ifffVHVWUHIRH Tittf.TWMMHll.1"' frTt,' V T&Wgr W7MHlMi TO? " WWT . ' fv fl aWWBF tv v Hvv.W - KTf, v ,"- j. - r v 2fl EVENING FUBUC LEDGER PHILADELPHIA, MONDAY, OCTOBER 20, 1919 7 i. '. I.-, ft H' w FINANCIAL BRIEFS K fTh nrrAffft nrlrn nf twentv Active V" industrial Btocks advanced 0.22 per cent fon Saturday to 113.20, while twenty railroads declined 0.: fcl.JS. 1 per cent to Progress on the Industrial confer ence at Washington Is, on the whole, h, satisfactory, greater cooperation be- fe Iween capital and labor being in cvi- , rience. In the industrial conference is m k' IB" &? ifc w ti " Ki. Library Bureau to teach file clerks Realizing tho need for well-trained file clerks, and wishing to extend to girls and women tho full est opportunity to study under practical teachers, Library Bureau has as sumed control and man agement of the Philadel phia School of Filing. To you, as a business mun, this move is of tre m e n d o u s importance. Somewhere in your office there is an ambitious girl who wants to study filing. Here, then, is her op portunity a Filing School in which she will learn not only the science of fil ing, but a broad practical knowledge of business procedure. Send one of your girls here for either the day or night classes. She will appreciate it your filing department will move more smoothly than ever before. Philadelphia School of Filing 910 Chestnut Street Telephone, rilbert 4J3(i Write. phonA or mil for (IrtniU. New class It Just Martins. about the only hone ot Krttllns the threatened coal miners' strike, which wbuld undoubtedly bo n national dis aster. Decrease of SllO.000,000 In loaiis and KJiln of $14,000,000 In reserves by New Vnrlr Imtilra ny ulum-li hv tlin nptllrtl statement of condition would seem to In- i dicate that towards the end of lust Vteek the money tangle mii beginning to Htralgliten itself out and that banks hae tho situation lu hand better than was generally regarded. Hanking syndicate composed of Horn blower & Hecks, Hankers Trust Com ir.ny, and Ilalsey, Stuart & Co., of New York, and lluyden, Miller & Co.. of Cleveland, are offering $2,"00,000 American Chicle Company (i per rent serial notes, maturing 11120 to 1027, Inclusive, nt prices from VHVj to !)') to jlcld from Oil to (Hfc per cent. Tlie-c notes are a direct obligation of the com pany and it agrees, nt nil times, to maintain its net current asset at not less than 150 per cent of the principal' amount of the not"s outstanding. The j American Chicle Company Is u consoll I dation of some of the largest chew lug gum manufacturers in I'ulted States. Crcat ISrltaln and Oaur.dn. The annual dinner of the cmplojes of i Hie Ninth National ltauk was held at1 the Bellevue-Stratford, Snturda even- ing. Toastmnsfer was .lohn (. Sonne-, born, vlre president. Speakers of the ctening weie Itu W. Humes, president of the br.uk, and the Ilev. Howard II. McDade, of riiiladclphla. It has been often said that the Lou- I don exchange traded in everything from1 street railwujs lu South Africa to land I properties uuir the Arctic zone, but New1 York seems destined. In the view of! man, to take the place of London to a gieat extent In the breadth of Its I trading activities. i Blank Cartridge May Ruin Sight Benjamin Ilodgeon, sixteen years old. 720 Clinton street, Camden, may lose tho sight of his left c.e ns the result of being struck by the wad of a blank cartridge llred from n gun bj Leon Terry, fifteen jours old. !i"l North Tenth street. The bojs were plajing with tho gun when it uericlentallv ex ploded. Ilodgeon was taken to Cooper Hospital. Terry was held in WOO bail by Recorder St.ickliouse. GOSSIP OF THE STREET BANKER SA YS BUDGET S YSTEM WILL NOT REDUCE EXPENSES Necessity in Washington of Legislative Sjririt Responsive to Demands of People for Strictest Economy AN INVESTMENT banker, when speaking of the possibility ot a budget system being ndoptcd for our national finances a plan which he in common with almost every financier in this city approves said that in sonic minds he believes there is a belief that the adoption of a budget system meant a positive reduction in our national expenditure. Such is not necessarily the case, he remnrked. A proper budget system, he said, should be the best means of ledticing expenses, but the budget's stiong point Is Its power to control; precedent to that there must bo ii legislative spirit In Washington responsive to the demand sif the people for 'the strictest economy In every department, consistent with tho immediate needs of the country. If uuythlng were needed to prove that a budget system nlono would not l educe expenses, it could be found in the present financial condition of Great Itritain, he said, which is supposed to be the birthplace of the budget system. The leading London papers proclaim England ns being on the road to finan cial ruin, and that her salvation depends on the measures to be put in operation on the reassembling of Parliament. He remarked that these conditions are creating considerable unrest. One paper, in giving figures to prove its btiiteinent. snld that (treat Iirltain'a expenditures from May I of this year to October I Inst are approximately Sit, 700,000,000, with lccelpts for the same time of $2,300,000,000. This banker did not consider Britain's financial plight so serious as these London papers would make it appear. He said her resources, on which she can draw- in an extremity, are virtually limitless. Hut to return to the budget system, he snid n majority of the governors of the different states are all in aims against the present slipshod methods ot national expenditures, and more than forty of them have In operation some sort of n budget sjstem. Only a vigorous protest from our overtaxed taxpayers to their icprc-cntatives in Congress can bring about this much needed reform, ho snid. Philadelphia Investment Hankers at St. Louis The following members of the Investment Hankers1 Ah-oemtion of Americu, in this eitv, left North Philadelphia stutlon of the Pennsjlvnnin ltnilroad on Saturday last in a special train for the annual convention of the Association at St. Louis: . William Wollerton. II. V Hnehmaii & Co.; George de 1!. Keini. Chandler & Co.; (ieoige K. Iteilly, Iteilly, Hrock & Co.; Frank Schwab, West & Co.; A. 15. Mcllnr. I'ni.ier & Co.; .1. Lewis Henry, Riddle & Henry; H. O. Peebles. Brown Brothers & Co. ; J. Clark Moore, Jr., Barclay, Moore & Co.: Lewis II. Parsons and A. G. H. Steel, Graham, Parsons & Co.; William West and W. W. Watson, Jr.. West & Co.; Hubert K. ('as sail and T. Johnson. Wind. Cnssatt & Co. ; Llojd A. Munger, HaKey. Stuart & Co.; Chile L. Paul. Paul J. C ; 1".. G. Pnrsly Harper S. Turner; Joseph Dixon, Graham Parsons e. Co ; Clnr-nce II. Chirk, .".d. E W. Clark NEW ISSUE $4,000,000 Panhandle Producing & Refining Company 8 Cumulative Convertible Sinking Fund Preferred Stock Preferred as to both assets and dividends. Dividends cumulative from October 1, payable quarterly beginning January 1, 1920. Redeemable in whole or in part at 110 and accrued dividends. Convertible into common stock at the option of the holder in the ratio of one share of preferred for two shares of common stock. Free from present Normal Federal Income Tax. 1 1 Hr uthnrUM 8 Cumulative Convertible Preferred Stock (par $100) $4,000,000 Common Stock (without par value) 300,000 shares. The Company will have no bonded debt. 1'iestntly OjtsUndiiiE $4,000,000 180,000 shares COLUMBIA TRUST CO., NEW YORK Transfer Agent to the GUARANTY TRUST CO. OF NEW YORK Registrar Mr. Roy B.Jones, President of the Panhandle Refining Co., has summarized his letter Bankers in reference to this issue as folloios: The Panhandle Producing & Refining Company has been organized to acquire the entire capital stock of the Panhandle Refining Company of Texas, which in turn will acquire substantially all the properties heretofore owned by Brown & Jones, Roy B. Jones, Trustee, The 6666 Oil Co., The Trojan Oil Company and the Panhandle Boiler & Machine Shop. The Company, through its subsidiaries, will constitute a complete unit for the production and refining of oil. PRODUCTION AND LEASES Settled production of more than 1,500 barrels a day, and in addition an estimated flush production of more than 5,000 barrels a day. The Company will own either in their entirety or the operating control of more than 20 pro ducing leases covering about 1,000 acres in Wichita County, Texas, including 40 acres in the Burkburnett Northwest Extension and a one-third interest in a 22-acre lease in that same field ; also 81 acres in Cotton County, Okla. ; together with leases on about 30,000 acres of undeveloped territory in Texas and Oklahoma. REFINERY AND PIPE LINES At Wichita Falls, Texas, the Company will own a refinery of 5,000 barrels daily capacity; eight miles west of Burkburnett a casing head gasoline plant of 750,000 cu. ft. capacity, with storage facilities and nine miles of pipe lines; and south of Electra another gasoline plant of 350,000 cu. ft. capacity. The company will own a present storage capacity of over 230,000 barrels and with addi tional tanks now being built will have a storage capacity of over 600,000 barrels. The company will own approximately 60 miles of pipe lines and 200 tank cars. VALUATION The Company's properties, including its net quick assets, are conservatively estimated to have a present value of more than $8,500,000, or over twice the amount of the preferred stock issue. This valuation has been confirmed by independent experts. EARNINGS After making allowance for interest charges which will be eliminated by this financing the earnings before depreciation and taxes, including Federal taxes, for the 12 months ended December 31, 1918, were $1,243,663.28: for the 12 months ended June 30, 1919, were $1,951, 148.57, and for six months ended June 30, 1919, were $1,183,976.50. Earnings after depreciation and reserve for all taxes, including Federal taxes: t 12 months ended June 30, 1919 $1,229,549.63 6 months ended June 30, 1919 816,205.35 Rate per annum earned on PrefcrrM Stock for tha pernod $30 40 fUto rer annum on Common Stock presently outstanding after rtrt. dividends $5.05 7.28 CONVERSION PRIVILEGE The preferred stock is to be convertible into common stock at the option of the holder in the ratio of two shares of common stock for one share of preferred. With earn ings so largely in excess of preferred dividend and Sinking Fund requirements, and the valua tion of the properties, including its net quick assets, over twice the amount of the preferred stock issue, the common shares have a substantial value and one which in due course should make the conversion privilege of the preferred stock attractive. SINKING FUND For the retirement of the preferred stock there is provided a Sinking Fund amounting to 25 of the net profits after preferred dividends, but not less than $400,000 a year, until the preferred stock is reduced to $3,000,000; similarly thereafter 25 of, the net profits, but not less than $300,000 a year until the issue has been reduced to $2,000,000 ; and like wise thereafter 25 of the net profits, but not less than $200,000 per annum until the preferred stock has been retired. We offer this stock when, as and if issued and received by us. ' PRICE 97 AND ACCRUED DIVIDEND Purchaser of Preferred Stock will have the privilege of subscribing to the Common Stock at $25 a share on the basis of one share of Common for each two share of Preferred. Hayden, Stone & Co. New York Hemphill, Noyes & Co. New York Merrill, Lynch & Co. New York F. S. Smithers & Co. New York All statements herein are based on information which we regard as reliable, and while we do not guarantee them they are the data upon which we have relied in the purchase of these scurities. & Co. ; Arthur'Quy, Hemphill, Noyes & Co., and Charles P. Stokes, Mont gomery ti Co. Many Steel Mills Working al Full Capacity A broker who Is lu tout-h with the Pittsburgh steel district, including the adjacent steel towns in the Mahoning and Shenango valleys, said the reports reaching him through ordinary correspondence nrc all to the effect thnt the return of the workers to tho mills has been the largest last week of any week during the strike. .,, He said, ns he understands the situation, many of the mills and furnaces ore working at full cnpnclty nnd orders for steel uro piling up, but the companies nre not ncccpting Inrgc orders without a thorough understanding as to the time of delivery. He said ho looks for a continuing strength In the well-known steel Btocks, with higher prices, a he anticipates nu early agreement nt the labor conference in Washington. One thing the labor leaders must bo painfully nwnre of, he said, is that each day the settlement Is withheld weakens their position. Railroads Doing Record Business for Season According to n prominent local banker, the country is doing a larger business on Its railroads thnn ever before for this seuson of the year. But, ulthuugh still under government control nnd operation, he said, the roads arc subject to tonic inconveniences which were not in existence Inst year. Take, for instance, the transportation of coal, Last year, he remarked, the coal -producing districts were zoned, and coal was distributed to con sumers from the nearest mines. While this plnn was discontinued, he said, it is probable In the event of the threatened conl strike It may be put in operation ngoin Then, last year and nlso for tho previous jenr, cars were filled to the bursting point, so ns to cut down the number of cars used. This alto was done away with, nnd now many more cars arc required to move the same quantity of freight. Today, he continued, the amount of freight offered to the Toad is away in excess of the cnpaclty of the roads, and there is no denying that expan sions and additions necessary for the natural growth of the country have been neglected on account of the requirements for the wnr along other lines. This bunker predicts n boom in railroad stocks und securities just as soon ns the country settles down to serious business, which he claims it is beginning to do. August Exports $76,000,000 Greater Than in July Ueferrlng to our foreign trade for tho month of August, the Guaranty Trust Company ot New York tnys : The dicline in the export trade indicated by the Jul figures did not continue in August. The value ot exports In August wus $(Mli,27l),614, or K7(l, 000,000 more thnn in July. The Value in August, 1018, wns ?527,013, 010. Imports In August were valued at ?30S,0I0,-l(i0, u decrease of $35,000,000 ns rotnpnred with July, but n substantial gain over the ?273,-002,01-1 recorded for August, 1018. The excess of exports over imports was ,T3.'i8,2iO,lfU, as compared with $2,"4, 01 1,002 in August, 11)18. For the eight months ended with August, exports were valued nt ?i"127fi,000,00fl, as compared with .?4,000.000.000 for the corresponding months of 1018. Imports were valued at $2,001,000,000 for these same mouths this jenr, against ,$2.2(13.000.000 in the corresponding period of 1018. Gold to the amount of $lti,1&9,3l8 wns exported in August, ns against imports of S2.4II0.1S!). ' Carstalr.s A Co.. commenting on market conditions, say : Untitling restraint upou n market which had appeared all too willing to rush to further dnngerous extremes, has made for n degree of improvement in the general financial situation, but it is obvious that this rcstiaint must continue if there Is to be .substantial foundation for nnotlier upward swing in security prices. There is reason to believe that the dominant banking inter ests have the situation well in hand and will keep the market within, bounds. Meanwhile, there probably will be nu irregulnr movement of prices with the tendency finctlonally downward, until tho money situation lias clnritied. A most important development to be looked for is the Supicnic Court decision on the stock dividend question. It is understood that the railway managers are becoming a bit more optimistic following their get-together meeting last week in New York. llerlirr A Co. suy : The market hns given good account of itself this week under some very discouraging circumstances. High money rates, more than mi) thing else, hns held the market in check and will continue to do so until there is more money to speculate with, and this we cannot hope for until the crops nre safely stored, n matter of vital importance to the future welfare of the market. The banks gave a warning in the 10 per cent renewal rate thnt the market must beat time for a while, nnd it v mild be well to heed this signal, which experience teaches means exactly what it siijh. The market has much that will he favorable in the future to discount when it is permitted to do so. BUSINESS NOTES" Shortage of the better grades of alt kinds of leather Continues to trouble manufacturers. Consignments of goat skins, sheepskins, calfskins nnd hides are received regularly in tho market, but not in sufficient quantities to meet requirements. The general market is strong and active, with tanners re ported to be far behind on deliveries. According to mill agents, lite forth coming spring production ot woolen goods Is almost all sold upon the allot ment basis. Jobbers, who arc the ouly ones hnvlng any accumulation of win ter goods on hand, report slight demand for immediate use. Dullness in the Women's garment industries has greatly curtailed tho demand for cloth In that field. Trading was brisk iu (lie gray or unfinished cotton fabrics market lust week. Converters placed substantial orders for these materials, both for immediate and future delivery, running ns fnr ahead as next July. Tho ruling price of 04 00s, n standard gray fab ric, wns firm most of the week, nt 18 cents a yard. This W-as an ndvauco of n cent n yard over prices of the pre vious week. Under pressure of heay demands for raw silk by mills in this country nnd abroad, the price of tho fiber rose to dizzy heights last week. Shlnshui No. 1,. a standard grade, passed the $11 mark, an advance of about 50 cents over the week previous, and Knnsni double extra came within 15 cents of reaching $12. The shortness of the world's supply with an ever-Increasing demand for finished goods is the reason given for the heavy buying by mills. Tho beginning of the spring whole salo selling season iu men's clothing was accomplished quietly last week. More manufacturers are expected to be ready to take spring orders this week. Jinny of the houses have ndoptcd the allotment plan in sen Ing their cus tomers nnd are limiting the amount of merchandise they will permit individual retailers to purchase. This is a result of short stocks of spring fabrics and the labor situation, which the manu facturers believe will curtail produc tion during the months to come. The once familiar "Made In Ger many" is not nppcarlng on products of (icrmnii manufacture, since armistice, which are finding their way into con tinental markets. An American sales man who hns just returned to London from Italy has several samples of the goods (icrman firms nre distributing there. Each bears some symbol, but none the three old words. Following the auction 'sale of the Church Spectacle for New York New York. Oct. 20. The Tnterchun-li World Movement announced that "The Wa)fnrer" would be presented at Madi son Square Garden tor five weeks, be ginning December 15. "The Wayfarer" is the spectacle thnt challenged the at tention of the country at the Methodist centennr) celebration at Columbus, O., June 20-July HI. Federal Tax Reports course In nnrtinlzhif? material nnd work- mc out nil rornn renuireu lor ImlUtdual Income Tux Corjiorutton Tn KcesH l'rofltft Tux. Actual reports will be made and blank filled nut Individual problems dl&cussed nnd analyzed Mm In Accounting Offices, IJnnlcn, Trust Companion, nnd CommerclHl nnd Industrial Orcnnlzullons who hae IVderal Tuv Re pnrtK to mitko out will find thin course of creat value Mr. John C, Hfrndon, Jr.. of tho ilunrnntv Trust Company or New York will conduct tho courae. Cnll or urite lor lu particular. YMCA Central Branch. 1421 Ar.qh Street ll. week before, activities in all branched of the fur trade last week reached n low ebb. Colder weather Is expected to start a buying movement on tlic part of tho general public that grad ually will work back through the va rious Intermediaries to the raw skin merchants. Although transactions were few, price's remained (Inn throughout the week, showing that confidence U being maintained. Lisbon Chooses Machado Senator Lisbon, Oct. 20. Bernardino Mac hado, formerly president, has been elected senator to represent Lisbon. The minister of wnr, General Covaro, was elected deputy. Send For This Free New Book It contains much valu able information about the market. The experi enced trader as well as those to whom the mar ket is strange ground will find it' helpful. It tells The General Rules of Trading. How to Give a Broker Instructions. Brokers' Commission Charges. How to Indorse a Stock Certificate. How to Use Collateral in Trading. How to Group Invest ments. The Deposit Require ments for Carrying Stocks on Account The Rights of Stock and Bond Holders, etc. Written in simple lan guage and easy examples given. No obligation. Edition limited. Call, 'phone or write at once. Ask for No. T. U.-634 JONES & BAKER SECURITIES Widener Bldg., Philadelphia l'hsret Bill, Walnut 6063 Ktytcm, Race 2290 Dttttt frlvlt Iflrii New York. Detroit rlmborj CMiacu nalttmere Uoaton I I.I. , 1 1 J A paid $2,000,000 ing 7 Cumulative First Preferred Stock Preferred as to both assets and dividends Redeemable as a whole or in part at 1 1 5 and accrued dl idend on 3 days' notice Dividends payable quarterly March, June, Stptember and December 1 Par value $103. Total authorized $5, 00.003. Total outstanding, . including present issue. $3,976,900. Bankers Trust Company, New York, Registrar. United States Mortgage 8c Trust Company, New York. Transfer Agent. A sinking fund of at least 3 per annum of the total amount issued, beginning 1921, provides for the purchase of this stock up to the redemption price. Free of the United States Normal Income Tax The following information is summarized from a letter to us from Mr. J. W. Spalding, President of the Company: Property and Business A. G. Spalding & Bros., established in 1876, manufactures practi cally all kinds of athletic equipment. With the exception of certain retail specialties, ap proximately 90 of the goods sold by the company through its widespread sales organ ization are of its own manufacture. The company has upwards of 35 branch stores in the United States and England, as well as store? in Canada, France, and Australia. Average Net Income for 10 Years 3y2 Times Present Dividend Net income after provision for Federal Taxes and available for dividends and depreciation reserves follows: 1912 $ 955,846 1911 G99.753 1910 ,. 747,078 1909 1,090,802 Net Quick Assets, $180 per Share-The consolidated balance sheet as at July, 31, .1919, after giving effect to the present issue, shows net quick assets of $7,085,751, equal to $180 per share of outstanding First Preferred Stock. Total Net Tangible Assets, $270 per Share Total net tangible assets are shown as $10,629,997, equivalent to $270 per share. i Maintenance of Net Assets The company agrees to maintain net quick assets of at least $125 per share, an,d total net tangible assets of $225 per share of First Preferred Stock. Restrictions on Further Capital Issues The company has no funded debt. No bonds ' or notes, (other than current bank loans) or stock ranking ahead of or equally with this issue, can be created except with the consent of the holders of 75 thereof. 1918 ?1,034,256 1917 943,404 1916 1,165,080 1915 $ 999,682 1914 948,951 1913 " 1,010,098 We 0ffer this First Preferred Stock when, as and if issued and received by us, and subject to the approval of legal ?naiters by our counsel. Price 100 and Accrued Dividend , t Wm. A. Read & Co. Smith, Moore & Co. 1421 Chestnut' Street Philadelphia, Pa. 509 Olive Street St. Louis The information contained herein lias been obtained from sources which wei consider reliable. While not guaranteed, it is accepted by us as accurate. "fl JS o . -A SEC 13SS3Sr Mi fllWfMhSffg i . - . 'j- . - n rfT: " -K iJ m, fe!dLsiiMBiiHttMUii!.Lnl, L-.Ai.J JMrV-rn- jWWffrtfllL.rr'&l0 Ai'lW'iniriiWffe -if'
Significant historical Pennsylvania newspapers