New-York tribune., 1919-10-23

De answered by mail
,taro nooesss al queries. inclosins
.aHP"d addressed envelope TO
FINANCIAL EDITOR. The Tr,bo..
io& Nassau street. New York City.
Suestion-Own $4,000 par value of
Lenlgn Power Securities CORPORATION.
lo-year per cent secured Gold Notes.
maturing in 1927, purchased at aver
age price of 10, also $4,000 par value
OF Utah Securities Corporation s per
cent gold notes, maturing 1922.
bought at 90. Am under impression
that THESE notes are about as safe as
awning that is offered, as under
stano on gold notes there is no danger
oI interest not being paid as it falls
uus ana that on maturity principal
ana interest will be forthcoming.
hat do you think of Manati Sugar
preferred at 471a? Would you advise
selling *. C.
Answer-Lehigh Power Securities 6
per cent notes are secured by deposit
of six various common and preferred
Stocks of controlled companies. For
the year ended January 81, 1918, the
interest charges were earned about
twice over, which is fair margin
only. Utah Securities Company per
cent notes are received in the same
way. The last repoft we have was for
the year 1917, when interest charges
were not earned trice over. You are
mistaken about interest and principal
being sure because the notes are gold
"o'es. lnese notes appear good
enough, but If a company cannot pay
II doesn't pay. Manati Sugar preferred
appears to be we'll secured. The COM
pany Is large Garner and the stock
Is fair investment. We cannot ad-
wise regarding speculation. Midvale
steel Is speculative and usually moves
with the rest Of the list.
Question-Have been advised to buv
Middle States Oil Corporation stock
(par $lO), now selling at $40 to s32 a
share. Please tell me if this is re-
liable concern and if you consider
same a good investment. also where
properties are located, production and
management.-B. L.
Answer-Middle States Oil Corpora
tion owns oil and gas leases on about
$4,000 acres in Oklahoma and Texas.
Company. has twenty-four wells pro-
100000 cubic feet of gas Is obtained
from three wells. Dividend record is
as follows: 1917. per cert; 1918. II
per cent and II per cent in stock:
1919, l per cent per month to date and
s per cent in stock February and 10
per cent in stock May /. Company is
we'll managed but like most oil produc-
ing companies the stock is specula-
tive.
Question-What is known of the as
sets and probabilities Of Tropical Oil
Company? 2. How do you view Ameri-
Ir;o
Answer-No financial statement Of
Tropical Oil Company Is available at
present. Company holds rights to large
acreage in Columbia, South America,
about 375 miles up Magdalena River.
In 1918 it was announced that COM
pany had uncovered an oil field, prod
uct said to be equal to Pennsylvania
crude. Production Is said to be 10000
barrels daily. Capital authorized, $50
100000; outstanding. s35,0O0,0 900, of
which 100000 shares were sold to the
public at S. a share, par value $25. No
dividends to date. American Steel
Foundries for first six months Of 1919
earned at the ratio of 2}.34 per cent
per annum on common stock. Outlook
Is said to be good, largely due to ex-
pected replenishment of worn out
steam and electric railway equipment.
Its plants produce abou tone-third of
all steel castings for railway equip
ment.
Question-Could you give me any in
formation on Southern Utilities Com
pany preferred stock, one of the j. G..
White companies? Bought this stock
in 1912 and for past two years it has
not paid any dividend. 1t seems worth
less as cannot get an offer for it. Was
advised at the time by a broker to
effect that I WAS making a conservs-
tive investment.--R O. X.
Answer-Southern Utilities Company
showed a deficit for 1918 of $l7,6O4
with no dividends on preferred stock
Gross earnings were largest in years.
but operating expenses and taxes re-
duced the net to $l68.366. There is no
actual bid in the market at present for
the preferred stock, so we are in
formed. 1t does not follow that the
stock is worthless. All utilities have
suffered inevarying degree in the last
two or three years as a result of rising
costs and stationary rates.