Evening Star Newspaper, January 4, 1929, Page 15

e HIGH-GRADE BONDS - REGISTER DECLINE Decrease in Values Occurs Despite Drop in Call Money Rate. BY CHARLES F. SPEARE. Special Dispatch to The Star. NEW YORK, January 4.—A market s eccentric as the present one may be expected to act against. normally ruling influences as it did today when, with money easier, high grade bonds declined aithough they had gone up with money vates at a higher level earlier in the week. ‘This may have been more in antici- pation of firmer discount rates next week even thecugh rates for call money may be lower, the one circumstance af- fecting bond prices more than the other. Whatever it was, there was a_dis- tinc softer tone in high-grade bond issues, including Governments, legal rails and public utilities, and in some of the municipals. It is quite possible too that the demand whch came into the market in the early part of the week had been temporarily satisfied. Not only were the high quality issues v, but also a number of the junior rades, including the 4> and 5 per cent rails and some of the 5 per cent industrials. Again the volume of trad- ing was small, which limits the im- portance of the price trend as a gauge of investment conditions. The convertibles were under the in- fluence of an irregular stock market. Except for Public Service of New Jersey 41,s. which continued to make high records, there was nothing notable in this group. J. Kayser 5!,s gained 2 points, Anaconda 7s lost 315 early, but later showed a net advance, while others were from !, to a point lower, and Abraham & Straus 5'2s nearly 3 points. The speculative traction issues were heavy. The Italian convertibles showed losses of 1 to 3 points. There was not much change in the general foreign list. The Jargest advance in the South American group was in Uruguay 6s, which rose a point. Some of the French issues were up and others down. The same was true of the Belgian, German and Japa- - pese descriptions. This week's issues of bonds, amount- ing to less than $50,000,000, make a sharp contrast with a year ago, but fol- Jow out the tendency that has been becoming more pronounced since last June, and which resulted in a decrease of between 25 and 30 per cent in the total offerings of bonds and notes in 1928, compared with 1927, Shirt Company Earnings. NEW YORK. January 4 (®.— Manhattan _Shirt Co. of New York earned $3.37 a share in tne year ended November 30, against $4.50 a share in the preceding year. Group Insurance Gains. NEW YORK, January 4 (#.— More group insurance was placed in 1928 than in any previous single year, reports William J. Graham, second vice president in charge of group insurance in the Equitable Life Assurance Society. He places the total in force in the United States at approximately $80,000,000,000. i T Washington Stock Exchange SALES. ‘Washington Gas 6s A—$100 at 103!5. Potomac Electric 512% pfd.—10 at 108%2 30 at 108z, 5 at 10813, 16 at 108%, 1 at 10813, Y ‘Washington Gas Light—10 at 1051, 5 . at 10515, Washington Rwy. & Elec. pfd.—10 at 99°% * Washington Loan & Trust Co—14 at 523, 5 at 5231, Federal-American Co. com.—10 at 53%. Mel;gclrr:t‘hn]cr Linotype—4 at 104%, 14 at 104 National Mtge. & Inv. pfd.—50 at 5%. Peoples Drug Stores pfd.—20 at 128. AFTER CALL. Potomac Electric 5%:% pfd—20 at 1083, 50 at 108%, 30 at 1083, 50 at i Potomac Electric 65 1953—$500 at 108%. Polomac Electric 5%% ptd—100 a¢ b Washington Gas 6s “B"—$200 at 10515, _ Potomac Electric 6% pfd.—1 at 112. National Capital Bank—1 at 250. Washington Gas Light—20 at 105%. Riggs National Bank—1 at 557 1 at 360. Washington Rwy. & Elec. pfd.—10 at 997, 10 at 9915, National Savings & Trust—13 at 507. Bid and Asked Prices. BONDS. PUBLIC UTILITY. Bid. Asked. Potomac Elec. cons. tice, 65 1553.. Arig? e K MISCELLANEOUS, * & Ross. Inc., 6 Hotel STOCKC. PUBTIC UTILITY. & Tcca . D e Federal-American erty G 1 I N w 1K 0f Wilnington’ TRUST COMPANY. Blean Security & Trust Ov.e4s3 Trust. ants Bank e Natighal Savings & Trust. Tnion Trust b el Washington Loan & Tr o SAVINGS Bap¥ep! Bethesda.. Comm¥ree . Saving East Washing & v." & Commercid Nationul Union ; - JTITLE INSURANCE. Cotumbar i) 5 Titk MISCELLANEOUS. Barber & Ross Chevy Chase 1 Chestnut Fa Chesinut Farms Dai Co! 1 & C _FINANCIAD? THE EVENING STAR. WASHINGTON, D. €, FRIDAY, JANUARY 4, 1929. e wo_BONDS oo o] Received by Private Wire UNITED STATES, (Sales are in $:.000.) Sales. High. Low. Close Lib3% 207 9927 9925 9925 Lib 1s 71006 1004 1006 Lib 4th 43481382 1007 1005 1005 US3%s43. 17 9310 9810 9810 US3%s47. 5 9816 9816 9816 US4s1944. 510612 10612 10612 US4%ssa. 20 11115 11109 11115 FOREIGN. Sales. High. Low. Close. ArgentineSs...... b5 91% 914 9% Argentine 6s Ju 59.. 7 100 99% 100 | Argentine May '61. 5 100% 100% 100% Argentine 6s Oct 59 23 997 99 997y Argentine 514562, 13 96 95': 9 . 85100 993 100 1 71004 100 Australia 43%s56... 33 88l 874 Australia 58 1955... 10 96' Australia 58 1957.. 11 961 Austria7s......... 49 103 Bank of Chile 6145, 15 9715 97l Bank of Chile 6%s. 16 9915 93% 99 Belgium s 37 100% 100 10014 Belgium 6% 7 105% 105% 106% Belgium 7s 1 16 108 108 108 Belgium 781956.... 17 106 1057 108 6115 115 115 5 109% 109% 109% 15 96 941 95 30 103 102 103 9915 9913 9915 4% 94y 94 94n 101 102 6 108% 108 103% 1 1024 102t 102t 18 1005 100 100% Canada 58 1952.... 27 104 103% 104 Canada 5%s1929... 5 100% 100% 1004 60 +0 26 93% 92% 93n 7 934 925 eeenn 841025 101 Chinese Gov Ry 5s. 2 36 35 Colombla 6s Jan'61. 90 984 873 9574 1014 102 109% 109% 1 109% 1093 1093 5110 110 110 110 110 BE%, B8% 5 104% 1041 1041 7 103% 103% 108% 14 915 90% 91l 1 9 96 96 «o 9 1004 100% 100% 14 106% 106% 1064 7 107% 1074 107 14113 113 13 5 931 93% 934 3106 106 106 3 97 97 3 103 1 96 6 8 1001 100 100 22 100 99% 100 State 5s. 13 96% 96'3 96% . 26 97% 9Th 9Tn 95'3 95 95% 14 921 91% 924 + 34 101% 100% 101% « 16 991 99y, o 11 991 991y 19 Brazil 7s. Brazil 8s..... Bremen State 7 Canada 6s 1931 1024 90 9814 50% 9812 Copenhagen bs ct.. Cuba 5%s. Czeclio 83 1 Czecho 8s 1952 Danish Munic 8s A, Danish Munic 8s B, Denmark 415, Denmark 6. . Dutch East I 6s 62.. Finland 5%s Finland s £ 6345, Finland 7s.. Framerican 1%, German EI P 63 German 7 Ger Am Bank 7s.. Ger Gen Elec 78.... Greek 7. Haitl 6s. Hungary 73 Irish Fry Mexico 4s 04 asntd Mexico 45’10 asnt. ¥ Mexico 5s asntd. 1 34% Milan 6%s 11 90% 901y Netherlands 65 54.. 10 100% 100% 100t "1 tast Cuba Sug 7 3 | Netherlands 6s 72.. New So Wales 57: New So Wales 58s. Nord 6%s. . Norway 5s 1963. Norway 54s. Norway 6s 19 Norw: . Norway 6%s 1952.. Orlent Devdeb 6s.. 4 97% 971 97% Paris-Ly-Med 6s... 39 9915 991 % ParisOrleans 5338, 7 9 Peru 6s 67 wi. 30 89% 89 Feru 6s ctfs. . 39 90% 90 Perulys.. o 31074 107% 107% Poland 6s 40. 83 874% 99 10342 1084 7 97 7 101 100% 100% 9 102% 10214 102% 4 1024 102 102% 3103 102% 103 Queensland 6s. Queensiand 7, RhineWst EP 65’52 RhineWst EP 6s'53 27 96% RhineWst EP 78’50 2 102 Rio de Janeiro 6%s. 25 Rio de Jan 8s 1946. Rio Gr Do Sul 8s... Rome 6%s.... Sao Paulo 85 1936.. 1105% 105% 105% 15914 o1 91w 9 106% 106'% 106% 1 106% 106% 106% | 3 99 9 99y 4 106% Y B0k Bly 4 95% 951, 9514 2 90% 9% 90% 4 98 9 9 5 104% 104% 104% 9 102% 102 102 13 1 % 102% « 1094 Serbs Crot Slo Shinyetsu 63%s 52 Soissons 6s. Sweden 5%s. Sweden 6s. Swiss 518 1946, Swiss Confed 8: Toho El Pow 7: 1 99% 99u 99y Tokio 5%s51961.... 3 90 897 R9% Utd Kingm 5%s 29. 33 118% 1181 1181% Utd Kingm 63337, 8 104% 104 104 Uruguay 8s +e 2108 108 108 Yokohama 6s wi... 29 95% 95% 95% MISCELLANEOUS. Abram&Straus 5335 80 1177 115 AjJax Rubber 8s 1 1 110% 10! 115% | 104% 105 9Th 951y 1005 101 104" 104% 991y 99Y% 104 104 10474 105 9714 10 101% 25 Am Tel & Tel 5%s. Am Water Wks s, Anaconda )st 6s. .. Anaconda ev db 7s. Armour&Co41%s 39 Armour Del 538, .. ted Oil 6s. . n-etial 100% 101 132139 99+, 1045 104% 1074 1001% 1000 10274 103% 104 105 1047 104 #0 914 9 10 111 a g arnsdall s 1940, . irnsdl 65 w o War. ot EZons .cthlehm Stl pm 58 Beth Steel 5345 53. . Bethlehem Steel 6s. Bklyn Edison 6s. . Certain-Td5%srets Chile Copper 5s. .. Colon Oil 6538, Col G ‘oal Md 1st 5s, | NY5i4s, Cuba Cane cv 7. Cuba Cane 8s. Cuban Am Sz Denver Der it | bode 6s. ... Duquesne 4% s s 1100 " 8051 2 107 109 103 $3 100 918 111 6 99 995 o1 9 + 1131 113 9% 99 1035 07 9313 Gen Mot Ac Cor 65, Goodrich 6%s Goodyear s re Humble O1l 53 Humble O & R5%s. 10 102t. Iltinois Bell ist 5s., 5 10 Inland Stl4%s'78, 3 9. Intl Cement b 48.. 10 112 Intl Match s 47... 14 Int Mer ine 6, int Paper 53 47.. 1017 1017 ¥ 1034 1037, 9215 ST T 9 a9y 97 95 1115 915 111 Kayser J & ( 1 Kan City P & L 10378 103ix & W05 105 100 1004, < 101 1014 104! 102 118 114 et& Myersissl . I gett & Mvers 7s Lig RRURTYIN 5 100% % o114% 99% 100 9015 901 870 B 03 23 103% 103% 94 105 994 Loew's 65 w 0 wa Lorillard R Lorillard 5155, . Lorillard (¥ 1113 Louisv G & Eb5s 52, 1 103% ManatiSug st 714s. 3 994 Mid-Con 6145 40... 14 1054 Midvale Steel 58. 6 993 Mont Pow 58 43.... 2 102% Mont Power deb 3. 13 100 Mor's&Co 15t 4% (Mex.) is to have = N Y Tel4 & univer-'N Y Tel 6s 4 Y Edison N Y Edison 6% NYGELH& % 100 0% 74 10613 107% 2 110% | Den&RioG 4125 36. ' 103% 10344 | 965 | 99% | 139 | Direct to The Star Office Sales. High. Low. No Am Ed 5%s'63. 21 101 Nor States Pow 6s.. 6 Pacific Gas & El 68 Pac T & T 6852000 Pan-Amer Pete 65 Pan-Amer Pete 7s. . Paramount 6s 1947, Pathe Exchange 7s. 6 Phila Co 53 67 1., 44 Ph!lips Petro 5148 Plerce-Arrow 8s Por Ric Am Tob Postal Tel & C 5% Pressd Steel Car 5s 18 Public Service 4%s 253 Punta Alegre7s.... 1 RemingtonAr 6332, 7 Rem Rnd 5%s war. 24 Sinclair Ol 6: 2 Sinclair Oil 61 Sinclair O11 7s. Sinclafr Crude 5 Sin Pipe Line 5s Skelly O11 5348 Southwest Bell 58 Stand Oil N J 6s 46. SugarEstOriente7s, Tenn Copper 6s'41. TennElecPow 63 47 Transcontl Ol 6% s United Drug 58 53.. U S Rub 1strf 5s, US Rub 7%s.. USSteelsf 6s Utah Pow & Lt Utilities Powr 5148, Vertientes Sug 7s. . West Elec 5s. 1 Westn Unlon Bs Westinghouse 5s. .. White Eagle O 5348 Wilson & Co 1st 6. 6 1027s Yngstn S&T 6s wi. 23 101 RAILROAD. Atchison adj 4s. 88 Atchison gen 4s. B & O Gold 4s. B&Ocvi%s B&Oref bs.... B & O 5s 2000 D, B&O1stbset B &Orfimp 6s. B & O SWis 50 B & O Toledo 4 Bang & Aroos 4s 51. Boston & Maine 5s. Brdway&7th Av 5s. Brooklyn Elec 6% | Brooklyn Elev 6% Bklyn Mannat 6s. Canada South 5s.. . Can Nat 4%s30..., Can Nat 4%s 57, Canad North 64s.. Canad North 7s. Canad Pac deb 4i Can Pac 415s 46. Central of Ga 6s. Central Pacific 4 Cent Pac 1st 58 91 Chesa Corp 5s w 1. Ches & Ocv4las Ches & O gn 414 Chi B&Q gen 4s 53, CB&QIll3%s. Chi&E 111 gn 6s 51, 6 1 30 1 4 10614 101 95 9814 193% .87% 101 94% 99% 101 90 101% 107% 100 102'5 102'% 10215 1045 105% 1034 Bavy Ry 98 73 B4l 92 #|Chi Gt West 45 59.., Chi& W Indcn 4 Chi Ind&L gen 5 ChiMIISP&Pac5sis. § CMSP&Pacadjhs03. 24 Chi & NW gen Chi NW 435 20 Chi& NW 7s....... Chi Ri&Pgnis... 2 Chi R1&Prf4s... 2 CRIPac4%swi. Chi T H inc 6s 60 Chi Un Sta 4145 Chi Union Sta s 44. Chi Union Sta 61%s. CCC& SCLTf6sA. Clev Term bs Clev Term 5155 C& S 1st4s 29, Cuba R R bs. 5 Cuba Nor 54 sects.. 1 Del & Hud 1st rf 4s. 5 2 5 D Rio G West 5=... 4l DRG & Wst 5s'78 12 EastTennVa&Gass 1 Srie 1st cons 48.... 1 Erie Gen 4s. . 4 Erie conv 4s B. 18 Erlecvt 5867 wi... 21 Fla East C5s 7 5 Ga & Ala 1st5s'45. 2 Grand Trunk (s.... 5 Gt Nor4%s76D... 3 Great North 5%s... 6 Great Nor gen 7s 20 Green B & W deb B. 15 Hav El Ry 5%s51.. 11 Hud & Manaj §s... 8 Hud & Man ref 5s.. 32 111 Cent 4s 52 2 1 Int Rapid Tran 5s.. 12 Int Rap Tr 58 stpd, 8 Int Rapid Tran 6s.. 24 Int Rap Trans7s... 2 Int Gt Nor 55 1956 Int & G Nor 1st 6s. . Int&GtNor adj 65 52 25 IntRys C A 58 Int Ry C Am 65 4 Kansas City S 5s. Kan City Term 4s. Lake S Louis & Nash 7s... 14 an Ry 2d 45 2013. 1 Market St 7s 40. Mich Cen deb 4s Mil 31 Ry & L5 1L ref 4s.. MK & T 1stds... IMK&T4s B. MK & T prin5s A, Mo Pacific gen 4s.. 33 Mo Pac bs A 2 Y Cent 4s 98 Y Cent deb 4s.. N Y Centrf5s.... Y Cent deb 6S.... YO & StLdeb 4s.. StL 5% SA. YChi&StL 5%s B, NYC&StL6sA NY Sus&Wn gen 5 New Haven 35556, NY NH&H db 48 57. 1 YNH&H4%s. . ¢ NH&II cv db 65 Y NH&H clt 6s. Y Ont W 1st 4 1007 1007 | | Northern Pacri6s. 13 | Ogden&Lake Ch 4s. 5 jUre Short L rfs4s. 19 Ore Wash 1=t 48 b Penna R R 4%3'63. 49 Pennsyl gen Pennsyl 64. Pennsy) 6%s Pennsyl zold 7s 't Ohio & Det 4 {Peo& IS 1tds 40 M t Port RLP6s47... Reading gen 4148 A RIArk& L 4%s... St L IM&S 45 29 StL IM&S gn 68 t L IM&S R&G 45, t t L& SF prinbs. St LS Wcon 4s 32, San A & Arn P ds. . eab A L ref 4 eabAL ad) 58 1949 Seab A L con 6s. S B All Fla 6s A. B All Fla 6s 35 B. jou Pac 4s 29. Sou Pacclt 48 Sou Paeific ref 10 Sou L'ac 4148 reta.. 10 40 13 6 10 Close. 101 101% 106% 99 1004 94 I BY KENNETH 8. VAN STRUM. NEW YORK, January 4—Within the | last few years great quantities of stocks have been removed from the market and put into individual safe deposit boxes. The feeling that common stocks are safe long term investments has taken the country by storm. Turn to Fundamentals. 1t is well, perhaps, that along with this movement ‘there has been a crystalliza- | tion of thought as to what constitutes a good investment. The small investor| who formerly was tempted into fly-by- night stock business schemes has found that the country's leaders will actually give him something more than promises. The lure of wild cat oil common has lost some of its appeal and investors today are placing their savings in such basic issues as United States Steel or General Electric. The average investor today believes that the future is weli taken care of if he spreads his savings over a broad enough list. Investing for Business Men. One of the most valuablz contribu- tions to investment thought has been made by the 508 investment advisers who participated in a contest which Barron's Weekly held some time ago, advising a business man how to inves his savings amounting to $100,000. While the plans fit only one partiéular case, they clearly point out certain prin- ciples which every investor should fol- low. - The average recommendaton was that the business man put 37.4 per cent in bonds, 13.2 per cent in railroad stocks. 27.6 per cent in industrials, 10.6 per cent in public utilities, 6 per cent in bank and insurance stocks and 4.7 per cent in preferred stocks. While each of the advisers recom- mended -different specific lists, the same stocks were often suggested many times. The 45 common stocks which were recommended most frequently are shown below. It is commonly known that investment demand from both pri- vate individuals and investment trusts is taking large quantities of such cer- tificates out of the market permanently. Today this is recognized as one of the major factors influencing the trend of stock prices. Typical Investment Stocks. ‘The prices of most of these stocks have risen steadily during the past year. The percentage increases from January 1 to December 31 are shown. The stocks are listed in order of popularity, ‘American Telephone being recommend- ed by two-thirds of the advisers, U. S. Steel being next most popular and so on: Eeoa S. 0. N. Int. T. & T. Allied Chm. Drug, Inc. . West'h'e Elec. Un. Fruit Balt. & O. Kennecott . Ry. .. Eastman Ko. . Natl. Bisc. . Texas Corp. S. O. Ind. Int. Harv. Am. Tob. . West, Un. .. IIl. Cent. El Bd. & Shr. Am. Can . Fleshman BN WL G Anaconda Ches. & O. . Am. Smelt. Colmb. Gas .. Pub. Ser. N. J. Union Carb. Am. C. & F. Can. Pac. Com. Edisol Atl. Cst. Ln. Sears Roe. .... While it is obvious some stocks hav risen more than others, it is remarkable | that out of a list of 45 -stocks only 3} declined slightly. The changes range, from a loss of 13.6 per cent to a 106 per cent increase. The average increasc | for the year was 30.6 per cent. | The advisers who recommended the | above list did not attempt to pick spec- | tacular stocks so much as those in rep- ‘[ resentative industries which over a pe. riod of years would grow with the coun try. There are no specialties in the list, | all of the companies represented being | old established concerns in fundamental | industries. ‘ While many of the advisers recom- mended specialties in order to \'\lahu‘ the list, the best investment advice was the stocks of the above caliber should | be used for about 60 per cent of a busi- | ness man's investment fund. Holdings ' should be well diversified according to industries, with about 20 different stock | issues in order to get proper diversifica- | concerned there was less unanimity of opinion regarding specific issues, but it was ,generally recommended that he | place 37.4 per cent of his funds in abou 15 different bond isstes well diversifica, | according to Industries. . (Copyricht, 1929.) | Special Dispatch to The Star. NEW YORK, January 4— Am & Brit Con............cee Am & Brit Con 6s pf 11l Bankers' Financial Trust xd Divers Trustecs Shares B.... Feder Capital Corp Feder Capital Corp n uniis Int Secs Corp Class A.... N American Ui Sec Pcific_Investing ... 0l State Bankers Financial Trustee Standard Ol Shares U 8 Shares C 2.....0000000 U S Shares C 3. . 5 U S Shares Canadien Bk D e HOLDING AND FINANCE COMPANIES. Amer Founders Trust.. Credit Alliance A. . Standard Inv com INSURANCE CO! Balto-Amer new ....... Sommerclal C .. People’s, Public | Springfield *Southwestern Bell Telephone Co. is laying $5.000,000 long-distance under- | ground cable network to connect Mis- souri, Kansas, Oklahoma, Arkansas and Tex: Low Close A7T% 874 1094 109%2 Sales_High 5 &8 . 31 110 10 101% 3 66 Sou Ry gen 4s.. Sou Ry Con § Tex & Pac 5sB 1977 101 101 Third Ave ref 65% 6 Third Ave ad 3 % B2 6 Tol Tr L&P 5%s 30. Union Pacific 45 68. Unlon Pac 4%s 67 Virginia Ry 1st bs Joseph 1. Weller FINANCTATS Money to Loan Secured by first deed of trust on real estate, Prevailing interest and commission. r Resources Over $20,000,000 The Commercial National Bank of Washington 14th and G Streets N.W. + Condensed Statement of Condition December 31st, 1928 k RESOURCES Cash on hand, in Federal Reserve Bank and due from Banks and Bankers...... U. S. Government Securities Other Bonds and Securities Loans and Discounts . .... Overdrafts . ... Banking House, Furniture and Fixtures Other Real Estate . Other Resources . Over a Third of a Century's Ezxperience { H—l%imlim, 5 Doesn’t Rent Itself These Days It takes effort to keep it filled with the right kind of tenants—but those seek ing apartments turn na urally to us knowing that we have management of such a number of Washing- ton’s most desirable build- ings. It will pay you to place us in charge of your property. B. F. SAUL. €0. Main 2100 925 15th St. $2,996,083.83 2,154,159.14 3,732,521.32 9,510,488.99 542,25 1,752,823.18 168,952.72 94,147.92 $20,409,719.35 LIABILITIES EMAT «e....$16,829,459.10 982,450.00 202,232.26 Deposi Circulation ... Rediscounts i e e REAL ESTATE | va Ry & I 5s. Wabash 2d Wabash 5%s 88,095.48 550,000.00 39,150.24 Reserve for Taxes, Interest, Etc. Bonds Borrowed Other Liabilities oA ek st Capital TR . .$1,000,000.00 Surplus Fund and Undivided Profits Special Reserve Fund . NOTES Secured by First Trusts 668,332.27 50,000.00 1,718,332.27 $20,409,719.35 Conservative Afppraisals Chosen Locations 6% Interest \EAVER BRO REALTORS 809 15th Street N.W. Main 9486 The Commercial National Company Investment Bankers Paid in Cash Capital, $900,000.00 Owned and managed by interests identical with Commercial National Bank R. GOLDEN DONALDSON, President All of this Stock has been sold 100,000 Slmre.r Chicago Pneumatic Tool Company 3: 50 Cumulative Dividend Convertible Preference Stock (Without Par Value) Convertible into Common Stock share for share at any time (except while stock books are closed) up to fifteenth day prior to the redemption date. The Convertible Preference Stock will carry cumulative dividends of $3.50 per share per annum; will be redeemadle as ¢ whole at eny time o 45 days' notice af 65 per share and am amount equal fo ccrued unpaid dividends; will be entitled in case of liguidation to 365 per shere and an amount cqual to eccrued unpaid dividends before any dittribution is mada 1o Common Stock: wil carry the same voling rigls a8 Common Stock j.c.. ome vete for eack e, except that if at amy time accrued unpaid dividends om Comvertible Preference Stock azrregate $3.50 per shave, the holders oi Comvertible Preference Stock shall be entitled to elect a majority of the Board of Directors wntil the default. is cured: and will Bave o preempiive right. Appropriate adjustments of conersion rote will b made in case Common Stock in exceds o 200,000 "thives ochr tham shares isvicd whom comversion of Comvertible Frejerence Stock is ismued af less thow $50 & shared Dividends exempt from the presant normal Federal Iflcon‘u T ar—Payable quarterly January, April, July and October 1st. Transfer Agent: THE EQUITABLE TRUST COMPANY of New York The shares which we offer were privately purchased and do not represent any new financing on the part of the Companys CAPITALIZATION (after giving effect to recently authorized recapitalization) Registrart THE NEW YORK TRUST COMPANY 512% Sinking Fund Gold Debentures, due October 1, 1942.. Convertible Preference Stock:... . . Common Stock cesesesecss 188,000 shs. .*500,000 shs. ertible Preference Stock. Mr. H. A. Jackson, President of the Company, has summarized his letter to us as follows: BUSINESS: The Company was organized under the laws of the State of New Jersey in December, 1901. The Co was 2 the pioneer in the portable pneumatic tool’ business, has always occupied a leading position in the business and is now the leading and largest manufacturer of pneumatic tools in the world. The Company also manufactures air compressors, gas and oil engines of the Diesel and semi-Diesel types, rock drills, electric tools and other appliances which are sold to a large and diversified number of customers. Its products are used ‘extensively in structural steel work and road building, and in the railroad, oil and mining industries, and are standard throughout the world. . ‘The Company's principal plants are located at Detroit, Michigan, Cleveland, Ohio, and Franklin, Pennsylvania; additional plants are operated at Montreal, Canada, by the Canadian Pneumatic Tool Company, Ltd.; at Fraserburg, Scotland, by the Consolidated Pneumatic Tool Company, Ltd., and at Berlin, Germany, by the Internationale Pressluft & Elektricitats Gesell- schaft, wholly owned subsidiaries o?‘the Chicago Pneumatic Tool Company. Branch offices or selling agencies are maintained in the principal cities of the United States and in foreign countries. The foreign subsidiaries have been operated profitably and should be of increasing importance as a source of earnings. An extension of the facilities of the Company's Franklin plant has been completed, providing a material increase in air compressor and Diesel engine production and effecting a substantial reduction in manufacturing cost. The ComrnSl pres- ent requirements for expansion were met through the issue of $3,000,000 principal amount of 5/4% Debentures in October, 1927, of which $2,900,000 principal amount are now outstanding. Current business is satisfactory, and the outlook for the coming yeag is comidererf good. Besides its standard tools, the Company has been meeting with a great demand for its air compressor and Diesel engine product‘ and is introducing new specialties in coal mining and oil well appliances, from which an increasing business is expected. . s ASSETS: The balance sheet of the Company as of November 30, 1928, adjusted to give effect to the recently authorized recapitalization, as certified by Messrs. Deloitte, Plender, Griffiths & Company, shows total current assets of $8,762,203.55, or about 8.9 times current liabilities of $977,209.86, and net current assets of $7,784,993.69. Net book value of the total assets (including patents and good will) as set forth on the Company’s balance sheet, after deducting all liabilities including the outstanding $2,900,000 Debentures, is $15,599,428.11. EARNINGS: The consolidated net earnings of the Company and subsidiaries after depreciation, interest and Federal income "7~ taxes, available for dividends, as certified to by Messrs. Deloitte, Plender, Griffiths & Company, including the Company’s estimate of domestic profits for December, 1928, and of foreign profits for November and December, 1928, have been as follows: Per Share Common Stock $2.85 Stoek $1,226,837 $6.53 1927... 1,210,106 6.44 2.77 1928.... 1,270,000 6.76 3.07 The average earnings for the three-year period are $1,235,648, or $6.57 per share on the Convertible Preference Stock and $2.90 per share on the Common Stock after allowing for dividends on the Convertible Preference Stock. Calendar Year 1926.... “ “ MANAGEMENT: Mr. Charles M. Schwab has been Chairman of the Board since 1922 and Mr. H. A. Jackson has been = President of the Company since 1918. No change in the management of the Company as at present constituted is anticipated except that nominees of the bankers will be invited to become members of the Board of Directors. DIVIDEND RECORD: The Company has paid dividends on its outstanding stock without interruption for the past 19 years, ——_ and prior to 1910 in every year with only three exceptions since the organization of the business. For the caféndar years 1927 and 1928, dividends were paid at the rate of 6% upon its Common Stock (of the par value of $100 per share) then outstanding. The present Common Stock of the Company is listed on the New York Stock Exchange and application has been made to list on the New York Stock Exchange the Convertible Preference Stock and the Common Stock, which will be outstanding upon completion of the recently authorised recapitalisation. Legal matters in conmection with this issue will be passed upon by Messrs. Cravath, deGersdorfl, Swaine and Wood and S. Stanwood Menken, Esq., for the Bankers, and Willard A. Mitchell, Esq., for ths Company. Audits by Messrs. Deloitte, Plender, Grifiths & Com~ pany, and engineering report by Messrs. Sanderson & Porter. This stock is offered when, as and if issued and received and accepted by us and subject to the approval of counsel. Temporary Certificates deliverable in the first instance. Price §55. per share and accrued dividends Sisto & Co. 46 Becker ¢ Co. J. A. “The information contained in this advertisement has been ocbtained from sources which we believe to be A reliable, but (lélfl ‘event are any stalements herein contained to be considered as representations by us. 'S . TSI AR