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- WHAT CONSTITUTES THE DIF- FERENCE BETWEEN BONDS pi) - AND STOCKS, - * _ Various Securities in Which We * Invest--Ronds and Shares Pro- duct of Modern Times--Explain- éng Difference . Between Bonds and Dehentures--How Bond Inm- terest is Paid. This column is written with the sole aim of supplying reliable in- formation for the us and protec- Sion--in '4. ancial matters--of the readers ofthis paper: Its impartial and reliable character may be de- pended upon, The writer of these articles and the publi-her of this paper 'have no oth : interests to serve in connection with this mat- ter. Exgepting purchases of real es- tate 'and loans secured by real es- tate mortgages, most investments are represented by what are gen- erally known as "securities." Thi term in~ludes bonds, stocks, de- bentures, shares and all manner of documents to show in what you have invested your money. Some- times even, as in the case of Cana- dian bank stocks, you have no- thing to show, your name and number of shares entéred in the '"'stock ledger" being the only evi- dence of your interest. Two centuries ago, if a Sir Wil- liam Mackenzie had conceived the idea of building a great railroad like the Canadian Northern, he wonld have found it impossible to ®ave raised the money. There were at that time few, if any, for- tunes of eighty million dollars (which the road has cost). No one had thought of the idea of divid- ing up into small amounts the in- debtedness of a company desiring to borrow money on a mortgage. In short, it could not have been built unless the King and Parlia- ment had undertaken it. Then, too, if a miller wished to build a flour mill requiring a large amount of capital, he would have had either to have put up the money himself or taken in some partners. He could nov have taken in many, for it would have been too cumbersome under the old laws. Moreover, the idea of our joint stock companies had not been thought of. Now-a-days, however, it is quite | different. Lawyers have learned that mortgages can be subdivided mto equal parts each part as se- cure as the whole, and involving uo very great expense. In "his manner a railroad cin mortgage « ite property, just as sgn ordinary individual can. But the railroad, instead of one mortgage, can is- sue for its huge indebtedness a large number of small mortgages, running from $100 yp to $5,000 (or, in fact, any amount) in face value. These small mortgages are called bonds. Most bonds contain on their face a copy of the mortgage of which they form a part, and are personally signed by the nec- estary officer of the railroad. Most bonds, too, have attached what are called "coupons," which are small certificates of interest, which are cut off and cashed--at a.y bank-- on the date when the interest is due. Bonds, of course, may be is- sued by all kinds of companies. @Governments and municipalities, too, issue 'them. The word "Debentures' is in many cases used in reference to bonds. Strictly speaking, how- ever, a debenture is a promissary 'mote not secured by a_ mortgage. "They, like the bonds, are divided {3nto small amounts, and are issued . Aor money borrowed, just'as@ man "gives his note to a bank when bor- rowing. . ] Thus we see that bonds are merely mortgages, ana mortgages, as everyone knows, are 'promises to pay," secured by land or: other valuable, marketable object. ebentures, too, are promises.' pay, but: often without any se- curity 'whatever, other involved in the fin 1 standing |¥ "of the issuing co y. gS th 'of stock, however, are quite. dif- "ferent: © They involve no promise the. part of the issuing company] late the amouat they rep i urchase shar a company you become a part- In the 'old days, 'whe: 1 @] 20 with the sharcholder, except that | eagerness to buy. Re in the case of many of eur large joint stock companies there is a re- gular market for these shares, which are bought and sold daily at: a. price-determined largely by the amount, of shaves to be 'sold; and the number of buyers and their The ¢hief point to be remembered all like bonds, for, as we pointed out above, bonds are "promises to pay," and must. be repaid at a fixed date, while shares involve no such promise. There is one other feature, too, in which bonds and ttocks differ. Most bonds carry a xed interes payable: at regular dates. do not carry any interest. Their est, costs of operation, etc., are provided. They may carry no "dividend," as the payment is called, or they may carry a large one; but it merely represents a di- vision of surplus profits. Bond in- terest, on the contrary, is a fixed charge, and must be paid, or the mortgage on the company may be forclosed. "INVESTOR." -- a FROM MERRY OLD ENGLAND NEWS RY SAIL ABOUT Jom BULL AND HIS PEOPLE. -- p Gc. yrrences in the Land Thas Reigns Supreme in the Come mereial World. In the United Kingdom last year 840 cremations took place. . The second largest open-air bath in England has been opened at Kensal Rise. There are 98 towns in the British Isles with a population of 50,000 or over, The English Prayer Book is print- ed in no fewer than 120 foreign languages. Lancashire is the most populous British county, Middlesex second, Yorkshire third. In 16v3, 185 distilleries were at work in the United Kingdom. In 1909-10 the number was 156. During the day on which the traf- fic census was taken 12,505 cyclists entered the city of London. Ten thousand pounds has been left to Liverpool charities by the late Mr. Thomas Davies of Bootle. The crew of the motor launch Mauretania at Aberystwyth captur- ed a huge seafish weighing three cwt. The total number of old age pen- sioners in the United Kingdom at the end of March was:--Men, 533,- 000; women, 547,411. Lord Robert Cecil is convinced that the English woman is not only the most beautiful but the best of all women in the world. : From the traning ship Exmouth 3,300 boys of the poorest class have passed in.o the navy and 3,800 in- to the mercantile marine. In Great Britain the consump- tion of tea per head has reached 6.38 pounds, almost equalling that of Australia, which has so long held the first place. } During the last ten years the Royal Commission on" Tuberculosis has cost the taxpayers $379,160. From the sale of its reports $1,075 has been realized. ; Greater London has more than doubled its populatioh' inthe past fifty years, the figures in 1861 be- ing 8,320,720, while now they are 7,252,963. he 'One huge oak tree on the Yester: estate of Lord Tweedale has sup- 'plied all the new panelling of the drawing-room ised Ey the Queen at Holyrood Palace, Edinburgh: i ssid at Qidhill, Pid ed. damage 5 ty houses © be badly damaged that iihay have. heen closed: "éondemn- Col heiter Town Council has de. ; tw re a rem cessfully, but the le return consists in a division of pro- ¢ fits after all obligations of inter is that shares of stock are not at). Stocks | : FE it gone ¥ DATED August Ist, 19i1. oa Principal and semi-annual interest February 1st and August 1st, payable at any branch of the | Fr EET Union Bank of Canada or Metropolitan Po dor Si i bonus of 25 per cent. of Common Stock. 'DUE August Ist, 1941. . Denominations: $100, $500 and $1,000 Bonds issued in coupon form, with privilege of registration of principal 3 TRUSTEE: : Guardian Trust Co., Limited, Toronto. es CAPITAL ISSUED AND FULLY PAID UP 6% FIRST MORTGAGE THIRTY-YEAR SINKING FUND GOLD BONDS. ....... .$1,250,000 77, NON-CUMULATIVE PREFERRED STOCK, ISSUED AND FULLY PAID UP .. 1,250,000 COMMON STOCK, ISSUED AND FULLY PAID UP...... ois alien orn 2,500,000 BOARD OF CAWTHRA MULOCK, Toronto, President. ur ' Director Imperial Bank of Canada. ; Ey Director Confederation Life Association. MARK BREDIN, Toronto, Vice-Pres. and Gen. Manager. President Bredin Bread Co., Limited. . GEORGE WESTON, Toronto. Model Bakery. } President George Weston, Limited. DIRECTORS: H. C. TOMLIN, Toronto. Toronto Bakery. W. J. BOYD, Winnipeg, Boyd's Bakery. ALFRED JOHNSTON, Toronto, of W. R. Johnston & Co., Ltd., Wholesale Clothing. E. H. LASCHINGER, Toronto, Secretary; formerly As- sistant Deputy Postmaster-General of Canada. 03 BANKERS Union Bank of Canada. - 0 - The Metropolitan Bank. TRANSFER AGENTS AND REGISTRARS Guardian Trust Co., Limited AUDITORS Price, Waterhouse & Co., Montreal and Toronto ; Oscar Hudson & Co. , Toronto. "HEAD OFFICE : Toronto. PLANTS AT : Montreal, Toronto, Winnipeg = & PURPOSES OF COMPANY Canada Breésd ited, of Toronto; Geo. ny, Limited, has acquired as going concerns the plants and businesses of the Bi on (The Model Bakery), of Toronto; H. C. redin Bread Company, Iim- - Tomlin of Toronto; Stuarts, Iimit- (Toronto Bakery), ed, of Montreal, and WIJ. Boyd, of Winnipeg. In the case of Boyd, the real property is excluded, but a parcel of vacant land in the City of Winnipeg, about two acres in extent, is substituted, The first three companies have been in operation for almost thirty years, and the Jast two for close to twenty years. They have all grown from small beginnings tll they are now among the largest in their re- spective fields in Canada, Theé"Combined output 51 the companies at present is, approximately, 600,000 loaves of bread per week, It Is d, b, 4 the 3 y to ¢ the erectd A Company to one million loaves per week, with other extensions to follo or uisition of mew plants, to forthwith increase the output of the in the other large cities at a later date. POSITION OF BONDS For full particulars, reference' may be made to our prospectus, which is accompanied by a letter from Mr. Mark Bredin the Vice-President and (ieneral Manager of the Company. 1. The present $1,250,000 of 6 per cent. First Mortgage Sinking Fund Thirty-year Gold Bonds are secured by Trust Deeds to Guardian Trust Company, Limited, Toronto, consti. tuting a first mortgage on all the property, real, personal, or mixed, now owned or hereafter acquired by the Company, as more fully described In gald Trust Deede. In the Trust Deeds it is specially stipulated that of the $1,000,000 cash being placed in the treasury, the sum of $500,000 shall be held by the Trus- tee, to be used only in the redemption of bonds or in Investment in additional plants and real estate, thus increasing the fixed assets under the mortgage, A !3inking Fund of 1 per cent. is operative from August Ist, 1911. 7% 4 3 LS | 3 '2. The assets of the! companies already taken over stand In excess of 'all liabilities and without ny allowafice for good-will, trade marks, etc. at-3841,428.70. Thefe has also been placed in the treasury $1,006,221,0 vide ample working capital, 3. The earnings of the present plants, as per certificate of Messrs. Price, Waterhouse .& Co., after allowing for 'deprecia- tion, amounted. from April 30th, 1910, to April 30th, 1911, to $107,016.14, to which y. be added $35,000, being. interest at the rate of 33 per cent. on $1,000,000 cash in the treasury. pending its employment on extensions. It is estimated that, We draw attention to the following points: 'with, the Company, by the end of its fst ~of caxh, which, besides furnishing funds ' for the purchasing or construction of additional viants, will pro-- with the economies to be effected, the earnings on these plants will shortly amount to $180,000 a year, or nearly two and one- half times the bond interest, 4. With the extensions that it is proposed to effect forth: . fiscal year, should be in a position. to show, earnings of $260,000 a year, equal to three and one-half times the interest requirements on the bond issue, and with all the additional plants that will be, provided with the cash -now in the treasury, the éarnings should steadily gain to over $630,000 a yéar, or more thal seven times the bond in- . | terest requirements. 5 ub ! FL rg b. The Company, with its plants situated 1 ° Jarger cities of the. different' provinces of Canada, wi Be ane: geptionally favorable position to. benefit by the - marked "economies" that will be possible "in manufacturi " especially, 'in. distribution, and all the time will be farning. ut more uniform product under the most sanitary. conditic 6. The practical men 'who have made the aifferent com- panies particularly successful will be identified with the manage- ment and direction' of the new Company. - Mr. Mark Bredin, who is probably one, of 'the 'most successful bread manufacturers in Canada, will occupy the position of Vice-President and General Manager, while the services of different companies taken over and of 'fifth have been assured to the. Company. a, ~~. SUBSCRIPTIONS Subscriptions should be made on the form accompanying the prospectus, and ave payable as follows:-& 10 per cent. on par value Sn application, ana 'B84 per cent. on par value on it. 9814 per cent. Gs x Upon final payment by the subscriber for all the bonds allotted, gether with fully paid-up shaees of the Common Stock 'of the Compan Ea Fy it i allotted, - American Appraisal Co. ar Pros OR Application will be made-to 11st the bonds and common stock on ths Toronto Stock Exchange, i ; i Copy of the trust mortgage and legal opinion of A. M. Btewart, and certificates of i PH pa 2 inupection at the offices of the Guardian Trust Compuny, mites Toric" end. Canadian In instalments as follows, in which case interest. at rate © per cont: will be, charged: from date of aDotmenir. he ot w per cent, on par value on application, 334 per cont. on par value on alo i 28 per cent. on-par value on 1st Sept. 1911. 25 per cent. on par value on 1st Oct., 1911, 25 per cent. on par value on 1st Nov, 1911, -- 0814 per cent. ah Is, the Guardian Trust Company, Limited, will deliv nds, 4 Y equivalent at par to 25 per cent. of the Pe ro do > par. value of bonds