Evening Star Newspaper, June 28, 1926, Page 23

FINANCIAL. COLOMBIA FACTOR IN OIL INDUSTRY Some of Central American Wealth to Raturn to U. S. dustry finds itsélf at the moment. Production of crude oil within the nited States is about 15 per cent lower than a year ago, while gaso- line is estimated at about 20 per cent heavier. What the South American produc- tion will do, however, will be to stimu- late trade with that section. This will affect practically every line of manufactures. Sale of South Amer- ican oil will put South American countries in a position to buy Amer- fcan goods. Shipments of Columbia Oil to New Orleans already have begun, and the Andean National Corporation, which controls the harbor facilities at Carta- THE EVENING STAR, WASHINGTON, D. C. MONDAY, booking® orders from all over the world. ~ The exposition which 'is | strongly approved by Governmental departments, alms to assist in the | marketing of manufactured products | cheaply, quickly and efficiently. | Will Advertise Exposition. Buyers from South American coun- tries now are on thelr way to the | exposition, which makes it unneces- sary for them to journey to the fac- tories of the firms -with exhibits. A bill now is pending before Congress for appropriation of $150,000 to adver: tise the exposition. Most of the ad- vertising will be done in Central and ¢ Betore You Invest—Investigate. It's queer how careful » man can be after he's lost his money. Abe Martin says that a man who is not satistied with 6 per cent and his hev are saon_npart i Louis, the Mississippi_equipment of | the Government line will be increased by 19 steel barges and four towboats. Officials of the line say this will in- crease its carrying capacity 50 per cent and enable it to handle bauxite ore and ofl from South America. The line is also building a number of new barges, | The Crusader OIl Company has | completed its pipe line from Nor- | phleet, Ark., to Vidalia, Miss., on the | Mississippi River, a distance of 130 [ miles. This line will enable the com- pany to ship for export by boat. Ready Money to ~ Loan In Any Amount on 1st—2nd—3rd Trusts We provide suitable and satis- EE—— | JUNE 28, 1926. Money to Loan by first desc of trust on real estate. wvalling interest and commission_ Announcement o Joseph 1. Wellersgs, wesh: 1= § Some very special second commer- cial sites for sale in central north- al sites for laundries, ware- nufacturing plants, garages, One special site containing 15.000 ft. with two street fronts. Jos. A. Herbert & Sons 1013 15th St. N.W. July 1st! BINANCIAL., September lst ====! 23 Prompt Action First Mortgage Loans Lowest Rates of Interest and Commission ‘Thomas J. Fisher & Company, Inc. 738 16th Street Assured ‘: 2 factory solutions for yvour finan- clal problems. Immediate deci- sions and settlements. You will find our charges tne lowest. Realty Loan Co. 1417 F St. N.W.—M. 9411 Open Evenings for Manufactures. Stacks Bonds 0dd Lots Carried on Margin Buck & Company —RROKERS— Established 1916 312 Evans Building 1420 N. Y. Ave. NW. Tel. Fsanklin 7300 Direct Private Wires to New York gena, is planning extensive wharf | South America. tion to handle incoming as outgolg_freight. s in Latin Amerlcan com- merce ve been recorded in the reports of the New Orleans Perman- ent International Trade Exposition. There are already 200 exhibitors re- ported In the exposition, who are Your semi-annual imterest is coming due. In many instances your investments are ma- turing. Vacation approaches.' Of course, you can conveniently use your surplus toward making it a success. Have a vacation. Spend your “Vacation Budget” and reinvest your available funds in our FIRST MORTGAGE NOTES “The fact that you have a surplus to use is due entirely to safe investment.” BY J. C. ROYLE, Special Dispatch to The Star. NEW YORK, June 2 States of Colombis BWe Buyé-Sell | Unlisted | B3] Stocks & Bonds | Mehiman & Co. DBIOF SEN'W: M'8847 Company, operated ba The United for the first a factor in the of the United This has come Just an- water. Through the turning over of the Goltra Barge C ny of St. petroleum \ A States of America. about with the openinz, nounced, of the 400-mile pipe line which connects the oil fields of, Bar- ranca-Berineja with the port .of (2 tagena. Shipments from this field. which some engineers believe will puove one of the largest in the world. have heretofore been restricted by the eobstacles imposed by nature This y ction prom to find its way“in large part to the United S =ince American companies la interested in the proper lombian output bids fair to replace the drop in Mexican output, which has occurred since salt wat appear in some of the M and since political disagre checked foreizn exploitation of fean territory The volume of crude oil which will | find its way here. however, will not be sufficient to upset the advantageous position in which the petroleum in- | The New York Life Insurance Co. Offers to Make First Mortgage Loans ! Estate in the Dis- trict o imb i Nearby Suburbs m Mo omery County, Marvland 3,5 OR 10 YEAR PERIODS SY2% ON APPROVED SECURITY Apply RANDALL H. HAGNER & GOMPANY, MoRrTGAGE LoAN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9760 % . . Copqe 9 " Equitable Co-operative Building Ass'n JOHN JOY EDSON, President WALTER S. PRATT, Jr., Secretary Organized 1879 46th YEAR COMPLETED $5,031,811.86 Surplus $1,352,749.93 Subscriptions for the 91st Issue of Stock Being Received SYSTEMATIC SAVING $PELLS SUCCESS You've heard time and time again of people telling how they suc- ceeded. Saving a part of their pay was the most important factor in helping them attain their goal. You too can have a substantial fortune a few years hence if you make a regular deposit in the Equitable. Join today and save systematically. 915 F Street REAL ESTATE LOANS A }qu‘v;(;“:.q 5 1/2 % A 7. \NS AT LOW RATES ”I FRED T. NESBIT 1010 Vermont Avenue N.W. Main 9: i Assets On Impraved R Mortgage Investment Department SHANNON. & LUCHS) 713,°715 and 717 14th St. NW. Main 2345. f Mex Apartments Honees Office Buildings Business Properties We Buy and Sell . Liberty Bonds Treasury Notes ilmportant to Bond Holders Etc. If vou own any of the following bonds, we wish to remind you Bond Department | that they have been called for payment on July 1, 1926, on which . date interest will cease: The Washington Loan Y4 Million More| September 4/ Acadla Sugar Refining Co., Ltd, 1at Serial 7o, Levee District of Ar- Linwood & Auburn 1027:40. Series "G~ T ine ki ansas Gs. 1935, All of these bonds have been sold. $30,000,000 United Steel Works Corporation (VEREINIGTE STAHLWERKE AKTIENGESELLSCHAFT) 25-Year 6%2% Sinking Fund Mortgage Gold Bonds, Series A With Non-detachable Stock Purchase Warrants S To be dated June 1, 1926 Due June 1, 1951 Interest payable June 1 and December 1. Principal and interest payable in New York at the office of Dillon, Read & Ceo., in United States gold coin of the present standard. Bondholders may, at their option, collect principal and interest in London at the office of J. Henry Schroder & Co. in Pounds Sterling at the buying rate for sight exchange on New York on the date of presentation for collection. Coupon bonds in denomination of $1,000, regis- terable as to principal only. Callable as a whole, or in part by lot, on any interest date, after thirty days’ notice, at the following prices and accrued interest: to and including June 1, 1931, at 105; thereafter to and including June 1, 1936, at 103; thereafter to and including June 1, 1941, at 101; there- after prior to maturity at 100. The National City Bank of New York, American Trustee. Darmstaedter und Nationalbank Kommanditgesellschaft auf Aktien, German Trustee. Principal and interest payable, to others than citizens and residénts of Germany, without deduction for any tazes, past, present or future, levied by German Governmental authorities. The corporation agrees to provide a sinking fund sufficient to retire the entire issueof Series A bonds by maturity, by serni-annual call by lot (first redemption December 1, 1926), at 100 and interest, at the annual rate of $600,000 to and including December 1, 1938, and of $1,800,000 thereafter to maturity. and Trust Company 900 F Street 620 17th Street American Gas Co. 10-Yr. Secured 7s. 1934. | Athletic Association of the University of | Pa. Franklin Feld 1st 6s, 19 {‘ Avon River Power Co. 1st 613 Bertha-Ci mers Co. Equip. Tr. | “due1 Inel. % | Brevard Counts Power Co. 1st 6s, 1943 H.'ar]ml:l‘ln Manhasset Cotton Co., Ltd., 1st 8s. o itgPower & Light Co. 5-Yr. Co. 10-¥r. 53. 6% Ctfs., Subject to Supply Will Buy 2,000 Shares Miller Train Control at 2Ya Wire if interested at or close to this figure. Clarence Hodson & Co., Inc. 135 Broadway, New York Tel. Rector 2472 & Flectric & Electric Co. 10-Yr. (Nebraska) Sewer 6s. 10-Yr. 7e, 1 Teleohone & Telegraph Co. 1st & 930. | Community. Notes, 102 | Conzateum | 27-29, Light Co. Serial 7% 18t Serial 7s, due Cuyahoga Telephone Co. (now The Ohio Bell Telephone Co.) 1st Extended 7s, 1941. | Dalton, Adding Machine Co. Conv. 87 Notes, | Duke-Price Power Co.. Ltd.. 1st 6s. 1049. Frodonia Portland Cement Co. 1st 8%, » = 1 Freoa : 6/2% 50"25;:’3‘. ol (gL s Gilt-Edge First 20, ApaEt Mortgage Notes indenture dated July ‘20, 192 Available Hammett (Albert G). 1st 6138, 1019 In Amounts of $100 Up Secured G Portland Cement Co. Serial 6% 1931. Jewett-Gates Realty Co.. 1936 1f we can be of assistance in Manhattan Sq Corp.) 1st Marquette Cement Ms. Co. lst 6s. 1927-32, inel. Merchantville Water Co. 1st 20-Yr. Ser. “A" 6s. 1944, Micdle West Utilities Co. 8% Secured Notes, r. “C." 1941. Bedford Gas & Edison Light Co. lst eries “C" 68148, 1038 Jersey Gas & Electric Co. 1st 26-Yr. 6. 1941, Northern Outarlo Light & Power Co. 1st 6s. Penelec Coal Corp. 1st 20-Yr. 6%s. 1044 Penn_ Public Service Corp. 1st & Ref. Ser. TAT s, 1929, Penn Public Servics Corp. 15-Tr. Conv. 615 % Debs.. 1938. Pennasivania Electric Corp. 30-Yr. 6%s. Penneylvania Electric Corp. 30-Yr. 6s, 1958. Co. ot St. Louis. Mo.. 1st . incl. Rissman (Jacob L.). George Ecker & Levy 1st Serial Bonds. Series “B." South Dakota (State of) Rural Credit 5s. Series “G." 1928-38. Harry 1933 Southwest Ice Service Co. 1st Ser. “A™ 6 1940. (The) (now e el Telephone Co.) 1st 7s (Ex- tended). 1941 virginia Coal & Coke Co. 1st 30-Yr. 6s. 1930. Virginia-Western Power Co. Series “A" lst 6x. July 1. 1933. Weaver (W. T.) Power Co. lst 25-Yr. b Maryland Dairy. Inc.. 1st Conv. 7s, Western United Corp. Coll. 8% Notes. Series Yellow Taxi Realty Corp. 1st 6%s, 102738 collecting these bonds or making | suggestions for the reinvestment of the funds, do not hesitate to On Improved City Property lcommand our free service and facilities. Write, phone or call. From their letter to us, Carl Rabes, Esq.,and Dr. Ockar Sempell, Managing Directors of United Steel Works Corporation, sammariz ¥ostly Médidm: Priced as follows: THE COMPANY United Steel Works Corporation, which has contracted to acquire the principal fixed assets (except certain coal properties), the good-will and businesses of four leading coal, iron and steel concerns in Germany, viz., Rheinelbe Union, Thyssen, Phoenix and Rheinstahl, will be the largest industrial unit in Europe and one of the largest manufacturers of iron and steel in the world, ranking in productive capacity second only to United States Steel Corporation. Its coal properties will be among the largest in the world, with respect to reserves and present productive capacity. United Steel Works Corporation has operated these properties since May 7, 1926, and is at present producing approximately 40% of the entire German steel production and employs about 164,000 persons. i SECURITY ‘These Series A bonds, limited to $30,000,000, will be the direct obligation of the corporation, secured, in the opinion of counsel, by mortgage on fixed assets valued by Mr. H. A. Brassert, American consulting engineer, at $537,671,800 (including real estate and coal reserves), subject to about $70,600,000 of underlying obligations, including approximately $29,400,000 obligations under the Dawes Plan based on existing assessments. Against the properties presently to be mortgaged there may be issued (ranking equally with Series A bonds) a total of $105,000,000 of bonds, including the $30,000,000 Series A bonds, the equiva lent of about $30,000,000 of bonds proposed to be presently issued abroad, payable in foreign currency, and $41,180,000 of bonds reserved to refund underlying obligations. The valuation of $537,671,800 equals about 4 times the sum of all underlying obligations (including existing obligations under the Dawes Plan), these $30,000,000 Series A bonds and all other bonds ranking equally therewith (except bonds reserved to refund underlying obligations) issuable against the properties presently to be mertgaged. The pro forma opening balance sheet of United Steel Works Corporation, as of April 1, 1926, as certified by Messrs. Price, Waterhouse & Co., adjusted to give effect to-the issue and sale of the $30,000,000 Series A bonds and application of proceeds, shows gyrrent assets of $86,799,087, chudin; over $22,000,000 of cash, and current liabilities of $16,629,504,—a current ratio of m@ge than five to one. ESTIMATED EARNINGS As United Steel Works Corporation is not acquiring all the properties of each of the vendor companies and as the operation of the properties is being completely reorganized and unified, past earnings of the vendor companies while separately operated are not fairly indicative of the present earning power of the corporation. Mr. Brassert estimates that under the changed basis of operation net earnings of United Steel Worlks Corporation after depreciation,depletion and all other charges except interest, payments under the Dawes Plan and profits taxes, for the five years 1927 to 1931 inclusive, will average $28,311,358 per annum, or more than 3 times the sum of the annual interest charges on these $30,000,000 Series A bonds, on the bonds (about $30,000,000) proposed to be presently issued abroad, on existing underlying liens and estimated maximum annual payments under the Dawes Plan. This estimate makes no allowance for benefits expected to accrue to the German iron and steel industry apon stabilization of French and Belgian currencies, which Mr. Brassert believes will increase estimated earn- ings approximately 20%. i INDENTURE PROVISIONS Bonds in addition to the above $105,000,000 principal amount and ranking equally therewith, may be issued in series up to 2§ of cost or fair value, whichever is less, of additional fixed asets to be mortgaged, subject to indenture restrictions as to earn- ings and otherwise; bonds of the several series may differ as to maturity dates, interest rates, redemption, sinking fund, provisions for payment of principal and interest in different currencies and in such other respects as may be provided in the indenture;'certain provisions of the indenture may be changed on vote of 85% of bonds then outstanding; all as may be more fully stated and defined in the indenture. - PURPOSE OF ISSUE The proceeds from the sale of Series A bonds will be used for the completion of construction in process, for additional working capital and other corporate gurposes. = STOCK PURCHASE WARRANTS Each Series A bond will carry a non-detachable warrant, entitling the holder, on or before July 1, 1929, to purchase one share (par value 1,000 Reichsmarks) of common stock of United Steel Works Cor@ntian for $297.50, viz., 125% of par. Detached warrants will be issued in exchange for unexcercised warrants attached to" Series A bonds redeemed on or before June 1, 1929. It is expected that the common stock will shortly be listed on the Berlin Stock Exchange. . . \ These Series A bonds with warrants are listed on the Boston Stock Exchange and the cor- poration has agreed ta make appiication to list them on the New Yerk Stock Exchange. Conversions of German into United States currency at par of exchange (one Reichsmark equals 23.8 cents). The slalemenls quoled above, based in parl upon cable and radio communicalion, have been accapled by us ar accurate bul are in ne event lo be condirued as represenlations by us. b these bonds for delivery if, when and as issued and accepled by us, subject lo the approval of legal matlers b L Il iz expected Vel g et b it Pl ol ity Lebvoo b i Teccints of Dillon, Read & Co Price 96 and Interest. To Yield over 6.80% The above 12 subject lo a circular, containing further information, which may be oblained upen request. : | Diilon, Read Ry . o International Acceptance Bank, Inc. J. Henry Schroder Banking Corporation y Homes Safety and Service Our M. —with never a loss to a client of as much as in either principal or interest. Send for Booklet otto a single penny, CHAS. D. SAGER | ¢ Since 1006 | do not guarantee its authenticity | 924 14th 6% Investment Securities Phone Main 6117 The Standard Company 1010 Vermont Avenue Northwest We have compiled the above list from sources we regard to be reliable, but we M. 36 with safeguards that have resulted in BEFORE you accept a lower return than 6349 or 7%, on your July funds, give serious con- sideration to these facts. 1. The F. H. Smith Company has completed more than 53 years of continuous service to first mort- gage investors. : 2. It has sold first mortgage in- vestments, aggregating many mil- lions of dollars, to thousands of men and women, living in every state of the United States, and in 33 countriesand territoriesabroad. 3. On all of these investments, throughout more than half a cen- tury, every cent of interest and maturing principal has been paid promptly and in full. * * ¥ % The 634%.and 79, First Mort- gage Bonds that we offer for your July funds are created by the same standards of safety and pro- tected by the same safeguards that have resulted in our record of this record no loss to any investor in 53 years. ‘These bonds give you the strong security of modern, income-pro- ducing city property and, through monthly payments toward the annual reduction of the principal, your margin of safety is cone stantly increased. You may invest outright, in de- nominations of $1,000, $500 or $100, or you may use our Invest- “ment Savings plan to buy one or more $500 or $1,000 bonds by 10 equal monthly payments. Regular monthly payments earn the fullrateof bond interest. Matu- rities are from 2 years to 10 years. e 9 8" Send your name and address to- day on the form below for details of our July offerings, and for copies of our two booklets, “ Fifty- three Years of Proven Safety” and “How to Build an In- dependent Income.” THE F. H.SMITH CoO. Founded 1873 . SMITH BUILDING: Washington, D.C..~Main 6464 NEW YORK BOSTON BUFFALO PHILADILPHIA PITTSBURGH ALBANY MINNEAPOLIS NO LOSS TO ANY INVESTOR IN 53 YEARS PROTECT YOUR JULY FUNDS