Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-15
REPORT ON PRESS
BUILDING IS MADE
John Hays Hammond De.
cIares Project Is Show
ing Progress.

John Jays Hammond, president o.
! the National Press Building Corporation
| has Just made his annual report to the
bond and stock holders, in which III
| states that the present financial situa-
ton regarding the big project Is salts
factory. The corporation Is meeting
its bond interest and expects to show
| a steady increase in income during the
present year. Mr.. Hammond says il
would be possible to pay dividends on
the preferred stock from unearned
surplus, but does not think such q
course would be wise either for the
corporation or for the stockholders. He
favors deferring payment of such in
terest until it is actually earned.
Mr.. Hammond discusses the re-
financing made necessary by the addl-
ton of the three upper stories to the
building after the rest OF it had been
nearly constructed.
Present Status.
Speaking of the corporations pres
ent financial structure, he says:
Under the refinancing the corpora
ton now has outstanding first mort
gage of S6,25O,0O0 at 5l2 per cent, a
second mortgage of $2,200,000 at 612
per cent and unsecured notes due in
four years in the amount OF S20O,0OO
at 6 per cent. This financing and cur
rent income from the building enabled
the corporation during the year 1928
to retire the balances due on the OLD
third and fourth mortgages, to pay all
of its outstanding obligations, both upon
the original building and the three
extra stories and its current liked ana
operating expenses, with the exception
-1,,,o con mn IF h,ii1dinu and pnllin-
ment costs. which are still in dispute.
Against this $4,000 disputed indebted
ness the corporation now has in bank
a surplus of approximately $51 900. The
corporation met all of its interest and
other charges on its new first and sec
ond mortgage bonds and unsecured
notes on October IS, 1928, and will be
m position to meet all such charges
on April Is, 1929, as well as to pay in
the meantime all of its taxes and op-
Grating charges.
1.-THE total amount of per cent
cumulative preferred stock now out
standing is $1,211 ,300-$200,000 OF
which was sold and the proceeds de-
posted under the original financial
plan of 1925, and the balance Of ST.
oil 800 was applied toward the retire.
ment of the third and fourth mort
cages and for the extra construction"
Mr.. Hammond reports that on jan
uary /, 1929, gross income based upon
signed leases was approximately $29,00O
a year below fixed charges on bonds
and notes, taxes and operating ex-
penses. The opinion is then expressed
that the remaining space can be grad
ually rented and economies made which
will increase income by about $136,0OO,
+l~orol,xy x;v,iy,rv <,1yf tf,o onoroffn0 deficit
and leaving cash surplus.
The theater has been making rea-
sonable and gradual progress, Mr.. Ham,
mond adds, and no difficulty has been
experienced in the receipt of the stated
rental therefrom. OF the 997 offices
in the building only 81 remain vacant.
The ground floor store and commercial
space Is all occupied with the exception
of what Is known as the corner store,
which Is being held for a rental of
$50. 600. and two smaller stores on the
Fourteenth street side Of the building.
Seeks Greater Revenues.
President Hammond does not believe
the Government will give up its pres
ent space at the expiration of three
years, as the new buildings are not
likely to be ready by that time. BY
making every effort to increase rev.
enues and at the same time reduce ex-
penses the corporation would, within
a reasonable period, be able to COM
mence payment of dividends on the
preferred stock, these dividends being
cumulative.
In conclusion he urges the officers,
directors and members of the Press
Club to help rent the remaining space
Ito such an extent as to create a cash
surplus over and above our present
small operating deficit"