Evening Star Newspaper, February 16, 1925, Page 23

3 ... .. FINANCIAL FIANONG ASSURED FOR NEW PROET Quick Sale of Polish Loan Proves Abundance of - Funds for Industry. BY J. C. ROYLE. Special Dispatch to The Star. YORK, February 16—The 00,000 republic of Poland 25-vear an, whieh was offered to the pub- > today, was placed without diffi- culty. That statement is not sens: tional, yet it has a decided beari on the prospects for business and in- dustry in general and for the work- ers in particular, whether the latter realize it or not. For this loan will serve to give un accurate line on the market for investment securities on which hundreds of millions of dollars worth of work will depend in the next six months. Oversubscription of a bond offering does not necessarily mean that the sécurities have been absorbed by in- dividual investors. It simply means that the bonds have been taken up by the investment bankers, who are confident of their ability to place them with their clients. The speedy snapping up of an investment offer- ing Yoan indicates that there is a re- markable amount of money avail- able for investment throughout the country. Plenty of Work Ahead. The fact that this is so and that possessors of ~funds are anxious and willing to invest them in sound well secured enterprises assures that construction programs oatlined for this year by State, county and city authorities, by railroads, traction lines and public utilities and by in- dividua) corporations will be adequately and easily financed and will be carried through. The work thus provided will furnish employment to thousands of men both directly and through industries which must furhish the materials required. With that in mind, it is easy fo see FIRST MORTGAGES FOR SALE Denominations of $250, $500, $753, || $1.000 and upwards 6%2% All Loans Made om Property Located in the District of Columbia JAMES F. SHEA | 643 Louisiana Ave. N.\W. We Buy and Sell Liberty Bonds Treasury Notes Etc. Bond Department The Washington Loan and Trust Company 900 F Street 620 17th Street of the character of the Polish | how the reception given tMls new in- vestment offering has a direct effect on the prospects of the wielder of pick and shovel for 40 cents an hour. New Haven Insues Sold. The trend indicated by the Polish loan i confirmed by the success the New York, New Haven and Hartford railroad has had in selling $23,000,000 of its 6 per cent bonds direct to in- vestors. The majority of these bonds were. taken by patrons of the road and by industries along its right of way. Hundréds of millions of dollars will be expended by traction lines, power, heat and- light companies and telephone companies In betterments and expansions before -December 31. A large part of this money has already been raised by sale of bonds and no difficulty now is anticipated in securing additional financing necessary. Better Foreign Markets, In general, the Polish loan indi- cates a decided betterment in.condi- $lan! in Central Eurcre and taken in conjunction with the strength of sterling exchange, may be taken to forecast better foreikn markets for surplus American products. One in- dustry in America, however, may be _Ad\'erl!l)‘ uffectéd by the loan. That is the ‘sugar beet business. The security for the loan consists in part | — of the revenue derived from the sugar tax which in 1924 amounted to $10,- ([l 422,000 There is no doubt that under such a provision the . Polish government will do everything possible to in- crease sugar-beet production in that country. Even if the Polish finished Organized in 1814 Voluntary Trusts for Involuntary Situations {[Establish a Voluntary Trust with the Metropoli- tan and be prepared for un- foreseen financial events, YA comp letely equipped TRUST DEPT. is at the disposal of our patrons. 3% Compound Interest Paid on Savings Open Until 5:30 P.M. Today National Metropolitan i Bank Years Years o oid Capital, Sarplus & Undivided rofits, Over $1,800,000.00 15th St. opp. U. S. Treasury ! product Is not sold here, it' will be sold in other world kets, thus making more Cubar ‘sugar available for American use in competition with American beet sugar. 3 Utility Projects Increase. The importance of the money. situa- | i tion on industry and employment was further emphasized today by a $9,000,- | i 000 bond offering by the American | Gas & Electric Co., which will serve to finance projects by the company in dight States;.a $8,000,000 issue by the Indlana & Michigan Electric Co., 2 $5.000.000 1ssue of the East Bay Water Co. of California, and issues of States and municipalities extending from West Haven, Conn., south to Galves- ton, Tex. FISHER'S PRICE INDEX. NEW HAVEN, Conn., February 16 (Special).—Prices, 161.3; purchasing power, 62; Crump's, 162.7, . Irving Pisher reports. Money to Loan Secured by first deed of trust op real estate Freviiing inisrest and corhiraion ¥ Y ru I Weller Bidg. 9th & F N.W. i Just a Word— Don’t Spend It All, Even For “Legitimates”— Commence Now | To Lay the il Foundation For Independence— Start Buying | First Mortgage Notes— in With | They Pay 6%,%— i No Risks— No Losses— No Depreciations— No Delays. Mertgage Imvestment Dept. HANNON: & LUCH | 713 & 715 14th St. N.W. [ . Main 2365 Full New York and Berlin Market Recelved Daily. . Send for Special Market Letter ' Peter Whitney 203 Investment Bldg. ‘Telephone Franklin 3078 of Business! Are there 12 d - in the U. S.2If fi\e.refly Pu‘e Wall Street Journal is one of them. It is one of the few ORIG- INAL DAILY publications in the country. It covers the daily news of the world from the stand- int of FINANCE AND USINESS. These are both continuous stories in this country.. The successful men of affairs do not miss a chapter in this continuous story. READ The Wall Strect Journal for one month daily and you will quickly. learn why you should at ways read it daily. TheWall Street Journal published by DOW, JONES & CO. The World’s Greatest Finanetal News Gathaering Organisation 44 Broad Street New York D RERRRRREET, uitale Co-operative Building Assn JOHN JOY EDSON, Presideat Organized 1879 FRANK P. REESIDE, Sec'y. 43th YEAR COMPLETED Surplus $1,317011.44 Subscriptions for the 88th lssue of Stock Being Received: Shares $2.50 Per Month Feeso 0000t and S0 00000000000000 vee0000000000 —of much; account at the Equitable { A Systematic Way saving accomplishes therefore open an start saving for the future. 915 F Street N.W. ... THE EVENING BTAR, WASHINGTON, D. C. MONDAY, FEBRUARY 16, 1925, 'FEDERAL-AMERICAN NATIONAL BANK RESOURCES, $14,000,000 1315 F St. JOHN POOLE, Prostdent Whl Employees “Your Bank” Will loan you .One Hundred Dollars | to start a Four Per Cent Savings Account ‘Write or call for further information THE DEPARTMENTAL BANK 1714 Pennsylvania Avenue Usder United States Government Supervision LOANS FROM $50 TO $100 Can Be Obtained by Using Our Cartificate of inventory, Appraisal and Title. CHATTEL TITLE COMPANY 808 Fifth St. N.W. A Home of Your Own is a dream worth striving to realize— worth working for—worth saving for. Throagh Wise Investment you can increase your capital and make your dream come true. But be sure that your choice of security is carefully made. In First Mortgages on improved Washington properties you will find a way to make your capital grow as rapidly as is consistent with absolute safety. Consult your banker about in- vestment in our First Mortgage Notes! Sw EEM6 ST R o shingion.D.C. 55 Years Without Loss to An Investor. FINANCIAL. ’FM TR FINANCING ey ortues L) e 16 % Unlimited Funds Avallable Thomas ‘J. Fisher & Company, Inc.[~ 738 15tk Btreot FRED T. NESBIT Investment Butldtag . ss3 Money to Build When you have completed your plans for the erection or improve- ment of a home or business prop- erty, the next step is to arrange a suitable building loan through BOSS Ao PHELPS LOAN DEPARTMENT 1417 K Street N.W. Main 9300 APPLICATIONS INVITED for LOANS on IMPROVED PROPERTY Located in the District of Columbia and adjacent Subucbs in Montgomery County, Md. Hk ? pply vo H. L. RUST COMPANY LOAN CORRESPONDENT She PRUDENTIAL INSURANCE COMPANY o AMERICA 912 15th Street N.W. Main 6888 $35,000,000 Republic of Poland 25-Year Sinking Fund. External 8% Gold Bonds Dated January 1, 1925 Total authorized issue $50,000,000. Interest payable January I and July 1. Coupon Payable at 105% on or before January 1, 1950 bonds in denominations of $1,000, $500 and $100 registerable as3 to principal. Principal, premium and interest payable in United States gold coin at the office of Dillon, Read & Co., New York, without deduction for any Polish taxes present or future. In addition to being subject to Sinking Fund redemptions, beginning July 1, 1925, bonds redeemable a3 a whole, interest. . oc in partby lot, on any interest date after July 1, 1936, at 105 and A Sinking Fund is provided to redeem the entire issue by maturity at 105% and interest, by semi-annual call by lot of Richmond Cedar Works First (Closed) Mortgage 6%% Sinking Fund Gold Bonds Total Issue, $2,250,000 one-fiftieth of total amount issued, beginning July 1, 1925. Application will be made forthwith to list these bonds on the New York Stock Exchange. THE AMERICAN EXCHANGE NATIONAL BANK, NEW YORK, COUNTERSIONING AGENT Due January 1, 1945 The following information is contained in a letter addressed to us by His Excellency, W. Wroblewski, Minister Plenipotentiary of the Republic of Poland to the United States: . “Theboundaries of the Republic of Poland were established in 1919 by the Treaty of Versailles and by agreement with ad- joining countries. Poland has been a member of the League of Nations since its inception: The record of financial and economic e%rogr:-fi in Poland constitutes an outstanding achievement among European nations since the War and may be summariz as follows: ‘The creation of a stable currency with a reserve of ssz gold and gold securities; A balanced budget—in 1924 total Government receipts exceeding total expenditures by $14,282,000; A normal surplus of exports over imports; T A Government-owned railroad system of 14,000 miles showing in 1924 an excess of receipts over operating expenses; The funding of the Government’s debt to the United States and to all other countries. The Constitution of Poland provides for a President, whose term of office is seven years; and a Senate and Diet. elected by general suffrage. It has an area of 150,000 square miles, and a population in excess of 27,000,000, in which respect it is the fifth largest in continental Europe. The country is primarily agricultural, and is at present the chief producer in Europe of rye, the second in production of potatoes, third in barley and oats, and fourth in beet sugar. The textile industry in Poland is highly developed, as well as the oil, sugar refihing, iron and ‘steel, chemical and timber industries. Polish coal production : next in volume to that of Germany and France, and there exist important deposits of salt, iron, zinc and other minerals. Dated January 1, 1925 Interest payable January 1 and July 1, without deduction for normat Federal income tax not exceeding 2%. Principal and interest payabie in New York City. Redeemable at the optian of the Company in whole or in part on 30 days’ written notice at 105, on or before January 1, 1930: thereafter and on or before January 1, 1935, at 103; there- after and on or before january 1, 1940, at 102; and thereafter prior to January 1, 1945, at 101, plus accrued interest in cach case to the date of redemption.. Coupon bonds in de- nominations of $1,000, $500 and $100, registerable as to principal only. THE EQUITABLE TRUST COMPANY OF NEW YORK, TRUSTEE o letier from Mr. W. T. Parrish, President of the Company, is summarized as follows: Company: Richmond Cedar Works, including subsidiaries, is the largest manufacturer in the world of ————— woodenware. Its principal products consist .of ice cream packing tubs, ice cream freezers, washing machines, pails, tubs, clothespins, etc., and through subsidiaries it manufactures red cedar pencil slats and built-up veneers, Properties: The Company’s main plant, covering 11 acres, is located at Richmond, Va., where finished ———— articles of woodenware are manufactured for the trade. Lumber not required in the manu- facture of its own products is cut and shipped at an. additional plant at Camden, Va., near Norfolk, and pencil slats and veneers are manufactured at subsidiary company plants at Lebanon and Murfreesboro, Tenn., and Plymouth-and Ayden, N. C. ‘Timber holdings of the Company and its subsidiaries, located in North Carolina and. Virginia, aggregate more, than 1,100,000,000 feet of merchantable timber standing upon over 215,000 acres of land owned in fee. FINANCES . The external funded debt of Poland on December 31, 1924 amounted to $320,380,000 and the internal debt to $26,441,000, a total of $346,821,000, or approximately $13 per capita. Of the above external dept, all but approximately $50,000,000 consists of debts to foreign governments contracted since the war for reconstruction purposes. Under the Treaty of Ver- sailles, Poland will eventually assume certain obligations, the amount of which is not yet determined, in connection with former German and Austrian territory allotted to her. As against the above debt, Government-owned properties, including railroads, forests, tobacco factories, mineral and oil lands, refineries, salt mines and other assets were yalued on May 1, 1924 at approximately $1,260,000,000. The Government purposes that the entire proceeds of this loan are to be expended solely for constructive and productive purposes. b 2 x4 & . These bonds’are a direct obligation of the Republic of Poland; and the authorized issue, limited to $50,000,000 of which $35,000,000 is to be presently outstanding, is specifically secured by the revenue derived by the Government from the Sugar ‘Tax, amounting in 1924 to $10,422,000, and by the gross receipts of the Government railraads. Receipts from the Sugsr Tax # w{:l:hbedepa‘i:;;d C?o received in'the Bank tgf. P‘?ll‘.tnhd to be “elmx;;eed.oyedu:’f meetir_xl! th:bx:ltlerut and sinking }:.]) bfi:nd r;quiramnn Sinking Fund: A Sinking Fund, estimated to retire the entire issue by maturity, is based on the amount of this issue. The Government covenants that if the annual pi this Tax | in any year low $10,000,000, DinEing ung: of timber cut or removed from the mortgaged property and under certain conditions, on | other revenues will be added to the amount so deposited-to make up that sum. So long as any.of thebonds of this issue . are outstanding the Government covenants that it will not subject the receipts from the Sugar Tax, or the gross revenues ! of the railroads, to any charge which is not specifically subordinated to the lien of these bonds. ° In point of railroad mileage, Poland is next in importance in continental Europe to Germany and France. The Govern- ment system, acquired under tréaties.conch after the war, is approximately 14,000 miles in length, and has an estimated value, including rolling stock, in excess of $800,000,000. The lines are free from mortgage debt, with the exception of liens now outstanding on certain sections amounting to approximately $10,000,000. In 1924 the total revenue of the railroads was $159,225,000, of which $146,680,000 were receipts derived from operations, and the balance from Government and other credits. Operating expenses were $141,855,000, and the outlay for capital investment was $17,370,000.” y (All above conversions aze at 19.3 cents per Zioty) 3 We offer these Bonds for delivery when, as and if issued aid.received by us, and subject-to the approval of lefal matters by our counsel, Messrs. Root, Clark, Buckner & Howland. v ) % It is expected that inmlmm&h of Dillon, Read & Co. will be ready for 'dalivery on or about February 26, 1925. Price 95 and Interest. Minimum Yield 8.53%. Security: These bonds are direct obligations of the Richmond Cedar Works, secured by a closed first mort- ————— gage on over 187,000 acres of timber lands valued at more than $9,000,000, and on manufac- turing plants at Richmond and Camden appraised in excess of $1,500,000. The bonds are additionally secured by the pledge of the entire outstanding- capital stocks of certain subsidiaries whose timber lands, owned in fee, are valued at $1,000,000 and whose plants are appraised at over $930,000. No mortgage or lien can be placed on the properties of these subsidiaries except under restrictions of the trust indenture. Earnings: Net income aftet maintenance and all taxes, applicable’ to interest, depreciation and dépletion for the four and one-half years ended June 30, 1924, averaged $541,495 annually, or 3.70 times the maximum annual interest requirements of this issue. Such net income for the same period, after de- ducting depreciation, averaged $429.683. or approximately 3 times such requirements. The Company has made a profit in every year for over 30 years. a percentage of the annual net earnings of the Company. We offer these bonds when, as and if issued and received by us subject to the approval of counsel. All legal details will be passed upon by Messrs, Davis, Polk, Wardwell, Gardiner and Reed of N ew York, for the Bankers; and by Messrs. Chadbourne, Stanchfield & Levy of New York and Messrs. Parrish, Butcher, Churchman & Coulbourne. of Richmond, Va., for the Company. Titles cover- ing the mortgaged properties will be passéd tpon by counsel for the Bankers in North Carolina and Virginia, except with respect to approximately 15% of the timber lands, titles to which have been passed upon by the Company’s counsel in Richmond. Audits De- cember 31, 1919, to June 30, 1924, by Price, Waterhouse & Co. Timber estimate by E. B. Freeman, Norfolk, Va. It is expected that temporary bonds or trust compuny interim receipts will be ready for delivery on or about February 27, 1925. Price 100 and Interest Cra_ne, Parris & Company : Investment Securities Washington Representatives: . LEON SHORE ELMER F. SAUTER - . Room 300-301 Edmonds Bldg. #ZUEE% Dillon, Read & Co. * e statements Nerein hbve boen accepted by us as acéirdte but are in B0 eveat to be comvtrusd o reproventations by Wb, 823 Fifteenth St. N.W. Washington, D. C. - Established 1883 The information contained herein, while not guaranteed, has 3 been obtained from sources which ore regarded as reliable, February, 1925,