15
THE CHICAGO BANKER
July 3i, içoç 1
tSIABUSHtU 1872
NORTHWESTERN NATIONAL BANK
MINNEAPOLIS
Total Resources
$30,000,000



_«ac-3־Í■ - :
Capital & Surplus
$4,000,000
The Only Bank in the Northwest with a Complete Foreign Department
this, because recently the stock has sold as high as 46, on which basis the bond was worth 184, and while the stock has decreased in price a little more than 8.6 per cent the bond has decreased less than 1.6 per cent. In this case the purchaser of the Arizona Commercial Bond has maintained his bond security unimpaired and also has had the opportunity to realize a profit on the recent price of the stock into which he could have exchanged his bond.
Considered from the viewpoint of investment, the thing to be regarded is the credit and standing of the company and how well the interest payments are protected by the margin of earnings. From the speculative standpoint, the thing to be considered is the activity of the stock and its likelihood of material advance.
V
Bank of Naper Under New Management
Naper, Neb., July 27.—The Bank of Naper, one of the oldest banks in Boyd county, and which was organized some years ago by R. L. Crosby and later transferred to C. G. Crosby, has been sold to John Fla.nnigan, of Stuart, Neb., and Michael Flannigan, of Minneapolis, Minn. The new owners have large banking and cattle interests in this part of Nebraska and have been very successful. They own the Citizens’ Bank, of Stuart, Neb., and also own and operate three cattle and chattel loan companies located at Mills, Brocksburg, and Jamison, Neb.
V*
Chester County Bank
The Chester County Bank, Chester, Va., has elected the following directors: Tucker K. Sands, W. B. Strother, E. N. Perdue, C. K. Bowles, A. J. Hurt, S. A. Perdue and W. C. Trueheart. The following officers were chosen: President, T. K. Sands; vice-president, W. B. Strother; cashier, W. C. Trueheart. A dividend of 10 per cent was declared.
the security for the recovery of principal, which not even the best of stocks offer.
Messrs. Hornblower & Weeks of this and other investment cities have explained these bonds in a recent letter to clients as follows. The convertible bond is, roughly, a bond exchangeable under certain conditions into some other security. With mining companies in every case the bond is made convertible into the common stock of the issuing company at a definite ratio, and during a stated period. After a certain point its market will depend upon the market for the stock into which it is exchangeable. If the stock advances, the price of the bond will automatically advance. On the other hand, if the stock declines, the price of the bond will not decline in anything like the same proportion, always holding to somewhat nearer the market for the bond of its particular class. For instance, the Arizona Commercial Copper Company issued in September, 1908, a First Mortgage 6 per cent Convertible Bond. At that time the bond sold a few points above par and the stock was selling at about 27. As each $500 bond was convertible into 20 shares of stock, that meant that it would have been worth about 108. Since then the stock has had considerable rise and is now selling at about 43. At this price the bond should be worth about 172. It is actually quoted here at 181 and
Program for the A. B. A. Convention at Chicago
(Continued from page 9)
Friday Evening. Meeting of the new executive council at Auditorium Hotel.
It may be noted that the speakers’ list is unusually attractive and that brief, sharp sessions with long, much prized intermissions are provided. It is a New Era program, both in matter and arrangement and well becomes the “New Era” convention so long hoped for by the rank and file.
The Convertible Bonds of Mining Companies
The feature of the next active market in the securities of copper and other mining companies will be the opportunities afforded for investment in convertible bonds, there being outstanding at present no less than ten issues representing some of the leading mining companies. It is something new in the financing of such companies, every issue having been floated within the last two years. To those interested in mining propositions who would place their money in securities of such mining companies, the convertible mining bond should appeal very strongly as combining all the speculative opportunities of stock with
State Convention Dates
Date	Association	Place	Secretary	Address
August 4, ;					
September 7, 8					D. S. Kloss		
September 8, g		....N ebraska				
September 13-18...	....A. B. A		... .Chicago			F. E. Farnsworth..	
September 15		... .New Mexico				
October 6, 7					
October 12, 13					R. L. Rinaman