The Washington times., 1924-10-21
BANKERS OFFER
SILK CO.
BONDS
New $4,000, 900 Issue Of S
Per Cent Gold Bonds of
Cheney Bros. on Sale

NEW YORK, Oct. 21-rhe
Bankers Trust Company and
Brown Bros. & Co.. are offering
a new issue Of $4,000, 900 Cheney
Bros. per cent serial gold bonds,
to be dated November /, 1924, and
to mature 100000 annually each
November /, 1925 to 1884, inclusive.
Cheney Bros. Is the oldest and
one of the largest silk manufac-
turers In the United States The
present company was incorporated
in Connecticut in 1854 and re-
presents the steady and successful
growth Of business originally
established more than eighty-five
years ago. The company manu-
features a wide range of silk yarns
and fabrics. The company's plants,
which are at South Manchester,
Conn.,, are modern in every respect
and completely equipped.
These bonds will be a direct OBJ
legation Of Cheney Brothers and
will constitute the only funded debt
Of the company. They will be is-
sued under an indenture to be dated
November /, 1924, which viii pro-
vide in substance, among other
covenants that so long as any Of
these bonds are outstanding the
company will not mortgage or
pledge any real or personal prop
erty now owned or hereafter &C.
Quired. This covenant will not pre-
vent purchase money liens on prop
erty hereafter acquired or the pledg-
ing Of personal property for borrow.
ings incurred in the usual course
of business and maturing not later
than nnn war from fhof date
The company will not pay divi-
dends upon its capital stock now
outstanding or subsequently issued
Tor purchase or redeem any OF its
stock or make any distribution of
its assets to stockholders), If after
such payment, purchase or distribu.
ton it's net quick assets, as defined
In the indenture, shall amount to
less than $50 per cent Of the total
amount Of bonds at that time out
standing.
Net earnings applicable to in
terest charges for the ten and q
quarter years period from Septem-
Der 80, 1918, averaged $1,959,000 an
nually, as against the maximum In.
terest requirement on this issue OF
$250,0O0 Notwithstanding the gen.
eral curtailment in the silk indus
try, it is estimated that net earn.
lngs applicable to interest charges
for the full year 1924 win exceed
81, 900, 900.
The bonds are to be offered at
prices to yield from 4 per cent to
SIS per cent, according to maturity.
Halsey, Stuart & Co., Inc, are Of
fering $2,500,000 Calumet Gas &
Electric Co. first and refunding
mortgage s per cent gold bonds,
series A, due October /, 1854, at a
price of 81 and interest, yielding
more than $40 per cent, The Calu-
met Gas &. Electric Co. now owns.
or is acQuiringI public utility
properties employed principally in
the production and sale of electricity
and gas for light, heat and power.
After acquisition Of new properties,
the company will serve directly
sixty-three Indiana communities
sixty one with electricity and two
with gas. For the calendar year
ended December 81, 1923, consoli.
dated gross earnings were 81 ,0S2 ,290.
Net earnings during the same
period before depreciation were
$359,293, as compared with the
annual interest requirements on the
company's total funded debt after
this financing Of $4,000. The
company's outstanding capital stock
is owned or controlled by the Mid
land Utilities Co., of which Samuel
insult is president.