1932-06-09 — Page 9

LAFE

THE HONGKONG TELEGRAPH. THURSDAY, JUNE 9, 1932.

CHINA REALTY COMPANY 8% DEBENTURES 8% INTEREST VS 6% INTEREST MEANS ONE THIRD MORE INCOME

AFEGUARDING

YOUR INVESTMENT

Now, more than ever before, it is important that you safeguard your investments as carefully as possible to make sure of their security and the greatest possible return. We are in a position to help you do this-we have behind us a record of more than twenty years of useful and profitable service to investors.

OTHER

ASSETS

REAL ESTATE $3,351 055.84

$7,815, 581. II

This Statement of Policy is of Interest to Every Real Estate

Buyer Seller and Investor:

In the conduct of our business, we pursue a well formulated and consistent policy which makes our company distinctive and sets it apart from most other concerns having to do with the real estate business in Shanghai As we attribute the success of the company and its constant growth in good will to our observance of this policy and as we have no intention of, deviating from it in the future we feel that we owe it to our share-holders. to make a definite statement as to what that policy consists of

The basic principle of the policy lies in the fact that we are realtors, or real estate agents. As such we act as the medium for bringing together buyers and sellers, receiving our compensation from the commissions received on sales which are made. We only purchase land for resale in the case of a forced sale or sale made under circumstances where it is possible to make a purchase for quick resale at a satisfactory profit. In making these purchases for our own account, we have always been guided and actuated by two principles. THE FIRST IS THAT WE ARE, IN NONE OF OUR ACTIVITIES. IN COM. PETITION WITH OUR CLIENTS, and we do not purchase for ourselves a property desired by a customer The second is that, WE ARE NOT SPECULATORS IN REAL ESTATE

We do not make purchases in anticipation of profits which might come from increased

---CUT OUT & MAIL TODAY--

China Realty Company.

Secretary,

70, Szechuen Rond, Shanghai.

Dear Sir,

Please send me without obliga- tion on my part a copy of your last balance sheet and other information regarding your 8% debenture issue Name

Addreas

values of the future, except when from advance information of improvements, and or, strategic locations with no prospective buyers, and then we purchase with the basic idea of a quick turnover with reasonable profits to the company, allowing clients to make money

THIS POLICY IS BASED ON SOUND BUSINESS REASONS. WE ARE DEALERS IN, NOT PURCHASERS OF, REAL ESTATE AND AS DEALERS IT IS OUR FIRST DUTY TO SERVE OUR CLIENTS. If instead of handing on to our clients the choice purchases which are available, we took the bargains for ourselves, we would be betraying their con- fidence and would lose the position of trust we hold to-day and cease to be THE REAL ESTATE MARKET PLACE OF SHANGHAI. When a prospective purchaser of real estate comes to us. he may rest assured that our honest duty to help him make the best invest- ment possible is not obscured by any desire on our part to build up real estate holdings

for ourselves

The volume of real estate sales we have negotiated, the increasing number of investors who come to us unsolicited as the natural and logical place to come when wishing to invest in real estate shows that a very large portion of the investing public is familiar with our policy and appreciates how its con- sistent application safeguards their interests.

This is No. 16 of a series of advertisements issued to interest Hongkong investors in the liberal investment opportunities offered by the China Realty Company. Shanghai,

Value of Real Estate held in comparison with other assets

The major portion of the assets of this company are invested in REAL ESTATE MORTGAGES as we do not invest in real estate except for quick resale or at forced sale prices which ensure a resale at a profit. Although we administer over 200 estates, collecting as rentals over Tis. 2,000,000 a year, we have no rental property of our own.

The proceeds secured from the sale of our 8% debentures as well as the greater part of our own common stock is invested in real estate mortgages. We have been investing money in mortgages for more than twenty years and because of the care with which the security is appraised and the terms arranged EVERY CENT OF PRINCIPAL AND INTEREST HAS BEEN REPAID.

During 1931 we negotiated mortgages amounting to Tls. 19,194,868 on property valued at over Tis. 35,550,000 the amount loaned Of this Tis: representing less than 54% of the value of the property. 19,194,868 mortgages Tis. 11,915,311 were assigned to investors. The average rate of interest was 9.33% and our commissions It will be seen by these figures amounted to Tls. 146,825 or 0.765%.

that on the basis that this company operates it could afford to pay 8% interest on the volume of the business of 1931 and make a profit

of approximately Tls. 399,525.

Can

An investor wants to know two things about an investment. the company in which he is investing money carn sufficient to pay the dividends promised? What is the security in the form of cash and property back of the investment?

The above figures answer these two questions very convincingly so far as the China Realty Company is concerned. Not only does care- ful and efficient management of mortgages make it possible for us to pay 8% interest and still make a very satisfactory profit, but the security behind the debentures is unusually ample. Debentures are sold on the undertaking that the total issue shall not exceed 60% of the total capital of the company, The position of the debenture holders of this company as of December 31, 1931 is, that the deben- tures are secured by 1st mortgages on real estate on which 54% of the demand value has been loaned, and in addition has the further security of Tis. 5,000,000 capital.

CHINA REALTY COMPANY

CAPITAL TAELS 5,000,000.00

FEDERAL INC..

~THE REAL ESTATE MARKET PLACE OF SHANGHAI -

70

SZECHUE

N

5 HANGHAE

CHIN

9