davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-05-29
Investment Information
International Harvester

Qucstion--You seldom. r. ever, advise
purchase Of International Harvester pro-
fcrred stock, rated by Moody at Aaa. now
quoted at It2&, and advance OF 10 or ~
vestment than American Woolen pre-.
feried and American Ice preferred, both OF
which you have frequently recommended.
and do other authorities agree with MOODY
rating? May the OF the gasoline trac-
tor be expected to fayorabiy or unfavor-
Have tho foreign losses OF !. ~. been en-
tireIy written off. and may VIC expect an
carly Improvement In the purchasing pow
or of tho farmer? DisregardinR tho past
and the immediate future. what is your
opinion as to The strength and weakness
an Investment? Also kindly add any other
comments on this stock or value to an In
vestor.-L. n. NJ
Answcr-We consider International
Harvester preferred one Of the most
conservative investments Of its kind,
as good as American Woolen pre-
ferred and superior, in sense, TO
American Ice preferred The COM
pany's foreign losses have been writ
ten off entirely. international Har-
vester, in common with all other cor
porations supplying farmers with ess-
sential goods and materials, has suf-
fcred from the decline in purchasing
power of the agricultural regions.
But this situation is improving stead
lily though slowly and the improve
ment will undoubtedly rebound to the
benefit of farm machinery manufacture
erS
New-York tribune., 1922-05-29
Suhstifute for Phone Bond

Question-It Is my practice to io,,r" ,r ysry
suggestions made TO others in yoae ri.
interesting Investment lntorniauons &, ana
umn. Some time ago bought ia
Ncrthwestern Bell Telephone bond a, lain ,s,1
due 194. Recently several times .as ~ ~
to-day ] note you advise 'ranstei Ia Me
some other bond which is no, OF Es secsuss
we need the money. but must have ,.n,s l..
Would two $1,000 Erie converueus al
series A. B or D, all due 1853 II oous"' r re-.
ceive from one $1,000 Northwestern se. sr.,.
Do you consider the Erie bonds a,.sso
srade. safe investment? ] ekps,. v. 81 100
the next few weeks to have apou, ap,,,wSs ot
to invest. This represents our snsr. IL
many years rnd must be invested We vield
will be safe: at the same time a.sSera.
Is very important. Your KIND epns snnre-
tion and advice will be very much spp'0
Answer-Your Northwestern as ns
Telephone per cent bond is ssve ssve
security, and the only reason we ns I.
advocated disposing of TINS pohU We a
on account of its callable feature nS
do not know wnen, if at sll, the bohs
will be called, but the company nas as sas
right to call it il it wishes. II yos
prefer to hold this bond until ~ ;.x :.
called, or. if not called, until msturIl.,
we see no reason why you should IA
do so, If YOU decide to sell the conu
do not reinvest the money in Erie eoa a,
vertible 4s. This bond would be Ryy,. R",.
substitute for Northwestern Ben .,c
ephone, in our opinion. For your s..
900 you might consider the followi;nas
Canadian Northern Is, 1940: oni.s. ~.
States Rubber 5s. 1947; Kingd pm OF -,
Netherlands IS, 1912; Missouri. hsas.,,
& Texas Series A 5s, 1859, and sso.I
Of the Bell Telephone Company V
Canada.
New-York tribune., 1922-05-29
Dividends on U. s. Steel

Question-Will you please let me know
II United States Steel common ever paid a
higher dividend rate than at present OF
II they ever paid extra dividend? Also
how high did American Radiator sell
before the war? Is it possible for broker
to give worthless certificate for any
stock selling on the New York Stock Ex-
change?-L. Mob.
Answer-United States Steel COM
mon stock has paid per cent dividends
annually since 1915, and extra divi-
dends as follows: 1916, 2 per cent;
1917, 11& per cent; 1918, II per cent
1919, l per cent. The highest price
quoted on American Radiator common
stock, 500 in 1918. This price was
with par value of $100. The present
par is $25. We do not think there is
possibility of fraudulent certificate
being given the purchaser of security
on the New York Stock Exchange;
certainly not, if the broker is reliable
IT you have any misgivings concern
ing this, take your certificate to the
transfer Office shown on the face OF
the certificate and make inquiry.
New-York tribune., 1922-05-29
Locker Stock Speculative

Question-Can YOU tell me anything about
the American Locker Company It's Boston
agents, Pngree, Winans. Van Duren, Inc
They. offer a per cent equipment bond
which looks good. but I want to know some
thing about the business record of the officers
Of the company before buying their offerings
Any information which you give me will
be considered strictly confidential and greatly
apprecia ted.G. II. A.
Answer-We have been unable to OBJ
tain the necessary information that
would enable US to answer your ques-
ton on the management of the
formed that the capital of the company
is s5,0o0,0o0. of which about $500, ,O0O
of stock has been sold We have re-
ceived no list of the officers or financial
statement of the company. Circular
matter received deals principally with
the physical operation of the company
We cannot regard American Locker
Company stock as anything but spec
ulation.
New-York tribune., 1922-05-29

ments will be gradual. An appraisal
OF business conditions and prospects
leaves us unconvinced that there will
be Tightening of the money market
this year.
The only logical thing for real in
vcstors to do is to continue buying
income safely without considering the
minor fluctuations in the bond mar
kets. Let the speculator worry about
temporary Interruptions.
You speak of leaving your money
in Liberty bonds as an alternative to
purchasing higher yielding bonds that
may suffer a relapse. If you chose
sound bonds they are no more likely
to decline than are the government
bonds, for both are governed by the
would hold the Liberty bonds for their
greater security unless they are is
sues Of short maturity.
The Great Northern Railway of
Canada as are, we believe, entirely
suitable for q person in your circum-
stances. The bonds have an indirect
but certain, guaranty from the Cana
dian government One of the reasons
why it is possible to get such a bond
to yield as much as 6.1 per cent is the
smaller element of marketability, due
to the tact that there are less than
$5,o0o,o0O outstanding, and the ad-
ditional fact that they are not listed
in New York However, there is a
reasonably active market for them
among good bond houses in this city.
The Virginia Railway and Power IS
are suitable if you are in position to
keep posted on developments IN the
company. There is matter of snort
term franchises that may need watch
ing. We think you might consider for
your $4,000, in addition to the Cana
dian railroad bond, any of the follow
ing: Missouri, Kansas e. Texas prior
lien 5s, 1850, yielding about per cent;
Pennsylvania Railroad 61as, 1886,
yielding about Sc per cent; Western
Union el4s, 1886, yielding about 5.5
per cent, and Public Service Corpora
ton Of New Jersey SIS, 1869, yielding
about 81 per cent
New-York tribune., 1922-05-29
Prefers Lower Yield

Question: have read and followed your
snysce saa Tor several years and would be
s;xt,, gao to have ADVICE right now. I am
as follows: $4,000 Pennsylvanla rs: $4,000
Standard OH Of Californian $500 New
YORK Central debenture es; $500 French
per hrst preferred. 1 have $500 now that
| would like to invest. At my age 1t
seems inadvisable to buy bonds of high
looking for a sound investment OF lower
yield that can be bought at or below face
value With thc income from my invest
about $1,000 year. I would much appre-
ciate your advice as to a plan for invest.
thsa msat and i1,, ,,ugsestions as TO good bonds
Answer-Wc think you are wise in
deciding investments of lower yield
are advisable for yourself For pres
ent needs a purchase of Atchison.
Topeka & Santa Fe preferred or Union
Pacific preferred stock would seem
suitable. A plan that will take care OF
your annual accumulations had best
call for the selection of conservative
to high-grade bonds, also preferred
stocks Of the best grade. We would
suggest buying bonds Of $1,000 de-
nomination, as q more satisfactory
market is found; baby bonds are not
so active. During the year a savings
bank account would provide interest
on current income. The normal inter
est rate. varies with the demand for
money, but 80 long as you keep In
mind the Importance of safety as a
first requisite and are satisfied with
reasonable return we do not think
your problem will present any diff.
cuitles; IT 1t does. we shall be glad to
hear from you.
New-York tribune., 1922-05-29
Considers Radio as "Fiyer'

Question--Have boon interested
reader of your financial column for quite
vice you have given to others, not once,
but many times. am now. however, ap-
proaohinE you for the hrst time direct ana
know will be sound advice. Up to tho
present time have been strictly con
servative in my investments. buying only
the kind OF bonds which you designate as
highest grade" and I expect to follow
this plan in tho future with nco one n e*nep ,e
time) and that Is Radio Knowing as
do quite a little about the subject feel
certain 1t has a. great future-this is ire
spective Of the fact whether make money
by It or not-and have therefore made up
my mind to invest little-a very little
In the stock OF tho Radio Company. Now.
what I want to know is this. would you
consider the preferred stock listed in to-
days paper selling around az. or the
u'7' buy? Why S'i't is the common % selling 50 much
higher than the preferred? Another ques-
tion and I'm through A friend Of mine
selling around 42A Could you and would
you give mo some idea to the status Of
this company w. A.
Answer-You are not alone in ex-
periencng a desire "to take flyer"
From your letter, we judge that you
are in better position to do so than
most Of those who take a chance with
speculative stocks. A great majority
in this class, it seems to US, get burned
in speculative ventures before they de-
eide to stick to conservative invest
ments. AS you know, stocks of the
Radio Corporation Of America, how
ever they may be judged in the future,
cannot now be regarded as suitable for
investment. The preferred, par value
S., is backed by tangible assets, so far
as the last annual statement reveals.
come cumulative after 1923 at the rate
stock is without par value and repre-
sents patents, contracts and other in
tangible assets, and is entitled to div-
dends only after per cent has been
paid on the preferred. 1t is the specu-
lative medium and is more sensitive to
market Interpretation Of Developments
in the company. The recent advance
in price is attributed largely to trad
ers' belief that increased demand for
wireless sets for amateurs would have
favorable effect on earnings. Elec-
trio Storage Battery common stock,
selling around AZ to a., is the new
issue approved by stockholders in
April, which was created at the time
the par value Of the preferred was re-
duced from $100 to $25 The new COM
mon has no par value, but was ex-
changed in the ratio of four new
shares for one of the old. The old paid
S12 year and sold at about 10. The
new common, therefore, is really n
quarter share of the old, paying SO
annually in dividends. 1t has a good
dividend record and is suitable fos a
business man in a position to assume
the risks involved.
New-York tribune., 1922-05-29

That is one of the uneconomic fac
tors. 1t should not disturb the real
investor. Nor should there be any
apprehension over the operation of the
second force making for a temporary
stay in the forward movement. We
refer to the periodic indigestion of
new security issues. On more than a
half dozen occasions since bond prices
turned-in May, 1920--the market has
had to pause while new issues, pre-
viorsly bought by the retailers, were
being distributed. This is simply a
question of competition of the old with
the new. Distribution oe new securi-
ties has figured largely in this latest
pause Of the bond market.
The main factor for the investor to
consider now is the state of the money
market. During the three years ended
May, 1920, the average price of repre-
sentative bonds declined about 261a
per cent, for the twofold reason that
the purchasing power Of the coupon
dollar was growing steadily smaller
and rates for money were going per-
modify prices started downward bond
modify prices have apparently become
stabilized at new level and this fac
tor no longer acts as an urge to higher
bond prices.
But we still have declining money
market. So long as this condition ex-
lists bonds will work higher. barring.
of course, temporary interruption from
such elements as speculative profit
taking and security indigestion The
question, then, is how much greater
ease in money may be expected. Ri
diculously cheap money is sign Of
dull business. We are now enjoying a
moderate revival in trade. Next will
come prosperity and then imitation Of
prices, money rates and speculative Sc
curity prices. Much of the support
business men, corporations and banks
have been giving the bond market in
recent months will be withdrawn and
bonds will reach the end of the for
ward movement. All these develop
New-York tribune., 1922-05-29
Increased Safety Favored

pha h3uestionI Elssir,d ssvs 200 shares Of Phlad.l
also 2l6 shares of the Electric storan.' vsn. )
jys exchanged MY psf shares Gea' old 1iac havs
OF OF, tne m latter for the new. If should sell
would have a profit Of over s6.0oo' 10
you think 1t would be good deal to sell
ana 9einyest In mortgages paying 5,h per
conoe h,t knqw would be reducing my in
ior VIII soon be getting old, as am now
~ my eighty second year. Please tell mo
II you think my present holdings are safe
and would you advise me to Keen them,
S. e. C.. "
Answer - If your question simply
raised the point of the advisability
OF taking q profit on stocks that had
appreciated in value we should have
TO decline to express an opinion. AS a
mater OF fact, under ordinary cir
cumstances we would see no reason to
make change; but when one gets along
IN years and feels disinclined to keep
IN close touch with financial affairs
or the companies whose securities he
noids he may we'll consider the posi-
bllity, Of making an exchange for less
speculative securities, in our opinion.
ny this we do not wish to impiv that
Philadelphia Electric and Electric Stor.
age Battery stocks are unsuitable for
q, person who can afford to assume
the risks involved. We simply take the
view that high grade bonds-first mort
gage 51as or listed securities yieldinp
aoout this rate-would be more su;ta.
Bile under the circumstances. H;rh
grade bonds suitable for YOU are IRE.
quently mentioned in these columns.
New-York tribune., 1922-05-29
Electromagnetic. tL2s

ouestion--A few years ago bought
| poljtan Az per cent collateral bonds for
| which ! paid about S5.s0o deposited
these bonds with the depository Of the
| pamphlet by which am requested to pay
IS for each thousand of the bonds TO the
committee and they want sl,6oo. which !
onds. II do not pay this 81 500 they will
arr,opriate SO per cent of my deposited
connscatory. % or ana rG dc do not not sec see how t they w
possibly could do such thing. Wil you
kindly advise me in your valuable paper
ing these bonds?-J. Il +.
| Answer There is no question of
confiscaion in the rcadjustmcnt plan
of the Interborough Rapid Transit and
Manhattan Railway, as we have read it.
The lnterborough has reached point
where a rearrangement of its financial
obligations is necessary as an alterna-
tive to receivership. In the event of
rcceivership you would simply share
in the proceeds Of the sale Of the col
lateral securing the marlborough Met
ropolitan and the sale Of other assetl
of the Interborough Consolidated Cor
poration. That is precisely what you
will get if you do not participate in
the readjustment plan. All the Inter
borough RAPID transit company STOCK
will be sold, probably at an upset price
fixed by the court, and the other assets
will be disposed of later. In asserting
to the plan you will save either 40 or
100 per cent of the lnterborough stock
securing your bonds, and certainly this
stock would have greater value with
the Interborough a solvent concern
than it would with the company in re
ceivership. Why not take up with
your banker or with the broker who
sold you the bonds the question of
borrowing to enable you to purchase
the necessary $1,000 Of new per cent
notes, and thereby retain 100 per cent
of your bonds? As collateral for such
q loan you would have 6 per cent notes
with a present market value of 81 200
and the fifty shares of 1nterborough
Rapid Transit stock securing your Az
per cent bonds. This stock has mar
ket value at present of about 81 800
In addition to this s2,70O collateral for
loan of $1,000. you have your share
in the other assets of the Interborough
Consolidated Corporation, and these as
sets have a value estimated at $50
to $50 for a $1,000 bond. Of course,
you would not come into immediate
possession Of the latter item, but it is
something that may logically be intro
duced as collateral for loan.
New-York tribune., 1922-05-29
New Virginia-Carolina Bonds

ouestion-Would you rate the twenty
five year I per cont bonds OF the Virginia a.
Carolina Chemical Company a good in
vestment for business man past sixty
years who Is in comfortable circumstances
and keeps fairly we'll posted in his invest
ments?--A. r. ".
Answer--We consider the new Vir-
ginin- Carolina Chemical rs, 1947, we'll
secured and suitable for business
man in a position to watch develop
ments in connection with the COM
pany's financial position. Agricultural
conditions in the South have improved
since the close of the company's last
financial year, May 81, 1921, but an
accurate idea of the progress made bv
the company cannot be obtained until
the publication of this years annual
statement. The company has good
reputation, but the retrenchment of
farmers, especially in the cotton belt,
made serious inroads on the companys
earnings after the slump in cotton
prices
New-York tribune., 1922-05-29

uon1VW kindly advise 'oheher Vrg"" ha'0ov ana
refunding mortgage S. due 1884, are sole
her liUing secretary dt J""
salary bH o possible on her s0o"9s
Northern Rnilay Company OF Cdnddd
Brokers yd 75
and the latter
this favorable for buying bonds or 10
Liberty bond Whct natural
hare $4,000 to M
rest.-E L. H.
Answer-When this favorable moment for buy
doing thousands investors do at every
be inferred from the rreguay
the have their doubts
the fact that has been checked always to
raise doubt the minds who would otherwise buying
bonds without hesitation qubbng about the
price.
should be confused with the operating the market
belief the securities
the stock We
true investment buying They
holding for the that What they
profit order realize this
think the time We last this
checked the
noted the Recently
another general attempt to take profits.
New-York tribune., 1922-05-29
Goodrich Common Speculative

Question--1 am the owner of twenty
shares Of Goodrich common stock Ten
shares purchased in July 1920 at SOL.
and the other ten 7 purchased In January.
1921, at 1s4. VIII you kindly give me
Your opinion OF this stock. whether I
should hold it for tho long pull make a
switch' II so. what stock do YOU rec
Answer-B. F. Goodrich common
stock is speculative, since no dividends
are being paid on this class Of stock
at present. The company has shown
progress in recovering from the de-
preston felt throughout the industry
but we have no means Of knowing
when earnings will reach the point
where resumption Of dividends may
be expected. Until that time the stock
must be considered speculative, and
we could not attempt to say whether
you would do better to forego a return
on yaur capital in the hope of price
recovery to the point where you could
get out without loss, or whether it
would be better to take the loss now
and put your funds in securities af-
fording an income. That is specu-
lative question you would have to de-
eide for yourself.
New-York tribune., 1922-05-29
Texas Gulf Sulphur

Ques.ion-will you let me have your e3-
pert advice on Texas Gulf Sulphur! is
its dividend safe? Also Is 1t good IN
vestment ID. p. Il
Answer-Texss Gulf Sulphur Com
pany has a present capital Of s6,Soo.:;.
900; its property is situated at Gun,
Tex, and the company is reported 70
have producing capacity Of more tnsn
100000 tons Of sulphur per annum'
The last dividend declaration WAS sL'
or at the rate of per cent annaa,.l!
We think you realize the stock OF 'h.s z
company is speculative. 1t is not III
any sense an investment.
New-York tribune., 1922-05-29
Wants Common Stocks

question: am a daily reader OF Th.
tribune. Kindly let mo know about one
nan dozen common stocks with the high
oe recommended for woman in business
1or herself and enjoying a good income.
Liberty bonds-E B. 0N '''
Answer-From your Liberty bonds to
even the best common stock is "fo =
cry" However, since YOU make The
definite request, we name the following
common stocks as having good invest.
ment value: Southern Pacific. Cana.
dian Pacific, Atchison, Topeka & Santa
re, American Tobacco, National Bis
cunt, F. w. Woolworth and Am merican
Telephone and Telegraph.
New-York tribune., 1922-05-29
Bonds of Similar Grade

Question-Would you consider chica ro
sn,1ah,s Eas1ern illnois IS. 1851 selling at S.
Dutch East indies es Are s1saeps the la,ter tSo o5
Ftns ss9 TO- 10 m
pieces! pieces Present holdings Gathers, Tor
whom y'aHd, saDo above ts under considera,ion) De
61as 1929, $500: Beigium 71as $500: Ar.
ss.s ss4s, $500; yi,ctory ana Liberty. $3.50;
later nn defaulted interest); savings. $1,000
no nc; t,atas insurance aa age. sxtyseven Please
s of Rsotory ass LIST
preferred, with common bonus; received
hhividend ha. a! for three years, and haven't
thankful for any information you might
give mel. D.
Answer - The bonds mentioned for
relnvestment of funds from $500 Vic
tory notes are of nearly the same grade
and selection would depend on your
preference after taking certain factors
into consideration. Netherlands IS are
payable principal and interest in guild
ers while Dutch East Indies IS are
payable in dollar currency. Chicago &
Eastern Illinois 5s, 1851, are general
mortgage bond subject to prior liens
amounting to $10,400,O 900. With the ex-
ceeption OF Netherlands 6s all of these
bonds are available in $500 pieces. In
ternational Mercantile Marine 6s rank
slightly higher than the others, we be-
lieve. Your fathers investments seem
to reveal tendency to sacrifice safety
for return. At his age safety should
be the prime factor. Purchase of a
Canadian Northern 81 per cent bond.
le46, would be advisable for a portion
OF the savings bank funds. Lack of in-
surance at his age, sixty-seven, is a sit
uatlon that cannot easily be corrected.
we suggest, however, that if income is
sufficient to allow for premium nav.
ments, small policy be taken out. bro
'ylded, of course, that examination can
be passed. If you will furnish us with
some data as to the Rector Gaslirht
Company that will enable US to locate
its home Office we will endeavor to Sc
cure information as to the present sta
tus of the company.