New-York tribune., 1886-03-20
Financial.
DEBENTURE BONDS
AS AN
INVESTMENT SECURITY.

|
iGnng & Company now neng offered 6y "a at par and nc
The ,Gur thfn ly Iub.siing IN iull an ed
VIZ The Daily Indicator Of Friday March 49, inst, which
correspondent writes for information REGARDING the
GeDeninr" g9na' OF t9e Amtcn Electric Manuiact ming
a'ure bonds and states that according his undrrsind
correspondent clearly we have eivcn
able tire close study Of order to
,e % TeG{ N Ihg & general nndsrsandns o. the
spondelt st ,te. merely complny Obligation Without
bona in realty secured bond which rcccrdInr idea
S e aRo bGiy RON e ps sr aof pa9 Sy
Which hay, cSiencd their 6u,nes, opeiatons Of bndnF
81 G i1ns 5 r ksn,, rGg the 9ce1s'ary clPta for same
a low Of interest which the earnings would pay and
% % H. parent e ss 20 S dYS IN s e aSHE 20 ,r FAR oS az we
can learn these uonds considered desirable secu
Tie amount capital invested IN gas industry OF the
sor cthns fabulous the following fsufes based
furnished 10 the Board Of Trade MP 10 November l. lss5,
amount Of car stock
IOih amount OF 13Oe39O9
Total ........ l2f. f.Gl3 753
Which atS e. t. the make grand total 37G 7O2 O5
eepre b'na nin ne \, avped r. bs DEVELOPMENT Of
the light usry in this century originated with
the American 3noany The principle. upon which Il is
ps-s u Europe beyond question Tho results Of the
SaYIP Ihe sOest HaAGm minis o. the business world
nd ry o ecciric Illumination have not opy been worked
te have 10 cr,fuy studied by numerous financial au
hortes to whom they have been submitted for criticism
S 9 whom are IN 5e oS 9non , 5 m the Sa T Is
an Investment security Of tn best tyne
hT ~ A@Gmean G9mP1mgy ~ pan & GTeiy stated & ~ ,orrc
n6aaca bo,'s VIII eapitahstioa ~hicn
TO dispose OF s. per cent of 9e capitol stock in each
ret IN per cent @ sane when i VA do5sst Win the
faert Wear bonds siiin te Sr1oant 6f bond
issue 20 - pei cent Of IN" stock deposit
a @ each H'a and every local company i' now or
hereafter owned and controlled by the American Company
The fact that the capy yzaton OF these local companies
Is 9ased upon The furnishing Of & al the & electrical
ompany reasonable manufacturers profits, without
financial snnicelt to pay the company good
] d"S lhtefSius & ~ ".I % MIN wh & 10 lay pay Ine m m in
ase sating nd for The redemption Of the bonds at or
~ Illustration Of the application ofthc deoeuiure bond
plan suppose local CORPORATION to be organized
D' tgC H2el an TomaHy %t "a s4 proe ThiGn @
At nc inc placing = dividend earning capabilities ~
or this slOo.oO) lotai stock. accepted as u'l pay.
mcnt for their investment, the American COmpany 1000
The balance o. j per cent is deposited with the
in common viii the majority iaer'st other local
orEanDatoIs tins increasing the deb bond
security. ana authorizing ssHe Oi per cent Of ~
the tjlUOO stock in additional bonds, say $4,000
$4,000
Tins the american Company enabled TO realize $4,000
stccs ana bohds 49,
The Dividend, on the $1,000 stock amount TO- say.
This Is ad By the treasurer Of the local company
directly irtO the hands ~ The American Loan q
Tru~t muany, 80 Is deducted and dis
bur ed by Hcm the per cent Interest guaranteed oo
%3s 600 OF bonds VIZ 22SO
Leaving to credit Of the American Company" $3.50
Tbs surplus ntcre. or dividend hom local companies cal
Cuiafd basis Uf 0Einm on the 81
stocN would furnish surplus alter paying
coupons sufficient retire the
lcI v years before their maturity, which would in all
cases eventually leave the controlling interest IN AL the local
practically clear profit the American COmUauy
such IS r American companys plan Of debenture bonds
wlicu have end"yOTe 10 make clear possible to
Coespon cnt aud We are bound to IN addition that
which To minds Il not only sound In thtorT
bui cync great hnan ia skl IN rs practical application TO
t business and the debentrc bond exceptionally
SAFE a well secured investment.
ANY FURTHER IMPORTATION REQUIRED MAY
BE OBTAINED FROM
A. =. HATCH a CO., Bankers.
No. NASSAU-STq NEW-YORk.
or upon application 10
E. g.. WHITING & co. Bankers, Worcester. Mass
FEM E~SEN, ARMSTRONG q Co. Bakers, Spring |
field. Mass
II. ). { tOLLIN5 x CO.. Bankers. COllinsylle Conn.
II. G. CRANSfON co., Bankers, fToymc1ce, *. l..
Ncw.Yorl March 20, 1856.