Mercedes Tribune (Mercedes, Tex.), Vol. 7, No. 1, Ed. 1 Friday, February 20, 1920 Page: 11 of 12
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MERCEDES TRIBUNE
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PAGE ELEVEN-
Don’t Invest Your Money in Promises,
REALITIES Pay Bigger Dividends
.....■■■■ — ■ — .!■■■■ I ■ - ' ’ " ■ ■ ■■■■ ■■■■ ■ — ■■■■-■-—■ ■- — ™ — ■■■ - ■■ ■■ I ■ "
An Absolutely Safe Investment Carrying a 20 per cent Common Stock Bonus in An Industry Whose Securities are Generally Recognized as SAFE and SOUND
$100,000.00
The Great Republic Tire & Rubber Manufacturing Company
7 Per Cent First Mortgage Five Year Convertible Gold Notes
EXECUTIVE OFFICES, MUSKOGEE. OKLA. (Subscriptions to This Issue Received from $100 Up) FACTORY, McALESTER, OKLA.
HISTORY AND ORGANIZATION
•The Great Republic Tire & Rubber Mfg. Company was
organized in the early part of 1917. The present facory
buildings and real estate of the Company was acquired in
August 1917. The men active in the affairs of the Company
are all successful and experienced executives and they have
surrounded themselves with capable and skilled men as
heads /of the various manufacturing departments. Our
factory superintendent having come to us with a recoid of
■ over! twelve years experience as an expert in building high
rgrade tires and tubes.
I At the present time the Company has agencies estab-
lished in Colorado, Oklahoma, Texas and Louisiana, which
gives us a wide and economical distribution for our pro-
ducts. At this time we have a large volume of unfilled
orders on our books. Through the employment of addi
tional operating capital the volume of our business can be
greatly increased. Of our authorized capital of $500,000.00
there is atjhe present time outstanding at par value
$162jfc.OOand our balance shbet of November TOth, 1919,
Fnet assets of $200,000.00
LjESS: The Company owns and operates a fireproof,
liodern and new equipped factory at McAlester, Okla-
homa, in which it manufactures high grade automobile
fires and tubes. The Company plans to extend the
scope of its operations at an early date, to include
such other rubber products as belting, packing, heels,
soles, and druggist sundries.
fcoUNT OF ISSUE: The total amount of this issue is
$100,000.00 and the trust indenture provides that no
other mortgages of any description shall be issued by
the Company- while any part of the issue is outstand-
ing.
?E OF ISSUE: October 1st, 1919.
?URITY: Five years after date, or October 1st, 1924.
Merest : These notes bear interest at the rate of
7 per cent per annum, payable semi-annually, evi-
denced by coupons attached to notes. The trust in-
denture further provides that funds for the payment
of interest must be deposited with the Trustee at
least BO days before said interest coupons become due.
TRUSTEE: II. B. Ernst. Both principal and interest are
payable at the Exchange Nationai—Bank, Muskogee,
Oklahoma, office of the Trustee.
5ECURITY: First Mortgage on all assets of the Company,
including factory, machinery, raw material, etc. Ac-
cording to last balance sheet of the Company these
notes have collateral in excess of $200,000.00. No
other bonded indebtedness outstanding.
This issue of notes is a direct obligation of the Great
[Republic Tire and Rubber Mfg. Company secured by a first
[mortgage deed of trust on all real estate, buildings, ma-
chinery and other assets of the company. Our factory,
consisting of large modern fire-proof buildings, is well
located at McAlester, Oklahoma. Our machinery is new
and of the most modern and improved type. Our books
[are audited regularly by Baker, Vawter & Wolf, well known
[certified public accountants, whose report of April 12th,
1919, is on file in our office. After the proceeds of this
tissue are used as provided for in the deed of trust, in our
[opinion the net assets as security for this issue will be at
lleast three dollars for one.
JET QUICK ASSETS: The trust indenture further pro-
vides that the Company shall maintain at all times
while this issue is outstanding NET QUICK ASSETS
of at least $100,000.00.
>BJECT OF ISSUE: Proceeds derived from this issue will
give the Company the necessary additional operating
capacity to operate their plant to capacity production
and for the purchse of large quantities of crude rubber
and other raw material, at favorable market, enabling
the Company to fill the large volume of orders now
on the books and to. greatly increase the scope of their
operations through the establishment of new dealers.
CONDENSED FACTS REGARDING THE COMPANY:
The Company is the owner in fee simple of a ten-acre
tract, upon which the factory is built. The buildings
are modem and ideally suited for the purposes to
which they are put. The Factory has approximately
80,000 feet of floor space. The machinery, which was
specially built for the Company, was installed under
the personal supervision of mechanical experts. From
a manufacturing standpoint nothing more could be de-
sired. It is in the City of McAlester, Oklahoma,
which farms a junction of the main lines of the Rock
Island and M. K. & T. Railroads, and the factory is
connected with them through its private railroad
siding. / McAlester is the headquarters of the coal
dndustny of Oklahoma, thereby affording cheaper fuel.
|his a/avantage is increased by the fact that coal de-
nts/ in paying quantities exist under the Company’s
/erty, and a contract has been made with a coal
company for the mining of said coal. The scale of
wages, both for union and non-union labor, is lower in
McAlester than in other cities in the state. This
materially' cuts down the cost of manufacturing.
McAlester is within one hundred miles of the lead and
zinc mines of Miami, Oklahoma, and is closer to the
supply of cotton fabrics than the tire factories of
Akron, Ohio, and of the East. Every ingredient which
enters into the manufacture of tires and tubes either
originates in the South and in the immediate territo-
ry of the factory or passes through the South. These
advantages effecting a reduction in the cost of man-
ufacturing will enable the Company to make AS GOOD
a tire and tube as our Ohio and Eastern competitors,
and to sell it at the SAME price but at a GREATER
PROFIT, for it will enable the Company to make a
BETTER tire and tube than our competitors and to
sell it lie the SAME PRICE and make the SAME
PROFIT. After paying all fixed charges, overhead
and other necessary expenses the estimated profits
for the fiscal year ending Decmbr 31st, 1920, based
upon a; business of $500,000, should be 15 per cent
upon the outstanding stock of the Company.
The Company’s officials are men of proven ability
and while each has a general working knowledge of
the business of every department of the Company,
each official is a specialist of his line of duty, with the
resutl that a high degree of efficiency is attained.
EARNINGS.
Earnings derived from the sale of tires and tubes for
the past six months sliow a gross profit of approximately
25 per cent. A large part of these sales were made to deal-
ers at heavy discount and at the, time when the Company
was doing only a moderate volume of business. By opera-
ting to capacity production we see no reason why the per
cent of profits cannot be considerably increased. Inquiries
for agencies for the sale of our products have been received
during the past few months, from all over the United
States and, several foreign countries.
OFFICERS AND DIRECTORS
W. H. Owens, President and General Manager, Mus-
kogee, Okla.
E. C. Marianelli, Vice President and General Counsel,
McAlester, Okla.
H. Eichenberger, Treasurer, Okmulgee, Okla.
W. C. Pope. Secretary, Muskogee, Okla.
Frank Dowell, Director, Oolagah, Okla.
R. C. Bush, Director, Muskogee, Okla.
C. A. Peterson, Director, Broken Arrow, Okla.
C. W. O’Donnell, Factory Superintendent, McAlester,
Oklahoma.
SAFEGUARDS
The trust indenture under which these coupon notes
are issued, provides the following:
(1) No mortgage or prior liens may be placed upon the
assets of the Company.
(2) Net assets must be maintained at an amount of at
least $100,000.90—the amount of this issue.
(3) Insurance upon the property must be carried at all
times for an amount equal to the par value of the out-
standing notes. The policies to be assigned to the
trustee for the protection of the noteholders.
(4) Proceeds of issue to be used in strengthening present
assets.
(5) Funds for payments of interest coupons must be
deposited with Trustee at least 30 days before coupons
are due.
REDEMPTION: The trust indenture further provides
that these notes in whole or in part are redeemable,
at the option of the Company, at any interest paying
period, after one year from the date thereof, at 105
and accrued interest.
CONVERSION: Provision is further made that the note
may, at the option of the holder thereof, be converted
into the common stock of the Company at any time
within one year from date. This provision is purely
optional with the holder and is made so that if the
common stock is paying large dividends and has ma-
terially increased in value—the note-holder may take
advantage of such increase.
COMMON STOCK BONDS: To purchasers of the notes
the Company gives a Common Stock Bonus of 20 per
cent of the amount of notes purchased. This makes
the issue very attractive as the security behind the
notes makes, in our opinion, an absolutely safe invest-
ment, and at the same time gives the holder the spec-
ulative value of the common stock. This stock is
now selling at $20 per share and the bonus stock will
be raised on this basis.
PRICE: Par and accrued interest.
TERMS: Cash with subscription.
LEGALITY: Hon. W. P. McGinnis, Muskogee, Oklahoma.
Ex-U. S. District Attorney. Firm of McGinnis &
Molony, Muskogee, Oklahoma. Hon. E. C. Marianeli,
McAlester, Oklahoma.
REFERENCE
R. G. Dupnn Mercantile Agency, Bradstreets.
SUMMARY
It is imperative that we extend and increase our man-
ufacturing facilities so as to enable us to take care of the
normal growth of agencies already established, unfilled or-
ders now on our books, and to secure new business that has
been offered to us. The steadily increasing demand for
tires and tubes is so great that we believe that, from pres-
ent dealers, orders m hand and new business which has
been offered us, we can increase our production to 200
tires and 500 tubes per day, and sell all of this output at
a good profit. Basing the volume of our business for this
year, in our opinion, upon the conservative estimate of
gross sales amounting to $500,000.00, we expect, after
taking care of depreciation, taxes, interest, and other usual
expenses, and after paying the interest on this issue as
well as creating a sinking fund for the redemption of the
same, to be able to pay dividends of 15 per cent on the
stock outstanding.
In conclusion it is our opinion that because of the char-
acter and amount of our assets, our demonstrated earning
power—our standing among the trade and the safeguards
that are incorporated in the deed of trust for the benefit
of the noteholders, this issue of coupon notes, will afford
safety of principal and certainty of prompt interest pay-
ments.
Money invested in Great Republi<Yseven (7) percent
first mortgage Gold Notes is absolutely safe and is better
than money in the bank, because the rate of interest is
higher and the further fact that we are offering a substan-
tial bonus of our common stock. This stock is now selling
on open market at twenty dollars per share and we predict
that it will go much higher before the close of the year.
Holders of “GREAT REPUBLIC” 7 per cent first mortgage
notes are entitled to buy their tires at a discount of twenty-
five per cent from the current retail price, and this in its
self is a substantial saving.
An opportunity like this was never before offered you
and you will have to grasp it quickly as this exceptional
high class of securities will be quickly absorbed by
hundreds of eager investors who know what tire securities
are.
Consider the following salient facts, 98 per cent of the
Tire Manufacturing concerns have earned from 20 to 100
per cent per year on the actual money invested. The mar-
ket for guaranteed tires is enormous and is constantly-
increasing. Hundreds of thousands of new automobiles are
being manufactured every year, there now being more than
six million in use in the United States alone, and every au-
tomobile in use requires an average of six tires and eight
inner tubes per year.
Enormous fortunes have been made in the tire indus-
try, from a small investment made several years ago when
the industry was in its infancy and the demand for tires
was very small compared with the present day demands
From statistics gathered we cite the following:
$200 invested in Dunlap Tire has made......$100,000.00
$200 invested in Goodyear Tire has made...... 75,000.00
$200 invested in Goodrich Tire has made____ 164,000.00
$200 invested in Firestone Tire has made...... 125,000.00
$200 invested in Fisk Tire has made.......... 60,000.00
$200 invested in Kelly-Springfield Tire has made 90,000.00
$200 invested in Ajax Tire has made........ 55,000.00
$200 invested in Miller Tire has made........ 50,000.00
One thousand dollars invested in GREAT REPUBLIC
7 per cent first mortgage Gold Notes carries a bonus of two
hundred dollars in common stock. In five years your origi-
nal investment is returned with 7 per cent interest payable
semi-annually and we believe at the end of that time that
the two hundred dollars of bonus stock will be worth at
least two thousand dollars, besides the dividends which you
will receive on the same during that period of time.
To participate in this high class and exceptional issue
of securities quick action is requred, mail the coupon today.
THE GREAT REPUBLIC TIRE & RUBBER MFG.
COMPANY, Executive offices, Muskogee, Okla.
Gentlemen:—Please send me full particulars of your
proposition without obligating me in any way.
NAME..........................................
ADDRESS......................................
CITY......................STATE..............
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Rector, J. F., Jr. Mercedes Tribune (Mercedes, Tex.), Vol. 7, No. 1, Ed. 1 Friday, February 20, 1920, newspaper, February 20, 1920; Mercedes, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1017636/m1/11/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Dr. Hector P. Garcia Memorial Library.