South Bend News-Times, Volume 37, Number 111, South Bend, St. Joseph County, 20 April 1920 — Page 4

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As soon as a savings investment is undertaken, immediately a strong incentive is created

may be accomplished without curtailing accustomed comforts.

South Bend People are Buying The great number of South Bend people who have already taken advantage of the splendid investment opportunity created by the offering of the Indiana & Michigan Electric Company of its 7 Cumulative Preferred Stock have a two-fold benefit. First, they are forming the Savings and Thrift habits the oasis of every well-balanced, happy and contented life. Second, they are fired with an ambition to earn more in order that they may accomplish the saving without sacrificing the luxuries and comforts to which they are accustomed.

Gilt Edge

Start today to provide for tomorrow. Cultivate efficiency by forming the saving habit. Personal efficiency is always necessary to succeed, and it usually depends upon personal thrift. By purchasing some of our 7 Cumulated Preferred Stock, either on our cash or time payment plan, you will acquire a feeling of efficiency and independence that in actual dollars and cents will be worth a whole lot to you. If you have not already taken advantage of this investment, we urge that you give it your prompt and serious consideration. Here is an opportunity to insure sound investment by becoming a preferred stockholder in one of our most necessary and prosperous local enterprises a business backed by modern physical properties of great value, careful and progressive business management and a long record of dividend-paying success

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to increase earnings in order that the savings

Avoid Speculation men you purchase the 7 Cumulative Preferred Stock of the Indiana & Michigan Electric Company, you are making a "gilt-edge" investment. We refer to the investment as gilt-edge" because this business is open to the scrutiny of the Indiana Public Service Commission. This stock represents both actual ownership and a reasonably sure prospect of sustained returns far better than the rate of interest earned by the savings banks. Almost any desired material purpose can be accomplished by common sense planning plus wise investment. But be careful. Leave the speculative schemes to the person who-ean afford to lose money.

SoIM tovestment High taterest The issuance of this Cumulative Preferred Stock has been authorized by the Public Service Commission. It is exempt from Indiana State Personal Tax, and the dividends are free from Federal Income Tax. The very nature of this business prevents the extension of the customer ownership idea by the sale of stock on a speculative basis. This stock provides an equity investment, and you become in fact, a part owner in this business. Your preferred stock will be protected in the respect that dividends. must all be paid before the common stock can make a return. You will therefore clearly understand that preferred stock in this company represents a solid investment yielding dividends every quarter. Whenever a new house goes up in your neighborhood, or a new factory is started in town, it means more business for the I. & M. Electric Company. By investing your savings with this soundly managed utility company, you make an investment right at home that pays ä regular and certain income to you in the form of dividends. Possibly you have seen tables showing how fast money grows at 3 interest, if the interest is re-deposited and compounded. If a 3 annual return will accomplish striking results, consider what a steady income of 7 will do. The following table will serve as an illustraticn. TABLE This table shows what a $ 1 0 a month will amount to if invested in the preferred stock of this Company. Time You Pay in You Get Surplus 10 years $1200 $1718 $518 1 1 years 2 months $1340 $2000 $660 This table could be extended indefinitely, but this will serve to prove the mighty earning power of compound interest. When you buy the preferred stock of this company you have invested'your money in the business. The property and business back of this investment are permanent. ,

"Customer Ownership" represents a-willingness on the part of the utility companies to take the people into partnership and to share whatever profits there may be. With the aid of the partial payment plan it gives every worker who can save a dollar an opportunity to become a part owner o f the property and to receive a good return upon his investment, at the same time providing him a safe and absolutely sound investment in an enterprise which is serving and helping to build up his own community, and which he can have at all times under his personal observation. The opportunity that is given the people of ordinary means to purchase giltedged securities in small amounts, on the partial payment plan, in sound and growing public utility corporations in their own community is an unusual one, due to their high rate of interest and the unusual protection thrown around them, exemption from taxes, etc This stock, unlike the stock of most corporations, is issued and sold only after investigation and approval by the Public Service Commissions of the respective states. This procedure safe-guards the public against the issuance of unsound securities as well as protects them from excessive rates for the service which they render. While the state does not guarantee dividends, it takes every reasonable means to assure an adequate return on honestly invested money. Before making an investment one should know about the stability and earning power of the concern issuing the stock. In making an investment one should feel reasonably certain that the business will continue to prosper as it has in the past. In fact one should invest only with a business that is growing greater and more prosperous each day so as to insure profitable and worth-while return on the money invested.

Reasons for Offering Oils Stock Our business is to furnish electricity for light and power to the people and industries of the St .Joseph Valley. It is the purpose and aim of the Company to perform this duty and privilege faithfully and constantly and to fully meet every requirement of its customers. We believe you will agree that our service has been first-class in every respect and has in the past met every requirement that has been expected of it. During the preceding three cr four years, when many utilities have been forced to restrict their service, we have, as you know, been in position to supply all demands for electric energy and power made upon us. We have always maintained that the interests of the Company and of the people which we serve are identical, and in order to stimulate this mutual interest it has been decided to offer the 7 Preferred Cumulative Stock of the company to our customers and those interested in the upbuilding of the St. Joseph Valley. Under this arrangement the 7 f c Cumulative Preferred Stock of the Company can be purchased at $100.00 per share, payable either in cash or on time payments. Under this arrangement each purchaser of said 7o Cumulative Preferred Stock will be paid dividends quarterly at the rate of I on the first of January, April. July and October. Should you desire to purchase on time payments, which plan contemplates an initial payment of $10.00 per share and monthly payments of 10 per month thereafter, interest at the rate of dco per annum will be allowed on such monthly payments. Payment by the purchaser can be made in full at any time and the stock certificate will be delivered when the final payment is made. The reasons for offering this stock are two-fold: First, we desire as many of our customers as possible to become interested in the Company. Second, the tremendous growth of the territory and the resulting demand upon the company makes it necessary that we secure additional funds to take care of this increasing business. Those who have resided any length of time in the territory which we serve are familiar with the rapid and healthy growth of the property and are acquainted with the management and the owners, most of whom have been directly associated with the Company since its inception. The chief advantage of the Cumulative Preferred Stock plan is systematic aving plu a high rate of interest. Money invested today in Preferred Stock will have mighty big buying power when prices become normal. If you have not already become a preferred stockholder in this business you owe it to yourself to give it some very serious consideration right now!

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This Cumulative Preferred Stock for sale by following banks:

American Trust, South Bend. Union Trust, South Bend.

Citizens National, South Bend. Merchants iNational, South Bend.

North Side Trust and Savings, Mishawaka. Mishawaka Trust and Savings, Mishawaka.

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