New-York tribune., 1922-01-23
Investment Information

a, formerly IN n reply to another IN
uuircr. whose list included tho Arnou,
bond. you did no, include the Armour bono
among the f'w YOU considered hlxh sn.'",, s'..'"r
and YOU hnve also gently advised caution
ms to scandinavian bonds, but did no'
specifically name Corcnhngen You "lso m
sugrcsted the probability OF standard o,'
Of New Jersey preferred stock being called.
For the above reasons am making m
quiry. Am forty years. with lcnNy near
valve with good compensation at present.
have "A wife and two young children, with
out other means of support Would YOU
advise mo to sell any at present, and what
kind OF investment would YOU rccomm"nu
fcl replacement. and also for IN" mex,
$1,000? Kindly namc several My local
tnnll stock and local real estate interest
need not be considered In answcr.--N. u. l..
Answcr-Wc would advise you to sell
your Northern Pacific general IS un-
der the conditions which you name.
Your circumstances arc such that you
ought to continc your holdings to only
the highest grade bonds that you can
possibly select, and if there arc cir
cumstnnccs about road which would
leave only the remotcst possibility of
its following the course Of the st. Paul
or tho New Haven you might better
sacrifice fraction Of per cent in
forest and shift into something that 80
far as can be seen now has no element
Of doubt in it. AS a matter of fact
your Northern Pacific general So are
selling around 63, which gives you
yield of only 4.76 per cent. Why not
buy Norfolk d Western consolidated
and refunding as, secured by
first mortgage and selling at around
"a, which would give you precisely
the same current yield A.16 per
ccnt-as your Northern Pacific is now
giving you? In accordance with the
same reasoning. we would advise YOU
to sell your Atlantic Coast Line Louis
willie & Nashville collateral trust as,
which at 1874 yield you 5.25 per cent
current interest and 5.63 per cent true
income if held to maturity in 1852.
You could buy instead Virginian Rail
way first 5s, recently selling at 88%,
which are due 1862, and at the current
price would give you 5.63 per cent cur
rent interest and 5.72 per cent income
if held to maturity. They are a first
mortgage, and the road is an essential
coal road with high modern standards
of construction. We advise you to hold
your Oregon Washington Railroad &
Navigation As and your United King
dom of Great Britain 5las, but to sell
your City Of Copenhagen 511s. In
great majority of cases we would ad
wise a holder Of these Copenhagen
bonds to continue to hold them, but
VHSO ASdiH EOu iHuHN iCHSIlUcl tlldI
you are taking chances which the ordi
nary man can obviatc by carrying suf-
ticient life insurance. We would ad-
wise you to hold the Armour & Co. real
estate 4iss. which you must distin-
guish from the obligations of Armour
e. Co. not secured by a mortgage on
real estate, and also to hold your New
York Telephone 6s. In place of the
Copenhagen bonds we would suggest
/ Cedar Rapids Manufacturing and
Power first 5s, due 1858, secured by q
first mortgage on Il hydro electric plant
OH the ST. Lawrence River. which has
perpetual rights 20 take sufficient
water to develop 900 horsepower
The bonds recently were selling around
o3. yielding about $50 per cent, and
they come in $500 denominations. We
would advise you to hold all Of your
preferred stocks. except the Standard
Oil OF New jersey, which we would ad-
wise you to sell, and with the proceeds
/ OF which and little money added from
Your present income you can buy Ma
tional Biscuit preferred, which is sell
ing around III and is non -callablc.
From a review of the National Biscuits
1921 annual report which appeared in
The Tribune of January IA you can
judge from that of the strength of tie
company. For the additional 81 900
we suggest Chicago Union Station first
mortgage Gas, due 1868, recently sell
ing at 1l2bs, yielding SIT per cent
current Interest