New-York tribune., 1921-12-18
How to Invest $4,000

question: am intrusted by \ friend. q
woman of about fifty, with the Investment
OF a sum in excess Of $50, 900 She has
ample income at present, and proposes to
reinvest any income from the above funds
for period OF years. In order that you
may judge this problem better, l giving
you list of present holdings for your in
formation and criticism She has other
income in addition to this lisk Her present
holdings include the following: Bonds
Midvale 5s, Pennsylvania general AS, Ca
madam Northern equipment trust. 1895;
Chesapeake & Ohio 5s, 1929; Hudson &,
Manhattan ref SIS: st. Louis & San Fran
CISCO P. L. IS and adj. 6s, 1855; Detroit
Edison U.s. Belgium 6s, Chile Copper cow.
81. American Tel and Tel Us; French "a /;
Sinclair conv- 7las Preferred stock--Amer
lean Smelters a; Allied Chemical and
Northern. Common stock-Alled Chemical.
Allis-Cha.mers; Gillette Safety Razor Co;
Chino: Ray Nevada; Inspiration. Kenne-
cott Copper Range and Miami For the
now to be invested the following list
Is presented: Bonds-French Z lAs City of
aarseilles 6s; Belgium prem. Bel. ss; Chile
IS. Rio Grande do Sol as; Kingdom OF Den
mark So; Wisconsin Elec- Power IS, 1915;
Oklahoma Gas and Electric TVS. 1941:
Ohio Power, series A rs; United Railways
Of Havana, equipment trust 7ias; Mani
toha Power Is, 1s41; Kansas City Light and
Power IS, t94l. Philadelphia Co. 6s. 1914;
New Orleans. Texas. Mexico 5s, 1885; st.
Louis South Western 5s. 1859: Southern
R R. As 1856: Northern Pacific As
v.
B, eo14: American Ag. Chemical 7sss,
1881: Central Steel list mortgage, l941;
Keystone Steel and Tube is. 1851; Kennc-
eott Nat. I rs. 1941; Winchester Arms 71as
1871; Solvay & Gle Ss 1927; Goodyear Tire
%, 1871: United Drug SIS, 1871. Diamond
Match 74s, 1871; Sharon Steel Hoop. 1941.
Preferred stock-American Car and Foun-
Dry Bethlehem Steel Z per cent; Famous
Players Lasly; United States Steel Amer
can Smelling and Refining; United States
Rubber. first preferred; Standard Oil of
New Jersey United Tank Car. common
stock; american Car and Foundry: Amer
team Tobacco 81; Atchison. Texas Co.;
Union Bag and Paper Co; United States
steel: Woolworth: New Jersey Zine: Union
Pacific: Standard Oil of Indiana; Endicott-
Johnson; P. Lorillard; Northern Pipe Line
lou Will note that l recommend scattering
'ha funds IN a large number OF different
securities placing only a small sum in any
ohe issue, ana would appreciate your ad-
wee and criticism of tho list, having in view
me circumstances I have mentioned I
would also he glad to have suggestions for
suy new investment stocks you may rec
emmend.--A. s
answer-You do not say in what pro-
portion you have divided the money al
ssaay invested as between bonds, pre-
.@t-c9 STOCK and common stock. Pre-
lelfea sSocrs tha. your friend has are
none oi thefa of the strictly investment
c'ass and Que of the bonds, viz, the st.
LOUIS 4 San Francisco Adjustment es.
s n2e IN the Investment class and the
sinclair as ara III the class of busf-
sess men's invcstnients. That being
so' We .hirK that I. least rs per cent Of
sae Total invsst.noas oush. to be in
.afos zad not ovc~ IS per cent il, the
we lssue: O. bonds we have inst
naplea and the preferred and common
s.',*~ ssack*~ Great Northern sscu.d be
sS.s sx.,s nm-ng tae conmon stocks, rot
's.'sL.tanntng it is called a proicrred
ssols' because al common stock " the
ssme&ny has beea retired. We gag
ssss Saat yeu delay the purchase OF
s.snaA ~ ) and City Of Marscilles 6s
ss 'aJn~ls o. SC. or ;.ntil The German
,a..ss.'.asg sa.s.g question has been definitely
' ,eS' and af the railroad bonds we
Ss-1c suggest tas substitutioG OF
sse'9saac e Southern sosunding and ex-
e,l;s sss.en s@s, due 1855, for the New
,ii:aans. ,,i..s.is. ieSss &. Mexico. and the SUBJ
is..eulion G. V,rginian Railway first SIS.
ae .sszs -o- The St. Paul convertible
..,,,a ~ among tho preferred stocks we
.'". .oa'e agost'tute BALDWIN Locomotive
st.sscsses for Famous PIayars-Lasky.
s.saE .as'sE the somrnon stocks we would
wps'ususo Norfolk & Western for
..ootwcrth aad American Bank Note
ess onioa Bag and Paper, and Ameri-
T. a tslsphone and Telegraph for
AZ s"nrany- In Our opinion you
ssn >, quite right in making the invest
1sns thoroughly we'll diversified one.