Judge — July 24, 1926 — page 26: what you’re looking at

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

Subscribers to epcE 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 stamped and addressed envelope should always be inclosed. Address all inquiries to the Financial Editor, Junae, 627 West 43d St., New York, giving full name and exact street address. Anonymous communications will in no case be answered. An Impressive Reversal by Theodore Williams HE leading constructive forces were no doubt consenting parties to the crash in the se- curities market of a few months ago when over-emphasized _ speculation came to grief. But they have since made a signal demonstration of their positive power. The recovery in the market has been most impressive, extending to a large percentage of the loss in many cases. to almost com- plete return to peak in others, and in some instances to actually new highs for all time. The advance was not flighty. Irregularity toned down into steadiness and the firmer hold- ing of positions gained. The higher-priced issues made the best showing. Fundamental con- ditions are so much in their favor that, everything considered, the Pes too tered a 6 whieh eeet me $1,500 income each year. I put this $25,000 into 8% bonds which raised my income to $2,000. Instead of spending all of this I reinvested my gain of $500. In ten short years my $25,000 had become $32,208 and my former bond income of $1,500 had become $2,570. .. A detailed account of this and other examples of How You Can Have More Money is contained in a new booklet, “2% to 4% Extra” which you may have, without obligation, simplyby n ailing thecoupon. First Mortgage Bonds at 8% $100, $500 and $1,000 Bonds Partial Payments Arranged see: TRUST CoMPANY or FuoRtDa MIAMI, FLORIDA Nae —___ figures attained are not too high. They are warranted by earnings, sur- pluses, dividends “and possibilities. Nobody believes that United States Steel common, for tance, has reached the limit of disbursement to stockholders, or that Union Pacific common’s investment value is in danger of decrease in the future state of prosperity which awaits this coun- try. In the good time to come the highest prices of to-day may seem reasonable. It all depends, of course, on the progress of business, but this at present on the whole is highly satisfactory. Radical _ legislation which might have created economic disturbance has been defeated in Con- gress and the political situation is causing business no worry. There are good reasons for stability in the quotations of stocks of genuine merit, but that does not justify in- discriminate and speculative buying. Some of the lower-priced issues are probably bound for higher levels, but they should not be bought except after careful analysis. The recupera- tion of the market has not been a runaway, and those now in control are not likely to permit that sort of thing. A certain amount of pool activity is inevitable and should be allowed for, but, in so changeable an affair as the stock market, the outlook for the real investor is quite assuring. Conservative investors continue to acquire vast amounts of good bonds—railroad, industrial, public utility and real estate—the last named being in especial and rapidly increasing demand because of their high yield and the safeguards that secure them. Answers to Inquiries Sr. Lovrs, Mo.: it & Company's stock, ing 8 per cent. on par, is selling al mium, making an excellent yield on market price. ‘an attractive business man's investment. a ester, N. Y.: You do not state what amount of money’ you have to invest, nor specify any securities which you are inclined to ‘This answer, therefore, must be along general lines. From the list of safe and desirable investments must be excluded cheap non-dividend paying issuer dealt in on the various stock exchanges, or peddled about by salesmen. Preferred stocks of corpora- tions are safer and often more attractive than com- mon stocks. Certain common stocks, however, have a fine yield and a high degree’ of safe Bonds of leading companies and high-grade municipal bonds are better secured than any class of stock, but their yield on market price is usually rather low. First-class first mortgage real estate bonds are in a group by thems backed ample security and making liberal yields, ra from 6 to 8 per cent. As these do not fluctuate in price they are less worrisome, as well as better Paying, purchases than listed bonds. Among common stocks of merit whose returns are satis- fying may be named Union Pacific, Atchison, N. Y. Central, U. S. Steel, Amei General Motors and Public Service of New Jersey. Preferred stocks of merit Steel, Dodge Brothers, Standard Gas & Electric 8 per cent. pfd., International Paper and Sinclair Con- ated ¢ G., Newport, R. 1: ‘The Central Leather ‘Company's deficit of $20,000,000 and i to earn much more than capital seem absolutely necessa of reorganization have been subm has been agreed upon. The recent spurt in the rice of the preferred was based on an unfounded favorable rumor. ‘There is nothing at present to encourage you to hold your shares or to buy addi- tional ones. L., Lanstna, Micu.: The International, Mer- ile Marine Co. reports for 1925 a deficit of over $1,500,000 as compared with $1,070,000 in 1924. The outlook for dividends on the pre- ferred stock has grown darker ars. The sale of the White Star Line to British interests would bring the company financial relief, but the bonds alone are likely to receive benefit from this. The preferred stock has been driven up and down at various times, Should it rise again to near your Purchase price, you would do well to dispose of it, S., St. Lovts, Mo.: Your pessimistic view of i has lost some of i Props through the settlement of the Brit strike and through the conditions. Perhaps wha gant expenditures e mass of the only a sign of widespread prosperit; ness of the nation makes a generally good showing. There is evidence of this in the 160. dividends paid by as many corporations on June 1 alone, some of these carrying extras, There are many standard dividend paying issues which you as a business man need not hesitate to buy. J. Pexx Yas, N. Y.: The recent firming up of the quotations of Universal Pipe and Radiator stocks was due to the company’s improved busi- ness. Earnings of the first five months of this year were estimated as equal to the full 7 per cent. dividend on the preferred. With a continua- tion of this rate of profit there would be a good outlook for a dividend on common. The net yield on the present price of preferred makes that stock an attractive business man’s purchase. HL, Porta, 111 Devoe and Ra has operated successfully for many y current earnings show an increase over those of the corresponding period of last year. Its dividend of $2.40 gives an excellent yield on the market Price of Class A stock. This stock was some months ago pushed up to $104 a share by specu- lators but there was no warrant for that price and the stock soon came down a crash and witha heavy loss to members of the poc!. But at present Price the stock is fairly’ attracti K., Katamazoo, M uy shredded Wheat Company lately paid an ini quarterly dividend of 75 cents on its new common stock of no par Yalue, ‘This was equivalent to $12 on the old stock (par $100), which id $10 yearly, and each share of which was split up izto 4 new shares. ‘The yield on the new stock's market price makes it @ good business man’s purchase, but there are many other stocks whose net return is greater. S., Dexver, Cono.: ae ae Jil Com- ny’s earnings are remarkably generous and it fice declared an extra 20 cents quarterly dividend ‘on its increased capitalization. Its regular divi- dend has been only 30 cents per quarter, but it is intimated that the disbursements on the stock will be increased from time to time hereafter. ‘The Standard Oil of New Jersey owns 70 per cent. of Humble Oil's stock. The current price of Humble Oil's stock would be too high were it not for expectation of a bigger return. It seems wise to hold your shares. W., Sax Dirao, Cai International Telepho cai The current price of : ‘and Telegraph stock is not based on its present dividend but on reports of large profits yielded by its concessions abroad, and by the sale of the telephone apparatus which a subsidiary is manufacturing. ‘The company has an ambitious expansion program, one of its re- ported plans being to secure managment of the state owned French system. There would be no serious risk in buying the number of shares you mentior XVILLE, TENN,: Financiers interested lys-Overland Company anticipate large financial benefit to the company from the manu- facture of its new low-priced motor cars, ‘These are expected to compete sharply with the Ford Vehicles which have had such a phenomenal sale. However this may be, Willys-Overland earni are steadily adding to its financial strength. ‘The 90 shares of preferred stock you propose buyi should prove & judicious investment. comicbooks.com : d r f p a