Evening Star Newspaper, November 4, 1926, Page 15

FINANCIAL. I Public Utilities | 103 NEW YORK, November 3 (Spectal). —American Water Works reports sharp gains in its statement for the 12 months ending September 30 last, given out today. Including the sub: sidiaries, net income after ta 1 terest and deprecfation was $3 against $3,07 in the pre September net 1 compared with $2 yme of 015 in This | up the record of the first six months of 1926, when net exceeded | the 1925 results by nearly a third. | Net power output also has consistent- 1y increased every month this year over the same period in 1925. The Northern States Power report over both flxed charges and preferred lend requirements. Net was $18,- 12, out of which interest took 028, leaving a balance of $7, 84. In preferred dividends $3,- 708,481 was paid, leaving a balance of $3,618,653 for common dividends, re tirement reserves and surplus. The 7 per cent preferred stock, which is re- deemable at 110, is quoted in the New vork market at 101 bid, 103 asked, and elds at the offered price 6.80 per nt. The Southwes ity Ice Co. re- ports income of $857,509 for the period from May 15 to September 30, and net Income available for interest, d tion and Federal taxes of 54 er deduction of operating expenses. Immigrants have taken $7,508,000 for the vear ending September 30 shows the wide margin in earnings into Palestine to invest mostly in land and bullding. THE EVENING STAR, WASHINGTON, A Third of aCentury’s Experience The Management of Rentals has been a specialty with us for a Third of a Cen- tury. We are in intimate contact with the Wash- ington realty and rental field. Have us analyze vour property and find just what it needs to show you the best re- D, € REAL ESTATE LOANS 5%9 FRED T. NESBIT 1010 Vermont Ave. Main 9392 | 61/2% CONSULT US | P00 00000000000000000000 —for_sdfe investment of your surplus funds. Look Fi 1o the future by investing TSt \Wm. H. Saunders Co, Mortgage I Notes ne. Founded 1887. 1433 K st. n.w.. Washington, D. C. THURSDAY, NOVEMBER 4, 1926. Secured by first deed of t Prevailing intereat an Joseph I. Weller We will gladly receive and give prompt attention to applications for Loans on Washington Real Estate Current rates of inter- est. Should you have Money to Invest —we can also take care of you. Our experience, ex- tending over a period of Thirty-five Years —insures _vour protection. FIRST TRUST ISTRICT PROPERTY Provident Mutual Life Insurance Company Funds THE McLEAN CO. FINANCIAL. FIRST MORTGAGES FOR SALE 6%2% ™ R In denominations of $250, $508, $750, $1,000 and upwards, se- cured” on improved real estate situated in the Distriet Columbia. JAMES F. SHEA 643 Louisiana Ave. N.W. LOANS | Percy H. Russell Co. I turn. Our service pays. 926 15th St. N.W. F. SAUL CO. 925.15th St. NJW. The New York Life Insurance Company First Mortgage Loans On Improved Real Estate in the District of Columbia and Nearby Suburbs in Montgomery County, Maryland 3 Years, 5 Years, 10 Years RANDALL H. HAGNER:® COMPANY Incorporated ‘MORTGAGE LoAN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 HAaRrrIMAN & Co. Members: N. Y. Stock Exchange 111 Broadway, New York B. Main 2100 difference g s 1n securities And, if Investment is to be suc- cessful, this fact must be recog- nized. “Securities™ are Securities only when they are proven safe, —Now occupying their New Offices— 729 15th St. N.W. WASHINGTON, D. C. We have a most attractive and unique investment oppor- tunity combining the safety and soundness of a good bond | with the profit ing possi bilities of a booming industrial | stock. The investment bears the commendation of leading bank: ing and investing authorities. | Correspondence is invited ||| from real investors who can | recognize an exceptional of- || fering. Address Box 356-J R WASHINGTON BUILDING (now being erected) 15th, New York Ave. and G St. N.W. Homes A £ ts o partments dependable and remunerative. Fir;t Mortgage Telephone Main 1603 Notes Contracts for leases now being made for preferred locations in Washington’s finest office, bank and store building. LENDING MONEY ON FIRST MORTGAGE New Israe The services of our architect will be available to early lessees in helping them plan their offices. $1,500,000 United Porto Rican Sugar Company Five-Year Secured Convertible Sinking Fund 7% Notes Dated November 1, 1926, Dwe November 1, 1931, Coupon notes in demominations of $1,000 and $500 registevable as to principal. Interest payable May 1st and November 1st without Mumén the Normal Federal Income Tazx not in ezcess of 2%. Personal property tazes wp to 5 mills (or equivalent in State Income Tazes) will be refunded by the Company u; presentation of tax recewpt or satis- factory equivalent theveof within 60 days of time such tax is due and paid. Redeemable in whole, or in part by lot We offer you every possible ad- vantage in financing your building. Profitable suggestion for the im- provement of your plans, without obligation. Ioans made without “red tape or delay.” Low rate of interest and com- mission. ’EAVER .BRO REALTORS B. F. SAUL -CO. Main 2100 925 15th St. N.W. EXCLUSIVE RENTAL AGENT Brokers 809 15th St. N.W. Protected Main 9486 Dated October 1, 1926 Inserest payabis semi-annuelly A in Germany affifiated with the Central changeable smd registeradle a3 to principel The Protestant faith thirds of the total in most cases of the existed in Germany for over four $2,500,000 Protestant Church in Germany /4 elfare Institutions Authorized $5,000,000 pril 1 end October 1. Central Union Trust Company of New York, American Trustce hundred years. (Central-Ausschuss fuer die Innere Mission der deutschen evangelischen Kirche). 7% 20 Year Secured Sinking Fund Gold Bonds Due October 1, 1946 jeemadle in whols or in part b 102 om or after October 1, 1931; &t 101% om or after Octoder 1, 19324 " @ 101 on or after October 1, 1033; at 100% om or ater October 1, 1934; t 100 om or after October 1, 1935, in euch cas tive Simbing Pund commencing October 1, 1928, suficient to vebirs entire jssme by maswrity by redemption by los @t 100 and eccrwed interest or in liew of Sinking Fund payments bonds mey be delivered to ths Sinking Fund ot par. Coupon Bonds in §1,000 end $500 demominstions imser. only, Principal and interest payabdle in New York without deduction for amy presens or fubwre German tazes in United States Gold Coin of the standard of weight and fimemess csisting Octoder 1, 1926. with ecorned interest. Camwle- Hilfskasse Gemelnnustsiger Wohlfahriseinrichtungen Deutschlands, G. m. b. H., German Tyustee Geheimer Konsistorisirst Professor D. Seeberg, Prasidewt of the Obligor, swmmarises his letter a5 follows: tes in Germany, and is professed by about tion. The official church of most of the German utheran faith. The Lutheran faith, the oldest of the Protestant faiths, has ,000,000 perecns or two- tates is Protestant, and ‘These four centuries have produced the present stability and the sound financial basis of the Protestant Church in Germany. OBLIGOR: These Bonds are the direct obligation of a corporation, founded in 1849, which binds the principal Protestant Welfare, Educational and Religious associations in Gérmany into a powerful unit: Central Committee for Welfare Institutions of the German Protestant Church . (Central-Ausschuss fuer die Innere Mission der deutschen evangelischen Kirche). This Committes is recognized by the Protestant Church and by the German Qovernment as the official financial and administrative representative of the German Protestants in weifare matters. The Protestant Welfare Committee, such as hospitals, asylums, homes for the blind, crippled, old peopls, travelers and convalescents, total over 3,900 with over 223,000 beds and employ over 50,000 people. The estimated value of real by these Protestant institutions is at least $275,000,000 and the estl- property owned mated annual gross revenue is $40,000,000. The individual institutions will be liable to the extent that they receive or guarantee reloans. PURPOSE AND SECURITY: The Central Committee (the Obligor) will reloan the net proceeds of these Bonds to it Welfare Institutions, Associations, Parishes and Synods throughout Germany having in each case a value of at least four times the principal amount of the reloan, or against a aguinst first mo es on t lisn e reloan. on all taxes Jeviable by the subborrower, which taxes must be in excess of at deast four times the service of the relo Furthermore, the majority of the reioans will be guaranteced by a guaranties All obligations, mortgages, tax liens and ncially responsible body. the reloans will be held securing as collateral for this loan. Applications for reloans out of the proceeds of these Bonds have tral Committee as followst (Reichsmarks) [ tin, pay interest and sinl We e aduised shet the ond Thess Bonds ere o s whola or in part, to frst instance. SOURCES OF REVENUE: subborrowers of this loan. including d Taxes can be levied, under German law (Art. 137 of Constitution) b‘.:n.h ‘These taxes, which under State laws may be 10%, and if required more t 1 assessed each individual, are collected for the Church, hrle? by ’ovemnuma.l officials. Subborrowers who give as ivice of security a first lien on their tax recei] counsel, assess sufficient taxes to enable them to of the amount of the Bonds of this i Porisher to which loons wil be The of able dsowe Wl be ‘o Homt, TaekeTS sotwn ot Hew Tork (B, end D hen, as end if iswed end scsepted by we and swbject o the spprovel k:lbn’h —L- QM!.I-II:,M the rubscription M:dm”fi-« withowt mobice. Reloans Against Mortgage Security 6,604,000 Property Vaive 42,990,000 Pa; tion_on_buil king fund on their subloans. revemues of the Obligor ers mot subjoct bo. and equif must, according to a¢ and possesses ssue) which can be used to pay interest and ADMINISTRATION: Each of the reloans must be approved by an Administrative Committee of five members, of whom will be appointed by the fssuing houses. e i chorge nder ads out of the. proceeds of Tl & - ’f:"l-. ot authorise ewy interferemce with the ~h for m':’-h':f'm"u- Total Service of Reloans 838,790 Reloans Against Taz Liens 2,133,400 the German Co-Trustes recetved by the Cen- Subberrowers Totel Gross Revenue 12,800,000 ents from insurance companies or tax receipts make up most of the revenues of the ch subborrower must be entirely self-supporting and must pay interest and sinking fund on its reloan at least quarterly in advance. The German Government by law (dated July 19, 1911) requires each worker earning under 250 Marks a month to pay, jointly with his employer, premiums to an insurance company estal Government. The insurance companies in turn pay the institutions stipulated sums per occupied bed, calculated to cover it and interest and sinking fund on supervised or controlled by the tions. sh or diocese upon its parishioners, , of the direct local and State taxes The Obligor itself has available for the service of the loan substantial revenues derived from income ies and from other sources, a revolving fund amounting to about $1,300,000 (5: sinkin coumsa. Price 98 and interest, to yield 7.19% Howe, Snow & Bertles Ames, Emerich & Co. Redmond & Co. ajormation containgd Meresn has, bu large ITET SN rned 1 , boen trensmmitted by coble ond the ions by w1 W ressrve the right bo g fund on these Bonds. Dewes and thet the revemmes ellers Ovgosisations, ':3»..“. -.a-'n-n-d-m Dewes rt-,'-uumb—u l’ -m.flmmlmbtmollu"lfl’..l.-mm smbrcriptions Interim R-umn” deliverabls m the @ mbject bo codle ervers. contonts of this advertisemont Solioned All comversions from German to l’fldl‘dutmhwhn-d-.‘l!&hh!:m for Sinking Fund purposes only, u; 60 days notice (during which period the right of convergion continues) at 102% and aoccrued interest, which mm.'f:}."a«mdu at the rate gf % of 1% during each subsequent year to & ménimum premium of 1%. 3 Authorized $2,500,000. To be presently issued $1,500,000; Union Trust Company of Maryland, Trustee The_following information is summarized from a letter of M. A. Walker, Esq., President of the United Porto Rican Sugar Company. PROPERTIES The important group of properties which the United Porto Rican Sugar Company controls are advantageously located in the eastern part of Porto Rico. The companies comprise a complete producing and operating unit with adequate land of very high quality, modern equipped sugar mills with total capacity of about 500,000 bags per annum, their own railroads with ample equipment and their own terminals with excellent harbor facilities. The properties include over 16,000 acres of land. The cane lands are among the very best in Porto Rico. They are adaptable to the.raising of tobacco or other staple crops and are readily marketable for such purposes at prices which would average conservatively $250 per acre and which independent of other valuable factors of safety should be sufficient to considerably more than cover the amount of the Company’s outstanding note issue. SECURITY These notes are the direct obligation and only funded debt of the United Porto Rican Sugar Com- ; pany whose outstanding Preferred and Common Stocks represent a recent cash investment of $2,250,000 ranking junior to this issue. They are further secured by pledge with the Trustee of : () An equal'face amount of notes representing the only funded debt (except purchase money mort- gages of $12,600) of the Juncos Central Company, one of the principal subsidiaries of the United Porto Rican Sugar Company, the value of whose assets alone have been conservatively appraised, upon completion of this financing, in excess of $6,000,000 (including net quick assets of $725,- 000), or over four times the amount of these notes to be presently outstanding. More than a majority of the Common Stock of a profitable operating Company (Central Pasto Viejo, Inc.) which is being acquired out of the proceeds of this note issue. (b) EARNINGS For the nineteen years of its existence the principal subsidiary of this company (The Juncos Cen- tral Company) whose notes as above stated are specifically pledged as security for this issue, has always operated at a profit, and for the past ten years earnings, before depreciation and income taxes, have been as follows: - * 1916... 1917... 1921 ..cceecomencncnces $251,603.50 370,536.97 719,688.04 1925..... From the above it wil d that for the past three years, which cover one of the most unprofitable periods in the history of the sugar industry, the earnings have averaged $481,338.74, or over 4}; times annual interest requirements; and after income taxes earnings have averaged $422,870.44 or over four times interest require- ments on this issue. ' In addition thereto the earnings of the United Porto Rican Sugar Company from other sources should be over twice the interest requirements of this issue of notes. It is estimated that even under the prevailing low prices of sugar, savings resuiting from unified coatrol and management and the institution of modern scientific methods will bring such earnings to over $10.00 a share. PURPOSE OF ISSUE The proceeds of the present financing will be used to acquire more than a majority of the Common Stock of a profitable operating Company (Central Pasto Viejo, Inc.) and for further development and extension of the various subsidiaries of the United Porto Rican Sugar Company. CONVERTIBLE FEATURE On and after January Ist, 1927, each $1,000 note is convertible into 20 shares of Common Stock of the United Porto Rican Sugar Company or is convertible into 20 shares No Par Value Participating Cumulative Preferred Stock, which while outstanding is in turn coavert- ible into Common. Stock share for share prior to October 1st, 1928, and thereafter on the basis of three shares of Preferred Stock for two shares Common Stock. The Preferred Stock is eatitled to annual cumuletive divi- dends of $3.50 per share and after the Common Stock has received $3.50 per share in dividends, it partici- pates tlll,Lamil the Preferred Stock has received a total of $5.00. This conversion privilege should prove a very one. ‘ SINKING FUND The Indenture will provide for a Sinking Fund equal to 25% of the net earnings of the Junces Central Company, to be used by the Trustee for purchase of notes in the open mar- ket up to the then current call price. If not so obtainable, the notes to be called by lot at such pfiog, MANAGEMENT The management of the Company will be in the hands of men long associated in the sugar 3 business and the Board of Directors in the hands of strong financial interests who own a very substantial amount of Preferred and Common Stocks of the Company. GENERAL Porto Rico is a United States territory and is governed by the same form of laws. Raw sugar J produced in Porto Rico enters the United States free of duty ranging from 1.76 to 2.20 cents per pound imposed on other foreign sugars. As a result of this advantage, the Porto Rican sugar companies have almest without exception been able to make money even during periods of depression in the sugar industry. Most of.the Porto Rican sugar companies, especially those under American control, are sound financially and have paid dividends over a long period of years. LISTING Appliu.tion will be made to list this issue of Notes as well as the Preferred and Common Stocks of the United Porto Rican Sugar Company on the Baltimore Stock Exchange. Price: 10014 and interest to yield about 67%% STEIN BRoOS. & BOYCE ROBERT GARRETT & SONS Baltimore—Washington— Richmond Baitimore POGUE' WILLARD & Co. New York hm““i‘wh-hwh—-*bfi“—_