Evening Star Newspaper, January 12, 1926, Page 23

/ FINANCIAL. THE EVENING ROAD SATURATION Than Highways, Motor Experts Announce. BY J. C. ROYLE reaching the Why Auto ) 1, but even if this Is done obile manu the situa 1 transport bu nd there lroads and street the countr d the truck ie transportation fam fore another year is done. Bus Service Expanded. One outstanding feature of the work of the advisory council of the street railway rding to director , has been the rapid u;-ur\ nat worried | nd bus servic I nning cts and h numt dealers ident of | )\K com. i eve appeal . where record sales Some men and hard be tious in you invest—inv get stung good n to be cau- s. Before LOSSES TURNED TO PROFIT. BOSTON, January 12 (Special). —Plants_ of l!u\ s Manufac- turing Co. at 75 per cent ca and for the past two months has been on a profitable b In the fiscal year ended Octobe t, the company reported a loss of $154,852 after ail charges. BUYS $1,000.000 BUILDING. First Mortgage Notes For Sale In Denominations of $100, $250, $500, $1,000 AND UP 637 Interest Secured on D. C. Real Estato Wm. H. Saunders Co., Inc. Established 1887 1433 K Street N.W. L TP 75 &7 | H =) oA S e w vo“ Pennsylvania-Ohio Power & Light Co. Flut & Ref. Mtge. 12 % Gold Bonds Dln' July 1, 1954 Reported net earnings of the Company for the year ended November 30, are 245 times annual i terest charges on the total mortgage debt. Price to yield about 5.559, Circular on request The National City Company | Both Imports and Exports Are ALARMS AUTO MEN:- Cars Bemg Bunlt Much Fasterl, ports amounted to sisted principally of steel sheets, fire clay bricks, cornsturch and steel bars. FOOD EXPORTS HEAVY. 65 % First Morteage Notes 713, 715 and 717 14th St. N.W. WESTERN UNION’S NET Money SHOWS STEADY GAINS \EW YORK, January 12 (®).— GAIN IN SHIPPING. STAR, WASHINGTON, D. Secured by firat dawl of trust on real estate, Prevailing tnterest and commisaion Jooeph 1. Weller 42 to Loan 0 Wash. Blde.. Oth & ¥ Larger at Baltimore. to The Star. January 12. iings of the Western Union Tele- sraph Co., which recently increased the annual dividend rate to $8 a share, continue to show marked improve- ment_over 1824. Operating income for November, 1925, rose to $1.2 §55 compared with' $961432 in’ the same month the year before, bring- ling the total for the 11 months of to $14,703,873 against $11.987. in the corresponding period of Imports s in, tobacco, tinplate, lubricating oil, | NEW RECOR.D FOR TANKER. January 2 (Spe- last week of line from Baton William Rocke- the record for that * to this port. Other ,000 barrels of crude ampico ard 70,000 from Conser _ti\'c appraisal, high-class security, reputable office ;_md management, maximum interest paid the day due on our M. 9080 When Placing Your January Funds Be Sure That They Yield Not Less Than 62% The Whether you can get this rate of 5 interest and be certain of the safety | First of your principal depends entirely upon who and what are back of the Mortgage investment. w Notes we are offering at this rate of Interest are ample se- curity for the loans, and are backed by our own conserva apprasals. Ask Our Mortgage Investment Department for Details [SHANNON: & LUCHY] Main 2345 Washington—741 15th St. N.W. Telephone—Main 3176 NEW ISSUE 70,000 Convertible Preference Shares NS AT LOW RATES FRED T. NESBIT INVESTMENT BLDG. Main 9392 really want is— An investment that is safe beyond the shadow of a doubt—with the full return on your money to which you are justly entitled. Such are our doubly secured First Mortgage Notes, bearing 6'2% and issued in Convenient Amounts of $100, $230. $500 and $1.000 BO2EHELPS Main 9300 1417 K Street Write for illustrated booklet Business Proper- ties are the axis upon which big business turns. is the of big busi- Chandler-Cleveland Motors Corporation A DELAWARE COMPANY Capitalization Fanded Debt......0... ... $4 Convertible Non.cumulative Preference shares (no par value) Common shares (no par value). .. Authorized To be Issned None None 350,000 shares 350,000 shares 1,000,000 shares 280,000 shares The above amount of stock to be issued is on the basis that the shareholders of The Chandler Motor Car Company and Cleveland Automobile Company convert their shares on the basis of each share of Chandler being converted into one share Preference and each share of Cleveland common being converted into one share Common. The proceeds of the sale of the above 70,000 Preference shares will be used to acquire the Preferred stock of Cleveland Automobile Company and for expansion. Mr. F. C. Chandler, President of Chandler-Cleveland Motors Corporation, summarizes his letter to bankers as follows: | - Preferences No dividends may be declared on the Common shares in any calendar year until dividends Wnng $4 per callable share shall have been declared on the Preference shares in such year. The Preference shares are at $85 per share, and in event of liquidation of the Company, are entitled to $50 a share in priority to the Common. They are convertible at any time, share for share, into the Common stock. The Company will retain in its treasury 350,000 shares of Common stock to provide for future conversion of the Preference shares at any time, and 370,000 shares for future corporate uses. All shares have equal voting power. History The Chandler-Cleveland Motors Corporation has recently been formed to unite more closely Cleveland Autome- bile Company and The Chandler Motor Car Company. Heretofore, these two companies had no connectionjother than the fact that they were both organized by my associates and myself, and that they have several directors and many stockholders in common. Eventually, it is expected that a consolidation of the two companies will be effected. This should result in substantial economies, should strengthen their trade position, and increase their earning power. The cars produced by the two companies do not compete in price but supplement each other. Daily output capacity of the combined plants is three hundred cars. Earnings Earnings of The Chandler Motor Car Company, Cleveland Automobile Company, Automobile Machine Company, and their subsidiaries, for recent years have been certified to by Messrs. Ernst & Ernst. On the basis that the above capitalization had existed in the years 1923, 1924 and 1925, the earnings of the Chandler-Clev eland Motors Corpora- tion would show as follows: 1925 Net after taxes. ............. A A S e $2,700,020* - Per Preference share (350,000 shares) . . 771 Per Common share (280,000 shares) after allowing for $4 Preference dividend .|. .. ......... 4.64 *December estimated. 1924 1923 $1,427,899 $3,206,142 4.08 9.16 0.10 6.45 The Chandler Motor Car and Cleveland Automobile Companies combined have paid since organization more than $14,500,000 in cash dividends in addition to large stock dividends. Assets Consolidated balance sheet as of November 3o, 1925, as certified to by Messrs. Ernst & Ernst adjusted to the issu- ance of 350,000 Preference shares and 280,000 Common shares, shows current assets of $8,640,272 including $3,036,916 of cash, compared with current liabilities n{ $4,562,822 leaving net quick assets of $4,077,450 equivalent to $11.65 per share for the 350,000 Preference shares. Net tangible assets including net quick, were equivalent to $33.14 per share for the 350,000 Preference shares. Appraisal value of all the combined companies as given by the American Appraisal Company is in excess of $7,691,400 or more than book values. . Future Prospects The present models of both the Chandler and Cleveland cars are meeting with remarkable public demand. The initial quarterly Preference dividend will be paid April 1, 1926. We have sold the above 70,000 shares at $48 per share HORNBLOWER & WEEKS The foregoing statements are obtained from official sources and are believed to be correct. FEDERAI. AMERICAN NATIONAL BANK RESOURCES, $14,000,000 * 1315 F Street JOHN POOLE, President C., TUESDAY, JANUARY 12, l"'irst Mortgage Notes || or. wvalaile Tunds for invedtment THOS E. JARRELL | Member Washington Real Estate oard 6% | First Mortgage Notes Secured on D. C. | Improved Real Estate .] every instance these | | loans are based on our u conservative valuations, we have invested our money Moore & Hill, Inc. ; 730 17th Street N W. 1926. Consult us if you have Houses 1l The New York Life Insurance Co. First Mortgage Loans On Improved Real Istate in the District of Columbia and Nearby Maryland Suburbs for 3, 5 or 10 Year Periods. v By Yo O i, = ‘ RANDALL H. HAGNER & COMPANY MORTGAGE LeaN GORRESPONDENT 1321 Connecticut Avenue 23 Offers to Make Apartments ON APPROVED SECURITY Apply Telephone Main 9700 The Margin of Safety Behind Straus Bonds ACK of every Straus first mortgage bond, there always is amargin of safety to protect investors and the Straus record. First, there must be an ample margin of actual value based on a conservative appraisal of the property which secures the mortgage. Secondly, and perhaps even more important, the earnings of the property must be large enough to insure prompt pay- ment of interest and principal when due. These margins of safety are so carefully measured and so rigidly applied by the highly trained mortgage loan experts in S. W. STRAUS & CO.S offices throughout the nation, that in 44 years no investor in these mortgage bonds ever has lost a dollar or waited a single day for payment of interest or principal due. When you have money to invest, Straus first mortgage bonds will always offer you the highest interest rate compatible with Straus safety. Write for current offerings yielding 5.75% to 6.40%. Also ask for BOOKLET 763-G S.W.STRAUS & CO. INVESTMENT BONDS BSTABLISHED 1882 929 FIFTEENTH STREET—WASHINGTON Telephone Main 5547 44 YEARS WITHOUT LOSS TO ANY INVESTOR INCORPORATED W o have purehased this entire isrus, e bedions to be accurate sources, New Issue—$1,100,000 "7 7, FIRsT MORTGAGE BONDS SECURITY—A first mortgage on the land and building of Huntington Hall, a modern, fireproof, 16-story apartment structure, Phila- delphia, Pa.; also in effect a first lien on the carnings of the property. Monthly payments into a sinking fund reduce the mortgage to $660,000 before the final maturity. The prop- erty has been appraised by two of the leading realtors of Philadelphia; by Mr. Edgar G. Cross at $1,850,000 and by Mr. W. Edwin Blair, for Blair, Inc., at $1,825,000. LOCATION—Huntington Hall will occupy the site of the former residence of Mr. E. T. Stotesbury, one of the leading bankers of the United States, at the northeast corner of Twentieth and Walnut Streets, in the cele- brated Rittenhouse Square section of Phila- delphia. The lot contains approximately 5,940 THE F. H. SMITH CoO. Founded 1873 SMITH BUILDING, WASHINGTON, D. C. NEW YORK — PHILADELPHIA — PITTSBURGH — MINNEAPOLIS NO LOSS TO ANY INVESTOR IN 53 YEARS Address... on the informahion con"ined in this sehich inform net by wa, it represents the opinion of this House; and ths opinion of its Counsel on. Huntington Hall PHILADELPHIA, PA. . Bonds Dated January 2, 1926 * Denominations $5,000, $1,000, $500, $100 * Maturities 2 Years to 10 Years square feet. The property is but eight blocks from the world-famous City Hall, and hence within easy access of the city’s business and financial center. EARNINGS—Gross annual earnings are esti- mated by Mr. Edgar G. Cross at $225,000 and by Mr. W. Edwin Blair, for Blair, Inc., at $223,900; net annual earnings are estimated at considerably more than interest and sinking fund charges combined. SAFEGUARDS—These bonds are protected by all of the safeguards that have resulted in our record of no loss to any investor in 53 years. PRICE—Bonds offered, as and when issued, at par and accrued interest, to yield 7% in all maturities. For descriptive circular, send your name and address on the form below. adosrbisement, ormation esboe sctred and sompiled romw