davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-03-19
[ PRUDENTIAL Sells
Bank Stocks to
Julius S. Rippel
About S2,6OO,OOO Prob
ably Involved in Trans
action; Rumored Dryden
Will Quit as President

NEWARK, N. j., March 19-Julius
S. Rippel head of T. S. Rippel and
Company, bankers and brokers, Of Is
Clinton Street, yesterday afternoon &C
qured all the bank stock holdings of
the Prudential Insurance Company, ac-
cordlng to announcement to-day. These
holdings consisted of 20 per cent OF
the stock Of the Fidelity Union Trust
Company, and between 400 and 500
shares of the stock of the Merchants
and Manufacturers National Bank The
market price of the Fidelity Union
price Of the Merchants and Manufac-
turers' stock is 1922 share The
exact figure in the present transac-
tlon was not given out, but from the
market prices, it is probably at least
SO 600 900.
1t is understood that this transaction
is result of the New York legislative
committee hearing last year. when
Samuel Untermyer, counsel for the
Lockwood investigating committee.
closely questioned Forrest F. Dryden.
president of the Prudential, because Of
That company'c relationship with banks
IN which Dryden was an officer, direc-
tor, or stockholder. The transfer Of
viz mo Ui oiNe company , U0Eh HOlulHSS
to rippel is understood to mean that
the insurance company is relieving it
self OF any further possible en-
barrassment growing out Of relation
ship disclosed by the inquiry
Edward ID. Dutfield in the absence of
Dryden, is acting president.
"lt has been the policy for long
time on the part Of the finance com
mittee of the company" he said in con-
nection with the Rippel transaction, "to
buy no more bank stocks and to sell
what we We're holding. Mr.. Rippcl
made US a satisfactory offer and we ac-
cepted it. That's all there is to it,
1t was rumored to-day that President
Dryden of the Prudential has resigned
as director of the Fidelity Union, and
that similar action may be taken bv
} Ohm W. Stegman, vice-presidcnt of the i
Prudential. There are three Pruden-
tial officers on the board of directors
of the Merchants and Manufacturers
National Bank. in which Rippel is a
large stockholder. In addition to these |
holdings Rippcl is president of the |
Newark Trust Company and is inter
ested in the North Ward National
Bank.
New-York tribune., 1922-03-19
Bank Stocks As Investment

\, QNesuon-I have lately been lola thu,
New fork bank stocks were a rood Jr,a,, I
".ei'' Tan YOU give me any jnfornatio,
a"out the Chase National or a rov, XIV
'ahk STOCKS? About price dlvidonds ,iald
c,c HOW do present prices comDaro u.i,h
'""Ac OF Il lew months ago? ,la, to h,,
nc ne OF TWO shafes at time until b.ra
'c" o, each. and hold for a perrnancn, a.
NcS'Hcht have already made tvo tn,,os'
iheh.s on your advice to others ne,o- Ell
'hs 10 read your investment inforn,t,a ~.
any iniormauon will be greatly o,i.ra,, aoi'
ated.-C. L. L. opP'eci-
answer New York bank stocks with
re" exceptions, are considered biob-
class INVESTMENTS, though the fact that
most OF them have advanced in nr;ce
with some celebrity of late makes then,
!ess .es ATTRACTIVE than a year ago. Chase
Natiohal Bank is selling at about 5000
q share and pays an annual divjdend
OF 10 per cent. First National is tho
highest priced bank stock. selling for @
about $3.50 share. 1t pays &c per cent
year in dividends. 1t should be
pointed out, however, that Stockholders
are liable for double the psr valme ~
the stock they hold under New York
State laws. To some this feature ;s
not a drawback, but a prospective in.
vestor should bear it in mind, we feel
The Tribune gives daily quotations on
bank stocks. under the heading of
miscellaneous Markets."
New-York tribune., 1922-03-19
For $4,000 Investment

Question Seeing your advertisement In
the paper relative to information given to
investors, thought would write and ask
Just what information you could give me
regarding the placing Of about $4,000 or
S50,000 0-as to the best ana safest invest
mont chat could make of these amounts
Please eivc this matter your prompt atten-
tion.-J. NJ. S.
Answer Without knowledge Of any
Of the general circumstances which
should be taken into consideration in
the planning Of this particular invest
ment, we arc submitting a we'll divcrs-
fed list Of securities that may be re
vised to suit your purpose. Your
financial condition may require the
elimination of some Of the high yield
issues and the substitution therefor Of
additional amounts of the more CON
servative bonds. The aggregate mar
ket value Of these securities is S49.775
and the annual income would be $2.965.
making annual interest of 595 per cent
These arc our tentative rccommonda
tions: $4,000 Liberty fourth 4As,
1898, $3.50; $4,000 Union Pacific 6s,
1923. $2.050; $4,000 Atchison adjust
ment as, 1895 S2,415; $4,000 Delaware
G. Hudson As, 1943, s. $50; So 600 Hi
nois Central 6lzs, 1886, $l,030 $4,000
New York Central IS, 1928, S1,99O;
$4,000 Lehigh Valley Gs, 1928, $4,000;
$4,000 United Kingdom 512s, 1887,
$4,000; $4,000 Queensland Is, 1899,
50, 2,140; $1,000 Swedish government 6s.
1889. $4,000; $4,000 United States Steel
5s, 1868, 5000; 1000 General Electric
6s, 1910, $2,l00; $4,000 United States
Rubber 5s, 1947, S2.595; $1,000 Ameri-
can Smelling 5s, 1917, S1,7S0; $4,000
Bush Terminal Building 5s, 1860,
$1,7S0; $4,000 Standard Oil Of Cali
fornia rs. 1881, S2,120; $3 900 Montana
Power 5s, 1913, $500; $4,000 New
York Edison Gas, 1871, S2,140; $4,000
DuQuesne Light 6s, l949, S2.040; $4,000
New York Telephone 6s, 1941, S2,05O;
twenty-five shares American Telephone
and Telegraph, $1,000; twenty-five
shares United States Steel preferred,
$4,000, and twenty-five shares Atchison
preferred, $2,l55. If you already hold
any considerable number Of Liberty
bonds an additional amount of the
Atchison, Delaware e. Hudson or
United States Steel bonds might be
substituted for the first item on this
list.
New-York tribune., 1922-03-19
LIST ITrcycnly Balanced

Oucsflon--I beg to ask your opinion or
my small Investment OF bonds and stocks
lucloscd. All the bonds arc what you eau
babies ElO0) except 500 In Iibertys. Tho
l,st: orc New York Central debenture
6. one ST. Louis san Francisco prior
lien 4, ono Chicago. milwaukee, -. lhui
convcrtible 49,, one standard tas n,
two Series - Cities Service debenture
bought at rs. now quoted at So ono fiud-
son & Manhattan rcfunding g. stocks: ::
TWO shares Rochester Gas and Electric I
per cent cumulativc preferred. dividend
paid quarterly. twenty shares cities Sorry
ice preferred Il; ton shares Consolidated
Textile. bought at 202a. am not afraid
Of it, though il Is now down to about II,
rrnii2ing the depression In business hit it,
rs It has nearly all industries, and be
licVn II viii come back Rs times como back
To nearly normal My next Investment
intend to be Bush Terminal Building 3
or Now York Dock, whichever you con4
slider tho bcttcr~-E. j. &.
Answer Your list, in the main, is
carefully chosen, though we consider
the Cities Service issue somewhat
speculative, and arc inclined to won
der what Consolid -, Textile is
doing anon. a small ~vestor's hold
ings. We can not predict the future
of this company, but it goes without
saying that its common shares to-day
are purely speculation. You can
scarcely 80 wrong with the type Of
"baby" bonds you have selected.
New-York tribune., 1922-03-19
Picks Out Speculative Issnes

Question-Pleasc lot mo l,no., :, .
would advise the purchase OF anv OF ibee
ho tholiowinS stoeks at tho prices they have
reca,,, peem ,S,a,d seIlns at Mary brokers highly
Ivoo'IlNehh them: American Internotion. a.
o,09fporaiion. Libby Mcneil, Union Carhid'
l,Ig9sly Wlgsly A. ] have a few hundred
"o''ars 90 and would like to take a narpin
you? Please give me the na,aa n G'st SO 10
Foputsby safe brokerage house.-M, O. '''-'
Answcr-All the stocks YOU mention
arc speculative, and unless Won con- a.
lord to indulge in speculation we ad
wise against their purchase. The Tr;b.
une cannot attempt to single out mai
vidual brokers for special recommends
Ton 1t accepts advertising only from
NOSE brokers in whose integrity it has
reason to believe. -' ,
New-York tribune., 1922-03-19
Wants Speculative Investments

Question: would like to have your opin-
Ion ON the American Writing Paper Com.
panN ~ 1899. and the Standard Gas and
Electric Company per cent preferred
stock. DO YOU consider these a good bust
NJ ~ inar : Investment. speculative bat With
a reasonable amount of safety | am con
siderinS buying about s., 900 worth OF each
and would like to l>now whether YOU
would recommend them from this stand
point?-F. II G.
Answer-Thc American Writing PAPER
Company has announced that pursuant
TO the terms Of issue interest on its
nrst mortgage bonds. due 1882 will be
paid at the rate of per cent per
annum, starting July this year. The
conNany's operations during 1921. ac-
eording to preliminary reports, we're
not particularly successful, but its ore
vious earnings record has been reason
ably GOOD. We do not characterize
either these bonds or the Standard Gas
and Electric preferred stock Us invest
nents Of the highest grade, but they
GO deserve to class as fair investments
or business man who is in position
TO watch closely developments affect
ing the companies. They thus NAV
serve your purpose.
New-York tribune., 1922-03-19
What Became OF Margin?

ouestion-Recenuy I had sixty shares
Of stock bought al SIS share had
for m"rEin s7oo. When the stock declined
to 11i2 was notified my margin was cx-
haustcd. l had carried this stock since
May 1921 50 interest on balance must
be taken out, at per cent. have fig
urod II out at different times and can't
make 1t out where l should be short IN
margin, 50 / ask YOU to pleas" figure it
ont for me and show mo where ] may he
wrong in my figures or ii you do not
iigure out margins as | ask for, could you
please advise me where could buy q
book that explains how to figure out mar
gins, etc.--E. f, u.
Answcr-From the way you state
your case it would appear that your
margin was not exhausted and that you
have good cause for complaint
against the broker who so notified you.
Sixty shares of stock at SIS share
would cost you S1,0S0, and il you pat
up 500 as margin it left you with n
debit balance Of only $3.50. At 11E
your stock was still worth almost 500
which. allowing for interest charges
would still leave you an equity of more
than $500. Are YOU sure that you ac-
tuaIly gave your broker $500 when he
bought the stock for You?
New-York tribune., 1922-03-19

and sufficient to meet these obligations
without difficulty the bond has kind Of
protection that compares favorably with
the security for many first mbortgagc
bonds.
Note that the American Telephone and
Telegraph Company, with funded debt
in excess of $3o0,0o0,000 has no mort
gage bonds outstanding, although some
of the issues arc secured by stocks of
subsidiary companies. Many other cor
porations whose bonds are rated as high
grade investments have no mortgage
bonds.
We say all this because we think it is
something which every investor should
take into consideration, and We take
this occasion to say it because your let
ter raised the question.
New-York tribune., 1922-03-19
Investments for His Father

question: have taken upon myself the
responslbliity OF investing for my father
IN inc following; $4,000 gUaranteed mort
gage . "a per cent CLawyers Mortgage Com
pany, New York;, ten shares United states
Steel preferred at los IS ten shares stand
ara ClI or New Jersey preterred at lO5
kindly advise If it would be advisa bic TO
ehange the shares of the Standard Oil of
New Jersey at its present price to ST oO0
Northwestern Bell Telephone Is? AS il is
my desire to make Investments for NV
lather to bring as large q return without
sacrlhcing the safety of the princinal /
would thank YOU for your opinion on the
above Investments. and also any suggcs-
non which you may offer in respect 10 any,
change.--A. b. NJ
Answer-You have, in our opinion
selected satisfactory Investments for
your father. Standard Oil of New
Jersey preferred is an excellent So.
curity in its class, but in few months
It becomes callable at 115. This pos-
sibillty OF redemption in the near fu-
ture is an important factor in holdinc
down the market price OF the shares.
ou could switch to a Northwestern
Bell Telephone 7 without loss in de-
gree of security The bonds mature
l94l and are callable, as a whole. at
l01i2. Non -callable bonds of equal Sc
curlty sell on lower yield basis. and
IN this class We suggest Canadian
Northern 6H2 per cent dcbentures.
guaranteed principal and interest bv
the Dominion government. They fail
due III 1916.
New-York tribune., 1922-03-19
Brooklyn Electric Stock

Question-Will You kindly give me in
formation In regard to the Brooltlyn Eler-
i've shares among my hushand's ofrecte 9
dated October 10. 1889. am anxious 10
hho" II the shares are OF any value Also do
s ou tohs'"er mortgages safe investment
for nay money Mrs. NJ G. c.
Answer-There is no company called
tho Brooklyn Electric Light end Power
Company TO-DAY. All electric light and
power business in Brooklyn is now
done by the Brooklyn Edison Company.
which gradually absorbed competitors.
We suggest that you address an in
quiry to the treasurer of this company
regarding the possible value of the
stock you hold. Mortgages depend for
their safety on the property thew cover
and the integrity Of the people that
issue them Consult your banker re-
garding the value Of any mortgage you
may consider taking over.
New-York tribune., 1922-03-19
Security of Principal Motto

Question: an I readcr OF The New
York Tribune and value the Information
nents. I now hold 5000 Liberty bonds
Victory notes. Az Would YOU advise mo
TO sell at this time and invest in some
OF her form of security? I wish to sick to
ta'nty Of income" school teacher can
not eford to take chances also hold
some OF the earlier Issues which bought
at per Would YOU advise selling these
higher rate have had the following
under consideration. Kindly advise mo
Stating the order Of your preference De
partment or he Seine (France) 2O-veor =
per cent external gold bonds. 1942. sold at
No'2 an accrued interest: PENNSYLVANIA
Power ard I light Company. cumulstiyc 7
per cent preferred. selling a 96; Connect
cut Light and Power Company. cumulative
per cent preferred, selling at about l0Sls :
american Chain Conrany Glass A. ! per
cent, Sal Textile Manufacturing COM
pany ) per cent cumulative first preferred
sei'In@ at 100; bethlehem steel per cent
prrIerrod Anaconda Copper, Atchlson 3
per cent preferred. Atchison por cent
common iNennecott Copper. Great North
per cent. :. 5. Ircsge : per cent preferred
northern Pacific per cent. Southern pa
ciic 8 per cent. Standard Oil Of New Ier
% ser Per cent preferred short term secu
American Cotton and on Gs. 1924 kindly
advise me as to the investment of $1,000
stating any other securities you think
lest Tor my oas".-D. A. G.
Ansswer-It is a far FIGHT from, Lib
ertv bonds 70 some of the issues with
which you are considering replacing
them. In the first place, we would not
advise YOU to buy any common stocks
at "l, the speculative element being
too pronounced for your purpose. In
the second place. YOU seem to have ig
nofed the bond list almost altogether
he highest grade bonds rarely sell
TO yield over 6 per cent. We think il
might be well to dispose of your Vic
tory bonds. which will soon be re-
deemed, but recommend that YOU buv
m their stead bonds of the class of
New York Telephone 6s, 194l; Great
N.oGrtheern Is. 1886; Louisville & Nash
vile Is. 1880, and Westinghouse Is.
1881. One each Of these bonds would
provide you with a good. diversified
list that would yield slightly over 6
per cent. We regard Atchson pre-
ferred as the best investment on the
list you submitted.
New-York tribune., 1922-03-19

sas to Oklahoma City and okn's u
Okla, and Wichita, Kan, ais0
held unreasonable. M
The commission, after coinss. 20
number of complaints oblectinEs sss
particular rates. held to-day tna j
entire structure of freight rates .rsd
particular types Of paper neh',us, ~ nd
the territory concerned Should ~ 'rsusr
flied. After laying down the sshos
principles which it was heia - - +,
govern the manufacture OF q p.m ]
structure, the commission ga nrss
railroads permission to maintaoasss soss \
ent chargesc untirl June l. s-s is ID b
to have in readiness on or peioss ~
time new schedule, which VIZ nasssd
mission will allow to so INTO sn IAN
it is found satisfactory and app''
New-York tribune., 1922-03-19
Freight Rates ON Paper
Are Held Preiu.!;c;sl

WASHINGTON, March IS.--Rates on
newsprint, wallpaper and upon some
other grades of wrapping and bag pa
per from manufacturing points in Wis
consin, Minnesota and Michigan to des-
tinations west and southwest and to
general localities in the Mississippi
valley were held unreasonable and un-
duly prejudicial as between cities con-
cerned to-day by the Interstate Com
merce Commission. In the same de-
ccision. rates from certain other points
IN Indiana, Illinois, Missouri and Kan
New-York tribune., 1922-03-19
Bankers Are Studying
Proposed Cuban Loan
Contemplated 4 Haytian and San
Domingo Issues Are Also
Being Examined

Three foreign governmental loans
hotation OF which in this market is
now under contemp plation, are the sub
lect of intensive study by investment
bankers interested in the business be-
cause OF the special relationship of the
united States government to these is
sues. The countries involved are Cuba.
hayt. and Santo Domingo. Cuba is ex
pecteN to come into the market for
from $0.OOO.O0O to $50 1000 900: Havt;,s
requirements are currently estimated
at $l40O0.000 to $16,OOOO,0OO and the
amount OF the projected loan to the
military government of Santo DOMINGO
is reported as S6,000,00O. The interest
of the Administration at Washington
IN these negotiations is more direct
than is the case with European or
South American issues generally. but
ITS concern is less than in the case of
Fhlilpplne government bond issues.
ne problem confronting bankers is
the extent to which the American gov
crnment's interest in these countries
win appeal to the public as making the
ponds OF these countries an attractive
investment and the coupon rate that
should be fixed accordingly. In he
case of Cuba no loan can be sold here
under he Platt amenment, without the
acquescence of the United States
Cuban bonds cannot by any stretch Of
the imagination be considered an indi
rect obligation of the United States
yet the necessity for this approval is
regarded by bankers as vital consid-
Grafton in their credit status. The
protocol attaching to the treaty with
Hayti implies more specifically an obli-
cation on the part of the United States
IN that the two governments agree to
work jointly to the end of protecting
and interest, according to
bankers here.
The Hayti and Santo Domingo loans
are understood to be scheduled for
carly offering. The Cuban bond issue
may be deferred for some weeks or
months
New-York tribune., 1922-03-19
Answer-W cannot attemnt to nre.
Fruit Bonds Speculative

Question-since | have no other means Of
knowing. | ask tor information concern
ing Atlantic Fruit Companys : per cent
convertible debenture bonds, due 1894 SELL
ing al about %. am told by engineer
that has been connected with their plant
that they are going to make good. and he
thinks 1t 4 good investment. DO YOU count
these bonds safe and good investment .
r.. f.
Answer-No bond upon which in
tcrest Is in default can be classed as
an investment. Bankers interested in
the Atlantic Fruit Company are under
stood TO be working on the reorganiza-
tion plan, which may substitute an in
come bond for this issue The in
denture, it is reported, will provide
that the interest is to be paid only
when earned. What the outcome will
be, of course, we cannot attempt to
say, but we believe under the circum-
stances the bonds must be regarded as
highly SDeculative
New-York tribune., 1922-03-19

Physical Property Is Worth Tor COT
lateral purposes what it can produce in
revenue If a bond is secured by first
mortgagc on certain stretch Of rail
road that has lost its strategic value
there is little comfort for the bondholder
in the knowledge that he can resort to
rcceivcrship or foreclosure proceedings
in case OF interest default The mileage
in question, having lost its value a
producer Of revenue, would not be in
great demand on thc auction block.
On the other hand, a railroad indus
trial or public utility bond may be
merely dehenturc secured by nothing
but the company's earning power and
still be high grade investment
The factor of safety is the margin of
over the company's funded debt
Obligations, and if earnings are stable
New-York tribune., 1922-03-19
Earnings as + actor i'm Safety

QuosonUW kindly opinion
securities listed hcrcwith their irrespective their
1885, Indies 197;
City Copenhagen, 1944 Cad perpetual
FdwGy 192735; c. b.
ST. Lu Washington Railroad A,
9tdngs international Merchant Marine
idchdVdnnd Steel Northern Rnlcny
Denoron Seine, gorcrmut
City Of san Fulo Brazil, Public ~
North Western Bel Telephone, 19t1.-T Il.
AnwerAte that
to dwell which
You about the
which
safety be
1t rather directly
earni o the book o
New-York tribune., 1922-03-19
Not Highest Grade Bonds

Questlon-Will you sive me your opinion
i oi tHe Argentine iive-year gold notes to
yleld I per cent; also Standard Gas and
hiectFle Company hfteen-year GOLD bonds
SirIc'hs SiII. per cent? 1 have $1,000 in the
oank drawing per cent. ana would an
preci"te your advice ON the above.-c. b
Answer-The Argentine government
hVe-year 7 per cent gold notes ram. in
our OPINION with the best Of short term
lorelgn government issues. IN thc
case OF some Of the South American
couil'rles, the appreciation of the sa
ctedhess OF the obligation of the debtor
IS not quite so high as that of tbc
ieadlhg European governments. but
TINS hardly applies to Argentina. whose
cTedlt standing is at least as good ae
4nal SI OF any country in South America.
ne element Of political uncertainty is
noI so strong as in many countries of
europe to-day. Nevertheless. we do
not class these bonds with the best do
mesuc issues for strictly investments
purposes The Standard Gas and Flee
tflc IS we do consider q business mans
Investment. We would not recommend
$4,000 from the bank for
purchase of either of these securities.
unless you have considerable canital
ahd already own a list of well diversi-
hed securities If this represents the
III @Jor part OF your capital, We would
suggest that you leave part Of it in the
pank. purchase with the rest Liberty
ponds or other bonds OF the highest
grade, such as the issues Of jnsd;n,,
"S
New-York tribune., 1922-03-19
Inquiries Should Be Signed

Inquiries addressed to this depart
ment are regarded as confidential, but
to show the writer's good faith all
shopuld be signed and an address
should be enclosed for reply. Letters
from the following are being held for
identification: A. B. c.; A. NJ. W; +. M.
O.; M. E. r.; +. p; James Smith; L. ":
II. R. W.; A. F.; P.B.; F.V.s.:
Mary A. B. Shoemaker; Mabel A. K:
X. M. L.; Mrs. j. r. d.; Anton II.
New-York tribune., 1922-03-19
Wants a Speculation

Qucstion--Will YOU kindly give me your
opinion OF the Union BAG and Paper Cor
lorstion an Investment, and why it's
present yield on the common is so high :?
have several sound issues and want one
investment for speculation.-W NJ *.
Answel-We think the reason Union
Bag and Paper Corporation securities
have declined in value is that this COM
pany, as well as other paper companies,
has felt the effect Of foreign competi
ton. Ncwsprint, we understand, can
be laid down in New Yorl. E..ty by
foreign producers at lower price than
b. American producers. Under such
circumstances American producers find
it difficul, to compete with foreign
producers. Union Bag and Paper Cor
poratioN IS a we'll established company
and its stock might serve your pur-
pose if you want one for speculation.
New-York tribune., 1922-03-19
Investment Information

Questions Of general interest to in
vesfers soiil be onsUercd in this col
unin, IN ichich case only init;als will
De used. Others will be ans,eered bv
mail. Address all Inquiries, inclos-
,nS q stamped. addressed enpciope, 20
Financial Editor, The Tribune, I54
Nassau Street, Ncw York City.