New-York tribune., 1921-04-02
Urged to Take Oil Stock for Debt

Qucstion-Will you kindly advise ~. =,
tho value Of the American Fuel on and
been represented to mo as being "a No !
stE ssth..suES' nave invested a coupIn ot
Thousand dollars In the preferred and corr
mon stock. preferred at per cent, rn,r
mon Just started to pay per cent nor .n
nun: Some OF tho common stock was of.
, ,ered to mo Az security. which have re-
FUSED, .ts and now It is desired to give me
80 shar"s OF preferred and 4a0 common
FOR debt OF $500. am fearful of n
! and think IT entirely too much money tn
psace IN one investment OF speculative
nature can i'll afford any loss, having
sustained loss elsewhere and beinv
woman. ind it Difficult. to know whom "a
consult or trust.-AIrs G. s. "a.
Answer-Therc is no regular mar
ket Tor American Fuel Oil and Trans
portat'on stock, though it is quoted
and 'faded IN to ertain extent in the
unlisted market, which is an unsatis
factory place to sell promotion stocks.
lherefore we cannot tell you what YOU
could get for it if you tried to sell.
1t IS speculative stock, though not
a wild cat by any means. In view of
inc fact that you already have con-
SIDERABLE investment in this issue, we
advise you not to take more Of the
stock for the debt if you can helm it.
Of course, il you cannot get anything
else, that Is another question. There
Is way to guard against losses such
as as you have sustained in the past, and
yell secured preferred stocks and
Bonds, Larger fortunes than yours
nave been dissipated by the cumulative
and vicious process of trying to cancel
old losses with new speculations. A
speculative loss should be rega rded as
water over the dam. The only bearing
1t can have on future operations is
to affect your Judgment, in most in
stances for the worse.
Seeks Bonds Selling at Discount
0uestion-Give mo your opinion of Chi
Taso Tss, Railway Iva, first S. aud Chicago Great
discount bonds.-J, r. T.
Answer Chicago Railway first mort
gage per cent bonds, due in 1927, of
which there are S59926, 900 outstand-
ing, are secured by first lien on the en-
tire property, rights and franchises of
the company. The gross income of the
company in 1920 amounted to $685.
1O4. Interest on the bonds calls for
S4,744,sSs. These first mortgage bonds
are followed by about $33, 100000 CON
sos1dated mortgage bonds. The Chicago
Great Western first mortgage As are
secured by mortgage on 1895 miles
W 'o.ii ocd, anu ttie lOldl amount OUT
standing is S253s3, 900. They are due
IN 1859. The Chicago Great Western is
a weak road. Erie prior lien as, due
1896, are selling at SO; Chicago & Alton
hrst IS, due 1850, selling at So; New
York, New Haven & Hartford debenture
as, due 1855, selling at about 4s, are all
boNds of weak railroads. which appear
to be good buy if you believe the
railroad situation is going to improve
Some of Her Bonds Good, Some Not
Question-Having been an interested
reader OF your column for come time T
you on the following bonds now selling at
about so per cent discount VIII you
piease give short statement OF the secur-
ny OF these bonds. their yield at present
prlces ana the ones YOU would rAcomm md
tor Investment. safety Of principal being
per cent, at about So Central New Eng.
land per cent SO: Chicago & Alto, 4
per cent, AS; Chicago Great Western 4
per cent, 50; Denver & Rio Grande ne r
cent, b5. Denver & Rio Grande refundin q
per cent, - Erie general per cent. 40;
. Louis per cent. 43: Missouri pscidc ssn' ~.
eral per cent, as New York Central
i,sko Shore ~ per cent, 63; New York
Nsen.lSl. MIC hisan Central 3i2 per cent. ss.
@ neW 1ork' New Haven e. Hartford 1 49,
New York, New Haven & Hartfor1' -
Per cent 43, New York WAstchsst'
boston "a per cent. AZ; Norfolk s,ou,h.
per cent -; New York State RAW, ,,s q
oolver'loIe "a per cent, so; NorthHrn