New-York tribune., 1922-12-03
Preferred Stock More Suitable

oaestlcn-Tae writer =. IN elderly
widow With a rnodsst bot sufficient income
from good real estate ana few saoussnnl
L S.T,S ,s0's R1sd, SSf SSfo s1 1xns Glass hAss po4si
bonds 3.oO0. and $4,000 ia fret mortgage
on real esiats and interest beaTiaE bank
deposits Another thousand, loan. was
recently paid in. and .hfteen shhrsa Of
Az Reduction stock purchased a. o.. eince
buying the stock has fallen below -. but
understand that for The pau twenty
two quarters u has paid Is dividends regu-
larry. and is nov building new Dlanta
However. I know less than ] ought about
Il. and am seeking iAf5fth alton from Tou.
Scienfious inv.s,iratorN win you EindIy
give it7-MrG Y. II. IL =. art
Answer-We do not eonhldrr Air Re
duction stock the kind Of security for
a person in your circumStanees to hold.
Although there Is NO. reason for selling
at Il loss at the current market price,
we feel you should dispose Of some OF
this stock In time and substitute for II
some good preferred issue, such as
National Lead preferred.
Stars Limited MarketabllIty
ouestlon-what ia your opirion Of the
Star Motor. Inc. being financed BY the
Durant Corporation I'D. H. L.
Answer-The first thing TO decide, II
you are considering purchasing Star
Motor, Inc, stock, is the purpose Of
such a purchase. II for an invest
ment, you should not forget that the
stock Is not on a dividend basis and
there is no indication when Il will be.
We do not see. therefore, how the
- T.
investment purposes IL II pays no re-
turns. II you bought for speculation,
on the other hand. you should not for
get that the shares will not be market
able for two years after completing
payment and that no matter how high
the price may 90 in the open market
II one Is established-you would not
be in a position 10 take advantage Of
the appreciation. Moreover, II the
price declined you would be compelled
10 take the loss, since you could not
sell your shares and limit your loss.
Under the circumstances we do not rec
ommend Star stock.
Invested All In L. X. Steel Stock
Question: ind Il difficult 70 obtain
any Information in regard 10 the L. r.
sources and. therefore. ! am constrained
10 bother you for any that you may have
IN regard 10 the status Of the stock and
standing OF the corporation. An old lady
invested some OF her money. practically
Ali she had. In hfteen shares OF the pre-
ferred stock, for 800 each share and
abe 10 given a. a bonus ~ OF common
stock OF steers Department Stores Hold
ing Corporation OF Delaware. The pre-
fsrred ls Of Steeis Department Stores. Inc
The l.. r. Steel Service Corporation. OF
New York, has executive offices AZ Buffalo.
What would you advise this lady 10 do 20
get out In the best way possible Of this,
In my opinion, dangerous speculation
Any Information that you may be kind
enough 10 give viii be greatly appreel-
ated.-A. NJ.
Answer-AppArsntly the woman you
mention has come In contact with one
Of the L. R. Steel Service Corporation
"teaehers," who, according to a COM
plant filed recently in the 9TH District
Municipal Court, were sent out ito be
teachers Of the poor people-to in
,truct them how 70 invest their saw
lngs." The service corporation. we
believe. provides no resale departmen.
for dissatisfied stockholders 70 dispose
OF their shares, and there IL llttle
comfort in knowing that stocks for
which 500 q share was paid could be
sold IN the open market for unlisted
securities only at heavy loss. Steeis
Department Stores Holding Corpora
tion shares are not quoted among
dealers In unlisted stocks, but shares
Of other L. r. Steel enterprises pre-
viously marketed by the ~ &c. cor
poration were recently quoted by deal
ers at 10 to 40 cents on the dollar.