New-York tribune., 1919-10-05


the vernacular He needs money to
complete his college course. During
the summer he has been working with
the engineering department of local
railroad, and some of his associates
have convinced him that speculation in
German marks Is get-rich-uulck prop
ositlon. Being in need of funds, he
jumped to the conclusion that it was
the best way to get them. He spoke to
me about it, but as best as can advise
him | thought it hazardous for him to
take chances with the few hundred dol
lars he had, because a turn of the
tables might prove disastrous to him
and his college career He has not yet
gone into the venture, but is about to.
What l want is your candid opinion
and advice, not that l am interested in
the proposition myself, but because if
speculation in marks is hazardous this
fellow would find himself in worse
straits than he is at present which |.
Tor one, would save him from if it were
IN my power to do so. If the PROPOSE
tlon is dangerous, and if you stated so.
he would be influenced the more by
your saying so by virtue of your
authority on the subject of finances.
You may be the savior of a career
where it might, without your advice, be
a broken one. J. F.
Answer.-1he price of the German
mark has declined to below cents, and
has recently recovered to about AZ
cents. Considerable talk has been
heard recently about the money to be
made in the purchase of marks or the
purchase of options on marks. Spccu-
sation is going on in these marks on
the assumption that when trade in Ger
many returns to a point more nearly
normal great profits Will be realized.
when is trade in Germany going to
turn toward normal? No one knows.
Inc whole proposition is gamble. pure
ana simple, and no one should specu-
late who cannot we'll afford to do so,
we advise your friend to refrain from
making this gamble.
Question-Will you kindly oblige me
with information on the following? |
intend 10 trade in stocks. | realize
the odds against me. Kindly refer me
to a publication whereby | can secure
irst-hand information regarding stocks.
chiefly those listed on the New York
Stock Exchange, also New York Curb.
l ne intrinsic value, reputation of the
officers IN charge, earnings and future
possibilities and other data to elimi-
nate my losses as much as possible
X. l.. H.
Answer--It would seem best, if YOU
are intent upon trading in securities,
to go to some New York Stock Ex
change firm where all the information
ycu desire regarding earnings. etc, OF
various corporations is available. The
active stocks of the exchange and the
curb appear daily in The Tribune, and
there are many publications which will
also give you the desired information.
But all we'll equipped brokerage Offices
advertising in The Tribune have these
data to such a great extent that it is
doubtful if you can equal it by pur-
chasing the innumerable volumes neces-
sary.
Question: have $4,000 Lake Shore
Railroad collateral 81 per cent trust
bonds and $4,000 Chesapeake {. Ohio
Railroad general d z per cent bonds
paid "a and 70, respectively. for them.
Am told that the New York Central
Railroad guarantees the interest and
principal of the Lake Shore collateral
trust bonds. Are they considered good
securities? l am not obliged to sell
them, but bought them for perma-
nent Investment. Their present low
market value prompts me to inquirc
OF YOU as to whether you would advise
taking the loss now and investing I'M
something more secure F f. L..
Answcr-The New York Central &
Hudson River Railroad Company. Lake
Shore collateral trust 3'E.e per cent
bonds are assumed by the New York
Central Railroad. They are not guar
anseed, because they are an integral
part OF the system, and are prior in
lien to 65.355, 600 consolidated As of
1888. s4e.0c0 900 dcbenture as of 1884.
So. $4,000 debenture Is of 1912 and
$40 100000 rciunding and improvement MT
A1as Of 2O13. The yield at present
prices is 5.55 per cent. The Chesapeake
Ohio general mortgage 4I2 per cent
bonds, due 1892, cover a first lien on
926 miles. second lien on 2O2 miles
and third lien on ESP miles. The
outstanding issue is $43, 10000. At
present prices the bonds sicld per
cent per annum. The security behind
both of these issues is ample, but all
railroad bonds have declined so muc!,
in late years that it is no wonder
holders are discouraged. 1t seems to
us that while if you sell these bonds
at present prices you might be able
readily TO Increase your income. YOU
might also decrease the value of your
principal. Nevertheless, there are some
seasoned industrial preferred stocks
which held from 6H per cent to 7 Der
cent.
Cuestion-W Would YOU kindly advise
me on Virginia Iron, Coal and Coke. the
present price and when due. and do
you advise buying it? Also advise me
on the bonds of No. Remington Type
writer common first and second pre-
ferred.-C. W. n.
Answer-Thc Virginia Iron, Coal and
Coke Company first mortgage per
cent bonds are due March !. l949. The
interest is payable March | and Sep
tcmbcr |. The original issue was $40.
O0o, 600. in March, 1899, and to date
Sb,0la.00C have been RETIRED The bonds
are hrst lien on seven blast furnaces
$50 coke ovens, $4,000 acres of Goa
land owned in fee, mining rights ir
'1SoO0 additional acres in Virginia, IS :.
OUO acres Of coal land in Kentucky anr
10000 acres Of ore land in Tennessee
for the year ended December 81, 1918
me balance after depreciation. taxes
interest. ETC.. was S26a,3t2 The bond.
are quoted between 81 and IS, and il
held until maturity would Weld abou1
6.lo per cent. The bond is Il sound in
dustrial investment. The Remington
Typewriter Company met considcrabI,
difficulty during the war period, bur
since the signing of the armistice the
co'npanys business, particularly it.
foreign business. has improved mate
rally. On December 2S, 1913, the com
pany paid dividend of 20 per cent
h.,