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BVHNING LEDaER-PmLADBLPHIA; THURSDAY, 'JANUARY IS, 1917
ntm
i
'
NE of the
big problems of
the investor in
stocks, is to keep
his money at the
mafcimumof earn
ing power This
subject is treated
.from the common
sense standpoint
in our booklet
44 The Working
Value of
Securities."
Write for 822-T. U.
JONES & BAKER
STOCK imoicrcus
Widcncr Bldg., Philadelphia
Itdl. Walnut 1010 1.
Kr.tntonc, Unco 1'200.
Nrr York Hon ton
CMcnco I'lllnlmrRh
Direct rrlmtt nirtt
FINANCIAL' NEWS
PHILADELPHIA BANKING INSTITUTIONS
LOWER CALL MONEY TO 3u PER CENT
Reduction Is Second in Little More Than Week Bank of
England Cuts Minimum Discount Small Busi
ness in Local Stocks Bonds Active
Permanent
Investments
Some investors like to have
most of their securities consist
of long-term bonds on prop-
erty that has a staple value.
We are prepared to make
helpful suggestions regarding
standard long-term bonds.
Yielding from 4.10 to 5.90
.OfcIarR$go.
lUNKi'.ns
XiUbllah"! 1837)
321 Chestnut St., Philadelphia
Plttiburgh
Dostoa
Chicago
Wllkei.nrM
Iteaillnx
a s?me
INVESTMENT
Money In Philadelphia, bath call nml
time, has shown a much easier tendency
In the last few days, and therefore) It uns
riot surprlslnR today when It wna learned
that a number of largo national hanks and
trust companies would send out notices to
night reducing the rale on call loans to 314
per cent from I per cent. This was to ho
expected In view of the piling up of surplus
by tho local Institutions, ns shown III tho
weekly hank statements. This Item in the
last week Increased SI 1.872.000. bringing
tho total up tn $3G,3 13,000. Tho last week
was tho fourth consecutive week to show n
gain, and the result was to bring tho sur
plus up from Ml, 884,000 from tho week
i-muriB neccmnor is. on ,iannnrj 9, or n
lltllo more than it week ago, the rato was
lowered from fi per cent to 4 per cent, the
S per cent rate hating gone Into effect oh
December 7. In Now Vork both tlmn and
call funds havo been ensy for virtually the
whole period from the first or the year.
In line with the reduction In the rate In
Philadelphia it Is Interesting to noto that
similar action was taken by the Hank of
England today, when the minimum discount
rato was cut down to fiVa per cent from fi
.per cent, this tending to show that money Is
easier an over tho world. With the ex
ception of the period from August 8, 1014,
until July 13, 1910.' when the rate wna B
per cent, the rato for tho KiirIIhIi bank In
tho lowest slneo tho beginning, of tho wnr.
The action of the Hank of Kngland Is taken
as an Indication that the gold situation
and the question of foreign exchange nro
well In hand This Is borne out, ns fnr ns
the gold Is concerned, In the weekly state
ment of condition, Issued todny, which
showed n gain In bullion, In round numbers,
of 050,000. or 13,250,000. Tho chief pur
pose of the reduction, in the minds of some,
was to bring tho olllclal minimum more In
line with tho Interest on the new loan and
benefit tho banks which were lending on tho
new loan at 1 per cent under tho bank rate,
with a charge of & per cent.
As far ns operations were concerned on
the Philadelphia Stock IC.tchange today
thero was very little to discuss. Trading
was on a reduced scalo In all Issues which
appeared 011 tho tape during the session,
rioth tho changes In prices, as a general
rule, and tho number of stocks which ap
peared during tho day wcro narrow, of
tho local Issues Philadelphia Itapld Transit
trust certificates continued the most active.
They held closo to tho level of the InBt
figure yesterday. 31, and except for a
brief period early In tho day a loss was
shown.
Sales which were consummated were
mostly In the shapo of profit-taking by
holders who had gotten In lower down, and
. was pointed out today In houses which
handlo a considerable- volume of tho trad
ing In tho certificates from day to day that
quite a largo amount of the certificates is
for salo on n scale up from 31 and to
35. It stands to reason that this must
ie cieaneu up ueroro nny substantial up
ward move can get under way. Union
Traction acted Just tho reverse of Transit,
iccovcrlng a half point of the loss sus
tained yesterday, but thl3 was on only 21
shares, and could not, of course, bo taken
as an Indicator of tho market for tho stock,
as It represented odd lots. I.nko Superior
f'orporatlon got up a fraction.
Tho bond division was In striking con
trast to stocks. Ponds wcro qulto active,
business. In fact, being the largest of nny
day of the week ; that Is, more Issues com
ing out, and tho prices wcro firm. Over-
the-counter business Is good, and It was
said today that not only first-grade but
second-grade bonds are In demand. Pond
men took occasion to point out Hint tho
present should be a very propitious lime
for tho Philadelphia Kiectrlc Company to
float Komo of Its $35,000,000 B per cent
60-ycar bonds which nro provided for In
tho refinancing plan. The private salo of
this Issue Is reported to be qulto large.
Sales in Philadelphia
lllsh.
.- Alliance In 3014
40 II &St upf fi.l
an Cam Iron. 4ft li
toil Col F & Ir mi
.11 lClcc Stor. 07
0 Ins Co N A 27 li
431 I,k Sup C 20
SR.t.eli Nov 11 1 14
li! I.eh Nov. . 7H'!i
20 I.lt Proth. 2111
in Nov Cons. SPJi
M3 Pfiiua It It SfliJi
20 Phlla Co
cum pf.. 42
I22 Phil Mice. 31
2203 PUT tr cfs 3tU
31 Phila Trac HS14
loo Pittsburgh
Coal ct. 31
nil Heading ..
in So Pacific.
IB Ton Ilel ..
J 30 Ton Mln..
21 Union Trnc III',
233 U (i I . . . . (Ill
Nt
l,mv. C'loe. ehse.
2014 2014 -I-
A3 A3
mi
455 47', 1
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21-r, 2PJ! 35i
2 Hi 2 Hi -I- IS.
f.llijf, f.0 if.
42
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82H
DIM! U S Steel
21 Welsbneli.,
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on";,
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in',
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42
33
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)!
CONSUMERS' ELECTRIC LIGHT
AND POWER COMPANY
1st MORTGAGE S's TO YIELD
ABOUT S'j.
THIS COMPANY SERVES THE
DENSELY POPULATED PORTION OF
NEW ORLtiANS, ONE OF THE FORE
MOST CITIES IN THE SOUTH.
IT HAS AN EXCELLENT RECORD FOR
EARNINGS, PAYING 7 ON PRE
FERRED SINCE ISSUANCE AND IN
CREASING DIVIDENDS ON THE COM
MON SINCE 1912.
THE BONDS (DENOMINATIONS J1000
AND $500) ARE FREE FROM FEDERAL
INCOME TAX AND REFUND IS PRO
VIDED FOR PENNA. ?
WE OWN AND RECOMMEND THIS SE
CURITY. DETAILED INFORMATION ON
REQUEST.
BAKER, AYLIFJG & YOUNG
LAND TITLE BUILDING
doston PHILADELPHIA Chicago
GOVERNMENT I50NDS
lllil. Asked.
2 reulaliTciI 1930 Ilil'i
Is coupon 1113(1 iiii
:ia reKlstrrnI 1918 100?
3.1 coupon HUH Ilillli
4s resfstereil lti2 110 111
4fl coupon 1923 11(11,
3a rcKiatrrcl 19 III 1111
3a coupon 11)111 101
Panama -'a reelatererl 1(13(1 09
Panama 13 leglatered 1938 991?
$3100 Am fins ft
Ulec B.i. 117 li
13000 Paid J.oco
1st 5s..l0Pi
fiOOO City 4s 1912 ,
fi 103
300(1 do 1D4.1.IH.1U
1000 do 1915. I(I3Vi
1(100 Kloc & Pen
Tr 18 . . 83 14
3000 Ky Sec Bs 83 H
3000 Key Tel 1st
5s 07
8000 I.ch .Nat
rons l'is. 103
2000 Lehigh Val
gen Is.. 91
17000 do cons
His 2003.101',
KKIII do Coal 5s. 100
loo'i do ami 6s. 1 3(1 14
40(1 I, T rets P
i: In .. 81
mono Market St
HI Is .. 8ii
2000 Pa .1 .' T-i ItoiJ,
1200(1 Ponna Co
gen 414s.I011f,
2000 Pub Serv
N .1 5s. . 0214
2000 Pco P to -Is 8914
100(1 Phlla On
cons 5s. on
snoo Heading gn
Is 0014
1000 Stand Gas
& Kloe Cs.10114
3000 I'll Hwys t
c 4a 72
1000 do Inv 5s 71
1000 Weigh 5s. 98!!,
1000 W X Y &
Pa gen 4s 8714
II
IIIIS'DS
Hlffll. t.ov. Close.
-( 14
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li
IK,
N'ct
chge.
II0U 0011 I
lOtli 10IH -f li
10314
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8314
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07-71
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91
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10(1
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81
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103U
103',
103',
8314
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07!i
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84
9814
II (lift
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9214
89 14
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9014 9014 I A
10114 10114 14
v
72 72
71 71
98 T 98T If,
8714 8714
IIIIIKPTOKY til' At't'tir.NTANTS
CrrtlOnl I'ul.l
UWItK.Nl'1! K.
r Acrniintunta
limiWN & i'(i.
1013 ltCAI, KSTATK TltUST IIUILDINO
WII.I.IAM K. JIONTKIJua
VM CIIKSTNUT ST.
liUUNH & HPRAKJIAN
THIS 110UUSU
FOUNDED 1865
The
We own and offer
City of
iladelphia
4s
MATURING
' July 1, 1940
July 1. 1942
July 1, 1946
Jan. 1, 1946
A. B. Leach & Co,
115 South Fourth Street
DU Phone Lombard 237
Ntw Torn Chlcaro RutTilt
Boaton LonJon. En;, Baltlmor
7F
roviaei
Life and Trust Company of Philadelphia
Pays interest on deposits and safeguards
them scrupulously.
FOURTH AND CHESTNUT STREETS
You Iit often befctt caught In an
menrsney. after banklnc hour. wllh.
sot njr earrency, liayeu't yon? Pro
vide far future contingencies by open
Ing nn account at
THE 13-HOUR BANK
tEPUBLIQ
TRUST
SOMjpAlF
Open t b. m, to 10 p. m.
J (129 Che.tnut Street
AVKVAI4 mVBOTION'8
3Wi0IVlTliJEaSl WATIOXAr. HANK.
a PbiUdeIi,bl, Pa.. January la. 1IT
.t't.BnJ,t,n".2 tna Diractors. hl4 tola dar
ta 8llowtn offlcara war electWj "
K. SCmilDT. Prealdant.
snwiRn
i-f?PAVK;3St;
m&TlCWXtJB SoUeTtSi. """"
iltAHit M. JlASaBY, Notary,
LINFOJID C. NI0R
Caatlir. -
ir.OM. ATVKBTlMK31EN-ra
3B K3TATB Or OTTO BCIIAETTUE, DE
f" aed lucre tiaunuuuary a the
Stove iU to taaYlnt; been sranted la lb uadlr
Jjtntd, all FeKwa luO-blaJ to tne ud iaUla
an i rttowsted lnuate fnf. aa4 ilea uarK-
KB Cor Braaa asd Artb ata,. PbJU.
W KNiI..I.- P iH-IV, WAN B..
To the Holder of
UNITED RAILROADS OF SAH FRAH01SG0
Four Per Cent. Sinking Fund Gold Bonds, Duo 1927
At the request of a large number of the holders of the above Bonds who
have declined to assent to the provisions of the reorganization plan, dated
September 22, 1916, the undersigned have agreed to act as a Committee for the
protection oflhe interests of the Bondholders.
Under this plan the 4 Bondholders receive 25 in Bonds and 469o in
Preferred Stock, from which it appears that they are asked to relinquish 75
of their lien and to consent to a reduction of 29 in their principal. In view
of the fact that the Company earned during the past year not only the amount
required to pay the interest on the underlying and the 4 Bonds in full but
also about $737,000 for the payment of sinking funds depreciation, other
charges and dividends, the sacrifices which the Bondholders are asked to make
are, in our judgment, greater than either the cpndition of the Company or the
position of the 4 Bonds justifies, particularly as the sacrifice is largely for
me ucitcui ui iuc juiuui actunwca.
Notwithstanding the earnings and condition of the Company as above out
lined, the situation has become chaotic; foreclosure proceedings have been
instituted on one of the underlying issues amounting to $1,800,000, another
underlying issue, amounting to $400,000, has matured, and the market price of
the 4 Bonds has fallen to less than 40. The junior securities are in the hands
of a single interest, and control the operationind policy of the Company, which
gives them a greater" advantage over the scattered 4 Bonds, unless the Bond
holders unite for their own protection. We. therefore, request that deposits of
the 4 Bonds be made immediately with the Depositary, or one of the Sub
Depositaries, named below.
AH bonds so deposited must be in negotiable form and must bear the
October 1, 1916, and subsenucnt coupons. Certificates of deposit ivill be issued
and application will be made to liat them on the New York Stock Exchange,
A Deposit Agreement and a Circular setting forth the situation hal'e been
Erepared, and copies thereof majr be obtained from the Depositary and the
ub-Depositaries named below, or from. the Secretary of the Committee. Pro.
visum, n.s vw. .... ,u. .w. ,.,.., ,..v (unn.ic vouiiiiiiiee ot deposit
Certificates of the Reorganization Committee.
New York, Jan. 18, 1917,
JOHN HENRY HAMMOND, Chairman.
Brown Jrothr & Co.
DONALD C. GEDDES,
CTarlc. Dadsa & Co.. New York.
D. HOWELL CR1SWOLD, JR,
AtuiRder Urown & Sow, Baltimore,
A. H. S. POST, I
FraaUeat. UucantUe Truit t Depoall
jQomnanir ol Ultloor, "5
' EDWARD B. SMITH,
aiward B. Smith Co., Philadelphia,
Counaeli i
E. C. BAETJER. Eaq.
CHARLES K. BEEKMAN, Eaq.
Sacra Uryl
MORREU. W, GAINES,
89 Wall Street, New York. N. Y.
Depositary;
UNION TRUST COMPANY OF NEW YORK, 80 Broadway, New York.
Sub-Depositaries:
C1RARD TRUST COMPANY, Broad and Cheataut Streets, Philadelphia.
MERCANTILE TRUST 4 DEPOSIT COMPANY OF BALTIMORE, Baltimore.
EROWW SHIPLEY AND COMPANY, F8nd Court. Lstkhuty. London. E. C
London stock market
Business Continues Lights-War Lonn
in Good Demand
LONDON. Jim. 18. Subscriptions to tho
now wnr loan multiplied today following
a decision by llio Treasury to allow extra
Interest of 3s, 4ri per cent on fully paid
applications and 2 per cent on Installment
obligations lodged before the end of Jan
uary. The tone of the Stock Kxcliansts markets
generally was llrm but business remained
light. The gllt-cdgcd section was harder
on the reduction In the Ttanlc of Kngland's
rate. Allied bonds wcro quiet. The ap
proach of dividends and n cessation of
rcaimnR sustained homo rails.
Americans were weaker. After declining,
Canadian Pacifies became steady on favor
able earnings. Mouth American lines Wcro
dull.
LOCAL MINING STOCKS
TO.S'Ol'AH STOCKS
M.ir.Vanmf.t
Midway
Mlzp.ih Kxtenslnn
Montana
North Slnr ,
Ilesruo Kul.i , , ,
OOI.DI'IHUI BTOCKU
I1lu- Hull
Itooth ,'
(.omlln;ttlo 1-rartlon ,.,.,
lll;H!inllclfl,M n II....
tmliy
nro ,
fund K'on
Mllver I'lck
Mt80KI,t,AN!JOUS
Arlann.t tlhlteit
NVvnilA Hill ,
Tccotxi Mining ,
IIM.
.07
.20
,1 1
.IT
.HI
.1'.!
.ni
.ll'l
.III
.III
.III
,111
.2.1
.rsi
,211
,1(1
Asked,
.(ill
S.1
.1(1
.I'll
.11.1
,11
.(HI
.(in
.11.1
.111
.nil
,C(1
NEW Y0HK COPFEE MARKET
NMW YOrtK. Jan. 18. The market for
coffee futures opened a little easier In lono
this morning, first prices being unchanged
to a decline of 3 points. Trading on tho
call was quiet, sales being estimated at
4000 bags.
After the opening the market continued
quiet and business Wfts only moderate,
ttoom sentiment wns moro or less nervous,
with traders awaiting further developments.
Tho sinking of a number of vessels In ,h(S
South Atlantic would. It was thought, cause
the ocarcltj- of tonnage to become more of
n market factor than ever, and this, coupled
with higher freight rales and an ndvanoV"
In Insurance risks, caused the general sit"
uatlon to become unsettled.
Ilrnzll cables wcro steady and the re
ceipts continued light. The local spot mar
ket was unchanged with Itlo No. 7 quoted
at 10c nnd Santos and No. 4 nt l(l8o.
Today's yeslnrday's
Lfl'eninff.
.fnnunry
IVhrunry '.t-.-.'.
.:::::::::::::::: fc8?..M
Mny
jutf .7.7. ::.:. :..: ::'.''. Mims.
A UK tUt I, a E,.
wTtcmlrr 21! "
SSVr!SW-:::::::::::::.g.giieit.M
llerp mbr -i' -
"Ulll.
Mnrlnc Rates Remain High '
NIJW VOttK. Jan. IS. .Marine Insurance
rates to South America, owing to tho fact
that the flerman comnieico raider Is stilt
reported at large, were nt tho high levels
nf yesterday, risks being taken nt from 8 to
10 per cent. Union to the .Mediterranean aro
10 per cent anil to the t'nlled Kingdom S
to 7 per cent. Ilevlsed estimates) place the
loss of the sinking of twenty ship? during
the Inst month til about fl2,noo,0(io.
In.
s.i!is.:,n
..-, Iras .",.
H.",!08.(W H.fl'.Jf'lS HH
8.n.-ff,.nn
?K.7
8 11'
R.7I1
.SM' S. '
H.MWR.811
.tlft, .H
s.niws.DO
NO PITTSBURGH COAL MERGER
Officials Say They Aro Unaware of
Any Plan ,
t'lTTSUUttGH, Jan. t8. Officials of the
rittshuigh Coal Company declared today
that they were not aware of any deal under
wny or plan looking to tho merging of the
company with the Consolidation Coal Com
imnv. v
Another story thai tho ofTIclals denied
wns that the Pennsylvania or tho New York
Central Hallroad Company would buy tho
Montour Railroad, owned by the Pittsburgh
Coal Company. ".Many would llko to buy
It. but It Is not for sale." said ono olllclal.
A decision Is expected In tho near future
In the litigation growing out of the plan
of the readjustment of tho capital, which
wna placed In effect recently.
Financial Briefs
RAILROAD EARNINGS
ST. I.OU18 SOUTHWESTERN
1(117. Inrrne.
Second week January. . 1312,000 I100.00Q
CANADIAN PACII'll!
Seennd week January.. S5.4l7.nnn JSM.noo
From July 1 711,724,000 12,126,000
liDNVtlll AND ItIO GRAND!
Second wr-k January.. J'2'iii! J2'2
from July 1 3.13,058 24.807
DeCrrnse.
CHICAGO. INDIANAPOLIS AND LOUIS-
VII. IjK
Second week January.. Mn7."2 .19,nn7
From July 1 I. (inn, 381 088,241
i rom .iuijt j,AN, TIltINK
Second week Jnnu.iry. . tl, 072,010 4100,011
Yarns Easy in Manchester
MANCUKSTIJIl, Kngland, Jams 18.
Yarns nro dull nnd easier. Cloths nro Ir'
regular.
The New York Stock Etchan. .
ectved applications to list faiuif " r(
ll9, ('!,, mi,i n.2.1. '""owing ,-.;
J13.48S.B00 first mo iZ. i1 Corim,
bonds (Calumet nnd Arizona Mi!i esSi
puny SCSO0.OOO capital ,?nVMl.n'n 6w
iiurgii. cinclnnat, Chicago r.i S "tit
ltallroad Company IIMswoT
Twenty-two rallmnd. .,...,.
week of January report m, . lh, fll
'.. " ncreiS of VuffiSj" 3
the C(irrCr.nn,ll ,. V. '10.5J1 n.!fl
,......,,,, nc,H PI Atl ..... '!'
At the annual iimi. .. ..
holders ot the Northern Plno t ,, ' 'lt
City today tho retlrm rti,lS?."n "i 0l3
elected. No chango was made In.i ' '
Ine nrtlroo naaB "I thl mi.
Ing unices.
,,s
,t. 'TM
"w reua
Albert N. Oraycv lias been ecct,d . ,' I
ant cashier of the People's Bank ""'"a
Hanks seined from the New York vl
treasury yesterday J19.000, and ln . Vl
Friday gained 4,0G5,O00. Inc ,lffl
A. H. Oeutlng has been elected a ai,M
of the Franklin Trust Company In Bi.f!Hl
Charles H. Clark, resigned. '" p,cl
Extra for National Rcfinlnif
CLHVKL-AND. O., Jan. 18, Th. w..
ltennlne Company lias declared an .!rSi
dividend of 2V, per cent on th r.J2Sl
Rtock, In addition to tho usual nurt,J
dividend oi j is per cent, payable FebmVil
15 to holders of record February 1 J?fl
the last three quarters extra dlvM.'.jcH
1 U per cent havo been paid. " Jy
States
b,cJ
Rubber Company
First and Refunding Mortgage Five ?6r Cent. Gold Bonds, Series "A"
Dug January 1, 1947
INTEREST PAYABLE JANUARY 1st AND JULY 1st
Coupon Bonds in denominations of $1,000, $500 and $100 each, with privilege of registration as to principal and
exchangeable for bonds (in denominations of $500 and larger) registered as to both principal and interest.
Fully registered bonds re-exchangeable for coupon bonds.
All but not part of the Series A Bonds outstanding may be redeemed on any interest date, on and after January 1, 1920,
upon 90 days' notice, at 105 and interest.
For information as to this issue of bonds, reference is made to a letter, dated January 15, 1017, from Samuel
P. Colt, Esq., President of the United States Rubber Company, copies of which may be obtained at the offices of
the undcrsiyncd, which states in part as follows:'
-PA,YMENTF MATURING BONDS "All existing bonds, and liens upon the properties, of United States Rubber Com-P-Jiiy
or subsidiaries, will lie provided for nt once anil will be paid on or before December 1, 1918, except $2,600,000 6 Gold Bonds
of the Canadian Consolidated Rubber Company, Limited (heriin after called the Canadian Company), which arc not due until
October I, 19-16, and except $0,000,0i)0 debentures of General Rubber Company, due December 1, 1918. . . . The debentures of the
. Ucncral Rubber Company are to !c left undisturbed for the present, as tile Company has under consideration other plans for dealing
n with its important crude rubber interests. ..."
LIMIT OF ISSUE "The Bonds arc to be of an issue limited to the. par amount of the Company's full paid preferred stocks
an" common stock now outstanding, plus any additional stock issued at not less than par for cash actually paid in; and further
limited so that no bonds in addition to $60,000,000 presently to be issued (1) shall be sold or pledged -prior to January 1, 1918, except
with your consent; (2) shall be issued, except for refunding . . . unless the unencumbered quick assets (as defined in the Mort
gage; of the Company and subsidiaries exceed their aggregate debt (as defined in the Mortgage), including the outstanding Bonds
aim any increased indebtedness resulting from such issue; (3) shall be issued, except. for said refunding, unless the annual net in
come (as defined in the Mortgage) of the Company 'and subsidiaries for three fiscal years next prior to such issue has been at
least tw.ee. the annual interest upon the entire debt of the Company and subsidiaries, including interest on any increased indebted
ness resulting from such issue; and (4) limited also to the amount of the present capital stock (about $97,250,000) except to the
extent ol any increase consented to-by the preferred and common stocks."
"Of the balance of the authorized issue $10,000,000 Bonds may be issucd-for additional working capital, and for develop
ment and for other corporate purposes, subject to the restrictions above stated, and out of the remaining bonds now authorized
reservation is to be made to provide for the $9,000,000 General Rubber Company 5 Debentures, due December 1. 1918, guaranteed
liy United Mates Rubber Company and Rubber Goods Company, until otherwise provided for, and the $2,600,000 Canadian Company
iiontls. due October 1 1946. Any additional Bonds and any Bonds not used for such refunding shall be reserved for capital
expenditures made after January 1, 1917, for additions, betterments and improvements or for new properties (including subsidiary com
panies against the pledge of their mortgage bonds), at 75 per cent, of cost; or not more than one-third of such additional Bond
may be issued for other securities and stocks at 60 per cent, of cost; all as shall be defined and provided in the Mortgage."
i SINKING FUND "On January 1, 1919, and annually on January 1 thereafter, the Company is to pay to the Trustee as a
sinking fund I7e.iii.cash upon the face value of the Bonds then outstanding, plus the amount retired by the sinking fund. Bond
holders shall be invited to tender Series. A Bonds for the sinking fund, and tile Trustee shall accept the Bonds tendered at the
owest prices, not exceeding lOaSe and interest, to the extent ot the moneys in the sinking fund available for Bonds of Series A,
hut to the extent not orociirnblc at or below 103fo and interest upon such tenders (or thereafter during the year in the market),
the Company sball.be relieved of its obligation for that year in respect to the sinking fund applicable to Scries A Bonds and
any balance remaining in the sinking fund for such bonds at the end of the year shall be credited upon the sinking fund for such
bonds for the following year or years.
i NET.,E?N"GT7"T,,e n;t ettrn!nB f tho Company and its subaidiary companies available- for interest . . . ai found
by Meiiri. Haskini & Sells, have been:
, For the' fiscal year ending December 31, 1914 $10,690,988.48
December 31, 1915 11,539,313.10
December 31, 191G, (partly eitimated) 12,500,000.00"
. INTEREST CHARGES "Interest charges of the Company nnd sub.idiariei, 'including the present issue of $60,000,000 Bonds
and interest pn the undisturbed bonds pf Canadian Consolidated Rubber Company. Ltd., and General Rubber Companybut excluding
!wrf,,p" obIaVon.s ,,1Vi!irill8,0i!,nrnfefor?.D?inbfV U V-S.- ""S1 "ow Pvided for, and on unfunded indebtedness to be pa 1 by
b" this issnc" $3,610,000. Considcrabls additional earnings should result from the use of additional capital provided
i nV n?,ASSf7S,7TrApplyi"K ,lh? I""0"01!? ,0..s.a'c f the $60,000,000 Bonds, the Company and its subsidiary companies would
fi.lf 9eJol,er -1' 19 0;vcr an1 aov- n" liabilities other than the new bonds and the undisturbed bonds, net quick ..,
,-XK2m,S nierchand,se and readily marketable securities (excluding securities issued by
f if in-,,iNAN,AL POSITION "The consolidated financial position of the Company and its subsidiary companies as of October
s atcd be low" TM.0. ?irB ' ", PrCeC V" Salc th'C 56P'0 .?,w "s " found by Messr T. IlLkn"P& Seils?would be aJ
Stated below. Th u itatement does not include any valuation of Eood-w II, re.urting from the old e.tabliahed butines. of the com"
Sl"thou.hnn themoDieornVafUrhl0 a??""?' propeTty '?" , d ".luipment i. given at tho amount a. c.rr" d a the book!,
although in the opinion of the officers of the companie., an appraiial at this time would result in a very much larger valuation:
Property, Plant and Equipment e4 on oU
Manufactured Goods and Material , .' iR70i?w'f
Securities Owned . io,yi,ja.ol
Net Current Assets, consisting oVcasli'and'recciVabl'cV.'ieVs pa'yabies.'.' .','.'.'.'.'.'.'.'.' .'.'.V.V.'.'.'.' 30840i29;U8
Undisturbed Bonds: $136,213,606.61
Canadian Consolidated Rubber Company, Ltd $2.600000
General Rubber Company 9000000
' ' ' 11,600,000.00
S. Leaving assets of S124 6nfif)fifii
or more than twice the $60,000,000 Bonds now to be issued." t.oio.ouo.ot
"I li infArrmtir e 1 funiaii nf ttia fin!1 !! P it. it ....
,.-.";."?""' "-""" ;" '" I'.uaiiiqn oi ine company and stibsid aries does not neurit n , ir,i,iii i iaew
amount
nose
$426,500
500 of
States
companies. -...j.,..v ,. uu, rcuarucu as 'suosioiary
THE UNDERSIGNED WILL RECEIVE SUBSCRIPTIONS FOR THE ABOVE BONDS AT QC3 PER CENT AND
7 ACCRUED INTEREST TO DATE OF DELIVERY, AT WHICH PRICE THE loNDS -!!
ifs Tiinn n-yi ri imnntu mtrcriiniitirti t ctnL- nr i, 1..1.
vi tn . w' Mstewfctaaa, UUldlHIIUIlik I UI PiUVH, ill IIIC IVIIIlllrT linni C -InillflKtlirinn I nln.. ..J (17UC 1 tf
outstanding) of stock of the Canadian Comnannn nwn,i I..7 Tir.,i' c.U'."V tt.y-'f"" ",V JOJ.'u" Ucss tian '(, ot
"The foregoing statements leave out of account the Canadian Consolidated Felt pLn'mv t !,;,-,i s
common stock s owned l.v tb TTnnndlnn romn-,,,,, ...i . 7- .....'"" S?.s?.l.luale,0..' eIA Company, Limited, a majority of v.
bonds of said co.npany. On November 3a 1i,' FmV'V"3' .VV1? i. .""a,ahP'"Pa'. " B.uarantor of.
&t
.,-., ;.r-.v . -.- Ma.u.u.-.s- .w.wMfi..4 i uaj mail ouvp. arc exciuueu. ?ai(i tnr rnmnnnc ifa. , i-j a
YIELD OVER 5.20 PER CENT. ON THE INVESTMENT.
ANY OF THE BONDS NOW TO BE REFUNDED BY THIS ISSUE WILL BE ACCEPTEDN PAYMENT
FOR NEW. BONDS UPON A 4 PER CENT. INTEREST BASIS TO MATORiTY.
, V
The subscription will be closed at three o'clock P. M. on Tuesday, January 23, 1917 or earlier th rlahr ,,.!
reserved to reject any application and to award a smaller amount than applied for TWt,SL
right to close the subscription at anytime without notice. fs"" ". ine unaersigned reserve the
A first payment of $50 per $1,000 bond subscribed for-.must accomnanv all suhserintlrm th, u i ,.
amount due on bonds allotted upon subscriptions wilUe 1x1 balance of tho
the offices of the undersigned, against interim recSfc-ELeiblefo; '
t All allotment will be subject, to the stockholders' authorization necessarv in ,m.na,i- tft !t y' .
the issue and to the approval of proceedings by counsel. amnonzauon nssary m connection with the creation of
!netlll.llowrt.onch.finit144nt.t;fffi
aDnlied
inW t
.. K1 - . . . i-uiuiH y iu, I'Jii. nu
to payjHe second installment, when due, will naTr&t bc rePaid- Failure
Ney York, January 17, 1917.
KUHN, LOEB & CO.
m
''. .Vr.'S'S;.'