New-York tribune., 1920-03-02
Partial to Pennsylvania Bonds

Question: have small sum OF money
and wish to make n long term investment ~,
snfe ns possible. Perhaps because some of
my friends have bought them lean toward
Pennsylvania 5s. 1868. In point OF security.
how do they differ from the general Us Of
the Same company? win you kindly let me
know what you think Of both issues and Of
stock in the same company. and also suggest
several other good bonds and stock issues.
railroad and industrial? What the
standing Of Pennsylvia beofre the war? In
case the roads should no into the hands Of
&. receiver come under government control
what would become of such bonds Wv L.
Answer-The Pennsylvania Railroad
general per cent and general 41a per
cent bonds are both secured by the
same mortgage, the only difference
being in the interest rate. They are
both good investments. The stock of
the company is more or less specula-
tive, on account of the uncertainty as
to how the road will prosper under the
new legislation. We believe it will be
able to maintain itself without much
difficulty. Until it came under govern
ment control, the road was a good
Garner. The bonds are probably safe
under any conditions. There is no
likelihood Of rcceivcrship for the road
at the present writing. Other good
stocks are United States Steel pre-
fcrred, Central Leather preferred, Ma
tional Lead preferred, Atchison pre-
ierrcd, Union Pacific preferred Reading
preferred. Good bonds arc Chesapeake
& Ohio consolidated per cent, 1899;
Atchison adjustment per cent, Hi
nois Steel IA per cent and Virginia
Iron, Coal and Coke first per cent.
Brooklyn Edison--U. S. Food Products
Question What, if any, are the merits of
Brooklyn Edison stock? Is it good in
YES tinent at 95? Would appreciate your
opinion on United States Food Products at
present price. Is it good semi-spec ulative
stock?-H. B. C.
Answer-We do not regard Brooklyn
Edison stock as a good investment.
Earnings are not greatly in excess Of
dividends. The stock has, however,
speculative investment features worth
consideration. For 1919 1916 per cent
was earned on it. United States Food
Products is said to be showing large
earnings. The year 1918, the last
published, showed 3l.13 per cent on the
stock. It is highly speculative, Of
course. The company has been retir-
ing its bonds and placing, large amounts
back into the property.
Canadian Municipal Bonds
Question: note that in your replies con-
corning safe and secure investments you
make no mention of municipal county
bonds. At present Canadian provincial and
municipal bonds offer yield of per cent.
Are they not comparatively safe and Sc
cure as government bonds and safer than
the average industrial?- NJ. G.
Answer-We have not suggested Ca
madam municipal bonds for investment
purposes because the average investor
in this country is not familiar with
foreign municipalities. While Cana
dian municipal bonds are probably safe
enough, we believe investors should at
all times keep in touch with affairs af-
fecting their securities. 1t is some
times very difficult to keep posted on
foreign municipals. On the other hand,
the purchase of French, English. Bel
eian and italian bonds aids in stabliz-
ing exchange. This should benefit both
purchaser and seller. The same might
be said of Canada, Of course, and adj
vantage has been taken here Of the ex-