New-York tribune., 1922-03-12
Has Two Weak Snnfs

in nves+ Nuts iom-."til you please criticize my
5000 wilson & Co. first Us, 5000 inter
national Mercantilc Marine first ss 100
shares sf OF Standard OIL OF New York pre-
ferred, zoo shares Kansas CITY comm On
STOCK. So, also own 1000 shares Of Island
~ a. ana Transport Corporation I Know
TINS is speculation and am worried. as
read a small article that this company
ny n,.s 90 10 court Is ths .trne? Would
p,efer Pre- N, to get out but don't want to take
ing II the report is found 10 be false?
also nave $1,000 now in the"banl5 and wisl
81 s1 nnNssr, satety OF principal first consider
thinking Of buying fifty shares Of Atrh.snN
pIeIefred and one Tel. g. Tel collateral
srust erl. Il nrst Ss and one virginian Railroad
! J. want long term and non-caiis be bonds
WIN win positive safety. Is there anythints
ebtuer ebonf .han this SELECTION which would net
aoout .a per cent Does one have to pav
taxes on preferred stocks? Would Vol,
ne,ess escs' olv;ding any other preferred stock
shanos 'sr atcn,sSn ~ s,, and buying twenty Ave
W., W. snali be more than thankful for your
eeriticism or Information and help In onr
chsne.s prooiems ms and If you should deem
ts%aoIe Is this true. and why? VouiJ
you consioer American Locon,otive ous'. nus1
preferred stocks as desirab bio as Atchieon
pneleaTed pre- and as seemingly safe. and can
*vD
erred stocH ard what price Is it to be ~ PEI.
snare have not seen any price or IN
terest duoted.-MRS. l.. r. ~
Answer-Wc think we'll Of vour A.
iantlc Refining preferred, Standard Oil
preferred, Wilson IS, Mercantile Ma.
rIne 6s and, Of course, your Liberty
oonds. We would suggest the advis-
solnty OF exchanging the Standard Oil
prelerfed shares for some other high
grace preferred stock, as there is a
llkeiihood Of this stock being called in
within few months. This callablc
feature is the principal reason why
the stock is not selling higher. Kansos s
Clty Southern common is specula tive
and we cannot advise you about it for
that reason. You will observe. how
ever. that this road has come through
the trying period of defation with rood
earnings. The Island Oil court tall;
has been pure gossip UP to the present.
The condition Of the company is not
favorable. but this security is too far
OUTSIDE the realm of investment 70
justify recommendation on it. We
are sorry that we will have to leave
that problem to your own best judg-
ment. The American Telephone IS and
Virginian Railway IS are high grade
bonds, which we do not hesitate to
recommend. Atchison preferred is a
high grade stock, but we would advise
you to divide your investment so as to
take only twenty-five shares, selecting
twenty-five additional shares of either
United States Steel pre- ferred, National
Biscuit preferred or American Loco
motive preferred. There is nothing TO
indicate the price for the new Illinois
Central preferred stock. If you should
decide to dispose OF Standard Oil of
New Jersey preferred you might con-
slider Union Pacific preferred or
American Car and Foundry preferred
as an exchange. Apart from your Kan
sas City Southern and Island Oil, wo
think that your investment is sound
enough to warrant the purchase of a
good foreign bond, such as United
Kingdom 6as, Of 1887, or State of
Queensland, Australia, Is, due 1941,
and not callable. Dividends derived
from preferred stocks ere subject to
surtsxes, but not to the normal income
tax rate.