davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1921-03-27
Investing sl5o,ooo for His Mother

Question---My mother will receive about
sieu,ooo from my fathers estate, in in
sta'llneEts over the next two years The
interest from this viii be her sole in
come ] have just received q payment Of
it as follows. Bonds--s.OOo French gov
ernment per cent, 5000 Chile govern
n'ent per cent, 5000 Deere & Go, ~
per cent. 800 GULF Oil Corporation per
cent, 1000 Atchison general As. 1885; 900
Southern Pacific refunding As. 1885; 1900
ar, Scott Is 1885, fs9 ssS SaS
ern States Power es 1871: 1000 Kansas
city Power and Light SIS. l9a1; 5000 Penn
sylvania Power and Light rs. 1851. How
suggest? Also have you any special sug-
gestions az TO investing the balance as
it comes due 2-S q.
Answer-We think that government
Of Switzerland s per cent bonds, due
per cent, and Canadian government "
per cent bonds, due 1929, selling to
yield $50 per cent, would be better
investment Tor your mother than the
two foreign government bonds you
name. Deere & Co. have shown
steady net earning power and we con-
s.der the notes 4 good investment, but
not as suitable for widow dependent
on income as a good equipment trust
certificate. such as the Union Pacific
per cent, selling to yield about $50 per
cent, maturing 1881. We think the
remainder of your list is suitable for
your purposes, except for tine sake oil
greater diversity and safety we would
suggest Montana Power first and re-
funding 5s, due 1943, in place of the
Kansas City, Fort Scott & Memphis As
and Northwestern Bell Telephone
per cent bonds, due l941, in place of
one Of the other three public utilities
issues you name. The following list
illustrates the principle of diversified
investment that might guide you in
the investment of the next installment.
Liberty bonds, United States Steel
sinking fund per cent, due 1863,
yielding $50; Chicago, Burlington g.
Quincy Railroad general (now tirst)
As, due 1858; yielding 500; United
Kingdom of Great Britain and Ireland
5hs, due 1887; yielding per cent;
Montana Power first IS. due 1943.
yielding 6.Sb per cent; New York Cen
tral debenture 6s, due 1885, yielding
7l7 per cent; ST. Louis Southwestern
Consolidated Is, due 1882, yielding
1885, National Enameiing and Stamp
ing 7 per cent preferred stock at 95.
American Telephone & Telegraph com
men . per cent at lo1.
New-York tribune., 1921-03-27
We Are Suspected Of Inconsistency

x.d the f.ot sssf s the tn
shss reasou 'sy sus,aree &e5 to The rrsune
What pussle. me Ia that sometimes YOU
recommend . bond and shortly aftervard
ssS.s sss ~: :' .sS Sa' hss ssi sR'iSsa pSi m =:
you saSss ~. t'V" s." 70 hala % On 70 ii. fn.ar. @
ssa yev "pa ,s pIsps ana T. $ aFSSS 70 anasf sell
har lnterherough Rapid Transit. Please
explain this to me,~-C. s,
Answer-~Our replies are written in
plain English and mean exactly what
they say, so far as that is possible for
the human beings who write them.
There WAS nothing inconsistent in sA-
vising J. D. to keep his 1nterhorough
IS and Mrs. l., $. W. to sell hers. In
the first place, Mr., %. had paid 90M
for his, and he specified that he was
not dependent On his income and was
willing and able to see the thing
through possible loss Of interest.
Mrs; W. on the ather hand, referred
to the bond as q lemon. The money In
i represented her savings and the
spot in list Of about $4,000 in se-
bond cost her, but it is possible and
quite probable that her paper loss is
much smaller than Mr.. DIS Besides,
her present attitude is such that if
they go lower later she can be expected
to take fright and sell at greater
loss. So we advised her to get out, and
we still believe that was sound advice.
So far as the bend itself is concerned,
we are informed by important bankers
closely in touch with the situation that
in their opinion, the worst that can
happen to the bond is temporary loss
of interest, If that is true, the plain
gambling odds are in Mr.. D.'s favor
and he says he can afford to take those
odds, We thank you for your compli-
ment, and, as long az you were puzzled
with our advice. we appreciate the fact
that you wrote for an explanation,
which we are glad to make. Invest
ment is not an exact science, where
the same proposition holds true under
all conditions, and we fear we should
soon come to grief if we treated it as
euch and tried to be mathematically
consistent. We would like all our
friends to realize that every answer is
specially written to fit the particular
inquirer, and it is sometimes colored
by such intangible considerations rs
the general appearance of the letter of
inquiry. it's spelling and composition,
and even it's chirography.
New-York tribune., 1921-03-27
Fears "opportunity" Will Not Last

Question-What is your personal and
confidential opinion of the United States
Metal Cap and Seal stock? While realize
thoroughly that it is highly speculative. |
would appreciate your opinion of the
soundness and scope of their project |
would further appreciate your opinion a
to whether you consider capital OF So
00n 900 excessive. 1nas,nuch as my oppor-
tunity is only available for a few daya. !
would appreciate an early reply.--F. A B.
Answer-united States Metal Cap
and Seal common stock seems to be in
pretty good supply in the unlisted
market at from Sl.50 to $3.50 a share.
This stock has disappeared from the
Curb and has been hawked about at $40
or more a share among the unwary for
months. In our opinion the s4,0o0,oo0
common is mostly water, which looks
nice under bridges. DO not worry
about your Opportunity" vanishing in
q few days. Nosh used this argument
to fill the Ark and he meant what be
said. but several persons We might
mention who have since advanced the
same plea were not quite so sincere.
We do not give personal and contiden-
tial opinions. If they are not we'll
enough grounded to print we keep them
to ourselves.
New-York tribune., 1921-03-27
Buyer Uneasy About Stock in Gulf

Question: ana daily reader of your
haancial page, bought ten sharcs of
Atlantic Gulf and West Indies at 81 Z "A
share. The same day that stock took a
drop from 60 to 54's and has been com
10 the safety of that company aud. again.
feel that ii has heen paying dividends for
the past five Ncars, which makes me thlk
il worth buying a few more in order TO
average down. Would YOU be kind enough
to inform me- what is tho future posi-
bil,y and financial position Of this com
pany?-A. S.
Answer Recently the Atlantic, Gulf
& West Indies Steamship Company had
to defer action on its preferred divi-
dends. There is practically no pros
pect of a continuation of the $40 COM
mon uividend. Your purchase of the
stock was a blind gamle, because you
knew nothing of its condition. We
cannot offer an estimate of the COM
panys prospects until we know some
thing of its plans for getting out of
the present difficulty You have only
lost about $500. and it is lucky, we
think that it did not cost you more to
find out that other people know more
about speculating in stocks than you
do. The man who sold the stuff short
has your money,
New-York tribune., 1921-03-27
California Packing

Question--Wili YOU tell me what you ca n
about California Packing Does the ar
sence of preferred stock ant! OF bonds make
continuance of So dividends proha bic :?
What kind of management has the com
panye | have been told that next dlVi-
dend due on American Druggist Syndicate
Will not be paid. Is this information or n
opinion -. {.
Answer-The California Packing Cor
poration now has outstanding 472,0l0
shares of common stock with no par
value The preferred was converted
into common at one and one half
shares of common for one share of
preferred Earnings in the year ended
February %. 1920. amounted to $7,242,
402 net. After the payment OF pre-
ferred and common dividends there was
surplus Of S5,794,S25. Dividends are
something you will have to judge for
yourself The March, 1921, dividends
on the American Druggist Syndicate
were passed.
New-York tribune., 1921-03-27
Wants His Holdings Criticized

ouestion--Wiu YOU kindly criticize the
following holdings, having III mind the fact
less than $4,000 a year and Is entirely de
PENDENT upon this salary ana the return
from such Investments as ne IS able 70
make from his savings: $4,000 fourth a.
lake Erie consolida ted per cent, la49, at
5sia; 1000 harrisburg Light and Power
;.rst . per cent, 1852, at 1874 1000 United
Kingdom 5'2s 1929. at Ss7s 900 Chesa :
peakc g. Ohio convertible as l9Jo, at
7A.s; I. 900 Southern Pacific convertible As
1929. at 79t. 200 Scranton Electric ten
year gold So. at 80? Also have few
shares in local bank. bought a number
ef years ago and which pays 10 per cent
and is quoted 3oo.all. and reel estate
bonds is in each case about the presen,
market Would you suggest the shifting
of any OF them, and what would you sug-
scst permanent addition to my hoid !,
dollars now available? =? II more bonds. OF
what kind. or would YOU suggest few
shares of some OF the better preferred
stocks to which YOU refer very frequently.
Answer---We think your list well di-
versitcd and safe with the exception
of the Wheeling e. Lake Erie As, due
l9A9. This is bond of weak road
and under present railroad conditions
is, we think, somewhat speculative. IT
YOU were to sell this and add to the
proceeds some Of the additional money
you have to invest you could buy City
of Borne (Switzerland) 8 per cent bonds
due l945 selling at 96. The next in
vestment could then we'll be in pre-
fcrred stocks such as Montana Power
7 per cent and American Car & Foun-
dry per cent.
New-York tribune., 1921-03-27
Her Bonds Have Changed With Year.

Question---Seme years ago | purchased
bonds of the City of New York, 1862, "a
per cent, Chicago, Milwaukee g. st. Paul
gold hords ~ per cent. Inter
borough Rapid Transit first and refundlns
mortgage per cent. All those were pur-
chased as a source Of income by middle
aged woman depending on this for income
and living. l paid between $50 TO $50 a
share at the time of purchase. These
What do YOU think OF them al present in
case I should mead cash? l also bought
during the same time Brooklyn Rapid
Transit six-year gold notes . per cent which
were due July. 1913. Al that time instead
OF taking currency | took same three-yea
Iotcs. per cent. to be payable 1921.
the company is in the hands
of a receiver. | sr extremely worried on
the Brooklyn Rapid Transit situation, in so
far as capita and interest due are con
cerned.-Afrs. A. IL. NJ.
Answer-Your City of New York
4As are sound. The Chicago, Mil
waukee g. st. Paul convertibles are
reasonably safe. The Interborough
Rapid Transit IS are, under present
conditions, speculative and il you can
afford to take the loss involved it
would, in our opinion, be better to sell
them and invest in something like
Government OF Switzerland SIS. The
Brooklyn Rapid Transit situation seems
in about as bad state as it could be
in, and if you can afford to we would
advise waiting for while before sell
inr
New-York tribune., 1921-03-27
FINANCIAL MEETINGS
THE CHESAPEAKE AND OHIO RAIL
WAY COMPANY
NOTICE OF ANNUAL MEETING

NOTICE is HEREBY GIVEN that re
Annual Meeting Of the Stock holneIS q
The Chesapeake and Ohio Railway CON.
pany Will be held, provided IN ~
bylaws. at the general office OF ,,i.' .ns
glnia, on Tuesday, the 18th day o. Ap'A'
teel. st eleven O'Clock A. NJ,
On for the election of direefers'
CD to approve and consent 20. py ~
or otherwise IS may be provided oy iAr
ana subject TO any necessary spp,,osss =
or consent by public authority the 49,
to the Company. or the aeanisitien ossS.- J.
wise by the Company II ana 20 a,Irnss .nG
tent, authorized by law. OF the fAn,o.
and property, with the apppFsehsSss,,ss -
thereof of The Chesspeake anu SSt.S SnS
Railway Company OF indiana IN ~.
lhe Company owns substantially All 'as
capital stock o. ,se
fS) TO authorizs and consent 10 ens
form and terms OF any instrunen. -
lease Or otherwise in the premises
may be submitted TO the lneetihs, s,orsrm
20 10 approve. ratity sgu ~ su-
thorized by the Board CT ulIsr.s 20 as
by the Executive Ceminittee ~ nrs-
Company, whether pursuant 20 sh,,aers w
vious authorization by the s,o1st.ss 10
or otherwise, may be supi'''S
the meeting; and nr.ineSs
a. may lawfully come before 'n' 'N
Ing. .,,.,a
The stock transfer books will be eiossi
at the office OF the Company, 80 ..,rss v
broadway, New York City. on 'suweiys
the 10Th day Of March, 1921. sssnsd ~ on
Wednesday,. the Goth day % April '''~
at ten O'Clock A. Nj.
BY order OF the Board OF Directors
a. TREvVErT, secsels''
New-York tribune., 1921-03-27
Humble Oil's Credit Good

Question-Can you advise relative to the
safety and deslrability OF Humble Oil and
Refining Company two-year per cent gold.
I.ote due March 10, 1875? Would this ba
Q X for snau investor with several
Thousand doliarss-F, Il.
Answer--lf SO short term security
fits your needs we know of nothing
much better than the Humble Oil and
Refining issue. The company is a
Standard Oil concern and its earnings
are SO large it is entitled to good
credit, we believe.
New-York tribune., 1921-03-27
Has Profit. Considers Exchange

Ouestion--Fron the viewpoint of safety
is it good business for me to sell my 200
per cent Japanese loan, owned at 60.
,oa M Der % cent sHa aSs at or pnSic
Service os New Jersey Ut 81, St. Paul &,
Kansas City AZ. 1941, at 6ts.. Seaboard
Air Line 6s, 1s45, al 4s, Southern Railway
Ar 1885. at 5s Ill r.
Answer-Whether to sell your Japa-
nese bonds and buy Southern Railway
41.s, due 1886, is a matter of personal
opinion. II youi' observation of polit-
ical conditions as affecting relations
between the United States and Japan
leads you to believe that there is
possibility of war between the two
countries it would be better to sell the
Japanese bonds and buy the South
ern bonds, We consider the Southern
Railway AIS the best of the five you
name
New-York tribune., 1921-03-27
Honinp for GOODYEAR

Question-Klndly give mo an outline or
Goodyear Trio and Rubber Company as
to tho stocks worth, present value and
outlook for the future. Is The business
on a sound basis? viii the stock return
to the high figure of last summer
V. III. r.
Answer--The Goodyear Tire and Rub
Der Company has been so badly man
aged, and has suffered so much from
the collapse in prices, that we think it
extremely unlikely that the stock will
ever again see last summers high. At
any rate new financing will have to be
negotiated before start can be made
toward any such attractive consum-
nation.
New-York tribune., 1921-03-27
Old Colony's Dividend Seems Safe

ouestion-Pisase explain the terms of
the lease OF shs New York, New Haven
& Hartford, of the Old Colony lines /
have been advised to buy the Old Colony
stock as an investment because it Is a
leased line and so valuable to the New
York. New Haven & Hartford that the
lease would not be surrendered in case
OF receiveeship. and therefore the per
cent dividend rs guaranteed.--H. c. B.
Answer - The Old Colony Railroad
owns 634 miles of line the most i'm
pertant of which is the 120 miles of
main line from Boston to Providence; (;
in other words, the eastern end of the
New York, New Haven & Hartford. The
Old Colony is leased to the New Haven
for ninety-nine years from March /,
1898. The New Haven assumes all liza
bilities of the Old Colony and agrees
to pay per cent on the s2s,as4, 900
Old Colony stock. 1t would appear to
US that receiver for the New Haven
would be unlikely to break this lease,
although it is conceivable that he could
delay payment OF the 7 per cent guar
antee.
New-York tribune., 1921-03-27
Replacing a Womans Pennsylvania
Stock

Cuestion-My sister ia single and de-
pendent on small income derived wholly
12S shares. OF Pennsylvania Railroad stock,
ao9uirsd through much self if-denial, at any
though she can afford, at consider BILE in
convenience. to take \ temporary loss in
income and await q turn in the tide, it
best course. owing to the uncertain oendi-
tiets ahead TO sell obolt half Of the
s,ock stock, ABOUT sixty shares. The Hi4tv shares
sound investment, provided sha sells the
stock at he market price, that would re
turn nearly the same amount so that her
princpai secure, or do YOU think it would
be better. to hold on and await develop
ments3 I am very anxious that she should
do the best thing under the circumstances
and not make any serious mistake. To
Mrs. /. H. r.
Answer-If your sister sells her 1875
half, as we believe she should for
about S4,375, she would have to get
about Sc per cent on the reinvestment
to equal her present return of $500,
which is too much, in our opinion, for
safety. About the closest approXima-
tion we could recommend for her would
be an investment like the following:
81 900 Canadian Northern debenture rs,
1910, to yield nearly per cent, guaran-
ted by the Canadian government;
$1,000 Danish Consolidated Municipal
25-year sinking fund gold IS, 1946, to
yield over 8 per cent, guaranteed prin-
cipal and interest by Endorsement of
the Kingdom Of Denmark; $1,000 King
dom of Belgium IS. 1871, ut about SO,
to yield little over per cent; $4,000
New York Dock first mortgage 4 per
cent, 19A1, at about 661a, to give cur
rent return Of $50 and yield Of 6.57
per cent. These bonds will require
about $4,000 and the current return will
be SS10 annually. They are safer, in
dvidually and as whole. than the
Pennsylvania stock. If your sister is
afraid of the Belgian and Danish bonds
because they are foreign, she could sub
stitute Bethlehem Steel Marine equip
ment rs, 1885, at about 95, and North
western Bell Telephone Is, l941, at
about 81. She is lucky to be able to
switch from her Pennsylvania common
stock with good bonds with so nearly
the same yield.
New-York tribune., 1921-03-27
FINANCIAL MEETINGS
SOUTHERN rAg1rc COMPANY.

6VG1 A14MsS EAOAGlG COMEANY.
NOTICE OF MEETING.
Tho A3npsi Meeting. Of the stoekholders
81 me Southern Pacific Company viii Be
hsls hnsho.s~ At ths .aes. Scs q thi. company ia
wsdnesdsy, Aprii :. 1871. al tweivs psioSE
poses. viz: ~
I. To elect fifteen Directers
2, To consider and act upon all question:
end inatters which may legally ceua befoye
the meeting relating to Federal control Of
the Cempany's properties under the aet Of
Cengress OF March Fl. 1918 or any agrse-
msnt or settlement with ths Government IN
respect thereto. or relating TO the ter1nina
tien OF such Federal centrei by tho, return
OF the properties or otherwise, and I or re-.
iAting to conditions resulting from or sue
cesding such Federal coptrei, and generally
All questions and matters growing out OF OF
incident to such control, termination there
OF, or following conditions, including the
guaranty Of income under the Transporta,
ton Act. 1920, and settlement thereof
D. To transact all such other business a,
may legally come before the meeting in
cluding the approval and ratification OF all
action Of the Board of Directors and OF thu
executive Committee since the last annual
meeting OF the Stockholders OF this Com
For the purposes OF tho meeting thu
books for thc transfer Of stock Will b
closed at o'clock r. NJ. Tuesday, March
-. is2l, and will be reepened at ~ O'clock
A. -. Thursday, April Z. 1921,
By oraer Of the Board Of Directors.
HUGH NELL. Secretary.
New-York tribune., 1921-03-27
Italian City Seeking
$4,000, 900 Loan Here
Florence Officials Need Money
to Pay OFF Heavy Deficits
of Last Several Years

cipal authorities of Florence, Italy, plan
to seek loan of 100,0o0,000 lire (s4,-
100000 present rate) in the United
States, advices to-day by the Depart
ment of Commerce said. The proceeds
would be used to pay off heavy deficits
which have been accumulated by the
municipality in the last several years.
If necessary, the advices said, the
authorities are prepared to give liens
on architecture and art treasures be-
longing to the municipality as security
for the lOan
New-York tribune., 1921-03-27
Safety Of Puts and Calls

Question: would like you TO sive me
tull explanation IN. IN regard ,s to calls ,a ana
and. puts ssfev than buying or selling
stoeka7--vI. b.
Answsr--A call is a piece Of paper
which says that the holder has the
privilege Of buying from the giver of
the option a certain number OF shares
of stock at . set price at any time
within named period, usually thirty
days, and on one days notice except
the last day. The giver of put guar
antees to take from the buyer stock
at given price. The price is always
away from the market, above fpr calls
and below for puts, and the distance
A straddle or spread is a combina-
tion which gives an option both ways,
that is, 1T is both put and call,
and either or both can be exercised.
The costs of options, as puts and calls
ara called, varies with the state OF the
market and the activity of the stock
The giver of the option protects him
self by placing orders away from the
market, II possible at more favoFa-
BILE price to him than that named in
the option. For instance, If he sold
you a call on 100 INT common at So
when the stock was selling at 80,
charging you sls7.50 for it, he would
order his broker to buy 100 as near
under so as he thought he could get it,
depending OH how close the market
for the shares was. Then, if it went
to So and you came along with your
call he, would have the stock for you
and he would make the $l37.60 you paid
for the call and the difference between
what the stock cost and your call price.
If the stock didn't go high enough to
induce you to exercise your call he
would sell it. The price of the call
provides the option seller with profit
and margin to cover difficulties or
losses in the hedging process described
above. Buyers of options usually de-
mand that they be jndorsed by a New
York Stock Exchange house. There is
an informal market for them on New
Street Some people believe options
are safer than margin trading, because
the maximum loss is fixed and known
in advance. On the other hand, if you
pay l IA per cent for your option three
points away from the market the stock
must move AS points in your favor
to cover expenses and the spread be-
fore you are even. After that you make
500 for every additional point. Incl
dentally, each 500 might be only a
foretaste Of other hundreds to come,
and if the speculator is unwary the
stock may stop moving his way and
react, wiping out his paper profits. In
short, we think it takes keen and
nmble trader to handle options. The
tyro could dabble in them as long as
his money held out without ever max
ing nickel except through blind luck.
New-York tribune., 1921-03-27
Imports of Wool Increase
Dealers Fear Effect of Dumping
ON Market

In anticipation of higher tariff rates
imports of raw silk and raw wool dur
ing the current month have increased
greatly. Reports from the wool deal
ers in Boston indicate that there is
some apprehension as result of the
large amount of British, South Ameri-
can and South African wool dumped in
that port In the last few days.
Imports of raw silk from Europe
have been fairly large, considering the
present state OF trade. Imports from
Japan. on the other hand, are not so
big
New-York tribune., 1921-03-27
Central Vermont Refundinx 5.

Question: have had recomme nded to
me Central Vermont refundng 5s of 1880
as good purchase. understand that
principal and interest are guaranteed by
the Canadian Pacific Railway | should
be glad to get your opinion of their value.
III. c. p.
Answer-The Central Vermont re-
funding 5s are guaranteed. principal
and interest, by the Grand Trunk. not
the Canadian Pacific. The Canadian
government has taken over the Grand
Trunk through the purchase of its
stock, but does not, we believe, guar
antee the Central Vermont bonds
They are, however. good investment
in our opinion.