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Show !Tax 'Exempt in California. I Exempt from Federal Jprmal Income Tax i 1 1 $6,000,000 1 Goodyear Tire & Rubber Company of California j 7 Cumulative Preferred Stock p I full Paid ' Par Value of Shares $100 Non-assessablo . I . Dividends payable quarterly on January, April, July and October 1st. ri 3 Redeemable as a whole only at 105 during first five years and ;b 0 thereafter at 110 and accumulated dividends. j,' 1 Los Angeles Trust and Savings Bank, Registrar 1 Capitalization Authorized Now to be Issued !j 1 Preferred Stock', 7 Cumulative (this issue)' "$10,000,000 $ 6,000,000 h I , Common Stock 10,000,000 3,000,000. ,: Th 4,000,000 of Preferred Stock remaining can only be Issued under special restrictions. I From a letter of President F. A. Seiberling, dated Julj 8, 1919, we summarize the following: j; . The Goodyear Tire & Eubber Company of California has been organized by The Goodyear Tire I & Rubber Company (of Akron, Ohio) because of the inability of the Akron Company to keep 'F- pace with the constantly increasing demand for its products in the territory hereafter to be served -jj by the California Company. , ' The Akron Company will turn over to the California Company its established business in the I States of California, Oregon, Washington, Idaho, Montana, Utah, Nevada, Wyoming, Colorado, i Arizona and New Mexico and Hawaii. C: The California Company will construct a plant at Los Angeles, where it will manufacture (using the . fi 1 identical patents, formulas and trademarks used by the Akron Company, under the same terms 1 and conditions as the Akron Company), automobile, truck and motorcycle tires and tubes, tire , accessories and repair materials, aeronautic supplies and mechanical rubber goods. : k I Purpose Of This Issue . The proceeds of the $6,000,000 preferred stock (together with $3,000,000 cash to be paid by the jS Akron Company as part consideration for the $3,000,000 par value of common stock now to be ' (i tissued) will be used to build the plant at Los Angeles with a present capacity of 3,000 tires per h ' day, and for working capital. Earnings 1 1 s Pending the completion of the California plant, the Akron Company will supply the California ., Jj jj Company with goods at wholesale. The net profit to be derived, from the distribution of these 5 goods by the California Company based on last year's sales, is estimated to be over three times fj the dividend requirements on this issue of preferred stock. When the California plant is com- . I , pleted there will be added to this the manufacturing profit which now goes Jq the Akron Com- pany. - , . I Safeguards ) j The stock is preferred both as to dividends and assets. , F 1 The stock is non-assessable. i No mortgage or other lien can be placed upon its property or any of its assets, nor can the - ',; ' 6 Company issue any bonds or debentures or other like obligations (except that this shall not I I! .v include their obligations given in connection with commercial borrowings) of longer maturity ! than one year, without the consent of 75 of the outstanding preferred stock in writing. ;: ' Net assets must be maintained at one and one-half times the par value of the outstanding preferred ' Stock. I ' Issuance of remaining stock is carefully restricted. ; 1 c !All legal matters in connection with the formation of the Company and the issuance of this stoclr are under the supervision of Messrs. O'Melveny, Milliken & Tuller, Attorneys, Los Angeles, Cal. , (; Application will be made to list this stock on the San Francisco Stock and Bond Exchange and the. Los Angeles Stock Exchange. l, a Price $100 per share 1 . f: j , I Cyrus Peirce & Company, Palmer Bond & Mortgage Co., ? j San Francisco, Los Angeles. Walker Bank Building, Salt Lake City, Utah. ' j I All Statements herein are official or are based on Information which wo regard ' jjj a-s reliable, and while we do not jruaranto them, wo believe them tto bo correct. f,i Goodyear Tire & Rubber Company of California, ' f bos Angeles, Calif. I a Gentlemen: V f ' Having filed an application with the SECURITIES COMMISSION for a license to sell the securities of the preferred stock of your company, and It appearing to the commission L El after a preliminary examination of your application that the securities to be offered are not of a grossly unfair or fraudulent nature, you are hereby authorized to proceed with the h I sale of such securities pending1 final action on your application, subject to the following conditions, which must be adhered to strictly: ' Is It must be distinctly understood that tills permission is temporary and may be revoked at any time; that it does not imply approval by the commission of the securities to he sold. p Persons to whom the securities are sold under this permit must be made clearly acquainted with the fact that the permit is temporary, that the security is being investigated L by the commission and that no approval of the security has been given or Implied. Your attention is directed to the law which makes it a felony to misrepresent the value of any security by oral, written or prlnfed statements, directly or indirectly. ft Permission to advertise your securities is given only on condition that any advertisement must contain an exact copy of this letter in type of a size not less than that generally 5) used In the news columns of newspapers. , in This temporary permit Is revocable at any time without previous notice. M Yours truly, A (Signed) GORDON SNOW, Secretary. J |