New-York tribune., 1919-09-30

oPahtoH Wuethci ~ ~ pesC 70 HOlu or
sell Cuba Cane Sugar, of which have
number of shares, bought at $33.
h. d. +.
Answer: Continental Candy has out
standing 100000 shares of stock of no
par value. The company was recently
formed and took over certain proper
ties of the Corn Products Refining Conn
pany. Seventy thousand shares Of new
stock are shortly to be issued to stock
holders at IS n share and the pro-
ceeds are to pay for the stock of the
Buddy Block Candy Company. The poll
ICY of the company appears to be to
expand, and the fact that prohibition is
finally accomplished leads the directors
to believe that the consumption Of
candy will be much larger. For the six
months ended June 80, 1918, the net
sales were $1,985,644 and the cost of
sales was 1,403,64S, showing profit of
1881, 1896. The selling and administra-
tion expenses were $165,685 and the
profit before deducting taxes was $416,-
80. What the taxes were we cannot
state. The general balance sheet as of
the same date shows that their factory
equipment, machinery and tools were
valued at $450,G00, while their good
will, trade names and trade marks were
valued at $l,1O9,6 653. You may see by
this that while Continental Candy may
earn sufficientSto pay dividend, never
theless we should hardly class it as
an Investment.
There have been some disagreemcnts
among the Cuba Cane Sugar directors,
and General Goethals made report re-
Gently on the property suggesting sew
eral changes. These changes will un-
dOubtedly be made and the prospect
for a good year appears to be bright.
Question In few weeks I shall
have about $4,000 to invest. VIII you
kindly give advice on the following:
thought of putting about $1,000 or a
little more in 10 shares Of American
Telephone and Telegraph, or Northern
Pacific Railroad Company, which The
half into public utility bonds and the
other half into railroad bonds. The
public utility had in mind was Public
Utilities Company Evansville, lnd.) 6
per cent bonds, yielding about 63s per
cent. Would you advise Chile Copper
6 per cent bonds instead of this? The
railroad bonds were Central Railroad
Of Georgia IS or st. Louis g. San
Francisco prior lien per cent bonds,
Series c. My income is not such that
have to seek bonds that are tax
exempt, therefore have taken some
offered by Guaranty Trust and Ma
to 6.75 per cent. b. McC.
Answer--Both American Telephone
and Telegraph and Northern Pacific
Railway yield about per cent, but
they fluctuate considerably and are not
strictly speaking, pl.me investments.
The Central of Georgia per cent notes
yield at present price about $40 per
cent, and may be considered fairly good
investment. The Frisco prior lien 6
per cent bonds are not good invest
ment, as they are junior lien to many
other issues on the property. The Pub
lie Utilities Company of Evansville 6
per cent bonds may be good enough
Investment, but you have, after all,
said nothing about seasoned preferred
Industrial issues. What do you think
about United States Steel preferred,
yielding over per cent; Standard Oil
of New Jersey, yielding about $40 per
cent; United States Rubber per cent
stock, yielding about per cent? Others
suggested are Railway Steel Springs
preferred, American Car and Foundry
preferred, Wirginia-CarOlina Chemical
preferred. All of these companies have
long dividend records, have put cnor-
nous sums back into their properties
and offer good income return. If you
would invest your $4,000 wisely and
carefully. always be sure to purchase
securities that have good market;
don't buy the kind you can purchase
easily enough but may find difficulty in
selling.
Question: have little money to
invest and am in no hurry for re-
turns. What do you think of Missouri
Pacific preferred for permanent in
vestment &C H. r.
Answer-The Missouri Pacific pre-
ferred stock is cumulative at the rate
of per cent since June 30, 1918. Af-
ter the reorganization, which was a
drastic one, the road was earning con-
siderably more than 5 per cent on the
preferred. but for the year 1918 the in
dicated earnings and the guaranteed in
come return was equivalent to about 5
per cent. The railroad situation is a
great problem, but the Missouri Pacific
is good railroad traversing rich ter
ritory, and possibly the preferred stock
offers an opportunity at present prices.