New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-06
Would Exchange Common for Preferred

NSutSlio ask your opinion re-
EardinG tho following stocks: AIl!s Chal-
mers preferred. Advance Rumely preferred
lnternationai Mercantile Marine preferred ?
prevailing quotations: l have about SO
600 worth OF common stock of United
States Rubber, Studcbake Chandler and
Alis Chalmers, and l have been figuring
on changing sam" into the above preferred
stocks. especially the Allis chalmers. Can
that nlanufacture farming machinery are
out OF line with other preferred stocks ?
DO you consider United States Food Prod
ucts sa fc purchase ?-l l. G..
Answer The three preferred issues
that you mention are not seasoned Sc
curltles. That is, their dividend rec
ords are not Of long standing, although
the companies earnings at present arc
ample IN each case to care for div-
dends. We regard all as fair invest
ments. Marine preferred was a specu-
atlve feature, in that there are AZ per
cent dividends accrued. The common
stocks you hold are highly speculative,
being sensitive to earnings and other
influences. Farm machinery concerns,
being only one line of business, do not
enjoy that dversitication Of business
such as United States Steel and other
similar concerns For that reason prob
ably their preferred stocks are not en-
titled to as high a rating United
States Food Products is said to be doing
a very satisfactory business, it's divi-
dend being amply earned. However
the stock is speculative and we do not
recommend 1t for investment purposes.
Desires SIS Yield for $1,000
Question--Inform me Of few stocks
that can be purchaaed where the risk
s woult ,,a be mi unlimited as much as possible
Tor 200 Would also appreciate an ex-
preston from you to the status of
Gold"yn Pictures and American Telephone
and Telegraph. Tho latter was bought
when It was selling at e3A-I A. l..
Answer-The following stocks, all
preferred, return over per cent per
annum. All are we'll secured, in our
opinion, and have long dividend rec
ords: Endlcott-J ohnson 7 per cent pre-
ferrcd, General Cigar per cent pre-
ferred, American Brake Shoe per cent
preferred, Bethlehem Steel 7 per cent
preferred. Goldwyn Pictures is specu-
latlve. The company is said to be op-
Grating we'll at present, yet the moving
picture production business is an I'M
certain one, at best. We do not rec
ommend such issues for investment
American Telephone is doing better
under private operation. The dividend
is amply earned, and we regard it as a
very fair business mans investment.
Atchison Bond as Servants Reward
question: desire to mako Kilt of
$500 or $500 to a faithful domestic who
has been with ua for nearly twenty years
Needless TO say. want this to como ns
near government bond possible in the
way ny, Of reasoned securities. I have In mind
{. $1,000 bond Of the Atchison. Topeka q
Santa Fe Railroad per cent general
mortgage. due 1898. Kindly give me your
security which backs the bond Would
you suggest anything better. II so. what ?
C. /. r.
Answer-There are few if any better
bonds than Atchison general a per cent
They are secured by first lien on the
entire main line, some 5,241 miles of
road. Bonds of this class or Liberty
issues form the best possible invest.
ments.