New-York tribune., 1922-10-23
Too Much Diyersification
1nc6Tp6fatod
65 BROADWAY
NEW YORK

Question: would be greatly, obliged IL
you would criticise the enclosed list of
bonds, which l intend to purchase during
depend on the income therefrom There
fore safety of principal and prompt pay
tails u AN, goisg are hra TO oe the iundamen-
and while 1t is my Intention to leave
them In custody with New York bank,
during. my absence. stil / want to be
Tree from any anxiety. wonder il
wise all ,non-callable bonds. Are there
many callable on the list? I have
made out the list. following mostly your
to buy some in $500 pieces in order to have
more varied list and average better re-
turn. In the case of bonds which are
come down nearing the date OF expirai?
Baltimore & Ohio S. 1895; Canadian
northern as. 1910; Chicago & Northwest
illinois Central 6ks. 1886; New York cen
trai 6s 2o13: Northern Pacific ss 2o47; st.
Lonis-San Francisco 5s 1850: Brooklyn
ts. 1912; Duquesne Light 6s 1s4s: North
western Bell Telephone rs. 1s41; New York
1sai ha,son pph, Sias 1874: New York Telephone ss
Jersey 5s. 1863; Western Union sss 1ass
Bethlehem Steel IS, 1913; Standard OH Of
Ssiiiornia "a 1eIg 5s. 1881; United States Rubber
amy and Trust Co. first MORTGAGE 5La
Answer-fou have several caIlabIe
PONDS In this list, but that is no OH
lection il you will remember to give
your bank specific instructions on re-
them are called. You have done we'll
IN making your selections. We cues
ton, however, whether you should
carry diversification as far as you
have done. Bonds in $500 denomina-
tlons command higher price when
bought and bring lower price when
sold: We suggest that you reduce the
number OF issues by at least Ave,
From One Extreme to Another
Question: hold at present $1,000 IN
3D. Sth and 9Th Liberty bonds which
y, wish to dispose OF in order to secure
Taieeons seeh ls'u5n BOND. .sa sl1o have New York
mortgages I want as high an intsreas ent
as Is consistent with safety, which con,ss
ion ON Wn, tha 'I.y y1a kindly give me your opinl
TO- which ones to select. ngurtng on buytnE
ons one OF each at $1,000 BY adding sddiS
Bell Telephone Of Pennsyiyania 20 isss. isss.
houss = New York Edison Mssias ~ issS
Central Steel SIS. 1871; Diamond Matcb
sas,,., ~ 1926. What do YOU think Of Mis-
cent Gent adiaa,,as,& niamsas 4 Tesas series A, per
Hapid Transit Is. 1894. at SAT-. L. VS.
!. Ahswer-Like a great many other
investors you plan to 20 from one ex-
sieme 70 another. We have q general
IIDIeesion to the sale Of Liberty bonds, |
uut inns becomes decided objection
Imsn h ponds like Kelly ySpringield de-
ppentures and Central Steel SIS are to
oo taken as substitutes. Why not
s1rlke happy medium, IL you are de-
.ermined to dispose Of the government |
ponds Take the Bell Telephone 7s. |
New New York Edison 6hs (not 7s). West
iInqgnouse Iql Is, and add to these |
United States Rubber IS, 1947: |
canadian Northern Is, 1910, and IN
Iernational Paper 5s, 1917. Mis-
souri,, Kansas a Texas adjustment
os contain an element Of risk
owing to the fact that interest on
them Is payable only il earned. AT /
the moment this charge is being |
earned by q substantial margin. The I
interborough Is are secured by first |
os, which are q first lien on ali the I
csonpany's operating equipment, power I
houses and operating contractsE and I
franchises. By virtue Of the rsaijust- I
n1ent which has been authorised and
IS about to be consummated the
water" was squeezed out Of the In
terborouah system and there are good /
prospects Of the property being I
operated profitahly. Now that the |
CRISIS appears to have passed We do |
not think 1t logical for you to disturb |
your tnvsstmsnt In che per cent
natss.