New-York tribune., 1922-05-21
COLLEGE Boys Long List

ouestion--.A young friend uf rnine-a
boy of twenty, row at college-Tecent'y iu-
to criticize his newly acquired holdings
and perhaps suggest some changes. l
hesitate TO do this without consulting Il
wisei dnHnciul head than my own. Win
you kindly assist me? The list: Real
csLate in Manhattan, which nets appro@i
aaasiy sA5no psr 4na Gao 5ooo % 16erty m ~
New York is, 1925; S5,oU0 st. Paul, Miune-
appis & Manitoba ss. 1896; $1,000 Erie &
5ssey g. 1852 - ooS SSpo TTsnSh r
lp4l; 400 a}iares United Fruit, $50 shares
American Telephone ard Telegraph, 22o
shares Pullman Coinpany, l5o shares inn baa 10
United states Steel, 100 shares South
ern Railway ,plrisrrod, 100 shares Penn
sylNania Railroad, Ioe shares 1ra Famous nous
Players. rs shares American Sugar pre-
ferred. 90 shares crncibls Steel . prrfsrred, .;
80 shsTla ntTa es hs Pre-
.5 shares Midvale Steel. % shares Na1ional
BISCUIT prefcrred, IS ahnrss, Central
& Ohio, 10 shares Chile, Coppur, 10 shares
Cuba Cane Sugar 11referred, 10 shares
Pierce Arrow preferred, 10 shsreH Pierce
Arrow, 10 sharos American Cotton OIL pre-
ferred. shares Eastman Kodak, shares
Mexican Petroleum prefenred--R' a.. H.
Answer-The pers on from whom your
friend inherited this fortune WAS prob
ably we'll equipped to look after the de
tails of ouch an investment 1t does nos
follow that because these investments
were suits bic for the original purchaser
they can be continued without altera-
tion by twcnty-year ear-old college stu
dent who, VIC assume. Is lneHpnrlenced III
investment matters and the relation
between business Developments and Sc
curity values. This list is the KIND
that needs constant watching because
lfnrp Of
stocks. The holdings of United Fruit
alone are worth more than all the
bonds combined, and We think the new
owner of this fortune should take
steps to give it a different balance
compatible with the change in owner,
ship. In the first place, We see no rca-
son why an investment as large as
this one should include the small hold
ings of Mexican Petroleum preferred,
American Cotton Oil preferred, the
Pierce Arrow stocks. Cuba Cane Sugar,
Chile Copper, Chesapeake g. Ohio,
Central Leather preferred and Ann
conda Copper. All these small blocks
Of stock. We believe, should be consol-
idated into one Or two good invest
ments, reducing the speculative ell
ement and at the same time elm
mating Just SO many companies whose
dIldIIS WOultl AldFC W OC SLSNiSu N4NHs
ly. Understand. however, that we do
not urge the immediate disposal OF
these stocks. But eventually this
should be done. IF We were managing
this estate, wc would also reducs the
holdings of Famous Players stocks,
eliminating the common stock. All
the other stocks are suitable as to
character, but we question whether the
large amounts OF United Fruit, Amer
ican Telephone and Telegraph and Pull
man Company should be held. These
ere good Investments, but as stated
previously the United Fruit represents
En- investment larger than all the
bonds combined. You can use your
own Judgment about the amount to be
converted into good bonds, but we
, would suggest that to some extent this
change be made. When you are ready
to take action, you-or your friend
might consider some good taX-exempt
municipal bonds and any Of the follow
ing: Canadian Northern rs, 1910;
United Kingdom 5ias, 1887; Missouri,
Kansas T. Texas prior. lien 5s or 4s,
1862; Province of Manitoba SIS, 1916;
United States Rubber 5s, 1947; Penn
syivania Railroad 6hs, 1886, and New
York Telephone 6s, 1941.