Judge — March 5, 1927 — page 29: what you’re looking at

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

Motor Co. common. There are arrears of about 40 per cent. on the pfd. stock which must be taken care of before common stockholders can receive a cent. F., New York Crrr: The Fair is a prospering de partinent store and pays very satisfactory dividen Its stock was a prudent purchase at $27. Stromber Carburetor yields liberally on your purchase price and has sold higher. The International Rubber Co. pays $1 yearly, a good yield on your purchase price. The stock is a fair busi 's buy. T., Battimone, Mo.: Ajax Rubber and Continental Baking B are in the highly speculative ranks. Warner Bros. Pictures Inc. Class A stock has paid no dividend since December, 1925, and the common has never paid hing. ‘The company suffered a heavy deficit in the year ending March 31, 1926. It would be wiser to buy some standard dividend paying issue, than either of the foregoing. W., Lovisviuux, Kr.: No Argo Oil statements are available, but it is a cheap issue that no conservative investor would buy. The Apco Manufacturing Co. is said to be paying 8 per cent. on Class A shares, but nothing on common. I have no report of company’s earnings and so cannot properly judge of its condition. Continental Motors, paying 80 cents yearly, is a fair purchase, provided the dividend is maintained. Ameri- can Steel Foundries common, National Cash Register A and White Sewing Machine Co. pfd. are reasonably safe purchases, and first mortgage real estate bonds are safer still. H., Loceronr, N. Y.: You are not likely soon to see Bethichem Steel common at the price it cost you (more han $100 a share) through exchange of Midland Steel shares for it. But there is a possibility of resumption of dividends on Bethlehe:n Steel common before long and it might be better to hold for awhile longer than to switch at a loss. The corporation in 1926 had its best year since the war. It paid off a big slice of its funded debt, reducing interest $1,800,000 annually, spent over $32,000,000 in new construction and yet earned $4.78 share on common. I., Los ANGELES, Cat: It does not seem advisable to even up on Durant Motor stock until there is some probability of payment of dividends, which is not yet the case. The stock is very low, but there is no cer- tainty that it will not decline further. Better buy a surer thing—some issue which is already paying divi- dends M., Pumapezenta, Pa.: Yellow Truck & Coach stock, selling at about $28 lately and paying 75 cents yearly, can hardly be regarded as a desirable purchase. Of course, there is the chance of bigger earnings and higher dividend someday. But why not buy something which will at once give you a good return? L., Scranton, Pa.: Texas & Pacific Coal & Oil Co., which suspended dividends about 3 years ago, has resumed them at the rate of 60c yearly, a yield of only about 4 per cent. on recent price. Y., AuLENTown, Pa.: If you should set out to estab- lish @ trust fund for a widow or an orphan you would be advised by lawyers or bankers to ma wervae tive investmeats, Vertientes Sugar 73 and Kingdom of Italy 7s would not be considered as eligible. Since you are acting on your own behalf, these securities may stand on your list unless they show a strong tendency to decline. ‘The Vertientes Co. has had some yearly deficita, but has managed to pay interest on its bonds, whose price remains quite stable. Italy is getting into a sounder financial condition and her bonds seem to be undoubteily safe, All gilt edged bonds are selling too high to yield 6 per cent. For additions to your per- sonal trust fund you could buy sound first mortgage real estate bonds paying 6 to 8 per cent., some of them being guaranteed; or such excellent issues (not of the highest grade) as International Paper Co.'s 6s, 1941; Standard Oil of New York 644s, 1983; Seaboard-All Florida first 63, 1935; White Sewing Machine Corp. 6s, 1936, and Dodge Bros. convertible debenture 6s, 1940. F., Wicnrra, Kas.: C a of New York 548 and Pacific Gas & Electric 5448 are among the well-rated public utility bonds. Argentine Govern- ment 63 and Norway Government 63 are reasonably safe foreign issues. Virginia Carolina Chemical 6 per cent. second pfd. is non-dividend paying, and its low quotation shows that returns to stockholders are re- garded as remote. For about the price of this stock you could buy moderately good dividend payers. C., Browinanast, Ata.: While Greif Bros. Cooperage Corporation Class A stock, with its annual dividend of $3.20, cannot be called a strictlye'“conservative invest- ment for a sinall investor,” it has the merit of a sound purchase for a business man. The company has valu- able properties and the business is long established. zw Ontrans, La.: Although Famous Players comtnon stock seems a good buy, there is no sign that ita price is about to bound upward. The corporation has been accused by the Trade Commission at Wash- ington of violating the Anti-Trust law, but the corpora- tion's officials deny this. The corporation's business seems to be going along all right. Dodge Bros. pfd. yields over 8 per cent. on market price, and the com- pany’s outlook is bright. ‘The common stock will not appear attractive until there is certainty of a dividend. U.S. Steel common with its coming payment of a 40 per cent stock dividend looks inviting. The corpora- tion is expected to continue its 7 per cent. dividend on the enlarged capital. In that case new Steel stock should advance enough in 6 months to meet your profit requirement. Dodge pfd. and Steel common would be prudent selections for a $1,000 investment. B., New York Crrv: Certain-teed Products ‘and Erie Steam Shovel are dividend payers and their stocks are good purchases for a business man. Miami Copper yields about 10 per cent. on market quotation, and is a fair speculative buy. Burns Brothers Class ‘A stock, with its $10 dividend, makes a liberal return on present price. ‘The company has had great prosperity. W., Brracuse, N. Y.: As the Minneapolis & St. Louis R. R. is in receivers’ hands and is liable to fore- closure sale or to reorganization, its stock, selling at $3 to $4 per share, can hardly be regarded as a worth- while speculation, Wait until the trouble is over be- fore you buy. Chicago Great Western R. made a good showing in 1926, but the recent advance in its common stock was due more to the speculative wav in rails than to earnings. At best the stock is a long pull. The eect on prices of shares of any increase in Northwestern railroad rates cannot be foreseen. What will happen to October cotton is beyond m ability to forecast. P., New Youe Crrv: There is not much to be said at present in favor of Armour of Illinois Class B stock. In the 10 months ended October 31 last the company earned only 24 cents on Class A and nothing on Class B. However, the company is so strong that it seems to have a satisfactory future, which would be reflected in better values for its stocks. It might be well to hold Claas B for at least a little higher figur , New York Crrr: Though Skelly Oil and Loew's Inc. are doing well, their shares are too high for their dividends. This inequality may be remedied some day, but higher rates of yield can be obtained at once from sounder issues. M., New York City: Montgomery Ward issues are good business man's purchase. The company proa- pers and paya dividends. Esty Welte stock lately a bad break, but recovered to some extent. The de- cline was attributed to professional selling and not to Tack of merit in the stock. Class A is on a $2 dividend basis (with a stock extra), giving a good y on present market price. ‘The company reports th: it has booked orders which will keep its plants active at full capacity for months to come, American La France earnings last year seemed to forebole a cut in common dividend, but the regular quarterly return was paid in February. Business is asserted to have b The pfd. stock is an excellent R., Atamosa, Cob.: As Electric Boat, is not pa dividends ita stock may very well prove to be a long pull. The company, however, is doing. good dea! of usiness and the promising nature of its outlook has caused a material advance in ita stock. International Combustion Engineering ia a substantial; corporation and it may eventually pay a dividend that will w rant the present price of its stock. Studebaker's c mon dividend richly rewards stockholders and the company’s prospect: ree yuraging. . Muwauxge, Wis.: Since the North American is « big and growing organization, with a prospec- tivegreat future, it seems expedient to hold the common stock rather than to dispose of it at a loss of some 20 points. A year or two ought to make a favorable dif- narket price. ansas City, Mo.: The Servel Corporation is than one year old and has had difficulties to con- tend with that have kept down its profits. It scored a considerable deficit in 1926 and had to sell additional stock to obtain more working capital. It, naturally has not begun to reward stockholders and the time when it can do so looks far off. Ultimately the cor- poration may prove a fine money maker, but it faces much competition, and those desiring immediate in- come had better buy standard dividend paying issues W., Norra Wags, Pa.: Mexican Seaboard 0i which has for years been paying nothing to shareh ers, used to control large tracts of oil lands in Mexico. Its condition and prospects have not been improved by the controversy over oil lands in that country. The Lake Superior Corporation has not been able to pay any dividends and its net revenue in 1925 was only 4 cents per share. The R. E. Thompson Radio Corpora- tion makes a financial showing which cannot please its stockholders, and is not a dividend payer. It would profit you more to put your money into something that is already paying dividends, C., Rexpsvinte, Texx.: Motor Wheel, Ci Motors and Liggett & Myers B are dividend payers, making fair returns on market prices and on your prur- chase prices. It is prudent to hold them for the time being. Electrie Power & Light reports a substantial surplus after allowing for pfd. dividend, but hardly enough to warrant a payment on common. ‘The com- pany is expanding and is under the effective supervision of the Electric Bond & Share Co. In the long run the ares should have much more value than at New York, Feb. 26, 1927. Free Booklets for Investors The 8 per cent. mortgage real estate bonds offered by The Trust Company of Florida, Miami, Flori mature in from 2 to 8 years, and are secured by incom producing buildings and advance monthly payments collected from borrowers. The Trust Company is under State supervision and has resources of ov $500,000. ‘The bonds may be bought on partial pay- ments. A. booklet (204) containing full particulars will be mailed by the company to any address. “Before You Invest,” a booklet issued by the Milton Strauss Corporation,’ Penobscot Building, Detroit, Michigan, illustrates’ the requirements of the corpora- tion's first mortgage real estate offerings. It also serves asa guide in the selection of future first mortgage bond investments. It shows how to analyze such securities and to determine whether they have the proper amount of safety and whether earnings of bonded properties are sufficient to meet promptly all payments of inter- est and principal. ‘The corporation will send this book- let to any interested investor. 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. It 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 coupon today! 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. -..---. 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 comicbooks.com