Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-03-08
American Agricultural Chemical.


Hardly less noteworthy
tian the growth in business and
earning power of American Agricul-
turai Chemical has been the steady
but rapid development of its credit
position. \ few years ago when the
company financed its first large growth
since organization. IS. 900 900 per cent.
bonds were sold at something undeI.
par. 4 year or two later block of
the same issue of bonds was sold at
par Today investment recognition of
the company has grown to the de-
gree that 8 per cent preferred stock
can now be offered to shareholders at
par II has been a splendid progress
achieved in the face of discouraging
conditions in almost every other line
of industrial activity
American Agricultural directors
have decided to recommend To stock
holders an increase in preferred stock
Of SlS,000e00 and in common stock of
$50, 100000 of which it is proposed to
issue S6,060000 preferred to stock
holders of record March Is at par.
This stock has been underWrittcn by
j Lee, Higginson & Co. syndicate.
circular issued by President Peter
=. Bradley contains a striking sum
mary Of the rapid growth i'll business
and the success of the. policy of ag-
gresslYe physical expansion which has
made this new financing a logical
move. Mr.. Bradley says in part.
During the seven years to June Goth
l9ll, merchandise sales increased over
ll0eo. During the past is months the
company has expended in the purchase
Of plants, aud phosphate properties, So,
t6L6S III cash and stock.
In order to finance increasing business
By the issue Of stock, directors have
unanimously recommended an increase
In the authorized capital Of the company
Of slS,oo0N0o preferred and $4,000 go com
mon stock, to be issued at not less than
par.
THE proposed increase viii make the
authorized capital s5b,000,00o preferred
and 600 common. none Of which
can be issued at less than par for cash
or its equivalent
\ year ago directors decided To have
an independent appraisal of the real es-
tate and plants made for the Informal
ton of the stockholders. The engineers,
Westinghouse, Churcn, Kerr q Co. We're
accordingly employed. To date they
have made an exhaustive examination
OF IS properties and have reported IN
aggregate appraisal on same OF Sn.6l. 24S,
which compares with the book values OF
these properties on Dune goth, i9lll Of
%g,355,S0S. the appraisal being 81, $50 in
This company owns in Florida II ,995
acres Of land. found to contain not less
than fog1,Go tons Of phosphate rock
These properties with their plants, now
stand on the company's books at $6,d19.-
26l, after deductinG s67S, 200 written off FOR
depreciation to date
These properties have enhanced in
market value since their acquisition ard
Il appraised at 20 cents per ton for rock
IN the ground on which basis one of the
largest phosphate properties in Florida
a. h.4n hsanh
value would he SIG 507. tl9. This does
not, however, include the timber and
turpentine a large amount of which Is
located on the properties, nor the land
ON which no phosphate has been found
which is valuable for farming and other
purposes
The essential feature Of this sur
prsing exhibit of. assets is that it
means that American Agricultural no
longer need show in its balance sheet
a dollar of good viii or trade marks,
Or, stated still more bluntly it means
there is dollar of real Tangible prop
erty for every dollar of common stock
taken ut par At least, this is the
conclusion which may be drawn from
the following statements the figures
helng derived from President Brad
ley's circular.
Excess appraised value of real
estate and fertilizer plants
over hook value .+..+.t..... S2,2bl 800
Excess market value of phos-
phate lands over book value 10,027, SSS
Surplus balance sheet as OF
June 80. 1911 ....s 6605, 499
Total E..-s.. .a.....s.ss.. 1884. 1877
This sIs.S94.737 of property and sur
plus is equal to $3,243,191, or 20 per
cent. more than the $15,651,54 at