Judge — February 19, 1927 — page 31: what you’re looking at

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oe first mortgage real estate bonds which mature in from 2 to 15 years and pay from 5!y to 8 per cent. No par- ticular issues of these can be recommended, as their desirability depends on the character and standing of the companies which underwrite them and whose names are given in the letter mailed to you L, Puitapetenia, Pa.: Belding-Hemminway is sell- ing low for its $3 dividend, which shows public doubt of the maintenance of the current rate. It is officially asserted, however, that earnings warrant continuance of this rate. Pressed Steel Car common is highly specu- lative. The company is paying its preferred dividend but only about 50 cents per share was earned on com- mon in 1926. The president of the Real Silk Hosiery Mills has declared that the preferred dividend is in no nger and that the outlook is promising. This in plies that the company’s stock is an inviting business man’s investment. Pennsylvania R. R. stock has great merit and may prudently be bought even at present high figure. Chieago & Alton R. R. common and pre- ferred are both non-dividend payers and not inviting as speculations. The ro a making slow progress. Western com- muon and preferred stocks are in the epeculative clas. Neither makes a return. There are arrears of 45 per cent. on the preferred stock and if the company ever again becomes a dividend payer the back dues on preferred must be settled belore on common. The company is rey considerably better in 1926 than in 1925, ture is uncertain. C., Hisstna, Mixy.: The Maytag Co., manufac- turer of washing machines, is doing a brisk business und its dividend of $2, makes ‘an excellent yield on market price of stock. Great Northern Railway stock recently advanced on improved earnings and merger possibilities. The shares, with their 5 per cent. divi- dend, are still a good business man's purchase. Radio Corporation of America has a great possible future, bat the common stock, with no dividend, seems to be in the long-pull class K., Beuzvee, Pxsx.: Congoleum not attractive. The company is not Ii me dividends. If the shares get back to your pur- chase price you had better eell them and buy a dividend payer. The Lone Star Gas Corporation appears to be paving dividends at the rate of $1.50 per year. That makes a poor yield on your purchase price of $45. You could have done much better. coi hanesnono, | Oxtanoua: The Johns-Manville ‘0. has been a stable and prosperous old-time con ently a new organization was formed, entitled the ville Corporation, to acquire the business For each share of no par old’stock the holders received e shares of new no par common and 3/10 of s of new pfd.-stock. The old stock made vance on the announcement that J. P. M hud bought a large block of new pfd. for investment, and the declaration of an $18 dividend on the old ‘ock, previously paying $3 yearly. ‘The new com stock’ was dealt in “when issued” on the curb and I: made a material advance. The future of this stock de- is on what dividends shall Le declared on it. Its ‘ounted the coming divi- tock is selling much ver, but as the com- pany is flourishing there is doubts expectation f 3 higher return some time in the future. Gulf Oil of Pennsylvania is one of the biggest oil producers and its properties are very valuable. ‘The stock makes a low yield oa current price. Sinclair Consolidated Oil 8 per cent. pfd. would be a more desirable purchase. Hunble Oil is in the Standard Oil Group and is a satis- factory profit maker, but its dividend payments are low for the market price of the stock. Lehn & Fink Products shares make a liberal yield on quoted price which would be high were the business regarded as more stable. Texas Company has been succeeded by Texas Corporation, which has exchanged its stock share for share for the old company's issue. Earnings for Last year were about $6 per share and the surplus snow about 89 per cent. of the ea used hope of either an increa n stock is ed cash dividend (now $3), or a stock dividend. In general it may be said that all the foregoing com are in the sound but the purchaser must decide for himself whether the Jividend in each case is sufficient. D., Lovisviug, Ky.: If you will put your $12,000 into sound dividend paying standard issues, buying outright for invest-nent and not on margin for specu ou need not be liable to drastic loss. I would suggest that you get on recessions the better class of pfd. stocks which sell at a premium because of their merit and seeming certainty of continued dividends. These i . Steel pfd., Corn Products pfd., Standard Gas & Electric pfd., Public Service of New Jersey pfd, a which you can find by consulting stock market reports in the metropolitan newspapers. Preferred stocks of excellent quality selling below par include International Paper pfd., Continental Baking pfd., Dodge Bros. pfd., besides others mentioned in stock market reports. First mortgage real estate bonds paying from 5'% to 8% may be had from responsible houses and deserve to be added to any investment list. H., Jnrrexsonvitte, N. Y.: Associated Gas & Elec- tric is a strong and expanding public utility company. It is not likely that you would have to wait 10 or 12 years for dividends on the common stock. In fact, it should be making returns in another year or two. But you could buy good stocks which are already paying stockholders well. No human being can foresee the price at which any issue will be selling several years from this date. Lawrence, Mass.: The New England Power Lace oe fora only about one year ago. It started with good prospects and has begun paying divi- dends on pfd. stock. This i vestment, but the common shares ai G., Brooxtrs of New Yi assumed a ir business man’s in- still a speculatior N.Y.: The Prudence Plan, Ine., comparatively new concern, which hat confuses it with an old and lea with which it has no connection. Its issues are still in the speculativ stage. For invest ment purposes it would be better for you to buy’ the securities of the Prudence Co., Inc., with offices in Manhattan and Brooklyn. B., Motoourny, W. Va.: Among safe investments in’ which to put $2,000 a year are, at present, the following: International Paper 7 pet cent. pfd., Dodge Bros. 7 per cent. pfd., Standard Gas E Hieetri 8 per cents pid American Stee! Foundries ‘ommon, and Continental Baking 8 per cent. pfd. First mortgage real estate bonds paying from 5! to 8 per cent., and some of them guaranteed, are among the safest securities in the market SHUKGH, Pa.: Some time ago a plan for the © capital structure of the Central ather Co. was framed, but has not yet been put into effect. This would result in clearing off the arrears of the pfd. dividends, aimed would be eventu- ly beneficial to improvement has been noted in the business of the company, but it would seem prudent to defer purchase of its shares until the readjustment is certain f a, Pa.t Having had deficits for several ble reserve, the Pennsyl- ion bas) con its stock can be e he depression in the coal in- ed away, and the outlook for 8 corporation is brighter, but’ buyers of the stock wy have a tedious wait for returns, M., Detnort, Mrcu.: The Continental Clay Com- pany suffered a deficit in 1925, and does not appear to be a particularly prosperous concern. Stocks of companies of stronger earning power with assured ability to pay dividends would be preferable. P., Gurxs Fats, N. Y.: The low price of Mother Lode Coalition stock is, on the face of it, due to deficits for five years and declining production. Kennecott is already in control of Mother Lod , Cuicago, Int: Pennsylvania Gas & Electrie Corporation is not yet a seasoned dividend payer. It paid ita initial dividend on Class A stock in March, 1926, of 3714 cents, or $1.40 in stock on Class A stock Nothing has been paid on Class B. Class A is business man's purchase. , Raxpowra, Kay.: American Linseed Oil pfd., paying $7, would sell higher were the dividends better assured, Steel Foundries pfd., paying $7, is a sound issue and more desirable than Linseed pfd. , Lewistox, Mg.: The fertilizer companies de- for their prosperity on orders from planters and rs. These customers were discouraged by the low prices of cotton and grain raised last year and it is doubtful whether th There c, a possibility, but inty, that prices of American Agricul- International Agricultural and Virgi Carolina Chemical will make a decided advance “within a reasonable length of tire.” These stocks are all in a speculative position, H., Erg, Pa.: Erie Steam Shovel common makes a yield’ of about 9% on market price. company seems to be getting on well. ‘The bonds recommended by your banker are prudent purchases. As Peerless Shoe Co. is an obscure concern paying no dividends, there is not likely tobe any market for its stock. . Port Jervis, N. Y.: Ginbel Brothers is a big prospering enterprise, but it pays no dividend as yet on common stock. ‘The preferred is a good_business fan's investment New York City: American Snuff common is an excellent business man’s purc d making a big return. Austin Nichols pfd. and Cudahy Packing seem able to maintain dividends, Montgomery Ward's earnings dropped in 1926, but the profits were more than equal to the dividends, ‘The company’s financial position is strong New York Crrv: My advice would be not t iy investment in Muscle Shoals land until after e yourself looked the place over. A lot of fraud n practiced down there on innocent purchasers. ., Unica, N. Ye: The American Metal Co. con- tinues to pay $7 on pfd. but has cut the dividend on common stock to $3. Both issues have merit, the America s 00 and Anaconda Copper are » as income producers for stockholders. An of the best coppers, but Steel Foundries stock is the stabler of the two. M., New York Crrr: Beaver Board pfd. is selling low price, as the company is not es the dividend. How long this state of a tinue nobody can foresee. The stock does not app to be worth holding. It would be better to switch toa dividend payer. New York, February 12, 1927. he reasonably and having paid no dividends sin Coal & Coke Corpora ground to recover befor speculative purchase. dustry has partially p t Free Booklet for Investors The Trust Company of Florida, Miami, Florida, continues its offerings of 8 per cent. first mortgage real estate bonds, maturing in 2 to 8 years and secured by income producing buildings and their revenues, by advance monthly payments on loans collected from the borrowers. The ‘Trust Company is subject to State supervision and has resources of $500,000. ‘The bonds may be bought on partial payments. Full particulars are contained in booklets (203) which the company will mail to any address Analyze Your First Mortgage Real Estate Bonds HIS BOOKLET has been prepared to illustrate the require- ments of The Milton Strauss Corporation’s bond offerings. Tt will serve you as a guide in the intelligent selection of your future First Mortgage Bond Investments. It shows how safety can be measured in terms of a generous margin of security and in the ratio of earnings to the plan of amortization. Mail the coupen today! THE MILTON STRAUSS CORPORATION First Mortgage Real Estate Bonds Penobscot Building Detroit, Mich. . COUPON=* ee Please send me without obligation your booklet “Before You Invest.” Name--- Address. City S$S$S$SS$S$ are mighty good friends If Bureau can give you any the Judge Investment investing help in safely them, the pleasure is all ours. Address Investment Bureau JUDGE 627 West 43d Street, New York | | | | | i TI | | | | | 1 i | | { | | | | comicbooks.com