New-York tribune., 1921-07-31
Time to Shift 100000 Holdings

tluostion-Over a period OF severa years
! ! have saved and invested 100000, mostly
| In stocks, but as I am not in need of the
! income at present have an idea it would
be good plan for me to ewtch some OF
my stocks INTO old bonds. non-calla Bile
with fifteen to twenty-five years to run.
have fairly low average of cost on my
stocks and some of my larger blocks con
sist of about 100 shares each: American
Felephone and Telegraph. at Q7; New Eng
land Telephone and Telegraph, at 85
western Union, at 49, Anaconda. at 30la
and Chino. at is, for long pull fifty
each American Sugar at 50, Canadian Pa
cilc Railroad at 1OS Union Pacific at 1lS
1neas 1neas northern Railroad at GS; Northern
Pacltic RAILROAD at 20. Edison Electric .of
Boston at $50. Pennsylvania Railroad at
%. also have sixty shares st. Paul pre-
ferred at 3S, which ] bought to lay away
and see what will happen in the next few
years. What do YOU think of my list and
which is the most desirable switch and
INTO what? Living in Massachusetts
nave inclined toward tax excmpts with
good dividend records. Some of these
stocks undoubtedly Will be very much
higher in the next few months Would If
not be better to buy the bonds, using the
stocks as collateral temporarily? / am
hfty eight; in good health and active bust
dependent on the income from above for
several years-E II. S ' ''''s -0'
Answer-You have on the whole
shown keen judgment in the prices
which you paid for your common
stocks, and we are glad things look so
rosy to you. Fifty eight does not
seem old to an active business man in
the position you describe, nor does it
to us; but we do think that your age
has decided bearing on the class of
securities you should hold. You have
placed yourself in the position of
taking the marginal or first risk in
your companies, in some cases for the
long pull, for the sake of high spccu-
lative return, which admittedly YOU do
not require. But it is certain that at
some time not many years hence you
Will require the income from YOUR
$4,000 savings, and therefore we
think you should eliminate risk now
and be prepared. Therefore we sug-
gest that you sell your speculative
holdings and invest in such issues as
the following: Southern Pacific Cen
trail Pacific collateral As, due 1949, re-
Gently selling at GS; Union Pacific con-
vertiblc as, on which the conversion
Gently selling at 82is; Vrginian Rail
way first 5s, due 1862, recently selling
at so; Norfolk G. Western convertible
as, on which the conversion privilege
has expired, due 1882, recently selling
at rs; New York Central convertible
dcbenture 6s, on which the conversion
privilege has expired due 1895. re-
gently selling at s712; Canadian
Northern T per cent twenty-year
bonds, due 1910, guaranteed principal
and interest by the Canadian govern
ment and recently selling at slightly
over 100, yielding about 60 per cent;
the Pacific Gas and Electric general
and refunding 5s, due 1912, recently
selling at IT'S, yielding I'll per cent
if held to maturity; United Kingdom
of Gre0t britain XIX nor cont l,orGe
due 1887 recently selling at IS, yield
ing I'll per cent if held to maturity;
Government of Switzerland per cent
bonds, due 1910, recently selling at
1O2B, yielding ITO per cent if held
to maturity, and Northern Pacific
Great Northern joint 6A per cent
bonds, due 1896. secured by the de-
post of nearly all of the capital stock
of the Chicago, Burlington & Quincy.
They are convertible into either Great
Northern or Northern Pacific bonds,
but we think that the safest invest
ment would be to hold the joint bond
rather than to convert.