davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-03-27

the 100000 shares of common stock.
there were outstanding on that date
4,530 900 shares.
The preferred stock represents to
its full par value tangible property, or
total actual investment of something
In excess Of sl3,G00,Oo0. The common
stock was issued for the patents in the
radio field of the merican-Marconi
Company, of the General Electric Com
pany, of the American Telephone and
Telegraph Company and the Western
the case of the General Electric Com
pany for all it's future patents and in
ventions up to the year 1915.
81 he Radio Corporation is entitled
also-and this value is reflected in the
common stock-to all the inventions of
the American Telephone and Telegraph
Company and the Western Electric
Company in the field of operation of
the Radio Corporation for a period of
something more than ten years.
These patents represent many years
of investigation by the research depart
ments of these concerns, and in the ag-
gregate represent in development costs
very large sums, running into, sup
pose, several millions of dollars. The
Radio Corporation has no bonded debt
or other liability, except current op-
Grating liabilities.
"rhe shares of the Radio Corpora
tion, broadly speaking, are held by
three interests the General Elec-
tric Company, GU the American TeIe-
phone and Telegraph Company and (3)
about 1900 scattering stockh olders,
who were stockholders of tho Ameri-
canMarconi Company and who became
stockholders Of the Radio Corporation
through an exchange of their Ameri-
can Marconi shares.
"The preferred stock has voting
power, share for share, like the COM
mon stock, and something more than
majority of the entire voting shares
OF the corporation are held by the
General Electric Company and the
American Telephone and Telegraph
Company. The interest of the General
Electric Company is substantially
larger than that Of the telephone com
pany especially in the common stock" "
ono single company has controlling
interest, however, we understand)
Not to go into detail at too great
length, it may be said that the Radio
Corporations income is derived from
message business, in which it competes
with cable companies, and from selling
oPPoi ocdo' IL avs Go ScllIIlS dSCUIS
for the General Electric Company and
other manufacturers.
Assets on December 81, 1920, allow
ing $10,107,eS1 for patents, franchises
and good will, amounted to S25,112, ,945.
Liabilities, including $23,137,262 for
stock, amounted to $25 ,489, leaving
reserves of $92,456.
No dividend has been paid on either
class of stock, but after 1923 dividends
OH the preferred become cumulative at
the rate of 7 per cent, and all arrears
of the preferred dividends thereafter
shall be paid before any dividend shall
be declared or paid on or set aside for
the common stock.
1t may be added that the balance
sheet for the fiscal year ended Dccem-
Der 81, 1921, will be available about
the middle of April. and this should re-
fleet increased business in messages
and the sale of apparatus
New-York tribune., 1922-03-27
American Radiator for Rise

American Radiator common. It was quoted
TO buy some shares, as it was in a strong
eondition and shares purchased now would
the preferred stock must surely be retired
by that time: Kindly let me know if the
preferred Is to be retired within the two
year period, and also il you think like
wise on the aforesaid rise of common in
two years time. I believe the American
Kodak. National Cash Register. etc Also
let mo know about tho Columbia Ora apho-
phone. see In to days Sunday issue OF
where the graphic phone company IS being
reorganized, according TO the creditors Of
their bank. l would like TO know n the
company Is good for any length of time
before heading FOR receivcrship. as zeal
tZo It is highly speculative to play with
common at IL or ~, as it's condition
at that Kindly advise as To what
you think of the firms conditiop.-C. G. NJ
Arswer-Although we do not attempt
to foresee the future, we think the
chances are that American Radiator
common can be purchased considerably
below $400 or $500 share two years
hence. The present dividend of 81 d
share is equivalent to 16 per cent, the
par value of the common stock being
s25. In view of the fact that at the
current price the return on this stock
is only 4.44 per cent, it is natural
and logical inference that the present
price discounts something that is ex-
pected to happen i'll the future. 1t is
difficult to believe that a company as
conservatively managed as the Ameri-
can Radiator Company will increase its
present 81 dividend on the strength OF
last years earnings, which were at the
rate of s5.36 a share. You have been
msinformed, we think. in believing that
the preferred stock is to be retired. No
provision is made for retirement of this
class. You say that you realize that
Columbia Graphophone shares are
speculative and we agree with you. II
you feel that you would like to gamble
at this and can afford it, we know OF
no reason why you should not. 1t is
only a gamble at best. in our opinion.
New-York tribune., 1922-03-27

United Cigar Stores Company preferred,
United Drug common, United Drug first
preferred, United Retail Stores. American
Tobacco dividend certificates (scrip), Pa
cthc Telephone and Telegraph Company 8
per cent bonds-P. A. w.
Answer-We would divide your list
Of stocks into three classes, giving an
investment rating to Pacific Telephone
and Telegraph IS, American Telephone
and Telegraph, Empire Trust, Irving
National Bank, Royal Baking Powder
preferred, Standard Oil of New Jersey
preferred (Which you might consider
exchanging for some security of equal
rating on account Of its callable fea-
ture), United Cigar Stores Company
preferred and American Cigar pre-
ferred. OF course there is small ele-
ment of speculation in the stocks, but
we would rate them above such issues
as American Cigar common, American
Tobacco common and common B, Great
Northern and American Tobacco scrip.
We regard all your other securities as
only speculative
New-York tribune., 1922-03-27
Higher Grade to Aid List

Question--Here is a list Of bonds which
have bought and would like your advice
in regard to safety Of same. The list:
$4,000 Dutch East Indies 1rst ISSUE at
9+H; $1,000 Kingdom of Netherlands at
ga $1,000 Great Northern bH per cent
at e61a $1,000 Ohio Public Service Com
pany at 100 and per cent interest :;
$1,000 Sinclair Consolidated OIL Corpo
ration Z per cent at 98; 5000 francs Midi
Railroad Company at $40 per 1000
francs. I would be very pleased to have
you criticize this list. as 1t represents my
life savings; married, wife and three
cl-ildrcn.-C; II. S.
Answer--Your bond purchases up to
date have been very we'll chosen, but
we think that in planning your future
investments you should consider the
advisability of strengthening the list
with some securities of higher grade.
You have made a good start.
New-York tribune., 1922-03-27
Too Speculative for Investment

Cuestlon-Refer to tho Investment
Information column of your paper, viii
;yn,'. y9n please give me your opinion Of the, the
ttoilcwing; Two $500 third liberty loan
bonds 1923: two $500 fourth Liberty loan
ponds, 1888 to 1898; five Standa rd
Gas and Electric bonds. 81. 900 each: 11ftv
ehares s,,, consoIidated Textile Corporation
shares Canadian Power and Light. nfty
SHARES SHARES DALLAS Power and Light, nifty
shares Pierce Arrow, nifty shares Bethle-
her hem Steel, fifty, shares Worthlngton Pump.
hVe shares Public Service CORPORATION of
New Jersey. Or, it you consider I should
change any of the above I Will be very
M G.
Answer-Your list contains too manv
speculative stocks to be suitable for a
woman's Investment, in our opinion.
Consolidated Textile and Pierce Arrow
seem the least desirable, but from an
investment point Of view we doubt the
advisability of holding stock Of Beth
lehem Steel, Worthington Pump and
the utilities companies you mention.
If we were In your place we think we
should prefer the bonds Of these com
panies
New-York tribune., 1922-03-27
Speculation in Foreign Bonds

Question-Last December bought 50 ooo
rear rencm IL, somNernment w per cent, twenty
cceus from sale of $4,000 United lLingdon,
or Great Britain and Ireland, 1929. 5iz per
ceht convertible bonds. costing me 91Is
and selling for 97h. realizing a profit OF
over points, besides increasing my in
come $40 a year. About two weeks ago 7
soim so.a my last United Kingdom external.
lo+', az lo5 "a. costing me IS With the
proceeds bought a $500 guiider Neither
en- tano government bond at 94l4, uncalabIo
ny, ny income very much by the last transac-
.M.oh, M l realized profit of over $40 In
your opinion, would it be wise for me to
eXchange tho guider bond for either Of
tho French cities per cent At nresopt 81
market l would realize a profit OF 80 and
sui,derI sui per xhtn cent on $1,000 instead Of on
about $3.50. according to exchange. Or
what other long term bond would you sur
eest In preference e L. v
Answer-We think you did we'll in
disposing of your United Kingdom
61zs of 1929 in view of the fact that
continued possession is in the nature
or speculation on the future rise in
sterling exchange. We consider tbo
Netherlands IS good exchange. You
should forget the profits obtainable
from the exchange of one bond for
aHother and think more of securitv of
principal and interest. Otherwise YOU
are destined in time to become bond
trader instead of an investor. The
Netherlands 6s, in our opinion, are
preferable to the French cities 6s and
we would not suggest a change unless
into a better security. You under
stand, OF course, that the fact that the
Netherlands bonds are issued in guild
ers makes them speculative to the ex
tent that the price is affected by ex-
change rates on guilders.
New-York tribune., 1922-03-27
Federal Farm Loan Banks

viii tT1'sSs,0nmi shall be much obliged Y you
WI 49, sln,in , euish for me the difference be-
h~ntn euertl land hanks. Joint stock land
II r. r 'NA'i "sSocl@elohs'
Answer--Thc Joint Stock Land Pant
system Of the United States was au-
'horlzed by act of Congress approved
July u, 1915. The act is known as tho
Federal farm loan act and created
the following organizations: The
Federal Land Bank system the Mo
iona! Farm Loan Association svstern
Sna tne JOINT stock Land Bank system.
"o forms OF securities are at present
in circulation as result Of fi4apci,.c 1si".
I uohe by the Land Bank system In
the first place, there are Federal fam,
oan bonds of Eve maturities nar
'hg from ~ to 5 per cent. which aro
oHered by the Federal Land Bank sve-
eem' These are instrumentalities of
tne united States government and are
virtually government guaranteed. IN
olVlduai banks of the system have
since i1oatcd bond issues, and these go
known as Joint Stock Land Bank bonds
lhcy are secured by the individual
banks and are issued under rigid roy-
ernment supervision. Before b9nds
dD0Dc3tlnn
OF the borrower and the report of +bn
appraiser must be submitted to ne
rarm loan Board for approval. The
JOINT Stock Land Banks are chartered
oy' and are under the supervision of
the Federal Farm Loan Board. No
oank can issue farm loan bonds until
the capital stock is entirely paid in
both principal and interest of these
JOINT Stock Land Bank bonds are ox.
empt from Federal, state, municipal
ana local taxation, with the execution
ol 81 inheritance taxes. The terms of the
farm loans securing Joint STOCK Lava
Bank bonds require the automatic ro-
auction of the principal of the loan.
repayment being made upon an amorti,
zation plan. Additional sccuritv Ia
protect the bonds may be demanded Of
yolnt Stock Land Banks by the Federal
farm Loan Board at any time.
New-York tribune., 1922-03-27
Foreign Holdings Large

Question--I have followed your column
with interest recently and would like to
have your opinion OF the following securi-
ties. with suggestions for any changes you
GUM Ss, $500 French Republic Ss. five
shares Chase National Bank s1.ooo Ph!la
delphta Electric Company first lien and re-
have been considering disposing Of the tor-
eign bonds, and will have $500 more to
invest in the near future, 7 would, there
fore. appreciate your recommendation OF a
few bonds yielding s per cent with safety.
Kindly give your opinion OF Utah
Power and Light es, due 1s44.-A. G. P.
Answer-Utah Power and Light es
are a good bond. We think you have
too great proportion Of your invest
nent in foreign bonds but do not think
that you should correct this lack Of
New-York tribune., 1922-03-27

By this we do not intend to imply
that the stock might not be worth q
great deal more twenty-five or fifty
years hence. Those willing to assume
great risks have made fortunes, as
most any circular Of stock promotion
scheme will explain to you, but it is
our contention that few persons writ
ing to us are in a position to assume
such risks, especially women.
Hundreds Of letters inquiring about
present-day values of stocks sold by
promoters in years gone by testify
beyond doubt that mot all is gold
that gltters,' or words to that effect.
we have in mind a circular used for
selling stock that came to hand re-
Gently IN which it was set forth that
q certain blacAsmith-who apparently
became famous through this action
aIone-sold his shop to put his life's
savings IN new venture, which was tn
forerunner Of the Welsbach gas man
tie The smith then went to work
tor the new owner, the circular said
and his small savings netted him
something like a half million dollars.
tlne, said we, but set alongside of
this the millions lost in nebulous oil
stocks alone in the last two years and
strike balance. Not only do the
losers outnumber the winners by many,
many thousands. but the amounts van
lshed in such schemes total far in
excess Of gains realized from such un-
certain ventures, in our humble
opinion.
Then, if you happen to have the
classified "ad" section of Sunday
paper we have in mind, turn to the
section devoted to statesmen wanted and
examine the lads" for stock salesmen
Doesn't it stand to reason that the
chances are against the prospective
stock purchaser if he knows nothing Of
the individuals disposing Of the stock
and even less (if that is possible) Of
the company's product?
Stock statesmen will say "Look at the
profits made by those who got in on
the ground floor" in American TeIe
phone and Telegraph, Ford Motor,
United States Rubber and countless
other stocks worth far in excess of
their original value.
We can even imagine investment ad-
vlsers of years ago suggesting that
until the Bell Telephone Company dem
onstratcd its earning ability over q
greater period Of time its stock must
be considered speculative, or other ad-
vice along the same line.
On the other hand, We remember
suggestions to inquirers in the early
days of this column to avoid certain
speculative stocks that have long since
passed out of existence as mediums Of
trade and whose value now is limited
to that Of paper certificates.
Now, as to Radio Corporation of
America. Owen D. Young, chairman of
the board of directors, before the Sem
ate Committee on Interstate Com
merce, said: "The Radio Corporation
of America was organized some time
during the latter half of the year 1919.
1t has an authorized capital stock Of
100000 shares of preferred stock of
the par value Of $5 each and 5,O0O,0 900
shares of common stock Of no par
value.
"Of the 100000 shares Of preferred
stock there were outstanding as of
December l, 1920, 2,635,174 shares. Of
New-York tribune., 1922-03-27
Wants Non-Callablc Bonds

Question have 81, 900 surplus in my check
ings account which at present Is not drawing
interest and which I would like to invest
In some high grade bonds. What I am
especially Interested In non-callable
bonds maturing in from ten to twelve
years and which are now selling at or
near par. ain g. salaried man, married
and have family -Four thousand dollars
laid by In q. savings bank constitutes nv
sole hnsnciai resources. Naturally am
seeking only an absolu utely safe Investment
Your Kind advice VIII be very greatly a ~
precfatsd.-I. j. Il
Answer - II you are interested In
non-callable bonds we think you might
consider Great Northern Railway rs,
Series 3, 1862; Southern Railway de,
yelopment slas, 1865; Louisville &
2003; New York Edison 61ss, 1871, non
callabe until 1885; Queensland IS.
1947, and United States Of Brazil IS.
1e41. We think you could select q
diversified investment from this list.
New-York tribune., 1922-03-27
Stocks Look Cheap to Her

Qucstion-Will you please give ME your
oplnlon in regard to my buying twenty
shares Of Chicago, MiIwaukee g. St Paul
Preferred and ten shares of Missouri Pa
enc preferred? Would you not think that
At mo low price at which the stock of
these, roads is offered and the potential
possibilities in the future It would be an
iDVestment? Please give me your un-
biased opinion, as / have no money to
1889. May | also ask your opinion OF
Atchison preferred Mrs. NJ. e. D.
Answcr-We do not consider st. Paul
or Missouri Pacific preferred invest
ments under present conditions. They
may offer speculative possibilities to
persons who think the earning power
of the roads will increase sufficiently
in years to come to place the preferred
shares on dividend-paying basis, but
at present we see no indication of this
in the immediate future Atchison
preferred, of course, is a good invest
ment.
New-York tribune., 1922-03-27
Securities of Three Glasses

Question-Wiu you be kind enough to
let Inc know through the columns. of your
valuable paper which CT my stocks and
bonds you would advise me to keep and
which you would advise me 70 sell and
what 10 buy in place OF those sell? The
following is a list OF the stocks and bends
own: American Cigar Company common,
American Cigar Company preferred. Ameri-
can Safety Razor. American Telephone and
Telegraph. American Tobacco common A.
American Tobacco common B, Cont
mental Can, Empire Trust, Great Northern
preferred. Hooking Valley. Irving National
Bank. Mengel Box Company, Philip Morris
Company, New YORK and Queens Electric
Light and Power. Royal Baking Powde,
preferred, Royal Dutch New York shares
STANDARD OIL CT New Jersey preferred
New-York tribune., 1922-03-27
from an Oldtime Readcr

ouostion--I have been reader Of Tho
New York 1fihuuo since my school dsys,
Horace Greeley At ths present tire I
hVe with 2 relative, and read II every
morning. For the last two years I have
been fnuch interested IN your investment
columns and viii appreciate being allowed
10 ask Some questions and your opinion
OF my investments which we're made for
me' am sixty years old and prefer to
Gonlne myself to high grade bonds, as
depend on them for an income What ia
curb? How does it differ from tho regular
stotk and bond quotations? Under Markets
IN Other Cities where it reads "Shawini-
gan loh' TO which bond does it rcfer?
n Victory bonds are quoted above rar. Tor
instance. l00.3o. does It mean the govern
ment NE WIN pay sloo5 for $1,000 bond
,5 na,I5Ways ana Union stock Yards 5s. 1870.
paid 50; $500 gold bond Central Massachu-
setts Electric Company OF Palmer, Mass.
9s, 2 I9st, bought at par in 1902 $4,000
bridgeport Hydraulic 5s, 1925, at 93&
$1,000 Canadian Northern equipment trust
IS ss ls2s, paid a3ib; $1,000 Detroit Edison
os' series Il, 1910. paid 50: 81 900 Della
ware & Hudson Is 1880. paid pnr; 81 900
Hha awlnisan Water ard Power 7lss 1926
Pslerrs Psia sr $1,000 '16.- Pacific Telephone and
$4,000 Untod States Victory notes as
1893, paid 95S6: $500 United states Victorv
nc'sS erty ~ 1s23 paid par; soc third LIB
ilberiy 4Hs paid par; $4,000 IN savings
oank at per cent. also have about $500
'N"i' - iHcolho from some commercial prom
erty, Are my bonds high grade? Some
or them rarely see mentioned In vnur
investment columns.-Mss r. B. s.
Answer-The curb market is similar
IN way to the Stock Exchange. but
Is a newer organization and takes its
name from the fact that until last
June all its transactions were carried
on IN the middle Of Broad Street. near
Exchange Place. The associations new
building on Trinity Place was opened
IN June, 1921, and since that time
trading in this market has been car
red on indoors. Quotations on the
Montreal Stock Exchange for Shawini-
gan refer to Shawinigan Water and
Power 71as, 1926. The fact that Vic
tory notes are quoted on the New
York Stock Exchange at slightly above
par indicates that that is the price
traders are willing to pay, exclusive
of interest and commission. Your list
OF bonds is we'll diversified and seem
lngly we'll secured. The government
bonds, of course, are high grade, and
the Canadian Northern equipment and
Delaware g. Hudson Is seem to be the
best of the others.
New-York tribune., 1922-03-27

balance and then take on too large an
aggregate of electric company bonds.
With the proceeds Of the sale of half
of your Belgian IS we would suggest
that you buy one United States Rub
Der per cent bond. due 1947, yielding
6.06 per cent. You might also take
one Southern Railway first consoli-
dated 5, 1944, yielding 5.52 per cent,
and one American Smelling 5, 1947,
yielding 5.84 per cent, as good pur-
chases for your 81 500 and the balance
rem aiming from the exchange which
we Just suggested.
New-York tribune., 1922-03-27
Specializing in Wireless Age

Question: daily reader OF pour valued coun in The yr,l,ne
your hHoedge Investments
gfe@ "pse to uecss teguphy concerts oivs
aauy Neuark elsewhere odriabuv Of pko
modest nuestment
tdies Could might inyest in
M reasonable of large What do vou think
Of Radio conmon?-1frs. y. C.
Ans"erln brief want speculate development
CT the wireless We and
suggestions Investments
endeVorng to foresee what the wireless
aphy general and Radio stock particular could
attempt predict
we must leave that to those
Development of wireless
with the possibility hearing
wlsh remarkable possibilities
to be tremendous But all that
Of help
ado corporation America
future prce and whatever
Corporation stocks
on
u
New-York tribune., 1922-03-27
Should Strengthen Investment

Question---fraving read some OF your
li1d kind |, and an, t., patient answers to questions
| now beg to come to you for some advice
and shall be very grateful to you II you
investment or speculative value OF the fol
lowing: Twenty-Five shares Chino Copper
1000 shares Noble OH. ifteen shares
Anglo-American Corporation. ono Central
ent times through the suggestion of d
friend, who told mo they arc all perfectly
OF them ct profit In fact, they arc now
slightly higher than my purchase price
with the exception of the Central Steel
bond. VIII you please let me know what
you think OF this list. and also give me
some information about the bond?. Is it
csilable, and do you think 1T is safe? How
TO watch my holdings, this being a point I
often see mentioned in your answers3--
S. +. e.
Answer-All the securities you hold
except the steel bond are speculative
When your friend suggested buying
such issues he was, of course, thinking
more Of the chances of speculative
profit than of certainty Of income and
security of principal. Central Steel
IS are non-callable. We regard them
as suitable for business man. They
have declined because of the present
unsatisfactory condition of the steel
trade and the poor earnings OF COM
panies in this industry. Read the
financial pages of The Tribune and
other news mediums, watching quota
tions, to keep in touch with The mar
ket. We suggest that unless you wish
to continue specializing you dispose Of
the stocks and purchase bonds, such
as Great Northern 5lzs, 1852. and
Western Union 61ss, 1885, both non
callable.
New-York tribune., 1922-03-27

tesardlng the following stocks. Boone OIL
EUREKA Croesus. Boston Montana Kindly
advise II there ara any othar stscks W wkioh
you think a3vtsaslo TO uy-E. II. r.
Answer-Theso thr g stocks are ex-
treme cases of speculation. If you are
really In earnest about changing your
tactics, we would suggest that the only
safe thing for you to do is to go to the
other extreme, as far rs investing is
concerned. and buy good preferred
stocks of the class which you will find
recommended In these columns. But
first You must definitely break away
from the cats and dogs" There is
nothing in them.