Evening Star Newspaper, February 15, 1923, Page 29

— . FiNANGIAL___ HE EVENING STAR, WASHINGTON. D. C, THURSDAY, FEBRUARY 15 10 FINANCIAL. | "2 | GILTEDGE SECURITIES [} o pmims o i No. 17. - | First Mortgage Notes .. o An we can safely 5 slla t on gilt-edge first Secured on Improved D. C. Real Estate B v | Appraised by Experts of 35 Years’ Experience Without a Loss i Mortgages. Our Offered in Denominations of $250 and Up A Good Investment. WILL PURCHASE Percy H. Russell Co. Sts. otherwise, First and Second Trust Notes S.W. Cor. 15th & “K” il Money to Loan o emsnuracturer mas be compeled. | Warehouse Receipts, and Make Construction Loans { Yoo R e Secured by firet deed of trust os reai esiats - & A : . i Srpauny become obrolete. T mes. [INational Mortgage & Investment Corporation)| 811 Vermont Avenue N.W. j CITIES SERVICE SECURITIES - Bought, Sold, Quoted THOS.. W. BRAHANY & CO. Investment Seemrities 510-11 Evans Building ‘Wash! en, D, C. -‘m %9 | FIRST MORTGAGE NOTES FOR SaLE 1n computing net income a taxpayer may deduct from gross income lossss incurred in his trade or business, or| “in any transaction entered into for!| Drofit,” or it from fires, storms, ship- wreck: or other casualty, or from theft. Deductions for losses are per- mitted only to the extent they are| * not compensated for by Insurance or IN DENOMINATIONS OF 800 DOLLARS AND UPWARDS 1207 Connecticat Syenue SAFETY IS ESSENTIAL. We have on hand gilt- edge first trust notes se- cured on approved north- sold or otherwise abandoned the old machinery. Usually to be deductible 48 a loss the assets upon which the loss has been sustalned must have west property. completely disappeared as a resource to the taxpayer. Moore & Hill, Inc. If a taxpayer demolishes a buflding 1420-22 H St. N.W. used in his trade or business and re- places it he may deduct the loss sus- = * tained. Including a reasonable allow- ' AB Loss-Proof ance for depreciation and salvage, if Co-Operative Building With Special Tax Free Features N looking for an investment, two things, probably have equal value in your eyes: Its safety—and its earning capacity. Qur g FIRST MORTGAGES pay the highest percentage of intercst compatible with absolute safety of prin- cipal. Gotablished 1359 Finsl f’mozlg}age Loans In Convenient: SDenominalions For Jrweslors N2 FHftcenth Street Main 6388 bullding Is not considered a loss. Ex- penditure in such connection Is an investment of capital, therefore not deductible. Losses connected with transactions “entered into for profit” mnot com- nected with the taxpayer's trade or business, must conform closely to the wording of the statute to be allowed. Tor example, a lawyer may purchase & warehouse with the object of de- riving an income from the rental; a physician buys shares of stock ‘on which he hopes to make a profit. Both . sustain logses upon a subsequent sale, which are deductible. But If either Quarter ofa Century Without a Loss any. But {f he acquires as the site of & new building land occupled by an Association Organised 1879 old building, demolition of the old Furthermore, interest payments are 43¢ YEAR COMPLETED made promptly when due. Surples .. . 91,180,880.31 Systematic Saving A plan to make saving easy— Save a little each pay day and you will be surprised at the amount accumulated in a short time. Subacriptions for the 84th Issue of Stock Being Recelved Shares, $2.50 Per Month EQUITABLE BUILDING 915 F St. NW. TORN JOY EDSON. Prestdent PRANK P. REKSIDE, Seey. We have ready for you a list of mort- gages, from which you may make a selec- tion. Whether the amount you have to invest is large or small, you want it in a security that is loss-proof. Our First Mortgage Investments have proven safe for 50 years—1873 to 1923. should gell his residence, which at the time of purchase was bought without intentfon of resale, the loss, if any, would not be deductible, because it was not a transaction “entered into for profit” Similarly, a loss connected with the sale of an automobile bought for the pleasure or convenience of the tax- payer cannot be deducted. Investors in oar current 6/2% offerings receive the benefit of special tax-free features. B. Main 2100. F. SAUL CO. 1412 Eye St. N.W. { The F. H. Smith Company, ‘Washington, D. C. 2 Without obligating myself in any way, I wou'd like to : know more about your First Mortgage Investments and : DIVIDENDS. their special Tox-Free Features. Stock ot Pay- Record. able. Naer. s Street Address ke F.H.SMITH CO. 5 Aprll 5 A:rfl FIRST MORTGAGE INVESTMENTS 1414- 1416 EYE STREET, N. W. Assoctated | Eshibitors. s Aphild st o Armour & S April 13 $25,000,000 Dutch East Indies Thirty-Year External Sinking Fund 5%% Gold Bonds Not Redeemable Prior to March 1, 1933 ANY INVESTOR IN 50 YEARS e To Be Dated March 1, 1923 To Mature March 1, 1953 Interest payable March 1 and September 1. Principal and interest payable in United States gold coln of the present standard of weight and fineness or its equivalent at the main office of Guaranty Trust Company of New York, without deduction for any taxes, present or future, of the Netherlands or of the Dutch East Indies. Coupon bonds in denominations of $500 and $1,000, registerable as to principal omly. Redeemable at the «ilon of the governmemt on March 1, 1933, and on any iuterest date thereafter, as & whols or in part, at par and aocrued interest. Sinking fund to retire entire issue of bonds by maturity through annual payments sufficient to redeem each year commencing March 1, 1934, 1-20th of the amount of bonds outstanding on March 1, 1983. These funds to be applied to retirement of bonds through purchase at not exceeding par and accrued interest or through call by lot at par and accrued interest. Guaranty Trust Company, of. New York, Fiscal Agent of the Loan MORTGAGE LOANS After All is Said and Done This Fact Remains: of a number of additional| That First Mortgages on improved Washington real estate are the safest and most satisfactory security it is possible to obtain. | —have ready for delivery a limited amount of 7% | Gilt Edge First Mortgage ||: i Investments it 2 In Amounts of $250 Up Take Advantage of This fHiheviiaseHan i Sl Hem: Part of aa amount authorised by the kingdom of the Nstherlands, under which authorization, in addition to Lll.oa vrun;‘e, l:no. 131,000,000 guilders have been issued in the Netherlands and 85,000,000 were {ssued {n January, 3, in London. The following is summarized from official sources and other information which we regard as reliable. All conversions of guilders to dollars have been computed at par of exchange (guilder $0.402). For more com- plete information we refer to circular, copies of which will be furnished on request. These bonds are to be direct external obligations of the government of the Dutch East Indies. RESOURCES AND COMMERCE the ordinary budget will balance by the end of 1925. They have buildings behind them. They have our entire organization behind them, assuring uninterrupted interest on’ principal, and perfectly safeguarding your principal. as long as that principal is invested. “A"—IT'S FREE. WILLIAM S. PHILLIPS Ask for Descriptive Booklet The opportunity to get your savings invested on a basis of 7% interest s rapidly passing. Chas. D. Sager 923 Fifteenth Si First Mortgage Investments 1409 New York Ave. Phone Main 4600 8. AKING the country as a field, the highest inter- est rates obtainable on first mortgages are to be had in those sections of the United States which are in the early stages of development, where the chance for a large rise or fall in values is great. Thus, in the South and West high rates have been the custom. But in thickly settled, established, substantial cities, low rates have been the custom. Thus, New York City mortgages pay, perhaps, the lowest rate of all. We believe that Washington is a conservative, well- established city and that chances for any great fluctu- ation in real estate values here are slight. Swartzell, Rheem & I_.nsey Co. 727 15th Street Northwest Washington, D. ‘C. 83 Years Without Loss to An Investor The Dutch East Indies which include Java, Sumatra and Celebes, have an estimated population of about 50,000,000 possess great natural resources and constitute one of the richest of all colonial possessions. Geographically they belong to the same group of islands as the Philippines and have an area of more than 735,000 square miles—about one-fourth the area of continental United States. The principal products include tin, coal, petroleum and a large variety of agricultural commodities, and today the Dutch East Indies stand first in the production of quinine, copra and spices third in the production of tin, rubber, coffee and cane sugar, and second in the exportation of the latter commodity. They rank fourth in the produc- tion of petroleum and are also important producers of tobacco, tes, rice, rattan, hemp and coal. These natural resources have enabled the maintenance of a substantial excess of exports over imports. -For the seven years, 1914-1920, the Dutch East Indies had a larger favorable balance of trade than any country in the world excepting the United States.. For this period this favorable trade balance was $1,5698,000,000 as com- pared with $427,000,000 for the seven years, 1907-1918. REVENUE AND EXPENDITURE For 116 years from the establishment of the colonial gov- ernment in 1798 to the-outbresk of the war in 1914, the aggregate ordinary revenue exceeded the expenditures, both ordinary and extraordinary, from 1906 to 1916 the ordinary budget, exclusive of expenditures on capital account, showed a surplus aggregating for that period over $43,777,000. In more recent budgets, owing to an extension in govern- ment activities and to the large increase in salaries and wages, there have been deficits in the ordinary budget but the Netherlands parliament has been informed that as a result of a policy of retrenchment now instituted Price, 88 and Interest Moreover it is si t that the budget for 1923 indi- cates that expenditures both ordinary and extraordinary are less than in any of the preceding three years. NATIONAL DEBT The proceeds of this issue will be used to reduce the unfunded debt. The total debt, funded and unfunded, on January 19, 1928, was about $456,000,000 or less than $10 per capita. More than two-thirds of the debt is payable in Dutch currency. Out of the surpluses of ordinary revenue and out of the proceeds of loans a sum estimated at $486,687,000 had been expended up to December 81, 1922, on capital assets, including railways, tramways, telephone and telegraph syst]::ns, tin mines, coal mines, harbor and irrigation works. For the fiva years 1917-1921, the net income from govern- ment-owned properties and monopolies a over $41,000,000. e estimated net income for 1922 from the same sources is in excess of $51,874,000. The total amount required for interest and amortization on the entire debt (including the present issue) for 1928 amounts to $34,875,000. ese figures indicate net in- come for 1922 from government properties and monopo- lies equal to more than one and one-half times the debt service for 1923. CURRENCY The Dutch East Indies I tender money is fdentical with the Dutch guilder. The Bank of Java, the sole bank note issuing power, had on November 11, 1922, a metallic reserve of 54% against bank notes and other demand lisbilities. The Dutch guilder is quoted in New York at practically par of exchange. Dutch East Indies exchange is ordinarily quoted in Holland at a small discount, which on February 13, 1923, amounted to only 2%. To Yield Over 7.20% to Earliest Redemption Date, March 1, 1933 To Yield Over 6.40% if Held to Maturity Application will be made to list these bonds on the New York Stock Exchange. ¥ The recent issue of £5,000,000 forty-year > sinking in London at 8%, is now quoted above 101%, These bonds are offered when, as and if issued and recetved by us and subject to approval of counsel. fund 6% bonds redeemable at par after the tenth year, which was issued yielding less than 6%. 1t is expeeted that trust receipts of Guaranty Trust Company of New York will be ready for delivery on or about March 6, 1923. Guaranty Company of New York Harris, Forbes & Co. Bankers Trust Co., New York Kidder, Peabody & Co. The Union Trust _Company, of Pittsburgh Continental and Commercial Trust and Savings Bank Ilinois Trust and Savings Bank © Chicago Chicago The Union Trust Cfimpnhy Pt Cleveland - ‘We do not guarantee the statements and figures presented herdin, but they are taken from sources whith we believe to be reliable