South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-12-15

CJan. to Dec 1 inclusive) between
the year in which the notes shall be
redeemed and the year in which
they mature.
The corporation has no bonds.
dcbentures or long time obligations
outstanding.
ION March 1, 1912. the corpora
ton issued 100000 of five percent
ten-year serial gold notes, payable
$500, 900 semi-annuauy from 1912
20 1922. but through large increase
OF profits, reductions in vehicle in
ventories, and other income, it was
possible in 1915 20 anticipate pay
ment of over one-half Of these Sc
rial notes and in February, 1916, 70
anticipate and retire them altogeth-
er, six years before final maturity.
Provisions OF Trust Agreement.
The trust agreement, which this
corporation will enter into with the
Central Union Trust Co, of New
York as trustee, under which the
notes viii be issued. Will make pro-
vision, among other things, that Ca)
as long as any of these notes are
outstanding the corporation Will not
mortgage any of its real or personal
property. unless it shall make prOvi-
sion therein for the security there
under of all said notes then issued
and then outstanding. but nothing
shall prevent the corporation from
purchasing property subject to "A
mortgage OF from creating a pur-
chase money mortgage TO the extent
of IS percent of the fair value of the
property purchased, nor the pledg
Zig by the company or by any sub
sidiary company as security for
loans made TO il or them or any of
them in the regular and current
ness, or account receivables or other
LIQUID assets or any stock, bonds or
other securities owned by them or
lany of them other than shares of
stock % any subsidiary company
(B) That this corporation will at
all times maintain its cash and quick
assets in sum equal 10 at least one
and three-quarters times the agsre-
gate amount of an its liabilities and
Indebtedness. secured and unse-
cured. including the face amount Of
Lam of the aforesaid notes at any
time outstanding. i'm the manner 10
1 he defined i'm the trust agreement
Purpose OF Issue.
From the proceeds of these seven
percent serial gold notes the cor
poratiou plans 10 retire its outaland-
I ing bank loans, and apply the ball
lance TO the construction OF the mod
iern new automobile plant, which
was started at south Bend i'm 1915,
and upon which considerable prog
ress was made possible in Connec-
ton with war orders which this
corporation received. This new
plant. which it is expected VIII be
finished by 1920. will have a capac-
ity of 10000 cars per annum, ana
! with the facilities Of the corpora
tons Detroit plant of $4,000 cars
per annum. viii double our capacity
and give us manufacturing facih-
ties uneXcelled i'm IT, country from
the standpoint of efficiency ana eco
nomical manufacture.
Corporation Earnings.
The net profits of The Sudeba-
/ ker Corporation and its subsidiary
+ companies for the seven years end
f ing Dec. 81. 1917. after chargng OFT
S2193.O00 depreciation, We're $50
i126.oOO. an average OF $4.303.0 600
per year Notwithstanding the cur
tailment by our war operations and
THE restrictions on automobile pro-
duction. the estimated net profits for
1918, after asking provision for taxes
and depreciation, will amount ap-
I proximately 20 $4,000, 900.
We expect 10 be back in full
\ quantity production of vehicles by
Y January. 1919. and of automobiles
/ by March, 1919. and next year our
I profits should be considerably larg-
or. while thereafter. with our plant
/ engagements completed. we expect
greater profits than We have ever