davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Good Chance to Minimize Risk

Suestion-~1 have $500 which am any.
! that n Invest IN sood bonds Have read
| cnn,,.,per cent. with the present money
ne "iu n.s. was quite conservative rate
an ' an but have noticed that you in
differ Would you be so Kind Az 10 toI' mo
U. nNe good bonds, and their present Weld.
! NJ ; ;,,t IN your opinion offer az high rate
! principal? Naturally. especiailv in tbes -.
, lays OF the high cost OF living, ] should
nNe as much OF return on my money as
| possible, but without undue risk n not
corresponding, l would also prefer non
90, o. PIE ponds, as it would seem good pol
present advantageous rates Am rather
ohtos, as to the safety OF four bonds
r which / now hold. but which were we'll
, ro,', ed to me-Hudson 4 Manhattan
IIeIunding 5s Rock Island Arkansas &
c;son ana rs and ST Louis 4 San Fran
10 you regard them as unsafe? Am not
IN financial position to lose any money
ouI nope for good rate of interest be
SSuse OF ABNORMAL conditions when even
me highest grade bonds are said to be on
ehe bargain COUNTER. NJ. *.
Answer-Seven per cent is not a
conservative rate of interest. 1t is an
abnormal rate for the use of money
winch dealers in that commodity are
now able to charge. owing to the strain
on banking resources produced by
ereolt imitation the. world over. When
the process of defation in commodity
prices. which appears to have made a
pretty fair start in some sections of
the country, gets we'll under way money
rates are likely to feel the knife, even
as prices for clothing, shoes and other
necessary articles are now being
slashed. When that day comes we be-
heve that securities which are selling
on per cent basis will probably oc-
cupy a stronger position in the invest
ment market and absorb any shocks
that adjustment to the new order OF
things may occasion more readily than
those now selling on a 7 or per cent
basis, because the latter are more spec
ulative, as rule. We do not mean to
imply that bonds yielding per cent or
more at this time are unsafe. What we
have tried to show is that large num-
Der OF issues now yielding to 61a per
cent are as we'll secured as one could
hope to find and offer the man or
woman with funds to put out at inter-
est an unusual opportunity to secure
permanent investments of the highest
grade, yielding an income which under
more normal conditions will afford
much comfort and satisfaction. The
recent issues of equipment trusts ty
the Pacific Fruit Express (Union Pa
cifc and Southern Pacifc) and the
New York Central (long maturities)
are good investments, in our opinion
The first mortgage bonds of the Wa
bash, the Denver & Rio Grande and the
Colorado & Southern are also good in
vestments. We do not believe you
should be concerned over the bonds you
now hold, even though they are not of
the highest grade. They are, in our
opinion, reasonably safe.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
HOLIDAYS This WEEK

NM Monday-In Algeria, Austria, BAHIA
mas mas, Barbados, Basutoland, Bechuana-
, mnSs belgian Congo, Bel GUM, Der
d nras' British Guiana, British Hon
Island;. bulgaria, Canada, Cayman
ns .anaa, Ceyion, Chine, Curaco, yprus,
CCewnimark, Dutch East Indies. Dutch
N Nsilsna, Ecuador. Egypt, Federated
i na0 ~ states, Finland, France, French
m"su nun French West Indies. Ger
I esisyn,s1 Gibraltar, Hong Kong, Hungary,
1sla ado' India, Jamaica, Leeward
Nonsco' MMadagascar, Malta, Mauritius,
WAN Morocco, Newfoundland, Nor
say STAY, fNSyasaland, Poland, Rhodesia,
st s%, tBangkok), South African Union
Tr a.s Settlements, Swaziland. Sweden
and "' G and Tobago, Turkey. Turks
%;rdUUaico s Islands, United kingdom,
W IsdseayLln Argentina, Uruguay.
Thvumesday-In Baltic States.
N"ursoay-In Rumania
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Great Northern Preferred

Question-What Is your opinion Of Great
Northern preferred at TX an invest
tneht Tor small amount Of money? Why
90 YOU estimate, that it Is apparently so
cheapf-R. b. G.
Answer-We do not class Great
Northern stock as an investment issue
at the present time. 1t remains to be
seen how the road will fare under the
new railroad legislation. This uncer-
tainty has caused selling of all manner
OF railroad securities. The purchase
OF the stock may prove to be a good
one from speculative viewpoint. That
depends in large measure on what the
road Will earn under the new act. You
prices with those of pre-war times
Conditions have changed Stocks which
were at one time considered a rood
Investment have become highly specu-
lative.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Brooklyn Rapid Transit Stock

Question-Please give me your opinion
whether Brooklyn Rapid Transit, stock at
amount OF bonds ETC. Outstanding is a
good speculation. OF course l realize no div
bends are in prospect for long time
the stock and the certificates, as the lat
Yer are usually three or four points lower
IMAM the stock What causes this differ
1lttees expenses will ultimately have to
be borne by the stockholders who have
deposited their stock with tic. j. X
Answer-It is very. difficult to form
an intelligent opinion of the real value
OF Brooklyn Rapid Transit stock under
present conditions. When the receiver
renders his report and plans of re-
organization are form ulated it may be
found necessary to assess the stock
holders. The greatest problem, how
ever, appears to be the question of in
creased fares. Investors have grown
timld about placing funds in public
utility properties, particularly in New
York City. The present controversy
between the traction companies and
the city officials does not appear to get
anywhere. For these reasons Brooklyn
Rapid Transit stock is a prospect only
1t would probably be "long pull" as
you say. The certificates represent de-
posted stock. The difference in price
between the certificates and the stock
is due to the fact that the former is
not free, but must abide by the de-
clslon of the committee, while the lat
ter is not subject to any restriction.
Any expense, provided the. committee
succeeded in bringing about a plan
acceptable to the stockholders, would
probably be shared in by the unde-
posted stock.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Stanton Oil (Newl Stock

Question-Several weeks ago l noticed
in Your column a. resume of the Stanton
Oil Company At that time the stock was
quoted about SO cents, ! now note
that Stanton OIL new is selling at "a to g.
l would appreciate report of the known
condition Of this company.-C. r. H
Answer-A little over month age
the Stanton Oil Company announced
that it had increased its capital from
time changing the par value of its
stock from 81 to S. share. The com
pany also stated that it had acquired
properties comprising over 81 900 acres
in Texas and Louisiana for which So
100000 of the new stock had been taken
in payment. We have no report on the
company's present production or earn
ings.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Federal Mining and Smelling

Question-What is your opinion Of Fed :
eral Mining and Smelling preferred stock !!
per cent dividend on 800 par, Is this
patA quarterly and par basis? 1t Is
down to 40 and at this rate II is paying
about 16 per cent. Would this be rhys-
FERROUS risk for an investment? Is there
any limitation to the duration of the pre-
ferred stock to its redemption =
H. II. Nj.
Answer-The Federal Mining and
Smelling Company recently declared a
dividend Of IN per cent, or S1,75 a
share, on the preferred stock, payable
June Is. The last dividend was y
per cent, or rs cents a share, on
March Is. Previous to that dividends
of so cents a quarter were paid, max
ing a total of 1915 in 1919, against
81 each in 191a1and 1917. The pre-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Seeks Sure Income for Mother

Question-My mother at nifty five will
wishes to invest. The first consideration
Will be security Of income. since 1t will be
her sole income; it should also be In fairly
to be worried with it's renvestment. VIII
you please criticize the following tentative
purchases: 100000 in Liberty bonds, sec
ond AIS $4,000 in external bonds of
France. Belgium, Canada and Argentina
$1,000 in municipal bonds, such those OF
the city of Los Angeles; $1,000 in first
S. w. Stratus & Co; $1,000 in diversified
railroad bonds such as Atchison general
ern Pacific prior lien As. New York Cen
trail consolidated As and Illinois Central
collateral As; $1,000 in industrial preferred
stocks and bonds such as Virginia Caro-
lina Chemical preferred. United States
Rubber first preferred. United States Steel
preferred, American Telephone and Tele-
and refunding So. Amy suggestions to
changes or additions to the above will be
recommend placing the entire investment
after purchase in the hands of first class
trust company or bank for collection of
coupons, income tax payments. etc. Mrs.
a. P. A.
Answer-We have but one criticism
to offer of your suggestion for an in
vestment of the kind you desire to
make. 1t is our opinion that so large
a proportion of the principal should
not be invested in the foreign govern
ment bonds. At the outside $4,000
would, We believe, be sufficient, the re-
naming $4,000 to be placed in the
railroad issues or the industrial stocks
and bonds. Otherwise we believe your
list is we'll chosen. To place the Sc
curities with a first class trust COM
pany which will attend to the collect
ing of interest and dividends as we'll
as other details would prove a most
convenient arrangement.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Conservative by Nature

in the world, sixty-two years old lame
and not able to earn much money am
small: am conservative by nature. have
recently inherited forty-eight shares Penn
sylvania Railroad stock. $50; fourteen
ing dividends? Of course know copper
Is highly M9uld HoW ha
this RAILROADS. will come back in time.
Does the SA per cent guaranteed by the
will get 61s per cent dividendsf My
certificate does not say preferred" SO 1
suppose it is "common, but know little
S. w Straus & Co. considered reliable !?
They deal in mortgages. l cannot afford
to lose any principal but ot can a fS to to
YOU think it is good in the long run.
should never buy stocks but having them.
is 1t best to hold any or all OF them?
Miss A. E. B.
Answer-If dependent upon the in
come from your investments you should
not hold such stocks as you now have,
as they are too speculative. We can
not attempt to say whether the present
is the proper time to sell. The stock
market is greatly depressed. 1t may
become more so or it may rally.
Therein lies the speculation. The
Pennsylvania Railroad has but one
class of stock. Until the government
took over the roads this stock was
considered a very fair investment
Under government operation it did not
actually earn the - year dividend.
Unless increased N.es are granted so
that the road may overcome it's ex.
penses of operation it might be forced
to reduce the dividends 1t is our opiin-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Norfolk & Western Pref-A T. and r.

Question-Is there any reason why Nor
folk G. Western and American Telephone
and Telegraph Company preferred stocks
would not be a good investment at their
present prices? Are you reasonably Ger
tain that their present rates OF dividend
will be maintained Il. e. Y.
Answer-Norfolk & Western is one
Of the best railroads in the country
The preferred stock has always been
considered good investment. We be-
lieve it will continue to pay per cent
for some time to come. There is no
preferred stock of the American Tele-
phone and Telegraph Company. Pres
ent earnings are slightly in excess of
10 per cent on the capital stock, so we
are informed, and we know of no rea-
son for expecting q reduction in the
present per cent dividend rate, al
though if the directors believe it nee
essary to conserve cash we do not think
they would hesitate to reduce it. For
business man the stock seems to US to
offer a fair investment.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Pittsburgh & West Virginia Common

Question: own 100 shares of Pitts
ooursh and West Virginia common stock.
pose of their coal properties what effect
W5 that have upon the common stock?
Woutu II not take so much from the
should the common stockholders receive
what is called plan" ?-M. NH
Answer-You cannot keep your cake
and eat it too. If the Pittsburgh e.
West Virginia should segregate it's
properties the stockholders would be
entitled to their share in the distribu
ton. What the value of the coal prop
erties represents we have no means
OF knowing: In all probability the road
would continue to carry the coal mined
on its present holdings if it should
release them. The stock offers specu-
lative possibilities.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Financial Items

I0asnge to list $40 600 shars. 70 ., 'n NJ s.ock
Sany. ws, o. the Phillips Petroleum Com.
fackinx ernhusl meeting of the Californt,
8snfIsS company next Tuesday r I
&. Ary. vice president. will suoceed law,
A. W tne retiring president.
hoval Of Wallace .i & Co. announce the re.
Moysc v oniceE to l65 Broadway
from m. " holmes have received word
hsetinnn e Hanes Knitting Company that q
Tor JnSS OF stockholders has been called
vote unor The board of directors viii
Stock diyiaaa' motion to declare a common
]. In" MIL be approximately ;2..5o,ooo,
Of The %a Van Zelm. assistant secretary
fompany , York Life Insurance and Trust
trustee a; TBS recently been appointed u
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23

Qaestfo~s Of general interest to
s"vestoTs 'oif! Be ansDered in tAis
cotM"m. in .phtch case only ir;t;ois
sotu % used. Others pitl Be an.
snered BY mail. Address all In.
ga'r1es, 'nclosinS a stamped, 3D.
aIr'esse6 cn"eIope, to Financial Editor.
~ ~s 1r1ov.s, IsI Nassau Street. Nsss
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Erie Prior Lien a

Question--Your opinion on Eric prior lien
As will be greatly appreciated.-J. V. f.
Answer-There was a time not long
ago when Erie prior lien bonds were
entitled to very good investment
rating. The railroad situation has un-
dergone such a radical change that
those systems Of weaker credit find
their obligations selling on a basis
which in ordinary times would be re-
garded as receivership prices. This
condition has been accentuated to a
great extent by the condition of the
money market. High rates, with con-
siderable demand for new capital, have
made it necessary for investment is
sues to conform to these conditions.
There is still great amount of un-
certainty surrounding the future earn
ing power of the railroads. 1t has been
our opinion. and we have seen no good
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Carrying a Speculative Load

-. Question-As reader of The Tribune
Tor many years I have been Interested
lately IN your financial notes, and I am
writing for your opinion as to some stocks
own and will appreciate your views as to
holding or selling same. First 200 shares
T len Tea common, purchased at IS.
FOR company having earned such profits
ana having the greater part of same not
paid out, why little support 10 stock .
1t was selling several years ago at present
price Second 200 shares United states
t the,l Alcohol purchased at par. Is
4HIlr n sSo gas for automobiles success
In, lnird. 100 Goodrich a So now g. Would
you think best to have United States Food
p go9d fu}u per cent instead and has 1t a
Goodrich. I also own 100 American su.
matra Tobacco, showing q good size loss.
i moula =, you advise averaging? My hold
ihgs all pay good dividends and 1 don't
De!leve an our industrials are going TO
stop earning money. yet one hears moth
ing OF constructive nature now, and it
means means " long long pull to hold on to some
~: ls II going to come back? Also
Answer-If you have purchased the
stocks you name for investment pur-
poses we fear you have not purchased
wisely. All, in our opinion, are very
speculative. Securities of this charac-
Ter are very sensitive, not only to
earning power but to news of all sorts.
Az present the stock market is greatly
depressed, due to a variety of Causes.
such as high money rates, labor agita-
tlons, a strained credit situation,
freight congestion and great demands
tor new capital, particularly by the
railroads, to say nothing of the
enormous taxes, with further increases
In view. Buying is at low ebb, and
we hear all sorts of pessimistic utter
ances wherever we turn. If you would
have your funds we'll invested you
should purchase only those securities
which are not so sensitive to earning
power. Good bonds, not forgetting
Liberty issues, and high grade, sea
soned preferred stocks are in this class.
United States Food Products pays 6
per cent, not per cent. 1t is no less
speculative than Goodrich, as will be
seen from the variation in its earn
ings from one period to another. In
1916 net income was S1,324 900; in 1917,
$4,79O,0OO; in 1918, $1O,O56, 900; in 1919
about S3,000,0o0. In view of this show
ing it is not surprising that the stock
should fuctuate widely. Up to the
present time the Sinclair Oil stock has
not performed in accordance with ex-
pectations of many who bought it en-
Enthusiastically when the craze for oil
shares was on. Recently there has
been a large issue of notes, with the
creation of new preferred stock. We
fail to see that this places the common
in a greatly improved position. Union
Oil has some good properties, but until
the sentiment is greatly schanged, we
do not anticipate any such prices for
oil shares as prevailed few months
ago,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Denver & Rio Grande Adj. rs

ouestion,-Be SO kind as to inform me
interest on its $40. 900 900 adjustment
cumulative Z per cent bondss1 If 50, does
1t not greatly strengthen the position of
the Improvement So to have both the Is
and the refunding 5s in front OF them to
absorb any unforeseen difficulties of the
road? If the adjustment Is are paying
dlVid.nds, can you quote me recent sale
price TT. A. X.
Answer-The interest has been paid
to date on the Denver & Rio Grande
adjustment per cent bonds. Not only
was this interest paid, but it was
actually earned for 1919 The bond is
in position where it is sensitive to
the roads earning power Neverthe-
lass it is prior to the judgment against
the property. The fact of the interest
being paid is of considerable mpor-
lance to holders of the Improvement 5
per cent and the refunding per cent
bonds. The last quotation for the ad-
1ustment rs was 40 bid, offered at a..
These figures are fiat, accrued interest
being included
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23

reason to change it. that the strong
roads are in better position to bene-
fit from the new railroad legislation
than those roads of weaker credit. In
other words, the junior lien bonds of
roads like the Erie will be to a large
extent sensitive to earning power. If
the road is able to operate successfully
under the new act the prior lien bonds
should offer good speculative invest
ment opportunities.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Did Not Get Stock Dividend

Question: bought Studebaker, 10
shares. April Is. for the dividend The
company declared dividend to holders
Of record April 9 and I sold out on the
22d1 of April. The broker now tells me
the Stock Exchange changed the date to
May s. and that l do not get the divi-
dend. Please let me know If such is the
case.-B. A. X.
Answer-You broker is correct.
Studebaker sold ex the 33 1-3 per cent
stock dividend on May 5.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
A pig in a Poke"


Suestion-i own SO shares OF Indian
,' at 40 and also % at 20. Would
YOU ADVISE holding same or selling same
anq oYy'qS Kennecott Copper specu-
you can about Indian Packing.-M. G.
:. Answer-Indian Packing, about which
:. az pears difficult to obtain any in
m f1hrmat .S. was so eagerly purchased
m maon,. ene stock was first hoated, that
that they secured pig in poke. :"
we have been unable to obtain anv
statement of earnings. The under,
t;Ii;e, are supposed to have "made a
Suing No effort appears to be made
to keep stakeholder informed about
operations. The company may have pros
pee poets put we do not profess to know
W wnae tney might be: stakeholder in
nIennecott Copper at least knows where
ne stands, so far as the companv's
operations are concerned. The conn.r
shares appear to US to have fairly we'll
during 1919. o"ihlass
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23

TERED stock is cumulative. there being
Ia per cent due on the issue. It is
snot redeemable, has no voting power
except in connection with the increase
OF preferred stock, but it is preferred
as to assets and per cent cumulative
dividends. The company showed a sub
stantlal increase in it's receipts over ex-
pendltures for the quarter ended jan
usry 81, 1920. We regard the stock as
speculative. The year. 1919 showed a
balance OF only $268,688 after dividends.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23

b o." .,London, 5sAd; New York.
'~' Mexican dollars. 76ha
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
For 100000 Investment

l
ex 0usst, .n "a my property at present:
ekcspt *IO'o00 Liberty bonds, consists of
bout 100000 cash. Please suggest how
TO invest this cash in securities Yielding 7
per cent. Wishing to avoid placing too
n.any eggs in one basket. how many dir
ie Items would you invest this amount
~ una what percentage would you assign
to the different kinds of investment. such
as rails. steeis etc. Nv. r. r.
Answer-it would appear advisable,
we think, to place your funds in four
klnds of securities. namely, railroad
PONDS PONDS, industrial bonds, preferred
would give ample diversfication. 1t is
we'll to have part Of ones holdings in
securities which are liquid and which
at the same time do not fuctuate to
any extent. These will be found among
the best grade of short term securities.
we suggest Is per cent in each class.
Among the following group you should
nnd the proper securities, all yielding 7
per cent or over: Railroad bonds,
Denver & Rio Grande first per cent,
1855; Chicago, Rock Island & Pacific
Southern refunding an per cent 1885;
Kansas City Southern refunding S per
cent, 1850; Missouri Pacific irst and
refundlng per cent, 1865; San An
tonic q Arkansas Pass first d per cent.
1913; St. Louis-San Francisco prior
lien per cent, 1850; industrial bonds,
Computing-Tab Recording 6 per
cent. 1941; International Mercantile
Marine 6 per cent, 1941; New York
DOCK first per cent, 1851; Wilson &
Go. first 6 per cent, 1941; Distillers
Securities first s per cent, 1927: Lip
gett 4 Myers 7 per cent, 1914; Bethle-
hem Steel purchasing money per cent
1885; Western Union collateral Ger
cent, 1898; preferred stocks, United
States Rubber, American Can, Ameri-
can smelling and Refining, American
Woolen. American Locomotive, Crucible
Steel, Pressed Steel Car; short term
notes, Consolidated Gas collateral per
cent, 1925; American Tobacco 7 per
cent, 1928; Canadian Pacific s per cent.
1924; Chicago, Burlington & Quincy
joint a per cent, 1921; Proctor &
Gamble per cent, 1923; St. Paul
Union Depot 81 per cent, 1923.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23
Miami Copper

Question-Kindly advise II the Miami
copper stock selling at about 22 and now
paying dividend of 50 share is to be
considered d good investment.-O. L. y.
Answer-Mining stocks are not in
the investment class. The very nature
of the business precludes them from
that classification. Copper companies
have not enjoyed great prosperity of
late, the result being in many in
stances deficit at the end of the
year. Miami Copper earned 50 share
in 1919, which is the present dividend
rate. Earnings must show consider
able Improvement over last year to en-
title the stock to a good rating.