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NEW ISSUE
Xi
- $900,000
Indiahoma Refining" Company
$? V-
Seven-Year 8 Sinking Fund Convertible Debenture Notes!
J.
Dtted Januuy 1, 1021,
De JaaeAiy If 102ft
' Intwtit Payable January! and Juljrl.
AutheHied $1,250,000, te be preienUy luued $900,000. ' '
COMMERCE TRUST COMPANY, BALTIMORE, TRUSTEE
Cernea note in denomination of $1,000, registerafaie as te principal. Interest payable at office of the Trustee,
in the City of Baltimore, without deduction of the normal Federal Income Tax up te per annum.
Redeemable aa a whole (but net in part except through the operation of the Sinking Fund) at
. the option of the Company, en four weeks' notice, en any interest paying date, at 107
and-accrued interest en or before January 1, 1923, and thereafter at 107 and
accrued interest less 1 for each twelve months or part thereof elapsed
after January 1, 1923.
Convertible at face value at the option of the holder into common stock of the Company, at par ($5.00 per
aearej any nme oeiere mammy or u called ter redemption up te the date fixed ter redemption,
previaea max wnnen nonce ei election te convert snail nave beez
N ..
been given te the Trustee net
less than -five days prier te maturity or redemption date.
Mr. Elmer E. Soheck, President of the Company, has summarized hie letter te ua aa follew:
BUSINESS AND PROPERTIES: Indlrtemt Refining Company, organized under the Uws of Oklahoma In May, 1912, Is
encaged In the wodectlon, refinlng'and marketing of petroleum and its product!. It'ewna two refineries with a combined
daQy capacity of 15,000 barrels, one located at East Skleuls, 111., and the ether at Okmulgee, Okla., and own Interests in oil
and gas. leases en approximately 53,940 acres of land, located In Oklahoma, Texas, Arkansas and Kansas, from approximately
2,240 acres of which the Company is new receiving a dally net production of approximately 2,300 barrels. It also owns 602
tank cars, subject te certain equipment obligations, and all the stock of Indiahoma Pipe Line Company, which owns mere
than 150 miles of pipe line.
'SECURITY: The Debenture ITetes sf e te be issued under the terms of a Trust Agreement, te be dated as of January 1. 19221
and te be made between Indiahoma Refining Company and Commerce Trust Company, as Trustee. The balance sheet of
December 31, 1921, certified te by Messrs. Marwick, Mitchell & Company, Certified Public Accountants of New Yerk,
adjusted te gire effect te the proceeds of the sale of these Notes and $1,750,000 First Mortgage Twelve Year 8 Convertible
Sinking Fund Bends, dated January 1, 1922, shows net assets (after deducting the amount of First Mortgage Bends) ap
plicable te these Notes, of $7,153,439.09, or ever seven times the amount of the Notes te be presently issued. The Trust
Agreement will provide that the Cempanjt.sball net sell the remaining $350,000 of Debenture Notes except for cash' at a price
te net the Company par and accrued interest.
BARNTJTGS: Average annual earnings (after deducting the maximum sinking fund and interest charges en the First Mortgage
Bends, amounting te $285,83343 and after deducting Federal taxes but before deducting depreciation and depletion) avail
able for interest charges en this issue for the six years, 1910 te 1921, inclusive, equal approximately $1,015,927.20, or mere than
fourteen times the $72,000 maximum annual interest charge en the notes ei this issue te be presently Issued.
PURPOSE OF ISSUE: The proceeds of this issue and the proceeds of the sale of $1,750,000 of First Mortgage Bends, which
are being issued simultaneously with these Notes, are te be used te retire outstanding obligations, te reimburse the treasury
for the cost of improvements tethe refineries, for expenses Incurred in the development of the Company's oil leases, and te
provide additional working capital.
SINKING FUND: A monthly sinking fund of $12,000, beginning March 1, 1922, will be paid te the Trustee in cash, te be
applied te the purchase or redemption of notes. These payments are sufficient te retire the entire issue at par by maturity.
In addition, the Company will agree te pay into the sinking fund an amount equal te the amount paid in dividends in any one
year en its outstanding capital stock in excess of 8.
SAFEGUARDS: The Trust Agreement will provide that the Company will pay no dividends that will reduce the net current
assets as defined in the Agreement below the face amount of the First Mortgage Bends and these Notes outstanding, and will
further provide that the Company must maintain at all times net current assets as defined in the Agreement, of an amount at
least equal te 50 of the First Mortgage Bends and these Notes outstanding; and will contain a covenant that the Company
will net declare any stock dividend se long as any of the Debenture Notes are outstanding.
All legal matters in connection with the Issue of these Notes will be passed upon by H. Webster Smith. Esquire, of Balti
more, for the Bankers, and by Messrs. France, McLanahan& Reuzer, of Baltimore, for the Company. The books of the Com Cem
' pany have been audited by Messrs. Marwick, Mitchell & Company, Certified Public Accountants, New Yerk.
Delivery may be made in the form of temporary Notes exchangeable for Notes in definitive form, if, as and when issued
sad received by us, and subject te the approval of our counsel.
We offer these Notes when,, as and if issued and received by us, subject te approval of our counsel.
Price 100 and interest te yield 8
0
Commerce Trust, Company.
Light and Redwood Streets Baltimore, Md.
This information is obtained from sources we regard as reliable, and while net guaranteed, is the basis upon which we have
acted in the purchase of this issue.
Helders of British Government Bends
have recently had the advantage of both the
Rite in the Rate for the Pound Sterling and
. The Advancing Market in Londen for Bends
Victory 4'
Funding 4'
National War Bends 1929-47
National War Lean 5'a
Exchequer 5's
are new at or near the original issue prices, limiting
further profit possibilities.
There are ether issues in Pound Sterling which have
net yet responded te the general market movement
and in which similar advances may reasonably be
expected.
Write for Letter Ne. B L 27
A. B. Leach & Ce., Inc.
Investment Securities
IIS Seuth Fourth St., Philadelphia
New Yerk
Minneapolis
Chicago
Scranton
Bosten
Detroit
Cleveland
Pittsburgh
Important new tax
regulations
released today
The Government's new income and
profits tax Regulations 62 (the "Regula "Regula "Regula
tione 45" of the 1921 Act) were released
today by the Bureau of Internal Revenue.
Have YOU these important regula
tiens?
Regulations 62 are already in the
hands of every subscriber te the Federal
Tax Service of The Corporation Tru&t
Company.
Te get full benefit of the new Regula
tions, subscribe NOW te the Federal
Tax Service.
Write or telephone today for full
particulars. x
THE CORPORATION TRUST COMPANY
Land Title Bldg., Philadelphia
Bank of North America
Rights te Subscribe
If purchased at present prices will yield
OVER 6
We Solicit Inquiries
BARNES & LOFLAND
147 Seuth 4th Street Philadelphia
Trlfphene, Lembard 4171
AUTOMOBILE Stockwell
CERTIFIED PUBLIC
ACCOUNTANTS
Wilsen ACC0J!!!L
Linvill
UaiTiuBMi.,Fkil.
PARRISH & COMPANY
Member
New Yaftc Stock Exchange
Philadelphia Stock Echane
Established 1900
1500 WALNUT ST.
Philadelphia
115 BROADWAY
- New Yerk
ANNOUNCE THE OPENING OF A -DEPARTMENT
IN CHARGE OF
MR. HARRY M. C. HEWSON
FOR THE PURPOSE 6F DEALING IN
UNLISTED SECURITIES
PHILADELPHIA. PA.
MAHCH 1ST, 1922
Bell, Spruce 1020
Kvjretene, Race 75 1
,' INSURANCE
ff, I" MUTUAL 1NKURANCH CSV
fetjf , MSmMkM sAiL. Jjjj&da; . M
A
$8,000,000
K&nsas Gas and Electric Company
, First Mortgage Sinking Fund 6 Geld Bends
Dated March 1, 1922
SERIES "A"
Due March 1,1952
' Coupon bends of $1,000 and $500 with prevision for relation of principal, coupon senuna KK"f
bondVef $1,000 Interchangeable. Principal and Interest payab e in geld In New Yerkjnterest P,e Mch 1
and September 1. Redeemable as a whole or In part en any interest date en four weeks notice at 107! 2 ana
taterestte and including March 1, 19J7; at 106 and interest, te and Including March , 1932 at 104h and
interest te and Including March 1, 1937; at 103 and Interest, te and including March 1.1942s at 10 1 ana
teS tejMludtagWh 1, 1950, and thereafter at 100K and ntf te mrturity. m Cem w .TO
te pay Intist without deduction for any normal Federal Income Tax up te 2 and te refund, en application,
the preserf'g'cnnsylvanla Four Mill Tax te holders resident In Pennsylvania.
The mortgage la te provide for an annual ainking fund, beginning January 1, 1925, te purchase
SYriea-'ADends if offered at or under par and-accrued intere.t, of We of the amount ouUtand euUtand
Sg en the pwcedinj December 31, up te and including January 1, 1937, and thereafter of 2 of
auch amount.
' GUARANTY TRUST COMPANY OF NEW YORK, TRUSTEE
The following information is summarized from a letter te us by Mr. F. G. Sykes, Vice President
of the Cempany:
THE COMPANY
The Company controls and, without competition operates, the entire commercial electric hght and power
and gas business in the cities of Wichita, Pittsburg and Newton, Kansas, and the entire commercial electric
light and power business in Arkansas City, Independence, Elderado, Chcrryvale and fifteen ether cities in
Kansas. ITie population served is estimated at 200,000.
APPRAISED VALUE
The bends are te be secured by direct first mortgage lien en properties of the Company, which (together with
the Pittsburg property covered by pledge of securities) arc conservatively appraised by independent engineers
at ever $14,000,000. Over $6,000,000 has been invested in the properties during the last 5 years.
EARNINGS
Average net earnings for the three years ended January 31, 1922, were $1,005,981. Fer the twelve months
ended January 31, 1922, net earnings were $1,474,719, or ever three times the annual interest charges of
$480,000 en the present issue of $8,000,000 bends.
CONTROL
The Series "A" bends when issued will be followed by $1,500,000 general mortgage bends and $5,400,000 pre
ferred and common stocks. The entire common stock is owned by American Power & Light Company, which
is paying dividends at the raft of 6 per annum en its outstanding $3,719,200 preferred stock and $8,705,400
common fteck, and is affiliated with interests closely identified with General Electric Company.
We offer these bends when, as and if issued and subject te approval of the Public Utilities Commission
of the State of Kansas, and of our counsel. Interim receipts of Dillen, Readtc Ce., or temporary bends of
the Company, exchangeable for definitive bends when received will be deliverable about March 8, 1922,
Price 96Vfe and Interest. Te yield ever 6.25
Dillen, Read & Ce.
The information contained in this advertisement has been obtained from sources which we consider reliable.
While net guaranteed, it is accepted by us as accurate.
Founded 1876
Fer nearly forty-six years it has .been our pleasure te select, for clients, securities we believe te
be especially adapted te their needs, and if we can serve you new by opinion or suggestions, we trust
you will net feel hesitant in calling upon us.
Yeu have funds perhaps which are net required in the general course of your business or of
every-day needs that you would care te invest, especially at the prevailing high interest rates.
Very attractive opportunities are afforded in high-grade bends, which combine the factor of safety
and ready marketability required by business men and investors.
Investment, however, is a serious undertaking, and the selection of bend issues requires a geed
deal of care, study and investigation, mere, perhaps, than you have time te give. It is in this regard,
no doubt, you can make geed use of the facilities of our organization.
We are listing below issues which may be of interest as suggestions. Should any prove of interest
we shall be glad te send descriptive circulars and ether data immediately upon request.
CORPORATION BONDS
Rate
Southern Pacific R. R. Ce., San Francisce Terminal,
First Mortgage 4
Niagara Falls Power Ce., First & Censl 6
Southern California Edisen Ce., Gen. & Ref 6
Northwestern Electric Ce., First 6
Penn Public Service Ce., First & Ref 6
Greejt Western Power Ce., First & Ref 7
Indiana Hydro-Electric Ce., First Mtge 7
Southern Illinois Light & Power Ce., First & Ref. ... 7
Rebert Gair Ce., First Mortgage 7
The Shelton Looms, First Mortgage 7
B. B. & R. Knight, Inc., First Mortgage 7
New England Oil Refining Ce., First Mortgage. ... 8
CANADIAN BONDS
(All Payable in Geld, New Yerk)
.Gev't of Newfoundland 6'z Jan.
Gev't of Newfoundland 61 June
City of Halifax 5 July
City of Ottawa 6 . , July
City of Ottawa 412 July
City of Terente . . f 6 July
Province of Manitoba 6 Jan.
Province of Saskatchewan 6 Aug.
Province of Saskatchewan 6 May
E. H. ROLLINS & SONS
1421 Chestnut Street, Philadelphia
Locust 7300
Price and Te Yield
Maturity Interest About '"r
April 1950 80.75 5.35
Nev., 1950 Market 5.75
Feb., 1944 Market 5.92
May, 1935 97 6.25
Dec, 1929 97 6.50
Aug., 1950 Market 6.65
Dec, 1951 99.00 7.04
Dec, 1941 97.50 7.25
Jan., 1937 97.00 7.33
Dec, 1936 96.50 7.40
Sept., 1930 97.00 7.45
Mar., 1931 100.00 8.00
30, 28 102.66 6.00
30, 36 107,28 5.75
1, 51-2 te yield 5.50
1, 1940 104.56 5.60
1, 1943 87.54 5.50
1, 1951 105.73 5.60
2, 1931 101.27 5.80
1, 1927 100.00 6.00
1, 1939 94. CO 5.50
Bosten
New Yerk
Chicuge
Denver
San Francisce
Les Angeles
The information rind alathtiea contained in this circular have bern obtained from sources that ion deem reliable, and. altheuah
net guaranteed, are accepted y w m accurate. All bends effeicd subjcit te jnier sela and change in price without notice
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