Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-26
ASK APPROVAL Of
NEW FINANCING
Chapin-Sacks Shareholders
Hold important Meeting
Tomorrow.
by I. A. FLEMING.


Company will meet tomorrow in
Richmond Va. in person or by DroxE.
o take action on the proposed or
sanitation Of the ChapinSacks Cor
roTation. largely extending the bust
-. absorbing l number OF outside
properties in Richmond, Jacksonville.
Hirmi ngha:n Savannah. Macon. Knox
Vie. Cha 'ptrc. =. O.: Petersburg and
suffolk. Va. in which the parent COM
pany has been 1T least partially inter
.s.aG.
IRE management Of the Chaplin Sac $
Manufacturing Company viii remain
n Charge OF the corporation 1t is
proposed to issue sl.5o0.o00 preferred
per cent stock of an authorized
s. noo. 900 iss~e. c2.4.5Oo per cent
general preferred and s1.0s1.6o0 Class
\ common stock. with an undetermined
amount Of common stock.
II is understood that the sharehold-
ers will also be asked to approve a
common stock dividend.
The new corporation will have no
funded debt. it being proposed to re-
tire the outstanding $1S9.O0o bonds of
the corporation. the original issue OF
which was 100000. 1t is probable
that some of the bondholders have ac-
cepted the per cent preferred stock.
for their bonds.
From a circular issued by brokerage
and banking concerns some interest
ing facts as to the operation of the
Chaplin Sacks Manufacturing Com
pany are available. The net earn
ingS after taxes in 1919 were $421.-
1888. while the taxes were $l53,05O
that is. the federal assessments
The corporation is pledged to main
tain net assets to twice the value of
the outstanding preferred stock and
net quick assets TO at least so per
cent of the par value OF preferred
& I'm ,.e.t,
can be paid on common stock until
provisions have been made for the
distribution on the preferred shares
After February l. 1929. the company
must redeem . per cent Of the first
preferred stock at 1Oo and may retire
by notice at ITO after that time.
With this financing completed the
company will net assets of 1927 per
snare and quick assets Of $40 a share
Of this issue.
The balance sheet showed that the
company had on December 81. 1919,
sl.659.994 on hand in cash and 1885,
9s7 in liberties and war savings
stamps with surplus Of s4.9122S2
1raphophone Rights.
Columbia Graphophone rights to
subscribe to 20 per cent of the hold :
stock TO be issued at 271s a share,
close at the close Of business May 3.
The company will not issue stock
on fractional rights. but said frac-
tional rights may be deposited be-
fore May 10. with other fractional
America in New York, on which full
shares will be issued in even shares
The new stock is to be issued May
II. Rights sold at $3.50 a share today
or on the basis of $40 a share.
Today's Local Market.
Today's local stock market was en-
tirely neglected. other than the sale
of few Graphophone rights" at az
few shares Of Washington Gas also
sold.
Bid and asked prices showed few.
II any. important changes.
Executive Council Meeting.
4 Pinehurst IN. c. dispatch an
nounces the arrival this morning Of
eighteen Pullmans with the execu-
tive council of the American Bank
ers Association on hoard for the
spring meeting of this important
body.
Washington was represented by
Charles j. Bell. II. II. Mckee, B. f.
Saul and Maj. Fred W. Hyde, secre-
tary of the national bank section of
the association.
A little golf will be played for
recreation.
AhAfy1iB Oh Last statement
The controller of the currency, in
analyzing the reports Of the national
banks in response to his call for
February %. attracts attention to
the reduction in government deposits
as one of the main reasons for the
heavy decrease in deposits between
February % and December 81, 1919.
Government deposits were drawn
dow very closely. from $44S.S63.0OO
December 81 to $67.914.000 in 1920.
but the next report will show that
the rest of the millions also have
been drawn out under the stimulus
of the governments urgent need.
Total resources in the last state
ment were off $S4S $4,000. but at that
they showed an increase Of S1.S44.-
ESQ. 900. as compared with the near
est statement to the same date of
1919, to wit. MARCH, 4. 1919.
The leading cities showed the loss
in deposits. as government deposits
were drawn down in each. Central
states generally showed gains. In
tn" yearly comparison government
$1.227.296.0 900. and the next call will
show further decrease.
Liberty bonds were taken out of
banks to the amount of ST6.249. 900
between December 81. 1919. and Feb
ruary IS, and victory notes to the
amount of $37.313 while government
certificates showed a reduction of
$4.24S.0O0 in the same comparison
Surplus and undivided profits in
creased S50.527 900 between Decem-
Der 81. 1919. and February IS. 1920.