New-York tribune., 1922-09-24
Seeks to Strengthen List

Question.Like great many persons
ins iimse peen clubbing around FOR years TAX
a1su sns auvioe from any. one and like nearly
losses have been interested IN reading
s9Tur sT, column. Investment Information, and
WIZ, indeed, be apprecistive OF your rec-
ommendatlons and suggestions on my per
sonai problem. At the present tDne have
me Following securities, against which
nave loan of SIS. 900: Stocks. 10 shures
Atchison. Topeka &c Santa Te Railway
1pom1,pany common, 10 shares Union Pacific
i1aitn. naittoao q. company common. 10 shares
snares Miami Copper 15 shares Sheffield
Farm Company common. 10 shares South
ern end PrsG,iiie, 10 shares American Telephone
Ghd IeIegraph Company, 20 shares Fire
shares Te1as company, 16 shares res Pan an
snares American sumatra Tobacco Com
bany comm9n. 70 shares Pan-American
Petroieum penSi ~ COMPANY, series y, common.
cent, 1879; $1,000 Baltimore s. Ohio es,
1929 $1,000 Chile Copper Corporation,
series A. ss' 1872 $4,000 Interboro Rapid
hagen. 5Ms io44; $1,000 St. Louis San
FrancisGo Railway, Company prior lien "a,
4s. 1855; $4,000 Albany Hotel Corporation,
series g. IS, 1924; $1,000 American Cotton
on 6s: 1891; $1,000 Chicago. Milwaukee 4
aas. 1899; $1,000 City OF Rio dc Janeiro
Ss, 1886 E4oo Imperial Chinese Govern
Tnent Hukuang Railways 5s, 1851; t2oo
$1,000 Third Avenue Railway Company
FIRST and refunding AZ. 1850; $1,000 Argen-
tine. tine Goysrnmsnt hms,n"n Ss la46 have Just
me $1,000 per month for Investment. What
am after is "a plan OF securing these
give little or no attention TO their future,
but can give my undivided attention to my
business; II you will express, your opinion
value to me: /. What would you suggest
in a way OF changea In my personal hold
ings 10 put this list into sounder shape2
2. At the present time the rate Of interest
at the bank 10 per cent. Would II be TO
my better advantage TO apply my
ahogd N 9r tad y asSk o
funds in additional securities7 II tho latter
what would YOU reoommend7 9. Please
Investment for 100000. same TO be pur-
chased at the rate of $1,000 TO 1000 per
R. W. W. '''' ''''''''"'
Answer-A plan Sor securing your
funds in such way that you will need
to give little or no attention to your
securities should first eliminate your
bank loan. for the reason that the
holdings OF speculative stocks of an
equal amount, and although assuming
that your prospective income Is assured
and granting that you are warranted In
taking somo speculative chance, the
borrowing Of money with speculative
stocks as collateral is akin TO margin
trading, and II your object is complete
removal of your attention TO matters of
this sort it would seem that you should
dispose Of the following stocks: Miami
Copper, Texas Company, American Su-
matra and the Pan~American shares.
If you are willing TO assume tho risks
involved We would suggest paying OFF
this loan as funds become available
and repossessing these securities. We
consider borrowing money at per cent
for the purpose Of buying speculative
securities returning higher rate as
having no place in the operations of an
individual whose purpose is to have his
capital soundly invested. Your bond
holdings are suitable, although we
would not include the Brazilian, Jap
anese and Chinese issues in selected
list OF investments. With changing
business conditions it would seem that
plan of Investment that called for
selection OF securities at the time when
funds are available would be preferable
to one that determined definite action
over a period Of year. We suggest
that you select first mortgage bonds
and seasoned preferred stock for your
purpose, avoiding new issues created to
provide working capital or fund a cur
rent indebtedness.