CHAPTER VII
"Don't"—No Facility for Watching the Investment—The Hard Position of the Landlord—Length of Contract makes him vulnerable by Rising Prices—Injustice inflicted by Government—Right of Foreclosure—The Terms of Mortgages—Their Popularity with Insurance Companies—Their Disadvantages to Private Investors—Violent Fluctuations in Land and House Property Values.
CHAPTER VIII
Sir J. Stamp's Josiad—The Bass Example—A Jaundiced Critic—What is a Balance-sheet meant to Show?—Guesswork Involved—The Opinion of the Directors—Consequent Importance of an Honest and Prudent Board.
CHAPTER IX
What it Shows—Earnings and Expenses—Inevitable and Optional Charges—The Judgment of the Board—Book Values and Real Values—The Auditors' Limitations—The Directors' Record.
CHAPTER X
Back to the Bass Example—The Proportion Placed to Reserve—The Reserve Fund Policy—Capitalizing Reserves—The Test of Profit Division—As a Guide to Investors.
