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EVENING' PUBIiip iEDGEB-l'HILADBLPIA, TUESDAY, 'APBZti rl3,v 1920
10
$25,000,000
Southwestern Bell Telephone Company
Five Year 7 Convertible Gold Notes
Tdtx dated April 1.1920, To mature April 1, 1925
Interest payable April 1 and October 1 in New York City
Coupon Notca, regUterable aa to principal only, in denominations or $1,000, $500 and $100, interchangeable
Redeemable at the option of the Company, upon 60 daya notice, In whole or in part, on any interest date, at 103 Jt
and interett on or before April 1. 1922; at 102 and interott thereafter and on or before April 1,1924; and
at 101 and interest thereafter
$50,000,000 Authorized Presently to be Issued $25,000,000
Conrertible at the option of the holder, at any time on or before maturity, into the 1 Cumulative Preferred Stock
of the Company, par for par, with adjustment of accrued Interest and dividends. If called for redemption,
Note may be converted up to and including the redemption date
Guaranty Trust Company of New York, Trustee
A letter from Mr. E. P. Ninas, President of the Com
pany, a copy of which will be sent on request, is
briefly summarized as follows:
BUSINESS
Southwestern Bell Telephone Company was incor
porated in Missouri in 1882. Upon completion of
the merger now being effected, it will directly own
and operate the properties of the Bell Telephone
System throughout the States of Missouri, Kansas,
Arkansas, Oklahoma and Texas, which for many
years it has owned or controlled through subsidiary
companies. The Company also owns the entire
capital stock of the Southwestern Bell Telephone
Company (of Illinois), which owns and operates the
Bell Telephone System property in East St. Louis,
Illinois, and over 90 of the capital stock of the
Dallas Telephone Company.
The franchises of the Company and its subsidiaries
are in every respect satisfactory. The Company
serves one of the most rapidly developing sections
of the United States.
The American Telephone and Telegraph Company
owns all of the Company's common stock, excepting
directors' qualifying shares.
PROVISIONS OP ISSUE
The Notes are to be the direct obligations of the
Company (which has only $1,261,400 outstanding
underlying bonds which may not be increased), and
will be issued under a Trust Indenture, which will
provide, among other covenants, that so long as any
of these Notes are outstanding:
The Company will not mortgage or pledge any
of its property, or permit any of its subsidiary
companies to mortgage or pledge any of their
properties, but this shall not prevent the
acquisition of property by means of purchase
money mortgages.
The maximum indebtedness of the Company
shall at no time exceed $50)000,000, except
that additional borrowings may be made, pro
vided that such borrowings are specifically
subordinated to these Notes. Current liabili
ties to the extent that they are offset by current
assets arc not to be included in this restriction.
EARNINGS
Gross Telephone Revenues have increased from
$19,013,921 in 1915 to $29,019,993 in 1919 and Net
Income available for interest (after depreciation) has
increased from $4,694,765 to $6,061,385 in the same
period. After giving effect to the present financing,
interest charges on the Notes, underlying bonds, and
remaining floating indebtedness to the American
Telephone and Telegraph Company, will approximate
$2,500,000 per annum.
FINANCIAL
Upon completion of this financing, the Company will
have tangible assets (after deducting reserves for
depreciation) in excess of $102,750,000 in contrast
with total liabilities, including these Notes, of about
$41,760,000. .
The Company's plant is carried on its books at
$89,200,000 against which it has set up reserves for
depreciation of $17,675,000; the present reproduction
cost is conservatively estimated at over $120,000,000.
For the five years ended December 31, 1919, divi
dends paid out of earnings amounted to $12,973,000.
During the same period investments in the property
out of earnings after spending over $15,000,000 for
current maintenance amounted to over $25,500,000.
APPROVED BY PUBLIC SERVICE COMMISSION OF THE STATE OF MISSOURI
f
Price 97Vfe and interest, to yield over 7.60
n
O
When, as and if issued and received by us. It is expected Temporary Notes or receipts will
be ready for delivery about April 20 '
All letol details pertaining to this issue will be subject to the approval oj Messrs. Stetson, Jennints & Russell, of New York
Guaranty Trust Company of New York Morton & Co., Inc.
Kidder, Peabody & Co. Illinois Trust & Savings Bank
Halsey, Stuart & Co., inc.
Ws do DotTtturustM the sutsmuulssd fxurej pretested herein, but they axe Uien from onrcei whieh wo beliera to bo setunts
NEW ISSUE
Legal Investment for Rhode Island Savings Banks
$1,000,000
The Ohio State Telephone Company
Serial 7 Convertible Gold Notes
Dated March 1, 1920.
5100,000 Semi-annual maturities September 1, 1920 to March 1, 1925.
Principal and interest payable at the office of J. P. Morgan & Co., New York City.
The Company will pay the Normal Federal Income Tax not in excess of
two per cent. Pennsylvania Stale Tax of 4 mills will be refunded.
Property
The Ohio State Telephone Company consists of 78 local
telephone exchanges in Ohio including systems in Cleveland,
Columbus, Toledo, Dayton. Akron, Youngstown, Canton,
etc., embracing 148,000 stations. Also a comprehensive
system of long distance toll lines of more than 34,000 miles
of line wire. The Company has connections with long
distance' systems in eight other states.
Value and Franchises
The total funded debt including these notes is less than
53. of tho value of the property. The franchises are
unusually satisfactory, being for the most part unlimited as
to time.
Conversion Rights
These notes arc convertible into Consolidated and Refund
ing" Mortgage 50 Donds, due July 1, 1944, at 90. These
bonds have sold at or above the conversion price every year
since the issue has been outstanding.
Earnings
Gross earnings arc in excess of $5,000,000 per year.
Net earnings over double total interest charges. For the
calendar year 1919, after deducting all interest charges
including interest on these notes, there remained a balance
enuivalent to over five times the annual maturities ($200,
000) of these notes.
These notes arc exceptionally well secured and provide a
conservative high yield investment.
Price:
100,000
100,000
100,000
100,000
Sept, 1, 1920, at 99,76 and int. to yield 7Vift $100,000 due Mar. I, 1923, at 97.3S and int. to yield 8
Mar. 1, 1921, " 09.53 " " " 7Vift 100,000 " Sept. 1, 1922, " 97 8
Sept. J, 1021, " 98.61 " 8 100,000 " Mar. 1, 1924, " 96.63 " 8ft
Mar. 1, 1922, " 98.19 " ' 8ft 700,000 " Sept. 1, 1921, " 96.28 " " " " 8
Sept. J, 1922, u 97.77 " " " " 8ft 100,000 " Mar. 1, 1925, " 95.95 u " " " 8ft
B0DELL & CO.
120 Broadway, New York
Providence
Boston
Th lUtUtlci contained tn thli advertisement are not guaranteed, but have been obtained from sources which we believe to be reliable.
NEW YORK BOND SALES
Sammarr at Individual Transactions on New York Exchange
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German Bank Statement
DerUn, Via London, April 13. The
atatoment of tho Imperial Bank of
Germany, Issued March 31, shows the
following changes: Total coin and
bullion, Increased 6,151,000 marks: gold.
Increased 104,000 marks; treasury notes.
Increased 360,116,000 marks; notes of
other banks, decreasod 1,444.000 marks;
bills discounted, Increased 4,114,826,000
marks; advances, decreased 12.472.0uo
marks; Investments. Increased 129,465,
000 marks; other securities. Increased
926,377,000 marks ; notes In circulation,
Increased 1,822,668,000 marks; deposits,
Increased 3,969,564,000 marks; other
liabilities, decreased 273,976,000 marks.
Total gold holdings, 1,091,453,000 marks.
Financial Briefs
Not bnly havo predictions of a gen
eral movement toward lower commodity
frlcco, encouraged by a slight recession
n wholesale quotations as of March 1,
thus far failed of fulfillment, but Dun's
Iridox Number as of April 1 attained
a new high level at J2577901. This ng.
ura Is 1.9 per cent above the $263,016
of a month earlier, and reveals an In
creaso of 1,6 per cent over the $263,748
of February 1, which It had been
thought might stand as tho record total.
Comparing with tho $219,973 of April 1.
1919, when on advanco of 1.4 per cent
was established, following several
months of yielding, tho present Index
number discloses a rlso of 18.8 per cent
whllo from tho $120,740 of August 1,
1914. an upturn of 113,6 per cent ap
pears. The average price of twenty actlvo
industrial stocks declined 1.29 per cent
yfsterday to 103.94, while twenty rail
roads declined 0.88 per cent to 74.76.
Tho New York Substreasury gained
$3,041,000 from tho banks yesterday,
making a cash net gain slnco Friday of
$6,167,000.
Tho stock list commlttoe has today
admitted to tho regular list of tho Phlla
dilphla tock Exchange the following
securities of tho Philadelphia Electric
Co.: $29,966,076 capital stock, rep
resented by 1,198,603 shares, par $26
each, and $36,663,300 first mortgage B
per cent gold bonds and $1,671,700 first
mortgage gold bonds, coupon and
registered, due October 1, 1968. This
action removed tho above securities from
tho unlisted department of tho exchange
NEW YORK COFFEE MARKET '
New York, April 13. Tho market jjf
coffeo futures opened Irregular, 8 perMa,
higher to 4 points lower. ...,,J
Then was a continuation of the ?.
lng of May contracts by a leading w
blng Interest- Liquidation by outsM
and Wall street interests supplied te
demand. Importing houses were sellers,
of tho moro distant positions.
(N. T. timej
May...
July..-.
Hept. . .
Dec. . . .
Bid.
Yes. eloee
14.1B4M4.21
14.88W14.40
14.10014.13
14.02014,03
onen
14.lefol4.20
14.a76l4.30
14.12014.13
14.04W14.ua
11 a.m.
ie.au
14.0
Liverpool Cotton
Mrerpool. April 13. Spot cotton was)
dull today with' prices easier on tho
basis of a decline of 23 points for mid- -dllng
at 27.64d. The sales were 2000
bales. The receipts wero 17,000 bales.
Including 11,400 bales American. Fu
tures wero quiet In the early dealings.
Spot prices were: American, middling
fair. 32.89d; good middling, 29.4d;
fully middling, 28.64d; middling. 27.64d
low middling, 24.34d: good ordinary
21.14d; ordinary, 20.14d.
DIVIDEND8 DECLARED
Public 8rvlee of Northern Illinois. Quar
terly of 1 per cent on common and l',4
per cent on preferred, payable May 1 to
atock of record April IB.
Famous riay.er-LrfiBKey orroraiion, a per
payaDie
rnt on preferred.
nt rpord Anrlt IP
General Clsar Co.
cent on common,
record April 24.
May 1 to atocK
nuarterlr of 14 tier
payable May 1 to stock of
O
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o
01
90
00
004
004
004
00
00
00
90
90
2 00
3 00
1 00
U K Q D I 3T
6.. .. 87
1 87
10 ... S7Vj
I 87
II . . . 87 4
1 S7
U S Mexico 3s
1 29
U 8 3 M ft R
Co 0s
.1 100
6 . . . 100
I.. . 100
fe
SAFE
PROFITABLE
INVESTMENTS
fiZlElt6.G
BROAD AND 8AN80M 8T8.
PHILADELPHIA
IB SOUTH ST.. BALTIMORE
5 BROADWAY. NEW YORK
?
oaoc
n
r
WHY no investor lias ever
lost a dollar of principal
or interest on any security
bought of S. W. Straus & Co.
" VI.
First and Last
"N these days of labor unrest, extension of Government regula
tion, and economic upheaval, shrewd investors are turning
more and more to investments based on the one solid funda
mental security the land and its improvements.
Eveiy bond safeguarded under the Straus Plan is a direct first
mortgage on a carefully selected, high grade, profitable building
and land. This security, improved real estate, the ground under
foot and a roof overhead, is ,
THE FIRST necessity of human life, and
THE LAST to be affected by wars, panics,
adverse legislation or changing conditions.
The first mortgage serial real estate bonds safeguarded under the
Straus Plan have withstood the changing conditions of thirty
eight years, including two wars and four financial crises, without
a dollar's loss or a day's delay in payment to any investor.
Our booklet, "Safety and 6," should be in the library of every
investor. It tells how to test the safety of any investment and
describes in fullest detail the principles which" conservative and
prudent investors follow. Call or write for it today and ask for
BOOKLET NO. Q-314
S.WSTRAUS 3& GO.
t ESTABLISHED 1882 INCORPORATED
STOCK EXCHANGE BUILDING, PHILADELPHIA
Joseph H. Rubin, Resident Manager.
SAN FRANCISCO
NEW YORK
CHICAGO
DETROIT
CLEVELAND
BOSTON
WASHINGTON
BUFFALO
MINNEAPOLIS
PITTSBURGH
MILWAUKEE
INDIANAPOLIS
Thirty-eight years without loss to any investor
3OE301
301
30E30E
30E30E
30Z30E
H. H. Franklin Manufacturing Company
(Franklin Automobile Company)
Syracuse, N. Y.
1 Cumulative Preferred Stock
Additional $1,000,000 Issue
$5,000,000 Authorized
$3,500,000 to be Outstanding
Non-assessable.
Price $100 Per Share
Retirable on 60 days' notice, at $110 and accrued
dividends.
Dividends accruing from date of issue are payable February 1, May 1,
August 1, November 1.
Earnings
Average yearly
earnings for past
after depreciation
were four times the
five years,
and taxes,
dividend requirements on en
tire preferred stock authorized.
1919 net earnings were at the
rate ot seven times these
quircments.
Sinking Fund
re-
Assets
As shown by certified
balance sheet at Dec.
31, 1919, each share of Preferred
Stock outstanding on that date
is protected by $404 net assets
and $231 net quick assets.
A sinking fund
consisting o f
150 of net yearly earnings after
payment of preferred stock div
idends and taxes becomes effec
tive January 1, 1922.
The proceeds of the sale of the
present issue will be used prin
cipally in the enlargement of
manufacturing facilities.
Dividends Exempt from Federal Normal Income Tax.
For Circular and Subscription Blanks, address
H. H. Franklin Manufacturing Company
Syraciuo, N. Y.
2 v
301
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