davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1920-12-05
Bondholdcr Should Co6Dcrsfe

stion-Eavly this wear. on the advice
or friend. invcs cd several thousa nc.
noiIaTs IN first mortgage As OF the Vermont
central Railroad. Th,-sc bonds maturod
May !. 1920 and although have repeat =
.HIN ma e demand, payment was refused
was offered in exchange per cent de-
oeni res issued By the Grand Trunk Rail
way company, and, as understand guar
ant"ed 10y the Canadian Eovernrncnt
Nurchas'f th"se bonds oonsidora bly, below
lA! nroNlrE they would mature on Nav
l. i'-p and naturally assumed thai With
"r' question they would be redeemed A,
lAr on that date. Tn Ncrr,ion, central
l'st mortgage As a~r guaranteed hv the
Grand IrrnN Railway Compauy.-W. A. N
Answer We are Informed that 90
rer cert Of the ho dors Of the Contra,
Vermont bonds due My I. 1920, agreed
10 tNe exchange Of Securities TIE re-
manning per cent could not foreclose.
Tor 1t takes larger percentages than
than to enforce Foreclosure. You could
bring suit against the "a abroad with
"ha- success we canrot say. We be-
hevc il You fought the ,nattsr YOU
Won be put to considerable expense.
Under the circumstances it seems to
us, you have been offered a very fair
proposition. The new bonds are guar
antecd by the Grand Trunk, which ia
nov controlled by tae DOMINION. Waere
. plan sNch as this is offered the
colder should be willing to do nis
share in the matter
New-York tribune., 1920-12-05
Investment Information
What Happens When Stock Is Split Up

nat Happens When Stock Is Split Up
Qucs,ion'-Win YOU please let me know
what you think ~ Cities Service Bank
ers shares as an lnvostluert'- w. r.
Answer-Earnings of the Cities Ser
wee Company show satisfactory in
creases over the same period last year.
It's oil properties are prosperous and
ITS public utilities in al probability
have been through their worst period.
Nevertheless, the Bankers Shares. each
OF which represents onc-tenth Of one
common share, are speculative. because
they arc sensitive 10 earnings, market
conditions, etc. Therefore they are
rot what we call a good investment.
Recent quotations were Bankers
Shares, 81 q; common stock, zb9 The
only difference between holding ten
Bankers Shares (cost S3175O) and one
common (cost S269) is that the stock
dividends on the Bankers are cashei
and distributed monthly, while those
on the full common shares are not
cashed for the holder; and the Bank
ers Shares may enjoy a closer market.
As matter Of good investment prac-
tlce, however, we are unable to see
where this slight advantage is worth
SIS SO, more than IL per cent. That
is heavy premium for receivin !,
something in cash by the month, which
belongs to you anyhow, instead Of at
the end OF period that cannot be
as much as year Nevertheless. q
large body Of buyers prefer the small
or shares. 1t IS invariably true that
when a stock IS split up the smaller
units sell out Of proportion to the
larger. That is what happened when
American Tobacco common and Amer
lean Tobacco Securities we're selling
together on the exchange, and also
Of the originaD WAS selling with the
old. That people Will pay for what
amounts to the privilege Of holding
ten 81 bills rather than one $40 note
is enough to make a logician (if there
are any left) weep.
New-York tribune., 1920-12-05
Would Switch From Pennsv,vari,

.,.1 Syncstion.l own twenty shares OF Pom
selling and r"inrcstine in either ton she res
.. New york. Air Brake common Or ton
shares OF Pressed Stocl Car common.
onld this weaken or strengthen my posi-
ncial idea of tie financial strength of these
asi two Companies and their dividend rec
org also If. in your opinion. the ures NJ
Gividends y J. H.
Answer~The Pennsylvania Railroad
has long dividend record It is ono
OF The greatest railroad systems in the
world. Its stock is widely distributed
To-day there are moro stockholders
tNaN at any other time in It's history.
The railroad situation has undergone Il
great ch9nee, hut We believe, because
II is rcal ed more and moro By the
neoNlc OF the country how important
the railroads are, that they will get a
square deal. The industrial stocks you
mention are more speculative than
Pennsylvania, because their businesses
are not 50 diversified. The interests
Of the Pennsylvania touch all bust
rcsscs. To be sure. both Now York
Air Brake and Pressed Steel Car have
enjoyed great prosperity during the
war period, while Pennsylvania was
being operated at n loss by the govern
ment. Even to-day. with increased
"a ties, the railroads Of the country have
not , shown IN as we'll as many ex
pected. This is no doubt due to the
TACT that the reports of operations
since the now rates have been effective
have covered only one month. 1t is
too soon TO form opinions. Yet the
law states that rates shall be so fixed
by the Interstate Commerce Commits
sion that the return shall be 5ia per
cent or per cent, in the discretion Of
the commission. on the property de-
voted to operation. Therefore, we re-
gard the stock Of the Pcnns.lvania
Railroad os entitled to bettor r.tir
than either New York Air Brake or
Pressed Steel Car. These stocks are
very sensitive TO earnings, and divi-
dends therefore subject to change. Both
are well managed corporations. The
dlvidcnd records arc as follows: New
York Air Brake, 1999-loO7. 9 per cent
l909-09, nothing; 1910, per cent
l9ll, g per cent; 1912. | Il per cent;
l9l]- 10, per cent; 1915, 1l'a per
cent; 1917. 90 per cent; 1913, 20 per
cent; 1919 10 per cent; 1920. 10 per
cent Pr Pressed Steel Car: 1900, per
cent, ol'02. 4 per cent: 10o9 Der
cent; 1904, 3 per cent; l905Il3, moth
ing; 1914, per cent; 1915. nothino.
1910, 2'a per cent; 1917. per cent:
1918. 7's per cent; 1920. per cent.
New-York tribune., 1920-12-05
Tide Water Oil
Offers Sl0,00o,OOO
Stock to Holders
Right to Subscribe VIII Be
on the Basis of One
Share TO Four Held al
the Par ' aIue Of SIOO
To provide additional working ran

To provide additional working can
ital for development Of source a.
crude OH in Mexico. the Tide Watsr
oll CompanE. member Of The 50
called Standard Oil group. announcea
yesterday a plan for the sale OF an
proXimately SO GOO. coo in new stoc,.
to present stockholders
According to the official statemeu,
the company viii offer TO shareholder.
OF record December l6 99.3l5 share
Of stock at par, $l00 winch Is eQu,va-
lent to - per cent OF tie present
amount outstanding. This VIII enable
the stockholders to subscribe 4o ons
new share for every iour Of the oil,
now he'd. Ihe books VIII he closed
from Dec mber lN to December 20
1he 1s-t to subscribe terminates
on January -. upon which date the
Mrst 70 pr cent payment shall be due
ne remaining instalments of p per
cent VIII he due on April :. July :
and October :. Interest at 6 per cent
a year Will be allowed from their due
dates until October !, 1921. ON all in
staimcnts paid. The new stock vii
participate in dividends from and after
October ], 1921
On the basis Of the recent level at
which Tide Water stock has sold in
the market the rights to subscribe to
.ae new stock are worth more than
$40 d share
A statement issued by r .. Benson.
president, 10 the stockno Gors in cor
nec.ion with the new stock issue saw.
Inc purpose Of issuug This stock
IS TO apply tie proceeds thereof. 'arce-
IS on the cost Of the work your con-
pany has undertaken in order to se-
cure a supply o. Mexican Grade OIL
e have under contract d number O..
very desirable properties in the Ama--
IAN and ZacamiXt.e districts and now
have one we'll nearing the producing
sand and others on the wa
IN ORDER to make our Mexicsn
crude available for use at our Bay
onne refinery it has been necessary
to construct four tank snips at cost
OF over $4,000 600 and walch viii b.
&c lVered to US during the coming
sprlng and sumner. L also IS neces
saTy TO blild railroad and pipe lines
from me led to tie coast and u pr
Vate terminal facilities. The rofa.
cost OF our operations in Mexi can. g.
at present lad out, VIII exceed Sl9
Uy0,OUU.
We have in the recent pas. a.
tended our refinery to enable IL
run $4,000 barrels DAY Of dores..s
er de and lo,yJ0 barrels d4y of Me,
ican crude. This work is practice
complete
New-York tribune., 1920-12-05
FavOrs Conservative Preferred Stocks

Cueetion-I should lilte to invest in ten
shares Of some preferred sock as ctYana-
give mr your opinion OK the National AMI
line and Chcmicoi pr' ferred, which soils
=; about S. also hold twelve shares OF
the Rock Island & Pacific per cent pre-
ferred. Kindly let me kf ow what you
think Os th.s ns an Investment stock.
Would you advise sailing this stock AMI
rating and possibly paying lover divi-
dend ratc2 If so what other stock would
oG s-s.., st 20. =. -.
Answer The National Anilinc and
Chemical I per cent preferred stock is
cXch4ngcahle for Z per cent preferred
stock in the new Allied Chemical and
Uye Corporation. This corporation
embraces, besides. the General Chemical
Company, Barrett Company, Soivay
the preferred stocks as entitled to q
good Investment rating. Rock Island
referred stocks are not high grade,
because it remains 10 be seen how the
road VIII fare under the new railroad
legislation. 1T present dividends are
not being earned, bat, OF course, that
condition may be changed at any time.
We be icVc the raj roads Will get a
square deal. You could improve your
Investment position by changing to
some more seasoned securities. Among
them are Corn Products Refining per
cent preferred, Pressed Steel Car per
cent preferred and United States Eab-
Der per cent preferred. Cuban
American Sugar is speculative. The
company has been a large Garner and
is we'll managed. 1t is doubtful, we
believe, if profits Of sugar companies
WIN be rs great for the next year as
,hsy have been for the last two or
three.
New-York tribune., 1920-12-05
Should Be Careful What Price He PAYS

Letter from MOTION a'' ~ soyG 'yy' Co. Rector
dS s5Tsst ~ Ny ySrN egrnF n,si me cap a0a
Seal Company, manufacturers Of the L
Press.I. cap. FOR s. per share. par value
SO The sample cap inclosed certainly Is
very clever. find no financial statement
or other figures beyond the statement that
lhe capital stock consists Of per cent
and common $1,000, o0o, outstanding 81
$50 600. VIII YOU kindly give me your
opinion Of his proposition2 Is Il not Gus
public rather than the common stock IN
financing o: this kind What IS the idea
OF reversing the process in this case p
Answer--You are making a mistake
which, we find, has been costly to many
o. our readers, namely, considering the
purchase Of stock without knowing
what the market for it is or will be.
As long as you are asking our advice
before you buy, and not after, we hope
it may be of assistance to you for US
to inform you that United States Metal
Cap and Seal common stock is freely
offered in the unlisted market at Sl.50.
The bid is S1.25. That is, you could
get thousand or two shares at the
asked price. Probably if you bid for
more the price would go up. We find
i. difficult to justify an asked price of
par, 9lU, lor the ShareS are Hot paying
dividends and admittedly there is little
equity behind the common stock.
Morton Boyd, when asked to ex-
plain his $40 price Git was $40
when we inquired, not so informed
The Tribune that in his opinion
the company was a good enc and IN
formed The Tribune that in his opin-
ion the company was q good one and in
time the common shares would be
worth a good price He said he had
not underwritten the stock, but just
happened to have block of it. The
United States Metal Cap and Seal Com
pany may make a success and prosper.
We hope it does. But we think $40 is
altogether too much for the common
stock
New-York tribune., 1920-12-05
Heyden Chemical Hard to Gauge

Outs'ion-I would appreciate an exnros-
sion O opinion from lou of Neyden chem
ical Company. Of which ! own several
hundred shares.-F. :. ~
Answcr-We can give you very little
information on Heyden Chemical This
company has published d bA.ance sheet
as Of December 81. 1919 and also one
tor February %, 1920. In both cases
the figures were about the same. I'm
divided profits and surplus were $751;
o99. and total assets and liabilities
$3,247 127. The company was formed at
a time when speculation was rife. Since
then the stock has declined, like most
other stocks thus causing cons idcrable
anxiety on the part Of many holders
The property has value. 10 doubt but
until stockholders are kept informed
as to developments there is nothing for
them TO do but guess.
New-York tribune., 1920-12-05
Rock Island Not Earning Dividends


CN0sl'7n-I nave some \ ana b pre-
f"rr0d stoc.. Of the Rock Island Railway
kindly Civ me your opinion OF this stock
40 you think the dividends are beins
rarn'a by safe margin; Why is it 50
inactive a. J. h
Answer-Accordine to the earnings
statement for September, 1920, the Rock
Island showed q net after 1entals of ST.
1875, lJS, decrease of about S7l0.5OO
from the same month in 1919 For the
nlne months TO September 80 there was
a detlcit of $l,l3l,53i against q surplus
Of S',O22, 500 for the same period last
yer. Perhaps September was not r.
criterion Of what may be done under
the increased rates Therefore it will
be interesting to see what the results
VIII be for October and November. How
ever, the preferred d;vidends according
to these reports, are not being earned.
New-York tribune., 1920-12-05
Mystlfied by Canadian Exchange

Question: have 500 which | wish to
invest in something safe bearing a good
Interest rate. have been advised to
take bonds Of tho National Leather Com
pany Ss due in 1879. W.ll you kindly ad -
Wis" me IN you would regard this Il good
investment? Would also be pleased to
have you suggest something else that you
think good investments for me to make
with this money. have Canadian bond
(Ciiy Of Lethbridge) payable in Canadian
funds. do not understand Canadian cx-
bank and. while suppose II il all right,
would like to know for myself about what
! ought 10 get. ON November "a you quote
Canadian exchange, New York funds in
Montreal. Sl35 pr"n1ium for $1,000. Mon
treal funds IN New York Sis. "a. discount
per $1,000 My coupons are s1l.25. At
rate quoted above. would you mind telling
me what this would amount to in New
York funds? or course ! know the bank
Is entitled TO some exchange d. W.
Answer-The National Leather 8 per
cent bonds are entitled to q good rating
in our opinion. Other good issues are
Westlnghouse 4 ectric and Manufacture
ing 7 per cent 1881, Virginia-Carolina
Z per cent 1892. Based upon the rate
Tor Montreal funds in New York on
November q, the discount would be
1884 on each dollar. Therefore the
discount on your Sl125 would be
S1.33S07. 1t is probable that the dis
count would be more than this, for the
rates published are based upon large
amounts
New-York tribune., 1920-12-05
Admires the Name of Remington

Ouest!on--Can you tell me whether the
Remington of the Remington gun and
typewrit er IS connected with the R,rning-
,9n fhonoera2h Corporation? II the
heminEi ors are connected with 1t IL would
be worth while investing a little in It,
would 1t nol?--J. " T.
Answer-The Remington in the pho
noewph company is son Of tnc aon-
tleman who made the typewriter ia
nous. and grandson Of the rifle man
al c,uver Hereditv thus attenuated is
q thin thread on which to hang your in
vestment hopes. After the company is
pu:acturing and selling phono~
graphs st profit the stock may be-
come an investment
New-York tribune., 1920-12-05
German Bonds Compared to Marks

Question: would greatly appreciate
prices from the STANDPOINT or a specuia-
ton. Would you consider them superior
to German government bonds H y.
Answered. rman bonds probably are
superior to German marks as q spccu-
lation. for the bonds run to a time
when the mark will perhaps be worth
moro than it is now, and there may
not be so much danger Of capital re-
duction in the bonds They viii be
payable in the mark as it exists at the
maturity OF the bonds. On the other
hand, there is a German tax on bend
coupons. Both ventures, marks and
German bonds, are gamble under
present conditions, in our opinion.
New-York tribune., 1920-12-05
British Banks Combine

An important change in British bank
ing facilities Of special interest to the
Scandlnavian countries is the amalca-
nation of the British Bank OF North
ern Com merce and the old established
nrm OF {. j. Hambro & Son, both OF
London. the new concern to he bnorD,, ~,
as Nambros s Bank of Northern Co,,
merce IL has capital OF {. GOO .0oo
The Lsndmandsbank, the largest Co.
penhagcn bank, has close connections
with this group In London and assistr5
materially IN eifocting tho combination
New-York tribune., 1920-12-05
Funtn Allegro Has Been ProsDeroux

t@ueston-I am writing for YOUR advfco
regarding Pun'a AlleGre Sugar under
S'ana s the COMPANY has reliroa is re-
ierr'd stock and all bonds within a few
ycars De Nou not think It a Nne PROPOSE
ton a. around $50 share. ana has not
thu common stock bright future -
j. q &.
Answer-Thc Punta Allegro Sugar
Company called for payment on Jrn.
uary l 1920. all its funded debt. There
vas also outstanding $1,000 Of ore
terrcd stock. which was retired in Sen
tembor, 1919. A new issue OF 81 600 600
per cent cumulative preferred was
authorized, bur this has not been is
sued. There is now OUTSTANDING $1l
l8c 700 common stock, par $50 This
company has enjoyed considerable
prosperity for the last three vcars
Inc earnings for the year ended Mnv
81. 1920, showed about s25 sharo
earned on the common, or at the rnfc
OF bo per cent The sugnr growers
rave sold their crop for the wear. and
1t now remains to be seen how thov
VIII faro since the price of SUGAR hos
declined so much. The stock undouht'
cdly has considerable value. but il
must be considered spcculati7o because
II - 80 sensitive TO earnings. The
stock now pays SS year, which rotn
compares with So year nrcvions w.
October, 1920. On May 81. 1919 tho
last balance sheet published. the nct
assets applicable to the stock vera
the equivalent Of $3.50 per share Of
500 par value.
New-York tribune., 1920-12-05
Consolidated Textile Income

The Consoiidated TeAtile Corporate
reports tne surplus, after charges BIZ
before Federal taxes, Tor tie perio
from january 70 August 2s. amdunte
TO $3.2sS.10l. equivalent to Sl2so
share on 257,63l snares Of cap!ta
sock outstanding. Net profits wer
5000 sos, wnl.e the profit and oss sur
p-us for the period showed S2,8s7 ,252.
New-York tribune., 1920-12-05
HOLIDAYS Fhis Week

Monday In Queensland
Tuesday In Cuba.
=. y e4Hesday In Argentina. Alstri
Bolivia Brazil. Canada Quebec
canary Islands, Chile. Colombia. cost,
i.ica. Dominican Republic. Germany
Duatemala Hungary, Mexico, Para
quay. Peru. Spain.
~ Thursday In Brazil State of Nat
Grossol.
New-York tribune., 1920-12-05

Questions Of geoevci interest to sr-
restors terU be anspered IN thus col
unsn, IN ach'ch case oniy INITIALS .0,il
be used. Diners ,OW be anslUered bt
mail ADDRESS all inquiries, ,noIos-
ting stamped, addressed envelope, to
Financial Eattor. The Tribune, lsl
Nassau Street. Neto York CITY.
New-York tribune., 1920-12-05
Reorganization Is Still in the Air

19uestion-WiN you kindly give me soma
Information as to when the Chicago d
Las''fn illinois Kaiiroad preferrad cquita
hl' rust certincatcs are to TOO acted upon
lay the receivers OF that road I have 100
and am unable TO get any Information
about tnern.-l Mrs.) r. J. c.
Answer-There have been no state
ments regarding the reorganization OF
the Chicago Eastern Illinois Rai.road.
These are not however, very propitious
times for reorgRnizations. 1t is very
likely, however, that plan will be
submitted before long. Beyond that
we can tell you nothing.
New-York tribune., 1920-12-05
GNcrs to Paw for q X

Cuestlon-I am WORKING for the North
way Motor Corporation. which has its ex-
ocutiNe Offices at Boston and its manu-
featuring plant at Natick Mass l am
selling securities for these people. aud
would Ike 20 have some Information con
ccrnlng their mar AEc,ncnt, how many
trucks thcy pat out each day and IL you
think It good investment In their stocls
What want the most Is written state
mcnt from you that I can show to ny
prospects. am willing TO pay extra 1or tho
statement-R. J. Y. H.
MISUNDERSTANDING Motors stock IL
too speculative for investment. 1t has
not proved lis earning power, and we
see nothing in the automotive trade
situation to encourage stockholders in
a new and untried company when some
OF the older and stronger corporations
are literally struggling for existence.
We have no means Of judging the man
agemcnt except the flamboyunt and ex-
traVAgant circulars which are issued
TO sell the stock. If you are selling
the shares YOU are decidedly remiss in
your Obligations to your prospects un-
less you have positive and conclusive
knowledge that the company is well
managed The Tribune's opinions arc
not for sale, but we find it impossi Bile
TO feel anything but amusement at
your naive offer.
New-York tribune., 1920-12-05
J. =. Morgan Returns

j. p Morgan. head Of tho Morgan
erm, who arrived yesterday on Tho
Celtic from England. is expected 20 be
a. his desk again te~morrow. Mr. Nor
gan nas been abroad moro than three
months. having spent d part Of this
,inns hunting in Scotland
New-York tribune., 1920-12-05
Answer Ship and Com

merce Corporation has outstanding
$50, lS3 shares of stock Of no par value
The last published report of earnings
was for the period from July 1S, 1919,
to December 81. 1919, when the equiv
alent of IT cents a share was earned on
the 52l ,005 shares then outstanding. 1t
viii be Interesting to read the report
for 1920 1t must show great improve
ment, in our opinion, before dividends
may be expected on the stock. We re
gard the issue as speculative. We can
not attempt to predict the attitude of
directors toward dividends. Stude-
baker has shown a falling off in earn
ings during the last three months re
ported, but the per cent dividend was
amply earned. The directors may be
criGcd largely By their forecasts of
iutVrc business As far as dividend dec
aratlons ere concerned. For that rea-
son we DO not regard sucn issues as
Stud baker common stock as good in
vcstmentS.
New-York tribune., 1920-12-05
45, 600, 900 More Gold

Another shipment of $4,000 $50 OF
hrush Treasury gold arrived here on
re r"isi" yasterday- rb.e brings ,or
>ta H. f.. rHr-r. <rn4t la4o.
w " approximately s25.Ooo,o0o.
New-York tribune., 1920-12-05
Would Invest in British Bond

0uesrion--plcrsc lot me know where =.
can bay British bond paying about 7 per
cay 10 mature In ten or tn,lya years, and
also what they arc rated at Also say
who're | could purchase few shares OF
National Biscuit Company stock. want
It. spend about $1,000 on the British bond
New-York tribune., 1920-12-05
American Shin and studebaker

QuestIon-What Is the capitalizatIon o.,
American Ship and ComnlNrce7 IL there
any prospect in sight Of It's earning ca
pacity becoming large enough 20 warrant
o dlvidcnQ2 Would you consider 1t a good
speculative issue What are the prospects
for a continuation of the Studeba6er diVi-
dend9 Do you consider 1t safe invest
ment? r. w. G.
New-York tribune., 1920-12-05
Answer-The United K,rrdo.

Answer-The United Kingdom Of
Great Britain and ireland 5x per cent
bonds due 1929 sel for about 1890 and
accrued interest since August l. They
yield about Z per cent. The bonds are
payable in United States money in New
York. National Biscuit stock. as well
rs the bonds, may be purchased through
any New York Stock Exchange firm sd-
vcrtising in The Tribune.
New-York tribune., 1920-12-05
Would Read Baldwin's Future

Question-Wu you please inform rne
about baldwin Locomotive preferred and
common' Is this company prosperousr |
have seveFai shares of the common.---H.
Answer - The Baldwin Locomotive
Company is a well managed corpora
ton. 1t has shown satisfactory earn
ings up to the present time. What
future business Will be we cannot at
tempt to say. The preferred stock is,
IN our opinion. q safe investment, but
the common stock is so sensitive
10 earnings that we regard II as very
speculative.
New-York tribune., 1920-12-05
Answer There are two issues Of

Norwcg an 3 per cents. One is the
conversion loan Of 1886 and the other
the conversion loan Of 1888 Both are
Dayab 9 in london IN sterling, free Of
Norwegian taxes. Norway has always
enjoyed good credit. Her people are
thrifty Based unon these records. we
believe. FOR vour purposes, the bonds
offer very attractive investment op-
yOrfunitinc