b The chief point, to be remembered is that shares of stock are not at all like bonds, for, as we pointed out above, bonds are "promises to pay," and must be repaid at a fixed date, ghile shares involve no such promise. There is one other feature, too, in which bonds and ttocks differ. Most bonds carry a fxed interest payable at regular dates. Stocks do not carry any interest. Their return consists in a division of pro- fits. after all obligations of inter- est, costs of operation, etc., are provided. They may carry no "dividend,'"' as the payment is called, or they may carry a large one; but it merely represents a di- vision of surplus profits. Bond in- terest, on the contrary, is a fixed charge, and must be paid, or the mortgage on the company may be forclosed. "INVESTOR."' FROM MERRY OLD ENGLAND NEWS BY MAIL ABOUT JOHN BULL AND WIS PEOPLE. Gcrerences in the Land That Reigus Supremo in tho Come 7 ~~mercial World. In the United ep ve last year 840 cremations took plac > Sea ie aaa; air bath nh England has been opened at Kensal Rise. P There are 98 towns in the British Isles with a population of 50,000 or over. The English Prayer Book is print- in no fewer than 120 foreign languages. Lancashire is the most populous British county, Middlesex second, Yorkshire third. In 18:4, 185 distilleries were at work in the United Kingdom. In 1909-10 the number was 158. During the day on which the traf- fic census was taken 12,505 cyclists entered the city of London. Now-a-days, however, it is quite} different. 'Lawyers have learned: that mortgages can be subdivided | into equal parts each part as se- cure as the whole, and involving mo very great expense. In "his manner a railroad can mortgage its property, just as an ordinary individual can. But the railroad, instead of one mortgage, can is- sue for its huge indebtedness a large number of small mortgages, running from $100 up to $5,000 (or, in fact, any amount) in face value. These small mortgages are called bonds. Most bonds contain on their face a copy of the mortgage of which they form a part, an are personally signed by the nec- essary officer- of the railroad. Most bonds, too, have attached what are called "coupons," which are small certificates of interest, which are eut off and cashed--at ay bank~-- on the date when the interest is due. Bonds, of course, may be is- sued by all kinds of companies. Governments. and -municipalities, too, issue them. The word "Debentures" is in many cases used in reference to bonds. Strictly speaking, how- ever, a debenture is a promissary note not secured by a mortgage. They, like the bonds, are divided jnto small amounts, and are issued | for money borrowed, just as a man} gives his note to a bank when bor- | rowing. Thus we see that bonds are merely mortgages, ana mortgages, as everyone knows, are 'promises | to pay,"? secured by land or some, other valuable, marketable object. Debentures, too, are promises tof pay, but often without any se- curity whatever, other than that; involved in the financial standing; of the issuing company. Shares of stock, however, are quite dif- ferent. They involve no promise on the part of the issuing company to repay the amount they repre- sent. When you purchase shares in a company you become a part- ner. In the old days, when a man started a business, he had to put up all the capital himself, or gather together a few partners to help him out. Now, however, a com- pany requiring a million dollars to operate will issue ten thousand shares, each representing one. ten- thousandth partof the proprietor- ship of the company--that is, a $100 interest. These proprietors (which the shareholders actually are) can- not demand the repayment of the money they have put into the com- pany any. more than an ordinary. partner can demand his, money back from his other. necknezs in a busin He t hist to Ten thousand pounds has been left to Liverpool charities by the jlate Mr. Thomas Davies of Bootle. The crew of the motor launch Mauretania at Aberystwyth captur- ed a huge seafish weighing three ewt. The total number of old age pen- sioners in the United Kingdom at the end of March was :--Men, 533,- 000; women, 547,411, Lord Robert Cecil is convinced that the English woman is not only the most beautiful but:the best of all women in the world. From the training ship Exmouth 3,300 boys of the poorest class have' passed in.o the navy and 3,800 in- to the mercantile marine. In Great Britain the consump- tion of per head has reached 6.38 pounds, almost equalling that of Australia, which has so-long held the first place. During the last ten years the Royal Commission on Tuberculosis has cost the taxpayers $379,160. From the sale of its reports $1,075 has been realized. Greater London has more than doubled its population in the past fifty years, the figures in 1861 be- ing 3,320,720, while now they are 7,252,963. One huge oak tree on the Yester 'estate of Lord Tweedale has sup- plied all the new panelling of the drawing-room used by the Queen at Holyrood Palace, Edinburgh. Mining subsidence at Oldhill, Staffordshire, has caused damage estimated at $30,000. Fifty houses have been so badly damaged that Sri have bee' closed or condemn- Colchester Town Council has de- clined to prohibit Sunday funerals, but has recorded its hope that the 'public will not, out of regard for the cemetery officials, choose Sun- day for interments. On going to clear a_ pillar-box late at night a Nantwich (Cheshire) postman was surprised to find 28 live frogs and two dead ones among the letters. He removed them &uc- cessfully, but the letters were badly smeare ™hree boys named Rob- ert Tomkinson. Frank Sandlands, and Arthur Townsend were each fined 10s. for placing the animals in the box. INDIA'S COTTON IN PERIL. The Boll Weevil May Destroy the Entire Crop. A despatch from Lahore, India, says: The Indian cotton crop is greatly imperiled by the ravages of | the boll weevil, and if efforts > destroy the pest do not prove' sale gagrernee ie cragre tutes asin ce eras Apa ROR aera r 98% _ Uneorporated under the Lawe of the Province of Ontario.) The same to carry with them a bonus of 25 per cent. of Common Stock. DATED August Ist, 1971. : Union Bank of Canada or Metropolitan Bank, Denominations: $100, $500 and $1,000 Bonds issued in coupon form, with privilege of registration of principal TRUSTEE: , Guardian Trust Co., Limited, Toronto. NON-CUMULATIVE PREFERRED STOCK, ISSUED AND FULLY PAID UP ... COMMON STOCK, ISSUED AND FULLY PAID UP...... co. cece eee eee, wee CAWTHRA MULOCK, Toronto, President. a H. C. TOMLIN, Toronto. Director Imperial Bank of Canada. ; f Toronto Bakery. Director Confederation Life Association. W. J. BOYD, Winnipeg, Boyd's Bakery. MARK BREDIN, Toronto, Vice-Pres. and Gen. Manager. President Bredin Bread Co., Limited. GEORGE WESTON, Toronto. ; Model Bakery. ¢,. President George Weston, Limited. Ltd., Wholesale Clothing. E. H. LASCHINGER, Toronto, Secretary; i BANKERS Union Bank of Canada. - - * TRANSFER AGENTS AND REGISTRARS Guardian Trust Co., Limited AUDITORS Price, Waterhouse & Co., Montreal and Toronto; Oscar Hudson & Co., READ OFFICE: Toronto. § PLANTS AT: PURPOSES OF COMPANY 'omlin (Toronto Bakery). of ited, of Toronto; Geo. Weston (The M oi Bakery), of Toronto; H. C. POSITION OF BONDS For full particulars, reference' may be-made to our prospectus, which is accompanied by i letter from Mr. the Vice-President and General Manager of the Company. We draw attention to the following points The present $1,250,000 of 6 per cent. First Mortgage with the economies to be sitectont the earnings sinking Fund Thirty-year Gold Bonds are secured by Deeds to Guardian Trust Company, Limited, Toronto, consti- tuting a first ra eng on all the property, real, personal, or mixed, now owned or hereafter acquired by the Company, as more fully described in sald Trust Deeds. In the Trase Deeds it is specially stipulated that of the $1,000,000 cash being placed m of $500,000 shall be held by the Trus- half times the bond interes one-half s the interest requirements o cash now in the gr assets under the mortgage. terest requirements, operative from August lst, 1911. a Company, with its plants situated e assets of the companies already taken over stand in excess of all Habilities and without any allowance for good-will, trade marks, ete., at $841,428.70. There has also beer. placed in the treasury '$1,006,221.08 of cash, which, besides furnishing funds for the purchasing or construction of additional plants, will pro- *vide ample working capital, ceptionally favorable position to benefit by especially, in distribution, and all the time will b more uniform product under the most sanitary 6. The practical men who have made the ment and direction of the new The earnings of Bog present plants, as per certificate of: is probably one of wears Price, Waterho 'o., after allowing for deprecia- tion, amounted from Age 30th, 1910, to April 80th, 1911, to $107,016.14, to which may be added $36,000, being interest at the rate of 3% per cent. on $1,000,000 cash in the treasury pending its employment on extensions. It is estimated that, SUBSCRIPTIONS Subscriptions should be made on the form accompanying the prospectus, and are payabic as follows:--- 10 3=per cent. on par value on application, and In instalments as follows, in which case interest 88% per cent. on par valuc on --_----= Company Manager, while the services of thé heads of four companies taken over and o have been assured to the Company 10s per cent. OR 1314 per cent. on par value on allotment. 25 per cent. on par value on Ist Sept., yeaa 25 per cent. on par value on Ist Oct., 1911. 25 = per cent. on pur value on Ist Nov., 1911. on par value on application, 98% per cent." 08% per cent. gether with fully paid-up shares of the Common Stock of the Company equivalent at par to 25 per cent. of the par allotte . Application will be made to Hst the bonds and common stock on the Toronto Stock Exchange y of the trust mortgage and legal qpinion of A. M. Stewart,-and certificates of Price, Waterhouse & cia American Appraisal Co., are open to inspection at the offices of the Guardian Trust Company, Limited, Toronto Prospectus and application forms may be obtained from and subscriptions should be forwarded to GUARDIAN TRUST COMPANY. LIMITED, TORONTO Or TO (MEMBERS TORONTO STOCK EXCHANGE) 12 KING STREET EAST. - " BOARD OF "DIRECTORS: sina Sabecription Lit Will Open on Monday, Aug. 14, and Will Close on or Before 3 pim. Monday, Aug. 21 | CAWTHRA MULOCK & CO. OWN AND OFFER AT $1, 250,000 of 6% First Mortgage Sinking Fund Thirty Year Gold Bonds of CANADA BREAD COMPANY, LIMIT DUE August Ist, 1941. Principal and semi-annual interest February Ist and August Ist, payable at any branch of the CAPITAL ISSUED AND FULLY PAID UP 6% FIRST MORTGAGE THIRTY-YEAR SINKING FUND GOLD BONDS. ..... .. .$1,250,000 1,250,000 « 2,500,000 ALFRED JOHNSTON, Toronto, of W. R. Johnston & Co., formerly As- sistant Deputy Postmaster-General of Canada. The Metropolitan Bank. Toronto. Montreal, Toronto, Winnipeg Canada Bread Company, Limited, has acquired as going concerns tho plants and businesses of the Bredin Bread Company, Lim- T Toronto; Stuarts, Limit- n the case of Boyd, the real property ts excluded, but a parcel of vacant Jand in the Mark Bredin, on these plants will shortly amount to $180,000 a year, or nearly two and one- 4. With the extensions that it is proposed to effect forth- with, the Company, by the end of Sts first fiscal year, should be in a position . wna earnings of $260,000 a year, equal to three n the bond issue, a and with al! Pes » aaditibnat plants that will be mESvided with the easury, the earnings should steadily gain to over $630,000 a year, or more than seven times the bond in- in the larger 5, Th cltics of the different provinces of Canada, will be in an ex- the marked economies that will be possible in manufacturing and, more e turning out a conditions. different com- hed panies particularly. successful-will-be identified with the managé- *.. Mr. Mark Bredin, who @ most successful bread manufacturers in Canada, will occupy the position of Vice-President and General of the different an efficient representative of the nt the rate of 6 per cent, will bo charged from date of allotment:-- n final payment by the subscriber for all the bonds allotted, the Guardian Trust Company, Limited, will deliver the bonds, to- value of bonds and Canadian- any Branch UNION BANK OF CANADA and THE METROPOLITAN BANK CAWTHRA MULOCK & COMPANY, TORONTO. -- "DELIGHTFUL POISON." How Wine Happened to Have That' Name Given It In Persia. The making of wine is said to have originated with the Persians, who discovered the process quite by accident: One of their ea rliest kings, Jensheed, who, it is said, was only five or six generations | from Noah, was the aghetcts or done. and Jens ladies was affected with nervous headache; the pain distracted her s0 much that she desired death. Observing the ver¢l with 'Poison' written on it she took it and swal- lowed its contents. The wine, for such it had become overpowered the lady, who fell down into a sound sleep and awoke much refreshed. 'Delighted with this remedy, she repeated the doses so often that the ay oul says i.e narrative, which found in Sir John Malcolm's "History of Persia,' "and desired to preserve some, which were plac- ed in a large vessel and lodged in a@ vault for future use. When the vessel was opened the grapes had' fermen and their juice in this was 50 acid that the King be- int if must be poisonous. some vessels filled with in Persia b rather a Psa of ho Id | it saa Bocas kien upon each. monarch's psison was all dru ; room. It this forced s favorite He soon discovered: and. 'the Andy € to conf:ss what she had A quantity of wine was made -- heed and a drank of the new BEeKraee. whi from the circumstance that led to its siee a ads to this day ieee y the name of Zeh er-0s khoosh, or 'the delightfal poison.' ** his court, - ie, Last quarter there were Gog sights and 100 de