The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1912-03-13
American AarIeuIturaI chemical

Hardly less noteworthy imam
the growth in business and earn
ing power of American Agricultural
Chemical has been the steady but
rapid development of it's credit pos
ition. A few years ago when the
company financed its first large
growth since organization, SS,O00,00O
5 per cent bonds were sold at some
thing under par. A year or two later
a block OF the same issue Of bonds
was sold at par. Today investment
recognition OF the company has
grown to the degree that 6 per cent
preferred stock can not be offered TO
shareholders at par II has been
splendid progress achieved In the face
of discouraging conditions in almost
every other line OF industrial activ-
ity.
American agricultural directors
have decided to recommend to stock
holders an increase in preferred stock
Of $1S,000000 and in common stock OF
$50 100000 of which 1t is proposed to
issue $6,O00,000 preferred to stockhol-
ders of record March rs at par. This
stock has been underWritten by a
Lee, Higginson & Co. syndicate.
A circular issued by President Pc
ter b. Bradley contains striking
summary of the rapid growth in bus
mess and the success of the policy
Of aggressive physical expansion
which has made this new financing
logical move. Mr.. Bradley says in
part:
During the seven years to June 30,
! 1911, merchandise sales increased
over 10 per cent. During the past
Is months the company has expended
in the purchase OF plants, and phos-
plate properties, $5.467,7SS in cash
and stock.
In order to finance increasing bust
ness by the issue of stock, directors
have unanimously recommended an
increase in the authorized capital of
the company of $1S,0O0,0O0 preferred
and 100000 common stock, to be
issued at not less than par
The proposed increase will make
the authorized capital $50,000,OO0 pre-
ferred and S50O0O,00O common, none
of which can be issued at less than
par for cash or its equivalent.
A year ago directors decided to
have an Independent appraisal of the
real estate and plants made for the
information Of the stockholders. The
engineers, Westinghouse, Church
Kerr & Co., were accordingly employ
ed. To date they have made an ex.
haustiye examination of As properties
and have reported an aggregate ap-
praisal on same of $11,617,24S which
compares with the book values OF
these properties on June 30, 1910 OF
$9,355,S9S the appraisal being $2,261,.
$50, in excess OF the book values.
This company owns in Florida 81.
995 acres of land, found to contain
not less than 100000 tons of phos
phate rock. These properties with
their plants, now stand on the com
pany's books at $6,479,261, after de
Quoting $67S,760 written of for de
probation TO date.
:, These properties have enhanced in
, market value since their ACQUISITION
and If appraised at 20 cents per tor
; for rock in the ground, on which basis
one OF the largest phosphate proper
ties in Florida recently changed
; hands their total value would be SIG.
/, 500 ,149 This does not, however. In
( clude the timber and turpentine. Z
1 large amount of which is located OF
n the properties, nor the land on Whicl
no phosphate has been found which /.
s valuable for farming and other pur
n poses
e The essential feature Of this sur
n prising exhibit of assets is that 1
: means that American agricultural n,
longer need show In its balance shee
T a dollar OF good will ortrade marks.
: Or. stated still more bluntly, II mean
I there is dollar of real tangible pro
$ perry for every dollar of common
r stock taken at par At least, this 4
/, the conclusion which may be draw
l. from the following statement, the ie
n ures being derived from Presiden
J. Bradley's circular.
Excess appraised value of
n real estate and fertilizer
plants over book value, $2.26l.35
q Excess market value OF
d phosphate lands over book
G value, 10 O27 Sc
? Surplus (balance sheet as
OF June 80, 1910 6.6O5 .4s
IS Total, IL Sa4 79
IS This $1s,S94,7S7 OF property an
s. surplus is equal to S3,24S,19i or 2
per cent more than the sl5,651 $40 a
e which brands, trade marks aud goo
y viii were carried on the books as c
e June 30 last II is also yCO0. 900 d
n excess OF the entire outstanding con
n man stock at present of S1S,3SO, 800
8 The general feeling on the stree
y is that the underwriters will be pc
,, mitted TO take but a small percentag
u OF the new preferred stock issue.
- The company's preferred has b,
. come an investment issue distribute
u among nearly 5000 holders. The ST
= per cent dividend has been proteoie
> by net profits for the last six year
. OF between two and three times n
= dividend requirements. Under n
=" circumstances It is expected that
the final cleanup Il will be foun
: that the New England stocl;holde,