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World's, largest producer
of fuel oil, and an impor?
tant factor in the produc
| tion of gasoline.
Special report containing de?
tailed statement of properly
holdings and finances, together
luith an anahms of company's
present status, earning*, divi?
dend record, high and ton?
price of shares, book, value.
etc., mailed free on rcauest.
Ask for R-560
S2 Broadway Hampton Hotel.
First 6 Months
High and Low Prices
Complete in our new
July issue of the Invcg
tor's Pocket Manual;
showing unusual intrin?
sic values at which
securities may be pur?
chased today. Ask for
Send for 20-Paymen*
Booklet S-S showing
how to invest your sav?
Scott & Stump
SPXCIAUSTB IN OV?D LOTS
40 Exchange PI., N.Y. Tel. Broad 133!
Philadelphia. Pa. Chamber*burff. Pa.
CoatesvlHe. Pa. Carlisle, Pa.
Contains statistics and Information
In condensed form on Stocks and
Bonds listed on the leading ex?
change" In United States and Canada.
Gives ticker abbreviations
of S:ock Exchanse issues.
Shows hlj?h and low prices for sev?
eral years back on Stock Exchange
and Curb Stocks and Bonds.
Valuable to investors
for ready reference
Sent Gratis. Ask for R. 147.
STOCKS?BONDS - GRAIN
?G*32^! Consolidated stoe*.Exchan$?
53 Broadway I SO R 42*A*Si.
Ready for the grain crop?
linked with Union Pacific?
a great rail artery. Analyzed.
Ash for a " MARKET
R. H. MacMASTERS & *C0.
Member* Consolidated Stock Exch. aflf.y.
82-84 Broad St. New Yo?k
Phon* : Broad 6340 Entire First Floor
Office? in eight cities?Dtr*ct wires.
An Interesting booklet explaining
in ?imple language an Important
subject. Investors and business
men will find it of great value.
Pint free upon -request for booklet J-l.
Wm.H. McKenna & Co.
25 Broadway 25 Weat 43d St.
8?*list Groen J973 Murray Hill SOSO
ree for the asking
Handy rocket Reeord Book
hound in black leather,
to traders and investors.
HARRY A. COCHRANE & CO.
STOCK? and BONDS
67 Exchange Place, New York.
42 Broadway New York
Phone Broad 900
and Foreign Exchange
Babcock, Stratton & Co
16 Exchange Place, New York
Tel. Bowling Green 6175 to St7$
Recently compiled list of
Popular Preferred Stocks
now feady for distribution.
HEYW00D BROOKS & CO.
"Popular Preferred Stoeks"
149 Broadway New Tork
40 Standard Bonds
To Net up to 9%
Send for Current Investment tetter and Mid*
July Bond List
L. A. HUGHES & CO.
IN Broadway. New York. Tel. Rector 2833
Columbia's Oil Developments
dl-scussed in current issue of
From on request
27 Pine Street, New York
N. Y. University Research
? Ahora tory to Cost $100,000
Contracts (or the erection of a re?
search laboratory for the New York
University, at 339 East Twenty-fifth
Street, from plans by William S. Greg?
ory, has been awarded John Lowry jr.,
JJl Madison Avenue, according to
Brown's Lettora. The building will be
?even stories, 67x25, and will cost about
Emery F. Wolgaraot, of Manhattan,
bought an apartment At 234 Twenty
Question* of general interest to tn
vtatar? will be: antwnred in this col?
umn, in which cate only initiait will
bt uted. Otheia will he answered by
mail. Addre&? all inquine?, t'ncfot
tnp a ?tamped, addr?t?ed envelop?, to
Financial Editor, The Tribun?, ifi
Na?sau Stritt, Netv York City.
Salesman to Put $15,000 Into Stocks
?w^*1""!,""."V" * trnvelJnjr salesman and
shortly will have $ is, 000. which 1 Intend
to invest in listed stocks. My idea is M
procuro those stocks which ?re now vteld
f. w,ho "'?heat percentage of income
i,?"1' lrK,u*"tlal or railroad), consistent
with reasonable safety of principal, or in
what I suppose you would term a business
man's Investment. 1 Intend to buv only
ten shares of any one issue. If you have
* >??t to suggeat will greatly appreciate
it If you will supply me with same. Do
you consider .July ns flood a? any other
time to make such Investment? Or do
you thin? I might fret more for my money
by waiting until August 7--A. K. H.
Answer?We cannot undertake to
predict the course of the stock market,
but we give herewith a list of stocks
which we consider good business men's
speculative investments: American Car
and Foundry common, American Bank
. Note, ccommon, Kansas City Southern
preferred, Southern Railway preferred,
American Telephone and ' Telegraph,
Pacific Gas and Electric stock. Colum?
bia Gas and Electric, New York Dock
preferred. Diversify your holdings anu
do not be surprised if s'orne or all of
I them go lower in price. This is a bear
? market, and we are one of those ob
| servers who do not pretend to be able
j to find the bottom and call the turn.
looks Askance at Wilson Bonds
Question?Will you please give me your
j advice as to Wilson Company bonde, due
1928? They have been going down for
some time and 1 thought it might be best
to invest in something you might suggest
! it you think "Wilson Company is not all
I right. 1 paid about 95 fur the bond.?
? W. K. R.
Answer?The packing business ha3
been hard hit by the aiter-war condi?
tions, and though the larger packers
are able to spread the speculative risk
over a great number of transaction?,
oven the stronger companies are af?
fected by present conditions, and this
fact is reflected in the market price of
; their securities. If you are inclined to
i worry about your securities, you might
j well shift into one of the strong public
I utilities, such as the Puget Sound
! Power and Light general and refunding
7V4s, due 1941, recently quoted at 97!,i
Western Union Bonds
Question?Please art vise m? as to bonds
of the Western t'mon Company?those
maturing within fifteen years from now.
Are they as safe an investment as money
In the savings bank? I do not know a
whole lot about bonds, but want to Invest
31,000 to get 8 per cent, instead of the 4
per cent 1 am now getting from, the bank.
?Miss G. T.
Answer?The investment of $1,000 in
Western Union bonds is not as safe as
money in a savings bank, because if for
j no other reason the investment in the
| savings bank is more diversified; that
is, the savings bank uses your money to
j invest in many different kinds of se?
curities and mortgages. , On the other
j hand, at present prices, we think that
you can get a high degree of safety and
get over 7 per cent. For instance,
Northwestern Bell Telephone 7 per cent
bonds due 1941, are selling at just be?
low, par, and they are secured by a first
mortgage on all of the property of the
company in the states of Iowa, Minne?
sota, South Dakota and Nebraska. Jf
you demand 8 per cent we recommend
the Kingdom of Norway 8s, selling at
just above par, and due 1940.
His List Not a Safe One
Question?Will you kindly Inform me as
? to the safety of the following for invesi
i inent: Forty shares Cities Service pre
i ferred, five shares- Cities Service common,
ten shares White Motor, one share Stand?
ard Gas and Electric preferred, 3300 New
Orleans, Texas & Mexico income 5s??B.
, Ansyver?The Cities Service Company
has just paid its dividends in scrip; the
motor car industry is being hard hit by
pest-war depression and the market is
flooded with second-hand cars bought
during the period of war inflation and
war profits. Standard Gas and Electric
preferred is a speculative business
man's investment, as is also New Or?
leans, Texas & Mexico non-cumulative
5 per cent income bond. In selecting
such a.list as this you were not look?
ing for safety; you were looking for
Considers Exchanging Bonds
Question?Having been approached by a !
local bond house to exchange eertu-in of |
my holdings for other?. I ask your co-nfir- |
rpatlon of the advice received. I am told i
that there is an advantage In trading then?
I bonds on account of what is called the
I relative market position of the respective !
Issues, although the yield and security may !
be equal. The investment bankers offer ?
I me Bush Terminal 5a, 1900, plus 5 points
diff?rence, for Union Electric l.lgh and !
I Powerof St. l,ouis Es, 1932; Bush Terminal j
I plus 10 points difference for Buffalo Rail- i
i way 6s, 1931: Niagara, Lock port fc On-|
tarto Sb plus 2 points difference for Niagara
1 Falls Power 5s. 1932; Erie prior lien 4s. ;
: 1990, for Illinois Central Railway 3s, 1?51 ? ^
It live in/Buffalo.?W. W. C.
We would not suggest the exchange
! of Illinois Central 3s for Erie prior
? lien 4s. The other exchanges appear
| to be. all right, although "market posi
i tion of bonds" is a question which
! may be of interest to the active, bond
i traders, but for a man who is making
a long term investment, and whose
thought and desire should be to buy
income rather than to buy with the
hope of increase in market price, it
is not of importance, in our opinion.
In this matter the local bond house may
have some argument that is not covered
in your letter.
Likes Government Bonds
Question?I have about 32,000 to invest
and. having read your advloe in The
Tribune, 1 have decided to buy government
bonds. Will you kindly tell me which of
the laautea is the best, for me? Will you
also please tell me why the Equitable Life
Assurance Society offered to exchange
tho first Liberty loan bonds, bearing 3V4
per cent, for the next issue, that bears a
higher rale, 1 think, 4. per cent??Miss
M. A. Q.
Answer- -The Liberty 3V?s provide in
the indenture securing the bond that
they are convertible into later issues
of higher interest rate. The Equita?
ble in offering to convert them merely
acts as agent for the government. Of
the foreign government bonds, we think
for your purposes the United Kingdom
of Great Britain and Ireland BVfcs,
due 1937, recently selling at 85Vs,
yielding slightly over 7 per cent, if held
to maturity, would be the best invest?
ment that you could make in foreign
bonds, although we think that Denmark,
Norway, Switzerland, etc., bonds are
selling lower than they would if Amer?
ican investors were accustomed to for?
eign investments. Of the Liberties the
second or fourth 4Vis would probably
Holds Five I. R. T. Bonds
Question?May 1 ask the favor of your
advice regarding the following securities?
Five ?1,000 Interborough Rapid Transit
bond?, bought at 99; twenty shares
ITnited Slate? Steel common, bought at 94;
thirty ?hares Missouri Pacific common,
bought at 3'8. Tou have repeatedly ad?
vised people who already have I. U. T.
to hold it; Are you still of the same opin?
ion? 1 have believed the traction trouble
would grow better rather than worse. Am
in moderate but comfortable circum?
stance*. If you advise selling, how can
I make the best of a bad bargain? -J. G. S.
Answer?We. are still of the same
opinion in regard ' to holding Inter
borough Rapid Transit bonds. We
would not advise you to hold Missouri
Pacific common, and think it would be
safer to hold United States Steel pre?
ferred rather than the common, though
we see no immediate prospect o? ai
How? to Handle $500,000 Surplus
QUESTION.?/ am interested in a company that has a capital stock
I of $10,000, incorporated in New York. t This company has a surplus of
$500,000 which, at the present time, is tied up in stock, which slock has
! depreciated in value to the amount of possibly SO per cent. v
The surplus accumulated iras intended to extend the, business, but
I conditions are such, at the present time, that toe desire to ascertain, in
' view of the present condition of affairs, and also legislation that might be
j enacted, whether it would be well for us to incorporate the entire surplus
tn a larger capitalization, and to pay out such surplus in stock dividend*,
o rvhether to rema?n o-s we are at the present time, and continue this
surplus, under existing conditions.
Kindly bear in-wind that the surplus of this confpany, which, has been
accumulating since its incorporation in 1893, in, at present, required for
The following is our balance sheet as of January 1, 1921 :
Ciuih?Notes, acrentnuices. Recount? re- v , ??<#__?__ and account?
colrabl? .$133.600.02 "N0'a*' ??WaaeBi "0 account?
?otwiisient bond?? payaMs.?15?.5fl9 ??
Swoiul Liberty loan (non- Accrued wages . 3,?39 30
Tt-rtwl Into Third).J50.000.00 .,.?.?-.,
Third Liberty loan. 7,000.00- -?1S0.SO8.8I
Fourth Llbert.v loan. 30.000.00 - ,
Philippine corUnesto of in- Mortgage, rayab.o . ??,000.01
iloliiedncsR . 8T.525.00 Reserve for depredation on fixed aaset?.. 17,849.*i
.. ~T. ~ 174,52.1.00 f,pu?i and surplus capital
Inventorie? (merchandise, ruppue?. In
*urance. ? etc. ) . 3S6.00l.73 "'-<**''. HO,000.00
Land and buildings.188,541.48 Surplu? .,. 000,819 ?5
MxHilnerv, auto truck. 34,851.0t *,?.,??
Office equipment . i.750.25 ?lo.sw.e
/ trust that this is in sufficient detail to permit of your furnishing
me u?th the desired information.?//. J. S,
ANSWER?Many large corporations have during the last, two or thre<
years capitalized their surpluses and declared stock dividends, increasing th
holdings of their stockholders, but at the same time keeping surplus in th
business. It was considered advantageous for several reasons. For one thing
it was e device for quieting the demands of the stockholders, who were ask
ing for a larger share of the war profits. Then again to cut a melon and dis
tribute the surplus in cash would mean paying a large, income tax to th
Federal government, whereas the stock dividend was held by the Suprem
Court of the United States to be non-taxable as income.
Your problem is interesting. There seems to be only one reason why yo
should capitalize your surplus and declare a stock dividend, and that is in th
event that you intend to borrow money from your bankers. A bank whicl
considered making a loan to the company would prefer to have the surplu
capitalized, because that would make it impossible for the directors to dis
tribute the surplus to the stockholders and so reduce the security behind th
The balance sheet presented shows a strong position. It would look bettei
however, if your government bonds on the asset side were sold and the pre
ceeds used to liquidate the notes, acceptances and accounts payable on th
liabilities side. A good deal depends, however, on how much of the first itet
on vour asset side is cash.
Woman Likes the Idea of 50 Per Cent
Question?Kindly advise pie if you think
good of the \>w York, New Haven A Hart?
ford debenture 4s, selling on the curb. It
is standing so low now and they have to
be redeemed next year, it seems to me I
could make nearly 50 per cent on it. Po
you think there is any doubt about the
redeeming next year?- .MISS I. D. G.
Answer?It would be nice if we could
all buy New Haven debentures at pres?
ent levels and make about 50 per cent
on our money by All Fool's Day next,
wouldn't it? But in order to buy one
of the debentures we mu?t first find
some one willing to sell it, and doubt?
less the seller would have some reason
which seemed sufficient to him Tor fore?
going about 45 per cent of his princi?
pal, especially as it would be quit.'!
likely that he had paid higher prices
for the security. You have hit upon
the answer yourself. It is a doub'j
sbout the redemption of the securities
when due, April 1, 1922.
Widow Likes Grand Trunk Bonds
Question?I have $3,000 for Investment.
Until my husband's death he relieved me
of financial responsibility. Now I need the
best advice. A friend told me vou can
be depended upon to give It. ! wAl thank
you greatly if you will write m* of a
reliable investment that will bring me a
good income. What Is your opinion of the
"United States Rubber Company bonds?
Can you suggest a better? Whut about
mortgage? on the Grand Trunk Railroad.
(Tuaranlped by the Canadian government?
?Mrs. P. W. H.
Answer.?It would be hard to find
anything more suitable for your pur?
poses, in our opinion, than the Grand
Trunk 7 per cent debenture, bonds,
guaranteed principal and interest by
the Canadian government. If you in?
vest $2,000 in these, and $1,000 in the
new Chicago Union Station 6V? per
cent bonds, guaranteed principal and
interest by the Pittsburgh, Cincinnati,
Chicago ? St. Louis, the Pennsylvania
Company, the Chicago, Milwaukee &
St. Paul, and the Chicago, Burlington
& Quincy, we think that you would
have a high-grade, safe investment.
The Chicago Union Station bond is
due 1963. We think that the United
States Rubber Company bonds are a
Connecticut Light and Power 7s
Question?Your opinion on the $6,500,0<?O
Issue'of the Connecticut Light and Power
Company first and ' refunding mortgage 7
per cent sinking fund cold bonds, Series
A. of May 1. 1921, will be greatly appreci?
ated. This Issue in due May I, 1951. My
mother bought a $1,000 bond of this issue
for the sole purpose of it hein? of use to
her In her old age. It was highly recom?
mended to her for its safety. .Reading
your candid answers to questions sent to
you through The Tribune, we will feel
'easier if you recommend holding this bond
or buying some that you have suggested.
I.ee, Hlgginson _ Co. handled this issue.?
W. .!. F.
Answer?We think that the Con?
necticut Light and Power first and re?
funding 7s, due 1951, are a good bond
for your mother to hold for her old
age. They are secured by a first moit
gage on a new hydro-electric power
plant, several sub-stations and sixty
one miles of high tension transmission
lines. The company supplies light and
puwer to the industrial heart of Con?
necticut, and so far as can be seen now
its prcspects for profitable and in- ;
creasing business are excellent.
Would Sell to Increase Yield
Question ?I "nave a $1.000 Southern Pa?
cific, refunding 4 per cent. 1955. Would
like to sell this and. use proceeds to bay a i
bond that will pay 6 per cent. What
WQUld you suggest ??G. C. G.
Answer - Southern Pacific Railroad,
refunding 4s, due 1905, were recently1
selling at 73%, which yields 5.43 per;
cent current income, and 5.78 per j
cent if held to maturity. A 6 per cent ;
bond running for thirty-four years and
sailing at around 73 would yield well i
over 8 per cent. We do not know, of i
any bonds that we would recommend
that meet these requirements. You
could fret a Kingdom of Sweden 6 per
cent bond, due 1939, selling recently
around 83, that would yield 7.70 per
cent if held to maturity and 7.19 per
cent income. You could get a Cleve?
land. Cincinnati, Chicago * St. Louis
4V2 debenture bond, due 1931, sclline
recently at about 73, which would yield
you 6.16 per cent.
Widow Proves a Good Pupil
Question?I am ? widow, and have In?
vested almost every cent 1 can sret hold
of to provide myself with an income as
lar?re as possible. T now have twenty
shares Cnited Kingdom, 1937; twenty
?hare'? Swiss government S per cent,
iwentv ?hares Canadian Northern 7 per
cent 1940; ten shares Belgium s per cent,
five 'shares American Smelting 5 per cent.
1947' five shares Northern Pacific. rU *
shares Chicago I'nlori Station (?'-is. $1.100
Liberty bonds. 1 have made this li?t
through study of jour investment column,
and have had three things in mind?
safely good vield and long term. I hope
I have been a good pupil. Do you think it
?s safe to leave this list as It is "r would
you suggest any change??E. M. Y. G.
Answer?You do not say which one j
of the Northern Pacific bonds you hold. !
You probably mean the Northern Pa?
cific-Great Northern joint 6^s. Your
list is good and we think that you have
made a wise investment with a high
degree of safety at a very fair yield.
We would not disturb it. You call the
securities "shares," but from the due
date we assume you mean bonds.
Coupon Rate Used in Computing Yield
Question?As stated on The Tribune's
financial paga, tho approximate yield of a
i boml may be obtained by adding to th?
j current Interest (which equals current
i price divided by coupon rate;, tho differ
I ence between par vulue and current price
i divided by the number of years until the
! security fall? due. For short-term securi
| ties tnln approximation is olose, but. as
i you have stated, for long-term bonds it Is
leuH exact, due to the, fact that one i_ not
j receiving interest on the difference be?
tween present and par value, which dlffer
: ence a person cannot expect, to receive
I until the bond matures. Now, the exact
method of obtaining the yield of a. bond,
! if one does not have accesa to yield tables,
; consists In adding to the current interest
the annuity required to accumulate the
; difference between present anu par value
s by the time, that the bond falls due. An
! nulty may be computed or obtained from
tables My question now follow?: What
rate of interest Is it the practice to use in
! figuring this annuitv (either for comput
1 ing yield tables or for computing the yield
1 of ?ny one particular bond), the bond's
! coupon rate, current Interest rate, approxi
| mate yield or some arbitrary percentage ?
; For instance, take the Kansas City Souih
I ern first 3 per cent bonds, due 1950, .now
? selling at about 65. The current Interest
j rats lor this bond Is 6.45 per cant. If we
I add to thla per cent the annuity required
I to earn $4i< in twenty-nine years, based on
I the coupon rate, 3 per cent, we have 6.45
? plus 0.29. or ?.44 yield. If we use the cur?
rent interest rate in figuring the annuity,
we have 5.45 plus 0.65. equals ?.10 yield.
If we use an arbitrary figure, say 6 per
cent, we have 6.45 plus 0.58, equals b\0H
per cent yield. What is your opinion of
the new Alabama Power Company bonds
(first mortgage lien and refunding)? Why
do they yield such a. high intereat rate?
Is one suitable for a married man, twen?
ty-seven year? of ago, who has about
$1.000 a year to invest, and who has $n,
000 Liberty honda, ?1,000 Urooklvn Edison
7 per cent. 1S40; 1600 Swift _ Co. 7 per
cent, 1925; $1,000 American Telephone and
Telegraph tl per cent convertible 1925
bunds??T. M. C.
Answer?It is customary to use the
; rate of interest of the bond in com
; puting the annuity rate, or in com?
puting compound interest. Your point
i about the difference between the bond
j coupon rate and the current rat? of
I interest is interesting and important
' at the present time, where, as in the
j case of the Kansas City Southern, the.
? difference is so great. The Alabama
1 Power first 5s, due 1946, are a good in?
I vestment, in our opinion, and suitable
I for your purposes; if you want a more
i conservative investment, however, we
! would suggest either Montana Power
1 5s, due 194'1, recently selling at around
I 85, or Puget Sound rower and Light re?
funding 7,,?s,-due 1941. The bonds are
? secured by a mortgage on nearly all of
the company's property, and by the
I pledge of a like amount of City of
. Seattle Municipal Street Railway bonds.
; We think your present investment is a
i good one.
Would Borrow to Buy Bond?
Question I am considering the invest
' ment of $5.000 in various high grade
? bonds and preferred stocks. While In vest
i ment at present low levels is my main
: object. I should like negotiable securities.
' What do you suggest? I might aiid that
i I contemplate borrowing the $5,0(10 from
! my bank In order to take advantage of
: present prices and allow the securities to
j be helil as collateral. This obviate? a
? timo payment plan with some brokerage
j houses. Do you consider this plan ad- |
vlsablu under present conditions??A. E, ft. |
Answer?Even with the most easily)
negotiable and marketable bonds a1
br.nk would require a margin of from j
10 to 20 per cent above the market!
price of the bonds.' If "you put up
umple margin and are in a position to
put up additional margin in case of
necessity your plan to buy bonds in
the present market is a good one, it
seems to us. You must remember,!
however, that there are fluctuations in
the bond market just as there are in!
the stock market, and if the bond
market should break badly your bank
would presumably call for additional
security. That is, you would have to
put up more bonds or put up additional
cash. Failure to do this would involve
the sale of the bonds at the market
prices, which might be much lower
than what you paid for the bonds. We
would suggest Kingdom of Switzerland
6 per cent bonds due ?939, recently
selling at 83H, yielding 7.70 per cent |
it held until maturity; New York Cen?
tral debenture 6 per cent bonds due
1935, recently selling at 8714, yielding
7.49 per cent i: held until maturity;
New York Dock first 4s due 1941, re?
cently selling at 68, and Northern
States Power first and refunding 6s
due 1941, recently seliins at 78, yield?
ing 7.07 per cent if held until maturity.
Oil Stocks Not Always What They Seem
Question?I would very much appreciate |
it if you could advise me regarding the j
Glen Oil Producing Company. I send >ou|
the last circulars I received from this ;
company. I ha.Ve 100 abares of this stock
and do uot know if 1 should boy any more.
? M. 1-*?.
Answer We do not advise you to
put any more money into Glen Oil
Producing stock. The company says it
is paying dividends of r? per cent a j
year in cash, which would be 1,2 cents I
a share. That does not, in our opin
ion, justify an asking price of 25 per
cent above par, which is 20 cents for
She stock. Do not get the idea that
feeding out stock dividends, "bonuses"
and "special profits" in the form of
stock adds to your income. There is
no market for tho share? that we
Not Worried About Railway fchares
Question?X am interested at present In
building up my bond holdings, but. am do?
ing it by savings and relnventments of in?
terest and dividends rather than by selling
the bonds 1 already have or the storks. A
brokerage firm suggests that I ::houId sell
tome of the ben?!?? of low rate of interest
to buy some of the new French or Swiss
I bonds or some of the good bonds recently
?Issued here ai 7 per cent. t do not see
where would he the gain, in view of the
difference In pri?e. In selling and buying;
but I intend to keep on investing savings
I ?nd Interest In sue.h good bonds si long a*
I hey tire to be had anywhere near par.
My present bonds are: Liberty (three
Issue?), $700; United Kingdom SW?. $5"n
(1987); United Kingdom fitts, 1929. ?300,
French 8?. $2f>0; ?500 American Smelting
end Refining 5s, bought at 90; $500 Vlr
fintsn Railway first 5?, bought at 90.
tock?: Throe Bethlehem Steel 8 per cent
preferred, bought at 104; two Allied
Chemical and Dye (General Chemical) pre
ferre d. bought at 100; four American
Telephone and Telegraph, bought at from
9* to 104. Railways; Three Atchlson pre?
ferred, bought et about 100; three Chicago
* North Western, bought at about 99;
five Great Northern preferred, averaging
?5; four Pennsylvania, at about 17. I am
not worried about the railway shares. Our
; records (t am in the Public Library at
Forty-second Street) show that underlying
economic conditions the world over are
steadily Improving, and business here will
: Improve goon, if only as part of the gen
! ?ral movement upward. Will vou kindly
I let me know what you think of iny list-"
j w?er* It might be strengthened under
j present conditions and whether there
would be any real advantage In selling
! and buying? I have appreciated your ar
'O "V?u.onui Xj?.\ aunqi-ij, diu, ut B9[0J)
Answer?Your Atchison preferred is
good, we think, and Chicago & North?
western is good in the long run, al?
though the Northwestern earnings for
the first five months of 1?21 have not
been satisfactory and a continuation
of unfavorable conditions over an ex?
tended period of time mio-ht necessitate
.deferring the dividends. . Great North?
ern, which is preferred in name only,
j there being no common, and Pennsyl?
vania Railroad arc both stocks the value
i of which depends on the outcome of
I the railroad situation. Con?eess has
j postponed further hearings until Au
I gust and it is now up to the railroa?
?managers to try to make tha best or"
the wage reduction which the Labor
Board allowed them. Presumably, you
are on a salary and can afford to face
the possibility of a loss of income on
your investments for a certain length
of time. Your list would be strength?
ened, in our opinion, by the sale of the
Great Northern and Pennsylvania and ;
the investment of the proceeds in King
? dorn of Denmark 8s, due 1945, recently |
! selling just under oar, and United '.
| Kingdom of Great B'ritain 5%s, due !
! 1937, recently selling at 85Vx. We|
I would like to know how valid your ?
theory of foreign and domestic busi- ;
| ness conditions is.
Business Man Has Good List ;
Question?Will you kindly eriticixe the i
'following, which I. own: $3.000 Liberty.
$2,000 Victory, $1.000 Northwestern Bell. !
31,000 WesMriRhouse Electric, $1,000 Galena I
Signal Oil, $500 Belgian 7'4 per cent. $5<m ;
American Light. and Traction, $1.000 \
United Kingdom. 1937: $1.000 Atchison. I
Topek? ??' Santa Fe, 1995; $1.000 St. Louis I
* San Francisco 4s. and the following !
which I wish to buy: United States com- |
mon, 10 at 75. $750; Stondard Oil of New
Jersey, 10 at 10?, $1,060; Great Northern!
$1.000. $965; Danish 8 per cent, $970; Bal- !
timor? <? Ohio 4s. $S60; Chicago Union j
Station 6-% per cent, $1.0in. Total, $5,<05.
I do not depend on this income at present, .
but business Is on the blink and I mi?rht
need this income to recoup losses. Can
you make up r better list? Safety of
principal 1? essential, however. If a higher ,
yield could be obtained combined with |
safety I would be glad to change any or ;
?11 of the mentioned bonds at your ,sug
gestion. Would you advise me to buy low- I
priced rail first mortgage bonds? Kindly |
state which. -H. G.
Answer?We think that the list of
bonds you now hold is excellent and
we not suggest a change. We presume
j that you mean United States Steel
I common; a more conservative invest?
ment and safer would be in United
States Steel preferred or American Car
and Foundry preferred. . We would not
advise the purchase of the Baltimore &. ?
Ohio 4 per cent bonds, but think that
the first mortgage lower coupon rate
bonds of the stronger railroad com?
panies are a good investment at pres?
ent prices. For instance, the Virginian
Railway first 5s, due 1962, recently sel-.
ling at 81, at which price they yield ;
6.29 per cent if held to maturity, are j
a good investment.
Security of Hershey Notes
I Question?I note that you advise one of
I your readers to sell their Hershey's Choco- |
? ia'.e Corporation ten-year note and rein- '
1 vest In something else. Will you kindly
I advise me in particular as to what ?-ou
moan with reference to my investment in :
the Hershey notes? What do you think .
of Sinclair Oil Company'? notes? Also i
Unltod Drug Company 8 per cent bond'.'!
Give me a short list of bonds or notes
.maturing In from five to fifteen. years that ;
' will yield from 7 per cent up that you
would unqualifiedly recommend. Please
advise in particular with reference to the
Hershev notes, for If there is any question
as to their safety 1 would want to know it. ;
I Answer?The candy business is spec-?
; ulative in its nature and the bottom j
< has nearlv dropped out of the sugar
market, the ten-year iVt per cent
! notes of the Hershey Chocolate Cor
1 poration are secured by a collateral
j lien on the real estate, plant and lixod
assets of the corporation. If you wish
to be thoroughly conaervative we would
! suggest that you sell these notes and
put the proceeds into one of the secu
rities recommended below. Sinclair |
Consolidated Oil 7?-i per cent notes,
due 1925, are. in our opinion, a good
business man's investment, although
the oil business is not prosperous at
present and their purchase involves
some speculation. Standard Oil of
California 7 per cent, debentures, due
1931; Weatinghouse Electric and Manu?
facturing Company 7 per cent notes, due '?
1931; E. I. du Pont de ?mours 7 lis,
due 1931. and Chicago & Northwestern
fifteen-year 6% per cent secured bonds,
due 1936, meet your requirements, we
Denver Refunding as
Question?WH! you be; good enough to
advise me whether, in your opinion, ther'
is any probability of a discontinuance of
interest payments on Denver & Rio Grande
refunding S per cent bonds? I have >.
number of th?se bonds, purchased :?.
vear at 544. ?inc- which lime they have I
steadilv -and recent'::.' rapidly?declined. |
until now they are quoted at below 41, and
[ am therefore becoming anxious.?R. T.'tV.
Answer?There is a protective com
mittee, of which John Henry Ham- ;
mend, of Brown Bros. & Co., bankers, j
55 Wall Street, is chairman, for the j
fiist and refunding 5s? This com?
mittee is working with representatives ;
of the Western Pacific for a reorgan- ?
ization of the Denver & Rio Grande
Wettern Pacific system. Until the !
legal difficulties are cleared up the !
exact standing of the first and refund- ?
inc ?R cannot be determined. We sag- |
gest that you write to the protective j
Doubtful About Ceba Cane Sogar Bonds j
Question ? I hold a $100 Cuba Cane Sugar |
ten-year 7 per cent convertible bond, due
1939, end am somewhat in doubt a? to the j
advisability of holding it. "Do you think I
that the condition of this company war ;
rant? ratina: the bond as a business man's j
Investment? If not. can you suggest some i
"bond bearing posalbly a lower rate of in- I
terest which is selling around 75 ana can !
he purchased in ?ion lot???A. E. B.
Answer?We would rate Cuba Cane ;
Sugar 10-year 7 per cent convertible
bonds, due 1930, as a business man's
investment of a rather speculative ;
character. A much safer bond would j
be the Colorado &. Southern Railway !
refunding 4Hs, due 1934, selling re
ccntly around 73.
". - "' ' ."' ' " i
A fall column of invest?
ment questions and answers
is published in The Tribun? j
every weekday. \
" niniii?,,? i mu ni????_?- il i i. ???_____?
How Money Grows!
Invested in Prudence-Bonds at the
rate of $600 every six months?$100
per month?and the interest rein?
vested as it accumulates in $100 pieces
Result at the end of 12 years?over
1 yr. 6 mo.
2 yr. 6 mo.
3 yr. 6 mo.
4 yr. 6 mo.
5 yr. 6 mo.
6 yr. 6 mo.
7 yr. 6 mo.
8 yr. 6 mo.
9 yr. 6 mo.
10 yr. 6 mo.
11 yr. 6 mo.
End of Period $20,655.48
Larger or smaller amounts monthly, grow in proportion. Whether
you have $100 a month or $100 a year buy Prudence-Bonds.
Denominations : $100, $500, $1000 ? Also for $2.00 a week.
Send for Booklet G-185
Realty Associates Investment Corporation
Organized under the Banking Laws of the State of New York
Capital and Sitrplu?
31 Nassau St., New York
162 Remsen St., Brooklyn
Guaranty Tru?f Company of Naw> York Trustee of Tht? Issue
41 YEARS' INVESTMENT EXPERIENCE SAFEGUARDS OUR CLIENTS' INTERESTS
New York City Varick Street
Postal Station Bldg.
First Mortgage Real Estate Gold Bonds
Property 0-wned by EASTERN BUILDING CORPORATION, Inc.
Norm.il FeJcnl Inconi; Tax up to 2% paid by Borrowers
Secured by First Mortgage on the land and building at 34-50 Varick Street, New York City.
Title guaranteed and insured by The Tide Guarantee and Trust Company of New York
City. Building is under contract for a twenty-year lease to the.
UNITED STATES GOVERNMENT
at an aggregate rental of $6,100,000.
EIGHT PER CENT
First Mortgage Real Estate Gold Bonds
New York City?-Broadway itnd 83rd Street Newark, N. J.? Broad and New Streets
, Prompt Payment of Principal and Interest
Normal Federa! Income Tax up to 4% paid by Borrowers
Titles Guaranteed and Insured by
Lawyers Title and Trust Company of New York Citv
Columbia Trust Company of New York City
Trustee or the above issues
BONJD & MORTGAGE
562 Fifth Avenue, New York City Telephone Bryant 9600
Chicago, III. Columbu?, Ohio Da\rnpnrt. low? Grand Rapid*, Mich. Rockford, HI.
Our ability to offer the
investing public absolute
safctv together wild a rea?
sonable and just interest
return ii due lotclv lo our
policy of sharing ?he bene?
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with our cu'lcimrr?.
Kindly check in space below and booklet designated will be mailed promptly without obligation
17 Nations in Trade Parley
The feature of the first conference
of the international Chamber of Com?
merce, which met in Central llall.
Westminster, for five days, was o ?
speech by George E. Robert?, vice
president of the National City Bank,
clearly setting forth America's posi?
tion in the financial phaaea of the
world situation and emphasising the
limitations on her ability to bring aid.
Five hundred representative busi?
ness men from seventeen nations took
part in the conference whose sessions
ended at the beginning of the month,
America having 189 delegates. Great
Britain 122, France 36, Italy 33, Bel?
gium 22, The Netherlands 9, Sweden 7,
Denmark 4. Poland 2, Luxembourg and
the Czecho-Slovak Republic one each,
while other European countries, in?
cluding Austria and Bulgaria, were
represented by one or more delegate*.
The conference, which had to be car?
ried on with the aid of interpreters,
was in progress simultaneously in five
group meetings, dealing/ with finance,
production, distribution transportation
and devasated regions!
F?Dlying to the suggestions from
various European delegates that tie
United States miffht ?id in the present
situation by accepting Gerr.oan in?
demnity bonds in payment for Allied
debts, Mr. Roberts explained that
America would do all she could to ad?
vance capital and aid in restoring
trade to ita normal channels. He said,
however, that the purchase of foreign
I securities in the United States was
[comparatively a new departure, and
?tiat it was regarded as unlikely that
German bonds would be received by
Am?ricain investors. On the other
hand, he did not believe they would
pursue a harsh or peremptory policy
in regard to these loans, instanced by
their postponement of the claims of
interest payments and the introduc?
tion of the bill in Congress by* the
present Administration giving the
Secretary of the Treasury plenary
powers to extend the time of pay?
ments on both principal and interest.
An objection on the part of the
American delegation led to the with?
drawal of an amendment submitted in
the general meting to a resolution
presented by the group on produc
tion, favorinj the abolition of export
taxes on certain raw materials. Th?
amendment would have placed the Con?
ference on record as opposing import
taxes as well as export taxes on un
ta?ed hides, skins or furs: wool i?
bulk or woo! skins, silk in cocoon, rav
j silk, materials for fertilizer, sum ii
: raw state, india rubber, guttapercha
; unprepared timber, raw cotton, natu
ral and precious metalr, mineral oil?
i and other materials. The America.'
| objection was based on e xtBting tarif
! laws in the United States.
In the Finance Group, under th?
: chairmanship of Dr. Walter Lea
i (Great Britain-), the question of for
| eign exchange was met by a resolutioi
i advocating a striet policy on the par
of the government with regard to
I taxation and departmental economy
i a policy of disarmament, the organisa?
tion of export credits, the avoidance
of contracting new external debts by
countries suffering from a depreciated
exchange, and finally advocating the
: greatest possible liberty in financial
; and commercial transactions. On the
question of deflation it was urged by'
professor Gustav Ca.s;?el ' (Holland)
that if a policy of deflation were per?
sisted in in countries such as the
United States. Great Rritain and
, France, great hardships wou'd be in?
flicted on other countries, but a reso
lution advocating that the inflation of
: paper currency be stopped and progres?
sively decreased was carried.
! _ Strong support was given to th?
lightening of burdensome passport
i-cKu!ations in the transportation and
communication group. A resolution
i favoring a bettering of condition?, the
issuing of a uniform type of ordinary
passport by all nations, the abolition
oL "exit visas" and the fixing of the
i fee for "entrance visas" at a maximum
? of 10 gold francs was adopted. Th?
commut?e siso indorsed the proposi?
tion that the international postal serv?
ice existing prior to the war should b*
restored and* extended on the basis of
, uniformity, and the lowest possible
scale of Charges on letters, printed
matter and merchandise samples.
' Opposition to the state operation of
industries and regulation of business
by the state was expressed in a resoiu
: tion by P. 0. Watts (United States), in
, which it was stated that "it is in the
; interest of international trade and the
, restoration of normal industrial ac
| tivity within each nation that the state
I operation of industries and interior-.
i ence and regulation of business should
,be reduced to a minimum."