New-York tribune., 1919-09-27

8.
please tell me if Pcnnok Oil is fool
irvestmeht.-C. II. d.
Answer-We arc unable to find any
official announcement why the Ohio Oil
Company's dividend was reduced. The
company has been paying regular
dividend Of $125 a share and an extra
dividend of $4.75 share. The last
declaration was S1.25 regular and s2.75
extra. Capital comes rather high these
days. and perhaps the directors thought
It better to conserve capital. We do not
believe that any non-producing oil
company may be classed as a good in
vestmCnt.
Question-W you be good enough
to give me some information on the
following queries. Why does Central
states preferred, paying 2 per cent.
sell at the present price, 02-G5? The
latest reports that have seen show
ample earnings to pay dividends and
leave substantial balance Are not
the bonds of the New York Gas, Elec-
trio Light. Heat and Power Company
considered. both the per cent and s
bonds, and if so why do they sell At
the present low figures? Do you CON
slder the new Z per cent preferred
stock of the Standard Oil Of New Jer-
sey high-class investment?
Answer-The Central States Electric
Corporation, holding company, whose
greatest asset is its Is per cent of the
capital stock Of the Cleveland Electric
Illuminating Company, showed for the
year ended December 81. 1918, an
amount equivalent to about III per
cent earned on its $5,45l,900 Of pre-
ferred stock against about i, per cent
for the previous year. No dividends
are paid on the common issue. While
the price of 62 to 65 may appear some
what low for the preferred issue, YOU
must remember that public utility is
sues have all suffered in recent months
and that this particular issue does not
enjoy very active market. The earn
ings would indicate that dividends
would be continued. but we would not
say that they were so large as to war
rant the stock selling any considerable
amount higher The New York Gas
Company 5 per cent and per cent
bonds. yielding respectively at present
prices 5.95 per cent and $50 per cent,
are not out of line with similar invest
ments. No bonds sell where they did a
few years ago, for the reason that ono
cannot afford to accept taxable bond
yielding per cent any longer. The
new ! per cent preferred stock of the
Standard Oil Company Of New jersey
may be considered a good investment.
Question: am the holder Of several
Nassau Electric Railroad d per cent
consolidated mortgage gold bonds;
these defaulted interest payment due
July l. hold several Nassau Electric
Railroad first mortgage per cent
gold bonds; the next interest period on
Eoc 10 no+o I /
both Of these are underlying issues of
the Brooklyn Rapid Transit. VIII You
be good enough to give me q brief
history OF these issues: what bonds are
ahead Of them; what mortgage they
represent, whether it is probable they
will resume interest payments, and ii
any market value, about what it is.-G.
O. c..
Answer-The Nassau Electric Rail
road first consolidated mortgage As,
due January l, 1851. of which there
are outstanding Sl0,347.00O, are secured
by mortgage on all the company's
as follows: S660.O00 Nassau Electric
Railroad first IS, 1874; S2.2il 900 Allan
tic Avenue Railroad general con.
solidated 5s, 1881; $4,000 Atlantic
Avenue Railroad Improvement 5s 1884,
and Sl21,000 Brooklyn, Bath and West
End general as, 1888. The Atlantic
Avenue Railroad has been merged with
the Nassau Electric Railroad, and while
the Nassau Is defaulted on their in
ferest July ! last. we cannot say hat
the per cent bonds will necessarily
default on October l. However. we
understand that the receivers have ap-
piled for an issue of receivers certifi-
Gates. The Atlantic Avenue improve
1S of ad Tu1 ko
Nassau Electric SIS are secured by
first lien on 34.4l2 miles Of surface
lines. The Brooklyn Rapid Transit
owns practically all of the stock of the
Nassau Electric Railroad Company.
which stock is deposited under the
Brooklyn Rapid Transit refunding Is
of 2002. 1t appears that the situation
in Brooklyn has been pretty we'll dis
counted, for the Nassau Is are quoted
35 bid. offered 40, and the IS at 20
bid. offered at rs. We believe you
would be better off to hold your bonds
than sacrifice them at present prices
Question-Wil YOU kindly give in
formation i'll the columns OF your paper
concerning Consolidated Interstate
Callahan Mining Stock, when dividend
is paid and general prospects ?-F. +. r
Answer-This company has outstand-
ing $3,198.930 capital stock, par value
$40. For the year ended December 81
1918, the company earned 81 cents a
share against IS for the eighteen
months ended December 81, 1912 (the
fiscal year having been changed) and
$667 for the previous year. The presi-
dent stated that the decrease was due
to the enormous decline in the price
of speter and to the highest cost of
operating. 1t has also been stated that
the prospects are brighter than fo-
some time past. The last dividend was
paid October 21. 1918. the rate that
year being .Sl.75 share, against 50
in 1917, Sc in 1915 and $3.50 IN 1918.
No dividends are paid at present.
Question: own 30 shares Of Toledo,
st. Louis & Western common. Certii-
cate bought about five years ago. is
there any proba bility of stock going
higher? 1t is now about l3. Do you
think there will be an assessment on
the stock Is Chicago Great Western
common stock a fair buy around 81
J. II. W.
Answer Much depends upon what
will be done with the railroads in the
near future. when the government is
ready to rid itself of them. Intrinsi-
cally, Toledo, St. Louis & Western