New-York tribune., 1921-10-23

ABOUT LU3. TO ylelQ b.uO per cent.
Weak Railroad Bonds
0gestoH-.I am snyions = learn YOU vow.
] hold in trust You viii notice that this
contains sixty nine $1,000 bonds, Of which
sixty-seven ara railroad and two trac-
tons. You will also notice that they are
all second grade and speculative bonds
You may not find any really high grade
bonds in the list. They are all fixed in
come bonds at all. Compared with the
present market prices, the losses and
profits are approximately equal, the losses
slightly exceeding the profits. The largest
loss is about 25 points and the largest
rrofit about ~ points. Do you think il La
reasonably safe to hold this list az it
and consdering only safety of prineipal2
Do you think the market price OF the list
in value than TO decrease? OF course the
average income from the list is pretty
hlsh ana would still be good, even IL
few Of the bonds we're to suspend their in
terest payments for time. From the
standpoint OF sa fety OF principal would YOU
suggest any changes, switches other
many OF the individual bonds in the list
arc IN the doubtful class but, applying
INC pronabie future of American railroads,
Is the $4,000 or represented In this Iist
OF bonds reasonably safe? Probably the
weakest road in the list at the present
time is New Haven. Would you advise
selling the two New Haven bonds or let
tnen take their chance with the rest Of
tue iiSt List OF sixty nine railroad and
traction bonds. all 81 900 bonds. showing
hpproKlmate purchase price OF each bond
gnc gnc NeW York state Railways consoli-
dated 4las.: 90; one Interbcrough refund
Ing os. 5f one Toedo-St Louis &
western first H. 80; one Chicago &, Alton
-, 80; one Western Maryland first 4s.
~; one southern Rsilwny genera! 4s. 81
ore Norfolk Southern refundIng 5g. so: one
Sn,,t,n. sv,,"nh Hout tnsrn 5s -! one Colorado
Southern refunding 4tas 81; one New
tlaVen convertible debenture 6s. SIS: ono
MeW sn its yen convertible debenture As, 1885.
~ one Cincinnati & Ohio convertible 4Iss
W one Cincinnat x Ohio convrrtibie ass
~; one Long Island debenturc 5s 1897 IL.
ono Long Island debenture 5s. 1887. 81:
une , MISSOURI. ~ kansas d. Texas first IS. SO;
one Cleveland. Cincinnati Chicago & st.
ntr niupas general 4s' G5; oae Cleveland Cn-
t2s' 10; one Eric general 4s. 1895 54: one
hils general As. 1896. ~: one Erie GEN
eral IS, 1895. 40; one Chicago Great West
o. one chicago Great Western 4s So: one
fs9on rs, islana refuneing 4s. sl. one Rock
lSiAnr' Arkansas & Louisiana 4:bs 70.
one ST laul Kansas City tiss "a: on.
Missouri Pacific general 4s. 90. one Mia.
sour sn,e. facific senerai a., 5s; ono Missouri
racilic general As, 55 ore Missouri Pa
'd vn1r general 49, 6S; one st. Louis south
,sa wes,ern consolidated As 6i ono St f.oui.
~ SSNeiuY Iertfliual %, SO: four Ninneano,fs
& st. Paul extension 5s. as; one Minra,n
qns q - Louis refunding fs, 43; orc
Iowa central refunding As IS ono Tes
Molnes & Fort Dodge first ia 40, ono c.
bbosrd b Air Line refundtns 4s, 65: one Sea
board pourq an ar Line convertible ss AL one Sea
board Air Limo convertible ss a. ors 60
board Air Line convertible Ga a.. ons
r4r0 prior en PF'OF 4 lien nn. = 81 one Frisco
one frisco prior lien, So; one Frisco
pr'or e zen os 70; ono St Paul convertible
o,,o u.s. o. g. one -. Paul funding 4,.s. Sc:
one one ~. faul funding 414s. IS. one St paul
funding Us, 61; one Denver g. Rio e,,snda
cConvertble 9las 6S; one Denver a NO
.frande Improvement bs as: one Danyer e
hlo Grande refundlng 6s, a.. one Dsn,,s s.
sS'o Grando refunding 5s As: one Raltirnors
~ 81, Dn'o reiunclng 5s, 81; one Baltimore A.
Gb;o ,effumdding rsf,,,,dg es' 80; ono Baltimore &
Sht reeeunding 1s. II, one Baltimore q
ono ono rounding Is. 6S one BaitiInors y
ono ono nsli,l refundng IS. So ono Baitilnors Z
ONO convertible ~ q, SO. ono Ba1.j,,,nre e
ONO convertible. Ga one Baftlr,nrs 1,n,,I "'
a a Sincinnati division Is. So: one RaItino~a
"o'suo q cincinnati divson As, 57-W. Il. G.
Answer-Possibly there is a legal
question involved in your holding some
ol your ponds tor a trust fund. Dis
regarding the legal question entirely.
We "oulo reason somewhat differently
than you do. We think the more con,
servative thing to do would he n saiI
most of your bonds, not all Of than
and buy high grade bonds. On ths
other hand, il you desire to take cer-
TAIN amount Of chance in regard to tho
pohos. you could weed out the worst of
then and take your loss Our reesnn-
ing Is somewhat as follows: With the
weak list that you now have tbera ia
high degree of probability that noors
than one OF your list will prove bad and
your final loss on them will be consid-
erapiy greater than it is now. On the
o1her hand, We're you to weed out the list. |
SO that you held only good investments
ana speculative investments THAI
appear to have good chance, we think
Ihst IN 1ne long run your total princi-
pal would be larger than it would 10
you risked the loss involved in boldin1
the list as 1t is now and trusted to the
law or averages. Going ON this urinc;.
pie, we would sell the two Toledo a
Cincinnati Division, Baltimore &. Ohio
As; all five of the Seaboard Air Line
bonds; hold the fiscal prior liens and
the Erie bonds, sell the Chicago Great
Western. the Minneapolis & st. Louis.
Iowa Central and Des Moines & Fort
Dodge hold the three Rock Island
bonds, the Missouri Pacific general a.
and the Denver Rio Grande bonds:
nold the st. Paul bonds and the New
York State Railway bonds. also the In
Az NAtNti6 cos Sell the NOR
folk Southern bonds, hold the ST. Louis
Southwestern bonds, hold the two Colo
RADIO q Southern bonds; certainly sell
the New Haven bonds, hold the Chesa-
peake & Ohio and Long Island bonds.
and also the Missouri, Kansas E. Texas
first As; sell the Toledo, st. Louis &
Western, but hold Chicago e. Alton s1.s
the Western Maryland first As and the
Southern Railway general 4s, and cer-
tainly hold the two Cleveland, Cincin-
natl. Chicago e. st. Louis bonds. With
the proceeds from the sale Of the bonds
we have mentioned we would advise you
TO buy list Of about ten high grade
bonds, such as we often recommend in
these columns.
Gasoline Supply Stations
Question-The x. T. Oil CORPORATION 3,-
tends to establish gasoline supply station.
throushout the country. The stock is sold
by L. NJ. JnlStead 3 Co, 100 Broaawsv
New York city also have haeo nfss-.i