Evening Star Newspaper, June 20, 1929, Page 13

, D. O, THURSDAY, JUNE 20, 1929. THE EVENING STAR, WASHINGTO i FINANCIAL. Isver{fil Dispatch to The Star | BALTIMORE, June 20—The regular | quarterly dividend of 1 per cent on | the preferred capital stock of the Balti- AR more & Ohio Raflroad for the three oY A months to June 30, 1929, was declared Selective” Market Succeeds |out of the new profits of the company, R t Bul : Jplynble September 3, oo, w(n‘ocli- holders of record at the close of busi- ecen ull Campaign. |peiders July 13, 1929, at & meeting of . : the board of directors yesterday. Trading Professional. | o emiuiat e gsty | dividend of 1%, per cent on the com- —_— | mon_capital stock of the company out Upecial Dispatch to The Star. of the surplus profits of the company. NEW YORK, June 20—Following Payable September 3, 1920, to stock- aich one. of the " abrupt deciimes 1 | holders of record at the close of busi- | stocks that has occurred since the mar- |De5S on July 13, 1729, ket developed a wavering tendency at | President Daniel Willard, commenting the end of last November there has been |07, €Xpenses thus far this vear, sald: an equally sharp recovery in the aver- | “OUr transportation expense ratio age price of the industrial and public |and total operating ratio for the half utility shares year have been well under last year's The last break culminated on Mayflgures, despite the fact that some im- 27 at a level of about 35 points under [ POTtant wage advances have intervened. that of May 4 On Monday of (his|We are spending rather freely on main- S ans of ths wve Tost used | tenance, because the improvement in < Was back | trafic Tequires us to keep the prop- hat at the | erty in good condition.” May top and on sday this average | went & bit higher than on the day pre- | argued that, | y all of the | 1 average is | viows. Consequently, it having regained pract lost ground, the ind definitely tending high Present Market Conditions, In the earlier recoveries the public was an active factor in the buying which reclaimed & good part of the losses. Trading was on a large scale. The improvement was general through- out the list and not confined to small groups of industrial or public utility shares. There are three aspects in which the resent market differs ember or March rallying from the smash up in prices that had just taken place. The first is in respect to the character ot the buying. This has been largely for pro- fessional rather than for public account | during the last two weeks. The second | difference is that of market volumes. Although stocks have been rising, there Oldest National Bank in District of Columbia have been many sessions n which ‘:he‘ 2 : total i Ve | total tramsactions were smaler wnan W o0 V[ dison and most significant departure from to Hoover the Winter and Spring rallies, has to do with the limited number of stocks um.} ’ I ‘HE Metropolitan has been serv- have shared in it. Taking 125 active industrial and pub- Mo utility stocks and comparing their high prices of May 4 with those of to- day, it will be found that 8 are now quoted consi@erably lower than they | 5 e Sl were at the beginning of last month | ing the city faith | fully ever since 1814. {This record speaks have cocurred In a limitea number of (f] Volumes for the per- - i manence and strength of this vet- eran bank — justifies and only 31 above the figures of that the consideration of riod, The rest are unchanged. This | dicates that the advance in the aver- | every depositor who wants service at its ages is due to the very large gains that | best. Copper Stocks. Practically all of the copper stocks are well below the prices of May 4. So are those of the automobile companies | as well as those of tire companies and | motor _accessory concerns. The ofls | have run into a streak of bad market | Iuck and are well below the level at | which they were quoted as a group on May 4. 1 5 ‘While v&e“?ue had, lgerel%re‘.‘ what | 3% Sius seeme a secondary bull mar- | Ket, ‘thus market bas been what Wall (et g el A Street likes to describe as “selective,” or | one In which a Jimited number of is- | sues participate and out of which a limited number of professional opera- | N . ational tors or “insiders” have made most of | the money. 2 | M tr lit Curtails Operations. e opo an 115 B k 115 an NEW YORK, June 20 P)—The 5 Amoskeag Manufacturing Co. of Man~|[| Years Years chester, N. H,, has curtailed operations Il ~Old O in-all‘departinents' except. the cottan flanne! ause of the usual seasonal i i B A Misn deparimentUAMY [ote.SE ienie U. 5. Treakwcy operating on an overtime basis. i Grain. Special Dispatch to The Star. JROOKINGS, S. Dak., June 20.—The fruit. This has been done on the strength of estimates which anticipate a drop of 50 per cent in the crop this year. Canners individually express the belief $60 would be a fgir price. The 1928 season price was $20. : —e. CHICAGO DAIRY MARKET. trade indicate that sales for this S) 3 will be far in excess of those o year. June shipments of the Willys-Over- land Co, are estimated at 30,000 cars, making *the total for the past six NEW YORK, June 20—D. J. Moran, | months 200,000. who was president of the Mariand Oil Co. prior to its merger with the Conti- | == By the Associated Press. last | ff PINANCIAL., OPPOSITE STATE DEPARTMENT Entire Second Floor of Seven Rooms for $165, or will rent in small units. (niaTSe, light Tooms with nish cell- NORTH WASHINGTON condition of erops in South Dakota is| very favorable ¢ this time. All crops |, CHICAGO, Jume 320 —UP)—Butter are better advanced than a year ago, |1OWer: ree;(i)'gu. 8,240 tubs; creamery, Wit the outlook bright for big yields. | £Xtras, 4244 Sgntarce, S2%; extia planted by June 1. Poultry—Alive, easy; receipts, 1 car; fowls, 95; Springs, 38; broflers, 34: Steel. roosters, 20; turkeys, 32a30; ducks, 17a PITTSBURGH—It is felt here that |20; Spring ducks, 26; geese, 15; Spring the trend of building construction, which is emphasizing office and public structures rather than single family dwellings, is favorable to the steel busi- ness, since more cteel is used proportion- ately in such bulidings than in dweil- ngs. geese, 25. PARIS BOURSE PRICES. | PARIS, June 20 (#)—Prices im-| proved on the Bourse today. Three per cent rentes, 75 francs 10 centimes; == 5 per cent loan, 101 francs 95 cen- Fruit. | times. SAN FRANCISCO, June 20.—Grow-| Exchange on London, 124 francs 115 ers of canning cling peaches have estab- | centimes. 'The dollar was quoted at 25 lished a price of $80 a ton for first-class f{rancs 581 centimes. Properties Behind Smith Offerings— No. 11, The Fairfax of Buffalo. nental Oil Co., has been elected presi- dent of the newly organized Conti- nental Oil Co. A resolution urging that retailers de- mand that the vendor state on the in- voice the amount of tin weighing in silk garments and fabrics has n_passed by the National Retail Dry Goods As- sociation. Reports from the women's blouse Mortgage Money Loaned At Low Interest Rates Tyler & Rutherford Representing Mutual Benefit Life Ins. Co. 1520 K Street Main 475 | | Consult Us First let us have your application today. The Comme; 3 Paid wp Cash REALTY COMPANY Shepherd 2400 u need money for —— eal Estate financing fee. Prompt Service Now depecisediFes Standard Collateral Trusteed Common 1 National ny ted ital, §900,000 ! pank Bids. Com 24 Jackson Place Standard Collateral Shares Corp. Franklin $783. Woedward Blds. For the information of the public at large and particularly those who may be interested in The Fairfax of Buffalo, we invite attention to the following statement relative to this property and to an issue of bonds offered by this House. Selected, Income-Producing Buffalo Apartment H A Selected Property Secures Bonds HE F. H. SMITH COMPANY selected The Fairfax of Buffalo, one of the finest apartment hotels in the City of Buffalo, as the type of property suitable for securing an issue of bonds. The Fairfax of Buffalo is located on Delaware Avenue, the fore- most residential thoroughfare of Buffalo, considered to be one of the most beautiful avenues in America. Niagara Square is but eight blocks from The Fairfax of Buffalo and the downtown business and financial districts are within easy walking distance. Main Street, Buffalo’s most important business thoroughfare, runs parallel to Delaware Avenue, two squares away, affording convenient shopping facilities and trolley connections for lines to all parts of the city, its suburbs and to Niagara Falls. This property was selected on the basis of the building being adaptable to a known rental demand, and with a view to future as well as present values. A Recent Bond Issue In March, 1929, The F. H. Smith Com- pany offered an issue of $1,5650,000 6149, First and Refunding Mortgage Coupon Gold Bonds of The Fairfax Apartment Corporation of Buffalo, to be secured upon completion of the refunding operation by a An apartment hotel, sitnated on Del between North and Summer BUFFALO, N, Y. first mortgage upon The Fairfax of Buffalo Apartment Hotel (land, building, furniture, fixtures and equipment). The bonds of this issue are in serial maturities rangin% from five to twenty years, so as to reduce the issue to $1,240,000 efore final maturity. otel Backs Bonds Value of Property Is Created By Farnings MODERN business recognizes that the earnings which it is reasonably ex- pected may be derived from improved real estate, properly adapted t» a purpose for which there is a demand, constitute one of the most important factors in determining the value of the property. The owner esti- mates that the gross annual earnings of The Fairfax of Buffalo for the year 1930 will be $240,000, the expenses $87,000, and the net earnings $153,000. This estimate is based upon the plan of the owner to adapt the property to a known rental demand by converting most of the apartments into furnished suites, with hotel service of the high standard of other apartment-hotels of The Fairfax Chain. This plan, in the judgment of the owner, will produce the maximum income from this building. The management is not renewing leases on the unfurnished apartments of the type which are to be @onverted, but is furnishing these apartments as rapidly as they become available. Actual and Estimated Earnings The owner’s statement, dated June 14, 1929, as to actual and estimated earnings of The Fairfax of Buffalo, is as follows: Number Rooms Total Number TRUST MONEY On homes, apartment buildings and business properties. No appraisal Prompt service. Real Estate Mortgage & Guaranty Corp. Main 1403 Reoms 352 352 352 Income $15,514.96 16,500.53 14,500.00* 15,000.00 Expenses. $8,407.64 9,041.84 The lien underlying the First and Refunding Mortgage con- sisted originally of $1,200,000 7% First Mortgage Bonds dated A ctnal Marh May 15, 1926, in serial maturities, the last bonds maturing May 15, “ " April, 1936. $1,200,000 principal amount of the First and Refunding Eat. Bonds were deposited with the Trustee under the First and Re- “ funding Mortgage to be released only to refund the bonds of the underlying issue. On June 17,1929, the amount of this underlying issue had been reduced by the refunding operation to $665,700, as $534,300 principal amount of the underlying bonds had been re- tired and cancelled. Under the terms of the First and Refunding Deed of Trust, the obligor covenants that on or before May 15, 1929 1930 $223,515.49 1935, it will cause to be paid and satisfied all underlying bonds. There is also secured by this property $450,000 6147, General Mortgage Bonds which are subordinate to the first and refunding mortgage bonds, and until completion of the refunding, to the underlying mortgage bonds. Estimated net earnings for the present owner’s first year of operation, when only partially equipped as an apartment hotel i ... $130,666.01 *During the month of May, 1929, These Tooms are now Being renovated and furnished. Thi L 1929, Estimated income for the year ending December 31, 1930: Gross Income .. .. 40,000 87,000 Expenses .. el A s Net Income ... cower s mecwmuo. . $153,000 “The estimated net earnings for the year ending December 81, 1930, are at the rate of approximately 7% of the appraised valua- tion of the property. “This building contains 352 rooms and a daily room average of $2.50, which is reasonable on a hotel basis, with an average daily occupancy of 90%, gives an income of $23,760 per month. “It is estimated that the gross income for 1931 will be about 5% over 1930, or approximately $252,000. “These figures do not include any allowance for depreciation of t:e 1bmclidmg and equipment nor for appreciation in the value of the land.” Wise Selection Makes Sound Security Where wise judgment is exercised in selecting a property capable of producing ample income when adapted to a foreseeable demand, and where care is taken to select a location which will appreciate in value due to the operation of the economic laws relating to the growth of our large cities, a fundamentally sound security is obtained. Valuation of Property $2,250,000 By a Member of the Buffalo Real Estate Board On March 2, 1929, The Fairfax of Buffalo was appraised by J. R. Ingham & Co., Inc., Member of the Real Estate Board of Buffalo, N. Y., the letter of appraisal being quoted below: “We have made a survey of the 10-story full fireproof building located at No. 715 Delaware Avenue, Buffalo, New York, and now known as The Fairfax Apartment Hotel. ‘We believe the structure to be well conceived, and excellent in plan and construction. “The building has a frontage of 110 feet on Delawarc Avenue, the most important residential thoroughfare in Buffalo, and the property in addition to being in the center sidential section is within easy access to the shopping, financial and The Delaware Avenue bus passes the door and there are two street car walking distance. Going Camping in Maine? EEP in the Big Woods ... a tent D pitched under murmuring pines— trout biting on a mist-covered lake . s . man! Once you've spent a vacation up there, you know what real sport is! Are you going to make it this year? Or are you worrying about that draw-back to all vacation pleasure—expenses? If you've saved carefully, invested wisely, yvou probably are already planning that long canoe trip, through chains of tree- fringed lakes. Hundreds of men, whose modest investments will pay all their vaca- tion expenses, are getting ready for the big event. scale, land values on this “Beeause of the recent building development on s to do so. boulevard have been enhancing steadily and should con “On schedule of rentals of the operator we estimate the gross annusl income property after making a deduction of 10 per eent for vacancics at $240,000 and earnings plus other consideration as a basis, we therefore appraise the property going apartment hotel at a figure of $2,250,000. “Very truly yours, “J. R. INGHAM & CO., INC,, “By J. R. Ingham, President.” Without touching a cent of their regular earnings, many investors in the First Mort~ gage Notes offered through Swartzell, Rheem & Hensey Company every year spend a glorious vacation-time — their finances taken care of by the unfailing 6% return these notes yield. SWARTZELL, RHEEM & HENSEY Co. MORTGAGE BANKERS 727 15 STREET N.W. WASHINGTON D.C. / Smith offerings of real estate mortgage bonds are fundamentally sound because they are based upon well located real estate—land chosen with a view to future as well as present values—buildings that are adapted to a known rental demand THE F. H. SMITH COMPANY Investment Securities — Founded 1873 SMITE BUILDING (815 15th St., N. W.), WASHINGTON, D. €,