New-York tribune., 1921-07-04
Draper Corporation Stock

Que stion-Would you recommend the
stech OF Draper Corporation invest-
ment do not expect it to compare with
United States Government bonds, but is
II reasonably safe in your opinion p
Answer-The Draper Corporation is
large Massachusetts concern max
ing looms, and UP TO July 1920, it had
been doing boom wartime business
without, however entering the foreign
field. Last February 1t was reported
that no new orders had been received
IN more than six months, so the COM
pany has been affected by the collapse
OF the cotton manufacturing business.
The January /, 1921, balance sheet
shows inventories of S2,533 e22, almost
100000 moro than the year before.
and receivables of $4,6o1 500, compared
with S4,l94, 1863 in 1920, so a good deal
depends on how good the receivables
are and how much writing down the
inventories require. Total assets are
$40 ,420 900, including patents and trade
marks of So ESQ, 900. Cash is not men
Bills payable totaled S1,033 900. There
is no funded debt and the capital stock,
$l7,500,000, is all of one class. The di-
vldend rate is IL per cent. There is
no market for the shares. A price of
1898 was recorded at a Boston auc-
tion last April. This is not a bad stock
and it may have possibilities, but there
are good many things we like better
than holding speculative shares whose
best market is the auction block.
Asks for Advice Before, Not After
ouestion-wsald appreciate very much
II you Will kindly advise me II the Parenti
Motors Corporation of Buffalo Is a good
investment l have about $1,000 to invest
and am thinking of purchaans 90 shares
at SIS per share, VIII hold off buying
until receive word from you-Miss NJ H.,
Allentown, Pa.
Answer-Parenti common stock is
offered here around SIS and $6 share
Ne fail to see how a non dividend pay
Ing common stock in freak motor
car of improved merit should be sold
at 100 per cent of its value, which is
$40. We are glad you asked for ad-
vice before buying instead of after.
Needs Additional Income
Question-Will you kindly consider the
following list and make suggestions to one
who finds additional income necessary and
yet wishes to play fairly safe, say, on a
mous sass Of nrsse, e., to to on per cent yisld,
pean bonds: Twenty shares Union Pacific,
cost. SO; six New York City per cent
bonds. cost 96; two Bethlehem Steel first
otih irtuHulHE, toSl 90, IOFty snaFes south
Penn Oil Company. cost $50; S. 000 Lib
erty bonds; three Anaconda Copper per
cent bonds, $50, cost OF: five United States
Rubber per cent, 1912 cost IS; ten shares
Standard Oil Company OF New Jersey pre-
ferred, cost lo5. Would prefer bonds the
maturity OF which are from ten to thirty
years. and which are not callahle on short
notice or close to present market price,
Answer-We think that you could do
rather better than the forty shares of
South Penn Oil and the Anaconda Cop
per 6s, and would suggest in their
place American Car and Foundry per
cent preferred and three of the new
Northern Pacific Great Northern Joint
612 per cent bonds, which are conver-
tible into Great Northern per cent
bonds, due 1885, which are not callable.
You are sacrificing something in in
terest rate on your New York City
bonds if you are net subject to surtax.
If you are subject to the tax New York
City bonds. which are tag exasspt, are
% high grade.
What Is a Business Man. Anyway?
Question--Frequently you otate in your
column that certain bond Is good bust