New-York tribune., 1920-01-21
Rand Mines Ltd.

Question: am inclosinR an ad. about the
tn1ishtan Rand Mines Ltd, which ad wish you t.
per cent annual dividends for many years.
but in one paragraph it says that the return
upon each American share Of $40 would
that the $40 gives the purchaser two and a
half English shares (par value shillings)
and that the 1877 per cent dividend on $40
is simmering down to $500. instead OF what
In other words, wish you to tell me clearly
what the dividend on each $40 share would
amount to a year il the dividends still will
continue to be 1877 per. cent. Maybe
plexea when reading the ad.. which. by the
way, Is the same the published in
The Tribune.-G. A. H.
Answer-The advertisement on Rand
Mines Is perfectly simple. 1t states that
dividends Of 1877 per cent on the shares
outstanding have been paid for the
past ten years. The shares are
Nshillings each. The dividends then
would be 985 shillings. Each Ameri-
can share then would receive 24.625
shillings. There are 20 shillings in a
Divide $3.75 by 20 and you have 1875,
the present value of the shilling Amer
lean money. Multiply 24.625 shillings
by 1875 and you have $4.62, the divi-
dend on the American shares at present
rates Of exchange.
Wants to Play Safe
Question-At my stage Of the game, keep
ing what have in safe places, is my OBJ
Viz: Liberty bonds, United States e Rubbel
6s. American Writing Paper 7-es. Wilson
first s.. Wilson cow IS, Anaconda 6s. Bald
win preferred, National Lead preferred,
C.. R. !. general Is. American Smelling 5s,
U. X. Great Britain 6hs, 1921. Can you
suggest any changes on above. also suggest
some other first mortgage bonds7 Are Wilson
convertible IS safe to old7-F. c. w.
Answer-Your list Of investments ap-
pears to be very good one for tho
man who keeps in touch with affairs.
We see no reason TO- changeat present.
The Wilson convertible 6 per cent are
not, Of course, in the same class az
tho other bonds. but they are amply
secured now. A few first mortgage
bonds worthy Of consideration are
Now York Dock first per cent, Cen
trail Leather first per cent, Indiana
Steel first s per cent, Virginia Iron
Coal and Coke frst per cent, Chicago.
Rock Island & Pacific general 4 per
cent, Chesapeake g. Ohio Consolidated
s per cent.
Inconsistent
Question: have some funds for invest.
ment and seek your advice. as wish an
appreciation Of capital as much a., II moi
more than, income. would like to obtain
list Of railroads which have been through
a reorganization within the last six or seven
years Can you let me have such a list q
W. C.
Answer-Your statements are incon-
sistent. You state you wish to inve st
your funds. Then you state that an
appreciation of capital is Of more i'm
portance to you than the income to be
derived. In other words, you are buy
ing for rise in prices. In that case
you are speculating. 1t makes no diff,
ference either, whether you buy out
right or on margin. W. give you 4
list As requested Of some Of the rail
roads which have been through receiv.
ership within the last six or seven
years: Missouri Pacific. St. Louis 6
San Francisco, Pere Marquette, Chi.
cago, Rock Island & Pacific, Western
Pacific, Wabash, Pittsburgh & Wcst
Virginia and Wheeling 4 Lake Erie.