Evening Star Newspaper, December 14, 1921, Page 29

. 1921 7 ; FINANCIAL. 929 FINANCIAL. THE EVENING STAR, WASHINGTON, D. €, WEDNESDAY, DECEMBER 14, . GOOD DEMAND FOR LOCAL SECURITIES Investors Favor Shares. Heavy Liquidation of Bank Loans Proceeding. BY I A. FLEMING. There was a good invesument de- mand for local stocks on today’s ses- | H slon of the Washington Stock Ex- change. Traction shares sold at 91 ex-dividend, Rallway preferred at 63% to 6313, Mergenthaler at 1285 and Lanston at 71% to 72. Federal National Bank brought 174. Bonds were rather slaw, Washington Gas 5s, 911 45, 65; Cnesapeake ana 91. Potomac 78 were held and 104 was bid. Liquidation of Loans. Reports filed by leading banks mak- ing weekly returns to the Federal Reserve Board show that liquidation is progressing a little more slowly than earlier in the fall. Comparing total loans and discounts on Novem- ber 30 with October 26, liquidation for shares et G, Railw: Toais, tou at the flve weeks totaled $86,034,000, while for the period September 28 to October 26 liquidation totaled $151.- 000,000. From January 7 to November 30, re- porting banks reduced their loans by $1,968,300, and as a result they made very large inoreases in their hold- ings of bonds and other investments. January 7, 1921, the yeporting banks had $869,000,000 of loans secured by government obligations, this being reduced by November 30 to $521,855. November 30, the banks held $91 369,000 of government bonds as in- vestments compared with $878,177 the first of the year. ‘War paper as security for loans in the twelve regional reserve banks de- creased from $1.104,536,000 January 7 to $521,885 by December 7. Bankers differ greatly on the proba- ble date at which the borrowings of merchants will start an increase in the loans, although the great re- duction in merchants’ inventories may start them buving almost any time in the near future. Bankers’ Reception. A reception was tendered by the District Bankers’ Association to the officers and administrative committee of the American Bankers Association at the Racquet Club last night. ere were no addresses, just an informal exchange of interviews and an enjoyable social gathering, after the introductions had been exchanged. A buffet supper was served. Today the visiting bankers con- tinued their round of visits to gov- ernment officials, heailds of depart- ments and bureaus. Tonight in the Fairfax room of the New Willard they will entertain officlals of the local association and other guests at dinner. Their three days’ visit will end with today, and the bankers will return to their homes, Thomas B. McAdams, president of the A. B. A., to Richmond, and others to points all over the country. The visit has marked the rap- prochement between the A. B. A. and the administration. Long-Term Borrowing. There is some talk in banking cir- cles over possible long-term financ- ing that may be undertaken by the Treasury Department early next year. If the present ease in money con- tinues, Secretary Mellon may decide to refund a big block of Treasury certificates. It is not believed that he would undertake anything under $2,000,000,000—a loan that would have an important effect on the investment market. Willlam H. Haney was yesterday elected a director of the Potomac Sav- ings Bank, filling a vacancy caused by the death of Peter J. Clarke. ‘The full directory for You Never Charge Off Depreciation on an Investment in First Mortgages They Mean Absolute Safety, earn 1% and require no attention Shannon & Luchs 713 14th Street Main 2345 EQUITABLE Orn-l-‘e-lfii‘:t Results —Join the Equitable and save system- atically. Then you will establish & fund to make a deposit on a home. Subscriptions for the 82d Issue of Stock Being Received Shares, $2.50 Per Month 4 Per Cent Interest EQUITABLE BUILDING 915 F St. N.W. JOY EDSON, President DE. " Secy JOHN FRANK P. REESK Samuel Ungerleider & Co. Brokers New Willard Hotel Messanine Floor James Sloan, Jr., Manager New York Stock Exchange Pittsburgh Stock Exchange Chicago Board of Trade Telephones, Main 3364-3367 Leader-Nows Bldg. Cleveland, Ohio Chamber of Commerce, Columbus, Ohio J. S. Bache & Co., and Halle & Steiglitz New York Correspondents 1922 was| i | I Private wires to i | A. A. Housman & Co. elected as follows: Willlam W. An- derson, Samuel Artz, A. M. Baer, E. M. Bogley, B. A. Bowles, D. B. Elgin, W. H. Haney, George W. Offutt, George W. Offutt, jr., Henry W. Offutt, M. Wilson Offutt, Dr. A. M. Ray, Dr. M. J. Ready, J. W. Stohlman and B. B. ‘Weaver. The Potomac Savings Bank h eavings of distributed Christmas $250,000. Fred N. Shepherd, formerly man- ager of the field department of the United States Chamber of Commerce, has been chosen executive manager of the American Bankers' Associa- tion, succeeding Guy E. Bowerman, who has held the executive position for y years. WANTS TAX ON CAPITAL. NEW YORK, December 14.—William 4. Willlams, financier, has prepared a disc on of the government income tax situation in which he suggests at tax based on capital rating rather than a tax on income rating. -He yoints out that through his_plan of taxation the initiative of individuals of business creative genius would not be dampened as in the case of the present method of taxation and that the government in turn unquestion- ably would realize a greater share of profies resulting from business ac- tivities than is possible at the mo- ment because of activities on the part of individuals and corporate interests in the matter of reducing their gov- | ernment tax commitment’ to a mini- mum. —_— SERVICEABLE GOODS FEATURE NEW YORK, December 14—With holidays close at hand jobbers and re- tajlers are experiencing the annual last-moment rush of buyers. Their demands appear to run for serviceable goods almost to the exclusion of nov- elty gifts. Hosiery, handkerchiefs, gloves, scarfs and similar goods are forming the bulk of holiday purchases. An encouraging feature of the holiday trade is the number of advanced orders for spring coming in. Stocks on re- tailers’ shelves are smaller now than | they were a year ago and that condi-: tion is the basis for the estimate of a revived spring trade. This is particu- larly true in the wash goods and ging- | ham lines, dealers reporting receipt of a large number of advanced orders. AR s Jewelry. NEW YORK, December 14 (Special). —The jewelry stores in the fashion- able shopping district report collec- | tions much better in the last two, weeks, but many are still making heavy discounts for cash. Hugh S. Bird H. Randolph Bird M. P. Drain Bird & Co. Brokers Stocks 0dd lot specialists Bonds 821 15th St. ‘Telephone Main 3160 and 3987 Direct private wire to Ogden D. Budd & Co, (established 1885) mem- bers Consolidated Stock Exchange of New York. | Harrvan &Co. ‘\ New York Stock Exchange 111 Broadway. New York ‘Washington Office COLORADO BUILDING Telephone Main 1603 G.B.Chipman Manager n Reorganization of- Missouri, Kansas & Texas Ry. Co. is discussed with Special reference to the New Adjust- ment Mortgage 5% Bonds in current issue of our “Securi- ties and Commodities Re- view.” Copy sent upon request. principal cities. New York Stook Exchange New York Cotton Exchange N.Y. Coffee & Sugar Exchange New York Produce Exchange Members Washington Office MAIN FLOOR CORRIDOR, ‘WOODWARD BUILDING Telephone Main 2040. CHARLES R. ALLEY, Mgr. . Cleveland Stock Exchange Columbus Stock Exchange of fast work by the same company was the recent cabling of Lord Northclife's speech at Vancouver to London, Eng- land, at 11 a.m. and appearing in the afternoon issue of the Times the same TAX COST ON TRAFFIC. NEW YORK, December 14.—Indica- tions as to the effect on the private pocketbaok of the repeal of federal transportation taxes, effective January |day. ;.o :‘D‘ZJ are t:‘xm'n ;’-‘J g.ure- onhtnn-- e lon (] throug] the Southern Pacific Company since Jan-| NOVEL RAINCOATS SHOWN. pary 1, 1920. The tax payment on| ngw YORK, December 14.—Novel freight' on Southern Pacific lines in 1920 was $3,174.042, and on passenger traffic, $3,538,102. ~The freight tax payment {n the first eleven months of 1921 was $2,781.835, and on passenger traffic, $2,978,057. The total transpor- | tation tax paid by the company in the twenty-three months was $12,472,086. raincoats for children, designed both for girls and boys, are on the market. They are made of tan double-texture bombazine and art guaranteed water- proof. All seams are stitched, cemented and strapped, and the coats, in sizes six to sixteen years, sell at $3.50 each. Their novelty lles in the fact that the models for both sexes have convertible hood collars. When worn as a collar there is no indication that it can be converted into a hood, yet this is done by simply turning it inside out. The boy's coat has a peak on the hood. which ‘makes it look like a cap from the front, while the hood on the girl's coat is of the bonnet type. —_— Australia leads all countries in the number of her woman justices. CABLE MAKES RECORD. , KINGSTON, Ontarlo, December 14. —To send a cable to Liverpool from here and have the answer back in three and a half hours is_the rather unusual experience of the Kingston Standard. At 10:10 a.m. the Standard sent the cable via the Canadian Pacific Tele- graph Company and at 1:45 p.m. an answer was recelved. Another example Capital and Surplus $2,000,000.00 7 Begin an Interest- Earning Account in This Old Bank This Payday —and you will have made your- self a Xmas gift of supreme po- tentiality. {] Conscientiously added to, such a Xmas fund will soon become a size- able sum that you'll find a means to further enrichment through careful investment or employment in busi- ness. 27" Initial Deposits in any amount are welcome at The National Savings, which serves over 41,000 patrons OFFICERS WILLIAM D. HOOVER ‘WOODBURY BLAIR President First Vice President Second Vice President Trust Officer .Treasurer .Secretary sst. Treas. National Savings & Trust Co. 55th Oldest Savings Depository in Washington | Year Cor. 15th and New York Ave. 12 EUROPEAN BONDS Government and Municipal Price $980 Value $19,748 (at Normal) E specialize in offering groups of Govern- ment Bonds and Municipal Bonds of the leading Governments and Cities of the World. Not only are the bonds themselves selected from Government and Civic issues giving the greatest safety of investment which the best bonds of the World afford, but, for the sake of the very maxi- mum of safety, we diversify the countries se- lected, to an extent not usual among American Investment Bankers but long followed by the great English Banking Houses. The safety of investment afforded by both Allied and Neutral Bonds combined is sslf-evident, and the profit they afford at normal, namely, a profit of $2,352.68 on a total investment of $980, is sufficiently important for the investor to consider without regard to the third group at all. The Allied group includes the Government obligations of England, France and Italy, whose bonds for genera- tions sold at yields of two and three per cent. The .Neutral countries, which were not subject to the finan- cial strains of War, grew remarkably rich in liquid resources and increased bank deposits, through selling to the warring nations home products at tremendously inflated values. dt is entirely due to the present dislocation of all foreign “eéxchange that these Government Bonds can be pus- “chased, temporarily, at so large a discount. History shows that foreign exchange always becomes stabilized, at normal rates, through the flow of com- merce between the nations of the World. The present yield on these bonds is fractionally over 59%. It is reasonably to be expected that this income yield will gradually increase to from 12% to 15% as exchange returns towards normal, counting on Allied and Neutral Bonds alone. We cash the interest coupons for our customers without charge for this service. These 12 bonds are listed on all of the important stock exchanges of Europe and have a ready market in this country. They are legal invest- ° ments for Savings Banks, Trust Companies and Trust Funds in the countries of issue, st Circular SX-981 on Request Established 1884 Melhuish & Company 41 Wall Street New York Washington: Union Savings Bank Bldg. Telephone: Main 3898 ' Brenches and Correspondents tn Principal Cidles YOUR $ Invested in Our % First Mortgage Notes Money to Loan ' o eaiing. tasesos st commissonr Joseph I Weiler B [ E. H. Rollins & Sons 416 Woodward Bldg. 15th & H Streets Washington, D. C. Phone Main 2027-2028 $5,000 Life Policy, $57.35 A M. LE ROY GOFF, Insurance Adviser oo €10 Wosdward Sutiiise. M. 340, LIBERTY BONDS = BOUGHT FOR CASH. | iLiberty Bond Exchange 604 14th Street N.W. Attention, Builders Connecticut Matual Life Insurance Co. Old, Strong and Reliable Thin wax the first Company to rdopt the 3% reserve Basis, by sixteen years. ‘The most rigid basis in use ivday. ’ E. D. Sampson, General Agent 1125 Weodward Bullding Is Always Worth a $100, $250, $500, $1,000 GEO. W. LINKINS Bt Bost. Ne hiladel; 1719 K Street The watiomal Morigucssag Taveaiias Cor '[Woney fears “Deaver san ‘Franciste lon In market to purchsse Second “In Business Since 183" Brast “Bort ores an. toprved Reet e | IR Any Sum 2 i, papes Comhry: et s mocred 'ty y Canadian Bonds peyab Deeds of Trust ve wadinded interests in Real state. NATIONAL MORTGAGE AND Our connections {ocally and in other cities enable us to fur- nish money in any amount for Washington Real Estate En- Provincial and Municipal Issues at prices to yield from INVESTMENT CORPORATION | terprises. 51/ 7 to 6% . /0 LOANS Semvbury ‘Blag Stone & Fairfax Send for :m of Offerings M-308 1342 N. Y. Ave. If you shave money to in- vest we can safely place it on gilt-edge first D. C. Mort- gages. Our record of 30 years insures your protection. Cour- teous treatment. Percy H. Russell Co. S.W. Cor. 15th & “K” Sts. Open Until 5:30 P.M. Tomorrow Availability of Holiday Cash {The best means of insuring funds for Christmas or any other special need, or for emergency use, is sim- For Xmas ply through SAVING—systematic why not saving. opena fSalt away as many dollars as you i -l poor can spare EVERY PAY DAY, ina savlngs l strong lold ba:k, such as this, and Account you’'ll always have ready cash when nves'ors you need it. for that Some people save money diligently. boy of yours? They watch the pennies, and yet they em way to get ahead, ..The ly known eter Perkins book, Getting Ahead.” is @ gripping story thai y0a more about thls vital subject. By all means read it. Write for a copy TO- DAY. We will send it to you FREE. Tear this ad oat, write your name and address in margin, mail to as. KRIEBEL & CO. | Investment Securities Dept. 19060, 137 Seuth La Safle St., Chleago National Metropolitan Bank Capital, Surplus and Undivided Profits Over $1,500,000.00 15th St., Opposite U. S. Treasury—107 Years Old et ahead siowl. To them, saving i ; & 8Radrery. it a hard Rrindihat scce {Washington's OLDEST 1 will do it never to end. What they save they : o Dut away at It or 5o return. National Bank pays It takes a wealth of grit to stick to i catrcies: chbey e i 3 'r miserliness Stitwolatrms sl inheie. 3% on Savings the way lhor -n‘uimth;nnned promo- ters. are disastrous. | 2sss | ke S r 2}_""”‘“‘:5‘2’3’{:&?"'“’“’;&;‘? OFFICERS: ARTHUR T. BRICE C. F. n'os 4 Horts, Ambition never lags, No ik GEORGE W. WHITE. ...President WALTER BEOWNLEY %K EaZirox some drudgery. Profita stimuiate your 0. H. P. JOHNSON. ice President Sopor SIC Do O. FAUST P n RILLLY SIDE T e aod wardloflipebeich C. F. R. OGILBY.. Trust Officer JOKX B HENDERSON T. LAWRASON RIGGS The Kriebel Plan combines savin, C. F. JACOBSEN ...Cashier 0. H. P. JOHNSON HPREERT T HANNON and investing, It makes thrift one LES M .Auditor ~EUDOLPH KAUFFMANN H. C. SHERIDAN OT et atinating experinces Y on J. GALES MOORE Dr. J. THOS, KELLY, Jr. CHAS. G. SMITH. Jr. Tet nothing interiere with yous bpsncsal CHAS. E. BRIGHT..... Asst.Cashier A LISNER i WALTEE R. TUCKERMAN piosrsse cg::":l:gli‘n!‘fl‘::z Kriebel 1 ALBERT H. BEDFORD Asst.Cashier ~ TOWNLEY 4 McKEE T 5 inue with it. 3 g evidence, you'l .,mt'g,il‘,;:;::&s C. LOUIS ECKLOFF... ,.Als.(.ca:h(er ? ur investment in high grade . i I listed stocks and bonds. It's the mod- I Safe Deposit Boxes Open at 8:30 A.M. Every Business Day Trust Dept. ‘ $3,000,000 Godchaux Sugars, Inc. First (Closed) Mortgage Twenty-Year Sinking Fund 7/2% Gold Bonds 7 Dated December 1, 1921 Due December 1, 1941 Coupon bonds in denominations of $1,000,$500 and $100. Principal and semi-annual interest (June 1 and December 1) payable in New York and Chicago. Interest payable without deduction for Normal Federal Income Tax not in excess of 2%. Pennsylvania four mills tax refunded to resident holders in Pennsylvania upon application to the Company. Mr. Charles Godchaux, President Godchaux Sugars, Inc., has summarized the information with respect to this Company as follows: HISTORY AND BUSINESS—The Company is the largest producer of sugar cane in the contin- ental United States, having under cultivation approximately 17,000 acres out of a total of 37,300 acres owned. The Company owns also three sugar factories with an aggregate daily grinding capacity of 5,500 tons of cane; also two sugar refineries with an aggregate daily ca- pacity of 1,400,000 pounds of refined sugar; 63.82 miles of railroad equipped with sixteen loco- motives and 790 cane cars. The Company is in the unique position of being planter, manu- facturer and refiner, covering every phase of the sugar business, including the refining each year of large amounts of Cuban and Porto Rican raw sugar delivered to the_Company through the Port of New Orleans. SECURITY—These bonds are secured by a first mortgage on the entire property of the Company, having a replacement value (after depreciation) of $9,387,400, or more than 300 per cent of this bond issue, as shown by the report of the American Appraisal Company. The Company’s business ;lfl! established in 1868. Good Will, Trade Names, etc., are carried on the balance sheet at $1.00. EARNINGS—The business has shown a profit from operation in every year since 1890. During the fiscal year ended June 30, 1921, the audit reveals an operating profit of about $1,000,000 before interest, taxes, depreciation and inventory adjustment. The average net earnings given below for the periods ended June 30, 1921, are those applicable to depreciation and Federal ‘Taxes, but after interest charges % Average net earnings for seventeen years. .. $528,884 Average net earnings for twelve years 5 584,062 Average net earnings for seven years. w0 841,249 Net earnings for the six months ended June 30, 1921, applicable to interest charges, depreciation and taxes.. 481,765 The annual interest on these bonds requires. .......... 25 225,000 CURRENT ASSETS—The Current Assets of the Company, as of June 30, 1921, were $4,305,664, or nearly three times Current Liabilities, after giving effect to this financing. Inventories are on the basis of cost or market whichever is lower. SINKING FUND—The mortgage provides for a semi-annual sinking fund, beginning June 1, 1922, sufficient to retire the entire issue of bonds by purchase’in the market up to the following figures (if not so obtainable then by call, by lot): 110 for the first five years; 107% for the next five years; 105 for the next five years; and102% for the last five years. The bonds are callable, but only as an entire issue,«t 106 and accrued interest. . GENERAL—The history of the Company’s operations presents an unusual record of success. It will continue under the direction of the same management which has been responsible for its position in the industry, and should show increasingly profitable results from its large and strategically located properties. Chapman, Cutler & Parker, of Chicago, and Messrs. Milling, Godchgux. All legal matters have been under the direction of Messrs. byt &7 buildings, railroads and equipment have been valued by the American Saal & Milling, New Orleans. The Company’s sugar factories, p raisal Comp::;. and the West India Sugar Finance Corporation, of New York City; the lands by the firms of C. A. Tessier & Son . and Freeman & Freeman of New,Orleans. ‘Audit by Messrs. Lovejoy, Mather, Hough& Stagg, Public Accountants, of New York City. Price 98% and Interest, Yielding about 7.65% These bonds are offered for delivery when, as and if issued and received by us, and subject to approval of :.unul Temporary bonds or iriterim receipts later exchangeable for dod;u'fln bonds will be ready 3 for delivery on or about January 2, 1922. { A.B.Leach & Co.,Inc. 7 New York Chicago Boston Philadelphia Cleveland % Ames, Emerich & Company P.W. Chapman & Co., Inc. ‘ New York Chicago Milwaukee Kansas City New York , Chicago The information und figures wsed in this'sdvertisement are”taken from sources which we consider trustworthy, and, while not guaranteed, they have been relied upon by us in the purchase of thess securities for our owa accoust. um.(“mmmmauhummwu-mum