Evening Star Newspaper, June 30, 1925, Page 27

Many First-Class Investments | Offered for Remainder of Year Financial Expert Sees Yields High With Safety—Also Warns of Special Risks. BY GEORGE T. HUGHES. 8pecial Dispateh to The Star. NEW YORK. June 30.—TInvestors with July interest and dividends for which to find employment are con- fronted with an entirely different sit- uation than anything existing in the past decade. What are the outstanding facts about the present market? In the first place, United States Government bonds, that is, the post-war issues, ling at approximately the high- es on record. Some of them, hotably the long term Treasury honds, are quoted actually at the st prices for which they ever No United States Government ity can be had to vield 4 per and the third 414 Liberties give only something like 31; per cent. The general bond list is at the high- est since 1917 and in many instances individual issues are higher than they were eight years ago. This means that buvers at the present level have to take a smaller income than they could have secured with equal secur- ity in any other year since that time. Future Money Market Vital. The question then arises as to the proper course of the investor with conservative tendencies. Shall he buy honds at these prices or shall he in- <ist on a higher return at the sacri- fice of quality? The answer to this question depends upon the view taken of the future of the money market. Bonds of the very highest grade fluctuate with money rates. When money is low bonds are The greater number want, if not price appreciation in their holdings, at least price stability. Now as to the outlook for money, all that can safely be said is that the banking community does not see any immediate prospect of higher rates. If they did they would not be buying Government bonds at progressively advancing quotations. The SBecretary of the Treasury, who has proved him- | self a shrewd judge of the money mar- | ket, only the other day offered a one- vear Government certificate-issue car- rying a 3 per cent coupon and the offer was oversubscribed from three to four times. The weekly statements of the Fed- eral Reserve banks show that the credit facilities of the system have barely been touched. It will take a great deal of business activity to make any serlous impression upon these un- used reservoirs. The conclusion which seems justified is that while further advance in quotations for prime bonds does not appear probable, neither is there any probability of any substan- tial decline. Stock Prices Comparatively High. So much for the man who must have only the best. What about those who are willing to take some risk in their Investments? The general level of stock prices is high. or at least it is high compared with standards of the past. Some argue that the great growth of the country in wealth and population justifies still further ad- vances in stock quotations. Probably that is so in individual cases, but it THE EVENING STAR, WASHINGTON FARMER BUREAU JOINS groups of securities in which there has been nc substantial advance and which combine a reasonable degree of security with a fairly high return. The two are, first, the preferred stocks of the publls utilities, chiafly the electric light and power com- pnanies, and, second, the foreign bonds. Taking up the former first, every one knows that there has been enor- mous speculation in utility stocks, forcing quotations up to heights where income. return at prevailing dividend rates is very low. Opin- ions differ as to how far this spec- ulative enthusiasm has been justi- fled. Fortunately, we do not have to pass upon that phase of the mat- ter. For while all this buying of the utility common stocks has been going on, the preferred issues have been neglected. Some Investment Bargains. The reason is that these preferred §tocks offer only a minimum of speculative possibllities, and so trad- ers have left them alone, while, on the other hand, the old-time conserv- ative bond buyer shies away from anything denominated as stock, pre- ferred. or otherwise. The result is that from 6 to 7 per cent can be had on these utility preferred issues almost universally. Here, then, is a field which the July investor can ill afford to overlook. Some of the best bargains are to be found in utility preferred stocks which are unlisted and of only local distribu- ton. - They are available in nearly every section of the United States and may be bought as readily in small lots as in large. Casual examination of the stock exchange list will reveal similar opportunities in obligations of com panies with a national reputation. Risk Greater in Foreign Bonds. The second field, that of the foreign bond, must be cultivated with more discrimination. Greater risk is en countered here than in the public utility preferred stocks. This risk is not financial or economic so much as it is political. Nevertheless, there are good grounds for belleving that the market price overestimates the risk. It is not advisable for the ‘investor with small resources to buy these ern Europe, neutral in the late war, wlil look very cheap. Nor should South America be ig- "TUESDAY, Tescara put i Soutn ameriean oon. | WAR ON HIGHER RATE gations in the same class. This is a great mistake. They vary in merit just as do the bonds of European countries. It requires study and ex- | Maryland Farmers See Hardship in pert advice to pick the good ones, but they are there and the yield on them is very high. Mortgage Bonds More Popular. should be mentioned~that is, the real are available in this group. But these Any Advance in Transporta- tion Charges. Perhaps one other kind of security ) Special Dispatch to The Star. | BALTIMORE, June 30—The Mary-| et estate mortgage bonds. High vields(land Farm Bureau Federation has|3$9,715,3! jommed forces with the Chamber. of [Of 1925 the deficit was reduced to JUNE 30, 1925, ern Shore and it involves the saving of thousands of dollars to the shippers in that section. It means, they say,an Increase In the class rates and not in the commodity rates, and that the class rates include a big majority of iteras recelved or shipped by farmers and others. SR g MAY DEFICIT REPORTED. NEW YORK, June 30 (#).—The Rock Island ldnes had a deficit of 783,644 for May after charges, com- pared with a deficit of $819,996 in May. last year. Gross revenues were 385. For the first five months cannot be bought without discrimina- | Commerce of Salisbury, Md., and other | $619,334 from $614,716 a year ago. tion either. There has been a tremen- | organizations on the Eastern Shore dous expansion in this feld, and com- |in a fight to prevent transportation petition between the houses selling |companies from putting into effect a thege mortgage bonds is now intense. | higher schedule on all charges on all The buyer must examine carefully, |freight shipped and received under not only the reputation and record of | what i3 known as “class rates.”” The the offering house—that is essential— | case is now pending before the Inter- but the nature of the security. If he is | gtate Commerce Commission nt Wash- well advised and uses due precaution |ington. According to officials of the Farm desirable investments may be secured in the real estate as well as in the util- [ Byreay, “the class rates” case is one ity and foreign fields. (Copyright, 102 of vital interest to every farmer, mer- ) chant and manufacturer on the East- Certain death to eve SPRAY IMPROVED DETHOL. Made by a wonderful new secret formula. Bugs can't dodge it. The deadly mist gets into crevices. Drives the pests out. Another spray or two— they die before your eyes. Spray IMPROVED DETHOL. In the kitchen. Inbedrooms. IMPROVED DETHOL will keep your home free from all insect pests. Simple—Safe— Sure. BUG! NEW OFFICERS SLATED FOR VIRGINIA RAILWAY Transfer of Richmond Property | Completed—Several Former Directors Retained. Special Dispatch to Tho Star. RICHMOND, Va., Jun announcement of the directing heads of the Virginia Rail d Power Co. will be made late | but the principal changes have | messengers a steel vest has been ir already been made known. way tod: change in_the properties owned by the Stone-Web ster syndicate in Texus, will be the president, and W. E. Wood, formerly of Houston, Tex., identifiad_with the Stone-Webster concern, will be come the general manager of the con cern here These changes are effective Wed resday. The old officers, following confirmation of the sale, tendered i gnations to the management of the Gould properties in New York e of the directors, bu To prevent robberdes from ban! Luke C.|vented to hold bundles of money and Bradley, formerly connected with the | securities g f One-Fourth Reduction CLEARAWAY Only twice a year is an opportunity extended to secure quality clothing at such reduced prices. Make your selection today at Sidney West's Semi-Annual Clearance 3 and 4-Piece high and vice versa, when money is|would be unsafe to accept it as a gen- | high-vielding foreign bonds simply be- high this kind of bonds go down in | eral rule. g cause he is unable to use proper di- market price. Observe that the fac-| Junior bonds are likewise compar- | versification. Tor of safety does mot enter into the |atively high. Hardly a well secured| Men of larger means, however, will prob It is taken for granted that | obligation of a prosperous railroad |find here an opportunity which ought safef 1d 6 per cent. Only|to prove profitable. It is not neces. )+ one who is not concerned about | in the industrial list, where there|sary to take the obligations of the \N\?“‘o market fluctuations in his securities | is great irregularity corresponding to|newly formed countries of mid the problem is simple. He can simpl the conditions in trade and industry, rope, although some of these are biek from the same class of securities | are higher vields to be obtained. In|attractive. If comparison is made 14. nof- satisked with T he hus always purchased and be con-|a word, neither second-grade bonds [with the prices at which their govern EALIg Tor your mmecr Races Tiatl s, Sees Bt fent with the small return. Such in-|nor common stocks look cheap. ment bonds sold in pre-war times the 75c, Quarts, $1.25: Gailons. $4.00. Combination package containing vestors, however, arc he minovity. | There are, however, still left twolobligations of the countries of North Dint can and sprayer, $1 0%, Dethol Miz. Co., Inc., Richmond, Ve A OXOROICIOROROT OX O ORCRCROROROROE R DR CHOIOACHORORCIOR R TS Who Can Measure the Health Value —of AUTOMATIC OIL HEATING in dollars and cents? The exact, uniform temperature main- tained as opposed to the health-endangering un- derheating and overheating of older methods? And not only that, but the mental satisfaction of having adequate, safe, clean heat without worry, without drudgery, without attention at all. Spring and Summer SUITS Formerly NOW Formerly NOW 5. 262" | 40. 30 E B | R 86. 4> | 60. 45" 65. 4875 | 70. 5250 75. 562 * 85. 637 Linens and Tropicals not Included Stein-Bloch suits included. Patterns, fabrics and styles of distinction—in all sizes. Be the first to arrive while lots_remain unbroken and complete, ssured. can be had to X0 3030 & OXOXOTOS & OXO, Associated Members And Recommended Burners When Better Automobiles Are 2030 < G. & H. Heating Co. “0il-O-Matic”’ 917 H St NW. ~ Telephone Main 4886 Kleen-Heet Sales Co. “Kleen-Heet” T 1013 12th St. N.W. Telephone Main 7885 Mutual Service, Inc. “Gill” 1411 N. Y. Ave. NW. Telephone Main 3883 Ray Fuel Oil Burner Co. “Ray” % O3 & ‘A Significant Fact Physicians everywhere endorse Automatic Oil Heating. Locally, and throughout the country, the high percentage of doctors that have turned to this modern device for the heating of their own homes and offices will surprise you. F0X0%03 < The marvelous Convenience of Automatic Oil Heating unquestionably carried weight with these doctors. Likewise, the superior Cleanliness, Flexibility and Efficiency. But to these men the factor of Health was an all-important added advantage. They saw in the steady, even temper- ature, automatically maintained, one of the most effective preventatives of the common Winter colds and other sick- ness. % g ] ] 2z g & Telephone Potomac 160 Standard Engineering Co. “Caloroil” 2129 Eye St. N\W. Telephone West 1343 The Federal Heating Co. “A.B.C” 310 13th St. N.W. Telephone Main 4140 Zellers & Co. “Aetna” 2035 K Street N.W. Telephone West 858 Automatic Heating Corp. “Nokol” 1719 Conn. Ave. N.W. Telephone North 627 Ballard Oil Equipment Co. “Ballard” 1745 Conn. Ave. N.W, Telephone North 659 uestion: Whyssit that there ‘are more than a million Buicks in OIOXOS OXY An ounce of prevention is worth a pound of cure. To make certain you will have an Automatic Oil Burner by Fall, act N-O-W. Ask an Associated Dealer for the facts. No obligation. 124, G R @P? Because Buicks are always popular -with new car buyers and also because Buick’s de- pendable construction results in a much longer life for Buicks than is ordinarily the span of service of a motor car. _ Associated 'Oil-Burner Dealers of Washington Biggs Engineering Co. “Electrol” 1310 14th St. N.W. Telephone Franklin 317 " Buick Motor Company Division of General Motors Corporation WASHINGTON BRANCH Telephone Franklin 4066 Fourteenth and L Streets N.W. OXOXOXc O O OO