New-York tribune., 1922-12-31
Trustee for Sister


dependent sister and viii have about
5000 In each 20 invest. VIII you kindly
give me your sdvice a. 70 how this sum
ss oq rst. i.Faiy ,s.s. n 70 se ~, ns
nv.sied. a. part q Inc sanns fund.
if.ooh in bonds ss follows cleveland
Eiirtrio Illuminating Company hrst mort
gses per cent gold bond. 1919. $1,000
Northern states Power Company arst and
refundlnE mortgage twsnty-hvs-yesr g pr
cent gold bond. Series A. iti. 81 .e0A
first mortgage t~-nty-hVs-yesr per cent
sinking fund Eoid bond. 1917, $1,000, Caro-
lina Terminal Company hrst mortgage
twsnty-hys-yesr ; rsr cent sinking fund
ask II these bonds should b. retained. o..
II not what would you suggest they b.
exchanged fort Would YOU adNise that
deai through regular bend brokers' or
trust company? ! would much appreciate
your advice in this ttsr--Miss r. ~. X.
Answer-If you are bound strictly
BY the laws governing the investment
Of trust funds in New York State. the
bonds you now hold are not qualified
rs investments for your sisters funds.
The following good bonds are legal for
trust funds and We suggest that you
select from among them three or four
as an investment for the $4,000 men
toned; Norfolk & Western 6s. 1884.
selling recently 20 yield about 90 per
cent; Northern Pacific Fefunding and
Improvement 6s. 20I7. yielding about
SIS per cent; New York Central refund
ing and Improvement 5s. 20l3. yielding
about So per cent; Minneapolis, 81.
Paul & Sault Ste. Marie first consoli.
dated IS. 1893. yielding about 81 per
cent: Raltinors & Ohio refunding and
general rs. 1895. yielding about 5.s per
cent. and Indiana, Illinois & Iowa first
IS, 1880 yielding about per cent
Wants 10 Know whats Behind
question VIII you please riv. NJ IN
formation - 20 What ls behinn the ttochs
and bonds named below and yeur opinion
.s 20 th.ir safety. especially the to'o las
named. Bethlehem steel preferred o.
both old and neV. Are either or ooth cV-
mulative7 why are they beloN pa
Which il IN. better Royal puich or
New York. American Telegraph and cable
gs % 1882 why below par ovt tol
7 sew your reply - correspoL snt ABOUT
this stock some TINE ago. w,s's. s9s.
principal be paid Al the market IN 1917
I pmplre Gas and Fuel liSS 1881 sefles \
bonds. who are thty y u fooo ~"
safe for income 2--F. T.. NJ.
Answcr-You will note that the two
/ classes Of Bethlehem Steel per cent
preferred are selling about on a parity:
/ The old stock is cumulative ana
tho nov In cumulative. In the reeapi'
/ talization plan incident 70 the acquin-
/ tion Of the Midvale steel and Ordinances
/ Company and the Cambria steel Com'
many. this issue OF new Z per cent pre-
4 ferred stock Is created, md u "a pro
vidod that The old Z per cent pre-
ferred may be exchanged for the new
/ preferred, par for par. st any time
3 prior 70 January ! 1923, and that the
I s per cent preferred may be exchanged
AT the rate Of Sii5 Of new stock Tor
every sio0 share of s psr cent stock.
The new preferred IL the logical issue
10 take II you have decided TO buy one
ofthcm. American Telegraph and cable
5 ner cent stock ~ selling 10 faT belo"
par for the reason that, although he
Western Union Telegraph Company y
obligated 10 psy ; per cent dividend
on this stock. the obligation ceases IN
1892. The element - uncertainty sur
rounding this stock Is due 70 doubt
shnuf the action the Western Union
will take with respect 10 the renewal
Of its loste and guaranty. II the
Western Union should decide 10 let
the lease lapse. the American Isie-
srsph and Gable would he compelled 70
op.rste its properties on its own ac'
eount. find another lessee or dissolve.
The Western Union does not guarantee
70 pay anything but the dividend, and
that only until 1882. The Empire bas
snd Fuel Company is controlled by tn,
cities Service Company. II is engaged
in the production. refining and mar
keting Of oil and is products and IN thc
distribution Of natural gas. owing 20
limited area in which the company
opersies End 20 the nature Of its nusi-
ness. there is an element OF FISK IN
these ~ per cent bonds.