New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-10
High Coupon Rate Better for Old Mar

CqueStiOn-kindly let know about
six eight good safe preferred stocks
| and about the same amount OF good safe
bonds. others but In the United
o y money to and YOU'D # ike
old bonds per cent per cent per
cent. not redeemable. Am an old man
to buy St. Louis Southwestern first ter
minal and unifying per cent, 1852. Is
1T any good "A. G..
Answer-An old man would, in our
rate bonds selling in The neighbor-
hood of par than to Guy low coupon
| rate bonds selling at . considerable
discount because by so doing he Will
get the full true income on his in
vestment during his lifetime. There
may, however, be some circumstances
in your case which alter this general
ization: Fer. the preferred stocks we
suggest Atchison, Topeka & Santa Fe
preferred, American Car and Foun-
dry preferred, liggett g. Myers pre-
| ferred Standard Oil of New Jersey
preferred and National Biscuit pre-
ferred. Complying with your require
ment about the coupon rate, we would
suggest the following bonds: Northern
States Power 5s due 1941, selling at
price to yield nearly per cent; Amer
lean Telephone and Telegraph collateral
5s due 1916, Union Pacific convertible
10 QuS IVAi SOuCHcLll dClliC COuNcIIt-
BILE 4s due 1929, Southern Railway
general and development As due 1856,
Rio Grande Western first As due 1889.
The ST. Louis Southwestern IS are
good but not of the highest grade
Widow Would Reinvest $4,000
Question: am q reader of your column
in The Tribune and as j have $4,000 for
advice best suited to my needs.
am widow, dependent upon my small
invested capital for an income there
fore wish as high an interest return
as Is commensurate with safety. What do
you think of american Telephone and Tel
egraph convertible 4 per cent bonds due
1896, or stock of same? We note you rec
ommcnd Standard Oil of New Jersey pre-
ferred Would 1t be safe investment for
me Or do you think Prudence bonds or a
guaranteed mortgage prefera bic M. a. r.
Answer-Telephone stock is too
speculative for large part of your
capital. If you like the idea of buy
Ing five shares or so, enough to pay
your telephone BILL all right. Stand
ard Oil Of New Jersey is a high grade
has practically no. funded debt and it
did more than a billion dollar bust
ness last year. You might also
buy the Canadian Northern 7 per
cent debedture 1910, guaranteed prin-
elpal and interest by the Dominion
government, and Danish 3, the lat
ter to yield about per cent. Prudence
bonds are guaranteed first mortgages
and we think they are safe.
But His Marks Didn't Go Up
Queston--George II. Perkins & Co., SO
Broad Street, New York, sold me an OPP
ton on 10000 marks far 5000 option good
until January I. 1922. Marks at the time
Of purchase were quoted in your paper at
Isl. Marks advanced to 1.77a on the
18th of the same month and I wrote to
Perkins & Co, TO sell. l received a letter
back and my purchases did not show a profit
at l.77A. still hold the option and am
Of the opinion my 5000 will go south with
the birds In January. What is your opin-
ion "A. j. 9.
Answer-You do not say at what
point your option became effective. If
you had bought the marks outright you
would have had a profit of s9e, but with
$500 option the rise only reduced
your loss that amount. Presumably
George H. Perkins & Co. have your
money. We don't know when the binds
will get it.