Judge — November 14, 1925 — page 22: what you’re looking at

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

gencies to answer by telegraph. are treated confidentially. exact street address. After the Flurries by Theodore Williams EcENT flurries in the securities market gave the financial world plenty to occupy its attention. For several days trans- actions on the Stock Exchange overpassed the 2,000,000 share mark and they twice rose to over 2,600,000 shares. There was an appearance of volcanic activity and there was much ground and lofty tumbling in quota- tions. Newspapers were furnished with material for startling headlines and the situation was treated more or less sensationally by the press. ] The turmoil was variously analyzed. Depressers of prices exulted over | signs that the bull market was col- j lapsing and the constructive ele- ment maintained its courage by as- serting that no radical reaction was threatened. 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All communications were at length brought to bear, the wild speculation abated and the market went about its business in a more staid and orderly manner. What then was the final result of all the commotion? When the smoke lifted from the battlefield it was found that there had been no pronounced crash in the general list, while there was so firm an undertone that values snapped upward once more. The averages mounted to new heights and the bulls, though showing marks of wear, held the field. It could not well be otherwise. As has often been intimated in these columns, there can be no bear market of any consequence or duration so long as business continues to make goodand prosperity isenhancing. That such is the case in this country to-day defies dispute. If the situation keeps on improving we may have recessions but no lasting reaction. Dearness and cheapness are only relative terms. No matter what elevated figures any issue may reach, it will not be too high if it is supported by ample profits and liberal dividends. Doubtless many issues now quoted very high will advance yet further and still be regarded as reasonably priced. There are certainly some whose increase seems assured. It can hardly be conceived at this time that such sterling stocks as Union Pacific common, Atchison common, Southern Pacific, New York Central, Atlantic Coast Line, Illinois Central common, American Telephone and Telegraph, United States Steel com- mon, American Car and Foundry common, General Motors common and General Electric will lose ground in the coming years. They should, in fact, become more valuable instead of less. Stocks of this class can be purchased now with confidence as to their future. There are also numbers of lesser issues which are almost sure to forge ahead at no dis- tant day.: The trick which the average investor nowadays needs to learn is the choosing of issues which 20 have good years before them, rather than to lie in wait for possible minor declines, Answers to Inquiries C., Brooxtyn, } : The statistical books ive no data concer the Pacific Smelting & [etals Corporation. ie report that you sub- mitted shows that the corporation is engaged in mining tungsten. Many companies have under taken that business in this country, but few if any have found it peottable. "The Biche. manager admits that the corporation is as yet far from being a success. The extreme riskiness of tungsten mining and the uncertainty of the corporation's future makes its stocks and bonds uninviting a highly speculative. When the company chai its name your friends should have exchanged old stock for new. It may now be too late to do so, but you can apply for information to the main office of the Pacific Smelting & Metals Corporation. T., CuarKsviz, Tenn.: Dodge Brothers common. seems so likely to become a dividend payer within the next few months that it was a speculation. The stock had a sharp tise lately and many of the convertible bonds were exchanged for it. American Sugar common as a non-dividend payer is selling so high as to probably discount dividend prospects. There appears at present to be but little speculative chance in it. Pacific Oil's dividend makes a fair return on market price, but the oil stocks have not a very bright outlook at this time. L., N. Y. Crry: One of the best and safest in- vestments you can make with your $500 is to buy a 644 per cent., 7 per cent: or 8 per cent. first mortgage real estate bond. This will make a good beginning for you on the road to prosperity A., Quixcy, Inu: The Illinois Power & Light Co. and the Central Illinois Public Utilities to, appear to be going concerns whose bonds and preferred stocks seem to be reasonably safe. An excellent business man's investment is Dodge Bros. 7 per cent. preferred. Cy Mocuamicvite, N There are no indi- cations of any quick. material upward turn in dio Corporation of America, common stock. It is selling high for a non-dividend payer whose future is not certain. The South Eastern Power and Light Company's new stock appears to be a fair business man’s speculation. R., Toronto, Canana.: ‘The earnings and pros- pects of the Overland Company are such as to make the common stock an attractive specu- lation. The accumulated dividends on the pre- ferred may, as you suggest, be cleared off either by payment in cash or in prior preferred stock. Tt would be better for both preferred and common if no senior stock were issued, but the amount of the latter would not be seriously large. The future price of the common will depend, of course, on the rate of the dividend which may be declared on it. Granting that International Harvester is earning $9 per share on common, the payment of all this in dividends would not justify the price of $175 which your broker predicts. ‘The stock should be paying more than its present $5 to warrant the current market figure. ‘The quotation indicates that some increase in dividend is ex- pected. The Waldorf System stock, paying $1.25 yearly, makes an excellent return on the present price. The System made only a fair showing for the first six months of this year, but the last half of the year, it is predicted, will be more favorable and will boost the year’s total to $2 per share. While the stock is a fair business man’s purchase, its speculative possibilities are not at present bright. Armour & Company's earnings ure pronounced “satisfactory,” und t 8 per cent. dividend on class A shares (par $25) should easily be maintained. The earnings on class B stock are said to be substantial, and a dividend on it should be possible. The stock has speculative chances. N., Burrato, N. Y.: Preferred stocks or bonds are safer investments for the long pull than com- mon shares, Ci common is # go investment, but the preferred is @ better purchase for a “long term of years.” Fr. Monroe, Va.: You could now sell your Willys Overland common at a small profit, but the company’s outlook is so that the common stock seems bound for a higher level. By holdin; on for a while longer you should be well reward for clinging to your purchase for so many years. Standard Oilof § jew Jersey preferred is rated highly as its market price shows. There are several reasonably 7 per cent. preferred stocks which are quoted below par. These include Dodge Bros. pfd., Crucible Steel pfd., and International Paper pfd., Willys Overland pfd., which has resum 7 per cent. dividend, is selling several points above par, but is a cheap stock in view of the fact that its 80 per cent. arrears are likely to be paid up before long. i R., Los Anceves, Cat.: The Sinclair Consoli- dated Oil Corp. capitalization is: Authorized com- mon 5,500, shares, outstanding 4,491,802 shares, no par value. Authorized 8 per cent. pfd. stock $100,000,000, outstanding $19,278,000, par $100. Bonded debt $78,470,000. In Nay of the dullness of the oil industry earnings on the common were ees in the first half of 1925, but no sividen have been paid on common for a long time, The dividend on preferred has been comicbooks.com