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Show HOW "CONVERTIBLES" CHANCE IN VALUE Chino s proposed financing directs attention at-tention to tha peculiar qualities of the mining convertible bond. The Ingenious ! combination of security and speculative possibilities surrounding this class of bond Itself. as typified In the better known railroad and Industrial convert-lb convert-lb lea-Is realty improved upon In some of the rnln In issues, say the News Bureau- i Where the railroad convertible Is more often then not a debenture. In the mining min-ing contingent It is generally the best security tire company can offer a first mortgage on ail property. Of course. In the final anatvsla the investment merit of. the convertible, whether mining, railroad rail-road or Industrial, depends upon the strength of the Issuing corporation. It is in Its speculative potentiality, however, that the convertible bond make Ita strongest appeal, to which must be credited the universal favor which these bonds now enjoy. And probably nowhere does this speculative element enter more rromlnent!y than In the bond of tha mln-ng mln-ng company, tha stork of which ss a class Is subject to relatively sharp and rapid movements. The price of the bond currently exchangeable Is Influenced bv the price of the stock Into which It la convertible. But while the bond will follow the stork on a decline no lower then a pofht where It sells on an Investment Invest-ment r.ls. shouuld Hie stock move upward up-ward the bond Is certain to follow faithfully faith-fully sometimes to a lofty height. An Interesting Illustration of thla la seen In the action of Artsona Commercial 's In 1W. On September 34 of that year the bonds sold at 100, netting an investment in-vestment purrhaaer at maturity considerably consid-erably less thsn nothing. In other words, the honds being due in ltl. the Investor would actually lose money on the amortisation amor-tisation of the premium by maturity. The bonds on that date were on a practical parity with the stock, however, which sold at around 47. one tftOO bond belnK exchangeable Into twenty shares of stock at par (I2M. At present price of 91 the bonds are on an Investment basis A similar rise In prloa sometimes or eurs in other thsn mining Issues. General Gen-eral Electric debentures, for example.) which are convertible at par, recently touched 1J following an advance In the stock. To make profitable conversion of Chlno bonds the stock on July 1. HI!, or thereafter, will have to aril a point or more above present Quotations, save In an Instance where the bonds ara purchased pur-chased through "rights." when the stock will have to sell enough above par to cover coat of the rtghta. ' |