New-York tribune., 1922-01-06
Accept the Reorganization Plan

tQuestion--N III YOU kindly advise what Is
best to do with $4,000 Kansas City & Pa
cific pcr cent bonds, which cost about "a
and which the owner desires TO have the
income made as sure as possible. Is it
or accept the offer proposed in the reor-
ganization OF the NJ, *. &, T. Railway Co.
and secure "a per cent? Will you asu
please advise what is best to do with Chi
which I bought sixty shares several years
ago when 1t was selling in the ?Os? What
would you advise to do With thirty shares
Chicago. Rock Island & Pacific common
Hold or sell? do not wish to speculate,
but was misled in making these purchases.
J. i. Is.
Answer-Wc advise you to go in or
the Missouri, Kansas & Texas reorgani-
zation plan and to make the exchange
of your Kansas City and Pacific pei
cent bonds for the bonds of the new
company. Take your loss and sell Chi
cago. Great Western preferred. The
chances of it's paying any return in the
near future are slight indeed. If you
do not wish to speculate sell also youl
Chicago. Rock Island & Pacific com.
mon. The c., r. I. e. p. first and re-
funding 4s. due 1884. recently selling al
1874, yielding 6.92 per cent to matur.
ity, would be good thing to shift
into, in our opinion.
A Business Mans Investment
Ouestion--will you kindly advise me If
YOU believe the following bonds to be a
good. conservative Investment: Wilson &
1881, bought at ssl u " NJ. b.
Answer-We think Wilson & Co.
71as are a good business mans invest
ment. In its nature the packing house
business is speculative, and although
the three large packing companies are
strong companies their bonds issued
to provide working capital cannot be
classed as conservative investments, in
our opinion.
A Satisfactory List
Question-Having followed your advice
to excellent advantage for some time. am
going to trouble you again. as some invest
ments have fallen due and others soon
will. By January |. 1922, 7 will have
$4,000. wish to reinvest Immediately. l
would like to have rs high rate of inter
est as is coneistcnt with safety of course
Is it not possible to have or per cent
An; nclosins list, Would appreciate re-
Amsrican nsF %0a Bank So} @Sa Sas about ntes
sas city Southern first IS. 1850; Armour e.
Company first rs. Indiana Steel first 6s.
Public Service Of New Jersey Is Deiaware
de Janeiro IS. 1916, Argentine SIS. lo45 +?
L. II.
Answer: The list which you sub
nit seems to us satisfactory although
we would prefer to see included some
more public utilities, especially some
of the telephone issues such as New
York Telephone Company 6s, 1871, sell
ing at about 102, to yield about $50.
We would suggest the inclusion Of
these in place of the French 71as,
which we are inclined to think you
may be- able to purchase later at a
more attractive price. Or you might
include, say $1,000 of the French
TVS and add the Telephone 6s, re-
ducing the proportion OF other bonds.
international Mercantile Marine pre-
ferred is speculative in our ostima-
ton, but we regard the company's
first and collateral SIS. due in 1941,
and selling at about sS, to yield over
z per cent as good investment.
American Bank Note preferred pays
per cent, which means that $4,000
would return $3.50 annually.