Exeter Advocate, 1912-1-18, Page 3MAKING SAFE INVESTMENTS
PUBLIC UTILITIES ;ftEAU IRE LARGE
ALLOWANCE FOR DEPf3ECIATIOR,
Otherwise, Danger of Serious.rFinanclai
Trouble The 'Canitalleed yelua of the
Franchise Must be Borne In f<ili
'What to Look for In 'balance Sheet --
Operating Eiponses Should `Include Do•
preciatlon—Net Creator Than 60 Per
Cont. of Cross Earnings,
Tian artidee oontrtbleted by 'Investor"
are for the sole nnrnece of trtiidinc pros.
O@ective inveetore, and, if possible of 'sae.
feig them from losing- money tL•reeerh
entwine it in "wileaoat" „uterprises... The
imtierttal end reliable character of t1s.
information may be relied upon. The
writer of these articles and the publisher
of this paper have no interests to serve
in oonneotton with this matter other than
those of the reader.
"Investor.")
hs a rule, the realestate of a public
service corporatfan is a small part of its
assets. The "plant" is the important
feature andin this the bondholder is
chiefty interested, as being the principal
saourity for his capital, I last" refers
to ewer, plant, rolling -stook. track and
general property, exclusive of real os•
tate, which was referred to last week,
The average investor buying old issues
of wall established companies has to take
the muses of the company's Waage
sheet for the value of the assets, Where
a new issue is being made. however, a
band Metres nenelly liar on examination
made by an indenendent engineer, The
"replacement value" of the plant alone
le considered, By "replacement values"
is meant the oust for which the plant
in its present state of. ea -Wiener may be
irecanstruated. If this post is in excess
of the amount of bonds outstanding, the
Security is a very excellent one, In
Canada, as a rule, the bond issue of a
public service corporation represents but
small proportion of the value of the
eorlipany's real estate and plant. In
lire 6tates, however, the ease is reversed,
and its a value onthe capitalized value
of the company's franchise depends part
of the security of the fonds,
The value of a franc/dee depends part.
ly and primarily on the political condi-
tions referred to last weak.After this
tiro next question is whether the tram
'ohise is perpetual, or, as in the case of
the Toronto Street Railway, for a deli-
nit° time; whether it is partial or ex•
elusive. and on, what terms it terminates.
The Toronto Street Railway franaliise
terriinatea in 1921, but, unless the city
decides to expropriate et that tlmothe
franchise automatically renews itself no.
til such: time, as the city boos expropri-
ate. It is oxolusiee only respecting the
portion of the city which was ineorpor-
cued within the boundaries of Toronto
in 1691, when the franchise was granted,
but any ear lines built by the city can-
not compete in a manner worth consid-
ering as affecting the value of the Street
Railway Company. So that while as
respecting the present boundaries of the
city the franchise is only partial it is
in effeot exclusive. And this case often
scours where the original franchise is
partial; the company occupies all ire.
portant available streets and there is
no room for competition.
The next step is the examination of the
company's earnings for a series of years.
Tho futility of examining the figures for
one year has been shown in speaking of
industrial bonds. If gross earnings are
increasing and not earnings are about
40 per cent to 45 per cont. of gross this
part of th`o examination need only be
concluded by a glance at operating ex.
ponees. A very substantial amount must
bo put by for renewels and mainten-
ance, or the strongest company will soon-
er or later find itself in trouble. As one
figEJR_o SGREAM FOR
HOURS WITH ECZE114
Baby Dreadful Sufferer, Could Not
Keep Him from Scratching. Every
flointAffected UsedCuticuraSoap
and Ointment; and He Is Wei1A
"Encleeed find my son's photo and I feefl
by writing these few lines to you I am onlyi
doing my duty, as my son was a dreadful
sufferer from eczema. At{
the age of two weeks he
began to get covered with',
red spots on his legs and'
groins, ''whish mother •
thought was red gum ori
thrush; but day by day
it grew worse until every'
'joint ,and crevice' were
affected and baby started
screaming.'for hours day
and :night, such a:�thing
as sleep'waB out.of,the
4a7 nestton. I took ':him to
two of Sydney's .baton doctors; One gni i
;era's One' tof,the•woint ee' o' d t
cat R -heel seen, the .
tither did not think itso seriouseone ordered
ointmentfor..rubbi 'inethe other a dusting
powder.. 1 follow' their 'prescriptions` or
efyer for monthe:end sidi baby kept gett ng
,-eferse,..orcould notknhianteem screech
=aogroat was,istm;oy.
'
Whenhie was five Menthe. old. I tried the;
' Cnticura Reresidlea,endL.1 a very thankful to
1�!!ay, haby is to=day free to all'bis sufrer-,
3ng. is groins were. bleeding when l started
fend of er parts affected were the lower -part)
r,�g his body, under the knees, arms; In arm,otnts, eyebrows' and neck but after twice
sing Guticura .Ointment 'f,began' to see al
slifterenee and by, the time I. bad used; one
'in, along with' -the 'bathin 'With' Cuticu
ieloi 'bab Was ne
P. y arl' •cures.,. , t'
Y
fatllkc too
• !u the'<
p
'pis Ctlticu
ra Soap a an "
zi t
Ola me t:
n an
d
avow, 'that.* goodness, co is qqu���ite well,
;.;and,
- Ithough he; a now;ten mo;i hs old lies•no
ad any;; further, return 'f1; r;'ti'otible.'
9
pf 8 '
6f sed -2 hire : ,•3. .
G. bfarti i ,
"int ht r Stye
�reslnevilie' ,9ydne
9,
Cutirura.-`Stlap•,:cud-, Oin4knoat �tl 6:'"`
;4broughout'the world, but all ,efaesem
Mich with, a 32 -page book o 'tlf'b�'ea
reatmentof the skin and ba uhlriAett3,
res on application to Potter'D%tf car
rp, to Calumbas sae ,-Bobitiu. l .B
leant
bond man says, "Deterioration. of: ,plant'
and equipment, which goes on constant-
ly, can only hp r offset in two ways:—
Ona' is out of earnings, and, the other
out, of the security : holders --that is, by
decreases in the market value of the.e •'
curities. Tlae first takes prosperity or
courage; the second leads to bank-
ruptcy," It is a difficult matter to men;
sure depreciation accurately, but a sae
rude.. is to write off 10 per cent. of gross
earnings each month for depreciation. In
this way the charge is proportionate ie
trail'ic, which provides autozpatio adjust-
ment.
11. -TEAR -OLD ROBBER..
Paris Police Arrest Small Boy For
Thirty -Third Robbery,
A bjt
b
ed in Poyarisof 11 fcihasr hiso 'thirty-eenarrethirst-d'
robbery with violence. Louis Leh -
run, with a. friend of his named
Edouard Lamarche, who is nine
years old, but has not been, in
prison yet, robbed the till of a
shop in the Rue de Belleville . of
$0,50, and shot the shop owner
through the neck with a revolver.
The younger boy escaped, but the
elder was caught, and the police
are wondering what to do with him.
for he has proved' himself as difficult
to hold behind bates and bolts as
Jack Sheppard himself.
He has been caught red-handed
33 times, including this _ last time.
but always manages to get out of
the hands of the authorities.
SOME CAlrl
But Student :Bail to Quit.
Some people are apparently im-
mune to tea. and coffee poisoning—
if you are not, Nature will tell you
so in the ailments she sends as
warnings. And when you get a
warning, heed it or you get hurt,
sure. A young college student
writes from New York
"1 had, been told frequently that
coffee was injurious to me," (tea
isjust as bad) "and if 1 had not.
been told, the. almost constant
headaches with which. I began to
suffer after using it. for several
years, the state of lethargic men-
tality which gradually came upon
me to hinder me in may studies, the
general lassitude and indisposition
to any sort of effort 'which pos-
sessed mo, ought to have been suf-
ficient warning.
But. I disregarded them till my
physician told mo a few months
ago that I must give up coffee or
quit college. I could hesitate no
longer, and at once abandoned
coffee.
"On the advice of a friend I be-
gan to drink Postum, and rejoice
to tell you that with the drug in
coffee" (the same drug—caffeine—
is found in tea) "removed and the
healthful properties of Postum in
its place I was soon relieved of all
my ailments.
The ;headaches and nervousness
disappeared entirely, strength
came back to me, and my complex-
ion which had been very, very bad,
cleared up beautifully.
Better than all, my mental facul-
ties were toned up, and became
more vigorous than ever, and I
now feel that no course of study
would be too . difficult for me."
Name given by Canadian Postum
Co.. Windsor, Ont.
"There's a reason." and it is ex-
plained in the little book, "The
Road to Wcllville, in pkgs.
Eder reed the above :letter? A owe one
mincers tram time to time. They aro
genuine, true and fell of human interest.
WORLD'S 'DEADLIEST POISON.
Being Used Against British Troops
By Aber Trhoesinen.
The fact that the Abor tribes-
men, against whom the Government.
of India have sent a punitive ex-
.peo..ion to punish them for the
recent massacre of Mr. Noel Wil-
liamson, are chiefly armed with
bows and arrows, has led people.
to imagine that the natives will in-
flict but little damage on our sol-
diers. --
As
As a matter of fact, however, the
arrows used by the Abors are often
more dreaded than bullets, ':for they
are usually dipped in apoison
which is probably the most deadly
in the' world. This poison is known
as curare, and is so virulent that
savages have been known to smear
it on their nails and to hill an
enemy merely by scratching ,him.
<a "•
Three years .ago 1a young .doctor.
was convicted at Vienna for:suFP Y 1
ing curare to a married woman.
who touched a little rawp
lace on
her husband's body with it and he
died," ; says the Field. "In effect
he had'` -bee
n struck by a poisoned'
arrow."
Curare is an artificitl compound,'
the secret of which is: moat jealous-
ly gua,rdod
ealous-lyguarded by the priolts and Tedi
eine-m011 of 'savage ' {bxi5bas, . and.- .:
travel ars l ,wzi told fasa mating
tales of how old wromeri. •2 tie tribes
assist the prriente to ma e the Muff,'
and regard it Loa an holt ar to test i,:+'
strengthupon themsei themp•
A.nOth r test: is t0‘e holes in
trees and inject a gmttndity cur-
1
aro. If the leaves Iii' ve not fallen
off before niore4ng, t"' re deadly in
grediente e a dei,,
in -lonely orlon?'• the domestic
tl
ands the Art', ' pheasant are
i t"bo r a�r1eteatur, said to . he Im
inane from the ;effse sof -Oils deadly
poison r, r .,,.
is
/414
Keep " Dick n
At His e
He'll giro
you his
awee.teat
song oniy-
whenho'ain
the pink Of.
condittpn.
.1'ut'.h4in
• there, and
koop .film
there:, by
feeding him
on.
Brceck'as Bird Seed 11
Ha71 enioy it meta, thrive better
on it, kook fin or lied sine mora sweetly.
The Seed is a sctentific mixture -a
perfectly. balanced toed for sang -
Wee in this climate --and the cake'of •
Brock'a Bird Treat in every package
is a splendid bird tonic.
Let "Dick" try this Bird TmIcet
our expense. Malt us the, coupon,
below, fitted in, sad wewill mend you,
absolutely free, two full-size cakes of
Brook's Bird Treat, 46
NICHOL,SON" a BROC.K.
9-11 Francis Street, Toronto.
For this coupon please send me,
free of cl;arge or obligation enmy
part two full-size czkes of Erock'e
Bird Treat, end o6diea,
Nese
"' 0
ADDAt:SS 44.44444.n.4,4,444.4.4444.44,4,4.44
REALLY HUMAN.
Vacation is a good time, not mere-
ly for the minister to pursue avo-
cations, but for other folk to dis-
cover how human he is. We re-
cently heard of a small bay who
eamo home from a Sunday school
picnic and reported to his ' mother
what he had found out above the
pastor. "0, mamma," said the
youngster, "he can run and hol-
ler and climb a, tree and eat."
But a practical joke isn't if you
are the victim.
WOODEN S1l:OES IN El4GLA3:4I).
Evidence That They are Better
Than Poor Leather,
An effort to substitute waterproof
and practically indestructible wood-
en shoes, the sort worn by peasants'
in Holland, France and ether Con-
tinental countries, for the cheap
leather shoes worn by the school
children of very poor parents was
made in it`ngland rionle time ago..
but was not a success: It has been
revised this winter and evidence is
accumulating that in parts of the
country there, is an 'increasing use
of the, cumbersome footgear,
The argument in favor of the clog;`
is that leather shoes are beyond.
the means of the average English
workingman of family, while olegQ
are cheap and never wear out, gen-
erally speaking. Many school ,chit-.
dren of the poorer classes wear
mere apologies for shoes, eoleless
affairs, with holes that let in water.
and lay the foundation for ppeu.
monis and ether diseases,
Several years ago when Sir John
Kirk, director of the Ragged School
Union and Shaftesbury Society
joined Lady St, Helier in an appeal
for,,funds to .supply poor children
in the London schools with fool:
wear on the, part payment system
the suggestion was made tont clogs
be supplied these children as more
durable and serviceable than leath-
er shoos. According to Percy
Gray of Orlehar, 'Rude, North
Cornwall, who write to 'Mir John
Kirk on the subject, he was met,
with the, objection that cockney
dom would not wear wooden clogs-
That objection seemed' to have
been well taken, for the effort to
have poor school ch'ldren in Lon-
don adopt the wooden 4ubstitiitec
for leather shoes did not get very
far-. The renewed effort is find-
ing encouragement in testimony of
persons who have made the elog
experiment with some degree of
success.
. .1AP,E3l�, i, Ab4
LOOK FOR
E3 E 4 AREF UL...TO'
SEE THAT LABEL. ON
PACK AGE IS BLUE.,
HO OTHER COLOR EVER USED ON
ROYAL T
REMEMBER TIE COLOR BLUE
. .GIL,. T CO.LTD,
TORONTO--ONT
Richard B. Martin of Tewkes-
bury is one of those who have rea-
son to be pleased with eharitable
work of this character.
"Last winter," he says, "I gave
a few pairsof wooden clogs to same:
children who have to come a good
three miles to school through a wet
and dirty lane, The clog, `eaubt ;
on' and this year I gave away nine
more pairs and my wife over fifty'
pairs: to one village school. They
seem to keep the cbildreaa.`feet.
warmer than old and welt worn
leather shoes, I had the clod
from Warringtou and they cost
2s. ed- iOd., a pair; anen's size 3a.
ed.
FC?R YOU, MONEY BONDS
tj There are, broadly speaking, two classes of investments; speculative invest-
ments,which znay or rn aynotpayinterest and ma
1 And there are Bonds --Beads are mortgages spilt up into denominations of
roo or upwards. We continually have Bonds, thesonority' of which is beyond
question, which pay as high as fi per cent. interest. They are the standard form
of investrneut. They are purchased by Banks, Insurance Companies and, chart-
,
ered institutions because the Government recognizes that
they offer the
maximum of safety with a profitable rate of interest.
Send us your name and Address and we will send you literature
from time to time giving particulars of new and old issues.
ROYAL. CORPORATION
HANIc t?t MQAlTREAL IIUILDING• , . . YONGE. At3£? 011iwEil STPEE
"TORONTO
kt
M. Wlirrz rosiness e,-oveagz"HAI.IFAx-urrAww
Manager i.01 -teem (gain,/
Afl:EL
OFFERLD
ete
teLeee res•
(Member* Montreal Stook E:xohxenae)
And issued simultaneously in London, Eng.,
$1,0009000 First Mortgage Twenty -Year Sinking Fund
of the
it,"at''.a'
OFTREAI
FR ti
ER (
ITIS e . ...°01
C Li..
Incorporated under the Companies' Act of Dominion " of Canada)
In DENOMINATIONS $100, $500, $1,000.
AT 96 AND INTEREST (with 25% Bonus of Common Stock), of which $400,000
have already been taken firrn, and withdrawn from sale.
Gold Bonds
IA)
CAPITALIZATION. Authorized Issued.
G% First Mortgage Bonds .. , , .. ,$2,500,000 $1,500,0013
Common Stock .. .. • • 2,00 0O0 1,900,000
. ,
ALLOTMENT.
Subscriptions will be payable as follows: -
25% of the par value on the 10 th da y of February, 1012
30% of the par value on the 10 th day of TMurch, 1912
H. M. PRICE, Quebec, of If, M, Price & Co., Lumber Merchant, Dfreotor of
Lake Sneerior Corporation, Limited.
WILLIAM. WAINWRIGHT, Montreal, Senior Fine -President Grand Trunk
Pacific Railway, Director British Columbia Timbers, Limited.
W. H. MOWILLiAMS, Winnipeg, Vice -President. Monarch Lumber Co.,
Limited
C. W. FARRELL, Montreal. of G. W: Farrell & Co., Director, Fitz -Carlton
Hotel Co., Montreal, Director Atlantis Fruit and Steamship Co., Now York.
J. M. MACKCIE, Montreal, Director .11illcrest Collieries, Limited_
. that the said dividend may not, exceed 6 per cent, so long as any of the
bonds are outstanding.
The Bonds mature on the 1st day of August, 1931. but are redeemable at
105 per cent. by the action of the Sinking Fund, either by peirohase on, the
open market or by drawings as provided by the Treat Deed, after lot.day
of ;,February, 1916.
The principal and interest -coupons attached to -these bonds will be pay-
able at the Royal, Trust Co . Montreal.
r'
Inte_ zm certificates' will be issued by G, VT. F: & Co., countersigned bythe
Royal Trost Co.. which will be exchanged for definite Bonds and stock hen
issued.
The failure to pay` any instalment when duo will render all previous
payments liable to forfeiture.
10% of the par value on application
31% of the par value on allotment
HON. WILLIAM C. 'EDWARDS, Ottawa, President of W. C. Edwards & :Co„
Limited,' Director of Canadian Bank of Commerce.
ALEX. f,9acLAURIN, Montreal, Vice -President, President Campbell Mac•
Laurin . Lumber Company, , President British Columbia Timbers, Limited,
C. JACKSON BOOTH, Ottawa, of J. R. Booth, Lumber Merchant, Director
British Oanadian Lumber Corporation, Limited.
W. ftOLSON MACPHERSON, Quebec, President Molson's Bank, Director
Grand Trunk Pacific Railway,
HOPI. D. C. CAMERON, Wiinnipeg, Lieutenant -Governor of the Province of
Manitoba; "Direotor Northern Crown Bank, President Rat Portage Lune.
ber Go., Limited.
Each subscriber, upon payment of final instalment, to receive 25 per cent.
of par value of Bonds subscribed by him in fully paid, up common shares.
Tho Bonds will be to Bearer, and aro a first and fixed charge against
the Company's Licenses and other assets, including its uncalled capital.
The $500,000 of the bonds over and :above the million now being offered
were applied in part payment of the propertios, and by agreement, are
withheld • from sale for a period of two -years.
The provisions of the Trust Deed stipulate that a sinking
fund for the
retirement of the Bonds be created by the payment on July tat of each year
beginning in 1915, of $1 for every 1,000 ft. (Board Measure) of lumber out and
sold; also that $2 per 1,000 ft.. (Board Measure)' of lumber cut and sold' must
be paid in before any 'dividend on the common stock may be "declared; also
TRUSTEES FOR THE BONDHOLDERS, THE ROYAL TiVeST COMPANY, MONTREAL
Solicitors in Canada—Messrs. Brown, 69ontgotnery & McMichael, Montreal. Bankers in Canada—Bank of (Montreal. Montreal.
The following extracts from a letter to Illessrs.• G. W. Farrell & Co. from the lion, William C. 'Edwards, President of
the Company, give further information regarding this issue:
"The properties of the Ilpper Fraser River (British Columbia) Lum-
ber Company, Limited, are located on the banks' of the "Upper Fraser
River, and streams tributary thereto, in the'. Province of British Colum-
bia, and comprise -a total area of about 281"square mites, or 179.840 acres,
of timber lands of first rate quality."
"Each Timber Limit, approximately one s uare mile in -extent.: was
separately `soleoted by:ei erienced tinmber"cruisers `including'the well-
known' D w
known timber expert, John Thomson, of Portage du Fort, Quebec (favor•
ably known to Messrs, W. C. Edwards and Company, Limited. for many
Years as -'an experlenoed•and reliable bush -ranger)' with special reference
to the quality or timber, the conformation -of the 'land, and accessibility
of rivers, and the new- route of the Grand Trunk -'Pacific. Railway:"
"Mr, Charles M. Hays,' President of the Grand Trunk hactIIc Rail-
way Company, has written that his company is prepared to" enter' into
a'oontract; for -the purchase of ttoe and bridge-. materials as soon as the
railroad reaches the limits owned ;by . tbis Company, which, . we are as-,
sexed, 'will`. be 'in the summer of nineteen twelve, and this rcompany ..pro-
ses to use some of the working capital provided by the sale of. the
Bonds to at. once equip for the,dellvery of this ,material to the Grand
'trunk •Paciflo Railway.. '•,The favorable position of the limits, as tregards,
Choir proximity -to'. the great and' ` growing p y Rg 8 ,market of the North West
Provinces assures a satfefactory future : demand for the output of the
"The Directors desire to emphasize the fact ,that Timber lands of the
nature of the Company's properties have a constantly increasing value,
and oven if no operating at all were done the Company's properties are
a sound investment from a holding point of view."
'eche Timber , on the Company's lands is mads un laregly of Red
Cedar, which is a very valuable 'feature, and the remainder is Spruce,
Hemlock,. Douglas Fir, and White Pine. The timber ie -of exceptionally
good quality, being thrifty and uniform in size, and is expected to
average' 30 inches on the butt, and to cut from five to eight logs to the
tree. The amount of <merchantable saw lumber curtsined on the Com-
"bany's property has been carefully and conservatively estimated at a
total of 3,449,594,200 feet: No timber under 14 inches in diameter, on the
stump,' is included in this estimate."
"Tho Board of Directors is composed of practical 'and o'cperienced
men, who thoroughly understand the 'lumber business and the regnire-
ments of the various lumber markets, of the world, and have the bent
facilities for obtaining profitable sales for the Company's timber,
"Oa the basis of ,the „Bond issue of $1,500,000. • and the quantity Y�Y Of
timber hereinbefore stated of 5,449,594,200 feet' (Board Measure} there is
represented the low ;mortgage Ivaluation of approximately 43 cents per
• LOCO feet, (Board Measure). ,The, majority of companies who have reeontly
offered their Bonds in this' countryhave taken: as their mortgage rale-:.'
etion •from $1 to 83 per 1,000 feet of standing timber. It will, therefore,
be appreciated: that the, Bonds aro exceptionally well, secured."
COMPLETE PROSPECTU
I URTIIER INFOJIMATION MAY BE DAD B'
ilk
•
� ••� baa:® ' ' R
(Members Montreal Stock Exchange.)
45 St,. Francois Xavier Street,. Montreal.
A.1'111,Vlla, 4 TO
l I
TilIS BLANK
I •Ii x1,i
V (y
e
Vs FARRELL l &
CO., 45 St, Iratcois Zavier Street, rlohereby subscribe f r the FIRST FUND
nt;•clt ,�.�i .f hs �a;�,�G'�'� ;37
MORTGA , zE r o �{
GE,,T��..��1TY ,YEAR SINKING E: � ,; ,.,.., .' :
UPPER `FRASE..... R YER BT ITIS x; Uon �,o.C�oLISp1 th ,C t on
>� Y, :. , (.. t S t,T: COLUMBIA ''LU:�B hR C4, ,, .�'v :�, . LIM T • D ,
Stook ;of the Coin „ o , 1 I 1 (carzy>ng u Bonn 'arm,
" ,bf the Ctrxnnlon
au aableassa
stated ,12i h .:... r, , ., .,:... . � ,..:
p . y)P... the advel, ,,<, :a•• ,:- ,,.,
3' ilia lent- ,• .,; ,,..., ,
,1 irV*,•. being
tiee ifl ±$Il,R�fLIGrRtU ��1tOp , fOrtn rr 5.e .a'tliW
is { �. len..
t, o e cheek for `� ,...: , . � �.
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