New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-03
Better TO Hold Katy a.

:. Questlon--My father who died recently
s asn. an estate which have been trying to
mother. the sole beneficiary. / vii, greatly
aappseeaaso hearing your Very frank advice
SSsoneernins one or two matters OF dors..
rnliss had scventyhve Missouri Kansas e.
ieAas hrst Z per cent bonds, now selling
aMrouhd 81. He also had few Hudson &
MAhnaStan refcndtng 5s, some Eric priors
ana Louisville 4 Nashville. Southern Rail-
way Monon As He held 100 shares of
fe r,on a ana oo l0e Great Northern pre-
There was also debit account of some
$500. What would like chiefly TO know
Is your opinion regarding these seventy
I'VE Katy bonds. aud ii you deem Il sd
pIsaole to sell a large portion of them and
reinvessf This would have to be done at
STU SIX months deferred interest pending.
when would OF course, have to be fore
s sae II sold. However. better protection
that she mas too much in one thing right
81 present Would you also be good h
20 anVlse me regarding the stock. and
whether you would sell the Great Northern
now Ut was acquired at about CT. SO
enere would be no loss sustained) or hold
Finally. what do you thing of Il Tsxa p'i OF, :
especially at its present value ?--F. d. S.
Answer-There have been various
plans made for the reorganization of
the Missouri, Kansas & Texas. In the
1917 plan the first and second mort
gage bond honders were TO be treated
Ialriy well. A new plan, however, is
pending adoption, by which the ser
ond mortgage bondholders yet an in
come bond only. 1t is understood that
the first mortgage bondholders have
not participated in the reorganization.
since large part of the firsts are held
IN Holland and the reorganization com
mittees found it impossible to get the
Dutch holders in. We agree with you
that seventy-five Of the Katy first 4s
are too much for widow to hold. AS
Stunning that these first 4s are not
disturbed in the Reorganization, they
will have to get either cash or secu-
rites acceptable to q considerable part
of the holders for their unpaid inter
est. The announcement Of the reor-
gsnization plan is expected any day
and we would be inclined, il we were
you, to see this plan before we sold.
This Is a matter of opinion, and it in
wolves BIT of speculation because the
plan might react adversely on the
market price of the first As. We sho1ld
be inclined to hold the Union Pacific
stock and to sell the Great Northern
stock, which is preferred in name
only. We think that the Erie prior
liens are a good investment, if the
and as the June earnings come in
there appears to be growing chance
that the roads have actually turned
the corner. The Erie is better rail
road than many people realize, but,
of course, it is absurdedly over capt.
talized. The Louisville g. Nashville
Southern Railway Monon 4s are safe
investment, but one it tempted to ad-
wise shifting into some of the attrac-
tive higher coupon rate bonds, espec-
tally for middle-aged woman. For
instance, Northwestern Bell Telephone
rs or Kingdom of Belgium 8ss The
Tribune recently made an analysis of
the assets and earning power of the
Sinclair Oil, Standard Oil Of New Jer-
sey and Standard of New York and
the Texas Company, and in our. opinion
the analysis was not particularly
favorable at present market price to
Texas. furthermore, we would be
Inclined to get into Standard Oil of
California rs rather than into an oil
stock for the investment purpose you
have in mind