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tiVtiNlttG ' PUBLIC tEDyEK-rmLADELPHI. MONDAY", ftflCtiMBER ' 11, 1922 ,
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Londen and Amerhan Iue
Subscr.plien having been received in excess of the stock offered, this ad appears us n matter of record only
$14,000,000
Jenes & Laughlin Steel Corporation
Cumulative 7 Preferred Stock
Te be authorized and issued $60,000,000 (including this $14,000,000). Par value 5100 per share. Dividends
cumulative and payable April, July, October and-January 1. Redeemable, as a whole only, after January 1, 192 i,
upon net les3 than 30 days' notice at 120 and accrued dividends.
Dividends Exempt from Prssmt Nermal Federal Income Tax
Exempt from Pennsylvania Four Mill Tax
t "1
Stt
j-ilQlr l'hlln, H'ni-lt V,r
Guaranteed by
The Dunlop Rubber Company, Limited
(Parent Company, England)
$15,866,700
Dunlop Tire and Rubber Corporation of America
(American Subsidiary)
First (Closed) Mortgage and Collateral Trust Sinking Fund
7 Convertible Geld Bends
Series A (American Series) $11,000 000 i , . , .. t f , ,. ,.-
Series B (British Series) 1,000,000 E1uiva!ent at Par of exchange te $15,866,700
Dated December 1,1922 - Due December 1, 1942
Convertible at any time after December 1, 1924 into S, Cumulative Preferred Stock and Common
bteck of Dunlop Tire and Rubber Corporation of America, at rate of 51,000 par value of Preferred
bteck (callableat 110 after December 1, 1937) and 2 shares no par value Common Stock for each $1,000
of bends. If Bends called, may nevertheless be converted up te 10 days before redemption date.
Entire issue payable at 105 and interest, cither through Sinking Fund or at maturity
THE MECHANICS & METALS NATIONAL DANK OF THE CITY OF NEW YOKK, TRUSTEE
Frem a letter of Rl. Hen. Sir Eric Ceddes, Chairman-Elect of the British Company and also Chairman of the AmerU
can Company, he furth r lummarizss at fjllews:
SECURITY: Direct premise of American Company. Guaranteed, principal, interest
and sinking fund by parent British Company. Alse secured by .$14,600,100
(3,000,000) of Briti3i Company's First Mortgage 8 Debenture Stock (English
equivalent of customary American First Mortgage Bends) and also by First
Mertpage en fixed assets of American Company, valued at mere than
$16,000,000 including (at $4,000,000 less than cost or book value) the Company's
large modern tire-manufacturing plant at Buffalo and fabric plant at Utica.
ASSETS: Net assets of British Company and subsidiaries (including American
Company) after deducting all liabilities except funded debt, amount te
$78,514,663, mere than 2,Vj times total funded debt of both British Company
and its American subsidiary. '
3RITISH COMPANY'S BONDS (First Mortgage 8 Debenture SteclO, $14,600,100
CC3,000,OGO) issued in Londen in February 1921 at 98, officially listed en Londen
Stock Exchange, are widely distributed and are new quoted at about 109.
These $14,600,100 current outstanding British bends, together with the
$14,600,100 bends pledged as collateral for this issue of American Company
bends, ara all the bends issued or that can be issued under the first mortgage
of British Company securing them.
BUSINESS: British Company, business established mere than 30 years age, owns
one of largest tire-manufacturing plants in Europe, supplying mere than 50
of automobile tires in Great Britain, besides exporting te British Dominions
and foreign countries. British Company also has its own plantations in
Malay Peninsula and Ceylon where raw rubber is successfully and economi
cally produced. It controls, by stock ownership, its own cotton mill with
capacity for its entire requirements, one of largest and by far the most modern
and best equipped mill in Europe for production of tire-fabric.
EARNINGS: Average annual net earnings of British Company and subsidiaries
for six years ended August 31,-1920 were $5,750,020, or approximately 2) 4 times
the $2,303,827 annual interest requirement en present $30,969,817 total funded
debt, including this issue. Net earnings for year ended August 31, 1920 were
$11,837,454, or mere than 5 times this interest requirement.
Fer year ended August 31, 1921 net earnings before interest, depreciation and
inventory and ether adjustments, were $1,788,726. It must, however, be plainly
stated that in the years 1919 and 1920 the then management of the British
Company enormously overbought raw materials and en August 31, 1921 the
Beard of Directors, including the new interests which by this time had entered
the Beard, decided that most drastic write-offs and readjustments of inven
tories must be made, resulting in a net charge-off of $33,580,852 for that year.
The Beard in the same year also set aside a Reserve Fund of $13,469,297 te
meet losses en forward contracts. This Reserve new stands at $3,594,013 and in
view of thej-ecent rise in the price of rubber a substantial portion will probably
net new be required.
Fer year ended August 31, 1922 net earnings, after depreciation charges and
all ether adjustments, were $5,S04,8S8, or mere than 2 times the interest
requirement en total funded debt including this issue. Except for the single
year ended August 31, 1921 the Company has shown a substantial profit in
every year of the entire 33 years of its history.
SINKING FUND: Sinking Fund, payable semi-annually, first payment October
15, 1924, must call and retire these Bends at 105, and is sufficient te retire all -
of this $15,866,700 issue at 105 at or before maturity.
MANAGEMENT of American Company is in hands of men of experience and
demonstrated ability in United States, in addition te which it has benefit of
close association with British Company, one of eldest and foremost rubber
manufacturing companies in the world.
We Recommend these Fed fe Investment
and Offer the Series "A" Bends
PRICE 95 AND ACCRUED INTEREST. YIELDING OVER 7.60
en payment at or before maturity at 105 and interest
Transfer Agents:
Bankers Trust Company, New Yerk
The Union Trust Company of Pittsburgh
Registrars:
Guaranty Trust Company of New Yerk
Fidelity Title and Trust Company, Pittsburgh
ed and rccied by u; Callable, as uliclccrm tiarl at anv tw.een ;e dayt notice, al ie and interest,
sinking JunJ paa'le in ( 'nited States (nld com cl prsfnt- s.and.v'd at offices of Lee, Higginsan
Chicago 'merest wabk u ith.cul deduction for normal r'ederal Incemi Tax up te 2. Present
Ber.ds offered, uhen cs and if issued and re,
denes A- Principal, interest ana
J Ce. in .'cw Yerk Bosten and
Pennsylvania 4 Mill Tat and present Maryland 4'. Mill Securities Tax rounded upon application within 3 months alter bayme
In this advertisement, figure-, regarding funded deel. earnings and aaets of the Dunlop Rubber ( empany. Limited, and its subsidiary
companies, unlesi otherwise staled, haic been cemertid from sterling into dollars at the rate of $4 Sb per pound sterling.
nl,
B
LEE, HIGGINSON & CO.
BROWN BROTHERS & CO.
The statements contained in tills advertisement while net Riiurnnteec!, are
bn:c.l upon information and advice which we believe accurate and reliable.
4
Frem Jan. 1, 1923
SAVING FUND SOCIETY
of
GERMANTOWN
5458 Germantown Avenue
Philadelphia, Pa.
Chartered 18S4 Deposits Over IS Millien Over 33,000 Depositors
A letter from Mr. B. F. Jenes, Jr., Presldsnt of Jenes & L'au?hlin Steel Company,
copies of which will be furnishel upon request, is summarize! as follews:
Jenes & Laughlin Steel Corporation is te be formed have no voting power except upon the question of
under the laws of Pennsylvania, and is te acquire voluntary dissolution or in case any dividend is in
all the assets of Jenes & Laughlin Steel Company arrears for one year, and except with the consent of
including physical properties and all Btecks (except the holders of 75 of the Preferred Stock, (a) no
directors' shares) of its subsidiaries. The $C0,000,000 mortgage may be placed upon the properties of the
of Preferred, together with $60,000,000 of Common Company or its present subsidiaries (except purchase
Stock, is te be issued and exchanged in payment for money mortgages en hereafter acquired property
these assets. and the remaining authorized $6,000,000 Jenes &
A , . - !. Laughlin Steel Company First Mortgage 5 Bends.-;
The management of the Company will net be af- (b) he authorized amount of the Preferred Stock
fected in any way by this transaction, but will re- may net be increased; and (c) no additional stock
main hi the hands of these who have been associated may be issued with rightg t0 dividends or assets
with the development of the business for many years. or prier t0 ihi3 stock
The $14,000,000 Preferred Stock which you have FINANCIAL
purchased, being the holdings of stockholders net jtt'bMta-uMoe
actively connected with the Company, is the only Depreciation, Dep'tii,aiuert!
stock that will new be offered te the public. The l?J & Kfe "MST
remaining Preferred and the entire issue of Common 47n7iqfi i aoe rre k -un fifie
of Jenes Laughlin Steel Company. m5 44,431,035 2,054,895 7,267,022
BUSINESS AND PROPERTY 1916 77,353,009 3,126,026 20,257,877
Ti,.rnmn,nn .Jtrnmn,nB!5mnwTn.,ji. 1917 129,810,539 6,117,696 26,622,033
KR?e jgj Jgkjfcg W" .Mftgl
Jenes ft Laughlin Steel Company and subsidiaries- J" iS'Sffi J'SSmJ MM?e5
is the result of a continuous development ever a 'Se'SS S'ffiS rtfl?7
period of 70 years. The business consists of the gg; g'gg'gg 3,682,774 Jf. 3.AJJM
manufacture and sale of a widely diversified line of 1922 .... 71,500,000 3,900,000 4,900,000
steel products. The Company is the third largest Total $319,310,929 $55,619,595 $110,506,048
producer of steel in the United States, having an in- Average.. $81,931,092 $5,564,959 $11,050,604
get capacity of 3,000,000 tens per annum. - v
The Company is exceptionally well integrated. It Net earnings for 10 years have averaged 2.6
owns coal, iron ere and limestone properties sufficient te t dividend requirement en the $60,000,000
te meet its raw material requirements for many Preferred. During this period, dividends have
years. The manuf actunng Properties consist of coke amounted te $38,700,000 as compared te $71,800,000
evens, blast furnaces, open hearth and Bessemer retflincd -m t88t
steel plants, blooming mills, finishing mills, etc.,
advantageously located in or near Pittsburgh. The consolidated balance sheet as of October 31,
n,m , 1922, shows net tangible assets of $137,200,000, or
PROVISIONS OF ISSUL $228 per share of Preferred Stock. Total funded debt
This Stock is te be preferred as te assets and divi- was only $21,700,000. Current assets of $66,000,000,
dends, and is te be entitled te payment at par and including $31,400,000 cash and U. S. Government
accrued dividends in event of dissolution. It is te obligations Jwere mere than 10 times current liabilities.
Application will be made te list this Preferred Stock en the New Yerk and Pittsburgh Stock Exchanges
We are offering this Preferred Slee, ichen, as and If itsued end received by u:, and s-jlfeei te
approval of counsel, for subterlpUen subject te allotment.
Price, $107.50 per share, te yield about 6Vz
Ail legal deUtls will be r"ed upon for the Bankers by iletsre. Reed, ScUti. Shaw t McCUy, of Pittsburgh, and for the Company by Metsrs. WUtea It
Erana. It is expected that temporary CcrtUcatjc or interim receipts v.U be read, for dehrerv en or about January 2, 192.3.
The Union Trust Company of Pittsburgh
Guaranty Company Bankers Trust Company,
of New Yerk New Yerk
We da act guarantee tif statements and fijares contained herein, but iher are uVrn from learcti hich we bcUtie te be r:lixb!
UeperlevAppruiHu!
Wans & Cei ihI rue I ion
KELLYXOOKE&.CO
ENGINEERS
-iS'f'Cheeliiul'41
C S. PATTON & CO.
31) ti (IH'.STM'I MS.
BANKERS
. KMcrrNniirM f.t
. n.Mi.r.U HiT.VKNPON
beucfit Mil told.
irnnnBe.
NEW YORK Stock Ex
change house requires
the services of an experi
enced Customer's Man
wilb clientele for their At
lantic City office. Refer
ences icquVcd. Replies
confidential.
B 529; Ledger Office
THE TAX STATUS
OF MUNICIPAL BONDS
The President again recommends te Congress an
Amendment te the Constitution restricting any
future issues of ta;: exempt securities.
Ways and Means Committee of the Heuse has
already submitted the "Green Amendment,"
intended te accomplish this object.
A history of this movement, briefly told, is inter
esting, and it is essential te learn the facts upon
which you can properly base an opinion and reason
ably guide a future investment policy.
IF
') Yeu arc a hnancial institution
Yeu own municipal bends
Yeu are subject te heavy income taxes
Let us send you a short summary of information avail
able te date, and advise you of later developments,
Frazier 6- Ce
INCORPORATED
1433 WALNUT STREET, PHILADELPHIA
PHONE SPRUCE 3S91
z
-f"
A BANK
FOR
BUSINESS
PEOPLE
In the Busiest and Most Centrally
Located Spot in Philadelphia
I or these in-tevn or out-of-town this bank
can lie of service te individuals, firm.- and cor
porations as a depositary and n place te get
.sound business advice. A spirit of co-epera-tton
always prevails.
Heinic accessible te all transit and railroad lines
ineatu quick action en any banlJn subject
and the exactness of the Mi'vice tvndi red here
means satisfaction.
Conferences an iucitid.
Third.
Opposite Bread Street btatieii
In the Center of Th'mijs
Organized 18G3
New Issue
Exempt from all Federal Income Taxes and Surtaxes
Legal Investment for Savings Banks and Trust Funds in
New Yerk, Connecticut and New Jersey
$2,302,000
City ei Masrtic City, N. J.
Coupon Geld V ?. and 6 Bends
Payable at Hanover National Sank, New Yerk, N. Y.
Atlantic City has an Assessed Valuation of 5142,304.548,
being the third largest city in valuation in the State of New
Jersey. Its Net Debt, including these bends, is 56,305,082, and
its population, 1920 Census, was 50,652. Bends may be regis
tered, if desired, and are of 51,000 denomination.
Legal opinion of Mesas Clay & Dillen
UNSOLD AMOUNTS AND MATURITIES
$537,000 6s due Au. 25, 1923 Price 101
$1,106,000 41 eS due July 1st in each
Amount
$30,000
5,000
35,000
40,000
40,000
40,000
40,000
25,000
40,000
40,000
40,000
Due
1923
X924
1925
1926
1927
1928
1929
1920
1931
1932
1933
Amount
$40,000
38 OOO
40 OOO
40.000
40 COO
40,000
27 OOO
33,000
3t',000
30 000
Due
1934
1935
1S36
1937
193E
IS39
1940
1941
1942
1943
Amount
$25,000
40,000
40.000
40,000
40.000
40,000
40,000
40,000
30,000
10.000
15,000
year
Due
1944
1945
1946
1947
194B
1949
1950
1951
1952
1954
1957
All Maturities at Prices te Yield 4.40
GEO. B. GIBBONS & COMPANY
I MCORPOWTCD
MUNICIPAL BONDS
40 WALL sr. NEW YDK
StOCKWeli ' CERTIFIED PUBLIC
WilS0n & ACCOWTANTS
Linvill UndTilleEIJf.,PMla.
M
ACKIE
CR0USE
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