New-York tribune., 1922-03-26
Bullish on the Country

Qusstlon--I am travel NJ man and a.
va.s tH hereter possible .ead your ac
Vice In .rte Tribune "as very ;-h ia-
,e.es' ed ~ oar rep. t' j. q r.. III which
yAe question Of Virginia Chemical p~et-rred
Is spoken or. Tie InQc.r- stat les ma you
advised o.e tl.De the buying og Virginia
4 .et..!col urefeirnd for i1EeStl-en Now
you stat" that If D. r. II. I'D make the
switch 'a ouG t- wituo4t iaron.c. Vt
he piainIg s.ates tbut he las no in. mediate
uSe FOR the money. Now, M. Edtot. W.
sinia chen. cal preferred ia cu:nu .e. 5
prr cent. 2rl ,r the past s.X weeks ny
ser have been p.cN'0S ii Up for .aVest.1-tt. a..
having bou@ht !, a. -0is, 6Sa4 $3.50. 10.
and - :. ngJ'lug ma wien business GETS
formal aoi .tnrY begin to make money
they WI pa he bac} dividend which a
pteSert ls per cent, together Witn tie
,e8iia' PCT cent. figure that ~ the pres
returns me over - per cent and about -
pgef cent on he stoe@ that j housht below
arr resCored the Stock VIII be se,tSF a'I.Hy"a5 as
800 or goer. perhaps 1l0 10 lt5. In suvh
Il case win no; be we'll patd Tor buyirA
al present prlces2 But The financial eGI-
paying dividends then advise it4 3v,.1haea
II !. T. ~. :"itch"r 70 Chens.cal prcforr.d
ne win get back his investment N Sesrs-
Eoebuck and be getting latc~ un over 10
pSF ceht On bis money. travel over Il
iorEr territory. AM am "buil' on tho
country. would also suggest that in your
Nu"n tacy UIv stocks 30 buy only such as
Hr" ''siel ON The New York Stock EAchauce
or some other cltE's exchanges. a..d do then
hu! ng through reputable brokerage houses
instead of buying from promoters ,rho
nave such aliuriAg circulars about making
tortnn" on snoestriuG. If il we're 10
m on It. aAd il they have no friends thev
are poor lot. A. b
Answer - In recommending securi.
TIES Tor investment we could not ar
tempt TO select those which seem to
nave speculative possibilities and
"hlch give indications Of advancing.
TOR the reason that our Judgment
mi$ht be wrong and the stock might
Gec'lne. G(s or that reason we must con
hne our suggestions to securities which
give every indication Of safety Of in
come and principal. When we said
chat Virginia. Carolina Chemical pre-
lerred seemed good investment for
business man, some two years ago
there was every indication that diyi-
dends would be continued. The con-,
pany, We knew, was strong one and
had a good dividend record. The dc.
presSlon IN the South, however. severe
~ affected the company's earnings.
ana 1T was necessary for the directors
to omit dividends on the preferred
stock. Conditions have improved ava
we believe that the company has seem
ITS worst, but since dividends have not
been resumed on the preferred and we
have no knowledge as to when thu
VIII be resumed we must nou, rcgard
the preferred shares as speculative
We admit that they seem to oo'cr
speculative possibilities. for it is rea.
Sonable to believe that since the
ennrter PROVISIONS provide for pay
ment Of dividends on a cumulatiye
basis all arrears will be met at some
1uturc time. For persons in posi- |
tIon to forego present income this
stock may have attractive possihilj- |
ties. We think if you look at the situ-
alton from this standpoint YOU vii,
agree with us that we could not afford
to try to give tips" on the market
and therefore must confine our suo,
gestions and recommendations to onfIv
those securities which we considar
have investment value. That is the
reason we have to wait until the stool,
rs up and paying dividends" w.
agree with you that investors should
select reputable brokerage houses in
stead of buying from promoters who
have. such alluring circulars about
fortune on shoestrinp" Of
course, not all the best stocks arc
'lsted on the New York Stock EXCHANGE
or on exchanges of LARGO c;+;o,