New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-29
Seeks to Borrow $4,000 on Church


tell me the names OF insurance compa
uics and savings and loan associations
which make q practice of oaning money
for church building Tho Methodist
church OF my city has now building
assessed at $50. 900 and we expect to make
$1,000 improvements, making the total
TO borrow about $4,000 Tho security Ia
really more than two for one. but the
trustees arc willing to secure the com
pany making tho loan in any way they
may w!sh,P. II. b. tvirginia).
Answer-The Metropolitan Life In
surancc Company informs us: eve
do not lend on churches, schools,
theaters, factories or garages. Our
loans are confined to buildings used for
dwelling purposes Of all kinds, office
buildings and retail store properties.
This is what might be said to be the
general practice Of most Of the life
insurance companies" About the only
go to your local banks. You would
have to show that the expenditure was
justified and that the church could
repay the principal and interest on the
$4,000 loan.
Seeks Investment Maturing in 1924
AuSBtlOn--WNI
opinion of American Gas & Electric Co.
preferred and Superior Steel Corporation
first preferred Investments? How do
Chemical preferreds have few shares
OF each bought at par) and contemplate
adding to them. but would greatly appre..
buy these as fairly permanent invest
ments. Can you refer me to high grade
note or bond maturing In 1924 (before
August OF that year, yielding ~ or
WI "a 500
$500 denon!nations7 I now have $1,000
Canadian Pacific notc maturing March
tiles with the idea OF preparing to meet
a possible obligation in August. 1874
NJ. c. l..
Answer-We think both American
Gas and Electric preferred and Superior
Steel first preferred are good business
mems investments in about the same
class as Virginia-Carolina Chemical
preferred. If you make an investmen t
in securities of this class you must
remember that you should follow the
trend Of earnings. You cannot safely
put it away and forget it, we think.
Armour e. Co. per cent debcnture
notes, series of 1924, mature June 15
1924, and come in 500 and $500 de-
nominations. They are a good invest
ment, in our opinion.
What Convertibility Feature Is
Question: would like your advice
about Southwestern Bell Telephone 7s. 1t
is convertible bond. I would like to
know whether it Is best to hold 1t for con-
version and how do | gain by go doing,
and why is 1t convertiblet do not under
stand that part of It, Also have been Of
good investment for a person who Is single
and has to be careful? 1t pays per
cent, and am told Is easily converted into
stock. 1t seems to Southwestern Bell
sounds more sound, am I mistaken +?
Do you think United States Rubber will
continue to pay per cent dividend on
stock? I have held few for nulnbe
of years How about the preferred; Is
1t advisable to change it into that, and
buy in preferred TO make it interesting
enough Miss B. Y. b. f.
Arswer-A convertible bond Is q
bond which you can send to the com
pany issuing 1t and have it exchanged
for some other security at q fixed
price. Generally this privilege expires
at a specified time. The Southwestern
Bell Telephone Is are convertible into
7 per cent preferred stock at par up
to maturity. If the market price of
the stock should go above par before
the expiration of the convertible priv
lege you could exchange your bond
and thus make profit. In regard to
Barnsdall Corporation 8 per cent bonds,
we consider them a good investment,
reasonably safe. They are convertible
till maturity into twenty-five shares
of stock Of the company for each
$1,000 bond. Par value of the stock
is s25. We agree with you in thinking
that Southwestern Bell rs are more
conservative than the Barnsdall Cor
poration. We cannot predict dividend
payments on common stocks. We con
slder the United States Rubber pre-
ferred good business mans invest
ment. You can buy as little as one
share.
Bonds and Stocks Roth Attract Won,r