Judge — October 2, 1926 — page 29: what you’re looking at

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

move, as the dividends on both these issues bid fair to be maintained. It is possible also though not certain that these stocks may some day ad- vance enough to recoup your loss on Bosch Mag- PS,, Beurast, Inenanp: As the Associated Gas & Electric Company is strong and expanding and is paying dividends on its preferred issues and its A shares, there is merit in its 61 per cent. con ible debenture certificates, Manila Electric sB, These are the direct obligation of the company, and are not secured by mortgage. company’ does not pay the norm these bonds. They man's god I] purchase, ew York Crrv: Austin Nichols Pi stock’ may, as you express it, be classed ulative investment at present price, for a |.” Last year was a try for the compan; wing to overproduction of ¢ fruits dv bles, competition and low prices, but the outlook 1926 is asserted to be much ‘brighter, und it n officially declared that the 7 per cent. idend will be maintained. : T., Avaces, New York: You are correct in ur opinion that the stock of a good utili ion is “one of the safest and mo tment This implies, of cour: trolled concerns are profit’ maker ng to the number of these will be th y of investment is so. desi eastern Power has promise, though it is very having been incorporat! J; nitrols several companies which appe: fairly prosperous. It is estimated that the com- ny earned $1.50 to $2 per share on its common in the first half of this year. A quarter! 1d of $1.50 has been paid on its Class A stock. common stock, now selling at about publicly offered last January at rhings ate eventual ability to put the common on « moderate dividend basis. But you could get quicker returns, and possibly no. ital in the end, by buying a dividend pay ‘a price not very distant from that th aling ‘ond mortgages so Si and desirab! stock of a which handles first mort of the latter kind may bed ‘d by the difficulties of a large first mortgage state bond dealer of New York City, now in receiver's hands, In any case the bonds are sifer than the stock. The Excess Insurance Com- pany of America, backed, as its prospectus shows, by men experienced in insurance and finance and broad field before it, starts promising! As the promises have not been realized the company’s shares must be r s speculative, for the present. What dividends the stock (par $5) will pay foreseen, and for their quoted price of 8 buy some fair dividend payers. However the purchase of a few Excess Insurance shares would be a legitimate enough speculation, . L., New York Crrv: Vanadium Corporation of America, paying 83 per year, makes a pretty good return on its peak price of the past 6 months. The corporation is doing well und the shares belong in the business man's investment class. Doubtless it would pay to hold them for the long run W., Aknox, O. No general answer concern- ing the merits of Florida municipal bonds can be given, As is the case in other parts of the country, n “individual treatment, P would not be an excessive yield on mu in that State, But some municipalities there are un- doubtedly more to be relied on than others for pa ment of interest and principal. No offering should be bought until after thorough scrutiny of the munici pulity’s record and resources, and the bonds should be obtained only from responsible bond houses who can recommend them. Totepo, O.: Union Carbide and Carbon Corporation's progress has been such as to make its stock a desirable business man’s investment. The shares are selling high for the 85 dividend, but earnings justify expectation of a coming in- crease in the disbursement to stockholders. R., Tart, Cavs. The answer to your letter in ssue of September 4, inadvertently stated that American La France common paid the same divi- dend as Ray Consolidated Copper. It should have re aying 4 times as much as Ray and yet selling lower” Avavsts, Ga. The outlook for a dividend ar Co. pfd. stock is dim. The mapa ed a deficit of 325,384 in 1925, and all its stock is held ng trust to last until certain large loans to banks. All dividends come. from : in reserve, When directors consider profits in adequate they sometimes declare a cut rate, if the do not pass t dend. Your purchase of Beaver Board Companies’ pfd. stock was, as things turned out, unfortunate. The stock did not be- come cumulative until January 1, 1925, and you are not entitled to payment of dividends that were ssed in the 4 preceding years. The company's stock is in a voting trust and must remain there until the 8 per cent. collateral trust notes, maturi in 1923, are redeemed. The revenue is not equa to keeping up both sinking fund payments and dividends. The exchange of Case Plow Works pfd. for J. 1. ‘Case Plow Works common was the anly thing to do, as the former company had collapsed. Whether the common shares will yet have good value cannot be foreseen. B., Paovipexce, R. 1: Reports of increasing earnings and the’ declaration of the quarterly dividend of 81 have strengthened the opinion of those who regard Chandler Cleavland Pid. as a desirable business man's investment. _D., Evanr, Micu.: It certainly would have been wisdom to take your profits at 8146 on the N.Y Central stock which you bought at 878. ‘The shares have since receded a few points. Even yet a switch might be advisable. The possible increase of dividends and the chance of another upward swing in the stock are to be considered, but those are not certainties. Such issues as Dodge Brothers 7 per cent. pid. quoted at 888, Standard Gas & Electric 8 per cent. (par $50), quoted at about 856, and St. Louis & San Francisco common paying 87 and quoted at 899.75 are tempting substitutes for N. Y. C. stock. This switch applies to Penna R. R. stock also. _ Cy Ports, Iut.: Consolidated Textile’s earn- ing capacity ‘is far from having been restored. ‘The first half of this year brought it a net loss of $355,948, compared with a net loss of only 33,801 in the first half of 1925. At that rate the outlook for stockholders is pretty dim. The textile industry is still in a depressed condition, When it improves, but not before, Consolidated Textile should be able to make « creditable showing. _ K., Apaats, Mass: Your view is not borne out in the recent rise in securities prices. ‘The highest advances in the past few months were made by stocks having long dividend records. The se toned issues in the fong run have the advantage of the non-dividend payers. Inferior issues some- times do make run-ups, but they are more given to run-downs than are the solid and reliable issues. G., Rateton, N. More than 1,000 issues are now listed on the New York Stock Exchan, and new ones are being added to the list frequently. Only the other day no less than seventeen new securities were admitted to trading privileges. It is hard enough for an observer to keep track of these numerous stocks, which supposably possess some soundness, without hunting up facts concern- ing the tens of thousands of weak or wildcat promotions that are launched yearly all over the country. Safe policy for investors is to study and stick to the listed issues until they have learned something about them, before Venturing into gambles held out to them’by irresponsible salesmen. R,, Searrie, Wasu.: Union Pacific common has always seemed to the Bureau one of the most desirable of issues. The railroad’s earnings are bearing out this idea nobly. Net profit for July last was 38 per cent. ubove that of July, 1925. ‘The company pays 810 yearly on common and there is good reason to expect a future handsome. dis- tribution either in stock or cash. The shares have mounted high, but it is not « wild prediction that they will reach the $200 mark in due time. You were most fortunate in buying outright at below $130, and you would wisely hold your 100 shares for the greater days to be Havenstraw, N. ¥.: Loft, Inc. bas paid no dividend since 1922, when it had a deficit, und since which time it has earned but a meager amount per share of stock. ‘The stock is so unattractive that it seems wise to switch to some dividend payer and pocket your loss of capital. New York, September 25, 1926. Free Booklets for Investors A booklet which is expected to serve as a guide in the intelligent selection of first mortgage bond investments has been prepared by the Milton Strauss Corporation, Penobscot Building, Detroit, d It sets forth the requirements of this cor- poration’s bond. offerings, showing that their safety is insured by a generous margin of security and is increased from time to time as borrowers make Payments on principal. ‘The booklet. is entitled “Before You Invest,” and the corporation will mail it to any address. Ask for J-918. ‘The Trust Co. of Florida, Miami, Fla., operating under State banking supervision, offers 8 per cent. first mortgage real estate bonds maturing in 2 to 8 years. The bonds are secured by new income producing buildings, are a first lien on income, and are further strengthened by monthly payments by borrowers on interest and principal. Fully explanatory booklets (218) will be sent by the company to any applicant. As an example of how one can create an income surely and safely, the Adair Realty & Trust Com pany states that an average s nnual invest- ment of 8299,89, with interest reinvested, in Ac guaranteed—insurable 64 per cent. first mn real estate bonds will build $1,000 up to 82 20 years. The income then will be $1,800.50 yearly. Of ‘the total amount accumulated less than’47 per cent. will be cash invested. Besides the usual safe- guards for such securities, the bonds are guaranteed by the issuing house, and are insurable in a surety company with resources of over $27,000,000. To obtain full particulars, write to the ‘Adair Realty & Trust Co., Healey Building, Dept. G.-9, Atlanta, Gaz, for its booklet, “Why Your Real Estate Bonds Should Be Guaranteed.” How Do You Select Your Investments ? ‘HIS BOOKLET has been prepared to illustrate the require- ments of The Milton Strauss Corporation’s bond offerings. Tt will serve you as a guide in the intelligent selection of your future First Mortgage Bond Investments. It shows how safety can be measured in terms of a generous margin of security and in the ratio of earnings to the plan of amortization. THE MILTON STRAUSS CORPORATION First Mortgage Real Estate Bonds Penobscot Building Detroit, Mich. see COUPON Please send me without obligati your booklet “Before You Invest. Name-- $$$$$$$$SS$S$$ 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 UP AND DOWN PROFITS Why trade in the stock Market only to proat by an advance or by a decline when you can trade to profi either or both ways, Free hookiet J, explains, PAUL KAYE 149 BROADWAY, N. Y, comicbooks.com