Evening Star Newspaper, April 11, 1925, Page 15

FINANCIAL. FINANCIAL GRISIS ABSORBING TOPIC Situation in France Draws Special Attention During Week in Wall Street. BY STUART P. WEST. Special Dispateh to The Star. NEW YORK, April 11.—The French financial crisis has been the principal subject of discussion in what would olherwise have been an unimportant week In the markets. Stocks on the whole have varied liitla. They have borne out the analysis of a week ago, that the mar- \ket Was coming to rest after its vio- lent decline from the overdone ad- vance of the Winter. This reaction swapt away, in a goed part of the st, two-thirds to three-quarters of the entire gain since election day. It monstrated that the enthusiasm with which the business community created the political results was not warranted so far as the trade move- ment itself was concerned. Industry's Two Big Handlcaps. \ The thing which was not appreciated at the end of the first week of No- ember, but which is appreciated now was that, however satisfactory from conservative standpoint might huve en the outcome of the presidential paign it could not dispel the two & handicaps which have stood in o way of the industrial situation the last bility to re v with incr n overhead The second was the inability to solve ha problem by r & prices. For ever since the lessons inflicted upon the business community, first in 1 and again in & milder way in 19 consumers have adopted the policy of buying for immediate needs and of refusing to follow up price advances. . The steel trade is the most con- picuous example where prices have been moving downward instead of solng upward, as was expected at he beginning of the year. The aver- ige compiled by the Cleveland Iron Trade Review at the midweek show- 89 a ton, as agalnst $40.22 the before and $40.53 the month Even Judge Gary, in his op- references to the future, aracterized the present price situa- as unsatisfactory, and sald that quotations were too low to “permit many of the manufacturers realizing a profit But what has occurred In steel has occurred also in other industries. Then, too. the cotton mill owners of New England tried to get relief from Washington through increased tariff les and were turned down. This oes not augur well for the makers cast iron pips and other forms of »n and steel if they should attempt help against the similar ierman, French and Belgian ympetition which Is making itself felt more and more all the time In a word the business develop- ments of the last three months have been disappointing Freneh Disclosures Amaring. The disclosures in connection with i French finance are nothing short of | amazing. They are a surprise even o those who for the last three years have believed that the truth regard- ing the French budget, the position of the internal debt and the relations etween the government and the Bank of France was not belng prop- :rly presented to the world. The acknowledgment that since the Sum- mer of 1923 the books of the French hank have been manipulated so as underrate the advances to the treasury is an extraordinary admis- sion Still it is no worse than the ra- peated assuran which French statesmen and financial writers have made that the budget was balanced, that there was mo inflation and that the various sinking spells in the franc were due to the malicious speculations of unfriendly foreign powers. Exodus af Capital Fosaible. At this writing it is too early to say much about the new flnancial program and what its effects will be. There was a big exo s of French capital from the country in the eariy Winter, and this ca al has not re- turned. It will not come back until the French treasury problems are much nearer solution than they now anpear There is a_question whether t flight of ital will not be resumed. The events of the next few days ought to settle this ques- tion one way or the other. In the meantime two faots are clear. One is that the great extra indebt- cdness now conceded on the part of the French government shows that inflation in France has been going on to a much greater extent than Is realized. The other is that French credit has come down in the eyes of foreign investors. Selling of the I'rench bonds, both public and pri- vate, quoted on a dollar basis, has been the main feature of our bond market during the last week With the French government 7 per cents selling at a discount of over 7 points from their issue price of last November it rather amusing to follow the discussion about the pos- sibility of further loans to France from private American sources. WE FINANCE ~all classes of Income-producing property. Large Loans a Specialty Onurrent int. rate and commission. Higbie & Richardson, Inc. 516 15th St. N.W, == MONEY TO LOAN i First Trusts placed and Second * Trusts bought on improved prop- erty in the District of Columbia. Also money available for Third Trusts in small amounts. Nearby Virginia and Maryland Trusts placed { Prompt charges. KAY-SClgNlDER-KAY Co. ( on improved property. service and nominal ncerperated Investment Blig. Frasklin 513 T — Prompt Action First Mortgage Loans Lowest Rates of Interest and Commission Thomas J. Fisher & Company, Inc. 738 15th Street “NEVER A LOSS” Of As Mnch As a Singls Penny ia Fithor Prineipel ‘er fatoreet —19 an omstanding recommendation of the First Mortgage Securities WE OFFER Notes now avallable in amounts of £100.00 sad up. o Bearing 643 % For Full Particulars Apply LOAN DEPARTMENT CHAS. D. SAGER 954 14th St. N.W. Main 36-37-38 Interest BY WILLIAM F. HEFFERNAN, NEW YORK, April 11,—Nelther in activity nor the extent of the price changes could today's session on the curb exchange be compared with the other markets The oll shares did practically noth- Ing. Standard Oil of Indiana was steady just under 62, Standard of New York was no more than firm, Humble NEW YORK, April 11.—Following is an official list of bonds and stocks traded in on the New York Curb Market today: Close. 2 Fed Sugar 8s € Galr Robt 7 2 Lig Win Lig r I Manitoba Power 7x @ Morrin & Co Tlos 2 Nat Leather An 14 New Orl Pub 7 Nor St P AL 3 Ohlo Power & 1 Penoock 0l Corp 6x 2 Pub G & E Ua 5138 Pure Oil Co 6138 bawsheen 7 U & Rubber 6%s U S Rubber 85,5 T 8 Rubber 6is '3 U S Rubber fis v FOREIGN BONDS. 1 City of Pogota 8s.. B4iy st R R of Fr 7u. . Salesin STANDARD OIL Is§ units. 500 Anglo Am Ol . 60 Buckeve P L 80 OCumberland P 1. 10 Gal Sig Oil ptd oid 1500 Humbie Ol & R 101 P L .. 300 Tmp Oi1 Can new 800 otl Pet Co Ltd . 60 % O Ohio prd 20 Nwan & Fineh 600 Vacoum 0il is ST Sales in INDEPENDENT OLL 87 Bundreds 22 Allen 011 T Ark Nat 1 Oarib 8y 1y Gt Rerv 3 Cit Serv new wi it Serv pfd 3 (it Serv “B" P Peer 0l Corp. 2 Pennok Oil Corp 5 Red Bank 0Oil 3 Royal Can 0 & Ret Ryan Com Salt Ck Conm Salt Ck Prod Tidal Osage Oil INDUSTRIALS Adirondack Am Am Am Am P 3 Am Power 3 Money to Loan Secured by first deed of trust on real estats Prevailiog lnterest and commlesion FEDERAL - AMERICAN NATIONAL BANK RESOURCES, $14,000,000 1315 F Street JOHN POOLE, President The Prudence THE EVENING STAR, WASHINGTO NEW YORK CURB MARKET Received by Private Wire Direct to The Star Office Oil acted similarly and the independ- ent shares remained in the back- ground. Public utilities and radio stocks gave no further indication today of any resumption of their recent up- ward movement. American Light and Traction was heavy, and Lehigh Power securities, following Thurs- day -point gain, quieted down. Mapin Sar 1 Chatterton & Son.. 21, Com Power Corp... 11813 14§ Com Pow Corp Dfd 82 ' 1 Cons (ias Balt new 347 t Baking A. ont Baking B 3 Dubiller ¢ & Radio 14 Durant Motor. 5 Happiness Can St A 3 Hazeltine Corp ... 4 Inter Contl Rubber. 1 Midvale Co 5 Nat Pow & Lt 14N Y Tel Co pfd 1 Nor States 1" 4 Rem Nop Typ Co A 1 Reo Mot 1 Seagrave Corp yoe R C 1 Thompson R O vte 1 Tullp Cup Corp 3 Union Carbide 5 ) & pom A 3 & 1t Cor A 2 n_St Gypsum Co 140 TS Lt & Heat.. 1 & s Ware Rad % 1 Warner Bros Pic A 1, Western Pow pfd 5w LS mew vie Sp St Oo 3 Wilson Co new wi.. 2 Wils Co A new wi 3 T W 0 new pfd. . { 1 Yel Taxi Cor N o a0y 190 Diamond BIk Butte jold M Lid In 5 Wenden Copper Important Consideration When planning to in- vest funds, whether for one's self or as trustee, is to be assured that the | BRINCIPAL 1S THOROUGHLEY SAFEGUARDED. This characteristic is a prime factor in all of our FIRST MORTGAGE INVEST- M and stili they earn the liberal rate of 6%% in- terest. Denominations $100 up. Partial Payments May Be Arranged Mortgage Investment Dept. EHANNON & L«UCHS] 713 & 715 14th St. N.W. M. 2345 Company, Inc. of New York Invites Applications for Construction Loans Long-Term Refinancing Amounts of $50,000 and over # FRED T. NESBIT Loan Correspondent Investment Bldg. Main 9392 MONEY TO LOAN ON FIRST MORTGAGES AT CURRENT RATES OF INTEREST Ronld Ho Hopron ¥ % 7527 Conmectiout SHuonus TWO HARRIMAN HEIRS OUT OF RAILROAD LIFE By the Awssciated Press. NEW YORK, April 11.—With .the retirement of Julius Kruttschnitt as head of the Southern Pacific svstem on May 31, two direct heirs of the Harriman Railroad dynasty will have passed from active railroad life. Rob- ert S. Lovett, who carried on the Har- D0 riman traditions in the Union Pa- cific as Mr. Kruttschnitt did in the Southern line to the coast, surren- dered active management of the for- mer road more than a year ago. Unlike Mr. Kruttschnitt, however, he did not sever his relations com- pletely, retaining his post as chair- man of directors, but delegating all executive authority to the presiient of the road and the chairman of its finance committee. HUDSON INCOME JUMPS. NEW YORK, April 11.—The Hud- son Motor Car Co. net income for the quarter ended February 28 jumped to $3.826,932, equal to $2.90 a share, compared with 31,301,363 in the pre- ceding cotresponding period, or 98 cents a share. Y American cows produced 206,000,000 pounds of milk that was canned and sent to other countries 1ast year. FINANCIAL, STEEL SCRAP CHEAPER. NEW YORK, April 11.—The price of heavy melting steel scrap has dropped to $17 a ton In the Youngstown dis- trict. Query the Promoter, Determine how much of his own money the promoter is putting into his scneme before you decide to risk yours. Don't take his word for it— make him prove it. FIRST MORTGAGES| FOR SALE Denominations of §250, $500, §150, $1,000 and upwards { 62% Made on Property in District ot Columbia $500 can be no more safely invested where it will bring 614 % inter- est than in Quarter aiin OUR FIRST MORTGAGES Century 7 secured on improved Washing- Without a Lass. Let us give ton Real Estate. vou your choice of many such loans, which we have to offer. B. F. SAUL CO. Main 2100 925 15th St. N.W, All of this stock has been sold. version privileges) manufactured to date are still in service. Sells, have been as follows: than $6.00 per share. 3 puarchese and capitalization, current Fabilities of $16,664,993. called for by the Allotment Certificates. The Ingal procecdings by owrcounesd. The National City Company Lehman Brothers Marshall Field, Glore, Ward & Co. Kissel, Kinnicutt & Co. Cassatt & Co. W. A.Harriman & Co.,Inc. Paine, Webber & Co. Clark Williams & Co. 6%, Sinking Fund Gold Debentures, Due May 1, 1940 Preference Stock ($7 per anmum cumulative dividend ). Common Stock Class A (No Par Value). ... Common Stock Class B(No Par Value) ..... Common Stock Class A and Common Stock Class B are identical in all respects except that holders of Common Stock Class A have no voting power for any purpose and that holders of Common Stock Class B have exclusive voting powers for all purposes. 1,035,000 additional shares authorized for conversion of 6% Sinking Fund Gold Debenturea. ended Dec. 31, 1919 e cn cwemen smenen 31, 1920, s creemvemeances 31, 19214 coe emwmmewevaneve 31, 1922. creenemmeenccseve 31, 1923, cpeusvancancawese 31, 1924 eanewmeamcancees Net earnings, before deducting federal income taxes, for the quarter ended March 31, 1925, amounted to profit from sale of idle real estate). These carnings were 177% of net income for the first quarter of 1924 and earnings of the corresponding period of any other year since 1920. Net earnings for the year ended December 31, 1924, as shown above, and after making aflowance for interest on $75,000,000 6% Sinking Fund Gold Debentures shortly to be outstanding and federal income taxes at present rates, were $13,582,720, or more than 23 times the annual dividend requirements of $5,950,000 on this Preference stock. Eernings for the year ended December 31, 1924, adjusted to'the basis of the capitalization tojbe existing on issue of this stock, were equivalent to $3.80 per share of total common stock to be then outstanding and for the quarter ended March 31, 1925, were’at the annual rate of more The capital stock of the company (no par value) will be issued almost entirely against 2 value in the balance sheet. A balance sheet prepared from the books of Dodge Brothers as of April JAMES F. SHEA | 643 Louisiana Ave. N.W. We Want to Buy Good Second Trust Notes We negotiate First in any amount. 56 Years’ Proven Safety Trusts Lowest rates. Banking Trust and Mortgage Co. Suite 20, 1410 G St. N.W. Franklin 5794 LOANS We will gladly receive and give prompt attention to applications for Loans on Washington Real Estate Current rates of interest Should you have Money to Invest we can also take care of you. Our experience, ex- tending over a period of Thirty-Five Years 56 Years Without Loss to An Imvestor =-0Sures. YOue protection. : Percy H. Russell Co. 926 15th St. N.W. OR 56 years, Swartzell, Rheem & Hensey Company has offered safe First Mort- gages to the most conservative investors. This record speaks for itself. Safety and Income always go together when you invest in our Notes. At this time you can secure 61 % interest on your funds invested in the securest type of First Mortgages. We suggest that you communicate with us and take advantage of this opportunity for the safe investment of your funds, with a substantial interest return. Swmmu.l{‘ EEM ¢ HENSEY Co. ' BoT-5"Spreer. N W ((nshixybn.D.C. This advertisement appears as 2 matter of record. 850,000 Shares April 9, 1925 Dodge Brothers, Inc. Preference Stock (No Par Value) Cumulative dividends $7 per share}per annum Dividends payable quarterly Janwary 15, April 15, July 15 and October 15. Entitled to $103 per share and accrued dividends in case of Tiquidation. Redeemable as a whole or in part on any dividend date upon 60 days’ notice at $105 per share and accrued dividend. The National City Bank of New York, Transfer Agent; Guaranty Trust Company of New York, Registrar. Dividends free of the present Federal Normal Iacome Tax. Each share of Preference Stock will carry as a bonus one share of Common Stock Class A—both deliverable as provided in Preference Stock Allotment Certificates CAPITALIZATION (with con- 850,000 shares 1,500,000 shares* 500,000 shares e Frederick J. Haynes, Esq., President of Dodge Brothers, Inc., writes as follows: BUSINESS Dodge Brothers, Inc., has been incorporated under the laws of Maryland to own the business and all of the assets (excepting $14,000,000 cash) of Dodge Brothers, a Michigan Corporation, the third largest manufacturer of antomobiles in the world. From 1914, when 249 cars were sold, to March 31, 1925, sales have aggregated 1,286,793 cars for a total amount (for cars and parts) of $1,105,027,599. In compari- son with this sales volume, loss from bad debts has amounted to $32,141, sales of cars by the factory being for cash only. Distribution is effected by more than 5,700 sales and service representatives throughout the world, of which 4,778 are in the United States and Canada. Advertising expenditures, in addition to amounts expended directly by dealers, have totaled more than $12,000,000. The beginning has been to produce a car of superior quality, of stable design, for a low price. Records indicate that approximatety 90% of all cars EARNINGS The business has never had an unprofitable year. Operating results for the six years ended December 31, 1924, a8 certifred by Messrs. Haskins & RetEarningsbedare dodtmcting Federal Income Tases $24,194,352 18,601,780 2,801,370 19,054,096 11,590,637 10,965,440 $6,291,544 (not including $644,633 exceeded by approximately 40% the No. of cars Sold 121,010 145,389 92,476 164,037 179,505 122,236 the power, which is not assigned earning 1, 1925, and adjusted to give effect to this ion, shows cash and United States securities aggregating $24,155,004, and total current sssets of $52,422,321 against MANAGEMENT A representative board of directors will be elected. No change is contemplated in the present active executive personnel. PREFERENCE STOCK ALLOTMENT CERTIFICATES Delivery m the form of Interim Receipts of Dillon, exchangeable for Preference Stock Allotment Certificates of the company, when and if issued and received. Such Allotment Certificates will provide for payment to the holders of dividends upon the stock called for thereby, and delivery on or after May 1, 1926, but not earfier except at the option of the company, of certificates for the Preference Stock and for an equal number of shares of Common Stock Class A, company agrees to make application in due course for listing on the New York Stock Exchange the Preference Stock Allotment Certificates, the Preference Stock and the Common Stock Class A. Read & Co., will be made on or about April 16, 1925. These Interim Raceipts will be W affer this'steck in the jform ef Preference Stock Allotment Certificates for delivery when, as and if isswed and received by us, subgect to i hoapprovaiol Price $100 Per Share Farther information is contained in our circular which may be had upon request. Dillqn, Read & Co. Blair & Co., Inc. Brown Brothers & Co. A. Iselin & Co. Janney & Co. Hemphill, Noyes & Co. J. G. White & Co., Inc. Anglo London Paris Co. White, Weld & Co. J. & W. Seligman & Co. Bonbright & Company, Inc. A. G. Becker & Co. Edward B. Smith & Co. Ladenburg, Thalmann & Co. Bernhard, Schiffer & Co. Scholle Bros. ‘The statements herein hawe”been accepted by s as accurate but are in 00 event to be construed as representations by wa.