New-York tribune., 1921-09-19

|ucStfOn---l nave ten eharcS INTERIOR
ough Rapid Transit first and refundlnE 6
bought around SIS . share. now quoted
wapa low ola i'd. not sell beesusc
newspapers report that reccivership has
been asked. II this be the case would you
advise me to Join protective committee?
no doubt such committee will be formed
! owned few years ago some Brooklyn
Rapid Transit three-year Z per cent Sc
cured gold notes. due 1921. Unfortunately.
a receivcrship was appointed and / Joined
the protective committee made at this
time by the Central Union Trust Company
received temporary certificate. hope
my move to be o. k. If the receivership p
were raised. are there possibilities of re-
covering the money invested plus unpaid
lnterestY Also are these guaranteed p
H. r. NJ.
Answer--Until the protective COM
mittee membership had been announced
we could not pass opinion on whether
1t would be advisable to join COM
mlttee or deposit your bonds with q
committee. Neither the Brooklyn
Rapid Transit or Interborough Rapid
Transit securities is guaranteed by
any one except the company which is
sued them. 1t is hoped that the Brook
llyn Rapid Transit lines will in time
be turned over by the receiver to a
new company, which presumably will
issue its securities in place of the old
company's securities. The value of
the new securities would depend, as
dld the value of the old ones, largely
on earning power of the company. 1t
is unlikely that you will get cash for
your bonds and the unpaid interest,
but it is quite possible that YOU will
get new securities that in time will
have value equal to what you paid
for the securities you now hold and a
part 1T not all of the unpaid interest.
Would Weaken List by Change
~ ousstionEAm ,a,I Ior.- holding $1,000 each of
3. & +. Knight Corporation Is, United
states Rubber 7hs, Solvay s; Gle IS and
rrestsa Nenrassa Fower fS Ss series D. IT has been
reason Tor change being that 1 could get
SIX $4,000 bonds for the five, about the
Is,ne tv ,s,d Seariy income, and greater matur-
sand dollars cash left over The bonds
fpaggeSssd pani Sssia,a, are Chicago Milwaukee & st
st. Paul convertible 5s, Baltimore & Ohio
convertible AVS. Missouri Pacific general
ch,cs Soutnern so rrla 1Railway general As and
your opinion Of change. Would 1t weaken
my Investment to any extent? what do
you ,a,I think OF my present holdings? Am a
| safety.-H. @. II.
Answer-In our opinion your shift
wopld decidedly weaken your invest
ment position. AS it is now YOU have
bonds that we think are rather better
than the average good investments, -
whereas If you made the shift suggest
ed you would get into three weak roads,
one road that is deferring action on it's
preferred dividends, Southern Railway,
and one very weak road. Your Shift
would IN essence be a speculation on
the outcome of the railroad situation.
Should all five of the roads that you
propose investing in turn out well
the outcome of the railroad situation
would have to be particularly favora-
BILE. We advise you to hold the invest
ments which you have.
Selling Short Before Ex-Dividend
Question: sold fifty shares short day
4 or two before ex-dividend day and Gov.
I, cred the fifty shares about f1ye days after
| ex-dividend day. l received notice from
dividend amount on the fifty shares which
| sold short. Now I am told that the
| broker is taking advantage of my ignor.
ance of the laws and rules of the Stock
Exchange. I should appreciate 1t if you
| would give me Information as to the rules
| obtain a book giving all the rules and laws
regarding stock transactions? ?-D. X
Answer-If you sold stock short a
few days before ex-dividend date and
covered several days after the stock
was declared to be ex-dividend, your
broker should charge your account with
the amount of the dividend. The New
York Stock Exchange librarian can tell