New-York tribune., 1920-11-14
Investment Information

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Working Girls Would Speculate
forms 1"estlonawill ,tdn YOU kindly give me In
preferred. American Telephone and Teie-
graph, Consolidated. Textile Corporation.
working girl and have shares in tho Swvar
ana Telephone and am considering buyinK
1cxtile and steel Would you advise me so ;
-~(M'ss) II. G.
Answer-Thc Cuba Cane Sugar Com
pany has enjoyed considerable pros
perity owing to the great profits made
IN sugar in the last two or three years.
" hat such companies will do in more
normal times remains to be seen. The
company,'s last report. recently pub
lished, showed that the preferred dyi-
dend was amply earned. We do not,
however, regard 1t as seasoned
issue, which is one which has passed
through periods of depression and
maintained its dividends for long
period. American Telephone AMI
Telegraph is fair investment. At
present the company is earning at the
rate OF about per cent, thus having a
good margin over dividend require
ments, per cent. We do not advise
Textile or Midvale Steel Both are
very speculative and sensitive to earn
irgs. Adhere to sound issues, good
bonds or preferred stocks. Do not seek
too high a return on your investments.
Your principal is frequently jeopar-
dized in doing so. Standard Oil Of
New Jersey T per cent preferred,
United States Steel per cent preferred
and Corn Products 7 per cent preferred
are sound investments, in our opinion
Doubtful About St. Paul
Question -! am a clergyman in ad-
some stock in st. Paul common. Would
you advise me to sell 1t at the market
recommend? One-half Of my assets are
In government bonds.-J. X. C.
Answer Much depends upon your
ability to speculate upon the future Of
st. Paul. The road at one time was a
large Garner. Its western extension
cost considerably more than expected
ratio, became poor Garner With
increased rates there should be de-
cided change for the better. We do
not look for a resumption of dividends
on the common stock for some time to
come, however. because we believe
railroad directors will not be in hurry
to declare dividends on issues which
have paid nothing for some time past
To place yourself on a sound invest
ment basis, it would be wise, we think.
to sell your St. Paul stock and invest
the proceeds in some seasoned invest
ment. Such bonds as the Canadian
National Railways Equipment per
cent 1885, guaranteed by the Dominion
of Canada, to yield almost per cent,
are sound, as we'll as the Bell Tele-
phone Company Of Pennsylvania per
cent 1945, to yield close to per cent.
Here you have two issues as free from
speculative features as one could de-
sire.
Desires 6 to Per Cent Yield
Question: would appreciate your rec
ommendation Of one or more bonds matur-
Ing In not less than ten years and pre-
ferably longer. that will give an income
my impression that bonds having a very
good rating will come within these limits.
II I nm wrong I will appreciate you tell
ion OF Westinghouse Electric and Manu-
featuring and General Electric companies
r. S. b. N-N N'''''' 10 eS' '''| '''
Answer-The following bonds are
we'll secured, in our opinion: Ameri-
can Telephone and Telegraph s per
cent, 1916; Illinois Steel debenture Az
per cent, 1910, guaranteed by the
United. States Steel Corporation;
Cleveland, Cincinnati, Chicago & st.
Louis, Cairo Division, first per cent,
1885; Denver & Rio Grande first 4 per
cent, 1886; United States Rubber first
5 per cent, 1947, and Canadian National
Railways equipment 7 per cent, 1885,
guaranteed by the Canadian govern
ment. These issues yield from over 6
per cent to more than 7 per cent.
Both Westinghouse and General Elec-
trio are good earners. Both, however,
are somewhat sensitive to earnings.
they may perhaps be entitled to a good
business mans investment rating.
Has Loss, Hopes to Get Out
Question--Am another one of those
sucke% who arc deeply In and appealing
dn TO yo1 i9r & advice Sufficient to say was
and bought thirty shares of Strombcrg
az $ils. bought at the highest and stiil
haTe haoxaI.. It, | bought on margin through
55 l kept putting up my money until it
t9ok s9oa,, all the money and also the few
stocks l had l took it from the broker
by going to the bank and borrowing, pay
ing Tor 1t outright, and put my stocks No
as collateral against the loan. Am paying
only 6 per cent and not the cali MONEY
rate; Now. what I would like to know is
wouldn't 1t be a better idea to sell Stro,, 10
oerg ana buy Royal Dutch. as that gets up
70 lio-lls every now and then. II Strom--
pere eyer hlts us again 1t will BE when
w. j; bryan is elected President Europe
Is selling Royal Dutch now and 0gurcd
on buying 1t low now for the same price
as Stronberg is now-B. s. A.
Answer-Undoubtedly speculation is
most Fascinating game The reason
why most OF us lose at it is because wc
purchase stocks when they are high
or else DO not take reasonable profits
when they are offered. The pub]ic ;e
seioom interested in the purchase of
STOCKS when the market is down
mere is no incentive. We hear NOTHING
at such times of the enormous business
belng done by various corporations
about increased dividends in store hnt
rather do we hear about rece;versb;ne
ana a1 such talk. People forget that the
stock market is forever trying to dis
count conditions. Look back and Won
VIII see by the records that Wall Street
Is often six months ahead. We at-
tempt to give no advice on specu-
lation. We only say that unless one
can AFFORD to lose he should shun it
like the plague. The Royal Dutch cc;n-
pany is a we'll managed corporation
having interests in many parts of the
world. Whether it offers better specu
lative possibilities than Stromberg we
cannot say. If you believe your ideas
are sound you might play it that way.
II THIS matter worries you however.
would it not be better to sell out and