New-York tribune., 1922-08-07
Request Of /. r. T. Securities

Request Of /. r. T. Securities
Question--A close friend, whose hus-
band has Just died, was left the fol-
lowing socuritles This represents the en-
tlfe estate and represents source of
income at present. She has no other out
side income and we are In doubt whether
to sell at the present market and reinvest
IN n high h grade bonds or Just how to act
Tor her best interests: $50 shares Interboro
preferred, $50 shares lnterboro Consol-
dated common, S14o 900 Tnterboro 4hs
tnirty-six shares Manhattan Elevated
Railway. This stock has been deposited
would greatly appreciate any advice or
rec eeomlnend1tion regarding this unfortu-
nate investment. Please realize there is
no no. other aS, ooprce of income available for
'ractlon seouritiee--R. a. S.
Answer--The investments in Inter
borough Consolidated stock and Inter
borough metropolitan bonds have, in
deed, been unfortunate. There is moth
ing to be gained by holding either of
the lnterborough Consolidated stocks
for the prospect of resumed dividends,
for there will be none. The Interboro
consolidated is in receivership and all
enough to meet the prior claim of
holders of the nterboro-Metropolit
AZ per cent bonds. In the case you
cite we see no alternative to selling
these stocks. There are three courses
to pursue with respect to the inter
borough h-Metropolitan 4hs-First, to
participate in the readjustment plan to
the extent of subscribing for an
amount Of new per cent notes equal
to 81 per cent Of the principal amount
of Az per cent bonds held, but this
seems out Of the question; second, to
surrender so per cent of these bonds to
the committee and hold the remainder,
or rather the Interborough Rapid Tran
sit stock securing them, but this also
seems impracticable in this case of
emergency, since the plan provides that
no dividends shall be paid on Inter
borough Rapid Transit stock before
July /, 1925; third, to sell the AIS for
what they will bring and reinvest the
proceeds in good income producing
bonds. After looking at the situation
from all angles the last course seems
to be the only logical one to pursue.
plan for scaling down dividends on the
Manhattan Railway stock to 8 per cent
for the fiscal year ended July i, 1922,
4 per cent for the next fiscal year and
s per cent thereafter. We feel that If
this lady's income requirements are
not beyond che return that she would
get from the investment Of funds de-
rived from the sale of the other three
ecurities-about $4,000 principal
amount-it would be worth while hold
ing the Manhattan Railway stock.
Bonds for Investment
Question: am craftsman and able to
save about $500 a year. which I invest so
as to get about per cent. would like to
so much above par. What do you think
of North American Edison per cent,
Series A. 1852? Also Holland American
Line sinking fund 6s. due 1s47? I have
circular from a broker containing the fol-
lowing. Pleaae give me your opinion and
the order of their Investment value: Great
Northern Railway Company Of Canada con-
soNdated As 1884; Seaboard Air Line Rail-
American Gas and Electric Company de-
benture 6s, 2o14; Kansas Gas and Electric
Series A, 1962.-F. r.
Answer-Followin the order Of
preference as to desirability for invest
ment purposes, we list the bonds you
mention, as follows: Great Northern
of Canada As, Kansas Gas and Electric
6s, American Gas and Electric deben-
ture 6s, North American Edison 6s,
Seaboard Air Line 4s, Holland-Ameri-
ca Line 6s. For the investment Of
$1,000 we suggest you select the Great
Northern of Canada as, 1884.
Seeks "Good Speculation"
Question: am desirous of investing q
few thousand dollars In a legitimate stock
that promises good returns and which Is
considered legitimate and safe BY safe
I mean one whose future promises good
returns through the merit of its products
! have recently been offered stock in the
National Life Preseryer s,e C,. Company, ON ol IL
to me as though it were a fairly good
speculative stock. However. I should IKE
same as to Its probable future etc
B. s. d.
Answer-We do not consider stock
Of the National Life Preserver Com
pany suitable for your needs in any
respect. The investment of few thou
sand dollars should call for high grade
bonds or preferred stocks with rea-
sonable degree of marketability. There
is no market provided for the sale OF
shares Of the National Life Preserver
Company, and the purchaser who finds
it neces airy to realize on them is in
an uncomfortable position. Quite
a block Of the stock was recently Of
fered in the outside market at 30 cents
a share, which is considerably less
than is asked by those acting for the
company in the sale of it's stock.
financial statement of :he company for
the year ended January 81, 1922. re-
veals assets eliminating patent rights
valued at about S722,000 and surplus
of $35O,573.53. Capital stock out tand-
ing is S2.065,315; other liabilities
amount to S43.s5255. Patent rights are
carried at 18,7oO32. We can find
nothing in this statement or in market
conditions that would warrant your
purchasing the stock for investment.
Rating South American Bonds
Question--Wil! you kindly give me your
81 ba ~ American