New-York tribune., 1921-06-16
Changing Bonds Iato a Bungalow

Changing Bonds Into Bungalow
ouestie1a-.would you ADVISE ma which
two OF the following gour bonds would be
best 20 sell ct this tfuc, without much
loss &nd what fs 4 brokers' commission
FOR selling such honds2 Two ) ner cent
LisEett & Myers. per cent Pacific TeIe-
phone and Telegraph. psr cent Indiana
ssesl ana Per cent Western Electric due
"a about seven years / aN thinking of
building a bungalow, terms $1,000 cash
balance IN mortgage through the Frank
In Loan Association. Would the associs
tiea accept IN Sc BONDS AT par9 If you
viii kindly advise ne the best wnv to 20
about this matter I shall he greatly
obIigsd,-0. s. r.
Answer-Since you do not soy what
yoa paid for tbs bonds we cannot tell
how much OF less you are taking.
We will, therefore, advise you TO sell
the bonds that we think II least de-
sirsble for you to hold. The Chinese
government PER cent bonds were re-
Gently selling 80 Al, SO that yau would
get approximately $40 for your two
$500 bonds. You could then sell YOUR
Liggett & Myers, which is quoted at
around S5, and your Pacific Telephone
and Telegraph bs, quoted around SO.
This would give you agproxim ately
s2,15o. H. however, yoa have little
Neo4i VA t4ssA4N4s AsASbStN0 N1 SGAllIE Two
Of the Chinese bonds, you could sell
one, which would bring you in s23s
snstead OF $40, which would necessi-
tate adding $85 to the amount received
from your bonds to make up the $2, ,0ot
cash. The Franklin Society would not.
o. course, take your bonds at par
They might take them at the market
price. Go to any one of the large
trust companies or banking houses, such
as the National City Company or the
Guarsnty Trust Company or the Equi
tabis Trust Company, snd they viii ar
range 60 sell your bonds for you. Their
charge is IS cents S100 par value if
the trust company sells the bond on
the New York Stock Exchange, but if
the company buys your bonds for its
own account there is no charge. If you
build q bungalow at present prices it
would be wise to consider what it will
be worth IN q couple of years when
prices come down. Good bonds es a
rule appreciate with falling prices,
while bungalows depreciate.
Has Profit In Sterling. Seeks More
Question have $500. I rnortgaget
NY Liberty bonds and Invested In sterling
az from SS.5s to s3.7l. which credits
lodged IN an English bank on interest.
have withdrawn she amount. but still
hold the draft in steriing. I want to sci
and hold the money and buy sterling IL
the fall. Do you think sterling will gt
70 par this year? Would you advise rn'
you think sterling viii repeat its 1890 per.
foTrnances? I will not need the money
feE two or three years. What British OF
other bonds would you reco umend? De
you think I could invest to better advan.
age IN the fail than now? I am paying
OF the mortgage OF my Liberties and ex-
peer TO hold thern.--G. - W.
Answer.-We think that you are IN
likely 70 be able TO invest TO better
advantage than you can now. Bond
prices appear attractive TO us at pres
ent. The fluctuations in the quotations
on sterling are a matter of speculation
and on this we cannot advise. The
British SIS per cent 1929, a dollar
loan, gives you what amounts to g call
on sterling 81 $3.50, good until 1929.
Using Bonds to Recoup Losses
ouestion--I held afty shares BaItirnore
e Ohio preferred at Il, twenty shares
Atchison, ten shares Pacihc OIL at IS The
Thole lot cost approximately $500 and
ger an income OF $3.50 Per year. I can
ssu and get approximately $500, and /
thought K would be q good idea to put
me proceeds into bonds. I want to invest
.hlS SS,T0e so az to get a par value OF at
'NHS$ stsNHv AAG an income aS near SSSU
S possible. What do you think OF the
1noi!oTing: Five Kansas City Southern first
os ana iiye Northern Pacific first SIS. par
value SO, 400, income 5000; one American
smelling 5s, one Bush Terminal Building
o. one Kansas city Southern SIS, ona
s'acAa wanna Steel IS 1850. one St Lot,is
s.is.s san Francisco Series b 81, one st. Louis
noGsh western Terminal SIS, ono Virginia
asssil~2y and Power 5s, one Northern Pa
80 Ss: par value $S,600. income $3.50;
.so Atcnison adjustment as, two st. Louis
Ffrsrf arAr
cltV terminal ~, QUE st. Louis & Sout h.
Nestern consolidated As one Rio Cranae
sss par value IS e00, income 1890 I would
W pleased TO have you comment on the
eooVe combinations and make any sug-
ssrtons or substitute any other bopds
mnleh are better than those which / have
aAmed.---(f A. W.
Answer-Of the three schemes You
guttlne for investing. we think the third
the safest. Atchison adjustment 4s
Ts consider good investment, St.
A'als San Francisco prior lien, Series
= = as, safe investment in the long run,
ITansas City Terminal 4s high grade, ST.
auuls southwestern Consolidated Is rea-
Ioaaoiy safe, and Rio Grande Western
- good investment for man who
soss not worry. II would add to your
s|siety Il you substituted your Bush
seiminaI Building 5s for ST. Louis
''a'aWestern Consolidated 4s, however.
l0sukee Electric ~ per Cent Bonds
s,s. s,s..0esuon--would you be kind enough 10
wsnt1e 1e your opinion regarding the MIL
pan Hlectrlo Railway and Light Com
AMI a. sashfy~year n per cent refunding
pffs-sa mortgage gold bonds, due 194l
sepvst.,@e 70, as an investment for a con-
ur,rsys business man where safety OF
L Is. OF utmost iunportance7--
D. answer - The Milwaukee Electric
t,sllwsay and Light tn per cent re-
haGing and first mortgage Series A
;,sfs, due I941, are secured by
tSs1os mortgage on the property of
isS, company, but will, December 81,
s. a, become 8 first lien on the COM
80 s@ay entire property. In 1920 tae
rss.pany earned s19,o64,935 gross
i.saae and $4,275,442 net income. IN
TssSt charges amounted to s1,799, ,088.
p,ss .s company has paid per cent for
pSlSsstrea pslS , dividends since 1900, and has
sn = oipiaehda In excess OF 8 per cent
so-.ss ss common stock since 1908. We
nsaa these bonds a good invest
49, ior man who viii watch public
al. conditions and the earnings OF
particular company.
Urged 60 Sell His Stock
assa asseasstIon--4A lion few years ago the fnsersou-
H. ~UInpany gave thar aysfnlssv-as Z,