Judge — August 23, 1924 — page 30: what you’re looking at

Machine-transcribed from the original scan — historical spelling and the odd misread are preserved.

FINANCE AND INVESTMENTS at 7é BONDS How to accumulate ‘27,000 in 15 years by investing safely at 7% OU can build up a fortune of $27,158.00 by investing $1,000 a year at 7% for fif- teen years, and reinvesting the interest the same way. You will have actually deposited only $15,000—(the remaining $12,158 is the result of 7% compound in- terest). From the sum you have accumulated you will receive a yearly in- come of $1,901 for the rest of your life. Bonds You can invest in these 7% Adair Protected Bonds secure in the knowledge that the South’s Oldest Mortgage Investment House will protect your interest just as it has for thousands of other investors in Adair first mortgages for more than half a century without loss of a single dollar. ‘Why be satisfied with a lower rate of interest when you can secure 75 with proven safety? Why delay the day when you will be financially independent, able to live as you please and en- joy the best things in life? Set your goal today; ‘a definite sum of money within a specified time. ‘Then mail the coupon for our booklet “How to Judge Southern Mortsaze Bonds,” which will show you how to invest successfully at 7%. A circular describing a recent 74 iseue will be ex loi Our Monthly Investment Plan pays you 75 while you save. Full details upon request. Denominations: $1,000, $500, and $100 Adair Realty & Trust Company ‘The Souths Oldest Mortgage Investment House Healey Bldg. Atlanta, Ga. Adair Reatty & Trust Co. Dept. I-11 Healey Bldg., Atlanta, Ga. Gentlemen: Kindly send me your booklet, “How to Judge Southern Mortgage Bonds,” together with descriptive circular of a recent 7% first mortgage bond issue. ‘Name. Address YOU CAN BUY Good Securities in Small or Large Lots Partial Payments Ash for Booklet L-7 which explains our plan and terms James M. Leopold & Co. Members New York Stock Exchange 7 Wall Street Established 1884 New York INVESTMENT BUREAU ‘TurRitt SubscriberstoJupcr are entitled to an- NEPRES - aicers to inquiries on ‘Bedominates inthe animal. financial questions ‘and in emergencies to answer by tele- grapk. No charge us made for this ser- tice. All communi- cations are treated confidentially. A two-cent postage stamp should alweays be inclosed. Address all inquiries to. the Financial Editor, Juver, 627 West New York, giving full name and exact sret A Long, Strong Pull by Theodore Williams Bes occasional bursts of strength in the securities market, at this usually dull season and in an intensely political year, would have been surprising and expected to be short-lived. But the recent many weeks of upward movement in prices was so protracted as to excite deepening wonder. Investors and specu- lators were slow in putting confidence in the changed situation. They feared that possibly a big reaction might occur at any time. Nevertheless, when it was observed that after depressions quotations gencrally rebounded the public gradually came into the game. Million-share da: occurred frequently and there was pre- diction of two-million share days and a boom before the flood of dealings would subside. This forecast may or may not prove true, but it would be well for patrons of the market not to lose their heads over it. Caution and discrimination may always be exercised with good results, especially after any pronounced spurt in values. The more cautious class of buyers began taking profits rather extensively. This temporarily lowered prices, but strong support caused a renewal of the upward trend. Three outstanding reasons for caution in making commitments after the rise have been stressed. The influence of ulations must be allowed for, the effect of cheap money must be considered and the question how far the market has discounted the future of business should be kept in mind. The discounting may have further to go, but the distance is not certain. Some investment issues could bear a further upswing without making their net yields unattractive. The speculative stocks have less secure chances. Selecting sound issues, the purchaser is reasonably well insured against the uncer- tainties of industrial and commercial developments. Not a few conservative observers, admitting that business just now is not all it should be, take the opti- mistic long view. They maintain that the country is yet to have the greatest ‘prosperity in its history, and is already 28 surely moving toward it. They hold that buyers, even at present prices, of securities of leading corporations that are bound to contribute to this better- ment will not go amiss. Answers to Inquiries HL, Wapax, Mass.: Southern Railway common is ind the earnings reports continue fi hould business remain good or still further improve an advance in the dividend to 6 per cent. or 7 per cent, sometime in the future is not improbable. ‘The stock is making you a good yield on purchase price, and although profit taking is sometimes the safest thing to do the shares are well worth holding. D., Evanr, Mic: ‘The Industrial Mortgage bank of Finland was recently incorporated by three of the largest banking institutions in that country. Its business is the making of loans to industrial corporations to the amount of 50 per cont. of the appraised value of their plants of other property. The bonds are guaranteed by the Government of Finland. The nation is now on the road to prosperity. The bonds were well sponsored here and they may be classed as an excellent business man’s invest~ ment. R., Brooxtrx, N. Y.:. The Urban Motion, Picture Industries has gone into the hands of receivers in bank- ruptcy, on the petition of certain creditors, Officials of the concern claim that it is solvent but lacks money. ‘There is a scheme on foot to reorganize, but whether this can be carried out or not remains to be seen. Under the circumstances the stock of Urban Industries is of doubtful valu R., Cuacnns Farts, O.: American Grocers Society's profiis have made a poor showing for several years, and the concern appears to have never paid a dividend. ' The annual meeting was held the last week in June and you should have received the annual report. R,, Aunasy, N. Y.: In June, 1922, the sale of the stock of tie Bulletproof ‘and NonShatterable Glass Corp. was forbidden in the State of Massachusetts on the ground tl i i Circulars issued by the company. The concern. never had a good standing. ‘There appears to be no market for its shares, Apparently the stock you bought is far from worth the money you have paid. It would not be advisable to throw good money after bad. H., Woonsviue, N. H.: Kennecott Copper has been selling lately at about 43. It is not so sound a stock ag American Steel Foundries selling lately at about 37 and paying the same rate of dividend, $3, or General Motors common, selling at about 14 and paying $1.20. It seems advisable to take your profit in Kennecott and to make a switch, Willys Overland Corp. claims to be making handsome profits and there are possibilities of a resump- tion of dividends, on preferred. dends on the pre- ferred, however, are about 23 per cent. in arrears and nothing will be paid on the common until the back ferred dividends are cleared up... ‘The prospect of a divi dend on common seems somewhat remote. If business should continue good a disbursement might be made in time on the common, U.S. Steel common may not this -ar reach your purchase price, $114, but if the 7 per cent, Yearly disbursement becomes’ permanent the stock will naturally go higher. N., Casnnince, Mass: Kafex, Inc, is engaged in the production ofa substitute for coffee. ‘The concern has been in operation for about two years. It is cal ized at $1,000,000. Its preferred stock is 8 per cent. cumulative, and common stock is given as a bonus with purchases of preferred. So far the company has paid no dividend and its future is not altogether. assured. ‘The business, it is claimed, is growing rapidly, but there are many competitors in its field. ‘The preferred stock is a speculation at present. It would be safer to put your money into a dividend payer. . tei Jexeau, Ataswa: ‘The Robert Gait Co, of Brooke lyn is a strong and prospering concern and its 7 per cent. Bonds, though not spltedged, deserve a good rating. Holly Sugar 7s rank quite as high as the Gair 7s and are a food business man’s investment. Sperry Flour 6s might called fairly good, though not a particularly attrac tive investment. ‘The three bonds are reasonably safe. ‘Their future value depends on the degree of prosperity which the three companies will enjoy. Usually the official market price of a stock is fixed at the figure bid for 100 shares. ‘The sale of a $1,000 bond fixes the offi- cial price of that security. Sometimes when a stock is yery inactive, the selling price of fewer than 100 shares is accepted as the market record. ot Ee'Gnaxar, Ga: While the Intern mpany reports prosperity and is paying con both claasea of stocks, 8116 scems to be avrather high Price for the preferred. "However, this is apparently a safe proposition. . L, Kansas Crrv, Mo.: Usually a long term bond is preferred by a purchaser because it gives him an invest- ment covering many years and does not impose the bother of frequent change of investments. A short-term issue is bought as a temporary investment, © the purchaser wants to have his ning somet while he waits for a chance to make & permanen ment or because the rice of the secu such as to guarantee a high yield ut maturity. You therefore, the reason for purchasing short term bonds do not depend upon any particular season. Short term and long term bonds sell at prices that vary with the character of each issue and with the condition of the stock market. S., Curcago, Th pretiy low. The; . id 'so little for the 10,000 mark cert ‘land's poor economic and financial condition at that time. The country has been improving its position to Le are rated comicboo! ] ( ; f P I 1 4 I t t a t Pe ap ered