Indianapolis Times, Indianapolis, Marion County, 15 May 1940 — Page 15
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WEDNESDAY, MAY 15, 1040 THE INDIANAPOLIS TIMES
HOGS 50 CENTS | Civic 'Face-Lifting’ Drive Will Be Launched Tomorrow [AUBURN PERMITTED
LOWER HERE IN | 7 ici! AA y | TO ISSUE STOCKS WARY TRADING L
ing Corp. yesterday received permisTop Price Skids to’ $5.65;
sion to issue 25,000 shares of preferred stock at $50 a share and publicly today by Morgan Stanley Ind & Mich Ind Bearishness Pervades Cattle Market.
500,000 shares of common stock at Goh Sere 3 chao & Co., Inc., and 112 associated un no par value, Ind Hydro Elec 7% pfd "| derwriters. Permission was granted when the | Indpls PRL som 19° 33 | The loan matures semi-annually company filed articles of Incorpora. | Indbis H&L 8% pte from Nov. 1, 19040 to May 1, 1955 tion at the office of James M.| Inapis Water 47 ° and was priced to yield fram 0.375 Tucker, secretary of state. Lincoln Nat, Lite to 2.65 per cent, according to maThe filing yesterday is part of |N In turity. reorganization under section 77-B Net proceeds of the sale will be Extreme cautiousness pervaded the hog trade at Indianapolis today as the result of a previous break in other markets resulting from war cevelopments, the Agricultural Marketing Service reported. Killers were apparently willing to absorb supplies only at sharp price
iis 15 U, S. STEEL CORP. ISSUE IS OFFERED
NEW YORK, May 18 (U. P).— ‘|A new $75,000,000 debenture issue or U. S. Steel Corp. was offered
The following Juotasions by the Indianapolis Bond & Share Corp. do not represent actual price offerings, but merely indicate the nugroxiinate market level based on buying and selling quotations of recent transactions. 8 Bid As Agents Finance Corp Belt RR & Stk Y Belt RR & Stk Yds n Cent Ind Pow 77 pfd Hook Drug Inc com ........., 13 Home T&T Ft agme 7% pid. 50% Ind Asso Tel Co § ptd 10
tocks i
Van Camp Milk pfd Van Camp Milk com
Bonds
American Loan 5s 51 American Loan 5s 46 | Citizens Ind Tel 4'2s 61
A ; WN : a
The building at Illinois and Ohio Sts. . . . before remodeling. Redesigned by Pierre & Wright . . . now an attractive business corner.
i Progress Laundry com and Ohapter X of the Federal up's : $74,062,500, equivalent to a price of Bankruptcy laws, of the Auburn | oJ 98%. ‘This amount, plus cash of [Suiomchile OU. + MSh operates al, $24,559,617 will be used to redeem Under the plan merchandise cred- Sree on sy i Rui, Jo5:140,4 itors and note holders would receive poration’s 10-year 3% per cent de= bentures due June 1, 1948. The reductions and at Indianapolis a full half dollar was removed from all weights. The top dropped to $5.65 for 220 to 230-pounders. Packing sows had a 25-cent loss. Cattle trade was not exempt from the bearishness and uncertainty was
$200 in cash on each $1000 claim | Aue prefersey Sink Joally Mn 3%s of 1948 will be redeemed at noted in other classes of livestock. Early sales were the best today as
and common stock valued at $5 some buyers needed a few cattle to
“fill out” and provided steady prices, especially on light yearlings and heifers which later dragged at 15 to 25 cents lower. Steers were weak to 95 cents off, cows mostly steady, sausage bulls about steady and vealers barely steady.
Top Repts. May 10082 13 .. 6933 14 1300 1%
May 9 ...8 3% 1 i 600 :
6.13 Barrows and Gilts | 120- 100.8 4.25- ! 160 4.73- 3.3
Top Repts. $ 62% 10.33 . 8B. 920 8.15 10.280 Packing Sows 250- 300 § 5.00- 5.1 0- 330 500- 8.1 - 360 4.95- 5.0
3 v 4.951% 4.65 ! 4.50. 45° - 5.40/ 250- 500 , 4.25- 4.90 ; 360. Slaughter Pigs Medium-— Medium and Good— 160- 200. 4.75- 5.40, 90- 120 , 3.75 4.3 Slaughter Cattle & Vealers (Receipts, 934)
330- 360.
Choice-— | Bulls 750- 000 $10.50-11.50(Vearlings cxeluded) 800-1100. 10.50-11.75 Good ....$ 6.50- 7.0 10.50-11.75 Sausage... 6.00- 6.50 . 10.75-11.50 Medium... 5.50- 6.00 00. 9.50-10.50 Cutter and 500-11 5.10.20] common. 5.50- 6.25 1100-1300. Vealers 1300-1500 Good Medium — T 00
190-1 1100-1300 Common 750-1100
285 Good and | choice .. 10.50-11.50 Common and 8.50- 9.50 medium 7.50-10.50 | 8.50- 9.00 cull 6.00- 7.50! | Feeder, Stocker 8.50- 9.50 Cattle, Calves | (Receipts, 632) Steers, Heifers ers
oe 900- 800. . 10.00-10.75. 800-1050. . Good — 9.25-10.00 500- 800 $00-1050. . Medium— | 500-1000. . Common —= 500- $00.
Choice— 500. 750.
Good500- 750
Heifers Choice--150- 900
$.50-10.50 | 9.50-10.50 |
8.50- 9.501 8.25- 9.50
8.00- 8.78}
9 ,e 9.00- 8.28 9.25- 8.75, Calves {§teers) 9 ox GGOOd an Noice— 8.25- 9.25 S00" down vw 50. 8.7% Medium — 7.50- 8.75 "500 down _ 8.50-10.00| Calves (heifers) | % 75 Good-- | 675 500 down 9.00-11.00 | 500 down 9.00-11.00 25- 6.25 Medium-— 5- 5.50 500 down LAMBS (Receipts, 190) ambs (shorn) Good and choice ..$ 9.50- 9.95 Medium and good 8 50- 9.25 7.50- 8.25
common ..$ 4.00- 5.00/ 2.95- 4.00
Good -- 750- 900
500- 900 Common-— 500- 900
Ewes (wooled) Good and choice .
Upturn, Col.
CLEVELAND, May 15 (U. P).— Developments in the highlymechanized warfare of Europe should lead to an upturn in busi ness activity in this country, Col. Leonard P. Ayres, vice president df the Cleveland Trust Co, said today
in his monthly business review, “The campaign in Norway has conclusively demonstrated t Ww o | things about modern warfare which have a direct bearing on industrial { prospects in this country,” the [Cleveland economist said. “One of them is that large numbers of airplanes of varied types now are completely essential in open field fighting. “The other is that field forces must be supplied liberally with motorized equipment.” Col. Ayres said that it now seems “wholly probable” that increased orders for both aircraft and land vehicles will be placed in this country. “These prospects indicate that our already over-speeded machine tool industry will be called upon for still greater expansions,” he| said, Col. Ayres said that the trend now of manufacturers in this country is to maintain the inventorise hurriedly built up last autumn when hostilities began. “They fear price advances and
while some of these have developed since the war became more active!
War Should Bring Business
Ayres Predicts
ing sentiment regarding business prospects as the time for Presidential nominations approached,” he said, “and that atitudes usually have become more confident after the nominations have been made.” Col. Ayres cited “great increases” in the production of gold, and said that the most important reason for this is that the United States Government pays $35 an ounce for the metal, “Another reason is the continua-
tion of the great depression over |
large areas of the world.” “Gold holdings still are the most
| important single factor in the pro- tion along
grams of national defense of nations which fear they may become involved in war,” he said.
N. A. M. AID BELIEVES U.S. GAN AVOID WA
There is no reason why the United States should become involved in the European War, William B. Warner, chairman of the finance committee of the
here today. Speaking at a conference of na-
tional association officers with members of the Indiana Manufacturers’ Association at the Columbia Club,
National Association of Manufacturers said
MODERNIZATION PROGRAM GOAL
Housing Group Seeks Survey of Downtown Area For Remodeling.
A campaign to “lift the face of Indianapolis” will be launched by the Construction League of Indianapolis at a luncheon meeting in the | Hotel Lincoln tomorrow,
| The program seeks to establish the need for downtown moderniza-
uniform architectural (lines and to replace out-moded structures with new fronts tied together with a more or less common design. The program also calls for a survey of the downtown area to result in recommendations for needed improvements. Invited to attend tomorrow's meeting are officials of the Chamber of Commerce, Apartment Owners Association, Real Estate Board, Building Owners and Managers Association, Home Builders Association, Merchants Association, Indiana Engineering Council, Associated Employers of Indiana and the Electric League of Indianapolis, Housing Leader to Speak
Governor M. Clifford Townsend
10.00-12.00/ and others are in prospect, they he said, however, that the United and Mayor Reginald H. Sullivan
have not as yet become either num- States is certain to be adversely af- also have been invited.
erous or serious,” he said. The Cleveland economist cited the average trend of election years in |
should expect a business upturn. “There generally ameng businessmen during
somewhat of a cautious and hesitat-!
fected by the upsets which follow the conflict. The purposes of the conference,
has prevailed derstanding for private enterprise” a number of Midwestern cities. ] the were outlined by Hcward Coonley, is to explain the need of such an |election years of the past century chairman of the national associa-|operation here and outline method
tion.
mmon and medium .. < | — a
200,000 MILES
In 1940
will be more popular than e
to-date maps and logs of over 500,000
traveling and vaca. tioning in America
ver before. Uping Bureau.
to-the-minute information on road conditions assure pleasant journeys for motor. ists routed by Michigan Mutual's Tour-
Speaker at the meeting will be F. T. Brown, chairman of the better {housing committee of the Missouri
+50. 9.00 the past as another reason why we part of the national association's State Chamber of Commerce and [campaign for “mobilization for un-|author of “face-lifting” programs in
He
of procedure. Local architects will {show “before and after” pictures of local modernization activities. Mr. Brown says that in com{munities where the program has been tried it has resulted in put{ting idle dollars to work, employ(ing skilled and unskilled labor, creating new business for factories, |mills and merchants, increasing real lestate values, filling vacant stores land offices and creating a new sense of town loyalty. He says it jusually means a building revival | throughout the city and enables (boys and girls to find jobs and careers at home and puts an end |“to the waste that accompanies the shifting of population in the larger cities.” Committees Proposed
ROONEY NAMED CONTROLLER |?
NEW YORK, May 15 (U. P.).— | would receive one new share of Ind Tel 87% SETA John J. Rooney has been appointed common stock for each 10 shares A
controller of the American Bankers 9
i . b " | Grabbs_Reynolds Taylor 5s 42. er share to make up the balance. Home T&T Pt. Wayne 512% . | Home T. “% ve Also under the plan stockholders Ina" asses Ter cuiyne 6% 4
pn
ROOD =. -.o—- -
| Indpls Heine vy Indpls Railway Inc 57% 67.... Indpls Water Co 3'27% 66.... Interstate T&T 5'29% 53 .. Kokomo Water Works 5%
f the old common stock.
Assocjation, Dr. Harold Stonier, the Association's executive manager, announced today. Mr. Rooney has served as auditor of the Association for the last 12 years,
Kuhner Packing Co 4'2% Morris 5&10 Stores 5%
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ADDITIONAL FINANCIAL NEWS, PAGE 19
PON IPO ON DORN =e WIWOD
Pub Tel Co 4!
2% 87 Trac-Term Corp 5% 57
103 and accrued interest. The issue is callable as a whole, ‘|or in ‘any one or more Series, on 30 days’ notice if redeemed on other than an interest-payment date. The redemption price will be equal to par, plus a premium of 8/100ths of 1 per cent for each 6 months, or fraction thereof, from the date of redemption to the in-terest-payment date next preceding the regular maturity date.
Dated May 1, 1940
CAPITALIZATION Long Term Debt:
Ten Year 3,
Preferred stock
RBARNINGS
Other funded debt Funded and long term debt of subsidiaries consolidated... Subsidiaries’ stocks not held by Corporation. .............. FORE STEER E Sr sr sr ree Capital Stock of Corporation:
This is not an Offering Prospectus. The offer of these Debentures is made only by means of the Offering Prospectus, and such offer will be made by the undersigned in this State only to registered dealers in securities in this
This issue, though registered, is not approved or disapproved by the Securities and Exchange Commission,
which does not pass on the merits of any registered securities,
$75,000,000
United States Steel Corporation
Serial Debentures
Due $2,500,000 Semi-Annually November 1, 19/0 to May 1, 1958
Interest payable May 1 and November 1
Coupon Debentures in denomination of $1,000, registerable as to principal.
Redeemable at any time at the option of the Corporation as a whole, or any one or more series as a whole, on any interest date on 30 days’ notice, or on any other date on 60 days’ notice, at the principal amount and accrued interest, plus 8/100% of the principal amount for each six months or fraction thereof from the date fixed for redemption to the interest payment date next preceding the date of maturity.
The following is merely a brief outline, prepared by the Corporation, of certain information containeas in the Offering Prospectus and is subject to the more detailed statements in the Offering Prospectus and the Registration Statement, which include important information not outlined or indicated herein. The Offering Prospectus, which must be furnished to each purchaser, should be read prior to any purchase of these Debentures.
THE CORPORATION The Corporation, incorporated in New Jersey in 1901, is a holding company owning a controlling stock interest in various subsidiaries which principally conduct integrated operations for the production and sale in competitive markets of a wide variety of finished and semi-finished steel products. Collectively the subsidiaries constitute the largest domestic producer of steel. Operations include the production of most of the coal, substantially all of the iron ore, limestone and coke, and part of certain other raw materials used by the subsidiaries. Steel products (other than rails) and cement are generally quoted for delivery at place of destination. The Federal Trade Commission has severely criticized the delivered price method of selling steel products, recommending that it be supplanted by sales I. 0. b. manufacturer’s mill, and has attacked the delivered price method of sale of cement in a pending legal proceeding. The Corporation and certain subsidiaries own all of the capital stock of 15 common carrier railroads which operate approximately 1,266 miles of road. These railroads are important by reason of the transportation facilities made available to the subsidiaries and the dividends received from the large investments therein. The properties of the subsidiaries consist principally of iron and steel manufacturing properties, coke plants, rail and water transportation properties, and owned and leased iron ore and coal properties. The plants and facilities vary in age and operating efficiency. Substantial expenditures may be required during the next few years to replace or rebuild various plants and facilities.
(The Corporation and Subsidiaries== Consolidated)
Funded debt of Corporation
% Debentures, due June 1, 1948. ....
Cs sss sestene
, 7% cumulative, par value $100 (3,602,811 shares)
The following condensed income statement has been summarized from the Offering Prospectus and should be read in conjunction with the Condensed Consolidated Income Statement and Condensed Statement of Consolidated Earned Surplus for the years 1930-1939 and the other financial statements and related
PPP NRNNRENENINNNINRRRRBNRIRNINNES
ce gs IR a esses ssssnsenene
Common stock, without par value, stated capital $75 (8,703,252 shares). ....ooovseeeeceed tIncludes $60,186,698 guaranteed by the Corporation, less $114,000 in treasury.
tates
Outstanding as of December 31, 1939 $ 97,581,500 273,000 148,207,088% 5,285,119
360,281,100 652,743,900
miles of roads are available in notes appearing therein, particularly as to the adjustments at December 31, 1935 aggregating $270,000,000 for
Michigan Mutual's complete Touring Bureau to serve in planning motoring trips for Company policyholders.
Friendly advice from competent touring experts, the finest road maps obtainable, and authentic up-
Non-Assessable Participating
FOUNDED 193123
A Blue Ribbon policy is the National Standard automobile policy with Driver Compensation, Passenger Accident Insurance, Road Service, and other features if desired. Thousands of drivers are turning to this extra value policy and saving money. Call or write
MICHIGAN MUTUAL LIABILITY COMPANY
» - 501 Circle .>wer
Lincoln 2348
Workmen's Compensation» Automobile « Group Accident and Health « General Casualty Lines
MEMBER AMERICAN MUTUAL ALLIANCE
From Maine to California...
Nand
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3
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3
West 16th Street Near *
“\._§ SPEEDWAY CITY
TENS of THOUSANDS of cars and trucks, big ones and little ones, fast ones and slow ones, heavy ones and light ones, from every state in the Union, Canada and Mexico, too, will pass over this famous street during the month of May, and will find the same smooth, safe, unchanging surface as the race drivers know on the Speedway itself, because it’s . . « KENTUCKY ROCK ASPHALT.
When you drive OFF ordinary pavement on to KENTUCKY ROCK ASPHALT—you’ll notice the instant cessation of “road rumble,” because it does not creep or crack. That is why for finer, safer highways of tomorrow the trend today is to KENTUCKY ROCK ASPHALT!
KENTUCKY ROCK ASPHALT
AND SPO}
NSTITUTE
LaF.
The method expected to be proposed by the Construction League will call for establishment of a voluntary planning committee of public-spirited men and women, divided into several subcommittees for traffic-ways, parking areas and rehabilitation. The downtown section may be divided into 12 areas, each of them with 24 workers and a chairman. Under this plan the workers would be supplied with questionnaires for obtaining information from tenants and property owners on the condition of vacant lots, open-air business and unoccupied buildings. The chairman would condense the information and make recommendations and suggestions for future development in co-0p-eration with a consulting archi{tect for each district. The archi[tects would all be from the American Institute of Architects chap|ter here.
PLUMBERS SUPPLY
PURCHASES BUILDING
The Plumbers Supply Corp. 2105
: |Martindale Ave. will move in about : |six weeks into the building it pur-
chased at 11th St. and Cornell Ave.
; formerly occupied by the Stephen-
son Gear Co. | The firm, organized 10 years ago, (handles plumbing and heating ma-
{ |terials for wholesale trade and sup- } | plies pipe, valves, fittings and other : |Industrial supplies to factories here
and nearby. Negotiators in the sale were {Charles W. Mason of the Bankers | Matec Co. real estate department; Malcolm Lucas of the bank's trust |department; BE. H. Kingston, man-
. |ager of the Plumbers Supply Corp., ; {and Gideon W. Blain, corporation
attorney.
LEAGUE URGES UNITY IN SELF-RULE DRIVE
Times Special
BLOOMINGTON, Ind. May 15.— Unification of all activities working toward American self-government today had been resolved by the National Municipal League. The conference on American selfgovernment, sponsored by the League, concluded its two-day meeting at Indiana University yesterday by urging national organizations and educational institutions to use the League as a “clearing house of information” in the self-govern-ment field. The resolution said most of the work directed to self-government improvement was “desultory, unsystematic and disconnected.” It charged that, “with a few exceptions,” the work of initiating young people into the responsibilities of citizenship had been neglected. It urged that representative of universities, colleges and other education groups co-operate with civic groups under the general sponsorship of the National Municipal
Year —
1931 1932
Income or low after taxes and before special income, depreciation, depletion and interest
1930 $57,710,232
Special income and net adjustments of various accounts
$10,901,556 19,341,659 124,016
46,484,000 25,666,466
increased reserves for depreciation and obsolescence which were charged to a special earned surplus account segregated prior to 1930. No allocation can be made of the portion of such $270,000,000 which applies to the years 1930-1935 and which would reduce net income for these years. All of the financial statements referred to in the foregoing have been reviewed by Messrs. Price, Waterhouse & Cu., independent public accountants.
Interest and emortisation of debt discount $5,640,097 5,469,624 6,313,461
Depreciation and depletion $58,650,120 47,317,894 40,319,794
Net income or loss
for year $104,421,5671 13,038,141 71,175,705®
1933 1934 2 1935 1936 1937 1938 1939
* Loss.
PURPOSE OF ISSUE
UNDRRWRITING
Maturities
May 1, 1941.... Nov. 1, 1941.... May 1, 1942. ... Novo. 1, 1942. ... May 1, 1943....1.00 Nov. I, 1943... May 1, 1944...
50
75
1.25
Dated May 15, 19/0.
10,912,418 53,907,877 110,968,550 158,929,876
49,077,714 111,092,782
Interest Rates
Noo. 1, 1940. ... 375% 625 875
A.125
DEBENTURES. THIS STATEMENT IS
1,335,411 92,114
43,684,499 44,579,309 47,801,389 655,466,762 59,689,159 48,632,841 60,659,917
5,164,453 5,051,052 4,959,780 4,918,431 5,141,088 8,262,327 9,312,931
7,870,467
744,729
During the quarter ended March 31, 1940 the consolidated net income was $17,113,995 after providing $15,293,594 for depreciation and depletion.
The net proceeds from the sale of these Debentures (estimated at $73,812,500 after deducting expenses) are to be used, in conjunction with approximately $24,559,617 of the cash funds of the Corporation, to redeem or retire on or before July 15, 1940, at 103% of the principal amount thereof, plus interest accrued to July 15, 1940, $95,140,000 principal amount of the Corporation’s Ten Year 3!/4% Debentures, due June 1 1948. The aggregate amount required for such purpose will be $98,372,117. The remainder of the Ten Year 3% Debentures outstanding in the principal amount of $2,441,500 will have been called for redemption on or prior to June 1, 1940, funds therefor being on deposit in the Sinking Fund.
DEBENTURES The Debentures are unsecured and are to be issued under an Indenture dated as of May 1, 1940, between the Corporation and The First National Bank of the City of New York, as Trustee. No additional Debentures may be issued under the Indenture. Other indebtedness may be incurred by the Corporation or any subsidiary. With certain exceptions the Indenture provisions may be modified with the consent of holders of not less than 6624 % of outstanding Debentures.
Subject to certain terms and conditions, the Underwriters, including the undersigned and the others namea in the Offering Prospectus, ave severally agreed to purchase the Debentures from the Corporation at 983%, %, or a total or $74,062,500, and accrued interest. Such Debentures are to be offered to the public at 100%, or a total of $75,000,000, and accrued interest. The underwriting discounts are 114%, or a total of $937,500. Payment for and delivery of the Debentures are to be made on May 21, 1940, but may be postponed to not later than Maw 31, 1940.
Due Semi-Annually in Amounts of $2,500,000 Interest Maturities Rates May 1, 1948. ...1.95% Nov. 1, 1948. ...2.00 May 1, 1949. ...2.05 Nov. 1, 1949. ...2.10 May 1, 1950....2.15 Noo. 1, 1950. ...2.20 May 1, 1951....2.25
Interest Maturities Rates
Nov. 1, 1944. ...1.375% May 1, 1945....1.50 Nov. 1, 1945. ...1.625 May 1, 1946. ...1.75 Nov. 1, 1946. ...1.80 May 1, 1947. ...1.85 Nov. 1, 1947. ...1.90
Price 100% and Accrued Interest for All Maturities
The Underwriters have agreed to purchase these Debentures when, as and if issued, and subjeco to the approval of Messrs. White & Case and of Messrs. Davis Polk Wardwell Gardiner & Reed, counsel for the Underwriters, and to certain further conditions. It is expected that delivery of Debentures in temporary form, exchangeable for definitive Debentures when prepared, will be made at the office of J.P. Morgan & Co. Incorporated on or about May 21, 19/0, against payment therefor in New York funds.
TO FACILITATE THE OFFERING, IT IS INTENDED TO STABILIZE THE PRICES OF THESE NOT AN ASSURANCE THAT THE PRICES OF THE ABOVE SECURITIES WILL BE STABILIZED OR THAT THE STABILIZING, IF COMMENCED, MAY NOT BE DISCONTINUED AT ANY TIME.
Further information, particularly financial statements, is contained in the Registration Statement on file with the Securities and Exchange Commission, and in the Offering Prospectus which must be furnished to each purchaser and is obtainable from the undersigned, who, however, will offer these Debentures
in this State only to registered dealers in securities in this State.
MORGAN STANLEY & CO.
Incorporated
86,501,123 21,667,780° 1,146,708 50,583,357 94,944,358 7,717,454° 41,119,934
Interest Maturities Rates Nov. 1, 1951. ...2.30% May 1, 1952. ...2.35
Nov. 1, 1952....2.40 May 1, 1953....2.45 Nov. 1, 1953. ...2.60 May 1, 1954....2.58 Nov. 1, 1954. ...2.60 May 1, 1955....2.65
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