Imperial Valley press., 1923-06-11
OFFER PREFERRED
STOCK TO HOLDERS
OF LOCAL BANK
Recognize Prior Right
Until July l on 3
Million Issue

Stockholders Of the First Nation
al Bank Of Los Angeles, the Pacific
Southwest Trust and Savings bank
and the First Securities company
are being advised by President Hen
~ NJ. Robinson of the organization
Of the Pacific Southwest Realty
company, and are being offered the
prior right until July l to subscribe
TO a total of $3,o00,000 G12 per cent
Cumulative preferred serial stock of
the Realty Company at 500 per
share.
The Pacific Southwest Realty
company has been incorporated for
the purpose Of purchasing from the
First National bank Of Los Angeles
and the Pacific Southwest Trust
and Savings bank the real estate
and buildings owned by these in
stitutions and utilized wholly or in
part in the conduct Of their bank
ing business. The acquisition of ad-
ditional property in the future suit
able for banking premises and the
constitution Of buildings thereon
will likewise be undertaken by the
Realty company, which after July
i, 1923, will own and manage all
properties.
Provides Nice Revenue
This plan provides for a lease OF
the banking premises to the Pacific
Southwest Trust and Savings bank
for an annual rental which, when
combined with the revenue which
NAV be obtained from other sources,
assures the payment of operating
costs, upkeep, maintenance, repairs,
insurance on the properties, etc, to-
getner with all interest and dlVl-
dend and amortization charges on
the securities TO be issued by the
Realty company. Under the terms OF
this lease all of the bonds and pre-
ferred stock to be issued by the
Realty company will he retired IN
serial maturlties over a period Of 80
years, thus providing a constantly
increasing equity for stockholders.
The entire common stock Of the
Pacific Southwest Realty company
win be owned and held by the First
Securities company.
Conservative Methods
In the issuance of its cumulative
preferred serial stock, the Really
Company agrees that the total
amount of preferred stock to be Is
sued shall not exceed 100 per cent
of the appraised value of the prop
erty purchased, and that the agSre-
gate indebtedness secured by mort
gara or deed of trust shall not eX-
ceed SO per cent OF the appraised
value of the property. 1t Is further
urovided that the total amount OF
preferred stock IT any time out
standing. together with. the total
outstanding bonded indebtedness
shall never combined exceed 100
per cent of the appraised value OF
The properties by which they are Sc
cured.
The banking premises owned or
held under contract by the banks
have been valued at approximately
$1,000. 900. An additional invest
ment IN such properties of $1,000
600 is contemplated within the near
future.
Provides for Issuance
Provision is made for the issu-
ance now by the Realty company OF
securities aggrqgating $6.0OO,00o dl-
vided equally between bonds and
stock. The $3,000,0Q0 first mort
gage 5114 per cent serial bonds have
been privately placed and will not
be offered to the public. \ total Of
$4,000, 900 612 cumulative preferred
serial stock will be offered at this
time to stockholders of the First
National institutions for prior sub
scription until July /, after which
date any amount unsubscribed may
be Offered to the public by lead
ing California Investment Banking
houses, who have underwritten the
entire 100000 preferred stock.