New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-11-09

Company holes stocks of companies
which operate vessels for domestic and
foreign business. The Groton Iron
Works operates two plants, one for
building wooden and one for building
steel ships. Over 100000 has been
expended in putting these plants in
shape. Company has recently acquired
sixtyfiye acres near Alexandria, Va,
to build shipyard capable of con-
strucsing twelve steel vessels. United
Shipping Board has taken over ocean
tonnage of this company's subsidiaries.
Company has contracted with govern
mert for construction of twelve
wooden vessels, also contract to
build twelve steel ships. There Is out
standing SS,76G,soO stock, par $lo.
Authorized issue is s25,OO0,0O0. Com
pany paid per cent from July /,
1916, with extra dividends of - per
cent bi-mOnthiy, from August 1. 1916.
In March, 1919, dividend was passed.
Subsequently iron works went into
hand of receivers.
Question-About two years ago I
bought Brooklyn Rapid Transit stock
at 60. Would you advise me to buy
some more now. 50 rs to average nv
self down? What do you think Of
Missouri Pacific common and Lee Tire :?
j. T.. p
Answer-We cannot tell what out
come of Brooklyn Rapid Transit situa-
ton will be. Missouri Pacific is a good
road ana we do not believe that any
good road will be robbed of its earn
ing power to extent OF running that
road. Lee Rubber and Tire is rcpor ed
TO b. earning at rate Of $3.50 a share.
QuiCh aSSct, are said to be S2326000
or sac a share. Company should
few thousand dollars from a salary rot
very large and try to be careful in IN
vestlnG it. What do you think Of Cities
Service Company s per cent preferred
for an Investment, say ten shares? e.
W.
Answcr-Cities Service 6 per cent
preferred is good investment In our
opinion.
Question Kindly state whether you
consider an investment in German
marks safe. A. A.
Acknowledging German marl,s now
is not investing at ALL but simply gam
bling.
Question i have few Thousand
dollars to invest and would like
your opinion as to choice between
Central Leather IS bonds at 81 and
United States Rubber Is at 1924; also
on following preferred stocks Amer
lean car ard Foundry, American Loco
motive and Railway Steel Spring. Which
would be your first and second choice
for a good investment? f. W
Answcr-We should think Central
Leather per cent bonds better Sc
cured than United States Rubber 7
per cent rates, although latter are safe
enough. We should say that American
Car Foundry is best secured. prac-
tically TO choice between other stocks.
Question-W Would you classify United
Drug per cent first preferred as a
safe investment; also has il preference
over the second Pre- erred? W. S.
Answer--W should classify United
Drug first preferred IS a safe in
vestment. II has preference over
second preferred both as to assets
and dividends.
Qucston-We have been approached
recently by representative Of the
Winchester Arms Company, Of New
Hevon, Conn, with a proposition to
purchase from $500 to $500 OF their
stock, and in consideration of this we
were informed that company is about
to put on the market Il very extensive
lne OF tools, sporting goods, etc. The
company's representative stated that
some changes had been made in the
executive staff, so that now the stock
holders included representatives of the
Rexall Drug Company. and that they
had proposed to pattern their business
and methods after this concern. The
stock offered is preferred and the
price is about 90 The writer could
not secure any definite information as
10 who owned or what would become
Of the common stock. If You know
who now controls the Winchester Arms
ganizaticn or Intentions Or the value
of THEW preferred or common stock
we would appreciate it very much if
you will write use. II. CO.
Answcr-Winchcster Company was
incorporated in April, 1919. II was a
reorganization of Winchester Repeat
ing Arms Company, which dates from
1867, New company owns 81 per cent
of stock of old company. II has out
standing 100000 common, s9754, ZOO
first preferred and 100000 second
preferred. OF first pre- erred $780,
500 was issued to common stockholders
of Repeating Arms Company, w
shares of new preferred for share
of old common stock. Each 7Is shares
OF lrst preferred stockholders could
deposit with Messrs Kiddcr, Peabod..
4 Co. Ne shares and thereby obtain
| share OF common stock In new COM
pany. Or depositing stockohde RS
could participate in financing $500, 900
needed for new company by subscrib-
ing $3.50 for each share Of stock de-
posted and receive therefore ~,
shares new first preferred, shares
new second preferred and share new
common. Common stock sells for
about $3.50 q share and first preferred
for between $50 and SOS share. We
do not know who controls company.
Common stock alone has voting power.
except that in event OF four consecu-
tive non-payments of dividends on first
preferred it will have voting power.
Question-In buying securities for
investments and to receive income
therefrom, q friend always confines
himself to bank and trust company
stocks. for reason he thinks that they
are more closely watched and scru-
tln!zed and are under stricter govern
ment control, requiring them to be
more specific and more exact in max
lag their reports to government than
any other class OF corporations or
business, ard therefore must be safer.
He q $50 realizes that such stocks are
subject to double liability in case of
failure. First-Is he correct in said
conclusions? His answer to old say