New-York tribune., 1921-06-07
Saves $1,000 Yearly; Invests 1t Well

Question---Arn forty years Of age, with
wife and two children. both ondeF SIX
tive heart valve. not yet causing syIilp-
toms. Am able to save about 81 900 year
~ aside from premiums on sS,ooo ,..I.a lte IN.
surance. Have invest tments as iobo"s'
81 900 Oregon e. Washington first and re-
funding, 1861, cost 72: ~ 900 NoIthern = a.
cihc general Item 3s, cost 81; $1,000 At
1antic Coast Line. l.. e. ~. collateral A.
1852. cost 81. five shares United states
Steel preferred. cost OF; five shaFes stand
Atchison preferred, cost ~ SIX shares
American Locomotive preferred. cost lO5 I;
seven shares Baldwin Locomotive pre-
ferred, cost 100: three ahares local bank
stock. selling ut $3.50 a share. iSod my
Liberties and bought Oregon Washington:
also am heir to property in thls sIhall
least 100000. VIII soon have another
$500 for investment. l usually ask advice
OF my bank Gin which hold the three
comment on my present holdings, advise
disposal Of any. IL good reasons now exist
and recommend seVeral $500 Investments
OF course. l wish high yield as CON
sistent with the safety which my circum-
stances require.--B. =. l.
Answer-It would be hard to pick a
safer investment, in our opinion, than
the ones you already have. The Stand
ard Oil that you name we suppose to
be Standard Oil Of New Jersey pre-
ferred Of course we cannot express
an opinion about your local bank stock.
You may derive some advantages from
it's ownership. The three railroad
bonds which you hold represent, in our
opinion, a high degree Of safety. OF
the preferred stocks Baldwin is pos
sibly the least well seasoned and stable,
but the company's report for 1920 was
a good one and we would not recon-
mend selling it. One of the most in
herently safe bonds that have been
offered in some time is, in our opinion,
the Chicago Union Station 61a per cent
first mortgage secured by first mort
gage on the Union Station at Chicago
and unconditionally guaranteed prln-
cipal and interest jointly and severally
by the Chicago, Burlington & Quincy,
Chicago, Milwaukee & st. Paul, the
Pittsburgh, Cincinnati, Chicago & St.
Louis and by the Pennsylvania Com
pany. The bonds come in $500 denom-
nations and were offered to the public
at 101.
Tired of Holding Stocks
Question: own outright the stock listed
below. of which. however Is with
banks as collateral on loans. These stocks
were bought for investment. but the pres
ent market value is much below the
prices 1 paid for them and the possibility
have been considering the exchange of
most all of them for bonds that would
give me greater security and at the same
time give opportunity TO make up some
or all OF the loss by increased market
value: Fifty shares Great Northern pre-
ferred. average cost 81: thirty shares
Northern Pacific preferred, average cost
90; ten shares New York Central preferred.
cost 75l2; ten shares United States Rubber
house Electric. cost 4S1b; fifty shares In
spiration Copper preferred cost as; twenty
shares Pacific Oil. cost 33 Il twenty shares
Chicago, Milwaukee & St. Paul. cost 81
twenty shares Cosden cost 55. Would
you consider it wise TO exchange part of
this for Bethlehem Steel, United States
Steel and United States Rubber at the pres
ent prices? If you advise exchange for
bonds please give me list Of those you
prefer prefer: ~, Would you think It wise to ex-
Great Northern Ore?-R. NJ
Answer-W Westinghouse Electric is,
IN our opinion, better buy than
sale, but we think it would be more
conservative and in the long rum you
would get better income and security
of principal if you sell your stock and
invest in bonds. 1t would not be wise
TO exchange the twenty shares of ST.
Paul for the Great Northern Ore, we
think. For a business man we think
that international Mercantile Marine
6s, recently selling at 50; Rio Grande
w WeSCeru HfSL As, que 1881 recently
selling at 65h; Missouri, Kansas &
Texas first As, due 1890, recently selling
at 60 and on which interest is in de-
fault and the road in the process
OF reorganization; Virginia Carolina
Chemical first 5s, due 1928, recently
selling at 90: Danish Consolidated
Municipal IS, due 1946, recently SELL
ing at 98tA, and Belgium 715s, due
1945, recently selling at so, are good
semi-speculative investment. The two
latter bonds have sinking fund pro-
visions, which give you a chance of
making considerable profit if your
bonds are among the ones called early