New-York tribune., 1919-10-03

l54 Nassau Street, New York City, |
Question-Please give me informa-
tion and opinion regarding following
convertible bonds: Wilson & Co.,
American Telephone and Telegraph,
Pierce Oil and Southern Pacific-P. c.
Answer-Wilson & Co, Incorporated,
ten-year convertible per cent bonds
due December ], 1928, S2O.OOO,OO0 is
sued, are redeemable as whole or in
part on sixty days notice on June l,
1919, at 105 and interest, and on any
interest date thereafter at 105 and in
terest, less y of ! per cent for each
year or part thereof elapsed after June
|, 1919. Sinking fund provisions call
for retirement prior 20 maturity of
about 65 per cent of issue. Converti-
bic from and after December /, 1920,
into common stock at rate of ten shares
of stock for each $1,000 bond, with cash
adjustment of interest and dividends.
There are two issues of American Tele-
phone and Telegraph convertible
bonds. The AIS, due March /, 1888,
S13,073,500 outstanding, the redeem
100, on any interest date. on twelve
weeks notice, and may be converted
at part into common stock at S120 a
share to March |, 1925. Entire ex-
change may be made in bonds or bonds
may be exchanged for stock, par for
par, upon payment of $40 in cash for
each share of stock. Seven-year con-
vertible 6s, due August !, 1925, S4S,-
353,624 issued, are convertible at any
time after August |, 1920, into common
stock at 1906. Pierce Oil per cent con-
1920, $1,975,000 outstanding, $4,000
retired. Convertible into common
stock at any time at $40 share, with
adjustment of interest. Southern
Pacific Company convertible debenture
5 per cent bonds, due June 1, 1884, are
redeemabie as a whole only on June 1,
1919, or any interest date thereafter
at 105 and interest. Outstanding June
IS, 1919, S46,505,50O; converted, SS.-
O2S.5O0. Convertible before June /,
1924, in stock at par. Earning power
convertibles are good speculative in
vestments.
Question Are following safe invest
ments: American Car and Foundry
American Sumatra, American Snuff
New York Air Brake, Baldwin Locomo-
tive and American Locomotive? Why
are those paying 10 and II per cent
selling so low? Is there any specua-
tive value in Pacific Mail and Western
Maryland-A. P. +.
Answer-AIl these stocks are more
or less speculative. Dividends change
according to earnings. If you desire
more stable investments, why not look
into seasoned preferred stocks? Many
speculative stocks sell on high income
basis. There would appear to be some
speculative value in both Pacific Mail
and Western Maryland. Former. with
revival of shipping, should benefit
largely. Latter, while uncertain as to
destiny, as are all the railroads of the
country. is said to be earning better
than heretofore. There has been sug-
gestion that oil might be found along
property.
Question What are prospects of
Continental Candy. WHY'S Overland
and International Nickel for long
pull &C. r. |.
Answer-Continental Candy bought
some properties of Corn Products Re-
lining and is now expanding by pur-
chasing other properties. Is reported
to be looking forward to large sales of
candy, due largely to enforcement of
prohibition. Stock has no par value,
but in filing listing application COM
pany stated that shares were based on
parity of 50. Stcck sells for owe. 200
per cent of this figure Prospects ap-
pear bright. Willys-D -Dvcriand, IA cunser-
lively managed corporation, was re-
ported to be earning more during first
quarter of 1919 than for similar period
last year. Deficit was reported for the
second quarter, due to the strike of
employees, but on August 20 reported
that so per cent of employees had re-
turned and production was returning
TO normal. Company recently was re-
ported to have ordered l25000 tons of
steel. Stock pays 81 a year, par value
$25. and the present price of S32 would
dends. international Nickel passed it's
common dividend last June; reason
given, domestic business had fallen off
and foreign business had almost
ceased. Therefore, thought advisable
to conserve cash. Quarter ended June
30 1919, balance for common stock,
S41,24l, against S1.712,676 in 1918.
Stock at present sells slightly above
par (S25). Said that business outlook is
better.
Question wish to buy about fifty
shares of some good common stock,
preferably three or four kinds, paying
good dividends and selling at, say
from $50 to 500 a share. What would
you advise and what do you think of
following and prospects of their early
advance; Royal Dutch, Lackawanna
Steel and United States Stecl?-C. c.
Answer-We cannot advise purchase
of any particular issue, but following
may be of use to you. Royal Dutch
Petroleum, one of the largest producers
of oil in the world, sells at present on
basis to yield over 80 per cent per
annum. While that return is large,
bear in mind that production Of oil is
uncertain business and much depends
upon the maintenance of present price
for petroleum. Lackawanna Steel and
United States Steel earn good margins
over present dividends. Steel common
sells at an unusually low yield basis
at present, t,ut policy of directors has
always been conservative. Former COM
rany was able. during war period, to
retire large amount of bonded debt
which increased equity of stock. But
these stocks are largely speculative and
subject to all sorts of news. Why not
consider seasoned preferred stocko
Financial Items