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 But a public utility company, owned by alien shareholders, is exceedingly likely to be unfairly treated by the local authorities in the matter of taxation imposed on it and the price that it is allowed to charge for its services.

5. Invest only in companies which have in the past ten years distributed in dividends, on the average, not more than three-quarters of the amount of profit available (not including the amount brought forward) after meeting all expenses, depreciation, and debenture interest and preference dividend, and have shown no tendency to abandon or reduce their allocations to reserve or other forms of surplus. This rule holds whether you are buying debentures, preferences or ordinary.

6. When investing in debts, whether of Governments, public bodies or companies, prefer those that are not only redeemable at a definite date, but are provided, under the contract of issue, with a sinking fund to provide for their redemption.

7. As a general rule prefer securities which have a real quotation and are freely dealt in. This attribute can easily be tested by a study of the "business done" marks in the Stock Exchange official list, which are given in full in The Times, Morning Post and other papers. Some very interesting and profitable