Evening Star Newspaper, January 27, 1925, Page 23

FINANCIACL. THE EVENING STAR, WASHINGTON, D. ©C, TUESDAY, JANUARY 27, 1925. DENIAND I GREAT FORCANNEDGO0DS Shortage in Some Lines Nowl, Reported—1925 Sales | Making Record. | | ROYT anning Costs Hig Florida East Coast Railway Co. First and Refunding 5% Gold Bonds Due September 1, 1974 The National City Compan; Wash 41 I5th St. N.W. i F A Way to Keep Free of Investment NATIONAL BANK RESOURCES, $14,000,000 1315 F St. FROM $50 70 $100 Can Be Obtained by Using Our Certificate of Inventory, Appraisal and Ticle. CHATTEL TITLE COMPANY N. Second Trust Notes Bought ients _are ready to pay SECOND TRUSTS in unt The rates willf| ou if the security is sat- 715 14th Street N.W. Main 2545 Money to Loan on Real Estate 6% Interest commissions. for appraisal, title, etc. refinance your maturing Quick Action Columbia Building Association 716 11th Street N.W. Under Government Supervision Interest Is Payable the Day Due In denominations of $50.00 and up, our 7% First Mortgage Notes may be purchased by monthly payments Consult Our Trust De, or Send for Valuable Booklet. MONEY TO LOAN ON FIRST MORTGAGES AT CURRENT RATES OF INTEREST Ronsll K Honr % 7827 %}}MMM venme FINANCIAT. 23 Mo FINANCING | Houses Unlimited Funds Available FIRST MORTGAGES FOR SALE 6Y2% THE TYPE OF SECURITY CONS ERVATIVE IN DENOMINATIONS TO First Mortgage Loan Applications Wanted Interest Rate 69, and | 6%2% Apply Loan De; 77 | FRED T, NESBIT _|[| snaot 60 O "n,",":-j Butlding M. im,,m‘?} 1.2.:‘,, . 38 Muin 37 38 SUIT PURCHASERS First JAMES F. SHEA || Mortgage Notes 9 Apply Loan Dept. 643 Louisiana Ave. N.W. C. L. O’Donnell, Mgr. Cilas. D. Sager ] of | INVESTORS BUY | | | R R I I RS B || Money to Loan Bocures oy nrst deed of trust on real estats Prevailing interest and commission Joseph I. Weller 2 West. % & Trum Realtor 924 14th St. NN\W. TheRemarkable Record Electric Power & Light Moderate § ‘ Smith Bonds Are Owned the World Over Now held by investors in 48 States and in 30 countries and territories abroad F[\’fi.\l the Philippine Islands, 12,000 miles away, an investor orders Smith Bonds. From Alaska comes another order. From foreign banks and banking houses come coupons which our clients have clipped and cashed abroad. Each day the mails bring evidence of the world wide confidence in Smith Bonds. There is a logical and fundamental reason for this universal confidence. Tt is due to the fact that Smith Bonds have behind them our record of 52 vears of proven safetw and satisfactory service in the field of First Mortgage Investments. 70/0 First Mortgage Bonds Smith Bonds, strongly secured by improved, income- producing city property, are sold in $1,000, $500 and $100 denominations, and in maturities from 2 years to 15 vears. You may invest outright or under our Invest- ment Savings Plan, by which every payment earns the full rate of bond interest. The F. H. Smith Co. Founded 1873 FIRST MORTGAGE BONDS Smith Building 815 Fifteenth St. rrn F. H. SMITH CO., | Smith Building, Washington, D. C. | Please send me circulars describing current offerings | | of your 7% Pirst Mortgage Bonds. Name Return. pecial to The New York Thmes. w:sumz;:'ox. Jan. I8—~A- special been completed by the Employmens Ber- vice of the Department of Labor, and a*forecast that activity will equaly and in some sections excesd, that in 104, was made in a bullctin jseued today. Preesed by local directors OF the survey dat residential and commercial. mens’ strucijon will continwe an' & sstistaciory| A Good Foundation to Invest On— at 6%% and 7% WHEN building conditions are sound, all you need to inquire about any real estate bond is: Will it stand analysis like other securities? Is it issued by a good House? The Four Distinguishing Marks of Miller First Mortgage ¢ Bonds furnish precisely the information which any investor \ needs in order to check up, to compare these bonds with others for Safety, Validity, Type of Security and Income You may be surprised to learn that first mortgage bonds can be subjected to such tests. Allow us to send you Bldg., 9th & F N.W. Preferred Stocks Without « Main 2100 e — CAREFUL analysis of the dividend records of practically every electric power and light com- pany with gross earnings of $1,500,000 per year and upwards, the combined capitalization of which repre- sents approximately 909 of the industry, shows that: DOUBLE SERVICE We render Washington a 1 Current cash dividends are being paid on all of the preferred stocks double service. included in this analysis. We not only supply the capital for the erec- il nolcaselrssitheretactnraiiated tion of apartments, homes and back dividends unpaid. 3 In fifteen cases dividends have been deferred but have subsequently been paid off in stock or cash. business properties; we also Over a supply—in the form of Quarter of a FIRST MORTGAGES Centur 4 In all other cases (107) the pre- ferred stocks have unbroken divi- dend records. We feel justified in believing that this remarkable record definitely establishes the investment position of the Preferred Stocks of large electric power and light companies. To an even greater extent does it emphasize the intrinsic strength of the Bonds and Notes of these companies. —investments which combine Loss yeral interest return and maxi- mum safety. B. F. SAUL CO. 925 15th St. N.W. A copy of this analysis furnished on request Bonbright & Company Investment Building, Washington Philadelphia New York Chicago Boston — Worries about the Safety of your money. Try us in any amount from $100 up—we've never lost a dollar for i Send for to our Mortgage Investment Department !SHANNON_‘__E LUCHS 713 & 715 14th St. N.W. Main X New York Philadelphia Pittsburgh St. Louls Buffaio SEND FOLDER B-7211 AND MILLER woktgage IN - WHICH . NO + INVESTOR - EVER + LOST - A + DOLLAR the material to do the testing—a circular describing a Miller Bond issue, and a 4-page folder on the Four Distinguishing Marks. Sign below and mail today for Folder B-7211. Cut here—sign below and mail the coupon G.LLMILLER & CO, ANCORPORATED, LOCAL ADDRESS—308 PHILLIPS BUILDING WASHINGTON, D. C. Atianta DESCRIPTION OF FIRST Address. Memphis X Knoxville BONDS Ciayand Srwts_________________ $10,000,000 Siémens & Halske (A.G.) Siemens Schuckertwerke (G.M.B.H.) $5,000,000 Three-Year 7%, Secured Sinking Fund Gold Bonds due January 1, 1928 $5,000,000 Ten-Year 79, Secured Sinking Fund Gold Bonds due January 1, 1935 Dated January 1, 1925. Interest payable January 1 and July 1. Coupon gold Bonds in denominations of $1,000 and $500, registerable as tc principal. Principal, interest and sinking fund payable at the office of Dillon, Read & Co., New York, in United States gold coin of the present stan dard of weight and fineness, without deduction for any German taxes, present or future. Central Union Trust Company of New York, Trustee Deutsche Kreditsicherung A. G., Berlin, German Agent of Trustee. A Sinking Fund is provided for the Three-Year Bonds sufficient to retire $250,000 principal amount each six months through purchase at prices not exceeding par and interest if obtainable, any unexpended balance to revert semi-annually to the Companies. The Three-Year Bonds are callable as a whole on any interest date, at the option of the Companies, at 101 and interest. A Sinking Fund is provided for the Ten-Year Bonds sufficient to retire through call by lot $132,000 principal amount of Bonds each six months at 102 and interest, the balance of less than 509, of the issue to mature at 102 and interest. The Ten-Year Bonds are callable as a whole, at the option of the Companies, on any interest date, at 104 and interest on July 1, 1925, the call price being reduced by one-half of one per cent each twelve months until July 1, 1929, from which date until maturity the call price remains 102 and interest. The following information has been summarized from the letter of Dr. Carl F. von Siemens, Chairman of the Board of Directors of each Company: HISTORY AND BUSINESS OF“THE COMPANIES The Siemens constitutes one of the largest electrical manufacturing companies in the world, did a gross business in 1924 of over $92,000,000, owns twenty-six factories situated at various points in Germany covering an area of 286 acres of floor space, and employs over 85,000 operatives. Forty per cent of the production is exported. At the present time the Siemens & Halske plants are operating at 100% of normal capacity, and the Siemens Schuckertwerke at 80%. The business of Siemens & Halske A. G. was founded in 1847 and the company is one of the pioneers in the field of clectrical development. The founder of the company was one of the first to develop long distance electric telegraphy and submarine cables, discovered the dynamo electrical principle, and in 1879 invented and constructed the first electric railroad. The Siemens & Halske A. G. now covers the field of automatic and manual telephones, telegraph, signalling and electro- medical apparatus, and radio equipment. Its principal controlled company, the Siemens Schuckertwerke G. m. b. H,, manufactures all kinds of electrical machinery and appliances for lighting, power, traction and electro-chemical purposes dynamos, turbines, wires and cables. The two Companies together cover the entire electrical field. The Siemens & Halske A. G. owns 40% of the stock of the Osram Company, which manufactures incandescent lamps and now has about 20,000 employees, and Siemens Schuckertwerke owns 67% of the stock of the Austrian Siemens Schuckertwerke A. G., with 8,000 employees. The group also controls a number of other subsidiary companies manufacturing electric carbons, porcelain, glass, paper and other materials required for use in its principal products. COMMODITY SECURITY These Bonds are the joint and several obligation of the Siemens & Halske A. G. and the Siemens Schuckertwerke G. m. b. H. As security for these Bonds, the Siemens Companies will transfer to the German Securities Trustee Co. (Deutsche Kreditsicherung A. G., Berlin) salable merchandise such as brass, copper, aluminium, zinc, steel, iron plates, dynamo plates, lumber, oils and rubber as well as semi-finished and finished goods. The merchandise so transferred will be fully insured in accordance with the requirements of the German Securities Trustee Co., and, at the lowest prices prevailing, will at all times represent 16625 % of the Bonds outstanding. The German Securities Trustee Co. was formed to hold and administer the commodity security under the 140,000,000 Guilders credit advanced in 1920 by the Netherlands Government to German industry. It has built up a thorough system of segregating commodities held as collateral security, control and insurance, and has carried through alljcredits heretofore entrusted to it without loss of any kind to the lender. The supervision by it of the commodity security for these Bonds will be identical with that employed by it in the case of the Netherlands Government loan. PROPERTIES AND EARNINGS The Siemens Companies carry their plants, other than land and buildings, on their books at one dollar. Average annual sales of the group for the period July 31, 1911 to July 31, 1914 were $68,966,600, and net earnings before depreciation and reserves, averaged $10,233,300 annually. Operating results during the war period and subsequent period of monetary inflation are not indicative of normal sales and earnings, and therefore are not stated. Combined assets as of September 30, 1924, show an excess of $48,481,589 over liabilities, before giving effect to the present issue and without any value for plant and equipment. The mortgage debt of the Companies now amounts to only $158,080, and the total fixed charges, including interest on these Eonds and the annual charges under the Dawes Plan, will not exceed $941,000 per annum in 1929 when the maximum payments under the Dawes Plan will be required. (All conversions are at 4.20 Gold Marks to the Dollar) One and one-half Million dollars principal amount of these bonds have been purchased from us by Messrs. Mendelssohn & Co., and Pierson & Co., both of Amsterdam, Holland, for offering in that market We offer these Bonds for delivery when, as and if issued and received by us, and subject to the approval of legal matters by our counsel Messrs. Root, Clark, Buckner & Howland in New York, and Dr. Wronker-Flatow in Berlin. It is expected that interim receipts of Dillon, Read & Co. will be ready for delivery on or about February 9, 1925. Price 99 and Interest for Three-Year Bonds. Yield 7.37% Price 96%2 and Interest for Ten-Year Bonds. Minimum Yield 7.64% Further information is contained in our circular which may be had on request. Dillon, Read & Co. Marshall Field, Glore, Ward & Co. The Unionclvrzgig Company Central Trust Company of Illinois Thmwhufin.rm:‘vdbyuble,mmmbyusllmm&ebutn:lnno:vcnttobeeonflruedureprmuu’mbyu,