New-York tribune., 1922-12-31
From One 10 Another

Qusstion-i GA rrhsn Motion rietufss
Ina inr stock fm0rr fhan 7 can tr0rd 70
lessi Would gou adtits me 20 gli it for
the ptsnss nov onsfed--a ocni ons s.hhih
or less ihan ! pah for 81 Would you
fhinh a fafs 10 invssf In the rnitsd states
Metal cap. Inc factory ln urcokiyn' I
have no one iu adfiss ns whofe word !
could take and believe aill appreciate
On sntwer. Nlss ~ y
Answer We fell 70 under,'aad Why
an individual who has bought Urban
Motion Pictures stock and Who hss
seen 10 decline IN value, or has failsd
70 receive return on ii, should con
alder another hirhly speculative ecnr'
ity. We should think that one etpen.
enca would be enough % tuggeN ina
Il might he better IN the long run 20
stick 20 investment seeurties. "
cannot attempt 70 decide for you ~nat
yon should do With your Jtoan stoeN
All we can say is that u speeula-
tive. and whether YOU should continue
10 hold u depends largely. IN 9nr o.,
opinion. on your financial POSITION We
should advise you not 20 consider an
other Of similar grade. however.
Standard OF New Jersey Dividend
Question Kindly sdyis- ~. w. eayins
Ave shares - the new slAhnalW 80. .,,,
T.rs.v " - stock selling a. " 1n'
INN, a. tsks ehanc. on THIS s!ofh.
RetsVinr that In about = feAf -Nnt-
pssinS ditldsnds and ihs fceE o. ,,i''" .i"s
rioss 10 SEQ 10 you conslafl
sn.t,.t. pr.f.rrsd and common Hoe. :
s,,s t-v..ir,nf- Also stocks ~ me 'iilrf
tA~vtfa and bonds rould ilNF " - ~
al. coed hands selling 81 Qrcr - ll..N
gre,r fft ~ Tf0 and siNl o. ~. wv
-. e.. n. =. safe - conditions wll slhN-
, h.urh, on. ohio Northern pas ON
-, ~ cent. due 1928. a. flep. IlNtH,
sdyis. me Why ne maturity ha'e "
shoft--D T.
Answer Il IL the plan Of the stand
.,d Oil Comnaay of New Jersey 20 pay
dividend, on SIS enlarged capitalization
q, ~. sane rate (per cent? "a N paia
A. an, common before the stock diNdena
v,s d.eiared tn. common has been
receiving sb share. and after the num-
her of shares outstanding has been m
eysstsd hvs.fold = dividend Of ~
,hare per year will be paid. THIS %
N. only inference 10 be drawn from
IN, eompanv statement that The aggre-
gate Of cash dividends would not be M
creased AZ the present time. Unless
the next dividend IS omitted. and We
know of nothing more improbable tnan
that. YOU would not have 10 wait year
FOR the stock 70 pay a dividend. For
. 81 stock the Standard oil subdivldcd
shares arc selling at an exceedingly high
price. The income return at the price
you mention is only about "a per cent.
Manifestly when YOU buy a stock on
this basis you are paying for prospect
Of increased dividends a. some future
time. American Smelling preferred
has received regular dividends during
the period Of depression in the copper
industry, a period much more lengthy
than that through which other indus
tries passed. We consider this stock a
reasonably sound investment The com
mon is speculative. The Cities Service
debenturt bonds are suitable FOR busi-
ness mans investment. The stocks con-
tain a substantial element Of specula-
tion and are hardly suitable for
working man. The Ohio 4 Northern
~ are a Cities Service obligation, by
virtue of guaranty b. the latter 10
pay principal and interest n the issu-
ing company should fail TO do so.