Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-11-25
MINING, BUSINESS AND STOCKS.
AMERICAN SHELTERS
SECURITIES BONDS
New Method of Financing Which
Makes Obligations OF Com
Dnny Convertible.


Thu p,nu for thc financing of the
American Shelters Securities company
ofGcalIv announced ,ost ,vcc,x is docid-
edIy diffcrcnt fr,,, VIA, u,,a rrc.
,,..
'''"ss o''h''ea III ti'' ileMsl"pe'2'
upon which We made some comments.
As now Formulated the a. $. s COM
,,,v II Ia ,,,,,,a,,a a.. oa..;,,,, ;rd,,,;
-
'u''ess' a'if2.liaihS To approximately
SllOOOWO. complete the purchase of the
Baltimore refinery nm which 81 OH 200
/. I'm a,,a, NJ, ,,,,,,. a,,,, ,.nr
'' onS''' an" "'''u'' So'i'e "''
piIlS cash Tor the purposes of It's bust
ness, by the Issue of Si5O0O,Go0 of 10
ycor nor CON, doh.rt,r.o bonas
60,
"''Nh are c"hstrt'nie iof 'a s'ai'
INTO the common stock of the Ameii-
can Smelling \ refining company
,vbo,o,.r ,ho NOVA. col, a, nar mr.
"a
apoEe' ana are reaee'iapi' az iV' ".i w
days notice at any time after four
years The bonds have been under
writtcn ami nrc 10 no offered to the
.,oo,,h,,do,, r ,ho { C. y con,.
pahy at par
In so far as the y. $. 5. company Is
concerned this plan is of course beyond
tho .r,t;,.,sn ~ coon tho contious This
-, .t, ~, a.,.;,,
e'i''l'"'s VIZ S'''Pts IN 10 ''o'.is
Indebtedness and Obtain surplus OF
ABOUT S2.oo.Wo CESS uhuerWritiils co'i-
hiissions3 AZ no great increase III siiu
niinual interest," Siaisc. So'I'c o'net
ientules ~ '.i1 'tt.n'
..lliar, eslecia,'s .ne Goi,Ne,'. I'm, @
s q % por,,'s rn'' ,,.;,,,, ,n,nr.,,I,. an
s,,,,,se' ~ 49,, ,,,,,;t,i sto.,. os ~ ,nt.
20
,rbo b,sir az corvorsion has not vol
,..n,, .tntoJ bu, tho honds nrc To he is
s,1cd nj mar and wo dare saw they will
he conycrtibIc into stock AT par. The
earnings of the A. s. S. company and
the volume of its business arc such that
ITS dabentures will undoubtedly be a safe
investment. AS n further induccment the
subscribers will have what will amount
to n call on an equivalent of the com
mon stock OF the a. S. & r.. Co, lie. If
the latter should rise sufficiently above
the conversion rarity. the bondholder
can sell stock. borrowing for delivery,
and complete the transaction by con-
yertinr his bonds upon which he has
received a ner cent in the meanwhile
Assuming this to be done by everybody
the A. S. &. r. Co. will become tho
holder OF the present bond issue of tho
A. s. S. CO. in consideration of an In
crease in it's capital stock. and when
~. bonds have been paId off the A. S.
&. r.. ca. will be In possession of SIS, 00o.-
ma In cash nov, to he supplied by the
n,,hiic w.b,cy, WI, he rcnrcsentcd by its
nI,1it;oraJ common stock
r. tho A SIS 90 were not afI,l-
IT,, ,,.,.,, ~ sp 81 and had
10 -, III. 80. ,or,nonios nroh-
=. ,b,i, !. ,,a,,,d bawo ~ Iss,,o honds and
.u's ne, 49, ~ ,.n,,,,, have ,,,,an
, In. ~ i.',e'. o4s ,'.;t,o ofror
uii,'',u',' ie, nnPs .,i, H. i,,a,,o.n,n,,t
s ~ .'s $780,. ,r,,a ,rnsont
t,.at ~ NV ~. = -, a.. ,nr
PM, ~ poui'" ,,,,i,
us ingenuity. ne P'p1.,l ~ un'
tms opiiea',oHs o. 1,'e e",..p,.s T., 80.
tiDte lhto inc S,och " "h..'as. 80 -
fanny. reinarki'pie, anu ~ ~ - w.
aware Witilo,i' any plyeis.' ~ ~,
However. me ihipottah. ',,lE ~
status of the a.. ). q *. o. - Wy
preservation OF It's surplus IN coiser.
vative form. me common stock Wv
this company, representing emery tne
earning capacity arising from orsah,
cation, managerial experience, eIc,' 10
highly speculative nc prciefIcu stoSh
is regarded as an lnulNiuuai invest
ment. and is largely heid upon tnat
basis, It's esteem from that standpoint
has been acquired by the wisdom ana
conservatism of the management IN
accommodating n large cash surplus
whereby the preferred stock mas be-
come represented not merely by pur-
chase prices but by actual value, or
substantially so. Now, the company
has never, In our opinion, allowed sur
(lcicntiy for amortization. which In Is
case has taken the form of rebuilding
Its old plants and establishing new
ones, and we have repeatedly made
criticisms on this ground. The merc
maintenance of capacity by such a
company does not necessarily fulhll
the conditions OF amortization. Thus
Wc have seen This partlcniar company