New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-07


Question: am greatly in your debt.
hrst, for your telegram about the Western
MARYLAND equipment IL, and, second, for
your letter OF July IL. hesitatcd long
while before telcgraphing you about 1he
western MarylandB, because realized
that tho Tribune service. while broad.
sending OF personal telegrarna to Investors,
but the cxigencies Of tho situation per-
snaded me to ask the favor. 1t may in
terest you to know that / once occupied a
desk not far from yours in the Tribun
othce My mother and I hold $4,000 OF
New York, Westchester e. Boston Us of
bond and realize the uncertain quality o.
the New Haven guarantee. However. we
are In poaition to take a speculative risk
on few investments, and your answers
as to he advisabilty of selling this bond
seem seem TO have. been in, answer TO INQUIRIES.
These bonds cost US 4sM. Would you adj
who can afford to oie If the risk is Offset
by 4 good speculative chance OF gain
some time? The National City Company
opinion the Pacific Gas Is. Series A. are
superior 30 an Investment to tho older S..
because theJ feel that tho new property
prove more valuable to the comapny than
the older property. I have So, 600 of the
new bonds Would you advice selling a
consider the new Issue OF Kansas City Ter
minals as equal to the Chicago Union Sta
ton Gas in attractiveness?-G NJ G.
Answer--It is possible that we're the
New York, New Haven & Hartford sys-
TEN to be reorganized some offer would
be made to New York, Westchester e.
Boston bondholders to take new Sc
curities under the reorganization plan.
In matter asuch as this we can only
express opinion based on discussions
Of the New Haven situation with vari-
Gus railroad men and bankers. In our
opinion the security that would be of
fered would be a non-fixed-interest
bearing security, and from all the evil
dence that was submitted in the New
England railroad companies applica-
ton to the Interstate Commerce Com
mission for a better division Of the
through rates from New England we
fail to see any particularly good pros
pect for the New Haven. If, therefore
a reorganization becomes necessary, we
are inclined to think that the securi-
ties that you would get in exchange
for New York, Westchester g. Boston
4lss would not be worth materially
more than the present market price of
the Westchester bond and would be
one on which you would get no income
for some years. On the other
hand, the New Haven may not
nave TO DE reorEanlzed, ana IN
that case you would have got
az per cent bond at a most attractive
price. AS you say, it is speculation,
but would not be particularly attrac-
tive speculation, in our opinion. We
arc inclined to agree with the National
City Company that the fact that the
joint mortgage made by the Pacific
Gas and Electric and Mount Shasta
Power Corporation gives the rs Of the
Pacific Gas and Electric fully as good,
if not better, security than the older
5s have. We would not sell the rs to
buy the IS. We think that the Kansas
City Terminal As due 1860 are as good
an investment as the new Chicago
Union Station 61as, being guaranteed
by twelve roads which use the station,
including such strong roads as the
Atchison, Topeka & Santa Fe. Chicago,
Burlington & Quincy and Union Pa
cifc. The Kansas City Station as a
station is generally considered to be
far from success, but this in no way
that we can see affects the value of the
bonds. You are not in our debt if we
have your good will, and we gladly fur
nish telegraph service, if possible, es
pecially to readers who, like, you, are
thousands of miles away.