Judge — September 4, 1926 — page 28: what you’re looking at

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

Investment Bureau Subscribers to Juve 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 entelope should always be inclosed. Address all inquiries to the Financial E and exact street address. Midsummer Activity by Theodore Williams acEHorsesmake their best time in hot weather, but ordinarily business and the stock market have moved more slowly in midsum- mer than in the cocler months. This year, however, the rule for commer- cial and financial activity has been reversed, and there has been a re- markable degree of industrial pros perity reflecting itself in a bouyancy for securities rarely equaled. To be sure, the leaders in the recent up- ward trend were issues of undoubted, even singular, merit, but they were trailed by lesser stocks of good qual- ity and promise. General Motors and U. teel had enough intrinsic value to warrant their signal ad- vances, and no issue lacking in real worth got forward vei 'NVESTIGATE these 8% Bonds and the Trust Company of Florida and you will learn— 1—Florida’s five reasons for 8% and safety ; 2—The character of investment servicerendered by the Trust Company of Florida. Write today for free copy of “Why Florida Investments Pay up 8% "— a Trust Company of Florida booklet. Invest in Florida at 8% $100, $500 and $1,000 Bonds Partial Payments Arranged Write to, "TRust ComPANy or FLORIDA Paid-in Capital and Surplus $500.000 MIAMI &) FLORIDA I want to know Florida's five reasons for 8% andeafet Name-- Street ---- City- itor, SuDGE, 627 West 43d St., New York, giving full name Anonymous communications wi in no case be answered. The greater proportion of the rise was achieved with but little public participation. Men of means “did it” mostly. As the figures mounted, a portion of the public, belated as usual, began to rush in and prices were paid that would have seemed ex- cessive a few months ago. Heavy trading days occurred, and the con- servatives in the market grew wary of the future. Peak prices and a flood of transactions and many stop- loss orders on file—what could be more certain signs of another drastic reaction? Circumstances, however, are differ- ent from those prevailing in March last, the month of the big decline. There is no longer any doubt about the fundamental soundness of trade conditions. Moreover, strong men control the stock market, and they have large views as to the outlook. They are anticipating much greater prosperity in the United States than ever before, and their psychological attitude is most helpful on the con- structive side. If their expectations are well founded, they might lose profit if they distributed their hold- ings now or in the near future. As against this inference, John Moody, that able and long-experienced ob- server, intimates that much distribu- tion may already have been effected. Tf so, it has been skillfully hidden. However, the small investor or speculator should not be too ready to rely on the supposed policy of the strong ones. He should keep his commitments at a prudent amount, and be impelled to purchase only when recessions give him a good opportunity. The declaration of a 50 per cent. stock dividend by General Motors will probably be followed by similar action by other large corporations. Issue of additional shares causes a drop in the market price per share, but if dividends at current, or better, rate shall be continued the share- holders will benefit greatly. These L_-— —_—— instances strongly confirm the opin- ions of the optimists, but they are special and should not lead to in- discriminate buying and overspecu- lation. Answers to Inquiries M., Atappry, Wro.: The Homestake Mining pmpany has been paying 50 cents per month on its shares. There was a deficit in 1925 of 81,194,168 after payment of diviaend hether the dividend rate can be kept up thi depends on earnings, and these are rather uncertain in amining enterprise. Dome Mines stock is selling low because of the company's deficit in 1925, and the general mana- ger’s statement indicates that 1926 is not ex- pected to be any better than 1925. The company and its pre ve @ pretty good dividend record. G., Spuisariziy, Mass. Continental Baking A stock iy a dividend payer, but a falling off in carnings during the first half of this year darkens the prospects for any dividend on B stock, and this no doubt accounts for its price decline. You may have to hid your shares a long time before a can get your purchase price. sPortuanp, Me.: Its large interest in General Motors has proved a gold mine to the Du Pont Company, and it has passed the benefits on to ils stockholders. The company’s announced inten tion of creating an industrial alcohol manufuc- turing plant of great capacity has enhanced the attractions of the stock. Notwithstanding the speculative features. to which you call attention, the stock has intrinsic value and it probably would pa ste pu in the long run to hold your shares in- of selling them and taking your profit. R., Ricustosn, Va.: First morigage real estate bonds offered by reliable houses constitute the safest kind of an investment for a woman. The Adair bonds mentioned by you, nteed at 614 per cent. by the Aduir Realty & Trust Com- pany of Auanta, Ga.. urable principal and interest b; , x la! have their corporations h a degree spectacular sin ering to, $ to assure on. Jhio Oil stock is a moder- ately’ good purchase, at present figure, for, although its regular dividend is only $2 yearly it is paying extras, the latest being equal to the regular quar terly dividend. The company is in the Standard Oil group and has productive holdings in Montana and. elsewhere company lately acquired 4,000,000 acres of oil lands in northern Mexico, and is preparing for vigorous operations there. ‘Time alone can tell what effect this important new venture will have on the fortunes of the company D., Laxouer Corporation ds on its thre shares are a fair b Lovisy Ky H., Prrrsecxon, Pa. at brewery most in case light win ain be legalized. Such action en, and it is a waste of time to the Soviet Government will Russian imperial bonds can be only a pipe dreatn, and it must be remarked th: it is not worth while to indulge in conjectures as ppen regarding these bonds in case is overthrown. I cannot spare the time to hunt up facts and then reckon possible profits on a hypothetical deal in German war bonds. R., Tarr, Cat: In view of the great specula- ig stocks as compared with in- m advisable not to by less than 2 profit La France com- and beer should a may never be figure on it. ever agree to validat to put the proceeds in Ame mon, paying the same dividend and selling lower, ‘or Continental Motors, returning 80 cents and yielding over 7 per cent. on market price. R, Loutsviute, Ky.: Earnings of the Mengel Company for the first half of 1926 certainly seem to justify expectation that the dividend on common will in time be resumed, and that in consequence a higher quotation for the stock will be in order. But the directors may prefer to pursue a conserva- tive course and further strengthen the reserve before declaring a return. A possible profit of 83.50 a share for the entire year would leave but a moderate margin over the former disbursement of 86 vearly. B., Revere, Mass: North young to be able to show much of a record, having been incorporated so lately as in January. last It has paid one quarterly dividend of $1.50 on its Class A stock, but the common may have to wait long for any return. An issue of preferred stock has been authorized and when it comes out the chances of the common will be greatly lessened. The common, therefore, is highly speculative at Present. Cities Service common has merit and it is good business man's purchase, Mohawk Hudson Power preferred is yielding a. dividend, but the common has not arrived that far and it is only a fair speculation. . 26 comicbooks.com