South Bend News-Times, Volume 37, Number 102, South Bend, St. Joseph County, 11 April 1920 — Page 23

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THE SOUTH BEND NEWS-TIME;

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Many of our friends have from time to time desired the opportunity of in-esting their money with us or of starting a savings investment account.

The opportunity is now yours open to one and all.

We have decided to offer $700,000 of 7 percent Cumulative Preferred Stock in the Indiana and Michigan Electric Company on cash or time payments. We are sure that such a partnership will be to our mutual advantage. On our part we want as many of our friends as possible, financially interested in the company. On your part you will be securing an investment in one of St. Joseph Valley's strongest institutions a public utility that has a record of growth and soundness unequalled in this territory an absolutely safe investment.

Save and Invest Safely

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This Preferred Stock is one of the best opportunities for systematic saving and sound investing that you can find because 1 . It is issued by an old established Company with well demonstrated and an increasing earning capacity, with which most of the people to whom this offering is made are familiar. 2. Net revenues of the company available for dividends after deducting interest, amortization, taxes, operation, maintenance and making further provision for depreciation or replacement reserve, have at no time during the past ten years been less than three and one-fourth times the interest on the Preferred Stock and has with the increasing business of the company been as great as six times the amount required for these dividends. 3. Replacement value of the physical property is several million dollars in excess of the bonded indebtedness and this issue of Preferred Stock. 4. Exempt from all state, county and municipal taxes in the state of Indiana. Dividends not subject to federal normal income tax. 5. Stock is non-assessable and is authorized by the Public Service Commission of Indiana, and the Michigan Public Utility Commission after investigation of the operations ot the Company. 6. The stock is callable at any dividend period after I 923 at I 05 and accrued dividends. 7. No additional mortgage can be placed upon the property to take precedence over this preferred stock without the written consent of the preferred stockholders, as provided by law. 8. Dividends are cumulative and take precedence over those of the common stock.

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As you doubtless well know, our company does an electric lighting and power business either distributing directly or by wholesale through other companies in the following cities and towns in Indiana and Michigan:

South Bend Elkhart Mishawaka Ligonier Rolling Prairie LaPaz Lydick Lakeville Osceola Benton Harbor

St. Joseph Niles Buchanan Berrien Springs Eau Claire Lakeside Constantine Three Oaks New Buffalo Galien

Our company serves a population directly or indirectly of approximately 1 75,000. It has four developed water powers on the St. Joseph River located at Elkhart, Twin Branch, Buchanan and Berrien Springs, from which twothirds of the power is obtained, and a steam plant in South Bend. In addition to the above, the company has several undeveloped water powers. It now has the ability to supply a demand of approximately 37, 000. horse power. Our plants are electrically connected with duplicate transmission lines so that an accident at one plant, or on one transmission line, does not interrupt the service in the locality in which the plant is located. Our preferred stock possesses the essential features of a sound and desirable investment (not speculation). Its securities are upon property of great value serving an everyday necessity to a large population in a diversified and continually growing territory. Back of the Equity of the preferred stockholder is the common stock to the amount of $3,401,300.00 over which the preferred stock takes precedence both as to dividends and assets. The company operates in Indiana under an indeterminate permit granted by the State which protects the company against competition in its business in the territory which it serves. While by law public utilities are not permitted to earn excessive profits, which are regulated by the state through the supervision of a public service commission, they are on the other hand permitted to earn reasonable returns on their invested capital and are by reason of such supervision o fsaid public service commission permitted such rates as will render a fair return upon their investment. The state, through this commission inquires into the management of the business of public utilities, prescribes the method of accounting and operation, audits its books from time to .time and carefully scrutinizes the issuance of all its securities, giving to such securities a safety which the securities of ordinary industrial corporations do not always have.

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Test the strength of the Indiana & Michigan by the most exacting analysis and you will want to become a shareholder. When you purchase our cumulative preferred stock you are making a "gilt edge" investment be cause it does not consist of plunging or taking chances. As a partner in this company you are a part owner of power plants, pipe lines, conduits, pole lines, transformers, meters in brief, costly plants anchored to and built into the soil. The Indiana & Michigan Electric Co. can not be picked up and moved away. Furthermore, the business can not be devoted to any other purpose but must continue to serve electric energy to the thousands of homes and hundreds of factories located in the territory in which we operate. When times are good, many investments pay; when times are not so good, only the best can be relied on. Be sure your investments are selected for the lean years as well as for the years of plenty. The wise, discriminating investor does not invest for today only, but for tomorrow and for the days to come. The time payment plan makes it easy and convenient for every one of our friends to become part owners in this business and to share in the profits by receiving dividend checks four times a year. This is YOUR OPPORTUNITY the investment you have been looking for. Sign the coupon which is attached for your convenience. You Can Pay Cash or Buy on Installments Remember you can buy for cash or on installments. $ 1 00 per share on the payment plan ; $ I 0 per share to accompany subscription and $10 per share payable monthly. Accrued dividends from the last preceding dividend date to be added to the final payment. Not more than I 0 shares may be purchased by any person under the TIME OFFERING. Interest at the rate of 6' ' per annum will be allowed on all partial payments. Payment by the purchaser may be made in lull at any time. A stock certificate will be delivered to purchaser when final payment for stock is made. Just sign and mail the coupon to the Indiana S: Michigan Electric Company gladly will we answer any further questions you may have.

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Mail This to the Indiana Sc Michigan Eleclric Co.

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