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Show 1 WD OFFER, SUBJECT TO PRIOR SALE ! $300,000.00 1 I Salt Lake Garfield & Western Railway Go. First Mortgage 6fo Gold Bonds Dated September 1, 1916 " Due Serially, 1919 to 1941 Callable at 104 (in. reverse numerical or?er) on any interest payment date upon GO days' notice. Coupon Bonds of ?lo0, $500 and $1,000 Denominations Interest payable Mai cli 1 and iSept. 1. - i . Trustees Continental and Commercial Trust and Savings Bank, Chicago. I and I ' ZIon's Savings Bank & Trust Company, Salt Lake City (Regarding this issue, we summarize from the letter of Joseph Nelson, president of the Company, as follows: 1 THE SALT LAKE, GARFIELD & WESTERN RAILWAY COMPANY owns and operates a steam railroad, running between Salt Lake City and Saltair. The Road serves a 'population of 120,000, and is operated under the jurisdiction of the interstate Commerce Commission. The issue is an absolute first mortgage upon all the property of the Salt Lake, Garfield & Western Railway Company, including its right of way, terminals and equipment now owned or hereafter acquired. The Bonds are further secured by a first lien upon the entire property of the Saltair Beach Company, the latter company having guaranteed the payment of the bonds both as to principal and interest. ' , The proceeds of the btmds now offered will provide for the extension of the line to Garfield, Utah, and for the electrification of the entire road including the purchase of new high-speed electrical rolling i ' stock. The total cost of the property underlying these First Albrtgage Bonds, including the extension and electrification now provided for, is, according to the Company's books, approximately $1,100,000. The ! first mortgage debt amounts to but $15,000 per mileof road. , Combined earnings for the year ending Decemuer 31, 1915, were as follows: ' Gross Income .v $238,050.78 1 Operating Expenses 157,929.52 i ' . Net Income 80,727.52 Annual Interest Charge on First Mortgage Bonds (this issue) 18,000.00 Balance $G2,727.2G THE NET EARNINGS ARE ABOUT FOUR AND ONE-HALF TIMES THE INTEREST REQUIREMENTS. The book value of the property is over three and one-half times the amount of the first mortgage bonds outstanding. T In addition to the complete liquidation of the bonds by serial retirement, the loan is further safeguarded safe-guarded by establishing a cash maintenance reserve amounting to 22 per cent of the railroad's gross income. in-come. This reserve fund is segregated monthly out of the company's gross receipts. Funds not "needed for maintenance may be utilized for the purchase and retirement of the outstanding first mortgage bonds or for betterments and additions to the property of the company. We recommend these bonds as a conservative investment. PRICE TO YIELD 5.75 PER CENT. ' According to Maturity. (All legal details of this issue liave been passed upon by our attorneys, Messrs. Pairn & Hurd, Chicago, and tile audit of the Company's books has been made by Messrs. M. & L W. Scudder, Certified Public Accountants of New York and Chicago. E. J. HANKE & COMPANY, Inc. ! t INVESTMENT SECURITIES ,tT 161 SOUTH MAIN STREET SALT LAKE CITY ! T i 1 - " - ' " '- |