THE 3IORXIXG OKEGONIAXr MONDAY, JANUARY 19, 19
17
CITY BOND SALE I
U.S. IS
750
Amount Entirely Financed
American Investors.
by
GAIN OVER 1918 IS SHOWN
trict against seasonal overflows of ternational conditions are taken into
Issue of Securities $250,000,000
In Excess of Year Marked by
Curtailment by War.
ruring the year 1919 there were is
sued municipal securities in this
country by states, counties, cities and
districts aggregating $750,000,000.
This amount was entirely financed by
American investors and aggregated
$250,000,000 more than absorbed in
any preceding year. During the war
period, the restriction placed upon is
suing securities under the operation
of the capital issues committee of the
government caused considerable cur
tailment. Ho improvement could be
made that was dependent upon the
issue of bonds or other form of in
debtedness without first convincing
the committee of the necessity of the
improvement or development projec
ted. The committee suspended opera
tions at the end of 1918, due to the
armistice having been signed.
However, there had been no more
than continuance of the normal
amount of issues of municipal bonds
during the years from 1913 to the
time when this country entered the
war. Generally municipal improve
ments had awaited the time when in
dustries were less directed to the ac
tivities that followed the outbreak
of hostilities in Europe in 1914. When
at the beginning of last year there
was no obstacle to going ahead with
delayed improvements there was im
mediate launching of public works
programmes throughout the country.
In Oregon the greatest activity was
shown in highway Improvement
movement which had been retarded
by lack of man power as well as in
advisability of offering bond issues.
Shortage of labor, scarcity of ma
terials and the difficulties of trans
portation have greatly retarded the
progress of large works of public and
private character, but for which it is
certain the total issues would have
been considerably larger. In the early
part of the year some communities
were disposed to defer in the antici
pation that general construction costs
might decline, but later this opinion
was generally replaced by the convic
tion that for some years at least there
can be no very great decrease in
costs, and during the last half of the
year the movement toward pushing
all classes of public work has become
increasingly active. Some of the bond
issues represent extensive improve
ment works that will be carried into
execution this year, but there are
many more to be financed in 1920,
and in the opinion of those closely in
touch with the market, conditions
the movement in isuing municipal
bonds has only made a good begin
ning that will attain higher volume
in the current year.
The Daily Bond Buyer, New York,
has made a compilation of the state
and municipal bond flotations for the
last ten years. With Some reports
missing for the last few months of
1919, here is the record as nearly
complete as it can be had at the
present time- for the ' last year and
nine preceding years:
1919 $748,205,78311914 44S.9CS.510
1918 2K2,818.844il9l3 4(18.477.702
1917 444,6:;2,848l12 3m.04ti,0K.'!
1918 4!7,40:i.7.-l;1911 452.113.71
1815 4U:2,5"J0.441 110 324,360,955
Anthon Eckern, vice president of
the State Bank of Portland is spend
ing his vacation in southern Cali
fornia, accompanied by Mrs. Eckern.
W. H. Pearson, supervisor of agen
cies of E. Naumburg & Company, New
Tork, dealers in commercial paper,
with offices in Pacific coast cities.
spent several days in Portland the
past week, calling on local bankers
and financiers with whom his firm
has long had business relations.
According to report of Theodore
Hardee, director of the sale of gov
ernment securities, sales of war sav
ings stamps and treasury savings cer
tificates at Christmas season' amount
to more than S3, 000,000 in the twelfth
Federal Reserve district. This is
based on the estimate made upon
bank sales as postoffice sales have
not yet been totaled.
Freeman Smith & Camp Co. have
been notified by the Board of Gov
ernors of the investment Bankers As
sociation of America of their election
to membership in that association,
which is composed of the leading dis
tributors of securities in the United
States. This company reports the
purchase of a very fine issue of Cas
per, wyorrung, 6 per cent street
provement bonds, which are being re
tailed at par, to net the investor 6 per
cent and several issues of Toppenish
Washington, 7 per cent improvement
bonds, which are selling at prices to
net the investor 6 per cent to 64 per
cent.
Their San Francisco office recently
purchased a small issue of Siskiyou
county, cjal., school district bonds,
also an Issue of City of Turlock, Ca
general obligation municipal bonds.
The demand for California bonds by
California investors is very great and
they anticipate prompt sale of these
issues.
As one of the members of the dis
tributing syndicate, the Lumbermens
Trust company is offering subject to
allotment and prior sale a liberal par
ticipation in the new Belgian loan. The
one-year notes are selling at 99 and
interest ana the iive-year notes at
. 95.75 and interest, both yielding more
than 7 per cent interest return. The
notes constitute an unconditional ob
ligation or the Belgian government
repayable in New York city in dol
lars. iNoienoiaers win nave the op
tion at any time when the rate of ex
change is favorable to receive par and
interest for their notes and one-half
of the profits arising from the sale
of exchange. The liberal interest yield
and the prospect of a profit under the
redemption privilege has made these
notes popular among investors.
Five blocks of municipal bonds are
offered for the first time this week
by the Lumbermens Trust company
at prices to net the investor 6 per cent
interest return, income tax exempt.
Included among these offerings are
two issues of Greybull. Wyo., sewer
improvement bonds and $19,500 Judith
Gap, Mont., improvement 6 per cent
bonds.
A block of $25,000 7 per cent bonds
constituting a general obligation of
Diking Improvement district No 5.
Cowlita county, Washington, are also
offered at prices to yield 6 per cent.
These bonds are payable on any in
terest payment date on or before Jan
uary 1, 1936. They are estimated to
mature in 1931, 1933 and 1934 and are
sold at price to net 6 per cent inter
est return on the basis of those ma
turities, yielding the full 7 per cent
after those dates. The purpose of the
bond issue is to provide funds to con
struct a system of dikes that will pro
tect the rich alluvial lands of the dis-
the Columbia and Lewis rivers.
Morris Brothers, incorporated, re
ported two days of record sales of
bonds during the past week, Monday
and Thursday, aggregating more than
$1,000,000 on each day. For the first
business day of the week, sales
amounted to $1,072,000, and Thursday
$1,120,000.
"Every dollar of the sales made on
Thursday was to investors in Ore
gon, Washington, California and Ida
ho," said John L. Etheridge, speaking
of the extraordinary volume of busi
ness. "That is to say that none of the
sales were to dealers who were buy
ins bonds for resale. It is a splendid
illustration of the growing volume of
business in the Pacific coast territory
and of the popularity of municipal
bonds with the investing public. Ev
ery indication points to a tremendous
increase in the amount of bonds that
will be absorbdd by Pacific coast in
vestors during this year as compared
with any previous like period."
Freeman Smith & Camp company
reported rapid sale of Sacramento and
San Joaquin drainage district war
rants, which are being sold here to
net investors full 7 per cent with no
income tax to pay. This company
has oversold its present apportion
ment delivered. However, inasmuch.1
as the company has a large interest
in the syndicate wrich purchases
these warrants, it is still taking or
ders and will make deliveries as soon
as the warrants arrive from Califor
nia. These warrants constitute an
obligation in the Sacramento valley,
California. They will be retired upon
the issuance of several bonds by Jan
uary, 1921.
W. Eaton Dyer, recently vice-president
of Morris Brothers, incorporated,
has joined the sales staff of the Lum
bermens Trust company. Mr. Dyer has
been on the Pacific coast for 20 years
and has had a wide acquaintance in
Portland since his first visit here in
1905. He has had broad and- suc
cessful experience selling bonds in
Oregon, Washington and California.
At the adjourned annual meeting of
the Broadway bank, held 'last week,
the stockholders re-elected the mem
bers of the board of directors and at
the subsequent meeting of the board
all of the officers were re-elected, as
follows: W. B. Haines, president; H. H.
Haynes, vice-president; Creed e C
Hammond, cashier; Charles B. Drake,
assistant cashier. These, with J. D.
Brown, Bertha Sumber Leach, Dr. Otis
F. Akin, H. A. Calef. George Loewen
son. H. C. Thompson, -J. C. Welch,
J. M. McNaughton and Max Skibbe,
compose the board of directors.
mm
Blyth. Witter & Co. of San Fran
cisco, investment bankers, have
opened a Portland ofice in the Yeon
building. Colin Livingstone, well
known locally in financial circles, has
charge of the Portland office.
E. P. Effinger, manager of the Port
land brokerage house of Herrin &
Rhodes, incorporated. Railway Ex
change building, is an old-time Port
land man with a wide acquaintance
throughout the state. His return to
residence here after having spent
some time in other localities has
brought renewal of many former
friendships.
carstens & Karles. incorporated, in
clude in their latest offerings to in
vestors a choice lot of Oregon se
curities and some attractive Canadian
issues. Portland 6 per cent improve
ment bonds are offered at a price to
yield investors 5 per cent; an issue of
$33,000 Morrow county road bonds are
offered at a price to yield 4.90 per
cent; Marshfield improvement bonds
are listed at' a price to net 5.10 per
cent, and an issue of Deschutes coun
ty road bonds are listed to net 4.95
per cent.
A very receptive market has been
absorbing the issue of $930,000 Teel
Irrigation district bonds, of the mu
nicipal irrigation project of Umatilla
county, offered by G. E. Miller & Co.
This is a 6 per cent serial gold cou
pon bond, sold at par and secured by
16,500 acres of fertile alfalfa land lo
cated in a solid body near Echo.
The famous jewelry house of Car-
tier, with houses in New Tork, Lon
don and Paris, with agents in India
and Russia, has recently incorporated
the New York house "in order to cre
ate an American institution," says the
notice from the Metropolitan Trust
company, registrar for the issue of
$4,000,000 preferred stock offered to
investors. The stock is redeemable
t 105 on or before October 1, 1924
and thereafter at 110 and dividends
accrued or declared and unpaid at the
rate of redemption, and bears 7 per
cent.
consideration, it is easy to become.
pessimistic over the outlook." In
these words E. G. Crawford, vice
president of the United States Na
tional bank, summed up the situation
as it appears now, as set forth in
the winter edition of "Business Di
gest," the seasonal publication of
the financial institution
But no cause for alarm is found in
analysis of conditions.
He continued: "Never before has
such wealth poured into the Pacific
northwest. This is reflected in the
bank deposits. The deposits of the
banks of Oregon were $226,000,0,00 in
1918, and $306,000,000 in 1919. For
the state of Washington $356,000,000
in 1918, and $445,000,000 in 1919.
In Idaho $8G,000,000 in 1918, and
$126,000,000 in 1919."
Three questions were propounded
by Mr. Crawford to leading financial
authorities of the United States as to
progress made in turning the country
from war to a peace basis, the Euro
pean situation and its effect in this
country, and the credit situation and
the immediate future? E. D. Hulbert.
president of the Merchants' Loan &
Trust company, Chicago; Ernest A.
Ham ill. president Corn Exchange Na
tional bank, Chicago: J. S. Alexander,
president National Bank of Com
merce, New York; Samuel H. Miller,
vice-president Chase National bank, !
and Peleg Howland. president of the
Imperial Bank of Canada, are among
the number who have contributed in
teresting views in response to the
inquiries.
CARTOON TRIAL FEATURE
Many Exhibits Offered In Tacoma
Radical Case.
TACOMA, Wash.. Jan. 18 Nearly 40
exhibits were introduced Saturday in
the trial of W. Randall, alleged I. W
W., to prove Randall guilty of con
spiracy against the government. Ida
May Gibson, who was herself arrested
while carrying Randall's suitcase,
which the police said contained the
local records of the I. W. W., testified
that she was merely carrying the bag
gage from Randall's room in a local
hotel she conducts to Parkland, Wash..
at the request of Gus Running. She
denied knowledge of its contents
Running is now in the county jail,
being arrested in the round-up of al
leged radicals.
Major-General Morrison, command
ing at Camp Lewis, was called to
identify a cartoon in an I. W. W. pub
lication. The cartoon. General Morri
son said, referred to General Leonard
Wood, and was drawn because of the
latter's command of troops during the
riots in Omaha.
As Judge Cushman will be in Seat
tie Monday, the case was continued
until next Tuesday.
$53,488.84
City of Portland, Oregon
6
Improvement Bonds
Opt. 1923 Due 1930
Estimated Maturity: July 1, 1325.
Price 104.76 to Yield 5
"The House Built Square"
CARSTENS & EARLES, Incorporated
Phone: Broadway 4108
307 U. S. Natl Bank BIdg.
LIBERTY and VICTORY BONDS
If yon raupt sell roar Liberty or Virtnry Bond, well to xtn.
If you ran bur more Liberty or Vk-tory bond, boy from as.
On January 17, li0, the closing New Tork market prices were ma Riven
below: They are the (coveming prices for liberty and victory bonds all over
the world, and the niRhrsl. We advertise theae price dally in order that you
may alwiyi know the New Tfork. market and the exact value ot your liberty
and victory bonds:
III ill 'in . ii-iui 3
4 4s 4A , 4'4 Sj 4M
92 r.n i90.no ssa.sn t'Ji.is ss:t.4n sni.is ibs.so $as.:.i
.88 .71 .40 .76 1.40 1.11 .85 -.45
19B.0O
.33
Market.
Interest
Total. .9.33 $92.88 91.1 J9H.20 91.94 J94.8B 192.27 S0S.85 9S 95
When buying we deduct 37c on a 50 bond and Ji.'.O on a SIOOO bond. We
ell at the New Tork market. plu the KC rued Interest.
Burglar and Fireproof Kaf Depoelt Boxee tor Kent.
Open Until S F. M. on (Saturdays.
MORRIS BROTHERS, Inc.
Xhe Premier Mnnlrlpal Bond Hodm. Capital One Bullion lollara.
Morrln Biiildtnc. 3US-S11 btark St.. Between Stu and 6b.
Telephone Broadway S131. KsUiblihhed Over a Quarter Century.
such legislation had "originated with
big financial interests centering in
New York City" and insisted that
present laws were adequate.
Representative tsianton, aemocrai.
Texas, in answer, asserted that oppo
sition of organized labor had blocked
the road of anti-sedition measures in
the committee, adding that recently
"suggestions of revolution" had been
voiced in union labor meetings.
"It is time for all this' revolutionary
talk to stop," he said.
A nation-wide propaganda for dras
tic laws aimed at freedom of speech
has been organized, Huddleston said.
DRIVER DEAD; CAR RUINED
Body of Jitney Man Found in Wa
ter at Junction City, Wash.
HOQTjIAM, Wash.. Jan. 18. (Spe
cial.) Mystery surrounding the dis
appearance Friday night of Mike De
santa. a jitney owner and driver, was
solved last night by the finding of the
body in shallow water at the West
mill at Junction City, four miles east
of Aberdeen. Desanta's body lay
alongside his wrecked seven-passenger
automobile.
Desanta was summoned to the West
mill last night by a party of long
shoremen, who wished to return to
Aberdeen. After replying that he
would take the call he never reported.
It is believed Desanta became con
fused in the fog and heavy rain and
ran his car off the dock. There were
no marke of violence.
Desanta was unmarried and had
been a resident of Aberdeen for ten
years. -
WOMAN DIES IN FALL
Husband Returning Shortly After
Finds Body Xear Stairs.
YAKIMA, Wash., Jan. 18. Mrs. Ella
Bounds, wife of Pleas A. Bounds, fell
down a stairs to the basement floor
of their home in this city last night.
She was dead when her husband.
who had gone out to buy a news
paper, returned after an absence of
15 minutes.
Blyth, Witter & Co., are offering
investors 2,500,000 7 per cent cumula
tive stock of the Zellerbach Paper
company, priced at par and accrued
dividends. It is redeemable in part
or as a whole at 105 and accrued divi
dend, this issue is a popular one
because of the splendid showing of
the corporation and was purchased
entire by the bond house. Reports
from San Francisco indicate early
oversubscription of the issue.
RICHES SEEN IX XORTHWEST
Bank Deposits Reflect Wealth, De
Clares E. G. Crawford.
"If local conditions and present
prosperity a measured by the re
turns from this year's crops, which
in turn are reflected by the enormous
increase in bank deposits throughout
the northwest, were taken alone, one
could not help but have the most
optimistic view of the future. But
if the broad view of national and in-
REPUBLICANS GREET HAYS
National Chairman Gives Address
at Los Angeles Banquet.
LOS ANGELES, Jan. 18. Repub
lican men and women from the eight
counties gathered here today to greet
Will H. Hays, chairman of the repub
lican national committee, and mem
bers of his party, who are holding a
regional conference throughout the
west.
About 400 of them were present at
a party banquet tonight when Mr.
Hays sounded the keynote oi tne
coming campaign.
Duluth to Get $3,000,000 Plant.
DULUTH. Minn., Jan. 18. Plans
have been perfected for the erection
this year at a cost of S3, 000,000 of a
plant to concentrate low-grade mag
netic iron ores on tne eastern Mesaba
range, by the Mesaba Iron company,
it was announced today. The com
pany, besides Duluth capital, D. C.
Jackling and John D. Ryan, copper
magnates and other financiers.
Phone your want ads to The Orego
nian. Main "070. A 6095.
SEATTLE IN IS ELECTED
J. A. TAl'IiOR IS PRESIDENT OF
METAL- TRADES COUNCIL.
to
District Orrices to Be Moved
Oakland Session Is Held
at Tacoma.
TACOMA. Wash.. Jan. 18. J. A.
Taylor of Seattle, a machinist, was
elected president of the district coun
cil of the metal trades union last
night in the final day's session of the
annual convention of the district
council which has been meeting here
all week. Other officers elected were:
P. J. Brady, Portland, first vice-president;
F. C Miller, San Francisco, sec
ond vice-president; J. W. Rickett of
Oakland, secretary-treasurer.
By the election of Rickett. the dis
trict offiie will be moved from Ta
coma to Oakland. Adam Barth of Ta
coma being the retiring secretary
treasurer.
Other business consisted of routine
changes in the constitution, the elec
tion of delegations for the various
sections and a resolution authorizing
the sendine of organizers to points
where needed, their salaries to be
paid from the 5-cent per capita levy
provided by resolution earlier in the
week.
INCOME TAX EXEMPT
HT3
$91,000.00
.1 etom Loti
5H Road
DENOMINATION: $1000
Due serially in the following: amounts:
TT Tl
MY iiO
and Bridge
Tl
SLiUCD
Bonds
Amount Rate Maturity Price
$ 1,000 Teton County, Ha, Koad and Bridge 5',i J&J 1929 103.90
10.000 Teton County. Ida., Road and Bridge 5i 'J&J 1930 104.19
10,000 Teton County, Ida, Road and Bridge 5Vi J&J 1931 104.47
10,000 Teton County. Ida, Road and Bridge 5l2 J&J 1932 104.74
10.000 Teton County, Ida, Road and Bridge 5i J&J 1933 104.99
10,000 Teton County, Ida, Road and Bridge 5'2 J&J 1934 105.23
10,000 Teton County, Ida, Road and Bridge. .. -u . . 5'i J&J 1935 105.46
10.000 Teton County. Ida, Road and Bridge 5'i J&J 1936 105.6S
10,000 Teton County. Ida, Road and Bridge 5!'2 J&J 1937 105.79
10,000 Teton County, Ida, Road and Bridge 5lj J&J 193S 105.90
Principal and aemi-anrrual interest (January 1 and July ) pay
able in GOLD COIN of the United States at the Chase National
Bank, New York, or at the quarters of Morris Brothers, Inc.
Teton County, Idaho, is located in the southeastern part -of the state and em
braces approximately 500 square miles. It has within it borders over 100,000
acres of Idaho's most prolific agricultural land under cultivation. Over half of
this acreage is irrigated, and the section is particularly noted as a banner
wheat growing area.
The county has experienced remarkable growth and development during' the
past few years. The assessed value of its taxable resources is $3,132,282.00, and
its total net debt is only $215,000. Official population is estimated at nearly 5000.
These bonds are a direct tax obligation of the entire county and were au
thorized for the purpose of building roads and bridges in connection with a high
way under construction by the state.
TkrM bond aire mm safe a money
posited in nny bank. In the I nlted Starfe.
1
G.E.MILLER
BONDS AN
St COMPANY
INVESTMENTS
BIG FINANCES" BLAMED
Senator Says Capital Is Urging
Anti-Sedition Legislation.
WASHINGTON. Jan. 18. Although
anti-sedition legislation is held up in
the house rules committee, the sub
ject came up on the floor today when
Representative Huddleston, democrat.
Alabama, charged that agitation for
SECURITIES
Must Be
PROTECTED
By an Ample
MARGIN of SAFETY
PRICES: TO NET 5
BIRGLAIl AND FIREPROOF' SAFE DEPOSIT BOXES FOR RK'T
MORRIS BROTHERS, Inc.
THE PREMIER MCMCIPAL BOD HOl'SK.
Morris Bnlldlnc 30ft - 1 1 Stark Street.
Trlepaoaes Broadway 3131
CAPITAL. ONE MILLION DOLLARS.
BHum Fifth and Sixth.
Established Over a Qaartrr Cntlrr.
and his arm cut by flying metal when
the gasoline can exploded.
Claquato Home Burns.
CKXTRAU1A, Wash., Jan. IS.
(Special.) Kire caused by his trying
o fill a lighted gasoline lamp Thurs
day night totally destroyed the home
oi John Hopper at Claquato, together
with the contents.- The loss is parti
ally covered by insurance. Mr. Hop
per's right hared was badly hiirnod
Walla Walla Sites Aketl.
WALLA WALLA, Wash.. Jan. 18.
(Special.) The military committee of
the commercial club is calling on
property owners who have sites suit
able for the new armory to list them
SUGAR GROWERS ROUSED
Split Willi Manufacturers in Cuba
Association Looms.
HAVANA. Jan. IS. Failure to reach
an agreement on prices threa-tens to
disrupt the association of cane grow
ers and manufacturers of Cuba and
Immediately so they may be consid- may result in the growers' refusal
ered by the armory commission.
Twenty-five sites already have been
listed. The state has appropriated
$100,000 for the building and the city
has agreed to buy the site, providing
the cost is not more than $10,000.
to deliver cane at the mills, thereby
forcing many of them to close down.
Up to the time the equalization
board came into being" during the
war the manufacturers paid cash to
thft grower, the amount paid being
based on the average of the market
quotations for a certain period.
The association had asked Presi
dent Menocal to lay down by decree
rtew rules under which the "average"
to be paid the growers shall be ar
rived at so that rehandling of th
crop may be avoided.
.Mail Theft $2000.
VANCOUVER. B. C. Jan. 18. Bank
notes to the amount of $2000 instead
of 118.000. as first reported, were
stolen from a mail bag on the steamer
chelosln on the voyage from the.
north, which arrived hero ITiday, it
was learned last night.
John Y. Richardson & Co.
Certified Public Accountants
INCOME TAX CONSULTANTS
Concord Building,
Portland, Or.
Telephone Main 8231
MEMBER
AMERICAN INSTITUTE
ACCOUNTANTS
OF
Our list of diversified
offerings merits your
consideration.
Detailed information will
be sent upon request.
G.E.MILLE.R
&. COMPANY
BSSS88!"!" RDND
CORPORATION UvlliJ
TELEPHONE MAIN 4I95
2C4- 56 Northwestern J5anK Building
PORTLAND.OREGON
INVESTMENTS OF MERIT
CIVIC LOANS INCOME TAX EXEMPT
Security Maturity Yield
State of Oregon 4yz Highway Bonds '. 1925 to 1944 4.55
Joint Stock Land Bank 5 Bonds . 1939. Opt 1934 (4.50 to opt. date
. (5 thereafter
Deschutes County, Oregon, 5V2 Road Bonds 1923 to 1926 4.95
Malheur County, Oregon. 5V2 Road Bonds 1933 to 1937 4.95
City of Salem. Or.. Refunding 5 Bonds .: 1921 to 1930 4.85
Coos Co., Or., School Dist. No. 9 (Marshfield) 514
Bonds 1920 to 1939 4.90
Clearwater Co., Idaho, North Fork Highway Dist. 5
Bonds 1933 to 1936 5.20
Ochoco Irrigation Dist., Crook Co., Or.. 6 Bonds 1936 to 1938 6
PREFERRED STOCKS
Paige -fcitroit Motor Car Co. 7 Cumulative Pre. Stock. 1934 7.22
FOREIGN MUNICIPAL
Fretjfe Municipal External Loans (Lyons, Marseilles or
Bordeaux) 6 Gold Bonds .-.1934 6.80
We will be glad to furnish detail information on request.
I?ALPH SCHNEE&OCH COMPANY
MUmCtPJOJUTD CORPORATION FINANCE
LUMBtWMtNS lultDINO
Fonrijarr.OREG ok
NEW ISSUE
$2,500,000
Zellerbach Paper
ADVANCE OFFERING
Company
FwaHdrit ia 1S7T.
Incorporated Under the Laas of California ivith Plants at Portland, Seattle, Tacoma. Spokane
1 Cumulative Preferred Stock
Full's Paid and N on-Assessable
Dividends payable on the first day of February. May. August and November. Redeemable in part or as a whole at 1 05 and accrue!
dividend. Annual Sinking Fund commencing February I, 1921. amounting to not less than $166,500
will be used to retire stock. Par Value of Shares $100.
Transfer "Office: 534 Battery Street. San Francisco. Registrar: Union Trust Cornpany of San Francisco.
Subject to authorization of E. C. Bellows, Esq., Commissioner of Corporations. California.
Dividends exempt from Federal Normal Income Tax
Class
Oatfftandlno-
$2,500,000
4,000,000
CAPITALIZATION
After giving effect to present financing.
Authorized
Prn-Pd Stock $2,500,000
Common Stock 7,500,000
Annual Net Earnings, after payment of Federal taxes, have averaged for past 5 VSi years $835,321 compared with present preferred stock
annual dividend requirement of $175,000, or the equivalent of $33 per share.
Purpose of this issue is to provide additional working capital needed to carry on the rapidly growing business of Zellerbach Paper Con
pany and its principal subsidiary the National Paper Products Company. v
Net quick assets, as certified by Messrs. Klink. Bean & Co.. San Francisco, on October 31. 1919. after giving effect to present financing.
were $5,752,255. equivalent to $230 per share of Preferred Stock.
Total net assets as of same date were $9,120,875, equivalent to $364 per share of Preferred Stock. Contemporaneous with the issue and
sale of $2,500,000 Preferred Stock, the Company will issue and sell to employes and officers treasury common stock to provide funds
for retiring $800,000 old Preferred Stock. '
Articles of Incorporation will provide proper safeguards for Preferred Stock, including among other things:
Issue limited to $2,500,000.
No stock can be authorized during the life of this Preferred Stock which is prior to or on a parity with it. without the written consent of
two-thirds of the outstanding Preferred Stock.
No mortgage or other lien on any real or personal property of the Company or of its subsidiaries, can be created without the wntten con
sent of two-thirds of the outstanding Preferred Stock.
Issue is preferred both as to assets and earnings and is non-assessable by the Company.
No dividends may be paid or set apart on the Common Stock if a quarterly preferred dividend or one Annual Sinking Fund payment is
in arrears.
Company covenants to maintain at all times net quick assets equivalent to $150 per share of Preferred Stock outstanding.
Price 100 and accrued dividend
Write or Call for Further Information
Preliminary interest bearing certificates issued under authority of the Commissioner of Corporations of Cali
fornia are now read? r delivery pending issuance of definitive stock certificate.
BLYTH, WITTER & CO.
United States Government, Municipal and Corporation Bonds
402 YEON BLDG., PORTLAND, TEL., MAIN 3304
SA FRANCISCO
Merehaata Eickmn
-EW YORK
1 Broadway
SEATTLE
Alaxka Baildlng
LOS ANGELES
Traat A Savin Rnlldlna'.