I2i . Ti Tai LIBRARY OF CONGRESS 014 432 942 9 # iiiiiiiiiiiiiiiiiiiiiniiiiiiMLLiiiiiniiiri IIIIIMMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIII 50 Feet Higher than Niagara TAUGHANNOCK FALLS The Mecca for Tourists Seeking the Unusual Unrivaled for iMajestic, Rugged 'beauty TAUGHANXOCK DEVELOPMENjT CORPORATION ITHACA, N. Y. ijiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiriiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiniiiiiiiiiiii ri^c| Announcing the Offering of the PREFERRED SHARES 0/ ilie TAUGHANNOCK DEVELOPMENT CORPORATION (A company incorporated under the laws of the State of New York) William B. VanFleet Presiden t Ralph L. Chase Secretary-Treasurer CAPITALIZATION Capital Stock $150,000, consisting of PREFERRED— 7500 shares— par value $10 each COMMON —7500 shares— par value $10 each All stock fully paid and non-assessable Subject to prior sale and advance in price this issue of FULLY PARTICIPATING PREFERRED SHARES is offered at $10 PER SHARE, PAYING A PREFERRED DIVIDEND OF 8% ANNUALLY PREFERRED AS TO ASSETS AND DIVIDENDS MAP SHOWWC THE PROPERTY OF THE TAUGHANfNOCK DEVELOPMEN T CORPORATION ITHACA , New York Bo^^zi"'-^ ^^^A/c^- RECEIVED iniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniii JOHNSON CITV PU iiiiiiiilD©i®t9w^f)jiYg"lJ'j'''>',''^','l!l!'I^'"'j ' iiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiMiiiiiiiii iiiiiiiiiiiiiiiiiiiiiriiiiiiriiijiijiiiiiiiiiijiiiiiiiiiiii View of Cayuga Lake's 40 Mile Expanse from Corporation's Property Taughannock Development Corporation Ithaca, N. Y. In connection with our offering the Preferred shares of the TAUGHANNOCK DEVELOPMENT CORPORATION, we take pleasure in furnishing the investing public with the following information: HISTORY THE TAUGHANNOCK DEVELOPMENT COR- PORATION was organized by the present Directors in September, 1922. The main offices of the Company are maintained at Ithaca, New York, where the busi- ness of the Corporation is carried on. At the time of organization three considerable parcels of real estate were acquired by the Company, which are described more fully hereinafter. CAPITALIZATION The Company's authorized capital is .$150,000, par value of shares $10 each, of which 7,500 shares are Preferred and 7,500 are Common. The Preferred shares are preferred as to assets and guaranteed first participation in dividends up to a total of not less than 8% a year before the Common shares are to receive any dividends and the Common may then receive 5% annually. Any earnings above 8% on Preferred and 5% on Common to be equally divided between Preferred and Common shares. The entire amount of Common shares have al- ready been subscribed for by the Directors of the Cor- poration and approximately 100 shares of the Pre- ferred are outstanding at this time. luiMiiiMniimiiiiiiiMiiiiiiiiniiiiiiiiMniiimMin iMiiiiiiiiiiii IIIINIIII tllllllll < riiiiiiiiriinir inn nil iinin iiinniiininnni iinnnninnnniiiiciiiniMiiiiiiiniiiniiiinii REALTY HOLDINGS OF THE CORPORATION The real estate holdings of the Corporation are located at Taughannock Falls, Tompkins County, ; New York, and consist of approximately 41 acres of ; land, the greater part of which is covered with virgin pine and hemlock timber. Through the center of the i property flows a stream of water which for ages has i been wearing its way through rocky formation of the i earth, thus forming an immense cavernous gorge of an average depth of about four hundred feet. At a point approximately in the center of the gorge the stream leaps from a massive limestone ledge to take an abrupt plunge of 215 feet to the bottom of the canyon below. This wonderful cataract known by its Indian name "Taughannock" is one of the world's highest waterfalls, being 50 feet higher than Niagara Falls and as unquestionably surpassing Niagara in beauty as it does in height. So transcendent is the beauty of Taughannock that it is said by many of the uncounted thousands of tourists who visit the spot annually, to be not only unsurpassed by anything to be found on this conti- nent, but to rival anything to be found abroad as well. This property is located in one of the most beau- tiful and accessable portions of New York State: only a few hours drive from the largest centers of popu- lation, in a section known as the "Finger Lake Re- gion." Lying only ten miles north of Ithaca, the home of Cornell University, on the west side of Cayuga Lake, it is easily reached by state roads which lead to it from almost every direction. The real estate described above lies in such a manner that it is practically impossible for anyone to obtain a view of the falls without coming on the property. ASSETS The Corporation's assets after financing has been completed will consist of — Buildings and Equipment — Conservatively esti- mated at $50,000 Timber — It is the consensus of opinion among those familiar with estimating lumber on the stump (uncut trees) that the timber on the property would cut at least 25,000 board feet of lumber worth at least $25 a thousand feet as it stands or twice this amount when cut and sawed. In other words by ultra conservative estimate it is worth $6,250 as it now stands or $12,500 when ready for market. iniininnnniiiiiiiinniiiniiniininininnnniiininininniiinininiinnii inii inininiiniinniiniini iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiii iiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiii Looking over the brink of Taughannock, down the gorge Land — to arrive at a conservative approximate value of the land it is necessary to keep in mind the purpose for which the Corporation intends to use it. The State Park Commission of New York has for some time been interested in acquiring it for State Park purposes. With the advent of the pro- posed state park bond issue, which is now contem- plated, these plans will undoubtedly be carried out. Such activities on the part of the State will be of great advantage to the Corporation, due to the greatly increased number of people who will be at- tracted to the spot. Due to its unparalleled location as a summer re- sort confining as it does every practical avenue of approach used by thousands of sightseers who visit the great waterfall, no advantageous view of the falls being obtainable except from the property owned by the Corporation, we feel that we are extremely con- servative in estimating its value at $25,000. Commercial possibilities of the Waterfall — while it is not the object of the Corporation to develop the commercial possibilities of the waterfall the Di- rectors fully realize its great value from this stand- point. In the future this will probably be of greater value as the demand for electric power becomes more acute. However, this portion of the property and the various water rights which go with it were ac- quired to protect the Corporation from the pos- sibility of it being used for this purpose by other interests to the great disadvantage of the Corporation. For this reason it is carried on the books at only $10,000 at which figure one of the large electric com- panies held an option on it for many years. iiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiniiiiiiiiiiiiitiiiiiiiiii iriiiiiiiiiiiiiiiiiiiiiriirHniiiLiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiniiiinriiiiiiiiiiiiiiMiiiiiiiMiiiiiMiiiiiiiiiri PURPOSE OF CAPITALIZATION For a great many years hotels have been success- fully operated at Taughannock Falls, each in turn having been replaced by a larger and more modern structure. These hotels proved very profitable for their owners, however, the last a large wooden structure was destroyed by fire. Now with the constantly increasing thousands of tourists who visit the spot yearly, there is every reason to believe a new and modern hotel will be much more profitable than any of the others. The Directors have plans completed for a new fire proof hotel and summer resort, and in addition will build a considerable number of summer cottages and bungalows to provide for guests who are stay- ing for some time and prefer these accommodations. All the cottages will be under regular hotel manage- ment, that is they will be cared for by employees ot the hotel and the guests will have their meals at the main building. This plan has proven very successful at other places and the Directors have found they may expect larger returns for the same amount ot capital invested with this plan than by the usual hotel plan. Very accurate figures based on contractors' esti- mates and covering every possible phase of building and equipping, have been compiled. To raise the capital necessary to complete the above outlined plan of development the Corporation is offering 7,500 shares of S% Participating Preferred Stock. SECURITY OF PRINCIPAL Security of principal can be measured in but one way, to know that back of each dollar of the share-- holders' money is something of equal tangible value.i There positively is no other way to compute perfect safety. The investor in the Preferred shares of thei Taughannock Development Corporation has the satis-t faction of knowing that as soon as the present plansn of financing and building- are completed, every dollam of his money is backed by at least a dollar's worth of the most tangible asset in the world, real estate. CERTAINTY OF INCOME The hotel business ranks among the most conserv- ative and most profitable enterprise in history. It is a business from which large profits have always been taken, yet under proper management it will show even larger profits today than ever before. iiiiiiiiiiiiiiiiiiiiiiiiiiriiiniiiii 1 1 II I III I iiiiiiiiiniiiiiiin mil I III! Ill I II II Ml I II rill 11 II nun III nil nil III III I II Vlagnificent as is this view of the gorge above the falls, the scenery below the cataract Is even more rugged and inspiring. Properly managed and well appointed hotels, luipported largely by tourists trade, have within the ipast few years become one of the most profitable ines of modern business. Many hotels profitably conducted along such I lines have little in way of location to attract the tour- list and must depend largely upon advertising to [assure their patronage, and where ever one can be found amid unusually attractive surroundings the (Possibilities are unlimited. The property owned by the Corporation repre- sents one of the finest locations of this nature to be found anywhere throughout the eastern states. During the season of 1922 there were thousands upon thousands of tourists on the property who would have been glad to patronize a hotel had one been in operation here. The ideal location and the natural resources of the property, together with the low capitalization of the company will make it easily possible to pay all dividend requirements with reasonable assurance of large surplus earnings as well. MANAGEMENT Fully realizing the importance of proper man- agement the Directors are taking every precaution in their selection of a capable and successful hotel manager. The Directors have a man in view for this position who has made a wonderful success of hotel manage- ment and is at present managing one of the largest hotels of Central New York. This man believes that there is an opportunity at Taughannock Falls for one of the best paying hotels in the country. nnniinnniiiinninniiiniinnni lllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllililllllllllliiri IIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIItlllllllll FUTURE POSSIBILITIES The degree of perfect safety based upon the realty holdings of the Corporation, which so adequately pro- tect the investor in the Preferred shares of the Taughannock Development Corporation, is not the only unusually attractive feature of this issue. Please remember that this issue of Preferred shares not only carries with it the usual points of preference of Preferred over Common shares but that it fully par- ticipates in the earnings of the enterprise as well, even to a greater extent than does the Common shares, a feature seldom if ever incorporated in Preferred shares, when they are backed by tangible assets, and a most unusual feature indeed when as in this case, the Corporation has as tangible an asset as real estate. While we have already, under the heading of "Certainty of Income" given some idea of the large earning possibilities of this enterprise, it is beyond the power of human intelligence to compute just what such earnings will be. We feel sure, however, that after contemplated improvements on the property are completed the surplus earnings will be large enough to satisfy the most exacting investor. If it were our choice of policy to paint a vivid picture of the future value of the property after it has been developed to its fullest extent, we could safely state that every dollar invested now would, within a comparatively short space of time, be worth several times as much. However, to conform with the plan of conservatism, which is the object of the Directors and the watchword of the Corporation, we will say that when our plans of development are fully carried out the valuation of the property will be far greater than the present capitalization. In conclusion let us summarize the points which make this issue of Preferred shares unusually safe and far more remunerative than the ordinary real estate first mortgage. Preferred as to assets with the Corporation own- ing real estate of greater value than the entire issue of Preferred shares with a steady increase as the business is expanded. These Preferred shares are entitled to 8% plus a full share of excess profits over dividend requirements. Small capitalization, insuring dollar for dollar behind every Preferred share. Take advantage of this unusual investment op- portunity by getting in touch with the Corporation's nearest representative. Taughannock Development Corporation Ithaca, N. Y. LIBRftRY OF CONGRESS lllllll IIIMIIIMIIIIIIIIIIIIIIIIIIII Illlllllllllllll 014 432 942 9 % 121 . TaT: LIBRARY OF CONGRESS