New-York tribune., 1920-02-13
Real Estate High in Dallas

Question-Wc have $1l 900 to invest, but
cannot afford to take any, chances AT all
We have bought small mortgage, five
on it. City real estate improved and the
value has been determined by the bank, but
prices are very high, and perhaps Is per
cent higher in real estate than they were
five years ago in Dallas. We hold fire in
surance, tornado insurance and the first
lien. $1,000 on a value of $4,000. With a
possibility of n slump in prices. would you
advise that we invest $1,000 at the same
rate and in the class OF investment :?
Seven per cent is the usual rate here for
bank mortgages. and auto paper brings 10
per cent. With the franc low as it is
at present and the pound at its lowest rate
would it be good or safe investment of
ST 900 on each Of these bonds? Would
they be taxed? Where could l buy them
j. j. d.
Answer-Whilc per cent on good
mortgages is much greater than one
would receive in New York or vicinity,
it would appear that under the circum-
stances it might be well to diversity
your investment somewhat Bonds of
corporations showing good earnings
may be purchased at present to yield
about per cent. Good preferred stocks
of corporations showing large earning
chased to yield from per cent to more
than 7 per cent. If you feel that 7
per cent is what you should receive
such stocks as American Can preferred,
Corn Products Refining preferred and
b. f. Goodrich preferred offer this in
come return. The internal loans of
Great Britain and France are selling at
very low prices. With exchanges at
the lowest prices in their history, good
opportunities appear to be offered by
these issues. We do not know how long
it will take these countries to recover.
Therein lies the speculative feature.
They may be called safe only because
they have always managed to pay their
debts. The interest on the bonds is
taxed in this country and probably in
France or England, too. Communicate
with any reputable broker in New York
or any large city, and he will pur-
chase the bonds for you.
All Show Good Earnings
Question-Wil you kindly let me know
which of the following offer the best specu-
ative investment. which Of them have the
most conservative management and what is
the relative earning power of each: Worth
ington Pump and Machine preferred, Allis-
Chalmers preferred. Columbia Graphophone
preferred. Packard Motor Car preferred p
Il. p. S.
Answer - Worthington Pump and
Machinery showed for 1918. the last
published report, 6437 per cent earned
on the Class "a" preferred stock, 81 .08
per cent on the Glass "B" preferred
stock, and 1898 per cent on the com
mon stock. Unofficial reports state
that earnings for 1919 were over $50 a
sha on the common. Allis- Chalmers
for nine months Of 1919 showed an
annual rate of 1921 per cent on the
preferred and 7.20 per cent on the
common Columbia Graphophone
showed for ten months of 1919 an
amount equal to $3.35 share on the
common stock after allowing for pre-
fcrred dividends. Packard Motor Car
for the year ended August 81, 1919,
showed 67.92 per cent on the preferred
and 4ll6 per cent on the common
stock. This company has been the
most consistent Garner Of any of those
mentioned. We should rate the pre-