New-York tribune., 1921-08-08
Losses Cause Woman Worry

~ Suesllon--l notice in this mornings Trib-
~. u,o' IN answer TO an inquiry. that YOU do
no, think we'll OF Central Leather nrererrAu
nats t zen shares of that stock for which
- ! palu 4Vb "a IT was recommended as an
t amt testineht stock. l have had the dividenJ
tut & on tnat and also on American AericnI
IHraI Chemical and Virginia -Carolina
o. o. mem For the American Agriculn-.ai
CCnem:cal l paiu 96ia ana for Virglnia. ~.
Iharolina thar. chemical los so at present nrIces
mere Is big loss in PRINCIPAL If I disnosa
oie. ehien now than later II you think the
cna4ces t.n OF resumption Of dividends arc not
ceht pond which l believe Is nov, o,1otn5
aod d. %. Would you suggest that I sell chat
Te,, Sl,r waa1 could get in its place? am
ri as9S nuGh Interested in income and loss in
principal Is quite a serious thing tn me-
some time ago the National CITY Comnany
ibIc har M 10 10 me Z per cent convert
t,aul railroad have noticed that several
.l'nes I'm you have said that you do not care
70 thesc bonds What could do ahout
.aat bond? also have ten shares C,eneraI
MOTORS per cent debenture stock also
an, an . per cent bond Of the Riordan Com
can do about these various stoclxa en
,nat there viii not be too much losq on
ooth principal and interest? *oa,, ,,l',r
advice because l believe you arc dieinfarl yo,.'
ested, and know the so-callcd invasfn1cnt
nouses are not, and have absolutely no
n'1rG lound' are principally interested in
coninlssions. have 100 shares Of south.
~. ~ @c'lc Tor Wnlch ! paid l3Q. and 100
shares Of Pacific OH. ten shares BALDWIN,
zen Legett d Myers preferred and tan
National i,eathcr. What do you think of
those Also ten Rubber preferred@a1rs
.. 4. p. ' D
Answer-Central Leather had n def
cit Of about s2o,0oo,ooo in 1920 and q
deficit in the first three months Of
1921. We think that it would be sDec-
ulative to hold the stock and advise
your selling it. The Virginia Carolina
Chemical and American Agricultural
Chemical are both strong companies.
but have been seriously affected as to
earnings by the present depression in
the fertilizer business. The question
OF whether to hold is one which onlv
you can decide, because it depends on
whether you can afford to forego divi-
dends for certain lenath Of time We
think that dividends on the preferred
stock will in the long run be safe. The
Central Leather 8 per cent bonds are
probably safe as regards princinal and
interest. We think the ST. Paul situa-
ton will como out all right, but there
Is an element of speculation in the
an per cent bonds, and if YOU cannot
aHord to take that element of risk
you had better SELL General Motors
per cent debenture stock is specu-
latiye under present conditions. and
the per cent bond of the Riordan
Company IL also speculative. You will
nave to face the fact that you have
been consciously or unconsciouslv in
vesting in industries which were given
an unnatural boom by the war and
which are experiencing a natural re-
action. This is said in regard to the
securities other than those mentioned
IN the last paragraph Of your letter.
Your Southern Pacific, Baldwin. Lig-
gett g. Myers preferred and National
Lead are good under present condi-
tion, but even these, except the Lig-
p'tt A Myers preferred, are not
strictly investments but rather semi
speculative. 1t seems to us that you
have two clear and logical courses
You could sell all Of your securities
at the market price except the South
crn Pacific and the Liggctt e. Myers
preferred and invest in recently is
sued high coupon rntc bonds, such
az the Kingdom Of Denmark IS, King
dom Of Norway ss, De Laval Separator
Ss, Northern Pacfc-Grca Northern
joint 6Ma and Puget Sound Power