New-York tribune., 1921-10-26
Good Divcrsificat,on

'~A A4FGA o1AC&klUu
Il ns S,ess,on-As est, daily reader of your
financial column would be greatly obliged
20 20 YOU YOU for an opinion on the following se-
;nurities ;ns which ] am holding as high grade
gest, will be highly appreciated "' Also
mrnaiy rrnay name a diversified list OF high
dtaae dspos,nnn rong-serm bonds; as contemplate
pess psss and Victory notes for reinvestment.
trsf saSe nonsider safety Of principal as the
cry ewy $4,000 second AZ Liberty $50, 600
~ victory; $4,000 per cent certificates
So lonaeetedness o"n sse due December is, 1921;
eaness. . due March 8. 1922; $4,000 per
Gsns 1sns. Federal esd era Farm Loan. 1923 to to
otsS cent per gs5 asa, Ssss
lehem Steel note. due 1928. $1,000 per
neat nens Am american Telephone and Telegraph
United Knsdom % aae saV0 sas 5000 Sa ger 'par par
Gess sss os,ted edo States Steel sinking fund. due
81 PsF pss cent cent Ghiesso
Ssrsh. North western due isse; $1,000 per cent
cent General Electric due 1862; So 600
per per cent Bell Telephone of Pennsylvania.
aae sGSs cent sn
ard OH Of New York, due 1925; 1000
per cen. Standard OH Of California due
Power l.sN COMPANY. due 1882; $1,000 IA
dss 1885, sooS ssr Mstoh n,sa
$1,000 per cent p''sa"s St. Louis du' isas, San
FRANCISCO prior lien, due 1860. $1,000 S per
cent Virginian Railway Company. due
1s; 1ss2; $1,000 per cent collateral American
Telephone and Telegraph: due 1916. $1,000
6eenn cent MT Lggett Nos; Meyers due 1s44
phone due l941; $4,000 per cent New
York Dock, due 1851; $4,000 per cent
900 Gia per cent Western Union due 1886;
81 600 per cent Pacific Gas and Electric,
due 1912; 81 900 per cent West shore.
nv.
Building. due 1860. twenty shares United
States Steel preferred. twenty shares Ma
iionai to1 BISCUIT preferred. twenty shares
shares American Locomotive preferred,
twenty shares Standard OH of New Jer-
bacco preferred, twenty shares American
Telegraph and Teephone.-J. W. A.
Answer-Your list of securities is an
unusually good one and well diver
sified. We think that thout excep-
tion the bonds are of strictly invest
ment character and have high degree
Of safety. The per cent bond, due
1867. is the first mortgage bond of the
vifginian Railway, we understand
Your list is already so we'll diversified
that it is little d ficult to recommend
further diversifcation. We suggest.
Sowever, tnat you consider some OF the
municipal bonds, and suggest New York
State Highway improvement As, due
1858, recently quoted at So bid, SO
asked, and New York City new 41ss,
due November, 1857 recently selling
around 80. The City of Buffalo AIS,
due serially, 1922 to 1868 can be
bought to yield between and 5A per
cent. Another class of investments,
which IS not represented in your list.
is bank stocks. We do not ordinarily
recc mmend bank stocks for the average
investor, but your list is so good and
your investments so large that we think
you could profitably include twenty
shares of the National Bank of Com
merce, quoted at 214 bid, 21S asked, re-
Gently, and twenty shares Of the Me-
chanics and Metals National Bank of
New York, quoted at 285 bid, 290 asked.
We would also suggest Ccrro de Pasco
convertible IS, due 1881. They recently
sold at 109A. We think the bonds as
vertible into stock at 33 1-3. We believe
that the copper situation is getting bet
ter. There appears to be a good chance
that before these copper bonds are due
the Cerro de Pasco stock will sell con-
siderably above 38 13. There are some
good low coupon rate railroad bonds
that are not included in your list. We
suggest Kansas City Southern first 3s,
due 1850, recently selling at SO; Colo
Iauo o. oOutnern nrSt As, due 1929 re-
Gently selling at 85M; Denver e. Rio
Grande consolidated (now frst) 4s, due
1886, recently selling at 67M; Norfolk
& Western divisional first and general
As. due 1914, recently selling at rs. We
suggest that you add to your list of
preferred stock American Car and
Foundry preferred, Corn Products pre-
ferred and Liggett & Meyers Tobacco
preferred. You have no equipment
trust certificates in your list. We sug-
gest that you select from five to ten of
the equipment trusts, which have been
sold by the government, and are offered
at price to yield $50 per cent. You
can choose the maturities that will fit
in with your plans. We suggest Illi-
nois Central, Chicago & North West
ern, New York Central, Delaware &,
Hudson and Nashville, Chattanooga &
st. Louis.