The San Francisco call., 1908-07-19

the railway company 1OT 0lUU.
While these bonds costs you but $93 you hold mort
gage against the company for $780, and when your bonds
mature the company pays you back 800.
You have therefore, made IN addition to your inter
est which amounts to 543 per cent 81 each 800 bond
you purchase.
The advantage of buying bond as against straight
real estate mortgage is that you buy bond below its
face value in denominations of $780, and when times be-
normal the bonds will advance In price to probably
$780, while real estate mortgages never go beyond their
face value.
Furthermore should you have occasion at any time
raise few hundred dollars you can sell your bonds
whereas you could not sell real estate mortgage.
Another distinct advantage of buying bonds of the
Ocean Shore Railway Company is the fact that these
bonds for % years and you not required to seek
Investment after period of few years. the
OF short time loans mortgages.
Whenever you desire to sell bond you do not have
to go to any trouble, for there is always market for
listed bonds do you have any trouble in collecting the
interest for each bond bears coupon calling for the
amount Of interest due the first of May and first of
November OF each year This coupon cashable at any
bank at the Office of the Mercantile Trust Company
San Francisco.
When railroad company desires to issue first mort
gage bonds mortgage against the assets OF the company
filed with the trustee who holds this mortgage trust
for the bond purchasers and every purchaser of bond is
part owner in the general mortgage.
Ocean Shore bonds not taxable assessable they
carry no liability whatever you simply buy the bond and
the first of every November and every May you off
the coupon and collect your interest.
The stock holders of the Ocean Shore Rail-
way are responsible to the bond holders and for
the conduct of the Company. These stock
holders cannot receive cent of interest on their
investment until the interest to the bond holder
has been paid.
The Ocean Shore Railway bonds first mortgage
against the entire assets of that company.
These assets consist of very valuable real estate
the heart of San Francisco and Santa Cruz which is the
property of the company.
This property cannot be mortgaged sold, inasmuch
hold in hv thn
Mercantile Trust Company for those who purchase Ocean
Shore bonds.
The company also has valuable franchises almost en-
crcng San Francisco from deep water the bay up the
boulevard west and north OF the park to the Chues
The Ocean Shore is also operating 43 miles
of railway and own private right of way from
San Francisco to Santa Cruz.
It also owns the usual railway equipment necessary
to operate 43 miles of road
The Ocean Shore has terminal facilities in San Fran
cisco and Santa Cruz the value of which cannot be es
mated at this time
AS San Francisco continues to advance and Santa
Cruz continues to build up these terminal facilities in
both cities will become extremely valuable and will be
worth many millions more than the entire bond issue
which amounts to $5,OOO0O0
Bonds are considered the safest of all invest
ments. Banks, Savings Banks, Trust Companies
Estates and Insurance ~Companles invest their
surplus funds in first mortgage railway bonds
IF you look over the statements of the savings banks
OF San Francisco you will notice that these banks hold
millions of dollars Of railway bonds
During the panic of last November, when the national
banks needed cash. the government loaned them money
out of the United States treasury and took security
first mortgage railway bonds
The Ocean Shore Railway is large enterprise which
started in San Francisco three years ago.
Up to the time of the great disaster Of 1906 this
pany had 1000 at work and sufficiently financed
to complete the railway to Santa Cruz.
cean Shore r