New-York tribune., 1920-11-07
Doubtful About Traction Issue

Question: bought for investment Man
haitian Elevated Railroad stock at os ana
IntcrboroDgh Railroad : per cont bond. a t
IS. Up to this time interest and dividends
nave been paid. Would YOU advise mo 10
sell at present? Would you advise me to
sell Chicago, Milwaukee &, st Paul ) per
cent bonds Series T. ana Chicago, Rock
Island G. Pacific Railroad per cent re-
funding bonds to buy New York Dock 4
per cent bonds or Kansas City Terminal
bohq per cents or any other bond you
might feel free to name, bearing same in
terest? Can you suggest safer security
bearing same interest than Japanese gov
ernment bonds at and Az per cent?
They were bought some time ago at about
same price. l bought Firestone preferred
Since then It has dropped. Would YOU ad-
wise selling it at present market price? :?
pally to get the valued information OF
your column. which l think ix ably con.
ducte d.-F. l.. W.
Answer-Thc situation in regard to
the 1nterborough and Manhattan Rail
way companies is unchanged It is
our opinion. however, that as these
companies have manared to weather
the storm thus far they will be able
to pull through without any default
This, however, is but an opinion. We
do not regard either the Interborough
bonds or Manhattan stock as high
grade investment. If YOU feel that
you can afford to speculate upon this
matter You might hold these issues.
There are many better secured issues
than St. Paul 5 per cent and Rock
Island refunding 4 per cent bonds
However, we see no present reason for
you to be uneasy about them. The
railroad situation appears to be i'm -
proving, and we do not believe these
issues are in jeopardy. In place of the
Japanese bonds you might consider St.
7
per cent. New York Dock first per
cent and Denver g. Rio GranGe first 4
per cent. Firestonc preferred stock is
we'll secured at present. All forms Of
investments in automobile and its ac-
cessories have fallen. We know of no
present reason for alarm. We prefer.
however, an issue of a company in a
more diversified business. such as
United States Steel preferred. Corn
Products Refining preferred and Stand
ard Oil preferred.
Hendee Stock in Better Position
common was listed | purchased ten shares
at 4s. 1t is now quoted at 81. DO you
think the stock will ever come back or
should | sell and take loss, deductinl
same from my income tax return . (Miss)
j. c. Med
Answer-The Hendee Manufacturing
Company, makers of Indian motor
cycle, is said to have shown about SO a
share caHncd on the 100000 shares Of
common stock FOR the year ended
August 81, 1920 Last year $9l4 a
share was earned. We understand
that the company has paid off the last
of an $85O,000 floating debt and en-
tered the new fiscal year with large
orders on its books at an advance Of
$50 machine. The common stock is
speculative, moving, as a rule, with the
general list. We do not attempt to
predict the course of prices
Liggett Stocks for Small Investor
Question-W IS your opinion Of Lis =
gett's International for small Investor:
H. c. X
Answer Liggett's international com
mon stock, paying per cent, is more
or less speculative because it is the
first issue to feel the effects Of changes
IN the company's earnings. 1t has been
stated that at present the net earnings
on this stock are at the rate of SLABS
share, par 500. and that dividends
OF So per annum would be started i'm
mediately. The company is new and ii,
has yet to demonstrate its earning
power over period Of years. You
might do better to consider the per
teed by the United Drug Company.
Investing in Foreign Bonds
Question-W What is your opinion Of tnr
new Belgian, French and Norwegian bonds >
Do YOU regard them AS safe investinentsr =
A. p. II
Answer We regard the new Bel
gan, French and Norwegian external
loans as good investments But Won
should not put all Your capital into
this class of securities, we believe, be-
cause possession of them subjects the
holder to the risk Of political compl-
cations as aifecting the obligor itsel,
and the relations between the invest
or's own property and the borrowing
nation. Make up your own mind
whether this risk is important in the
case OF the three nations YOU mention.
and then consider how the bonds fit
your requirements Is 10 Weld and
maturity
Swift Notes Yield 80 Per Cent: Sound
Qucstcn--l would appreo.atc vow opiH-
ION Oh h" nt'"tis &c s'wiff * Co.'S gold
notes 10 Vet $50 po7 cort --f.
Answer While Swift & Co. notc.
are not secured by mortgage o. callai-
eral. the company has been larca
cas9ier and enjoys good cyod' We
regard tine notes AZ u sound shc..-tclgn
investment