New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-23

ION. however, that the railroads will b.
treated fairly in the matter of rates
mere Is no government guaranty un
der the railroad act. Rates are sup
posed to be made which will return il
the opinion of the Interstate Com
merce Commission 5h per cent on tn,
property values of roads within a Ger
tam group One road may earn NOR,
than 5s per cent, another less. The
payment OF dividends will rest entirely
with the directors of a road. The un,
certainty places the stock of Pennsyl
vania in the speculative class. Al
present prices it yields about 1855 pc,
cent. 1t Is possible for you to pur.
chase good bonds to yield per cent
ana the element of uncertainty would
De 1ar less. Your copper shares are
speculative, about as speculative as
one can find. Anaconda pays 81 a
year and yields at present 7A per
cent; North Butte is not paying divi-
dcnds. The S. w. Straus & Co. real
estate mortgage bonds we believe offer
we'll secured per cent investment.
A Believer in Liberty Bond.
Why 0ue ssa m. you kindly advise me
Liberty bonds exceed ali others in vo,nme
or or trading? Are those bonds preferable to
|
buying my All OF third Liberty 1o9s 81
prices ranging from wartime par to $3.50.
Would It be advantageous to switch over
Is good time to load up further on these
third and fourth issues or would a lower
price probably come by waiting lohEer? !
"oulu appreciate your opinion on the third
and fourth Liberty issues, as to choice in
puy1ng. Tor I'm convinced these bonds offer
buying In $4,000 lots pretty rerularIv hnt
rather hate to see the constant paper
loss I'm piling up.--D: c. W.
Answer-The fourth Liberty AZ per
cent issue is the largest of ali the
governments wartime bond offerings.
That fact accounts for the greatest ac-
tivity in these bonds They are not in
any way preferable to other issues. It
is largely a matter of the length of
time one wishes his investment to run.
The third is shorter. Perhaps it would
be we'll to diversity your bonds. What
the course of Liberty bonds will be we
cannot. of course, tell. We do know,
however, that some day, and perhaps
one not far distant, the price will be
considerably higher. Abnormally high
money rates are the cause of the selling
of government securities. When the sit
uation changs in this respect these
Vanadium Corporation of America
Question: have been advised to pur-
chase Nanadium Corporation stock around
rs as speculative investment Would
you advise me as to the earnings of this
company, what dividends 1t pays and II It
is likely to pay stock dividend? When
is it's next annual meeting? DO you con-
slider 1t fair speculative Investment
A. H. c.
Answer-The Vanadium Corporation
of America was incorporated Septem-
hnr hoc IL
shares of no par value, of which 93,-
1874 shares were subscribed to by stock
holders at S45 share last January.
An initial quarterly dividend of $3.50
share was declared payable April Is.
last, thus placing the stock on Sc
per annum basis. The only income ac-
count published has been that cover
ing the period from September 16, 1919,
to January 81, 1920. This showed sur
plus, after taxes, of S593,328 1t
has been said that the corporations
earnings are now equivalent to $40
a share per annum. We do not
see any indication according to the
balance sheet of stock dividend in
takes place on the second Monday in
September. The stock in our opinion,
is more speculative than is desirable
for investment purposes.
To Pay Dividend Semi Annually
Question: would like to have your
valued opinion as to the safety of Chicago
Northwestern common as an investment.
! noticed that. the company did not pay
their quarterly dividend due April l..
DO you believe that the company intends
to pay the dividend due on July -
have twenty shares of same. Would you
advise TO- sell? Would also like to have
own 81 ,000 worth of bonds for which I
paid around &C. Would you advise me to
sell same and reinvest in the Equipment Is
of the Canadian National Railway which
have been issued u. 3.
Answer-The Chicago G. Northwest
ern Railway has changed its dividend
payments from quarterly to semi
annual. The exact dates have not vet
been decided upon. Probably January
and July l. We do not anticipate any
cut in the rate at present, ebut the
earning power of the road under the
new transportation act remains to b.
determined, and for that reason the
common stock is in too speculative
position for US to attempt to advise
you what to do. Erie prior lien bonds
are not high grade. If you do not
care to speculate on the railroad situa-
ton you would have a far better Sc
curlty If you purchased the new
Canadian National Railway equip
ments. These bonds are entitled to q
very good rating
Great Northern Preferred
Question-What Is your opinion Of Great
Northern preferred at 70. an invest
ment for d small amount Of money? Whv
DO You estimate. that 10 anna y.