Evening Star Newspaper, January 5, 1927, Page 11

FINANCIAL. * BITUMINOUS COAL SUPPLY PILING UP Weather and Industrial Con- ditions Continue to Favor the Consumers. BY J. C. ROYLE. Special Dispatch to The Sta; “EW YORK, January tainty is facing the and in temporarily zet. Spot east one a Uncer- coal industry consequence there exist at least, a buyers’ ma ar durin bituminous prices lower than Anthracite down appreciably in but demand has fa’ no diffi- buy ce consumers have buyi they are future requirements is the situation which will ont the United Mine Worker: the anthracite and the btiu: minous delegates meet in Indianapolis At that time, the stermine the the operators 2 up for ust before April 1. mines have resun operations at This has resulted in ening demand export. Forelz reduced purc e northwest has practi- been shut by the close of navi gation on Great which will not reopen until Spr Turn Out Much Co: The bituminous prod of reducing output sharp with thes instead in con , are stil a matter of policy Continued opera tend to put the of mind open, and if strik April 1 al would find on the part of s tlon, it is felt, miners in or The railroads to some slight certain amount several marketing . s ped without definite consignees are accumulating in the yards and at ports and some transportation men predict ht shor of coal-carry- ing equipment if this is allowed to * continue. Storage piles of soft coal are grow- ing. The reserves, . however, are smaller than usual when a strike is in prospect. It is estimated reserves today approximate 47,000,000 tons. Interests Are Diverse. The diversification of interests be- tween the bituminous and anthracite miners may produce a complicated situation at the Indlanapolis meeting. Neither the anthracite miners nor the operators have recovered from the losses entailed by the anthracite strike. And bituminous coal at the present moment is competing¢in the markets with anthracite. However, industrial activity now is such that a large amount of fuel is sure to be In demand, and mining men, therefore, anticipate a better- ment in the coal situation around February 1. The outlook for bunker coal is good since Atlantic -Coast ports are filled with vessels waiting to load grain and cotton: are There is a coal in s ship. BRASS PRICE REDUCED. NEW YORK, January 5 (#).—The American Brass Co. has reduced prices on all products one-quarter of a cent a pound. prices | € EVERYMAN’S INVESTMENTS BY GEORGE T. HU Reasons for Stock Dividends. The fact that stock dividends do not increase a shakeholder’s equity in either the assets or the profits of { the corporation was pointed out in| | the pr a | The Steel 40 pe | is an illustration and the spe tion for the rise which followed the announcement can be justified only on the theory that the same dividend will be paid on the new stock as on the old. This is true of man dividends, in so far in_effect to a higher di old stock Directors ofts other stock n consider it number of vidend, rath- | and there i, This does United States the case of many not apply, Steel, but i public utilities for instance, a corpora- ying $8 on its shares and | 1t Increasing the rate | might be the excuse for a political attack, and so the same object is attained by splitting |up the shares, giving two new for each one of the cld, and ma the s0 | that the shareholder has his income | increased just as i the dividend had ised to §10 without any split-up There is anoiher advant at the lowe! stock makes | er for < : United St t is the s ) tion to mak common stock s id for on the install rice at which the stc overned by the mw small in es Steel nual custom n offer mployes to be ent plan. The k is offered is quot | 1 in something other to buy y low-priced t that looks high, even though the valu is the same. It will probably be sim {pler to interest more workers | United States Steel at §116 than ‘(160 a share. 'This is, of course, on W | em in at the assumption that thi: offer- ing is of the new stock, not the old. (Covyright. 1927.) R {BALTIMORES CUSTOMS [ RECEIPTS SET RECORD | Special Dispatch to The Star. | BALTIMORE, January 5.—Customs receipts from duties on imports at Baltimore during 1926 set a new record with an increase of nearly per cent over 1925, the previous high year, according to figures of Charles H. Holtzman, collector. The figures were: $19,617,- increase, 125.13; $5,552.520.70. 5 Baitimore, according to United States Shipping Board figures for the fiscal year ended June 30, 1926, was third of the ports in the United States in the tonnage volume of its export and import trade, being surpassed only by New Orleans and New York It was the onlv port of the three to show a gain. 1926, 1925, $14,064,604.43; ADVANCED TO PRESIDENCY. DETROIT, Mich., January 5 (P).— W. A. Wheeler was advanced to the presidency of the Paige-Detroit Motor |Car Co. by the directors vesterday, | succeeding H. M. Jewett, who was named chairman of the board of di- rectors. FRENCH LOW BIDDERS. NEW YORK, January 5 (@).— French manufacturers of cast iron pipe, represented by B. Nicoll ‘& Co., were low bidders on 3,000 tons for Bos- ton. The next lowest proposal was made by Warren Foundry and Pipe THE Money to Loan Secured by first dec Prosaling_interest and Joseph 1. Weller 420,V Draw Interest Fy |CENTRAL t Deposits made before Jan. 10 | m dan. 1. Tam st | G N HOME i proper TBAD. te Small Loan Co. Furniture Loan Procurement Co. N Real Estat We will gladly receive and give prompt attention to applications for Loans on Washington Real Estate Current est vou. —insures Percy SLOANS Should you have Moncy to Invest —we can also take care of Our experience, ex- tending over a period of Thirty-five Years H. Russell Co. 926 l St. N.. C., WEDNESDAY, JANUARY Loans at 5% to 5127 " Economical Conditions Tyler & Rutherford 5, EVENING STAR, WASHINGTON, D. R R R P O Trompt Action d of trust on al estate. commission, nel 1927. First Mortgag~ Loans| Lowest Rates of Tntcrest and Commission Thomas J. Fisher & Company, ___ 738 15th Street. SAVINGS 6]/ 7 CONSULT US 2/0 i {S’O“Ve future Notes " Washington. D. Loan Correspondent of the FOR SALE 1520 K St. N.W. Main 475 = 2 in Washington INVESTORS BUY —tor_sate tnvestmens ot Fone wintne Toed % o il by, investing art 3 » y Mortgage - H- Saunders Co., ‘!;n'\mded 1887, 1433 5.‘« R Rpaas +seseeei/| Mutual Benefit Life Ins. Co. FIRST MORTGAGI;S Newark, N. J. 6Y2% - 5 PE_OF SECURITY ! ERVATIVE In denominations of $250, $500, $750, $1,000 and upwar Listed stocks and bonds bought and rituated Columbia. JAMES F. SHEA FURNITURE = — WE PAY MORE INTEREST ON SAVINGS ACCOUNTS Than Any Other National Bank Interest on DAILY Balances Come in and let us explain ) & Commercial Nat'l Bank 14th and G Streets Resources $17,000,000 R. GOLDEN DONALDSON. PRESIDENT 643 Louisiana Ave. NW. “WE” Keep on Hand For the clients, 2 Gilt-Edge First Mortgage Notes in amounts of $100 up bearing 6. interest Start the New Year in the Direction of Thrift | sold on commission. | e ; Accounts carried on a conservative marginal basis. convenience of our limited amount of 7% We invite correspondence on securities ' Harriman & Co. Members N. Y. Stock Exchange 111 Broadway, New Yerk Bonds rates of inter- BUY AN INVESTMENT No form of security safer Few as safe CHAS. D. SAGER 924 14th St. N.W. Loan Department Main 36 WASHINGTON OFFICE 729 15th St. N. W. Telephone: Main 1603. vour protection. Pot. 6167 First [Jortgage Secured by busi- ness properties. Priced to yield better than 79%. Marlow-Beech Corporation 1615 Conn. Ave. $1,000,000 Barber & Ross, Inc. Ten-Year 6'2% Sinking Fund Gold Bonds To mature January 1, 1937 Principal and Interest payable in New York City in United States Gold Coin without deduction for Normal Federal income tax up 10 20. State taxes refundable: Connecticut and Pennsylvania up to 4 mills per.annum; Maryland up to 434 millé per annum; Virginia up to 535 mills per annum; District ‘of Columbia up to 5 mills per aonum on taxable value of the Bonds; and Massachusetts Incomé Tax up to 6% ber annum on the interest of the Bonds. Redeemable as a whole or in part, at the option of the Company, at any time on Bot less than 30 days’ notice at 105% and accrhed interest. Coupon Bonds in dsnominations of $1,000 and $500, e as to principal only. THE NEW YORK TRUST COMPANY, Trustee Sinking Fund estimated to redeem this entire issue before maturity CAPITALIZATION (wpow completion of present fnancing) Ten-Year 61,% Sinking Fund Gold Bonds (this issue) Preferred Stock, 7% Cumulative (par value $100) Common Stock (no par value) The following information has been furnished by Mr. Samuel Ross, who is to be Chairman of the Board: \ BUSINESS: Barber & Ross, Inc. occupies a seven-story building in the heart of the downtown business district in Wash- ington, D. C., for their Wholesale and Retail Hardware business and general offices. They are also engaged in Structural Steel Fabrication; Millwork for the Building Trades and Builders’ and Contractors’ supplies in Washington, D. C, and the surrounding territory. Establishetl in 1876 with nominal capital, the business has shown a conservative and steady growth, and today it is the largest in its field within Washington, D. C., and the State of Maryland. Years of out- standing leadership in the Washington territory have firmly established the name of Barber & Ross with the building trades and with every industrial and h&usehold user of hardware. EARNINGS: To be dated January 1, 1927 Interest 1o be payable January 1 and July 1. To be Authorised énd Ontstanding $1,000,000 500, ,000 50,000 shares The business has operated at a profit in every year of the fifty years of its existence. Net sales from Jan- uary 1, 2 to November 20, 1926, and net earnings for that period (adjusted to give effect to management salaries on the new basis in lieu of compensation based on profits and after deducting income to reflect the elimination of certain investments and other assets, an average adjustment for the period of $91,788.48 per annum) before providing for interest on this issue and Federal income taxes, as certified by Messrs. Price, Waterhouse & Co., were as follows: Net Sales o above “Bomds Co. Baltimore is' taking bids on 1,200 tons of 4 to 20 inch pipe. MORTGAGE BONDS CALLED. A Fool and His Money. The fact that a stock certificate 1s printed in fancy green scrollwork is no proof that it {s worth any more Year ending December 31 , o 483,919.18 119,717.21 899,273.47 768,560.10 $2/ 3, 2, 1925 i & . TN s 3, 1926 (10%; months to Nov. 20) .. o 3,208,790.13 $354,253.99 501,785.54 54 388'502.32 ; 552,422.56 395,020.33 than ordinary wall paper. Thousands of people in Washington would have saved their money if they simply had asked their banker to tell them what +he knew of some supposedly wonder- NEW YORK, January 5 (#).—New Jersey Power and Light Co. has called for redemption on February 1 all of its outstanding $2,689,000 first mort- ®gage 5 per cent bonds, at 105 and ac- crued interest. 611% Guaranteed First Mortgage Notes Secured by Improved D. C. Real Estate Written Guarantee Backed by More Than $4,000,000.00 Resources as to: 1st—Security of Principal 2nd—Attractive Normal Income. 3 3rd—Prompt Consecutive Interest Payments. 4th—Full Return of Principal When Due. 5th—Freedom From All Care and Management. Real Estate Mortgage and Guaranty Corp. L. E. BREUNINGER, President 26 Jackson Place ful investment. 72 INTEREST WITHOUT INTERRUPTION Paramount in investment is the absolute safety of your prin- cipal. With that established be- vond question, the interest yield becomes a determining factor in vour choice. When vou choose our 6Y /0/. 270 FIRST MORTGAGES —vou not only avail yourself of a promised substantial rate of interest. You rest assured that vou will derive that interest. For a Third of a Century B, F. Saul Co. interest checks have been in full, on time, dependably. B. F. SAUL CO. Main 2100 925 15th St. N.W. THERE IS NO SUBSTITUTE FOR SAFETY .Pogue, Willard & Co. . MANAGEMENT: Net Sales and Net Earnings for the 10%; months ending November 20, 1926, were at the annual rate of $3.600.000 and $445,000, respectively. [} ? Average net earnings for the five-year period shown above of $448,392.88 are equal to over 6.8 times interest charges on this issue of Bonds. On the above basis combined annual interest, and Sinking Fund Payments sufficient to redeem this entire issue by maturity, have been carned 3.2 times for the five-year average. » 4 SECURITY: In the opinion of counsel, these Bonds will be the direct obligation of the Company, and the Indenture will ~ provide that no mortgage except purchase money mortgages may hereafter be placed on any of the property of the Company without equally securing these Bonds., According to the balance sheet as of November 20, 1926, giving effect as of that date to the organization of the present Company, issuance of these Bonds and the transactions above referred to, as certified by Messrs. Price, Waterhouse & Co., current assets are $1,837,085.21 as against current liabilities of $173,172.48, a ratio of over 10 to 1. The balance sheet shows $1,700 of net assets for each $1,000 of Bonds. 7 E EQUITY: These Bonds will be followed by $500,000 Seven Per Cent Cumulative Preferred Stock, and by 50,000 Shares — of No Par Value Common Stock, on which latter it is expected that dividends at the rate of $3.50 per share per annum will be inaugurated. The present day market value of these two classes of Stock is approximately $2,375,000, representing an equity of that amount junior to tl;is issue. SINKING FUND: The Indenture under which these Bonds will be issued will provide for a fixed semi-annual Sinking — ___ Fund of $25,000 ($50,000 per annum), plus an additional Sinking Fund based upon Earnings, to pur- chase these Bonds in the open market up to the redemption price, or if not so obtainable, by call at such redemption price; all bonds acquired for the Sinking Fund to be cancelled. The Combined Sinking Fund is estimated to be sufficient to re- deem the entire issue before maturity. PURPOSE: This financing will permit the executives in active charge oi the busitess to purchase a controlling interest from Mr. Samuel Ross, formerly the sole owner (thus superseding the old system of management bonuses). The five executives who are at present buying a controlling interest in the Company have been in active charge of the business for a period of years, are in large measure responsible for the progress and suc- cess of the business and will continue its management. These men have been identified with the business for over twenty years. The Board of Directors will include representation, of the Bankers. 2 GENERAL: While most cities in recent years have experienced real estate and building booms with wide fluctuations —__ in values and activities, Washington has been peculiarly free of forced development and with no outstanding Government building has progressed steadily and the large industries the progress of the City has been sound and steady. appropriation of $50,000,000 to be spent in building construction in Washington Congress at its last session authorized an within the next five years. Application will 'be made to list these Bonds on the Washington Steck Exchange Price 99 and Accrued Interest, Yielding over 65%% New lssus Exempt from the present District of Columbia Intangible Personal Property Tax and Normal Federal Income Taxes 18,000 Shares Barber & Ross, Inc. Common Stock (no par value) Transfer Agents: egistrar: R AMERICAN SECURITY & TRUST Cf., WASHINGTON, D. C. FEDERAL-AMERICAN NATIONAL BANK, WASHINGTON, D. C. Average net earnings for the 4 years 1035 months’ period ending November 20, 1926, as certified by Messrs. Price, Water- house & Co., after deducting interest charges and preferred dividends upon the capitalization of the Company and Fed- eral taxes on the present basis, were at the annual rate of $5.98 per share on 50,000 shares of No Par Value Common Stock. It is expected that dividends at the rate of $3.50 a share per annum will be presently iuuiuinud; *Application will be made to list this Stock on the Washington Stock Exchange Price $37.50 per share : his stock, whew, & and i) isswed and received by us, subject to the i o, St M 0 S0 A 9 e o e M, Whi o 3 new Y Interims - Mackie, Hentz & o. New York Philadelphia Crane, Parris & Co. Wuhiqlton. b. C. The siatemwents hertn huve beem sccepted by ws as acrurate but are in =0 event 5 be construed @ spressntations by wa. | L Inc. | FINANCIAL. The New York Life Insurance Company Offers ; 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 1 / Office Buildings Apartments 5 2% Business Properties RavpDarL H. FAGNER & COMPANY Incorporated MORTGAGE LoaAN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 Homes OT the volume of capital, but the proper management gov- erning the Investment of that cap- ital, determines the dependability of your income. Our Financial Specialists will be glad to help you solve your in- dividiual Investment Problems. No client of ours has ever lost a penny through investment in our First Mortgage Securities WALTER S. PR ATT, , Secretary 4ith YEAR COM ETED Surplus .$1,106,495.76 Save With the Equitable Systematically mind the your through to save sys- Equitable and plan has mé with the hearty ap- proval of thousands of Washingtonians because it helps them to get ahead more Join today. 915 F Street quickly = f | Now 54 YEARS of Proven SAFETY HE F. H. C ::ru Company, founded in January, 1873, now marks the completion of 54 years of continuous and success- ful service to first mortgage investors. This has a particular significance, at the beginning of the January investment period, as a guide to placing your 1927 funds. When you buy Smith Bonds, you are dealing with one of the oldest and largest real estate bond houses in America. You are obtaining for your furids the safeguards maintained by a house that has demonstrated its good faith and integrity, its technical knowledge and practical experi- ence; which has ample capital andextensivefacilities;and which has a record of No Loss to Any Investor in 54 Years Mail the form below for current offer- ings of Smith Bonds, which pay 6!/, %, and for copiesof our two booklets. 0/ Smith Bonds, in $100, $500 and $1,000 denominations, are sold outright or under an Investment Savings Plan that pays the full rate of bond interest. F. H.SMm1TH Co. % Founded 1873 Smith Building - Washington - [Main 6464] NEW YORK CHICAGO PHILADELPHIA BOSTON ST. LOUIS PITTSBURGH BUFFALO ALBANY MINNEAPOLIS