davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-10-02
Watching Company's Earnings

lihe, this: The bonds are reasonably
IN a position to keep watch of earnings
of the. companies" Just what do you
mean r by such statements? 1t seems to
drop, the inyestor is bound to lose his
dividend The only difference between
your watching" investor and another Is
that the watcher VIII know little sooner
that his moLey Is lost. / always watch
earhinss, but when there are none neither
bare, neither Mother Hubbards dog nor
any other dog gets a bone: and the Hub
bard dog was famous watch dog.--H. J.
Answer-On August 13 The New YORK
Tribune published an article touching
OIL the subject about which you in
quire. The article attempted to show
why some investors should buy only
those securities which they can put
away in safe deposit box without
giving attention to them except on in
terest and dividend dates. These in
vestors belong to the class who have
in position, therefore, to read the
signs Of waning strength. Other in
vestors can see the handwriting on the
wall and can act accordingly before it is
toe late. They can >act, to use your
own language, before "the cupboard is
bare" Remember that under certain
conditions the bonds of a company may
retain all their strength even though
operations are being carried on at a
loss, while in other cases corporations
are not in position to withstand
period of even temporary negation of
earnings. You are not altogether cor
rect in stating "if business is bad and
earnings drop, the inventor is bound to
lose his dividend" We could cite sew
cral instances where corporations, dur
ing the last two years, have continued
paying dividends that have not been
earned, and in doing, so they are not
guilty of lack of conservatism. The in
vestor who takes securities containing
some element Of risk should be in a
position not only to watch the earnings
of the company, but also to determine
from q study of the latest balance
sheet how the company can continue to
pay unearned dividends.
New-York tribune., 1922-10-02
Says Interest Rates
Reflect Better Business

Explaining the recent firring up OF
interest rates and the increased mem
Der bank borrowings at the Federal Ra-
serve banks, the October issue OF "ehe
Monthly Review" of the Federal Re-
serve Bank of New York remarks /:
"These changes all indicate an increase
IN the demand for funds which. while
it comedies In time with the seasonal
needa OF agriculture IL, more probably
reflection of more fundamental activ-
ity in the business and industrial life
of the country"
AS long ago as the summer of 1921,
the moutnpiece Of the bank continues
forces were SO. in motion in business
and industry, which have gained i'm
petus slowly but steadily, and at last
have begun to make themselves felt in
the increasing uso of bank credit for
commercial purposes.
'sIn the light of the incrnsses shown
by these various indices Of business ac-
tivity, It now seems probable that the
New-York tribune., 1922-10-02
American Tobacco

ouestion--Do you consider, American
Tobacco &C 81 corrnlon stock a sub
stantial Investment? II 80, why is 1t SELL
ing, out OF line with other stocks Of its
Car and Foundry, General Electric. Mex
lean Petroleum. etc &c. b.
Answer-We consider American To-
bacco Glass "B" stock substantial in
vestment, to use your own term. Amer.
lean Car and Foundry and General
Electric are selling higher because they
are better seasoned, the former having
reserve sufficient to pay regular
dividends at the present rate for three
years, even if the company did not earn
dollar on the common stock for that
pericd. Mexican Petroleum is not to
be compared with American Tobacco oil
the other two stocks. 1t is highly
speculative issue, despite the feet that
ct the moment the l2 per cent dividend
is being earned by a wide margin
What tomorrow may bring forth is
another question.
New-York tribune., 1922-10-02
Kanawha 6 West Virginia

Questioa-I am holder Of diversified
list OF rail and public utility bonds Of the
better grade and would like to ask you,
nawha 2s West Virginia first S. 1855
am contemplating taking some Of these
bonds and would appreciate hearing from
you ct the earliest possible moment. as
expect to go out Of town shortly and for
this reason, would like to clean up ms
financial affairs.--A. F.
Answer-Wo consider the Kanawha
& West Virginia Railroad IS a good
investment. This bond is virtually &
New York Central obligation. The
road is controlled By the Kanawha G
Michigan Railway and operated by the
latter under lease. The Kanawha 6
Michigan, under recent agreement, is
leased to the Toledo & Ohio Central
and the latter in turn is leased to the
New York Central.
New-York tribune., 1922-10-02
"Rigkts" Puzzles Him

Question-Having read your column
With With interest for long time feel It is
to me rights Of subscription to new stock
How long are they good for? cannot
reconcile the - difference between rights
60 American Telephone and Telegraph plus
cost 800 and the market price around
$l2i And Just where am l wrong on
this assumption? Buy certain number
OF rights to Crucible at the market s1/S
hold till 1t crosses S100 and cash in at the
rate of 81 per point per right That would
peat peat puts and calls wouldn't 1t? But
me where the s!ipup is In Crucible, is 1t
b rights to the snare or l right ?--F. w. s.
Answer" Rights" represent the
privilege that attaches to stock Of rec
ord OF specified date to purchase new
shares before a later specified date.
The value varies with the price of the
stock already outstanding and Of that
to be issued. In the case of American
Telephone and Telegraph, five rights"
are needed to buy an additional share
fore, the rights" would cost $3.50
and the stock S10o, total of $1175O,
but it must not be forgotten that when
all the new stock has been issued the
number of shares will be increased 20
per cent and the market value of
each individual share will be reduced.
since four-Gfths will have value Of
about $120 to S121 share and one
fifth about $117.50 a share, There will
be settling to a common level. The
issue Of additional stock will be grad
ual, however, for payments. may be
spread over eight months, and stock will
be issued only on November /, March 1
and July 1. In the case of Crucible
Steel, shareholders of record Septem-
Der II were offered the right to sub
scribe for one additional share of COM
mon for each fifteen held. capitaliza-
tion being increased $4,000 shares.
Rights expire September 27. Unless
the stock sells above 100--and 1t is
considerably below that figure now
before September 81 the "rights" will
be valueless
New-York tribune., 1922-10-02
An Unw.aa Exchange

Question: have been advised to dis
pose OF Liberty bonds which I hold and
curities As ] am not In a position to
take chances, even with small amount,
would appreciate having your oplnion
regarding such an investment. for which /
thank you in articfpation.Miss H. A.
Answer-We are of the opinion that
you would be most unwise to buy Di
Giorgio Fruit stock with the proceeds
of sale of Liberty bonds. Besides re-
linquishing the best possible invest
ment you would obtain therefor moth
ing better than risky speculation.
Units" of Di Giorgio Fruit are Of
fered in the pnlisted market at S5,
which is considerably less than the
price asked by brokers selling stock
for the company.
New-York tribune., 1922-10-02
Suitable Investment Eonds

Question: have q little money to In
vest and have been given the following list
o. O. bonds as being suitable. Northern
ment ss. series y. due 2O47: Northwestern
Ie, Telephone Company 7s: Chicago.
indianapols &; Louisville Railway refund :
ms Us, 1e4Y; Canadian General Electric
Company debentufo "a" Gs. te42: Northern
states Power Company first and refunding
os. 1871; American Sugar Refining Com :
pany 6s. 1897; Pennsylvania Railroad Is.
1870. shall be very grateful II you can
give mo advice on any all of tho above
seourities.---Mrs II. c. II.
Answer-All Of these bonds are Of
good grade and suitable for conserya-
tive investment. An objection may be
raised to the purchase Of the North
western Rell Telephone rs owing to
the fact that they are callable at any
time at price fractlonally below the
current market price.
New-York tribune., 1922-10-02
Regal Shoe Reports Loss

0uestion-Wlil you kindly publish IN
your financial column OF Tho New York
Tribune any Information you may have
regarding the stock of the Regal Shoe
Company, of Boston, Mass? In 1907 I
bought few shares OF this stock and re-
cluding October i. 1921 on January j.,
1922. the dividends were suspended after
the readjustment period appeared to be
over with most manufuct cturtpg industries.
"A. D. NJ.
Answer-Operations of the Regal
Shoe Company for 1921 resulted in con-
siderable loss, as evidenced by deple-
ton Of the 1920 surplus Of 29,061,
which was replaced by a deficit OF
$253,o72. Inventories were $1,000, 900
less than the previous year, and total
assets, including $2,500,00o good will,
were placed at $500 GIT.
New-York tribune., 1922-10-02
Kelvinator Stock Speculative

es o%estionGHave +. r beer advsed to buy
be bought for sc & share but before
making such purchase thought it wise to
write you and learn what you would sug-
gest. doing Is 1t good buy and safe
one TX. N. r.
&nswer-T.he Kelvinator COMPANY
has been in operation for more than
seven years and prior to this year has
not shown profit. Cost of develop
raent work has been large and resulted
in depletion Of capital to n point where
new capital is needed. A balance sheet
of the company shows equities for
$4,000 outstanding shares Of about 50
a share. Until substantial exhibit
of earning power is the result Of op-
erations we characterize an interest in
the stock Of this company as specula-
tive, and if you are seeking an invest
ment that is relatively sound we rec
ommend the preferred stock of Atchi-
son or Endicott-J ohnson as fulfilling
your requirements.
New-York tribune., 1922-10-02
Utility Companies' Stocks

ouestion--kindly give me your opinion
on the investment qualities OF the follow
Ing stocks; Kansas City Power and light
Company per cent preferred stock Gust
being fssued) New York Telephone Com
pany 6,h per cent preferred stock, consoli-
dated Gas, Electric Light and Power Com .
pany Of Baltimore 8 per cent preferred
stock, Standard OIL OF New Jersey Z per
cent preferred stock. American Telephone
and Telegraph Company common stock
c. f. X
Auswer-New York Telephone pre-
ferred stock and Standard Oil of New
Jersey preferred stand In the first rank
OF preferred stock investments. The
,, other two preferred issues are of Sec
ond grade, although supported by q
reasonable margin Of earnings over
dividend requirements. American
Telephone and Telegraph stock owes
its investment position to the wide
divcrsifcation of the company's field
of operations. 1t is this diversifcation
that makes very large margin of
earnings over dividends unnecessary.
New-York tribune., 1922-10-02
Preferred Stocks Better

Question-Will you print whether I can
sce they safe investment; Bordeaux Gs,
1894; Lyons 6s, 1894; Marseilles 6s 1895;
porto @ Allegro IS, Seine 7a, 1912; Toxic IS,
l92o. have $500 to tnvest.--C. A. C.
Answer-The Bordeaux, Lyons and
Marseilles 6s come in S100 pieces and
the City OF Toxic bs, 1852, come in de-
nominations as low as s2O The other
two bonds cannot be bought in pieces
smaller than $500. The French city
bonds are hardly the kind of security
for small investor with only $500
available. We suggest good pre-
terred stock as a suitable investment
for the whole fund American Ice pre-
ferred ( 9 per cent? or New York Tele-
phone (61s per cent? preferred are the
kind of stocks we have in mind.
New-York tribune., 1922-10-02
Let Others Assume Risk

Question--Can you give me any infor-
nation regarding. the Hanover Motor Car
rupt PARENT Motor Car Company at Ruf-
falo They offer shares to those holding
Parenu stock at half price, or half as
much as they will sell to outsiders
H. NJ B.
Answcr-We have not seen the plan
Of the Hanover Motor Car Company,
but inasmuch as the Marine Trust
Company of Buffalo, trustee for Par
enti Company, abandoned efforts to
resuscitate the company and announced
its intention to sell the company's
property and distribute proceeds to
creditors, we consider it would be ad
visable to wait until new owners have
demonstrated ability to operate at a
profit before buying shares.
New-York tribune., 1922-10-02

If you were putting through this
deal you would sell 100 shares of stock
for $4,000, less commission and tax
amounting to $19, receiving total Of
$12,181. Then you would buy 400
rights, paying $1,000 plus commits
sion of $50, or a total of $3.50. You
would buy 100 shares of stock from
the company at 100, plus $2.75 share
of S1o2.75. share. or S1o,275 for 100
shares. This. would make a grand total
Of SILT
Deducting this total from the s12,1s1
received from the sale of 100 shares
of stock you would have an apparent
profit of 1885, Now what is the con-
clusion? Remember thak in the pur-
chase of these 100 shares of stock from
the company you used 100 rights hav-
New-York tribune., 1922-10-02
ing market value of sa75, to use your

own quotation again.
Why not sell the rights in the first
place for S375, realizing profit of that
amount instead Of using the 100 rights
profit Of 1886? Your profit on the
whole deal, as we have outlined it,
would be $11, or IL cents share. If
you take your own method OF handling
the hypothetical deal the cost Of the
transaction would be $40 more, repre-
senting the commission on the sale Of
100 rights and the repurchasc Of them
to acquire enough rights to entitlc
you to subscribe to 100 shares of stock.
Your profit would thus be about 81.
Your only profit is in the 100 rights,
worth from $3.50 to $375.
New-York tribune., 1922-10-02
Mail Order Stock

Question: have been told that Mont
gomery Ward. now selling around %. is q
good buy In view of increasing prosperity
of farmers. sta b!lized prices, etc. May
have your opinion?--E. H. Z.
Answer-The outlook for mail-order
houses catering to rural buyers is con-
siderably brighter now than year
ago, but since Montgomery Ward stock
does not receive a dividend it must be
considered speculative, and we cannot
attempt to say whether these improved
conditions have or have not been dis
counted In the price Of the stock.
New-York tribune., 1922-10-02
One Bond Eliminated

Question: have $500 to invest. To
which of the following bonds wonIl xa,,
give preference: st. Louis-san Francisco
Canadian Northern rs 194a; Swift d Co
Is, 1s3lf--A L. K. "
Answer--All the bonds you have un-
der consideration are good investments
The Swift Is. while good investment.
must be eliminated because ahey have
been called for redemption. We sug-
sses ssess the Great Northern rs for YoSr
New-York tribune., 1922-10-02
Inquiries Should Be Signed

Inquiries addressed to this depart
ment OF The Tribune are regarded as
confidential, but to show the writer's
good faith all should be signed and an
address should be inclosed fer reply.
Letters from the following are being
held for Identification: $. B.. "Con-
stant Reader" r. II. K, E. E. S., j. F.,
"Widow.o j. 2. Nj, j. C., Mrs. A. w. P,
J. A. LeB., NJ. b., j. a. r., Mrs. NJ. c.,
]. A. G., Mrs. NJ. G. w. and ]. r.
New-York tribune., 1922-10-02
Great Northern Dividend

Question-Kind'y tell me when divi-
dend is likely to be paid on the Great Nor
thern per cent preferred stocks.--R. e. w.
SAnswer-The last dividend on Great
Northern preferred was paid on August
l, 1922. Dividends were made payable
semi-annually by action Of the directors
last spring and the next payment will
not be made, therefore, until six
months from August /, or February /,
1923.
New-York tribune., 1922-10-02

Questions Of general interest to in
resfors tpiiI be anssoered in this cot-
urra, In ,chich case only initials spill
be used. Others ,oill be cnsweYed By
mail Address oil inquiries. inctos-
eng stamped, addressed envelope, to
Financial Editor, The Tribune, i54
,Nessaa Street. Ncw York City,
New-York tribune., 1922-10-02
Exchange of Temtor Stock

Qucstion-A bout two months ago
BOUGHT 1000 shares of Temtor Corn and
stock at 21s share. ] really have in
vested my very last penny in it, To my
SUI surprise r, +, read in the newspapers that the
bought the assets of the company for
sl,ooo,ooo, SO thought to apply to you
yss MY nn aHd ask you II
the affairs OF this company? am a
holder of tho common Glass a, selling now
on the big board at 81 share. Please
lnSs for a new one.-J. X.
Arswer-The stockholders protective
committee for Temtor Corn and Fruit
Products Company announced in Au-
gust plans for the formation of a new
company, to be known as Midwest Corn
Products Company, with $2,OO0,OO0 au-
thorized capitalization, consisting Of
$800,000 first mortgage per cent fif-
teen-year bonds, $1,O00,OOO second
mortgage Z per cent twenty-year bonds,
S1,000,000 per cent non-cumulative
preferred stock, par value 500 share,
and 275,0oo shares Of no par value
common stock, of which there will be
outstanding 100000 second mortgage
bonds. $3.50 shares of preferred and
275,00 shares Of common. Under the
plan it is proposed to assess Class A
shareholders $5 a share They would
receive in return 100 per cent of the
cash payment in second mortgage
bonds, like amount in preferred
stock and two shares of common stock
for each old share. Common stock
holders who do not subscribe to the
plan may exchange their shares in the
new company share for share Glass
stockholders would be permitted to
subscribe on the same basis as A
stockh olders, but securities would be
delivered only on a pro rata basis out
Of those not taken by A stockholders.
Glass stock holders not subscribing
would receive one-quarter Of share
OF new stock for each share held.
New-York tribune., 1922-10-02
Need Not Disturb

Question: am inciosins a list of Sc
and will greatly appreciate your advice
and suggestions concerning them. My hus-
band is a physician. and OF late his health
hard, as men in his profession are obliged
to do and / have always attended to our
Investments because of his lack OF time to
Give then atteution. The condition of his
| health has caused me TO think of the pos
ability confronting lis. If he were i'll for
any length OF time or unable to practice
He is forty nine years old, and am forty
five. l an. therefore, moro desiroca thnn
ever to be cure my Investments are secure
ana giltedge, and IL there is any way to
keep Them 50 and set more income from
them should welcome your suggestions
for l do not wish to discuss these matters
With him. under the circumstances. / am
anxious about the Burns Bros preferred
and the American Beet Sugar preferred,
and ] Go not know whether | should sell
paying more interest or not [ have held
on to them for patriotic reasons. and be-
cause, ! felt should all else fail US they
from his lnbors and the yield OF our secu-
rites I have told YOU the situation ana
shall rely upon your vide experience and
lnowledge in these matters. Needless to
say, l shall feel very grateful. $1,000 each
of the following: American Telephone and
Csnada 514s, 1929 Hydraulic Power Mag
ara first mortgage 5s Michigan Northern
Power Company first mortgage 6s United
rgdom Great Britain and Ireland 5lss,
1885,; WickWire Spencer Steel Is; Calves
tor. Harrisburg 6. San Antonio Railway IS:
Detroit Edison Company la4o; $500 De
troll Edison Company, series b; $500 De
Laval Separator Company IS: $l,1oo Lib
erty. loan, 1917, 9Ms, 500 Liberty loan,
second convertible AIS; $l,15o Liberty
loan third convertible 4As; $3.50 Liberty
loan fourth ANS q was obliged to sell my
ts; 90 shares Alabama & Great Southern
Is; 10 shares Burns Bros. of New Jersey
Is; 10 shares Southern Pacific common; 8
IT,,iT anti, ayl,.,
Pacific OIL; 20 shares DRUG Products Com
paEy, Inc.-Mrs. NJ. T. IL.
Answer-The two stocks about which
you seem to be doubtful need not be
disturbed. The American Beet Sugar
Company has passed through most
trying period without suspondng divi-
dends on the preferred stock and it is
fair to assume, now that the produc-
ton and sale Of SUGAR have become
more profitable, that the stock will
continue to return regular income. We
also consider Burns Brothers pre-
preferred stock as strong enough for
you to hold. There are no stocks or
bonds on your list that need attention,
but owing to the possibility. of con-
dltion wherein you would need all the
income that your securities could re-
turn within conservative limits, we
think you might dispose of some of
the Liberty bonds. The 81 per cent
issue is primarily the security for
wealthy persons seeking tax exemp-
tion. The third Ans will mature in
six years. We think you might logi-
cally dispose of your s2,250 principal
amount of these two issues and re-
invest the proceeds in 20 shares of
the New York Telephone sh per cent
preferred, selling recently around 100.
The dividend on the amount of this
stock now outstanding was earned
about eight times in 1921.
New-York tribune., 1922-10-02

Thank information be ebe to me- W. T. JR
they that have
but shall of 122 for the and 3 for the
rights
In the first you through this deal there
would logic selling rights then buying
charged
the sale of
New-York tribune., 1922-10-02

Four full columns OF in.
vestnsent questions and an
sxers aviIl be published in
The Tribune eUery Sunday
and Monday. On other days
one full column ,cill appear.
Vernon Parish Democrat. (Leesville, La.) 1917-193?, 1922-03-30
PRIZES AWARDED BOYS
FOR FORESTRY WORK

Commissioner Alexander Of the Lou
isiana Conservation Department, has
announced the winners OF prizes in the
contests Of the Boys Reforestration
Clubs Of Louisiana. The cash amount
Of the prizes. exclusive Of the awards
made by separate parishes, was $780,
the money being donated by the Great
Southern Lumber Company OF Boga
lusa. The judging was done by v. H.
Sonderegger. superintendent OF the
forestry division OF the department,
and by H J. Stahl, who had supervis-
ion of the various classes and clubs.
During the first half of the year
there were enrolled in the clubs 664
boys in all sections Of the State. The
clubs were organized after the manner
Of the boys hog and corn clubs and
are meeting with equal success. Some
of the tracts of forest under the con-
troll of these boys and inspected by
the judges were considered equal to
the forestry reserves under the control
Of the experts of the Federal govern
ment. Each boy kept record of the
work performed on his plot from one
to three acres of second growth pine
or hardwood Other boys took plots
that were partially seeded or barren
and either planted the seed or trans
planted seedlings in their areas, thus
perfecting real demonstration.
Vernon Parish Democrat. (Leesville, La.) 1917-193?, 1922-03-30
SELL YOUR CORN TO A
PIG, EXPERT ADVISES

The hog market is strong and steady
and the indications are that it will con-
tinue good for at least sixty days, ac-
cording to F. L. Burleson, in charge
of swine work, Extension, Louisiana
State University. If you have hogs
ready for marketing you can't afford
to feed them longer; if you have feed
er hogs you can't afford to board"
them; market the finished hog and
finish the feeder. he advises.
Corn is bringing around fifty cents
per bushel on the farm. - continues Mr..
Burleson. Hogs are quoted at 10 to
] cents per pound on the central mar
kets, and can be marketed net around
. cents, if Of desirable weight and
finish. With fair grade Of hogs, 500
pounds Of corn (plus green pasture,
|or little protein supplement such as
tankage or shrimp bran) can be ex-
pected to produce 100 pounds of pork.
his corn in the crude form has val
ue Of $500. Ii is fed to hogs and has
"a net value Of $500 or IS cents per
bushel.
This means a clear profit Of about
20 cents per bushel for each bushel Of
corn fed to the hogs. There is also
a meat profit of from to ~ cents
per pound of initial weight Of the hog
by the feeding operation. In other
words. the hog is changed from a 6Iz
or cent animal to one worth 8 cents
"a pound