New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-16
Woman Is Urged to Buv Oils

ouestion- Kindly give mo your opinion
a a1sa ain the North Texas OH company.
OF mine whom j know to be an honorable
~ pan ,aa,,,t and who is not broker, urges me
now sei,,r 20 insest in the former stock.
n I Lloyd Pettigrew g. Meyer. of 80 West
Torly-third Street l am a woman and
l have no money to gamble with. am
ADVISED that tho stock viii soon sell at
so or more. Has the stock any merit?
s are the asseta OF tho company. which they
opsn to such stock Mrs NJ ai.se C. q. '''ure
Answer-If you have no money with
which to gamble do not purchase oil
stocks: We have no independent in
torn'aTon on North Texas Oil or
ogallala Oil. They may be good prop
erlies, put OIL production is about as
unceltaln business as one could find
BESIDES, we do not like the 'idoa If
your being told that the stock vii; III
soon advance $45 a share. That savers
700 70 much of the stock jobbinr game
ouy good stocks and bonds. You NAV
not derive much excitement. hut vo,
vii probably keep your state of mind
IN better condition. '''0
Is. 0. Southwestern Bonds
,r Suestion-I noted with interest vour
Oh I"es 10 an inquiry about Baltimore &
INC Sa southwest division, first 3 u Der cent
tha You speak of these bonds coverinr
mean nod that end OF the line. Does that
Of the syste' oney ~, nave to do with part
general Baltimore e. Ohio stock? In ~ ot i hnr
c ~uIts now are they cushioned by other Sc
pre it t bsbi nl the the Baltimore & Ohio
Guilty, and are there any Of the o othar
h hoht, OF the Baltimore & Ohio system
somewhat naturally am entitled ~ in' ae
o or tne security of a bond by the number
or or other securities which lie between It
wouid you rank this bond. as compared
win Missouri Pacific SIS of 1929. as the
s sncer; or 4I is there practically no differ
improvement 5s?-T. A. X
Answer-The Baltimore e. Ohio South-
western Railroad is operated by the
baltimore & Ohio, all the stocks and
ponds being owned and deposited under
the Baltimore & Ohio Southwestern
per cent mortgage. Not only is this
bond followed by the two classes Of
stocks of the Baltimore & Ohio Rail
road companies, but the rcfunding and
general mortgage 5 per cent bond Of
the Baltimore & Ohio is reserved to
refund them at maturity. We regard
the Missouri Pacific first and refund
ing per cent 1923 as rather we'll Sc
cured. 1t is at least equal if not pos
slbly superior, to the Baltimore & Ohio
southwestern bond, in our opinion, We
base this upon the fact that the credit
OF Baltimore e. Ohio is not as good as
heretofore, and because Missouri Pa
chic has been through reorganization
recently and that the bonds referred
to on that system are. together with
those due in 1926 and 1865, prior lien
on 2,195 miles of road, besides being
secured by deposit of s15,39S 900 Of
bonds. The Denver g. Rio Grande i'm
provement bonds are not high grade.
The fact that there is a large Judgment
against the road causes the bonds of
the system to sell below their real
value, even in this market, in our
opinion. Yet this Judgment must take
Its place behind the four liens on the
property, of which the improvement
mortgage is a second lien.
Plans Switch
=. Question: have few shares of Texas
cbanpa ar stock i,lyasi am contennpating
stocks to yield a higher dividend. Please
give me Your opinion of Lucey Manufac-
vertbe Stock n saS vas c sn con
as an investment-C. w. L.
Answer-According to the recent
statement of earnings of the Luccy
Manufacturing Company, manufacture
ers of oil machinery, the net earnings
after interest and sinking fund on
notes, but before taxes, were about
100000 for four months ended April
so, 1920, at the rate of 100000 a wear
After payment of S. a share on the
Class stock, of which there is but
S323S65 outstanding, par $50, there
would remain about $567,50 for the
Class B stock, equal to about 1910
share. Apparently the Glass A stock.