Evening Star Newspaper, December 2, 1924, Page 29

FINANCIAL HEAVY INCREASES INTOBACEOSLES Virginia and Maryland Crops Very Valuable—Rush of Holiday Buying. BY J. €. ROYLE. Special Dispateh to The Star W YORK, December 2.-—More ciga tobacco will be | siven ax presents stmas than ever before Inter- views with urers in _all] parts of the country indicate that never has heen so good. al are running with full een more holi- n in previous garctte output 1s hers of Rich- report that they ver hefore. Thr-l A Tobacco untry. gle order recently The Allen & & Mvers guarettes @ total for FIRST STEP IN MERGER. New Corporation to Take Over Big Baking Firms. THE EVENING STAR, WASHiNGTON D. C, TUESDAY, DECEMBER 2, 1924. First Mortgage 'Notes Are' the Most Satisfactory Investments “When Buying” 'Our7% ONEY TO LOAN Any Amount Apartment Houses FEDERAL-AMERICAN NATIONAL BANK FINANCIAL. Money to Loan Secursd by frat deed of trust on sesl wstate. For the Maximum Income Bu: LIFE ANNUITIES | Aetna Life Insurance Co. 801-6 Woodward Bidg. 1,000,000 ar, but pric With $21.52 last year Virginia Stations Rushed. The Virginia T operative A though the produced of the tob is exported Much was valued and few indus- en can engage. 1 is the great- FIRST MORTGAGES FOR SALE /. 615% THE TYPE OF SECURITY CONSERVATIVE INVESTORS BUY IN DENOMINATIONS 10 SUIT PURCHASERS JAMES F. SHEA 643 Louisiana Ave. N.V Second Trust Notes Bought Our clients are ready to-pay cash for SECOND TRUSTS in any amount. The rates will please you ii the security is sat- isfactory. MORTGAGE DEPARTMENT 'ISHAN;" N & LUCNS 713 and 715 Main WE OWN ALL THE SECURITIES WHICH WE OFFER FOR SALE DON’T SPEND —that Christmas Savings Fund you may have available UNTIL you have investigated the FIRST MORTGAGE NOTES upon improved real estate in the city which we offer for investment. Prudent men and women always invest a substantial NEW YORK, December 2.—Incor- poration of the Purity Bakeries Cor- poration, with authorized capital of $15,000,000, par value 7 per cent, cu- mulative preferred stock, 400,000 shares of class A stock and 500,000 shares of class B stock, another step In the consolidation movemert in the baking industry throughout the coun- try, was announced yesterday. The new corporation’s initial move, it is understood, will be to take over the Purity Baking Company of Min- nesota, the Tri-State Baking Com- pany of Michigan, Banner Grocers’ Baking Company of Cincinnati and the Grocers' Baking Company of In- dinnapolis. Negotiations for acquiring addi- tional properties Were sald to be in progress. NEW BANK RECORDS MADE IN BALTIMORE Clearings for Eleven Months High- est in Five Years—No- vember Totals. for Safety and Income Call Our Loan Dept. N. L. Sansbury Co. Inc. 1418 Eve St. N.W. Phone Main 5904-5 WE HAVE MONEY TO LOAN ON IMPROVED Residential and Business Property District of Columbia at Precailing Interest Rates Consult Our Loan Department Wm. H. Saunders Co., Inc. REALTORS 1433 K Street N.W. Main 1016, 1017 In the Special Dispateh to The Star. BALTIMORE, December 2.—Local bank clearings for November con- the total for October, they were well ahead of any similar month in the for the first 11 cd $16 A Worg to Speeulntors. I you must speculate, select a rep- 3 membership = For December Funds Our monthly list of bond offerings affords a broad choice in character, yield and maiurity. More than eighty issues are listed. The National City Company Washington—741 15th St. N.W. Telephone—Main 3 TO FEDERAL EMPLOYEES AND ALL OTHER PEQPLE WE_WANT YOU AS GNE OF 50,000 NEW INVESTORS IN THE SAVINGS DEPARTMENT oF “YOUR BANK" To get your investment we wili foan you ONE HUNDRED DOL. LARS WiTHOUT INTEREST OR ENDORSEMENT, The oniy coaition is that you will leave 1t on deposit in a sav- ings account for one year and pay us back ten dollars a month, Vour one-hundred.dollar invest- ment will bear interest at 4% oer snnum. compoundc ' semi-an- nually. At the end of on: year your $100 investment will be worth $104.04, Under the usual 4% savings plan, if you save $10 a montr for t:~ months, your §100 at the end of one year would be worth $102.52. Come in and talk with us about this new investment pian, Banking Hours—3:30 a.m. Guaranteed Second Trusts I'hc interest yield is, much higher. You get all the safeguards that make a desirable investment. Banking Trust & Mortgage Company 1410 G St. N.W. Franklin 5704 to 3 p.m., except 1st, 2nd, 15th, 16th, 17th and last day of each month, e .m. to 5:30 p.m. Saturdays. . to 1 p.m. THE DEPARTMENTAL BANK |, “YOUR BANK™" 1718 PENNSYLVANIA AVENUE N.W. Under United States Goveramens Supervisio That Sells for $6,985 is security for 6% First Mortgage Investment Notes aggra- gating not over $3,400. Consider your margin of safety! These Investment Notes are available in denominations from "$100 to $100,000 . WARDMAN Constructio mpany | 1430 Kstreet. ‘NS cMain 3850 % (o] Interest Compounded Twice A Year Grows Mighty Fast Christmas Saving Checks aggregating about four million dollars are now being distributed by the Wash- ington Banks. The larger portion of this money will be spent for presents. We suggest that a most appro- priate gift to each of your. children would be opening accounts with this Association for them. proportion of their funds in such mortgages—because they are safe, do not depre- ciate and pay liberal returns. We look after all details without charge. NO LOSS TO ANY INVESTOR ‘Write Our Mortgage Investmeat Depactment for Special Literaturs SARNON & TGy 713 and 715 14th St. N.W." Main 2345 There is no such thing as chance success. The first step must be in the direction of thrift. Start a small account for the kiddies and encourage them to add to it regularly, and you will have instilled in them that spirit of thrift which later in life will lead them to Success. One Dollar or more will start the thrift account. COLUMBIA BUILDING ASSOCIATION 716 11th St. N.W. Under Government Su; isi First Mortgage Notes is secured on carefully improved properties and plazed on & sound, conservative 4 bl in ameunts ef $100 up. Apply Lean Dept. M 5 1/ 2 % Business Property BUILDING PROJEOTS FINANCED FRED T. NESBIT ties and placed’en Iavestment Blds. Mais 9208 Mr. O’'Donnell, Mgr. ——— = Chas D. Sager Realtor 924 14th St. ON'T Christma Christmas at least part to start a permanent sav- ings fund. Our Invest Plan enables full rate of on every payment that you make towar safeguarded use all of spending. N.w. Accountants and Auditors BERLIN, GERMANY OFFICES New York Philadelphia Chicago Boston Detroit Pittsburgh Cleveland Cinolanati u Francisco Ios Angeles: Washington Oaklan Seattls your s savings for Use of your check ment Savings you to get the bond interest d our strongly 7% First 17th and H Sts. Mortgage Bonds These bond: them our re to any investor in 51 years —a strong safety for write or phone Main %4 for th cribing our Investment Savings Plan TO ANY INVESTOR IN 51 YEARS The F. H Founded 1673 First Mor Smith Building. For Rent OFFICE ROOMS Single or En Suite No Dark Rooms One Large Suite Now Available s have behind cord of no loss assurance_ of your savings ¢ free hooklet 1321 Conn. Ave. Phone Main 9700 . Smith Co. e Bonds 5 Fifteenth St. RESOURCES $13000.000 1315 F ST Jonm PooLe Pacsmem Lybrand, Ross Bros. & Mntgomery with Mr. E. Elmer Staub, C. P. A. (Pa.), as Resident Partner. FOREIGN OFFICES AND AGENCIES BERLIN, GERMANY LONDON, ENGLAND PARIS, FRANCE 110 William St., New York | ' S Capital & Su Great Things —may come of your gift of a Savings Account to your Transportation Building Six Rapid Elevators, 24-hour Service Randall H. Hagner & Co. MONEY TO LOAN AT boy this Christmas. ON FIRST MORTGAGES CURRENT RATES OF INTEREST lus, $2,000,000.00 It's the youngster who masters the lesson of THRIFT while young who gets world. { Practically any somewhere in the amount will start an interest-earning account at this strong old bank. 57th Year Oldest Savings Depository in Washington Cor. 15th and New York Ave. National Savings & Trust Co. As all of this stock has been sold, this advertisement appears as a matter of record only. 150,000 Shares - The Long-8ell Lumber Corporation (Organized under the Laws of Maryland) Class A Common Stock (no par value) Non-callable and fully participating, but with priorities as to assets and dividends. Preferential dividends are at the rate of $4 per share per annum cumulative from January 1, 1925. After these dividends are paid, dividends not exceeding $4 per share may be declared on Class B shares in any year if the payment will not reduce surplus earned after January 1, 1928 below $6,000,000. Divi in any year shall be made ratably on both classes, share and share .. to acquire Class A sharcs which may be tendered after nds on the Class B sl Any distribution $60 per share and unpaid accumulated dividends less partial liquidating dividends paid res are non-cumulative. All further dividends from earnings, declared h would amount to a partial liquidating dividend must first be used her ke. On liquidation, Class A shares first receive $50 per share and unpaid accumulated dividends, less partial liquidating dividends paid thereon; then Class B shares receive $50 per share less partial liquidating dividends paid thereon; and the balance is divided between the Class A and Class B skares, share and share alike. If and when $60 per share in partial liquidating dividends and all unpaid accumulated dividends have been paid on Class A shares, then all distinction between Class A and Class B shares shall cease. Application will be made in due course to list the Class A Common Stock on the New YVork Stock Exclange. STOCK CAPITALIZATION Class A Common Stock (No par value).. Class B Common Stock (No par value).. Authorized = 750,000 shares =X 550,000 To be presently issued® 593,250 shares 541,750 ¢ * On the basis of acquisition of 9834% of the stock of the Missouri Corporation. Copres of a letter in reference to the new company and this issue from Mr. R. A. Long, Chairman of the Board of Directors of The 'LongrE(ll Lumber Company, who will hold the same office in the new company, may be obtained from the undersigned upon request. HISTORY AND BUSINESS “The Long-Bell Lumber Corporation has been organized to acquire the stock of The g-Bell Lumber Company. The business was s on a few thousand dollars of borrowed capital in 1875 as a small retail lumber yard in Columbus, Kansas. The -Bell Lumber Com%:ny was incorporated in 1884 with an authorized capital of $300,000, only one-half of which was paid in and this was entirely out of previous earnings. Almost all that the Company now has comes from earnings of the business. ‘The Company’s property is distributed over twelve States of the West, Middle West and South, and comprises, among other things, 12 modern lumber manufacturing plants, with a capacity of 800,000,000 feet per annum; 8 sash and door, box, veneer and other wood products plants; 122 retail lumber yards; 371.5 miles of railroad, together with equipment; 11,267,961,739 feet, scale, of standing timber; 1,092,000 acres of land, a large part of which i8 suitable for farming. The Company manufactures long and short leaf Southern yellow pine, Southern hard wood, oak flooring, California white pine lumber, California white pine sash and doors, veneers, Washii Duuglu fir, standardized woodwork, creosoted posts, poles, ties, piling and wood blocks. The Company has been able to maintain a market for its entire production at all times except during periods of general business depression, but in no year have the Company’s sales been less than 85% of its productive capacity. :‘.h;'l fact establishes the stability of the business and the slight effect of times. LUMBER INDUSTRY ‘The manufacture of lumber and wood products has attained the rank of the third industry in America, and is stable and basic. 85% of the homes and farm buildings in the United States are of wood construction and many new industries are huge consumers of lumber. The supply of timber is rapidly declining and it is inevitable that standing timber constantly increases in value. The Company owns standing timber sufficient for its operations for many years and this timber is carried on the balance sheet at $22,500,000 less than its value as appraised as of July 1, 1922 by James D. Lacey & Company. The Company, furthermore, is in receipt of a letter from James D. Lacey & Company stating that in their opinion the increase in value of such timber holdings of July 1, 1924 exceeded the appraisal as of July 1, 1922 by more than $5,000,000. The vast Northwest holdings are carried at cost, no interest and carrying charges having been added. In view of this situation the future mfin should be on a decidedly ascending scale. The experience of the lumber industry in general has been that no substantial tract of timber has ever depreciated in value. NEW PACIFIC NORTHWEST DEVELOPMENT Looking forward to the time when standing timber in the South would be consumed, the Company has made several of standing timber in the Pacific Northwest, which will in a years, the dominant lumber producing area in the United States. It has now acquired in Washington and Oregon a total of 8,744,622,961 feet of readily accessible standing timber of high quality. To develop part of these properties, the Company has founded the city ef Longview, n, and erected a plant which will produce not less than 250,000,000 feet per year, double shift, and is planning to add other construction on the same site which will provide for a minimum pro- duction of 400,000,000 feet per ansum. v Longview is favorably located for manufacturing and distributing lumber, having access to three transcontinental trunk line railroads, as well as ocean- going freighters. ‘The Comy also owns considerable real estate in the municipality of Longview which already appreciated in value. PROFITS The profits after deducting income taxes and all charges except depletion and depreciation, and the net profits after deducting such depletion and Myr. Long has summarized this letter os follows: depreciation, for the five years and six months ended June 30, 1924, as cer- tified by Messrs. Ernst & Ernst, Public Accountants, have been as follows: Profit after Net proft applicable Deducting to New Cempan: Income Taxes and all Chary except Depl Depletion and and Depreciation Depreciation $3.407,153.26 3,634,825.72 3,551,043.65 3,652,539.08 Net Profit SocthsPeriod $4,438,999.52 $4,372,414.53 g 5,685,582.60 80,045. 78,844.76 .. 4,334,267.63 4,269,253.62 3 .. 10,114,772.71 4.455,832.26 5,658,940.45 5,574,056.34 6 months ended June 30,1924.. 4663,001.14 2,184,207.52 2,478,793.62 2,441611.72 Because of the fact that operations on_the Northwestern Timber holdings were mot begun until after June 30, 1924, the amount bf $4.060.770.64, representing the charges on these holdings for the period from January i, to June 30, 1924, has mot deducted in computing the above profit, but has been to” Surpius. ‘The total of these net profits applicable to the new company as above stated was $22,421,763.57, and the annual av for the 534 years was $4,076,684.28, or equivalent to $6.87 per share on Class A Common Stock to be issued by the new company, and such net profits for the year ending Decem- ber 31, 1923 were equivalent to $9.39 per share of Class A Common Stock. In addition, during the 534 years tabulated above, the cost of timber util- ized in operations amounted to a total of $15,394,542.45; this ts deple- tion. Dm the same period there was also charged to the cost of lumber manufac a total of $5,491,059.04 as depreciation; this, of course, is in addi- tion to regular repairs and maintenance. The item of d tion in the Company’s business is ed on the basis of the life of a timber tract for which a particular mill is erected, in order to replace the capital investment in this mill at the time such timber is consumed. The total of these two amounts of depreciation and depletion is thus $20,885,601.49 for the ”i year period and rvfrenntl money received by the Company from the sale of its products in addition to the net profit above reported and indicates the large amount of cash which flows into the treasury and which is available for the payment of obligations and other corporate purposes. This makes the total cash income through profit, depletion and depreciation for the past 514 years amount to $43,648,813.23. The Company has received in cash as depletion, depreciation and profit in the past 1114 years over $69,000,000. B The Company has paid cash dividends totalling $21,104,045.02 and hai paid cash dividends continuously for 27 years. It is the expectation to pay dividends on the Class A Common Stock at the rate of $4 per share per annum, commencing with the first quarter of 1925. The Cu:?my’- debt for bonds and timber contracts maturing later than one year and amounting to $33,525,800.99 on June 30, 1924 is so distributed as to maturity of principal that in no year does more than $2,900,000 fall due. The cash returns each year on depletion and depreciation reserves should con- siderably exceed the full amount of these maturities, for it will be noticed that the smallest return on the above S-year statement was in excess of $3,400,000. ASSETS AND BALANCE SHEET The consolidated Balance Sheet of The Long-Bell Lumber Corporation (the new company) and subsidiaries, as of June 30, 1924, certified by Messrs. Ernst & Ernst, blic Accountants, after giving effect to the acquisition of 9814% of the stock of The Long-Bell Lumber Company under the agreement for its acquisition and the sale of 150,000 shares of Class A Common Stock, the proceeds of which will be used by the Company an addition to its working capital, ‘shows net tangible sets $49,387,452.69 of which $11,336,921.06 consist of net current assets. This Balance Sheet is exclusive of any value for Good-Will or other similar intangible assets, or the $22,500,000 4 iation of standing timber ppraised; such assets are, however, as ted out above, of great value result of the Company’s 50 years of existence and its recent national advertising program.” 1923. We offer the abeve stock for subscription, subject to allotment, when, as and if issued and accepted by us, at $52.75 Per Share This offering is made in all respects when, as and if issued and accepted by us and subject to the ag}’rovnl of Messrs. Sullivan & Cromwell, of New York, for the Bankers, and-of Messrs. Baker, Botts, Parker and Garwood, of Houston, Texas and Kansas City, or the Company. We reserve the right to reject any and all subscriptions in whole or in part, to allot less than the amount applied for, and to close the subscription books at any time without notice. It is expected that delivery of tempora on or lb(:l'lt December 22, 1924, at the ofi' of GOLDMAN, SACHS & CO. stock certificates or interim receipts (exchangeable for definitive stock certificates when pri ed) will be d ‘Goldman, Sachs & Co., 30 Pine Street, New York, N. Y. VotE e » against payment therefor in New York funds. LEHMAN BROTHERS LACEY SECURITIES CORPORATION | Thé above information, while net guarantesd, hes besn obtained from somrces which we believe to be reliable.