Evening Star Newspaper, January 19, 1927, Page 11

THE EVENING STAR, FINANCIAL. SERVICE EXTENDED. WASHINGTON, D. T, FINANCIAL, | A Fool and His Money. = | The fact that a stock certificate i3 : printed in fancy green scroliwork is Baltimore-Miami ILine Will Take | no proof that it {s worth any more | s { th inar: 1l paper. Thousands in New York Also. ? hington ‘would Sbsota Diabesirs i f they simpiy ha riass w18 er to teil them what BALTIMOT some supposedly wonder- Baltimore and amship | ful Investment. Co. has announced th a line from N t will operate | 3 | Beach. The ry : | First to West Palm Money to Loan ! 1 i ot oavy, Wesink,| o iz, o ot ot o f was expressed in this firm when 5 sound to I m ‘*y"‘l”;:‘\’m' ‘ Joseph I. Weller ‘20N 50 5 ¢ 3% ||| Hiee . WE PAY MORE INTEREST ON SAVINGS ACCOUNTS Than Any Other National Bank in Whashington Interest on DAILY Balances Come in and let us explain - b Commercial Nat'l Bank 14th and G Streets Resources $17,000,000 R. GOLDEN DONALDSON. PRESIDENT 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 — e Ravpary ¥, Macwer & COMPANY Incorporated MonrTGAGE LoaN GORRESPONDENT 1321 Connecticut Avenue Telephone Main 9700 Confidence Foun n.w. Homes we loaned to home owners during the year 1926 millions of dollars under the METROPOLITAN LIFE INSURANCE COMPANY Tyler & Rutherford || LOAN PLAN." Mutual Penefit Life Ins. Co. | — - = 1620 K St. N.W. First Deed of Trust | REALTORS ~ LOANS 809 15th St. N.W. WEDNESDAY, JANUARY 19, 1927. Frompt Actton. First Mortgage Loans I O AN S Lowest Rates of Intcrest and Commission. Thomas J. Fisher & Company, Inc. - s 12N i We will gladly receive 4405000 0500000 and give prompt attention GV % CONSULT US to applications for 2 four sty i Yodk | | Loans on Washington Wi, H. Sauniers Co, . Real Estate . Current rates of intef- e T, 3™ est, Should you have 20044 Money to Invest —we can also take care of you. Our experience, ex tending over a period of Thirty-five Years —insures your protection. Percy H. Russell Co. 926 15th St. N.W. h eliminate vi will be every New York and Balti Leans at 57 to 5127 ¥eonomical Conditions SCRAP LOWER. Main 477 Reasonable Interest and Commi WALTER F. PRATT 17th YEAR COMPI 6,317.22 Surpius v Subscriptions for the 92nd Iscue of Stock Being Main 9486 Prompt Replies to Applications JAMES F. SHEA 643 Louisiana Ave. N.W. 1% LOANS NO APPRAISAL CHARGES —promptly arranged on houses, apartments and business properties in D. C. and nearby Maryland. Save Sy tematically | f—— : = —— in the Equitable ) sl e Save a portion of your New Year’ earnings system First Mortgage Loans NO FEES FOR SETTLEMENT LOAN DEPARTMENT W. L. King, Manager BOSS=MELPS FOUNDED 1907 1417 K Street—Main 9300 Hundreds of Wash- ingtonians have adopt- ed our plan, and rec- ommend it highly as a means to accumu- late money. Start to- day. 915 F Street INVARIABLE INVESTMENT A comforting sense of finan- cial security is the foundation for your choosing, as safest investment, our 6,9, FIRST MORTGAGES The “market” that secures vour principal here does not fluctuate; it is free from trade depressions; it is the constantly demanded market of Homes and conservative business properties. Amplifying this lack of varia- tion of your security is an un- varying interest yield assured by our record of “A Third of a Century Without a Loss to Any + Investor.” B. F.. SAUL CO. Main 2100 925 15th St. NNW. Applications Invited at 5% % On Improved Property ly in the [quitable. Watch how quickly 1t grows Construction Loans at Minimum Rates Glover & Flather | 1508 H St. N.W. A Third opa Century ANAGEMENT is the factor that determines whether or not an In- vestment is Profitable. Thor- oughly investigate any contem- plated medium. Before you in- vest your January Funds, in- sist on Insured Safety. Abso- lute Dependability, and an As: sured Annual Return. FIRST MORTGAGE INVESTMENT Without a All of This Stock Has Been Sold $16,500,000 Victor Talking Machine Company 7% Cumulative Prior Preference Stock Loss Par value $100. Preferred as to assets and dividends over the Convertible Preferred Stock and Common Stock. Cumulative dividends at rate of 7% per annum, payable quarterly February 1, May 1, August 1 and November 1 (first dividend payable on May 1, 1927). REdcemab{c as a whole or in part on any dividend date at $115 per share and accrued dividends, on not less than sixty days’ notice. Dividends exempt from present normal Federal income tax. NO SUBSTITUTE FOR SAFETY THERE IS A Sinking Fund equal to 3% of the maximum amount af Prior Preference Stock theretofore issued shall be set aside on or before January 31st in each year, beginning in 1928, out of surplus or net profits before dividends on the Conver- tible Preferred Stock and the Common Stock, to be applied during the twelve months following to the purchase of Prior Preference Stock, if obtainable at or below $115 per share. Amounts unexpended at the end of any such period shall be credited against the sinking fund requirements for the succeeding periods. Edward E. Shumaker, Esq., President of Victor Talking Machine Company, has summarized his letter dated January 17, 1927, copies of which may be obtained from the undersigned, as follows: If YouOwna DIVERSIFIED List of Bonds 1. Smith Bonds will increase your CAPITALIZATION In addition to $6,900 par value non-callable Preferred Stock Authorized 7% Cumulative Prior Preference Stock (Par Value $100). $20,934,000 $6 Cumulative Convertible Preferred Stock (No Par Value). . 122,115 shares Common Stock (No Par Value) T Rt *819,915 shares *Including 244,230 shares of Common Stock reserved for conversion of Contertible Preferred Stock **Including stock owned by Company and subsidiaries, as follows: $167,220 Prior Preference Stock. 975 shares Gonvertible Preferred Stock, 4,599 shares Common Stock. The Company hds no funded debt. Each share of stock has voting rights. The Prior Preference Stock, Convertible Preferred Stock and Common Stock are issued in accordance with the plan of recapitalization approved by the stockholders January 17, 1927, and do not represent new financing by the Company EARNINGS: To be outstanding® $20,934,000 122,115 shares 575,685 shares To Managers AND Men Who Sell known New York bond house. natural leader. a but who is of Net earnings for the 12 rs ended December 31, 1926, after reserves for depr on and Federal taxes, as certified by rs. Price, Waterhouse & Co., (including the Company’s estimate for the last three mont..s) were as follows: BUSINESS: Victor Talking Machine Company, incorporated - in 1901, is the largest manufacturer of talking machines and records in the world. We want a strong. courageous man the stuff of which Manage You will have th and unusually lar enjoying for many G We need Manacer and District Manager ability today more than we need sal but no man can start at the top in this organization who iz not willing and has not learned from the ground up. A or above preferred. Must show ability to make money and be a hustler from feet to brain. man we offer the ortunity to establish himself in his own a 1y and the e rv help and : we give our men, to make an unusually attractive income himself with full safety to the investor. The interest rate of 6'/,% on our cur- rent offerings of First Mortgage Bonds compares with current average yields of 4!/,% to 5'/2% on other classes of high grade investment securities. In addition, these 6!/2% issues have lib- eral State and Federal tax provisions. 2. Smith Bonds will strengthen your investment position re made. me splendid opportunity for quick rise From the beginning the Company has maintained-a potition arnings that the men now with us have been i of leadership through the excellence of its instruirnts*and records and through its success in securing the services of the Year Ended greatest artists under exclusive contracts. Victor records Dec. 31 constitute a collection of the world’s greatest music interpreted 1915 by the world’s test artists. ‘‘His Master’s Voice” has long 1916 been one of the known trade marks throughout the world. 1917 The Orthophonic Victrola and Electrola, introduced in the 155 latter part of 1925, and the Orthophonic Victor record, placed 193 on the market in the fall of 1926, embody the latest - developments in reproducing and recording sound, and represent the greatest advance in the industry since the invention of the talking machine. The Company also Year Ended Dec. 31 1921 1022 1923 1924 Amount $7,388,600 8,679,251 5,445,027 3,159,627 4,611,171 1925 4,800,357 1926 *Deficit after extraordinary charges an **Including Company’s estimate for last Amount $4,100,415 6,408,841 6,568,850 1,227,426 *5,532,253 ‘Their, security—first mortgages on J. D. B, P. O. Box 109, Wall Street Sta!:on New York, N. Y, PROPERTIES sold and exchanged An active department personal specialized under the direction of BEN T. WEBSTER Associates GUY BIRCKHEAD IRVIN EDWARD E. CALDWELL HUGH I JOSEPH J. CROWLLY E EDWARD S. HANDIBOE CHARLES B. NEWCOMB PHILLIPS CLIFTON THOMAS HENRY R. WASSER C. KOONES BOSS T PHE| PS FOUNDED 1907 Business Properties Department 1417 K Street—Main 9300 L modern, well-located apartment build- ings and office buildings—is an excep- tionally sound basis for safe invest- ment. Smith Bonds are protected by large equities, by ample earning power, by monthly sinking fund payments, and by other tested safeguards that have contributed to our record of No Loss to Any Investor in 54 Years Mail the form below for descriptions of current offerings, and for our book- lets, “Fifty-Four Years of Proven Safety” and “How to Build an Inde- pendent Income”. 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. THE F. H.SMm1TH Co. Founded 1873 Smith Building - Washington - [Main 6464] NEW YORK CHICAGO PHILADELPHIA BOSTON ST. LOUIS PITTSBURGH BUFFALO ALBANY MINNEAPOLIS oAddress... combines in a single instrument the Orthophonic Victrola and Electrola with the Radiola, manufactured by the Radio Corporation of America and its ‘allied companies. The instruments range in price from $1,000 for the largest combination machine down to $17.50 for portable Victrola ASSETS: Current assets on September 30, 1926, as shown by the consolidated balance sheet certified by Messrs. Price, Waterhouse & Ca., including $12,971,138 in cash, Liberty Bonds, Treasury Certificates and other marketable securities, were $25,129,913, as against current liabilities of only $2,817,249. Such net current assets exceeded the par value of the Prior Preference Stock. Total net assets, including land as appraised by James F. Baker Co., and buildings, machinery and equipment in Camden, N: J., the principal plant, as appraised by The American Appraisal Company, were $51,093,812, equal to about $246 per share of Prior ference Stock. The valuable patents, rights and trade names are carried at one dollar; the master records and matrices for its entire collection of records are likewise carried at one dollar. No valuation is included for goodwill. Al legal L] « Speyer & Co. Hallgarten & Co. Jackson & Curtis This Stock has been approved for listing on January 19, 1927, on the New York Stock Exchange. matters are subject lo the approval of our counsel, Messrs. Cravath, Henderson & de Gersdorff and Messrs. Pitney, Hardin & Skinner, and of counsel for the Company, Messrs. Hughes, Rounds, Schurman & Duwight. We offer the above Stock for subscription at $98 per share. ‘We reserve the right to close the subscription at any time without notice, to reject any application and to allot a smallg than applicd for. Temporary stock certiicates will be deliverable in the first instance on or about February 1, 1927, o ~mount Hayden, Stone & Co. Net earnings for the 9 months ended September 30, 1926, after reserves for depreciation and Federal taxes, as certified, were $5,195,054. For the entire year, net earnings, after reserves for depreciation of about $1,140,000, but before Federal income taxes, are estimated by the Company at $8,400,000 and, after such taxes, at $8,0004000, taxes being reduced by about $740,000 through allowance for losses in the preceding year. The net amount for 1926 without this tax reduction would be about $7,260,000, equal to approximately $35 per share of PriongPreference Stock. Since organization in 1901 the Company’s business has been profitable in every year with the single exception of 1925. In that year net earnings were $931,358 before writing off depreciation, losses due to the abandonment of old models, and extraordinary expenses incident to the development and introduction of new instruments and processes. The Company has paid about $37,500,000 in cash dividends. Since 1902 ('dsf\ dividends have been paid on the Common Stock in every year except 1926, and on January 17, 1927 a dividend of 8% was pai(l on approximately $35,000,000 par value of Common Stock outstanding prior to recapitalization. A stock dividend of 41633% was paid in 1911 and of 600% in 1922. . J. & W. Seligman & Co. Chas. D. Barney & Co. Hemphill, Noyes & Co. The statend#hts contalned herein are received {rom sources believed to be refiable but oot , and are in no event to be construed as representations made by us.