Judge — July 24, 1926 — page 27: what you’re looking at

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

New Yonx Crrr: It is poor policy for the average investor to buy cheap, non-dividend paying stock of any company, in the hope that ina few years hence a large corporation will absorb the company and give its shares greater value. ‘The proposition involves too much uncertainty and the expectation may never be realized. Nobody can surely foresee that Ryan Consolidated Petroleum Corporation's property will ever be bought by some big concern, One with limited funds cannot afford to act on’a tip of that kind. better buy the stock of a company iz pmething now, and so get interest No one,can safely predict what price will be. For six year of 5 per share on the stock is guaranteed by the Western Uni Telegraph Company under the lease expiring 1992 Ef the Iease is not renewed in that year at present or a lower guaranteed rate, the future of the Tel. & Cable property will be problematical. If the market price of Tel. & Cable's stock goes much lower it will be a fair purchase in considera- tion of the remaining guaranteed payments. L,, Bostox, Mass: I have no statement of the operations and earnings of the Fidelity Building & Loan Association of Utah. The association would have to make a pretty large profit to give you $2,000 at the end of ten years for each share of stock on which you will have paid $10 per month. Owing to Utah's high legal interest rate the plan is feasible. ‘The success of building and loan asso- ciations depends on the ability and integrity of their managers. Some are prosperous and pay investors well, and others are not very successful. P,, Fort Prence, Fus.: The Florida Power & Light Co. reports a progressive increase of earnings in 1925, and an increase of 48 per cent. in the first quarter of this year, as compared with the first quarter of 1925.” The company is evidently pros- pering and expanding, which gives its 7 per cent. cumulative preferred’ stock an excellent rating. The desirability of the stock is added to by the fact that the company is subject to the super- vision of the trie Bond & Share Co. S. St. Lours, Mo.: It does not appear likely that’ the Ameri & Foundry Co. will in- crease the 86 di year. The company is p: about all that it prudently But for its $10,000,000 reserve, dividends, it would not be much as it is already doing. ‘The company increasi 1 its officials expect | from its miscell: onstruction Your purchase of the old stock wh low put you in a good post pit American Te ig to stockholders an from its activities, including the vehicles, was comparativ as regards your holdings of the present stock, you can safely keep them as AN Francisco, Cat: ‘The predict Steet common will sell as high as $155 next fall is being made in certain quarters. But that is not probable unlesy the highly conservative y of the corporation shall change, and an n investment. ased dividend is declared or a melon is to be carved. The growing jt some= thing good is coming | ts for the recent strength and appr stock," Whethe n of Steel common not for you y additional me, you will certainly do well if you stand pat on the shares you possess, bought below $120. W., Povcurerrste, N. Y.: The Rutland Railroad runs the whole length of Vermont and has traffic rights into Montreal. More than half of its preferred stock is jointly owned by the New York Central and New York, New Haven & Hartford Railroads. This connection would seem to assure the road considerable business, but as a matter of fact the earnings have been very variable, and never very liberal. Dividends are almost a forgotten tradition, there being about $00 per cent. of arrears on ‘preferred shares. ‘The pre- ferred is selling in the 50s, but it would reach a higher level if there were any prospects of clearing ff the immense accumulation. I cannot see ~ you, with your moderate means, could be Lenefited’ by purchasing this stock. R,, Prersnoncn, Pa.: The Phillips Petroleum Co. “owns valuable and extensive oil lands in ‘Texas and elsewhere. It is producing crude oil at the rate of 40,000 barrels daily, nearly double the production in 1925. It is the of casing head (or natural) gasolin ° and it sells all its gasoline to refining corporations to be mixed with and to fortify gasoline produced by the cracking process. The company has been enlarging its acquisitions and has issued a good deal of stock, But all its stock is of one class and now no funded debt. The shares make a very fair return on market price, and if the capitaliza- tion is not increased too’ fast, the stock bids fair to be a pretty good business man’s purchase. 0., Wasntxatox, D. C.: As Norwalk Tire and Rubber common is paying 80 cents per share (now half of its former dividend) it, would seem on the face of it better to hold your shares than to sell them at a heavy loss, ‘The present dividend is not assured, but if earnings should increase the stock might sell alittle higher. | United States Rubber common is selling too high for a non- dividend payer with no immediate likelihood of a would be better for you to invest your some dividend payer. Chandler Cleveland paying 84 yzarly and selling below 830 offers fair speculative chance. F., New York Crrr: It is strange that you do not seem to have known that the Pacific Oil Com- Pany was merged with the Standard Oil Company of California several months ago, and that Pacific Oil shareholders received for their stock new Standard Oil of California shares, Associated Oil shares and 83 per share in cash, a total equivalent to about $83. The Pa Oil full shares are no longer in the market. The quotation you speci is only for fractions of shares. You ‘should mediately communicate with the Standard Oil Company of California, which bas an office in 120 Broadway, New York City, and request. it to inform you as to the status of your Paci Oil shares ‘under the merger. If you had kept track of the news of the day you would have seen lately that the property of the Atlanta, Birmingham & Atlantic was acquired by the Atlantic Coastline Railway. Only the bon holders of the Atlanta, Birmingham & Atlan’ got, anvthing out of this transacticny leaving nothing for the stockholders, whose holdings have no value. ~. Lovrs, Mo.: Among the, low-priced coppers, Miami 'Con., Tennessee Ccpper and Chemical and Nevada Con. Copper, are the best Miami has paid dividends for many years. Tennes sce Copper resumed dividends about a year or so med dividends very. recently. therefore, is the more seasoned stock. ‘The ore in sight alone on the Miami perty gives the mine's further life of over seventeen years. Among the low-priced oils, Simms Petroleum is the cheapest dividend payer. Skelly Oil, Barnsdall Hand B and Pure Oil are selling somewhat higher but are making a better yield on the market price. ‘and Rubber has lately reduced its dividend to twenty cents quarterly or eighty cents yearly, instead of $1.60, ‘This shows that earnings are not equal to those of 1925 but the new dividend is a good return on the market price. Please understand that I do not recommend purchase of any of these stocks. They have too little invest- ment quality to. warri recommendatic ‘They are simply W., Woopstp: secure a well-c readily rentable at good figui purchase for you than the average run of stocks. There is a good deal of uncertainty about the stock market. The fact that you can occupy one of the apartments yourself, this keeping in close touch with the property and can do much of the necessary repairing yourself m ur plan more attractive, You will of course, try to buy at a reasonable pri ‘There is another way in which you can profitably invest in real estate. That is the purchase of first mortgage re 1¢ bonds paying from 6 to 8 per cent. and yielding a certain revenue without trouble or danger of loss to the buyer. You will find desirable bonds of this class advertised in my department. ‘ew York, July 17, 1926, uilt, apartment house it would be a safer Free Booklets for Investors It is claimed for the Adair first mortgage real je bonds that they meet the tests laid down successful investors, namely, unconditional guarantee of principal and interest and # yield of 6 to 614 percent. by the house of issue, a good finan- cial statement by that house, and insurability of the bonds against loss. The bonds are guaranteed by the Adair Realty and Trust Company, with capital, surplus and profits of 2,500,000, and re- sources of over $10,000,000, and are insurable against, loss by one of the strongest surety com- panies in America, with resources of over $27,000,- 000. For details regarding current offerings write to the Adair Realty and ‘Trust Company, Healey Building, Dept. G-8, Atlanta, Ga, How an investor saved $9,000 at the rate of $50 a month and so invested his savings as to come out with $16,669 is told in a booklet, “What 8% Can Do,” issued by the Trust Company of Florida, Miami, Fla, Various other plans for reaching out for independent means are specified in the booklet. ‘The company offers 8 per cent. first mortgage real estate bonds of $100, 8500 and $1,000, with partial pyments arranged, A letter to ihe company wil ring the booklet (213) which gives full particulars. Owners of securities planning to dends and interest are invited by the Milton Strauss Corporation, Penobscot, Building, Detroit, Mich., to consult latest booklet, “Before You Invest.” It shows the procedure followed in making the real estate bond offerings sponsored by the corporation and furnishes a method to measure the real value of present or future investments. ‘The corporation will mail this booklet (710) to any applicant. Inits new booklet, “June and July Investments, G. L. Miller & Company, 30 East Forty-second street, New York City, points to investments culated to add both to one’s income and to one’s peace of mind. Issues of Miller bonds described in this booklet are secured by high-class income earn- ing structures in thriving citites, in New York, Texas, Missouri and Florida. These investments combine safety with a yield of 6!4 to 7 per cent. and may be guaranteed if so desired. ‘The booklet ims to aid every investor whatever the type or jount of his holdings. The company declares that ni stor ever lost a dollar in Miller bonds. The al booklet (121-ML) will be sent by the company to any address. Investments Before planning the investment of your idle funds send for a copy of this booklet. It sets forth in a concise manner the procedure consistently followed in the making of each first mortgage real estate bond offering sponsored by The Milton Strauss Corporation. Itshowshow weanalyze our first mortgage real estate bonds and fur- nishes a method by which to measure the real value of your pres- ent or future invest- ment. THE MILTON STRAUSS CORPORATION First Mortgage Real Estate Bonds Penobscot Building Detroit, Mich. COUPON Please send me without obligation your booklet “Before You Invest.” Name. Address... City... | $$$$$$$$9$$$ are mighty good friends If the Judge Investment Bureau can give you any help in safely investing them, the pleasure is all ours. Address Investment Bureau Judge 627 West 43d Street, New York HOW TO READ and Understand the stock, market quotation column af your PETABET and how to profit by market ewings in explained in 149 Broadway comicbooks.com