New-York tribune., 1920-10-18
Babcock & Wilcox Stock

Cuestion-On Tuesday. September 20, an
In your columns advertising the stock OF
Babcock a. Wilcox. I have $4,000 to in
and VIII yeS sye s"ms
vesting in same?-s W.
Answer-The Babcock & Wilcox Com
pany is an old one, established in 1881.
1t has long dividend record, the stock
now paying 8 per cent. The capitali-
funded debt. The dividends for 1913
and 1919 were earned slightly more
than twice over. We regard the stock
as somewhat speculative, as it is sensi-
tive to earnings. The company appears
sound, however, at present. What
future earnings will be we cannot say.
II times are good you will receive good
dividends. If they are bad the divi-
dends may be reduced That is why
we prefer good bonds and good pre-
ferred stocks for investment.
Consumers' Power Company Bond
~ Question--What is your opinion of the
Consumcrs Power Company. general and
year per cent. Series p, dated July /.
1920. selling at 91A to yield per cent p
M. N. Nice.
Answer-The Consumers Power Com
pany per cent, 1880, are subject to
| %%1tO4o,VVV u PI1OT liens. l11S Issue
IS general mortgage, amounting to
$5,O0o,00o. The company shows in
creased earning power, ample to care
for all interest charges, leaving sub
stantlal balance for preferred divi-
dends. We regard the bond fair one.
Brake Shoe and American Wooden
ouestion1Please advise II you consider
q Anna rao 01A
sound as the preferred stocks OF such COM
panies as United States Steel Corporation.
bethlehem Steel. American Car & Foun-
dry, Virginia Carolina Chemical, Pressed
Steel Car and United States Rubber
understand the present dividend rate on
brake Shoe preferred is per cent and
$1,000 to invest and want to put It In
sound preferred stocks.-C. r. and A. a. B.
Answer-Under the old capitalization
of the American Brake Shoe & Foun-
dry Co. ($4,938,200 preferred and s4,-
452,70O common) the company showed
very satisfactory earnings. The pre-
1erred first received 7 per cent and
then the common 7 per cent. after
which the preferred participated in
any further disbursement. Now tho
capitalization is $9,39O,90O cumulative
preferred and 148,146 shares common.
the latter of no par value. Now tho
preferred is limited to per cent. but
tnls issue is as large as the two is
sues were before recapitalization.
What the company will do under this
new capitalization remains to be seen.
It's earnings were sufficient for manv
years to pay Z per cent on it's entire
capital with as high as per cent ex-
IRA on the preferred. We do not re-
gard 1t at present as entitled to as
good rating as the other preferred
issues you mention, nor do we regard
American Woolen preferred as entitled
10 the nigh rating of the others.
Monon Fives of 1866
a., Question-Will you kindly tell me where
the Monon Railroad is located, and also II
1866 as being a strictly secure jonp "u t.rIn U1
investment?SA. ". D. '0"s term
Answer-The Monon road is the
Chicago. indianapolis e. Louisville,
Nlnety-three per cent of the common
stock and n per cent of the preferred
are owned jointly by the Louisville &
M!ashvllle ms and the Southern Railway.
Ihe main line, 289 miles, runs from
New Albany to Michigan CITY. Ind.
The Chicago division runs from State
nlne' ILL.,, to indianapolis, 1862 miles.
branches aggregate 167 miles in In
diana. The trackage rights total 43
miles. The bonds to which YOU refer
are are outstanding to the extent of S.
Soo'oOO. Inc authorized issue is S4O,-
ooo,000, the remainder being reserved
for refunding, $l6,989 ,0O0 and improve
ments, 80 per cent, $18,471 900. There
are $l,200,oo0 in the treasury. The
issue is subject to S15,0 ,00O, 900 of prior
lien, closed mortgage. The road has
operated rather we'll, even under Fed
eral control. The bonds are not high
grade, but they appear to be well
enough secured to entitle them to
B. r. T. Notes Hardly Safe
Queston-Have $4,000 invested in
nirooklyn Rapid Transit I per cent Paid
$lO0 when they were per cent Kindly
Jet me know If you think 1t safe In
vestment to purchase 81 900 more to aver
age the cost M w
Answer-In purchasing BROOKLYN
Rapid Transit 7 per cent notes you are
specializing, for the bonds pay no in
terest at present and the road will
nave to be reorganzed. 1t is still too
early to attempt to forecast the out
come. 1t is very likely, however, that
the situation has been largely dis
counted. Do not purchase them for in
vestment, however.
DIR. Steinmetz-New Haven 4s
Question-Wll you kindly give mo a
! little information regarding tho Steinmetz
ew York Stock