Judge — July 25, 1925 — page 26: what you’re looking at

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

Investment Bureau Subscribers to JupGE are entitled to answers to inquiries on financial questions, and in emer- gencies to answer by telegraph. No charge is made for this service. All communications are treated confidentially. A two-cent postage stamp should always be inclosed. Address all inguiries to the Financial Editor, JuvGe, 627 West 43d St., New York, giving full name and exact street address. Anonymous communications will in no case be answered. The Autumn’s Promise by Theodore Williams HE task of seriously depressing the securities market has proved rather too difficult lately for those who have undertaken it. While they have been able now and then to bring about irregularities in tone and prices, their full purpose of causing a lasting general slump has not been, and cannot be, achieved. The re- cessions have been numerous enough, but the result of all the seesawing has been a higher quotation average for the industrial issues. The temporary successes of the bears have not im- paired the underlying stability of the market. Beneath the ever-changing surface play there are at work factors which, at present, make a downward Tush well-nigh impossible. Values of securities have the sus- taining influence of very satisfactory conditions in business as a whole. $25,000 in 10 years earns An investor with $25,000 at 6% converted his money into 8% Flor- ida First Mortgage Bonds. For ten years he reinvested the extra 2%, or $500, and thus his principal grew to $32,208 which at 8% paid him $2,577 annually, a gain of 71.8% over his former 6% income of $1,500. How this was done is shown in one of the charts and tables in our new booklet, “2% to 4% Ex- tra.” Mail the coupon for free copy. Reports from many quarters indicate that commercial and industrial activ- ity exceeds that of a year ago, and that the summer season is not so dull as was expected. Business plainly is progressing. There is real and growing prosperity in this country in spite of the fact that in some lines there is depression and that profits in many are not so large as could justly be desired. The pessimistic head is butting against a solid wall of steady improvement. The situation foreshadows big for- ward developments in the coming autumn. There are immense possi- bilities provided nothing occurs to upset reasonable forecast. ‘There may be danger of disturbances in certain threatened industrial con- troversies, but these cases can, be settled peacefully if only Presidential commonsense prevails on both sides. ‘The wheels of industry and commerce will not cease to turn fruitfully if everybody desires to keep them going. Assuming that business af- fairs will be proceeding in the months ahead no worse, but even better, than at this time, there can be no doubt concerning the state of the securities market. The July reinvestments gave it a strong upward impetus. Continuance of good times should insure a gradual major movement to higher levels. By rights, next fall's prices of good stocks and bonds should show distinct advances from current figures. Answers to Inquiries C., New York Crry: Among the good pre- ferred issues listed on the Stock Exchange is Standard Gas & Electric 8 per cent. preferred. ‘The par is $50 and at present quotation, 53 plus, the net yield is more than 7 per cent. ‘The com- pany is strong and flourishing and is paying %3 yearly on its common stock, par $50. ‘The com- pany's 7 per cent. prior preferred stock is safer than either of the others, and was selling lately at about par (100), The Durant Motor enterprises are all in a state of uncertainty. The parent company’s report for 1924 showed a terrific decline in surplus. No conservative investor would buy a Durant stock. It would be safer to sell your shares even at a loss, and buy a idend payer, such as Continental Motors, quoted at about 1044 and paying 80 cents. The Sta Gas & Electric pfd. stocks, American Steel Foundries common, and Moon Motor, all dividend payers, would be excellent partial payment purc! M., Crvervyart, O.: Since my previous letter to you fuller information has come to hand ene cerning the Park Utah Mining Co. This com. pan bean ore shipments in the fall of 1920, and paid a dividend of 5 cents Dec. 15, 1921. It has since paid additional dividends amounting to $1.30 a share, making $1.35 in all. At the close of 1924 it had marketed ore valued at more than four million doll The company is in a strong financial position. ‘The property has” been equipped entirely out of earnings. . ‘The compan is party to a consolidation now in progress with other Cee reo fa colerprises. The new company nown as the Park Utah Con- solidated Mines.Co. oe R., Cucaco, Iuu.: The Davis Sewing Machine Con” after going into receivers’ hands, had assets sold under foreclosure to the Dayton Sewing Machine Co. The proceeds were credited to the bondholders. By arrangement with the Dayton Co, the receiver continues business for the benefit of the bondholders. There seems to have been no move for a reorganization and the stockholders ‘to be “out of ‘The King Mica Co. is the third successive company which has been operating its property. My. advices give no indication that the enterprise is profitable, _ B. Anniston, Ata.: The Gulf Cities Gas Co. is making enough to pay interest on its bonds, and dividends on its stocks. Its 6 per cent. bonds rank ‘as a good business man’s investment. F., Guencor, Iny.: I have no data relating to the Barri Oil Co. My records of corporations do not includ name. — The Peer Oil Co. does earned dividends as yet. Cheap ally have so uncertain a ‘The future of the Miami Copper pends on the results of mining the low grade ore which now forms the part of its deposits. No definite forecast can be given at present. H., Brooxuys, N. Y.:; The Great Atlantic & Pacific Tea Co. reports high prosperity. Its net profits for the fiscal year ending March 31, 1925, were nearly 50 per cent. larger than in the previous year. Its last quarterly dividend on common stoc was $1.25 compared with $1 the previous quarter. the company's shares are worth considerably more than the price at. which it offers stock to employees. G., New York Crry: To meet your case I know of no better or safer investment than 7 per cent. first mortgage real estate bonds such as you on the partial payment plan. wircuBack, W. Va.: The latest quotation ‘o. of Canada stock is $490, Cer- - issuing 100 “Bankers Shares” ir in certific gainst each share of Canadian Ford. shares at $10 each $1,000 a share for Ford st ; ties w York Cily re put a stop to it here. Have nothing to do with such schemes, J., Moxsox, Mr. I don’t happen to know any- thing about the promoter you name. He may be eat mine operator who has made a fortune. ‘s not prove that the Bonanza Gold Mines bound to be a success, The literature ‘and by you to me is of the inflated awakens distrust. Predictions that ill before long be selling as high as $10 must certainly be exaggerated. ‘The promoter has fifteen properties and it is claimed that he cag sell one of them at a profit of a quarter of a million. Why does he not do this and get the equivalent of 500,000 shares of stock and not worry about that proposed sale of 200,000 shares to “certain strong interests”? Surely, fourteen roperties would be enough for a big concern. ‘he proposition as a whole appears to be a gamb New Haven R. R. stock till a highly spe lative issue. ‘The company’s financial condition has been improving, but the shares are at best a long pull. _ ‘ B., New York Ciry: The Utilities Power & Light Corporation is an ex; ing concern which has acquired a number of thriving other organiza- tions. It is furnishing electric power and light to several communities in the East and the West. ‘Some time ago it changed its capitalization, which now stands as follows: 7 per cent. cumulative pre- ferred stock authorized, $10,000,000, par $100; Class A stock, no par, 350,000 shares; Class B stock, no par, 500,000 shares. Not all of the authorized shares have been issued. ‘The company is paying preferred dividend and lately paid an initial quarterly dividend of 50 cents on Class A stock, ‘The company's condition and outlook are excellent, and Class A stock looks like a good busi- ness man’s purcha S., Corcoran, Cat: The German, currency which figures in foreign exchange quotations is the lately created Reichsmark, which 1s based on gold and is quoted at about par, the latest figure being 23.81 cents. ‘This currency is like our bank notes and any date which it bea material. H., Unica, N. Y.: You could buy for your mortgage extinction fund first-class short term notes, stocks or bonds. ‘They would make good yields and would be readily marketable, but you cannot be absolutely sure of getting back the money you pay for them in case you want to sell them. You might get more and you might get less. Their future price is uncertain. Of course, notes and bonds held until maturity would return comicbooks.com