New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-03
Income for Old Age

Question: shall have some $40 900 to
invest soon and am anxious to place It so
as ~ secure I per cent or better il possible
nave noted a number of securities that
VIII give such a return. but know little
az 20 lhe'r merits or safety. l should like
70 diversity the Investment of this suin
by buying only $1,000 of any security
W III you kindly advise me whether any Of
me securities listed below are reasonably
s fnr Tor an investor who desires an income
aor oid age If not kindly give me a list
OF such securities yielding I per cent or
Iet IT, If there are such securities. The
So CRANKY Company So. otis Stooi Is
Mexican Petroleum So, Belgian So. NORWAY
o. i'Io ne .lanciro SIS, Sac PauIo SIS West
nv," act urtng Company per cent
cumulative preferred, Empire Gas and Fuel
oimpany 's per cent gold bonds, L. S
noh man Machincry Corporation SIS. Ajax
H r a. Porto Rico Tobacco SIS Kelly
eas Preferred, United States Rubber 8 per
cent preferred. bethlehem Steel per cent
Tprtterred; Columbia Sugar Company Tvs.
diamond Match Company 7Ms Rnadirn,,
first per cent cumulative prcferrad CEN,
erai Motors 6 per cent cumulative pre-
ietred, United Drug first : per cent cui1u
nf per nTeicrrad, BELL Telephone Company
co. CO. Iehhsyt|ania per cent gold bonds.
series A. Winchester Arms ms. CONNER.
, "a, ,op'Nenis corporation cumulative CON
p,rrln!e lass stock, Vermont e. Quebec
rover Corporation first mortgage iwontv
year per cent gold bonds. French CIV d.
United states of Brazil So. Belgium ex.
sernal bonds, Jugo-Slavia forty year per
cent secured external gold bonds S,ote of
santa Catherine OBSERVATION-DISCLOSURES no
cent external sinking fund gold bo1ds
arsentine national government fve-yoa r
- Shlie rs. Switzerland SIS. 1910: Danish
ss. lnterboro Is twhen issued( Donna".
steel IS (when issued).-C. d.
Answer-If you had asked orr ad-
vice on the investment of 100000 in
securities that would assure old-agc
income, not three Of the twenty YOU
have listed would have been selected
with the exception Of these three all
tncse bonds and stocks impress us az
being unsuitable for the purpose men
toned for one or two reasons, namely.
hrst, lack of proper security of princj
pal and certainty of interest, or, second,
lack OF permanency. BY the latter we
mean that majority of the bonds YOU
have selected are cnllable at the option
OF the borrower and the coupon rates
are so high that it is scarcely conceiv-
able that the companies will continue
to carry these burdcnsome obligations
any longer than is absolutely neces-
sary. We regret, therefore, cur ina
blllty to work out a proper program
for the investment of your $40 600 with
this tentative list as basis. Let us
impress on you the fallacy Of trying
to insure safety of principal and a
yield of per cent or better for long
term. If you are willing to scale your
interest requirements down to per
cent, we submit the following list of
ter securities as suitable for your pur-
pose (the investment can be diversified
properly with ten instead Of twenty
issues): General Motors per cent
preferred American Ice preferred +;
Bethlehem Steel s per cent preferred
Kingdom of Denmark IS; Public Serv-
ice Corporation Of New Jersey SIS
yielding ABOUT 61 per cent; Missouri
Kansas e. Texas prior lien SIS, yielding
GO per cent; American Telephone and
Telegraph stock; Canadian Northern
Is, 1910, yielding about 5.S per cent
and Long Island Railroad unified As
1919, yielding So per cent