New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-07
Gilt Edge Addition to 5000 ooo List


Question - The Investment Information
Column OF The Tribune seems to me fo
AFFORD the sort Of Information and advice
! need' and have hesitated to mako ure
SomethnS for nothing. | would much
pieier 20 pay for advice IN the matter
~ ~ problem Is this. am past sixty.
5afe no one dependent on ma Tor support
except my Wife. ! wish. at the death OF
VIZ ana myself, To pass on estate to
our daughter in trust for her son and
naturally want to leave them ali can
even though they arc not dependent on
me we have our home paid for and
some rental property unencumbered In
ADDITION We have $500 600 in Liberty bonds
-pnrt original subscriptions and balance
pous nj at market, and about same amount
OF inunicipals $4,000 Porto Rican per
cent 1929; $1,000 American Telephone ami
Telegraph, 1922. In addition, I own CON
eloiiing interest in my company. You viii
see tnat the only business mans invest
r'snt l nave Ia In my own business and
want to contine all Of my outside invest
bonds but DO stfi sss -sdgsd long term
l already have in Itbertys and municipals
can aHord to take some OF the best
o. 'ne lnaustr'ais railroads or public uti-
Try bonds | don't know anything about
any or these except what l have read In
your column. Am little retudiced against
railroad and public utility bonds. because
smey are subject to attack by politicians
the railroads have been nearly ruined by
legislation directed against them. and
cannot why the public utility COM
panies should not be open to the same
danger. Would ask YOUR views an IRIS
| nave 80. 900 to invest now aud will
have offered me Du Pont 7lss Province OF
Saskatchewan per cent. United Kingdom
W 81 PER cent S%ih & Co. per cent. Libby,
Arms, Duquesne Light Company ~ per
cent, California Oregon Power Company
~ per cent, Southern California Edison
per cent, Danish Consolidated municipal
loan per cent Would you advise buying
any Of these, you suggest sorue-
thing better ID. q. n.
Answer-In so far as the inlme date
future is concerned, we think the pub
lie attitude toward both railroads and
public utilities has changed for the
better, but we think that public resent
ment against these corporations might
recur, and that fact should be taken
into consideration in examining the
security of iong-term bond. 1t
would certainly appear that the court
protection afforded either railroads or
public utilities under any defense that
corporation lawyers have as vet de-
vised has been inadequate to protect
their credit. The transportation act
specifically recognizes a duty on the
paw VI Tue llllStLdtlVc DTdQCn OF
the government to protect the invest
nent in railroad property. Might this
not be point OF departure for some
what different court procedure in the
future, where a Legislative act resulted
in threatened ruin of a public utility
or a railroad? OF the bonds that have
been offered to you. we would be in
clined to rate only the United King
dom of Great Britain 5l2s eve would
recommend the issue due 1880, the
DuQuesne Light 7l2s and the Southern
California Edison Is as gilt edge, and
we would rank the Province of Sas-
katchewan Is and the Danish Con-
solidated Municipal Loan as high grade
bonds, only slightly less high grade
than the other three. There are GER
tain underlying railroad bonds that we
think rank in security, over a long
term, with the best and safest bonds
on the market. OF the more recently
issued bonds Of this class the Chi
cago Union Station 6l2 per cent bonds.
due 1868, are q good example. These
bonds are guaranteed jointly and sew
orally by the Chicago, Burlington &