Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ... else improvements in the physical property of the corporation. "Thus in the American Sewer Pipe Company 6's of 1920 the minimum sinking fund payment must be $50,000 and the maximum $100,000. Between these limits the payment rests on the discretion of the company. a An excellent example of such a complex sinking fund is that of the PillsburyWashburn Company 5's of 1928. It requires annually: (1) $30,000 after interest on bond issues; (2) $30,000 contingent from surplus profits over and above a certain rental of $100, coo; (3) all surplus profits from "investments"; (4) one-half profit on certain securities; (5) one-half sums recovered by restitution proceedings. N It was found that only approximately 25 per cent of the sinking funds of public service and industrial bonds were administered by a trustee, whereas 70 per cent of the railroad sinking funds were so administered. The usual requirement for the investment of sinking fund reserves is that the bonds of the same issue be bought on the open market and canceled.35 Sometimes the bonds are not canceled but are held by the trustees and interest collected upon them, the proceeds of which are used for additional bond purchases.36 It is usually provided that the bonds to be acquired for the sinking fund may be purchased in the open market at the price specified in the bond as the call price, and further that if they are not procurable at the fixed price or lower, they may be called by lot.37 It is important that the corporation or trustee be empowered to call the bonds or otherwise the holders may exact a high price, especially if the bonds are closely held.38 And further it is important that the bonds be callable by lot, for otherwise certain holders may be discriminated...
