Judge — October 17, 1925 — page 22: 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 inquiries to the Financial Editor, JupGE, 627 West 43d St., New York, giving full name and exact street address. An Irregular Market by Theodore Williams RREGULARITY has continued to characterize the course of the securities market recently. Var- ious conflicting influences have been at work. Among the favorable ones have been high certainty of material reduction in taxes at the next session of Congress, easy money for the most part, a remarkable series of “million a week” railroad car loadings, un- EVERY DOLLAR THAT HAS BECOME DUE ON FIRST MORTGAGE BUILDING BONDS SOLD BY US HAS BEEN PAID TO EVERY INVESTOR (Responsibility, With a capital and sur- plus in excess of $7,000,000 built up over many years of faithful invest- ment service—the re- sponsibility and accum- ulated experience of this company afford strongassurancetocon- servative investors. For Safe 642% First Mortgage Bonds Send fordescriptive literature 213 |AMERICAN BOND & MortTGaceE (Co. ESTABLISHED 1904 INCORPORATED AN OLD RESPONSIBLE HOUSE Capital and Surplus over $7,000,000 127 No. Dearborn St. 345 Madison Ave. Chicago New York Cleveland, Detroit, Boston Philadelphia and over thirty other cities — Anonymous communications will in no case be answered. precedented activity in the automo- bile field, steady and sure expansion of business in general, actual steps toward funding the $4,000,000,000 debt of France to the United States, popular belief that the anthracite miners’ strike will not create a serious shortage of fuel, and wide expecta- tion that the autumn will show notable progress in national pros- perity. Compared with these the adverse factors appear rather weak. ‘The latter include the possible long duration of the coal strike with large losses to the coal and connected in- dustries, the protracted depr in oil, and a tendency toward firmer money. The manipulators have been active on both sides and the market has been alternately overbought and oversold. ‘The public has displayed a spasmodic interest in the market. Fundamental conditions remain sound and this accounts for a strong undertone despite surface changes. Ups and downs of prices within a limited range promise to be frequent for some time to come. Reactions called healthy are likely to check any too fast upward movements and to “correct the technical position,” and recoveries, called natural, will tone up the situation when it has too far run down, These two pro- cesses serve to even up things pretty effectively and may operate in lively succession for a few months longer. Exceptional events secm to be needed to force the market out of its mixed condition. It will require forceful causes to mold the list into a uniform tendency. The numcrous groups of securities tend to move indepen- dently of each other, and the growing number of s dealt in on the ex- changes makes it more casy for any stock or line of stocks to “go it alone.” Possibly we may have occurrences which will strongly shape the market in one direction or the other, but just now the outlook does not disclose them. The investor and the speculator need more than ever to be alert and cautious. Answers to Inquiries N., Sparnarievp, Mass.: ‘The 7 per cent, pri lien ‘preferred stock of the Central & Somer Utilities Co. appears to be the bes in the list you submit. The company is:a subsidiary of the Middle West Utilities Company and net earnings applicable to dividends ave mvett times the total needed for the prior lien issue. The stock was launched at a price to yield 7.11 per cent. It is an excellent buy for your $1,000, x N. ¥.: The DeForest “Talk- : yet become a com- highly speculative, R., Reapisa, Pa.: 1 have no knowledge of the banana plantation in Peace Valley, Fla, other than the meager details you sent me. Very few plantation schemes prove successful. Thou- nds of investors have lost money in them. It is a safe rule not to buy land anywhere with fruit trees on or not before it is inspected personally, or is recommended by a reliable, disinterested person. C., Havana, Iu1.: Chandler Motor stock (of no par value) is on a &% basis and the company is doing pretty well. ‘The ke a. beret yield on market price. The return on Hupp Motor stock (par $10) is #1 yearly and earnings seem to assure thi: th the issues are in the semi- speculative’ class. Otis Steel common (no par value) lately was selling around $14, having risen from a much lower level on somewhat improved outlook and talk of a merger with other concerns. It is a non-dividend r and at present is only a. speculation. Bonds are of course safer pur- chases than stocks, but many investors prefer sound stocks to bonds because of higher yield. You can buy small lots of any of the listed securi- ties on the partial payment plan. First-class first mortgage real estate bonds paying 7 per cent. or 8 per cent. may be obtained on installments. E., Troy, N. Y.:_ The Adirondack Power & Light Co. is prospering and its 7 per cent. pfd. stock is a reasonably safe issue. The Hudson Valley Coke & Products Corp. is backed by several stron} corporstiots, has bright prospects of profit, and its first mortgage bonds look like a safe investment. ‘The Schulte Real Estate Co. is a subsidiary of Schulte Retail Stores, which is a Prosperous concern. The bonds of the Schulte Real Estate Co. appear reasonably safe. S., Jounstows, Pa.: ¢ Colonial Finance Corp. seemed a year or s0 ago to be doing a profit able business, Are you receiving no dividends? ‘The stock of this concern is not listed on the exchanges. As a stockholder you should demand from the head office of the corporation information as to its condition, G., Irnaca, Y.: The latest report of the Moon Motor Co. indicates that the net carnings) for the third quarter of 1925 will be about % per share, which equals a full year's dividend on the stock. Should this rate of profit, (nearly $12 a year) be maintained, a higher dividend and a higher market the logical results. On recent mar eld is over 8 per cent. The stock is a fair business man’s invest- ment. L., Artasta, Ga.: The oil stocks cannot be expected to advance materially while production of petroleum continues so large that consumption cannot overtake it. ‘The many cuts in prices of crude oil and its products reveal the weakness in the industry's position. One important effect of an extensive and long-continued strike in the coal mines would be an enhanced demand for vil for fuel purposes. This might give the oil business and oil issues a good push forward. M., Omana, Nes.: The probability of sub- stantial reduction in income tax rates at the next session of Congress is lessening the attractions of tax exempt bonds. The investor of moderate means, who does not fear the surtax, finds it more to his advantage to buy industrial or real estate bonds making a generous yield, than State or municipal issues whose yield is low. The proposed slashing of the surtax would make the tax exempl securities less desirable to large capitalists. As your income will not in any event be bit hard by the surtax it would be well for you to invest i i you mention. drop from guod e issues as Car cre It is officially stated a better outlook. It quoted lately at only #3! that the company has has added to its regular business the making of electrical refrigerators, a line in which there is growing competition. There is no present pros- pect of a material advance in the ‘price of the shares. B., Hampura, Pa.: The U. S. of Brazil 8s and 7s have the merit of having been issued by a country so rich in resources that it should even- tually be able to meet all its obligations. ‘The demerit of several Brazilian issues bas been caused by lax governmental fiscal methods, ‘These have to some extent been corrected. there shall be no further relapse into them the 7s and 8s will deserve an excellent rating. G., New York Crry: | The American Bond and Mortgage Company's 6'4 per cent. issues are among the safest of their cliss, ‘The 8 per cent. comicbooks.com