THE 3IORXIXG OEEGOXIAX, MONDAY, ArRIL 2G, 1920
IT,
BOND ISSUES REVEAL
MIL LINES' PLIGHT
7 Per Cent Interest Shows
Need of Money.
GOVERNMENT IS AFFECTED
Secretary of Treasury Forced to
Offer New Block of Certifi
cates at 5 Per Cnt.
There Is a lesson In the financial
news of the last fortnight for those
who have regarded the plight of the
railroads with complacency and
blandly contended that "the railroads
have plenty of money." in the Mace
of the repeated statements of gov
ernment and railroad authorities that
it presents one of the serious condi
tions before the country. The drop
in prices of government bonds is di
rectly traceable to the first step of
the big transportation companies to
finance their needs, say financiers
in close touch with the big money
centers of the country. The drop in
bond prices was felt throughout the
list of securities largely traded upon
by the investing public and the col-,
lapse in government bonds was the
natural consequence of offerings of
high-class securities at interest rates
that seem remarkably high, but were
fixed after careful investigation as
necessary to secure funds.
The Pennsylvania offered to the
public through a group of bankers
J50.000.000 ten-year 7 per cent gold
bonds, to mature April 1, 1930. The
New York Central Railroad company
at the same time offered an Issue of
equipment certificates of 36,225,000,
yielding 1 per cent interest and ma
turing serially from April 15, 1921,
to April 15, 1935. With this type of
investment offered to yield a rate of
7 per cent it was but natural that
the market value of bonds yielding
from 3 to 4 per cent, would be
forced down.
Interest Rate Advanced.
Recently there has been large of
ferings of bonds of the war issues,
partly due, no doubt, to the neces
sity of realizing by small holders
throughout the United States. This
has been augmented recently by sales
of large blocks by corporations who
had no other means of quickly real
izing needed capital that had been
tied up in the bonds during the pe
riod of prevailing lower interest
rates. With the effect of the action
by the federal reserve bank to bring
about deflation, higher discount rates,
increased bank rates for loans, the
Inevitable result was to fix higher
earnings for money for a consider
able time to come, and this was
recognized by the bankers who ad
vise with the executives of the trans
portation companies that are now
among the class that must borrow
most heavily to bring their proper
ties up to requirements of the traffic
needs of the country.
The United States government has
likewise officially met the situation
when the secretary of the treasury
offered a new block of treasury cer
tificates of indebtedness at &Vi per
cent This action fixes a new basis
of income on government securities.
The decline in the price of govern
ment bonds was in conformity to this
new basis of- income for the issues
of the federal government.
It will be remembered that in his
address before the Portland ChamDer
of Commerce recently, Frank A Van
derlip declared that the secretary of
the treasury was responsible for the
inflation that had depreciated the
buying power of the dollar when he
made the error of maintaining too
low an interest rate on bonds issued
when the war was being financed
and too low a discount rate for the
reserve banks. He stated that the
secretary admitted at the time that
he was actuated by a desire to obtain
cheap money for the government, but
that in doing so it made cheap money
for everyone else, including specula
tors. Keanoning Seems Confirmed.
The developments in the bond
market that have Just taken place
seem a confirmation of the soundness
of the reasoning of the financier.
High interest rates for money to
be attracted into investment enter
prises is no doubt due to a lack of
capital for this sort of use. The
general public has not been in the
habit of buying railroad bonds and
to a large degree this Irind of fi
nancing has been left to bankers and
investors of large amounts'. But the
burdens laid upon persons of large
income by the surtax and excess
profits taxes have absorbed a large
share of what in the past was invest
ment funds, while no other class of
buyers for the securities has taken
their place. With a return of 7 per
cent, the bonds of high-class rail
roads should find sale with small
buyers, who want the best possible
return on their savings, with ade
quate security, such as offered in
these bonds and notes.
The Lumbermens Trust company
has included among its new offerings
this week the following: Province of
Ontario 6 per cent gold bonds, due
April 15, 1925, offered at 95 and in
terest to yield 7.20 per cent. Ueneral
American Tank Car corporation 7 per
cent gold trust certificates, maturing
every six months from November 1,
1920, to May 1, 1923. The certificates
are offered at prices to yield 7.50
per cent. Sinclair Consolidated Oil
corporation five-year secured 7 per
cent convertmie gold notes, offered at
98 and Interest, to yield about 8 per
$100,000
Province of Ontario
5-Year, 6 Bonds; Due 1925
These bonds are a direct obligation of the Province of Ontario,
which is the largest and most important Province in Canada.
Area 407,262 square miles. Population 2,800,000.
Assessed Valuation $2,000,000,000
Gross Bonded Debt 96,800,000
Principal and interest payable in the United States in gold coin.
Price: 95.00 to Yield 7.20
Blyth, Witter &Co.
United States Government, Municipal and Corporation Bonds.
YEON BUILDING PORTLAND, OREGON
Telephone: Main 3304
San Francisco Seattle New York Los Angeles
cent. Two issues of Whatcom county.
Washington, 5 V4 per cent road bonds,
one amounting to 1159,000 and the
other $100,000. These bonds mature
serially from 1921 tc 1930 and are
offered at prices to yield 5.30 per
cent.
At a meeting of the Portland Asso
ciation of Credit Men and the adjust
ment bureau Friday noon, H. J. Parr
ot Swift A Co. was elected president;
A. C. Longshore of the Northwestern
National bank, vice-president; E. W.
Johnson of the Miller, Calhoun &
Johnson company, secretary - treas
urer, and W. J. Terry of Carr & Pres
ton, auditor. H. J. Parr has been a
member of the board of directors for
three years, being re-elected at the
annual meeting. For' some time he
has been very active in association
affairs and always has been a
worker for new members in the asso
ciation. A. C. Longshore, cashier of
the Northwestern National bank, has
served as a member of the board of
directors for the last two years,
serving at present in his first terms
as a member of the board. Last year
he represented and -this year again
............. . . . . . ..T
t ' w ' I "J
i ' - J ' ' " i - t
A ,r; ''i
I '?'' - A
Carle K. Fltiwatfr, cashier of
new Ww County bank at
The IJallcs. to open noon.
he will represent the Portland Asso
ciation of Credit Men at the national
convention, which is to be held at
Atlantic City in June. K. W. Johnson
has served as chairman of the pro
gramme committee. In 1918 he was a
delegate to the convention of the
national association held at Chicago.
The members of the .board whose
terms expired were E. CI. Lelhy of
Blumauer-Frank Drug company, Ed
ward Drake of J. K. Ciill company and
H. J. Parr of Swift & Co.
m m m
Victory bonds of the Dominion of
Canada have fluctuated very little in
Canada since they were issued, be
cause of an agreement made between
the investment dealers of Canada and
the dominion government, according
to Frank W. Camp of Freeman, Smith
& Camp company, who has just re
turned from spending several days in
Canada. "The understanding - in
Canada between the dealers and the
dominion government," said Mr.
Camp, "is in substance an under
writing agreement by which they are
allowed 1 per cent on victory bond
sales. The market prices are fixed
by the dealers themselves, so they do
not go below a certain minimum. The
arrangement appears to be working
very satisfactorily. I was quite sur
prised to find that none of the banks
handle bonds or deal in foreign ex
change." Carstens & Earles. Inc., are offering
to- investors-1900 city -of-Sumpter
city hall bonds maturing 1930-40 on a
5.75 basis; $32,000 King county water
district 6 per cent, maturing 1925-35,
at par: province of Ontario 6 per cent,
maturing 1925. on a 7.20 per cent
Basis; city of Victoria 4H per cent,
maturing 1923, to yield 7.25 per cent;
Southwestern Bell Telephone 7 per
cent, sold to net investors 7.60 per
cent, and a small unsold portion of
Elder Steel Steamship notes maturing
1921-30. yielding from 7.60 to 8 per
cent.
Word has just been received here
that Frank W. Camp' of the bond
house of Freeman. Smith & Camp
company has just been appointed a
Quoting from
a Client's x
Letter
" am gratified, indeed,
thai you have put my
property on a paying
basis, and I am sure the
satisfaction Tvill be con
tinued." If you would like to
know how we can do
the same for you, send
for our explanatory
booklet.
Strong 6 MacNauhton
member of the committee on irriga-
tion securities for the Investment
Bankers Association of America. This
committee will investigate and pass
upon all questions relating to bonds
issued by Irrigation districts and
placed before the Investors in the
United States.
...
Girvin & Miller of San Francisco
are today offering to Investors the
first mortgage serial 6 per cent gold
bonds of Montgomery-Ward Ware
house corporation, principal and In
terest unconditionally guaranteed by
Montgomery, Ward Sc. Co., incorpo
rated. This bond issue is secured by
an absolute first closed mortgage on
the property and concrete warehouse
now under construction on a part of
the old Lewis and Clark fair grounds,
which will cost approximately Jl.
400.000, which makes it of special in
terest locally. The bonds mature $90.
000 each year for ten years, beginning
with March 1. 1922, and the interest
is payable semi-annually on March 1
and September 1. at the office of the
Portland Trust company, trustee. The
bonds are callable, all or in part, at
any interest date, at 101 and Interest,
and are dated March 1. 1920. Normal
income tax up to 2 per cent Is paid by
the company. The bonds are offered
at a price to yield a return of 6 per
cent.
' .
Earle E. Fitzwater for the last 12
years connected with the Ladd & Til
ton bank, where he started as mes
senger and advanced to the position
of manager of the credit department,
has resigned to become cashier of the
newly organized Wasco Countv bank
at The Dalles. In his new location he
will be associated with Thomas H.
West, who resigned as assistant cash
ier of the Ladd Tilton bank to or
ganize the new bank at The Dalles, of
which he will be the manager. Mr.
Fitzwater is a native of California,
born at Montague, which is only a
little way beyond the Oresron boun
dary; He came to Portland when a
boy, was educated in the public
schools and is the type of man who is
cuiiiuiuinK nis educational courses tn
the line of his chosen work. He is
married and is the father of three
children. He will move to The Dalles
as soon as the new bank is ready to
open.
Charles H. Schlacks, president of
the Union Oil company of Delaware,
makes a favorable showing of affairs
of the company in California, with
combined net earnings for the first
two months of the year of $339,000.
Of this amount $22,000 was due to the
price Increase of crude effective Feb
ruary . 1 and the Increase effective
March 17 adds $60,000 a month prof
its to the subsidiaries.
.
Angus M. Campbell has accepted
the position of office manager for
the Ralph Schneelock company, whole
sale bond dealers. Mr. Campbell was
for several years assistant cashier
of the First National bank of Ho
quiam and for the last three years
manager and cashier of the Monte-
$900,000
Montgomery Ward Warehouse Corporation
(Principal and interest guaranteed by Montgomery, Ward 8C Co., Inc., of Illinois)
First Mortgage Serial 6 Gold Bonds
Dated March 1,1920
Interest payable semi-annually March 1st and September 1st. Portland Trust Company of Portland, Orcgon,Trustee
Interest payable at Portland, Oregon, or Chicago, Illinois. Normal income tax up to 2 paid by the Company.
, Callable all or part on any interest date at 101 and interest
MATURITIES
AH
Yield 0 .20 to 0 and above
t Province of Ontario 6s. . 1923 7.20
Due April 15, 1925. A&O 15. Price 95 and interest.
ttB. F. Goodrich Co., Convertible 7s 1923 7.40
Convertible Into common stock at 80.
Due April 1, 1925. A&O 1. Price 98.25 and interest.
f Greater Winnipeg Water Dist. 5s 1922 7.30
Due July 1, 1922. J&J 1. Price 94.92 and interest.
fCity of Vancouver, B. C, 4 2 s 1921 7.50
Due June 1, 1921. J&D 1. Price 97.10 and interest.
City of Vancouver, B. C., iy2s 1923 7.50
Due February 1, 1923 F&A 1. Price 92.67 and interest.
Southwestern Bell Telephone Co. 7s.. 1925 7.60
Convertible into 7 cumulative preferred Mock at par.
Due April 1, 1925. A&O 1. Price 97.50 and interest.
fllooker Electrochemical Co. 7s 1922 7.73
Due February 1, 1922.. F&A 1. Price 98.75 and interest.
tSinclair Oil Corp. Secured 72s .1923 8.00
Due May 15, 1925. M&N 15. Price 98 and interest.
fCity of Edmonton, Alberta, Gold 5 Vis. . .1929 7.50 up
Due October 1, 1929. A&O 1. Price 86.58 and interest.
ITo be redeemed at 100 on Interest dates. Price of 86.5S fig
ures 7H for 94 years as if the bonds will run the full term.
The bonds retired at 100 prior to due date will yield an In
terest return greatly in excess of this figure.
Denominations fvlOOO t?500 $486.67 $100
We offer the above for cash on partial payment plan.
Ask for full details of any of these issues. Wire orders "collect.
sa PstBcisc.
eano National bank and has a wide
acquaintance in the Grays Harbor
country. He has been active in civic
affairs In southwestern Washington
and the management of the bond firm
regards his acquisition as fortunate.
...
A new chapter in the history of the
Irving financial institutions began
April 19, when the Irving National
bank and the former Irving Trust
company opened their doors in the
Woolworth building as a consolidated
business concern. The Irving trust,
which, for the purposes of the amal
gamation has been known during the
Authorized and outstanding, 900,000
$90,000 ....... March 1,1922
90,000 ...... March 1,1923
$90,000 ...... March 1,1924
$90,000 ...... March 1,1925
$90,000 ..... J March 1,1926
Trices to
SECURITY OF
The bonds are secured by an ab
solute first closed mortgage on
property and concrete "warehouse
now under construction in Portland,
Oregon, which will have a value of
approximately $ x ,400,000.
The entire capital stock of the
Montgomery WardWarehouse Cor
poration, excepting qualifying di
rectors' shares, is owned by Mont
gomery, Ward & Co., Incorporated,
of Illinois, which Company will use
the plant as its Pacific Coast dis
tributing depot.
Montgomery, Ward & Co., Incor
porated, of Illinois, have leased the
plant for the life of the bond issue at
Gross Sales Nt Prnsss
1914 H . $41,042,486 $2)10,093
1915 . - $49,308,587 $2,472,657
1916 . $62,044,336 $4,550,791
The annual net earnings of the Cotnpsmy for 1919 in ratio to the
guarantee on these bonds are:
94 times annual interest
35 times antwial maturities mad Largest interest payment '
4 5yi times entire turn
Montgomery, .Ward & Co., Incorporated, were established as the first
mail-order house in this country in 1872. Although the immense advertising
campaigns have made the name of Montgomery, Ward & Co. a household
word, and the list of customers of years' standing have an immense value, no
assets such as Goodwill etc are taken "into their statement. The net worth of
Montgomery, Ward & Co., Incorporated, as shown by their balance sheet of
December 31, 1919, was $54)2928.06. .
GIRVIN & MILLER
. Government, Municipal, Corporation Bonds
BAILLARGEON BUILDING, SEATTLE
SAN FRANCISCO SANTA BARBARA LOS ANGELES
Subscriptions for the above issue will be received at
NORTHWESTERN NATIONAL BANK, PORTLAND
statements berein are official or are the firm's opnrioa
and while we do- not guarantee them, they are the
securities.
1
SECOND FLOOH
NORTHWESTERN BANK BUILDING
Main 64S
last, few weeks at the New York Na
tional Irving bank, has ceased In
dependent operation. It will be known
as the Irving National bank. New
Yojk. By the amalgamation. Its re
cources have been increased to ap
proximately $300,000,000. Lewis K.
Piereon heads the new institution as
chairman of the board. In the forma
tion of policy and the direction of the
new institution, he will be assisted by
Alexander Gilbert, Rollin P. Grant.
Frederic G. Lee, John H. Love and
Harry E. Ward.
Read The Oregonlan classified ads.
Due Serially
$90,000 ......
$90,000 ......
$90,000 ......
$90,000 ......
$90,000 . . ., .
yield 6i
THE ISSUE
an annual rental sufficient to pay op
erating charges, taxes, depreciation
and interest on bonds of this issie.
This lease is deposited with the
Trustee as additional security for
the bonds.
Montgomery, Ward 8C Co., Incor
po rated, of Illinois, unconditionally
guarantee payment of the principal
and interest by endorsement on each
bond.
As Montgomery, Ward & Co., In
corporated, have no funded debt,
their guarantee of these bonds is a
direct charge on the net earnings of
the Company, as follows:
. Sales
N Pro6f
$5,419,688
$6,390,181
$5,094,170
1917
1918
1919
. . $73,512,645
. $76,166,848
. . $99,336,053
on rofnimsllnsj wWek we retard as
data
which we have acted in the purchase
FREE FROM
Ca
maoiam
Principal and
United Stales
$206,000
Edmonton Gold Bonds
Dated: Oct. L 1919 Due: Oct. 1, 1929
DENOMINATION: $1000
These are 5 GOLD BONDS ot the City
of Edmonton, Alberta, and are a general
and direct tax obligation of the entire city.
EDMONTON is the capital of the Province of
Afberta and has a population of over 60,000
people. It is 6erved by three transcontinental
railroads and numerous branch lines.
PRICE: 86.58 to yield 7i
BURGLAR AND FIRE-PROOF SAFE DEPOSIT BOXES FOR RENT
MORRIS BROTHERS, Inc.
THE PREMIER MUNICIPAL BOND HOUSE CAPITAL ONE MILLION DOLLARS
MORRIS BUILDING 309-11 STARK STREET Between Fifth and Sixth Streets
Telephone: Broadway 2151 Established Over a Quarter Century
50
and Safety
Send for oor circular and be
convinced that we are offering
the small Investor, the man
with from $100 to IS00O, an in
vestment that is absolutely
safe, and that will pay 50 or
more every year. A large num
ber of Portland people are
among our stockholders. The
opportunity will be open for a
short time only. We refer to
any bank or business house
here, or to the Commercial
Club.
QUEETS TRADING CO,
lioqHlajx. Wats.
March 1, 1922 to 1931
March 1,1927
March 1,1928
March 1.1929
March 1.1930
March 1.1931
relmble:
of these
ALL DOMINION GOVERNMENT
.Gol
Semi - Annual Interest Payable in GOLD COIN of the
in New York or at the quarters of Morris Bros., Inc.
LIBERTY and VICTORY BONDS
Tf yso must sell your Liberty or Victory bonds.
mom uoeriy or iciory Donas. Day irom
On Ssturdsy, April 24. 1920. the closlnc New Tor market prices were, as rlyen
be-low. They ars the icovernlns; prices for Liberty and Victory bonds all over tha
world, and the highest. We advertise these prices daily In order that you may al
ways knew the New York market and the exact value ot your Liberty and Victory
Bonds: 1st lot 2d 1st 2d 3d 4th victory
8Hi 4s 4a 4V.S 4n 44s Sm m
Market UJ 10 JS5 50 $-.5 lO Jmi.ih) .VS0 $90.50 $35.M X'jli 44 $ti 50
Interest 1.26 1.44 1.78 1...3 1.89 .47 .12 1.33 1 7i
Total.. $4 SS $86.94 J88.89 IST.M $87.69 $90.97 $83.92 $97.79 $98.22
When buylnir we deduct 87e on a ISO bond and $2.50 on a $1000 bond. Wa
sell at ttxm Mew York market, plus the accrupd interest.
Burclsr and Fireproof Safe lepoit Iinxea for Ren
Open 1. nUl S 1'. M. on Saturdays.
MORRIS BROTHERS, Inc.
Tha Premier Municipal Bond House Capital On Million Tollara.
Morris Ituildlna. 809-311 Stark St.. Iletwren 5h and th
Telephone Broadway 2151. Kxtaulbthed Over a Quarter Ontnry
Maturities to Suit
Individual Requirements
Yields: 6, 7, 7.50
Yield
6 0rf7 Bench (Municipal) Canal Serial 6s, Due
1924-34
15.000 acres. 95rc under cultivation. In tha rich, pro
Inrome Xax ducing section of litg Horn County, Wyo.
Exempt
7
7r A CvC Associated Simmons Hardware Co.s 5-Year
DU 77 Gold Notes
Avfrare net earnlntrs S yearn, over four times Int.
charires on notes. I.arpest manufacturer and dis
tributor of kind in world. Price 88.
6.25 S
(is
1373 acres. 90"i cultivated successfully for vears.
Income Tax Plans approved by state commission. ttondd certi
Kxempt fied by Sec of State.
' Uiukir- SnporvtSiorL-Orvgxm SLvUi fVuvlcinDcparliuCttC
Borvds -Trusts-Acceptances
Lumbermens Bldg.
Trade With the Orient
"With correspondents of the highest standing in China, Japan,
India, and other countries of the Orient, and branches in all
the principal ports on the Pacific Coast of North America, this
branch is excellently equipped to serve the interests of the grow
ing: trade with the Orient.
The Canadian Bank of Commerce
Fourth and Stark Streets, Portland, Oregon
Four hundred and eighty-five Branches in Canada, also Branches
in London, England; Mexico City, Mexico; Havana, Cuba; Kings
ton, Jamaica other Branches will be opened shortly in Central
and South America and British West Indies.
BONDS
MORTGAGE
O. W. T. MUELLHAUPT & CO.
THE FINANCIAL IIOISK OF SERVICE."
WE BUY LIBERTY BONDS
IsH
C. S. 7arft Bsrwk Ma
Rates on industrials are being forced by the weakness of
Government bonds. This gives conservative investors an
exceptional opportunity to get a combination of high yields
and first-class security. We sell high-grade industrial
bonds, notes and preferred stoc-ks.
"The House Built Square" j
Carstens Eyries, Incorporated I
Est.
Government, Municipal
Third Floor U. S. NatT Bank
LPhone your want ads to The Oregonian.
Main 7070, A 6095.
TAXATION.
d Bonds
$1S0,000
Ontario Gold Bonds
Dated: April 13. 1920 Due: April 15, 1923
DENOMINATION: $1000
These are 67c GOLD BONDS of the Province
of ONTARIO and are a general and direct tax
obligation of the entire Province. ONTARIO
is the largest and most important Province of
Canada, containing 407,262 square miles and
a population of approximately 3,000,000 peo
ple. All of the taxable property, wealth and re
sources of the Province are back of these bonds.
PRICE: 95.00 yielding over 7.20,
sell to us. If you can bur.
us.
California-Washington Timber Co. 5-Year
7 Gold Notes
Secured by one of the west's, finest timber stands In
(J rays Harbor County, Wn. Price 100.
terprise, Or., Municipal Irrigation Dist.
Id 111 IB lxli.
LOANS
INSURANCE
1891
and Corporation Bonds
Bldg. Phone: Broadway 4108
(SAFETY Flsr