22
THE OREGON DAILY JOURNAL, PORTLAND, FRIDAY. JULY 13."
. Finances Industry and Enterprise
Edited by Joe H. Jordan
FARM LOAN BANKS
PROVE WORTH TO
FINANCIAL WORLD
System Has Now Taken Its Place
as One of Greatest; Has About
; Fortieth:, of AH Farm -Loans.
OLD MORTGAGES PAID OFF
B ut Considerable of Money Has
Been Used for Permanent Im-
provements and New Machinery
The federal farm loan system has
during. the past-two years taken its
place among the great .financial sys
termsof the world. It now has on
Ha books about one fortieth of all the
farm loans in the United States, and
because ft offers an opportunity for
making loans on a differential basis
giving longer time and providing
for gradual, payment it has proved
a valuable thing for the farmers in
most parts of the country. For
months during the war it offered the
farmers an opportunity 'for making
loans, when many of the other great
farm loan agencies were not in posi
tion to make loans except in a very
limited way. It may be taken for
granted, therefore, that it has helped
-keep down interest rates, not only
for the:farmers actually using it, but
. to most other farmers.
ADVANTAGES ARE SHOWW
The question has often been-asked as
to what use the farmers are making of
- the money borrowed through the federal
farm loan system. Most people thought
that about the only use made of it was
to pay; off old mortgages. Some people
have said that it did not do the farmer
or the country much, good merely to shift
1 mortgages over from one money loaning
system to another, that not much is ac
complished for the country by putting
the ' federal - farm loan system in the
place of the old-fashioned mortgagee.
There are - many good arguments on
' the-other side. The farmer who has
- been paying a high rate Of interest and
carrying the load, not only of the high
- rate of - interest, but the commissions
- and second mortgages for commissions
and at the same time facing the possi
; ble demand on him for a payment of the
whole ' mortgage .In five years or any
other shorter period, is. likely to think
. that it helps agriculture a great deal so
far as he Is concerned, when his load is
made lighter and the payment of the
mortgage provided for In an annual
charge of 1 per cent on the loan 'with
the privilege of payment in whole or In
part at any time after five years. Under
- such circumstances he is able to farm
, with "more 'confidence, with more ease,
v with -more comfort, and he can use what
money- he can raise from year to year
iii developing his business. The fact Is
that nothing is better for the country
than the refunding ot every outstanding
mortgage debt on long time, easy terms
sucn as are offered by the federal farm
loan system. ' -IMPEOtEMEJTTS
ALSO MADE 1
But, , as a matter of fact, the farmers
are . not using all the money for the
, payment of outstanding mortgages.. The
federal farm loan bureau, has recently
: made a computation covering about
fUO.rtOO.OOO of the more than f212.000.000
in 'loans already made,' for. the purpose
of, finding .out how much of the money
borrowed ; was used in paying j off old
mortgages. ' The result shows that out of
very $100 borrowed through this system
f 38 was used for other things than" pay
ing off . old. mortgages. y In the district
covered by the .Wichita bank. 947 out of
every f 100 was used for the development
of the farm, through ? such : things as
fencing, buildings, livestock, machinery,
etc, and $53 for paying off old mort
gages. In the Omaha district. $54 out of
every $100 was used for paying off old
mortgages and' $46 for development of
the farm. , '
LOCAL SECURITIES
Bid.
oe.po
Falling in Exchange
Blamed to Bankers
London. July H. Explanation of the
falling of the sterling 'exchange, offered
by an American business man .today,
wau that it is due to a ring of American
bankers "manipulating from New York
with extensive' blocks of British credit.
A further dro In the sterling exchange
Is generally looked for.:
pacific Coast bask statement
i... . : Portland Bank -.
Clearings Thltweek. Yor Ago.
Monday ...,. . 884,049.75 .$ 4.4ff2.760.ft0
Twsdsy .... 6.2O2.820.H2 4.408.47S.2W
VednUj . 8.91 3.364. 7 2.821. 18.1
Thursday ,. 4,277.048.81 . 4.582,012.03
Friday ..... 4,720.030.81 2.081.30S.a3
" .' , . Tseoma Bank V':'
ttsrinc Friday 1 . . . . . a . . S8S.070.00
Balance Friday ....... . 81.044.00
Spekant - Senas -'
Ckaiinri Friday , l.!3.57.00
Haisnces Friday; ...... 684.841,00
Seattle Bank
Clearing Friday ,....,......$ 6.811.945.00
Balances Friday ..........,.,. 1.870.880.00
San Francisco Banks
Cfcrins Friday .$28,207,289.00
Lea Anseiet Bank
Clearing Friday j $ 8.844,521.00
Public Utility Corporations -
Korthweatem fclactric, ptd. saocs .....
Common stock .SlS-
Bonds, 1st Mta- Ca. dna 19 so .....
Ore. Klectric Ky. bonds, 1st Mts-- -Ca
dne 1038 u.;... 76 OO
Am. P. U. ptd. stock. , 74 OO
Common stock ........ ... . 73.00
- rtntinna on common stock . . S.OO
Fee. P-A U. TUf Vt&- stock, ; ,
Bonds. 1st and ret 6a. due
1980 . . . .
Port: G. . bonds afr 8a. dus
1951
port G-. A C, 7 & ptd. stock. -
Bonds, 1st and ret. 6s. doe
1940 ......... . . . . .
Pac. TeL v Tel..: pfd. stock. .
Common stock . . 4- - - '
Bonds. 1st sad ref. Oa, 1930.
P. R., U a F. common stock. .
Bonds. 1st ana rei. us.
1942 . ... . .... ... .
By., 1st ana ret..
Ask.
$84.00
19.60
f 97.00
'- 7S.ee
Z 78.0
1 76.00
1 1.00
100.00
86.00 90.00
99.ee
96.00
85.00
88.79
28.00
91.50
6.00
65. 25
100.00
200.00
. 90.00
; 90.00
92.66
8.00
t : I
r 70.00
Bonds. P.
. loan
Bonds. W. V. So. lt 0s. due
1930 ; . ............
' Bonds. Urn. Elec. 1st 5. das
1935 . ..... ... . '
Pac. O. A EL &. F.J. 1st pfd.
. stock -
Bonds, sen. ref. 6a. due 1942
Common stock ............
Bonds. Cai, ii. A JEL ufy. 5a,
IflST -"-at e . - i
Bank 6hars ..
Bank of CalifornU. ......... $1 89.00
70.00 ; 75.00
82.00
89.60
86.00
64.67
92.67
Citizens bank
Canadian Bank ot
Hibernia Bavincs ...........
First National ............
Iadd it. Tilton
Northwestern National . . . . , .
State Bank of Portland . . . .
United States National ......
Mitcel Ian sous Sacurittas
Aril n Eton club bonds, 6s. duo
1934 . . . . .............
M. A. A. -C bonds. 6s. due
103O .-. ..i.s . . ". t
TJnirersity ciub bonds, 6s. da
1933
Waverley C C bonds. 6s, due
1932
180.00
205.00
17 S. 00
195.0ft
300.00
185.00
176.00
800.00
65.00
91.00
60.00
95.00
" 89.75
92.75
iib'66
jf i
s66!66
89.00
83.00
60.00
97.00
Atlas Powder Dividend
The regular quarterly dividend of IVi
per cent on preferred capital stock of
the Atlas powder company has been
declared payable August 1. 1919, to
stockholders of ..record at the close of
business on Saturday, July 19, 191t.
!llill!lilliltllilllllllll!i!llllilil!l!illillllliillllllill!il
Have you payments or re
mittances to make abroad?
Fluctuations in the Foreign Ex
change market have been very great.
In order that we may serve our customers
to the best advantage, we make it our busi
ness to keep posted by wire of the conditions
of; the New York money market, on which
Portland rates are based..
. -
We invite inquiries as to your needs.in Foreign
Exchange, and call your attention to the fact
that prompt advices of a low market often mean
a saving to our customer.
First National Bank,
Portland, Ore.
Fifth and Stark--Streets
lllllillilillllllli
GERMAN DECLARES ONE
HELP NEEDED BY HIS
COUNTRY
MATERIALS
Raw Products, Particularly Cop
per, Are Asked For; Loans ;
for Credits Requested
By' Carl B. Great
BerUn, July IT. (Delayed.) XJ. P.)
Germany wants loans for credits from
America .:.".. ..
Director Wasserman of the Deutsche
bank made this clear' today in an in
terview in which He pointed out that
raw materials and food were essential
if Germany was to meet the obligations
of the entente and become a stable mem
ber of world society. ,
German bankers would not make over
tures to the Americans. Wasserman
said, as they did not know whom to ap
proach, but would wait for - American
financiers to renew relations.
There is only one - way Germany
can be helped at this time," he said.
"It she can' get i copper and . other raw
materials on credit,-, then she can begin
the task of building up her country and
repaying ber j debts. We would . want
credit for as long a time- as was re
quired to produce manufactured gooda
With the proceeds - from half or Ave
eighth of the raw material thus manu
factured. X - believe we could repay our
credits." -
Herr Wasserman emphasised the ad
visability of the entente and America
taking steps by which the value of the
German mark could be .stabilised for a
year-;- or two. ' v r - :
Wasserman. who la one ot Germany's
leading financiers, is ' also a close i fol
lower of political and social affairs. I
asked him. Incidentally, what he thought
of the socialisation -of Germany. . .
TFront-thf' political ' standpoint It is
purely an internal ; questien. he an
swered, "hiit from an economic course
it interests foreign nationa I - believe
Socialist political control ? could be ac
compllsbed. but as for actual and com
plete industrial socializing there is no
chance at present. That will be a prci
cess of evolution, r You can't force So
cialism on a whole nation at one stroke.
X. "I do believe that if .Germany were
socialized, other countries would - not
deal with her. But America and the
other powers need , have no cause for
iworry from that standpoint."
V, . Brjan Is to Speak ;
, Castlerock, Wash;. July 18. The
Castlerock Chautauqua . . will be beld
July 25 to 20.- W. J, Bryan Is scheduled
to speak July 27. t - . f
CLARK, KENDALL S CO. ,
INCORPORATED WITH
CAPITAL: OF 5100,000
Walter ' Kendall ; Becomes Presi
dent, Willis K. Clark Drop- ;
. ping Out of Concern, i .
Articles of incorporation have; been
filed for Clark. Kendall . & Co.. Inc.
dealers In government, municipal and
corporation bonds, resulting from a re
organization of the firm of Clark. Ken
dall it Co.. hitherto operating as a co
partnershlp. r The corporation will con
duct its business in the. present Quar
ters at Fifth and Stark streets.
. The company - is - incorporated with a
capital of . $100,000. fully paid. ' The di
rectors are Walter Kendall. Ralph W.
Wilbur, Claude D. SUrr, H. M. Dooly
Jr., all of Portland, and Edgar C. Riebe,
president of the Import Chemical com
pany. New York city. The officers are
Walter' Kendall, president :.tEdgar - C.
Ritbe. vice president ; R. M. Dooly Jr.,
secretary and treasurer : Alan Green,
assistant secretary. v -;
WISH K. Clark and - Walter Kendall j
formed the co-partnership of Clark. Ken
dall Co. In February, 1916, with of-!
flees in the Northwestern Bank building.
The firm .was successful ; from : its In-
cepUon and It's business grew - to - such
an. extent thai it wai-necessary to have
larger quarters nd In April ' of this
year the business was removed to the
present ground s floor location In the
heart f Portland's financial district.
The firm has dealt largely in the pur
chase and .sale of . Oregon and Idaho
municipal bonds and has also" been ac
tive tn participating in Issues of securi
ties .brought: out by eastern syndicate.
As -correspondents of Spencer Trask A
Co. of New York and Chicago it has been
in a position to offer to local Investors
a large variety of : attractive Industrial
and corporation bonds. The firm also
represents the Mortgage-Bond company
of New York, and as its' agent has loaned
a large amount, of money on the -best
clasn of Improved Portland real estate.
i WUlis K, Clark will not be identified
with the - new corporation" because. .of
other business connections now pending,
! "I feel certain." said Mr. Clark, "that
with.' its strong financial backing and
capable personnel, the men who wni di
rect the affairs of Clark. Kendall &. Co.,
Inc will be In a position to render the
sama efficient service to Us clients that
our firm has always rendered, and that
the new corporation succeeds the part
nership with every, promise of conUnued
success."
- Ralph Schneeloch. who has been with
Clark. Kendall ft Co. since December,
191, and a partner since August, -1917,
has. with associates, crganlsed the P.alph
Schneeloch. company with offices In the
L,umbermens building, v The plans of
the Ralph Schneeloch company contem
plate ultimately a general bond business.
The immediate future, however, presents
such a large field in both municipal
and' corporal Ion finance that It expects
to devote itself at this time more- par
ticularly to , that work The direction
and guidance of municipalities and cor
porations in connection with , their
financing, and the formation of syndi
cates for the underwriting of Issue, is
the particular line of work with which
Mr. Schneeloch has been identified and
to which In the new 'organisation he
will be able more largely to devote
himself. i .
LIBERTY BOND SALES
tlbsrtr bood clod! ths- Kssr Tare
Bsturdsj.'. . .
Uondsy. ... . . .
rtwdsr . . . .
d' sdmsdsj. . .
Thnrdy . ...
Frldsy. .. . . .
stts
.S3
89.82
B8.2S
99. 2S
. 09.34
99. 4
lit 4s
94 00
S8.R0
04. 00
S.00
93.94
93.00
2d 4s
0B.4S
93.40
9S.40
A3. 40
03.32
Bstsst at fellowlnt pries. -l.t4Hs
td4Hs 3d 4 Us 4th 4 Us
i 04
94.00
93.0S
95.0O
. os.oe
03.00
04.10
S4.04
04.02
84 00
83.02
03.03
88.00
03.02
04.0S
84.0H
04.00
04.04
04.10
04 OS
os.ee
03.00
08.92
88.74
- Vie tori
8 It s 4t
100.03
1O0 02
100.03
100.00
100.no
1A0.00
sees
90.BH
80. 9S
09.00
99.9
eo.ee
Fourteen Points of the Bond Business
No. 14
There Was a Time When
it seemed necessary to go east for money as large amounts of
capital were needed to develop the industries or the resources of the
west. Since the incorporation of trust companies and investment
banking institutions, however,' a way has been provided to finance
western institutions and develop western lands with western money.
Every loyal-hearted westerner should feel thankful that this
Yransitipn has taken place.1 The people of the west now know that
they can finance themselves, thus KEEPING MONEY AT HOME.
Today the bond issues which are intrusted to local investment insti
tutions for financing, work; a treble benefit: home capital is put to
a useful and productive purpose, the interest as well as the principal
is kept at home and the needed development of the west is brought
aoout. .
. Furthermore, western people know conditions in the west better
. A.t t. Tm m ....
uidn.anvonc eise. jnereiore thiv ar hct nu ;.,a r-
and soundness of securities based upon western cities. western land, '
western 'resources. " -, , ' ' ' ' - , . . - ' " '
' ' - Let'g .Help Ourgelves by Helping the West
Lumbermens trust Company
Lumbermen BuUdlng ' ' ' ,y Fifth and Stark
h Half Million in Capital Hundred Thousand in Surplus
Tclx Exempt in California
$6,000,000
Exempt from Federal Normal Income Tax
Goodly
ear
u7?(rJo Cumulative
- U Preferred Stock
Par Value of Shares $100
8b, RiuiEl&eir
Califbrhii
Full PakJ
. Non-
inem
Dividends payable quarterly on January,' April, July and October 1 U
i Redeemable as a whole only at 105 during firtt five years and .
. thereafter at ; 1 10 and accumulated dividends. . .
Los Angeles Trust and Savings Bank, Registrar;
A letter from President F. A. Seiberling
Dear Sirs: i ' ' ' ' - v
I take pleasure in giving you the following information regarding the GOODYEAR TIRE
& RUBBER COMPANY OF CALIFORNIA:
- ' This Company; has been incorporated under the laws of the State of California to manufacture
and sell automobile; truck and motorcycle tires and tubes," tire accessories andf repair materials, aero-,
nautic supplies and mechanical rubber goods. ' ,
The established business of The Goodyear Tire & Rubber Company (of Akron, Ohio) in the
States of California. Oregon, Washington, Idaho, Montana. Utah, Nevada, Wyoming; Colorado,
Arizona and New Mexico and Hawaii is being turned over to it. ' ;'(, li .
The sales in this territory in the year ' endingXctober 31; 1918, amounted to $1305,619.71.
One new corporation, therefore, commences with a large business and a valuable good wilL
y
! Capitalization
' - The Captital Stock of the Goodyear Tire a Robber
Company of California will-be authorized sad out
standing ss follows: .
Preferred Stock, Aataris4 ww t b isrfa
7 CumuUtiTe.$ 10.000.000 $6,000,000
Common Stock... $1 0.000.000 $3,000,000
Tbs S4.aes.ftee of prefsrrsd stock rsmalalas; earn
enir be issuea vnaer special resineuona
Purpose of Issue of Preferred Stock
The proceeds of the! $8,000,000 preferred, stockv tc
Cether with $3,000,000 cuh to be pai by the Akron
Company as part consideration for the $3,000.v000 par
value of common stock now to be issued, will be
nsed to bnild a plant at Loe Anceles for the taana
factnre of tires ' and : other 'rubber products hereto
fore manufactured by the Akron Company, and for
working capital. j- f S-
Description of Plant .
The parent Interests of the corporation have pur
chased approximately 00 acres of land-tn the City
of Los Angeles, consisting of the Ascot : Park and
adjoining terrltoryi.v Ample area; fort" factory pur
poses will be conreyed to the Company and. the re
mainder devoted to usee allied to Its business.
The tire factory wilt have a capacity of 2000 tires
a day and will employ approximately 2500 operaUvea.
jS ' PatenU-,'
.The Goodyear Tire & Rubber Company of Callfor
, nla will, in Its manufacturing business, en joy the -use
of the identical ; patents, -formulas, and - trade
marks used by the Akron Company and nnder ths
same terms and conditions as the Akron Company.
lousiness
That the talue of the business turned over to the
California Company by the Akron Company is very
great, is demonstrated by .the sales In that territory
for the past nine years. . These sales were for the
years ending October! 31st. as follows:
1910 .:............$ 186,700.00
1911
1912 w.
1913
1914-.....:..
1915
19161 ;
1917
573.879.44
1.324.605.41
, 2.520.007.93
2.837.655.30
3.517.146.46
6.449,121.84
12.467.862.70
1305.619.71
1918 L ..... .
" Owing to war restrictions, limiting" production, the
Increase of 1918 over 1917. was much less than if
conditions bad been normal. Ths above figures do
not include any export business.
. Earnings
Pending the completion of the California plant, ths
Akron Company will supply, the California Company
with goods at wholesale. - The net' profit to "be de
rived from the distribution of these goods by ths
California Company, based on last year's sales. Is
estimated to be over three times the dividend re
quirements on this issue of preferred! stock. When
the California plant is completed there will be added
to this the manufacturing profit which now goes to
the Akron Company.- ',.-::.,.
Future Prospects r
The California plant is being built because of the
Inability of the Akron Company to keep pace with
the .constantly, increasing demand in" the : territory
hereafter to be served by the California Company. -
Preferred Stock Safeguards
By the Articlee of Incorporation the nature and
extent of the preference granted the preferred stock
is established as follows: ; ' - ,
The stock Is non-assessable. Dividends at the rate
f 7 per annum are camulatrre from the aate of
In the event ef dissolution of the eerporatlon- and ;
the distribution of its aasota the prefsrred stook
must be retired In full with cumulative dividends be
fore the common stock recelvee anything.
The holders of the common stock or the corporation
may redeem the preferred stock In whole, but' not In
part, at any time within fivo (S) years at let end ac
crued dividends and at any time after, five years
at 110 and accrued dlvldenda
Until alt of tho prfsrred stock shall have been re
deemed, said cerpoiatloa shall not have the power.
without the afflrraatlve veto or written consant of. the
holders of record of at least three-fourths In imoant
'of the then outstanding preferred stock. (1) to create
any lln upon said corporation's 'roar or pareonal
property, tncludiaa stock and aoeorltloa. or any part
thereof, for the purposs of Securing. an-leeee of beads
or debentures, or lUte. obligations; 2 to create eny
snortgage upon eald corporation's' real property, or
any part thereof, or (I) to create any unsecured In
debtedness fnaturlnjr later than one year from the
date of issue except that ' this third clause shall net
apply to or bo deemod to include obltgatlono elves
for bank credite or other forme of commercial bor
rowing.1 . .-. -. -- -..-.. .. 4.- r--:
The net aeeetsthat Is the total assets, lees all In
debtedness, shall aot at any time be less than one
and one-half timee the amoant of the par value of
tho outstandlnsr preferred stock, r
The $4. 000,080 par value, of the preferred stock au
thorised, but not yet issued,' may be issued -at the
pleasure - of the Board , ef Directors of the corpora
tion, provided that at do time shall the Common Stock
of the corporation outstanding, and for which the
corporation haa received not leas than par In cash, be
less than on share for each two eharee ef the Pre
ferred issued and then to be issued. .
Management
ernla corporation e
f firetors. tho. mi
business and acnoral policy will be Identical with that
.ef tho Akron Company. v:- 4 .
tbs Bosra ee at present eonstltuted Includes Messrs.
Harry. Chandler, President Times Publishing Co. ? J.- C.
Drake, President, Los Angeles Trust and Savings Bank)
H. W. Chfelveny. Attorney; Lee -Phillips, Vice-President
Pacific Mutual Ltfo Insurance Co.: J. P. SartorL
Presidont Security Trust and Savlnars Ban v.
Application will bo made to list the prof erred stock
ef the Ooodrear Tire dc Rubber Company ef Califor
nia en the San Francisco Stock and Bend Exchange
and the Los Anseles Stock Exchange.
While the California corporation will operate under
us own oosra uirtcrers. u. minsftmssl of Itl
Send for circular giving further details, including comparative balance sheet and earnings statement.
Price $100 per Share
Cyrus Peirce & Company . E. H. Rollins & Sons
. Sava Francisco, Los Angeles
411 U. S: Nafl Bank Bidff., Portland
San Francisco. Los Angeles, Denver
3t1I Stetomeete herein are official or are based on f nformattea which we retard
svs reliable., and while w do not guarantee them, we believe them to be corjwb ,