New-York tribune., 1921-08-28
Physician Carries $4,000 Insurance

Ha~si ion-l have written you oncc be-
s'.e cut failed to give you cofnDlefc in
formation have been reading the In
NessoVs column for over year but the
I''pre p read the more cautious become.
I y, and years. and for this reason
- .eTi Shouin be careful IN regard to
my my NV anvest,nen's have $3.50 lite In
serahce 81 he cash value Of which is now
so'u'~- 1000 OF this is twenty-year en-
oow owment. Sl2 900 in twenty payment lfe
and the remainder is STRAIGHT life | real
,ze now that would have been wiser to
Tsse 49, NAG nag a., my insurance straight nfc.
crcssss ns Sssa N".uS OF NY total Insurance IN
u would be sl2.o 600. in 1888. $ls.50o. In
'.,'s me mean 1lIne some endowment becomes
10 sDc'nolng :. oo ig $500 Victory bonds have
- 'ovo IN war savings stamps. FOR the most
part coming due 1879. have $1,000 in
various savings banks. Having lost some
money IN one; once. believe there is
safety in numbers. have the following
stocks and bonds: 500 $ " Straus irst
hanses city Power & Light 1000 first
<<efn"1lng <soo per cent Central Vermont,
lnent French Republic 7i.s 194i: 5000
t-'ssett' IS lutcrnationai Ltd. & per cent pre-
ferccd stock; S3o0 Connecticut Telephone
and Electric Co. per cent preferred stock,
ssVo BassicH CO per cent preferred
1erp. common (speculatiVe). / am forty
nVe Years ola and my income is liable to
vary from $1,000 to $1,000 a year. There
- n ,FVt lax on bonds in Connecticut. I4aSt
year came IN the per cent surtax. hay
ins an incsne tax of about $240. ls the
snclosed issue. Salts Textile s per cent.
suitable for me to invest s5002 Would you
buy more Liberty bonds7 | have found
out That the Central Vermont bond which
have is fair but not first class. Please
advise If there are reasonably safe bonds
which are selling at a discount like Lib
critics which It would be wise to buy
Dr. l.. 7. J.. Z.
Answer-The Salts Textile Manafac-
turing Company RECORD of earnings is
good. The balance sheet, which is
made UP or the assumption that the
present financing has been done, shows
only 1892 ,95A cash in the United States,
and shows $1,000,000 notes payable to
hanks. In other words, after raising
So 500 600 Of new money the company
is not in strong cash position. On
the other hand, the record of its busi-
ness is sound. We can easily under
stand why the bond is attractive to you,
since it yields over 8 pcr cent, besides
being exempt from the Connecticut tax
We think that the Central Vermont
bond is good but it IS not, in fact,
guaranteed by the Canadian govern
ment, if that is what you refer to.
While the bonds mentioned below are
not Of as high degree Of safety as
liberties we think they are safe and
good investment at present prices: St.
Louis Southwestern first As, due 1899,
recently selling at Go; Rio Grande first
IS, due 1889, recently selling at 631a;
Pacific Gas and Electric 5s. due 1912,
recently selling at 76; Illinois Steel
debenture 414s, due 1910, recently
selling at so; General Electric de-
benture 3 u 5, due 1912, recently selling
at 66, and Montana Power first IS, due
1913. recently selling at s37s. We
think physician is wise to carry a
good deal Of life insurance, and that
your conclusion about endowments
being inferior TO straight life is COR
rect