Salt Lake Telegram | 1923-11-03 | Page 6 | Local Bond and Security Dealings

Local Bond And Security Dealings One of the most Important bond Issues to come out this fall was be- be lug offered by dealers In Salt Lake today It is a Issue of the American Telephone and Telegraph Tele- Tele graph company twenty Years vears EI 54 per percent percent cent sinking lund fund debentures debenture dated November 1 and maturing Novem ber 1 1 1943 The bonds are in de denominations do- do nominations of 1000 and and are n offered to the public at to yield per cent The trust indenture provides for fora a sinking fund of annually annual annual- ly payable semiannually semiannual sn n In Installments in- in beginning May 1 J. J 1324 1924 to be used In purchasing debentures If obtainable at sot not exceeding exceeding- and interest and otherwise for capItal cap cap- ital expenditures Tho issue is re redeemable ye- ye at the option of the corn com pan pany In Sn whole or In part on any interest date on or prior to May 1 1941 at and accrued Interest anti and on any Interest slate date subsequent to May 1 1941 at and accrued interest During the last ten years yearn the company's net earnings have havo averaged averaged aver aver- aged more than tour four and one half times the total Interest charges and for the year 1923 It is estimated that ret earnings available for or Interest will be about or nearly seven times the annual Interest charges on the company's debt outstanding outstanding out out- standing standing- after this financing Dividends Divi on Its stock have been paid at atthe atthe the rate of at least per share chare annually for the two forty year yean and for the fifteen years ended end end- ed 1921 1011 the rate rate- wa 8 S per snare and since then ha hail b been en at the rate of 9 p per r share The company agrees that It will not mortgage any of its lines or plants unless it I hall se secure secure se- se cure these debentures debenture l by y or bonds londs of its telephone operating companies and that that- It Mill ill not pledge with certain exceptions with respect to the col collateral coi- coi lateral bonds any stocks or r bonds of Its telephone operating companies com coin panics unless It shall secure se tise debentures as above stated or ratably rat rat- ratably ably with any other obligations se secured secured se- se cured by such pledge m In either cither ease the Is to k rn l stocks or bond bondi to a equal at atall atall all times to 1 i per tent cent of the principal of the debt s secured there there- The total assets of f the company are carried at more than Th The conservative valuation f stocks and bonds and of advances 10 to associated and affiliated companies corn com panics amount to more loan 1390 less than of which are arc pledged The Tho company's long istance f tele telephone she she- phone plant Including nearly 1 miles of toll wire and telephone telephone tele tele- phone instruments and real estate has ha a II book cost of over os-er and free from any lien The Central Trust Palmer Bond Bondi i Pod nd Mortgage company and J. J A. A Co were offering the bonds In Salt Lake The Palmer blond and Mortgage company was offering city of lIf Logan 6 5 pr cent light bonds to to- to day The bonds are tax exempt and dated September 1 1923 and due serially from 1926 to 1943 Inclusive The Tho bonds are a a. direct obligation upon the city and are being sold to y 40 per cent