The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-09-19
INVESTORS SERVICE

n. y. u, washing tOn-Please
inform me as to the reliability of
Metropolitan Credit Corporation
and as to the value Of the pre-
ferred stock. This stock was sold
on the partial payment plan by
Leroy Sargent & Co., No. East
Fortieth street. New York, N. Y,
to young lady. who is a salaried
employe, on the partial payment
plan Of $50 and $40 per month,
until Sargent & Co. receive $3.50,
when they will deliver a certificate
of two shares common stock and
two shares preferred stock to the
young lady.
Please let me know as to whether
the Metropolitan Credit Corpora,
ton enjoys good credit, the capital
and financial statement II possible.
1 depend myself largely on the
advice contained in your financial
columns and want, through your
assistance, to try to protect this
friend.
Answer-We have never regarded
the stock you write about as an invest
ment nor even a fair speculation and
have a great deal Of pleasure in re.
Numbering that we have always
taken an unfavorable attitude toward
1t and toward the concern acting as
sales agent for the shares. In the
first place we do not like the way
the stock is marketed. 1t Is done
through the intensive selling scheme,
or a one time touch-andgo. 1t Is
about the last thing on earth in the
the way Of security that we should
have advised the young lady in questio
to have put her money into. But
she has not necessarily lost all Of
her money as there is a fair market
for the stock at a small price through
New York dealers in unlisted secur-
tiles. 1t Is not quoted in the open
but sometimes sales can be
through the curb houses.
How infinitely better It would have
been for this young woman to have
invested her $40 a month in the
Equitable Building 4 Loan Associa-
ton, 818 F street! Oh, the pity of
investors who make such risky Ven.
lures as this before they actually pay
ovex money or sign contracts, we
could save them SO much needless
worry and possibly tragic loss.
M. R.-Kindly give me your opin-
ion of Libby, Mcneil 4 Libby stock
as an investment.
Do you think they will be able
to continue their present rate of
dividend?
now hold $50 shares at IS.
Would you advise the purchase Of
an equal amount at the present
price in order to reduce the price
OF my entire lott
Answer-we desire to acknowl..
edge the receipt Of your latter NJ
May 8. 1t would be perfectly idle
for us to attempt to forecast the pos
Of the continuation Of Libby,
Mcneil & Libby's dividend. II you
should sell your shares now II would
mean q considerable loss. but IL you
should buy more shares now in an
mean still greater loss. This is a
would mean going q good deal deeper
INTO the proposition, and this might
mean still greater loss. This Is a
very old concern and has always
made money. though at the present
time its revenues are not as great
Is usual and its profits are very
seriously curtailed, we understand.
It is the writer's own personal opin-
on that he himself would not go
any deeper into II now and he Is al.
most persuaded in his own mind that
he would sell and invest the proceeds
n a stronger security. The pack.
ng stocks, excepting possibly Swift
md Armour are quite likely to re-
,eive further unsettlement in their
market position.