Untitled Page 22

Thos. H. Hubbard
The Broad-Exchange, 33 Broad Street

New York, January 28th, 1902

Mrs. Leland Stanford
Manhattan Hotel,
City.

Dear Mrs. Stanford:

You asked me to suggest some things in which you could invest and I said that I hesitated to do so because I thought other people might give you advice that would be more acceptable.

I have invested quite a good deal of money in preferred stock of the United States Steel Company and think this is a reasonably safe investment. The stock can be bought now at about 92 or 93, and pays 7% dividends. I should not, however, consider a large permanent investment in this stock desirable. It has to be watched and, while it is likely to be as good as it is now, or even better, for, say two years, it may not be as good after that time.

The Baltimore & Ohio 3 1/2% prior lien bonds are very safe and, at present prices, - say 95 to 97 - yield an interest of about 3.8 per cent. The B. & O. is heavily capitalized; but these prior lien bonds ought to be good even in case of disaster to the company, and this need not be anticipated.

Toledo, St. Louis & Western 3 1/2% prior lien bonds are also, in my opinion, perfectly good, and at present prices, - say 90 to 93 - will yield about 4.1% interest. I took part in reorganizing this property, because the P.I. Co. had, and still has, a