South Bend News-Times, Volume 39, Number 211, South Bend, St. Joseph County, 30 July 1922 — Page 26

THE SOUTH BEND NEWS-TIMES

SUNDAY. JULY 30. I?22 D) ) iL

Moimey

Roger Babson, advisor to the country's most successful business men, gives seven sound

reasons why the iocal Electric Company offers a wonderful investment opportunity Read what he says:

JjHERE are three rules for successful investing' says Roger

!rä3fsät V. Babson. the country's foremost authority on business

fevAj conditions; "First, study fundamental conditions; second,

put character before collatero1 -hird, have faith in your own community." He lays special emphasis on the third rule by pointing to the methods which have made fortunes for successful men everywhere. "Look over the names of the wealthy men in any community," he advises. ni will find that cht ip:s who have made money are not those who have sent it to distant states or countries but, those who have invested it in their own countries or own home towns." In continuing, Mr.. Babson says, 'At present electric power and light securities are the best local purchase Following are the seven reasons which he gives for this statement. "(1 ) Every corporation depends to a large extent upon management; but of all groups, I know of none where the personal equation is of less importance than in the case of power and light companies. Any man who is honest and desirous of serving the community can operate such a company successfully. He need not be either a financial or an electrical wizard. A power and light company which has a territory to itself and is giving good service usually will grow, regardless of its management. "(2) Electric power and light companies have a relatively small labor charge. The percentage of the gross receipts Which goes to labor is smaller than f: almost a iy other industry and this especially applies to water power electrical developments. "(3) At the present time rates are satisfactory in 90rr of the communities. Many increases have been made during the past few years and where the service is metered, these rates are fully satisfactory. "(4) Unlike a telephone company, the cost per unit decreases as the load and business increase: that is to say, the more business a power and light company does, the cheaper it can manufacture its product. "(5) The electric power and light business is a very steady business and fluctuates less with business conditions than most

other industries. It is true that less power is consumed during a depression than during a period of prosperity; but the change is comparative! little, 'ru .'eased business in lighting absorbs most of the loss in power, and increased consumption by new customers will offset any loss in customers. "(6) Electricity is just beginning to be used in the home for purposes other than lighting. Inventions are being worked out which will greatly increase the use of electric power in connection with cooking, heating, and other uses. "(7) The electric power and light companies are facing a period when their coal and other supplies should be cheaper them they have been in the past few years. Money rates also are on the decline, which is favorable to most companies." Mr. Babson is a profound student of all phases of economics. He is noted thhoughout the world for his keen observations. And his ability to interpret fundamental conditions into terms of practical business has brought him recognition from captains of industry over the entire United States. They seek his advice in the conduct of their businesses and investment of their money. Mr. Babson's advice to buy stock in your local electriclight and power company comes only after a thorough study of conditions, which convinces him that he is fundamentally right. He is so sure of the stand he takes that he sums up his views with these words: "I have given a good deal of advice in these letters during the past twenty years that I have not taken myself; but this is a case where I have taken, and continue to take, my own medicine. I have always been on the lookout for good power company stocks, and shall continue to buy them. Therefore I am not writing as a theorist, but as one who has had twenty years' experience with all classes of local securities. I personally buy these in preference to all others." If Mr. Babson lived in South Bend or vicinity he would undoubtedly buy the 7 cumulative preferred stock of the Indiana & Michigan Electric Co. This is available to customers of the company in $100 shares and on a partial payment plan if desired. INDIANA & MICHIGAN ELECTRIC CO. General Offices: 220 West Colfax Avenue

YOUR BEST INVESTMENT OPPORTUNITY IS AT HOME

I 1

-3