New-York tribune., 1919-12-26
v hite Motors Rights

Question-Will you please inform me
as to the new stock issue Of Wb;tc
Motors, which understand will be
open for subscription between Deem
Der is and January l. The writer is
at present holder Of 100 shares Of
" hlte" ana is anxious to get Informal
ton as to selling the rights Of that
part OF the new issue to which he is
entitled. haze not seen p quotation
OF rights so far. Does not the price OF
the nights lluctuato daily, during the
Q@riod N which they arc operative, in
a ratio with the market value tluctua-
Nons OF the stock itself? When a COM
Ike The proposed "White" issue. is it
the tendency Of the market for two
weeks previous TO the subscription
date TO bring tho market value of the
existing stock down to par or vice
versa? ? Do you advise holding white"
which was purchased at "a for q long
pull?-F. s. a.
Answer-Stochholde of record De-
cenbcr Is are entitled to subscribe to
one new share Of TIE White Motor Com
pany stock for every four shares now
held. This right expires on December
81 next, on vhich date full payment
wiz be due. The rights are selling for
about 81. Rights usually Huctu-
ate with The stock. Frequently, how
ever, during the last day or so of tho
lie Of the rights, they are inclined to
weaken, due TO the selling of those who
were undecided whether or not to sub
scribe up TO that time. The White
Motor Company is we'll managed con-
Germ and has good earning power, but
The stock is speculative, moving with
the general list.
Canadian Pacific Heavily Sold
Question-Why is Canadian Pacific
stock selling at its present price? A.
short time ago bought some Of this
stock as an investment and am won
dering whether It's recent low price Is
anything to be alarmed over. Would
YOU consider United States Steel pro-
ferred safer investment than the first
and rcfundng G per cent sinking fund
yo'd bonds OF the Great Western Power
Company OF California? You recently
suggested Virginia-C Carolina Chemical
Company per cent preferred stock as
a Good investment Their record seems
10 support what you say, but | am
wondering why this stock is not selling
at s price which would offer the same
yield as some Of the good 7 per cent
preferred stocks, such as American
Woolen, American Sugar, National
Biscuit Company, etc.-E. j.
Answer---Canadian Pacific stock has
been depressed recently on account of
the selling from Canada and Great
Britain. This was done to help stabilize
exchange. which is greatly against
those countries We do not believe
there is any necessity to view the sell.
lug with alarm. We prefer United
States Steel preferred to Great West
ern Power bonds, because the stock has
an enormous equity behind it. Its earn
Ing power has been demonstrated over
a period of years, including years OF
depression. Virginia. Carolina Chem
zeal preferred stock possibly is NOT
appreciated by the average investor.
we cannot see any other reason why
the stock does not sell on a parity with
other preferred issues From 1910 to
IVY the amounts earned on this issna
ranged from 8.72 per cent to Al 90 nar
cent. The year 1913, in which 9.72 ner
r>nt was earned, was 4 poor one gen.
orally. This looks like a GOOD rccora.