Show AUTHENTIC STATEMENT special to THE BABSON DISCUSSES PHEp AniNG ron iron WAR WAH f PA PA pa MASS my ideas on U the international situation we been covered in the lost last two tw weeks I 1 especial ly refer to the th reaction of oth ft er countries coun trion to th IJ 19 2 spy incident w particularly those countries in which we w bave bases so an he e subsequent collapse of th tha con ference I 1 now want to ug mug gest what conservative hinves tors will take into considers con sidera tion in preparing for pr a cott con cold and aird a colder war between rus rug sla and the united ui n heil tates what should be B don about with few exceptions e x most investors investor will think it risky to buy equities at this tinie time money in the bank will appear to them hem t better just than stocks or possibly ed real estate it looks as if 11 mr khrushchev may be call ing a turn in the bull market it Is a good time to take ad vice from some banker var or an investment whom you have faith sensible people will not get panicky and rush either to buy or sell stocks wt will OW afe to avoid uli unnecessary necessary borr worry thera ther 0 no war this this year bonds may be a good purchase at least they will give good security perhaps better than good stocks will give of course some people will ad vise against buying bonds for fear of 0 inflation Ilo however wever I 1 believe that inflation has been anticipated for the time being by the consider considerable aple discount at which bonds are selling this discount has primarily been due to the increase in money rates ariese leso higher money rates however have bew been largely oft by the discount 4 11 at 4 which mapy good bonds arv are selling tj you haye have any doubts compare their current yfem ith the me yields I 1 on god stocks jl A few bond leond illustrations american telephone and Tele telegraph grooh co 2 coupon due du 1986 these are telling selling around 72 and yielding about chicago rock island and pacific railroad ava coupon dute due baad laad chete are selling around 75 and yielding about northern pacific railroad company 3 coupon due 2047 these are selling around 60 and yielding about 5 00 commonwealth E edison d I 1 a 0 n company 2 coupon due 2001 these are selling around TO 70 and yielding about 4 10 cleveland electric illuming sting attig company 2340 2 coupon due in 1885 1985 these are selling around 71 and yielding about the above examples include the leading telephone corn pany two railroad companies and two excellent utility corn com panics Pers personally nally I 1 would rather buy the bonds bonda of an electric power company which serves smaller mailer communities comm unlUe than one which la Is primarily located tn in a large city that might be bombed in case of world war III As A investors investor usually buy bonds bond to keep for a considerable length at time it Is well to give some consideration to the he possibility that world war III could start before most moist good bonds mature other attractive considerations the properties of the telephone phone company and also of c ertain certain railroads are so well diversified over large areas and in many cases own such valuable mineral and oil rights that they should be at possibilities for investment even it their terminals were temporarily disrupted or even destroyed dea troyed they would be quickly restored A hence I 1 again cite the american telephone ond and telegraph and the northern pacific bonds as offering excellent security and add as further impartial examples a number of 0 other railroad and tty ity issues these are listed according to moodys moods rating by which most banks rate their bonds all ere are selling belling at substantial discounts from par american tel tel as of 1986 illinois dell bell tel as of 1981 1081 vacuum ivis ot of 1976 southern dell bell tel 2349 23 of 1083 1005 virginian railway hallway Ss ot of 1905 metropolitan edison avs ot of 1974 niagara mohawk power s of 1080 1980 northern states power as of 1877 1117 ohio edison 28 23 49 of 1975 pacific gas electric 2 as a at 0 1981 cities service as of 0 1977 southern pacific aw of 1890 1090 and northern pacific IIA I 1 |