New-York tribune., 1921-09-22
An Investment for $4,000

u
about or n per cent Will have more
coming occasionally, which / will have fol
investment. Please give me few com
Wish to invest in about $4,000 to SIS, 900 ir
separate lots--C. B.
Answer--We suggest $4,000 each ir
the following bonds: Brooklyn Edison
general mortgage series D Is, 1910, re-
Gently selling around par; Adams Ex.
press collateral As, due 1948, recently
selling at GLE, yielding 7.33 per CEN
If held to maturity; Winchester Re
peating Arms Company TVS, due 1941
offered recently at 97a; Rochester Gas
and Electric general Is, series B, due
1946, offered recently at 96; Western
Union "a per cent bonds, due 1886, re
Gently quoted at 98A; Westinghouse
Electric and Manufacturing rs, due
1881, recently selling at 1919; North
ern Pacific Great Northern 6As, Sc
cured by deposit of Chicago, Burling
ton 4 Quincy stock, due 1886 recent
~ selling at 101 "a, and three Cerro de
Fasco convertible IS, due 1881, con
vertlble into stock at 33 1-3, and five
each of the following three bonds
united Kindom of Great Britain SIS
due 1887, recently selling at 81; King
dom of Sweden 6s, due 1889, recently
selling at 86M, and Kingdom of Bel
GUM TVS, due 1916, recently selling al
1918. All Of these bonds we consider
safe, although they do not all yielt
quite as much as you ask for.
Reinvest for Treasury Notes Maturit,
Question: have s5, 900 in United State
treasury per cent notes due Septembe
~. what would you suggest for SAT,
reinvestment? I also have $4,000 in sav
n az
Nise something else with equal sofet,
and greater return? Having several thou
sand "a dollars in Liberty, Victory and Wa
ther in this line.--B. l.. NJ
Answer - Since you have Libert,
ponos and war savings stamps which
are marketable on an hours notice. we
think that you might safely invest the
$4,000 which you now have in the
savings bank in high-grade bonds. We
suggest Brooklyn Edison Z per cent;
general mortgage, series bonds, due
1910, recently selling at 1O1, and Liz.
gett d Myers Tobacco debenture Is
due 1914, recently selling at 1O7. Fol
the proceeds Of the Treasury notes we
suggest two United Kingdom of Great
Britain 51s per cent bonds, due 1887
recently selling at $685.; two Kansa.
City Southern first mortgage 3s, due
1850, recently selling at 81, and two
Western Union 6h per cent bonds, due
1886, recently selling at 997s.
New Haven 4s
Question: have 1000 invested In New
york, New Haven g. Hartford As. which i
due April 1, 1922 This I received in ex
change for debenture 6s of the sam
road. due 194S, which I bought at 1I5 i,
the days when New Haven stock was con
the price OF the 4s are to-day abou
63h, which would imply there is con
siderable doubt Of their being paid in full
when due. I understand these are now
nrst mortgage on part Of the main lin,
track. I should appreciate your advising
me whether under the terms of thi
bond holder of same can be forced tt
accept some new rcfunding issue IL h
elects to receive cash when bond is due
next April. Would not the failure to NEE
these bonds force the New Haven int
would be a bondholders chance OF gettint
at least part of his money back? Would
an so per cent vote OF bondholders compe
minority holders to accept a refundinf
plan r. B. e.
Answer.-In theory a holder Of Nov
York, New Haven & Hartford As, due
1922, cannot be forced to accept some
other refunding issue, but actually, II
the New Haven should not be able te
sell refunding bonds for cash, o reor.
ganization presumably would have tc
take place. 1t has generally been nee
essary to appoint receiver to put
through large railroad company re-
organization. Without receivership q
vote of 80 per cent of the holders of the
4s could not compel the other 20 per
cent to exchange their bonds. Under
receivership, however, tho minority
holders would be forced to accept the
majority's reorganization plan.