davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
How to Trade in Wheat on Margin

!, Suestion--Will you please explain- 10 mo
on ,, oa'e goes about buying wheat options
~, ~ gins, FUTURES or whatever Ii Ia
called For instance il bought 900
s sin S or wheat on a 20 per cent. mar
broker? II / bought the Wheat " ON 'n ne
pe, Sent margin to say $3.50 per bushel
w ss az X mean that II wheat dropped under
To- g1no Wn,Ie option was in force. l would
n ,oSe "hat | had put up? on the other
rhaso Would ! make all above the pur-
instruct broker to sell when it rs s'iVu'1
certain price, What do brokers charya
one en-. b bniE5n gn on martins? How long can
II bought now, how long could | hold
'e1o'' ADVISING broker to sel?-l. =. w.
Answer-The price of wheat is so
high that brokers will not, we under
stand, purchase options or less than
40 cents to 50 cents a bushel margin
mus, II you purchased 5000 bushels
You would have to put up from $4,000
to 5000 margin. 5000 bushels is the
unlt OF trading. If you placed $500
wlth your broker and purchased 5000
bushels at $3.50 you would be mar
gined down to 50 bushel less com
mission and federal tax of . cents for
every Slo0 of value on the sale. II
the price rose to So and you sold at
that prce you would immediately re-
ceive the difference, $4,000. plus the
$4,000 margin less commission and tax.
me commission is $12.5O per 5000
bushels for the turn Cloth purchase
and salel. If you purchase a December
option, the wheat may be delivered to
you on any day during that month. 1t
might be the first day or it might be
the last day. That is chance the
purchaser takes. If you do not wish
the spot wheat, and you have no profit
you should sell out on the last dav of
the preceding month, and if you cared
to you could purchase an option for
another month. The broker would call
upon you for further margin if your
account was not in good shape.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Getting Tired of Erie Common

,!uestion--We have considerable rr,o
lN"l'road stock which has been held nv ia
iiaa ioI years 1t was bought with the
.aa'r -, speculation at time when Erie
,vnuI1 TO nave better future. How
n"ni YOU consider change to Chicago
g. So ia 1. ~ Pacific common. ST. Louis
X X can francisco common or bonds of tho
latter named company Mt 40? Have benn
~ ISL , TO buy bonds of st. Louis & San
FRA nclsco. Would one be rislinp safat,.
70 sell out his Erie and buy these hondso
ooplc seem to think Erie has a hard row
NJ n"e anead of 1t. Due to the fact that
~, &c a. tue present time is bought by no
one uniess they intend to speculate II
gems the only way out is to speculate
Answer-lt is our opinion that there
are many issues of stocks and bonds
oiferlng better speculative opportuni
Ties than Erie common stock. As YOU
say no one buys Erie for any reason
other than speculation. We do not be-
lleve your position would be weakened
by making change. and it might be
greatly improved. The St. Louis g.
San francisco adjustment 6 per cent
ana the income 6 per cent both nav
thelr interest, and earn it. too. Even
me Junior lien bonds of the Erie pay
thelr interest, and while it is not
actually being earned by the road, the
new rates should cause great change
Tor the better. You might consider
some or the bonds Of the New Haven
road also, as we'll as the Baltimore g.
Ohio.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Desires a l0-Point Profit Soon

Quesstion-some time ago I purchased
at l2i,a and am stnl holding the same,
Are the possibilities Of this stock such
that J can expect ii TO go over % in the
next few weeks? l purchased it outright
for an investment, expecting 10 hold it
for a few months. What do you think
Of Columbia Grapha phone Company STOCK ?
invest in the concern. but I am rather
puzzled at the depreciation of the stock
value. What are the Possibilities Of In
terna tional Nickel stock asa seni-specu-
lstiVe investment? what members Of
the New York Exchange who sell stock
on the partial payment plan would
you recommend u. T. X.
Answer-St. Louis Southwestern
should benefit from the increase in
rates. What the stock will do we
cannot attempt to say, as we make no
forecasts. Columbia Graphaphone COM
mon is speculative, being very
sensitive to market conditions and
earning power. We do not recommend
its purchase for investment. Interna-
tional Nickel is said to be in good
condition. The stock acted well dur
ing the recent depression in the mar
ket
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Studebaker and Rubber Preferred

Question Kindly advise me what rat
ings as investment you would give Stude-
baker preferred and United States Rubber
per cent preferred Both these stocks
give a high return if the security is sound
5. r. e
Answer - Studebaker Corporation 7
per cent preferred stock, of which
there is outstanding S10,260, 900, has
shown the equivalent of from 1925
per cent, earned in 1911, to 300 per
cent in 1919. For the six months ended
June 80, 1920, the net profits after
taxes were S7,479,O57 Dividends on the
preferred stock for the period amount
ed to $3.50 100, which was earned over
twenty times. OnDecember 81, 1919,
the net tangible assets applicablep to
the common stock amounted to S49,-
35S,306, or $109.68 share Based upon
this showing it would appear that the
preferred stock is entitled to a very
fair rating. United States Rubber s
per cent preferred has shown from
1886 percent in 1911 to 28.13 per cent
in 1919. Profit and loss surplus on
December 81. 1919, was $52,31O, 1853, an
increase of $10,500000 over the previ-
Gus year. We regard the preferred
stock as very fair investment.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
General Motors

Question: own some General Motors 6
per cent debenture stock which under
stand ranks equally with the old 6 per
cent preferred but is superior to it as to
voting rights and redemption privileges.
my, then, should it sell at a lower
price Do you not consider the per
cent debenture stock good investment
tbought at 70) ? Which is the better Sc
cured from an investment standpoint
American Locomotive or Baldwin Loco
motive? I own some Austin Nichols 7
per cent preferred and Durham Hosiery
per cent preferred, and am thinking of
increasing my holdings in these. Your opin-
ion in these. from an investment stand
point, will be appreciated.-J. l.. II.
Answer-The earnings of General
Motors are ample to care for dividends
on both the preferred and debenture
stock, with large surplus besides.
We regard these issues as very fair
investments at the present time The
preferred stock probably sells higher
because there is a comparatively small
amount of it, and it is largely q case
of supply and demand We do not
regard American Locomotive or Bald
win Locomotive common stock as good
investments Both are sensitive t. earn
ings, which huctuate over wide range
Baldwin has large surplus which may
be distributed to stockholders some
time Both Austin Nichols preferred
and Durham Hosiery are fair invest
ments, in our opinion.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Liberty Bonds for a Woman

- Quest ion--What do you think about the
Vile, Ky? Is 1t a safe Investment for q
Woman? have $1,000 to invest. Would
IKE to get Z or per cent on 1t. Also
what do you think OF Middle States Oil,
as ! see by the paper the shares have
dropped In price Mrs. c. j.
Answer-We can obtain no indie
pendent information regarding Good
win Preserving Company. Do not touch
OIL stocks. They are not for investment
Remember that it is very easy to lose
money, but it is easy to keep it if you
invest in the proper security There is
only one issue for you to buy, in our
opinlon--Liberty bonds. There is no.
thingbetter If ever YOU need some
money you can borrow on them readily
as the banks will always loan on them
Some day Liberties will be selling con-
siderably higher, and then you will be
glad you bought them.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
American Brake Shoe Preferred

Question: would appreciate an ex-
preston OF opinion from you regarding
American Brake Shoe preferred.-E. ~ X
Answer-Undcr the decentralization
Of American Brake Shoe & Foundry
Company the preferred stock was in
creased to 900 shares, par 500, and
the common to 5000 shares of no par
The outstanding amount at present IS
$500 shares preferred and 48,l 46
shares common The net income for
the quarter ended March 81, 1920, after
interest and taxes, was 1924, 1896. The
preferred dividends amount to $164,-
$40 per quarter. Thus at present rate
Of earnings the preferred dividend is
being earned by very ample margin
The company has always been con,
servatively managed, and we regard
the preferred stock as a good IN
veStment.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Deficit in Alaska Gold Mines

Question: am interested in Alaska
Gold Mines, traded In the New York
Stock Exchange. Please furnish me some
INFORMATION about this stock. l now hold
500 shares at 81 per share.-B NJ.
Answer-Alaska Gold Mines Company
stock is a speculative, non-dividend-
paying, mining issue. Par value is $40,
and the company has shown a deficit
since 1917, when earnings were at the
rate Of six cents a share. There are
outstanding S2999,S00 debentures upon
which interest has been defaulted.
There is S7,5OO,OOO common stock out
standing. Present economic conditions
offer little encouragement for share
holders, in our opinion. Book value
for the stock was S23.78 a share in
1919. but that included S14.371 900
mining grounds, titles and rights, and
book value means little when, as in
this case, the properties cannot be
made to earn anything.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Good Security Back of PETERBOROUGH So

Question: note that Won have recon,.
mended lnterborough Rapid Transit s per
cent bonds at present price as an unusual
Won n'ssse ' I'm men. opporIun!tY WI
bond issue and Just how it is secured? Also
the tax valuation placed on tho security
horo,,sn p s%H''ItlS neheIed that inter
watc~ed. II THIS is true do yon tbini' fhat
the increase in value Of New York real
estate has equaled the Watering lap
aro @,,et poh's' as a'ernng l93i
IS bona and the bond and ntere .st: rs ~
payable in British money or in American
money at Tho preyailing rate Of exchange
IS '''@' correct IL Nj H.
Answer Interborough RAND Transit
Company first and rofundjnr ; per
cents. due January 1866 Of which
there are $3.50 5S5 600 OUTSTANDING and
S521S2. 600 pledged under the. ner
cent notes of 1921. are securSa nv =
first lien on loasehold interest Of the
company in the broadway and Lenox
Avenue subwavs and the Rrooklvn sub-
wav. which leases extend with renew
ais beyond 1879 and 1860 rosnectivolv
and in the gqevear lease Of the Man
haitian Elevated They a~e further CO.
cured bv first lien on contracts with
the CITY nrovjdinr for the onera+ion of
147 additional miles Of subway lines
and 2l miles Of elevated lines Thev
are further secured bv a FIRST lien on
all power houses and eouipmont used
in connection with the operation Of the
subway. but subject to the lien of the
city to assure porformance of the terms
of the lease. Under the contract with
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
American International Sneculative

Question-Not very long ago YOU spoke
Mou OF the securities Of the American In
e.rhational Corporation. Recently the
s siIoha, OF this company have dropped CON
many other industrials DO you know of
any special reason for the severe decline?
l nave 100 shares, bought at 90, and would
now or hold on.-W l.. c.
Answer-We do not recall having
spoken we'll of American international
stock from an investment viewpoint, in
this column. AS a matter of fact, we
have pointed out on several occasions
that this stock is highly speculative.
The directors may purchase and sell
securities of all sorts. We advise
people not to purchase it for invest
ment
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Vivaudou Is Speculative

Quesuon--Ktndly give me some informa -
ton regarding Nivaudou stock, | am
concentrating buying some shares, having
heard il was AL and would like further
information on same Mrs.) A :.
Answer We do not regard Nivaudou
stock as an al investment by any
means. The company was incorporated
a year ago with 900 shares of stock
of no par value Quarterly dividends
of so cents share were started Janu-
airy 2, 1920 The net income for three
months ended March 81, 1920, was
s27S,0S2, not quite dividend require
ments.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Youth Requires a High Return

Question--Can you suggest any stocks
that are reliable ard a fairly safe invest
ment that have been paying a dividend
of from So TO SIS quarterly on 4acn
share of stock held by the individual?
Also do you know OF any stock that sells
around $50 SIS that pays an unusually
high dividend and is considered reliable?
certainly would be very grateful to You
10 invest some money that will net me a
considerably larger return than The in
trying TO make some sort OF start in
life, ana as I am totally ignorant so far
the financial world is concerned
thought of appealing to you for some real
honest infornation.-H. V. p.
Answer-lf you purchase the kinds
of stocks you appear to be anxious to
know about, You will be entering the
speculative field and thereupon find
1t necessary TO use your wits overtime
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22

The approximate output of our factory
in 1919 was 100000 hats Our estimate
for 1920 is 100000 hats In each of the
years 1917. 1918 and 1919. our sales have
been in excess of 50, 1000, 900 We estimate
that our sales for 1920 will be Sc, 500, 900.
Our plants cover approximately two
city blocks-over 300, 900 square feet of
floor space, and employ approximately
1000 people.
Our concern is one of the few in the
United States that is a complete hat
manufacturing unit, handling every pro-
cess from the importation Of the fur to
the finished hat.
The corporation and it's subsidiary
the Eagle Felt Works 49, does a large
volume of business with the important
jobbers and retailers of mems hats
throughout the United States Our export
business is with South America, Cuba,
Mexico, Europe, Australia and Japan.
Net tangible assets as of June ii, 1920,
exclusive of good will, available for the
81 900, 900 preferred stock now outstand-
ing, amount to s1,775,o11.11. Net quick
assets, after deduction of all liabilities,
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Has $1,000 to Invest

Question: have about $1,000 that I
would like to invest in good, safe bond
give me Information on the following
as | am a beginner: Illinois Central first
per cent, Liggett's international per
cent preferred, Erie Railroad, American
Drug Syndicate and New York Central.
B. Nee.
Answer-Thc securities you mention
include many kinds. There is no better
bond than the Illinois Central first
per cent. AS a matter of fact, it is
not necessary for you to purchase q
bond of such high grade. They are
difficult to procure, besides the new
Liggetts' preferred appears to be a
good stock, although it is not season,
ed. The company's earnings are good
and it probably has a good future. We
DO not advise American Drug or New
York Central for investment. Both
are toe sensitive to earnings.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Chooses Good Securities

QUESTION have about IS. 900 to invest
and am thinking Of the following: Prov
lnce OF ontario - per cent, due 1929 ;,
United States Rubber ~ per cent, due
1880; Pan American Petroleum and Trans
port, due 1890; Argentina Republic, due
l94o. DO you think that these a safe
investment or are there others in your
judgment better?-F. s. T.
Answer-Your choice appears to be
a very fair one. The Argentine bonds
are, of course, foreign security, and
you should at all times endeavor to
keep informed on events.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Consols Have No Due Date

Question-In re British consols you say
"The cOnsols do not mature" How and
when. II ever. does the purchaser obtain
the face value of these securities? If
the face value is. say f100, I suppose
there is a promise on the part of the gov
eminent to pay the holder 600 at some
time or another. Is this done by annual
drawings or how?-A. NJ. II.
Answer-British consols have no due
date. They are redeemable after April
5, 1923, in such order and manner as
Parliament may direct at par This
is, then, a government option solely.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Denver Bonds Are Attractive

Question-Havine about $1,000 to invest
request your opinion as to the safety
Of investing in Argentine government
per cents. How would this investment COM
pare with Denver x Rio Grande As? DO you
not consider that Denver & Rio tiranho
regular SIS, now selling around A. are safe,
in view OF recent railroad legislation =
c. IT. W.
Answer-The low rate for sterling
causes the Argentine bonds to return
a good yield, provided sterling returns
to normal. Argentina has always en-
joyed good credit. The purchase Of for
cign bonds is always attended by a Ger
tain element of risk, such as posi-
Bile political complications. 1t appears
rather remote in this case. For real
investments we prefer the Denver 4
Rio Grande A per cents, 1880. They are
a first lien on ! $50 miles and yield
over per cent to maturity. The re-
funding per cents are more specula-
tive. They are third lien. The price,
however, is attractive.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Liberty Bonds Are the Best

r,. ouestjon - What is your opinion of
french, 1917, 4s and Italian treasury
5s three,year. as an Investment. at the
present low price of exchange? have
little money in savings bank and
only draw per cent on it. which l
would like to invest something that
would return q little more What would
You ADVISE as good investment? -
II. G.. \.
Answer-If you consider investment
IN foreign government bonds you
should remember that there are always
chances of political complications.
While both French and Italian govern
ment bonds appear safe, the situation
in Europe is still somewhat chaotic.
Your funds have been safely guarded
by being in a savings bank. If you wish
to increase the yield why do you not
purchase Liberty bonds. There is moth
ing safer and the yield is over per
cent. They are readily salabe at any
bank, and will be paid at maturity
just as sure as anything in the future
IS sure.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Favors Utility Bonds

uestion-Would you advise purchasing
sppi River Power first Sc. 1851: Idaho
Power Company first 5s. 1o47: Duquesne
Light first 6s, 1919? Kindly give me your
a e. e.
Answer-All the bonds you mention
are well secured and entitled to good
ratings. There is very little choice.
1t depends upon the kind of property
you desire to invest in. Power com
panies are said to have bright future,
provided they are we'll managed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
c., B. & q. Fours of 1921

Question--Do you consider $4,000 or
1900 Chicago. Burlington g. Quincy gen
for a business man with, say 500. to
invest r. a.
Answer--The Chicago, Burlington g.
Quincy joint per cent guaranteed by
both Northern Pacific and Great
Northern offer very attractive spccu-
lative investment, in our opinion. We
use the word speculative because it re-
mains to be seen how this issue will
be refunded at maturity. 1t is our
opinion that it will be successfully
financed.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Louisville Gas and Electric Ga

,ouestion-Kindly give me your opinion
of Louisville Gas and Electric Light 8
per cent bonds just issued Also, do you
think Japanese bonds a good buy at pres
cnt prices? Also, how about the City
of Paris? Don't You think Harding 5
election will make bond prices in general
go up?-B. 3. X.
Answer-Louisville Gas and Electric
per cent bonds are not a high grade
investment, in our opinion. In all
probability they are safe enough
for one who can afford to 90 out
side of the high grade issues now
and then. But if you cannot afford
to take any chances we believe you
should look elsewhere. Japanese bonds
appear attractive. Bear in mind that
there are always chances Of political
complication in foreign lands. The
same may be said of Paris bonds. We
believe the election of Mr. Harding
Will be of greater benefit to the coun-
try than the election of his opponent.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22

If you are wise you will place your
funds in good securities and not bother
about the unusually high return. Don't
speculate until you have accumulated
enough so that you will not feel the
loss. You must remember that the
higher the income on a security the
greater the risk, as a general rule.
Our advice to you, if you wish to beat
the bank rate, is to buy Liberty bonds
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Investment Information

Questions Of general interest to
investors 'cill be onspered in this
eo.nsmn, IN achich case only initials
sofa DC used. Others ,ctli be an
sioered by mail. address all ,n-
qn'raes, Enclosing stamped, ad-
dressed envelope. to Financial Editor,
me tribune. 154 Nassau Street, NctU
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Why Allis- Chalmers Pfd. Declined

e,uestion-In April. 1919. I bought ten
shares Of Aliis-Chaimers preferred at 30 -
Since then IT has declined steadily to H.
that other preferred stocks in the same
class have suffered Can you explain this
poration common since 1916. when bought
It at IS. and to-day 1t is quoted 1922, pay
Ing 81 per share year. Would you ad-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22

good example. 1t paid II per cent
one year recently, now it pays per
cent. Burns Bros. is not an invest
ment issue, in our opinion.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22

other than funded debt, amount to
$1,326, 720.67.
Each share Of preferred stock is con-
vertible at any time into two shares of
common stock. Earnings on the common
stock for the 41a-year period were 1874
per share; for the 11a-year period $1247,
and for the current calendar year are es-
tiNated at more than $140O per share.
The amount of outstanding common
stock is $4,000 shares of no par value.
Both the preferred and common stocks
are listed on the Detroit Stock Exchange.
Dividends payable quarterly. Exempt
from the present Normal Federal In
come Tax.
Appraisals were made by the Standard
Appraisal Co., audits by Warwick,
Mitchell & Company and examinations
by our experts. Legal proceedings in
connection with this issue have been
approved by Messrs. Chadbourne, Hunt
& Jacket.
For further details regarding the bust
ness and the safeguards of this issue Of
preferred stock, 1 refer you to my letter
of August 18th, 1920, which gives full in
formation"
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Answer-If the woman in question

could see the many letters we get from
persons in just her position who have
lost in oil stocks she would not be
tempted. Liberty bonds are the Sc
curity for her. They pay good in
come return and will stand like rock
for her in her old age. Selling oil
stocks to persons in her position is so
contemplate that it is voluntarily for
hidden by many Of. the stock iobbers,
even the hard boiled ones. We suggest
that you try to get an interview with
the salesman
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-22
Oils Too Risky for Savings

Question--A scamstress in my household
has been asked by stock salesman to
invest in some oil shares. She has a few
hundreds saved up against the day when
her touch may not be deft and her eve
not so keen, perhaps. ] have tried to
persuade her not to buy the stock, because
1T Is too risky. but the salesman persists
in trying to get her to buy She is not
considering tho shares because she is
greedy for a big return on her savings
but because she believes all the good
things she hears about this stock What
can | do? hate TO see her lose her
mOncN.--rr. Z.