New-York tribune., 1921-05-22
Prospects for ssesAera Rsil~a,

Prospects for Sseshern Reii~as
as to the eility that dividehds en-
southern Railway preferred will be main
sssnsd; .s.n ~ Do yoY regard tAis ss 2 rsassn'
TT~sM ss0a 8, 'as''f'' '"shs 'hv'a'"'A''--
Answer-We regard Southern Rail-
way preferred as g Stassnsbly gsed
business mans investment, but eaNnet,
Of course, undertake to say II ths pre-
ferred rate will be continued or not,
The South is still suffering from q
severe depression due 70 the fall in
the price Of eetton. This 10 temporary.
Ths Southern Rsilvey hss, during the
psst ten years put Ito main ifne ffsm
New Yerf to Atlanta in hset elsss
shape. The South has zoo mueh seit-
road mileage fer the tRaMe that the
country has been skia TO oeer. Dur
ms the war RaFlea, With the Algk prses
Of cetton, the Southern Ra!lRey got
the largest trssse In its history, .eAd IL
Was prosperous and showed esed earn
ings. Despite shA depYssaiap, the South
10 still developing. Tho iehs period Af
high -priesd eattqn enabled ths plsnters
20 pay oR debts, and probAsiy many
the esme for the fret tims in their
lives, The progress tket has hasn
made in divereihed ssrisulsurs was ret
lost even during the period whea est-
ton was fay and swAy che most remu-
nerative crop. Birsnsnghsm, wh!sh 10 on
the Southern Railway, 10 ene Of the
most rapidly growing indussTisl cities
In the United States. The Aisbassa tsx
laws .ese Favorable to capital, and the
port of Mobile, which is tapped by tbs
Southern Reilway system, 10 rapidly
developing. 1t is becoming obvious ia
mest people that the present railroad
situation csnnet continue Congress
we think, Was convinced of this befese
it pAsaed the transportation aet, and il
passed this act In expectation Of meet
ing the aitustien and changing it. In
this Cangress hiss failed SO far. 1t 10,
OF eoupae, quite conceivable that ths
Rsil1aad Labor Board will fail to see
its way toward q sound solutieR OF the
problem, and matters may continue ts
drift from bad to worse. In that ease
the Southern Railwsys preferred divi-
dend probably would not be paid. II,
however, conditions return to normal,
we think that the Southern Railway
will have better opportunity to de-
veiop and to increase its earnings than
will mest OF the reeds in the East.
Wsmaa t~ RsaRssst fer Family
Question: family trust fund OF net in
excess OF alk,oee is nse yieiding about y
per cent In eemi-snnuslJy paid interest. be-
Ing invested ln the folicsinS: Western farm
mortgages. ss,soe. maturity at Ave yfars;
American Telephone Rve-yfar notes, ". sse
si.ese; United States Lihesty sonds. sl.lss;
cash (matured sonds. ei.ess. The desire
to ,nsfssss the y.d Tsnspt tmssrnc .ss
bllity Of change into carefully seiscted 10
sues. The farm mortgages are ia the
yiduAl obligations Of Kansas farmers ex-
ainined and approved by reputable loaninE
sgsnts tsithoat rsseurss,; The Arnsricsn =.
notes. Ths okisho1ns schsoi ssnA is sSs
~ ssssy srs' Ssnas M s',s ar. u y t.
Does II AepseY TO yeu sdvisAsls 80 change
these holdings, and into what form of IA
Answer-We think at present msrket
prices thst yeu can get about z per
cent with safety in class Of invest
meats that is suitable fer your pur-
poses. We understand frsm yeur let
ter that this inveatasat. is not .
trustees Investment. IL it were, it
would have to coms within eeytain
legal requirements. Assuming that II
ID not, ws would suggest dividing UP
the proceeds SreAh the sale OF yesg
mortgages end 0klsheBag Scheol bends
among the following Investments: Cs-
madam Northern 7 per cent debentuYe
bsnds, due 1870, guaranteed peiacipal
and interest by the Canadian govern
ment, recently yielding see per cent
current interest; Montsna Power first
and refuA6ing 5s, due isa3. recently
selling a. I'd, yielding S.e2 per cent
interest; Northwestern Bell Telephens
Is, due 1s4l, recently. selling ct 9e
yielding 7.oS current interest; Neyther rr
States Power first and Yefunding Q PEI
cent bonds, due 1871, recently seilina
at n, yielding s.4s per cent interest;
Government OF Switzerland o per cen!
bonds, due 1899, recently aeMing o,
i05, yielding 7.75 per cent current
interest.
Aslsntie Cisy EleetYies Gesd
ouAstion--Pisase let me have your epin
Jon of the following as an investment:
| Bsthlehem stesl S per cent sonda dus
per cent bonds. due 1sss!-R y. q.
Answer We think tina Bethlshem
Steel 6s. due 1896, which are secures
| by d purchase money mortgage, are Z
| good investment. The Atlantic City
| Electric Company stock lie ewnea by
| the American Gas and Electric Com
| pany, and this stock is deposited uade,
! the collateral trust bonds OF th,
! American Gas and Electric. iMdfeatint