New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-04
DEFICIT OF ST, 300, 900.
AMERICAN Mailing COMPANY'S CON-
MITTEE MAKES IT'S REPORT.

DIRECTORS DECLARE DIVIDEND OF SEVEN
PER CENT IN ANTICIPATION. WHEN
ONLY THREE AND oNE-HALF
IS EARNED
Robert N. Galloway, president of the Mer-
chants National Bank; Joseph P. Ord vice
president OF the General Electric Company, and
Frederick Uhlmann, the committee appointed
last fall TO investigate the finances Of the Amer
lean Mating Company. whose stock took a SEN
sational drop last summer, yesterday made
their report to the directors of the company.
1t shows last years deficit to have been
s1300000
Instead Of there having been profits enough
last year TO pay a Z per cent dividend the
Sl4,400,000 preferred stock of the company,
there was only sufficient earnings to pay a 80
per cent dividend. 1t requires an eight-page
circular to explain it all TO the directors, but
after the matter is sifted it amounts practically
TO that.
Frederick Uhlmann, one of the investigating
committee was seen last night at the Hotel
Savoy. and in response to a request for a brief
statement with reference to the company's
financial condition as found by the investiga-
tion, he said
me company last year earned, according to
interest and all expenses $4,000 1t paid out n0G fos
ciyidends A,soo.0o, and also a discount on
eRs9sins Rs'a ss s Saif6 to
eaF OF 3a THIS goes to show that a the
for 5Gr e hear and PAID per cent The
and continued to pay on the basis of neir earnings
70 rthe first six or nine months, while the profits
Ing capital Of The cOmpan yis now more than dou
management, after existing
dated: dividend. but less than per cent can be
directors agreed that retrenchment will have TO
De effected: The new directors WIG entered the
company at the beginning of the fiscal year are
Robert hbrt NJ Galaway, John G. Jegnkins. Adam Neid-
''It should be stated with emphasis" said Mr..
Uhlmann, that this deficit of S1300oOO is not
owing to dishonest practices 1t be charged
TO paying greater dividends than the companv's
earnings warranted, based a msconception
of what the seasons earnings were likely to be-"
The officers OF the American Mating Company
are as follows: President, Charles A. Stadler;
first vice-president and general manager, c. A
Purcell: second vice-president and treasurer,
Elverton r. Chapman; general superintendent,
Seymour Scott; secretary and assistant treas
urer, Edward Merrick The directors. in addition
to the new ones already named. E. r. Chap
man. A NJ Curtiss T. L. H. Hansen, George
Neidlinger. R. R. Nunnemacher. c. =. Purcell,
Seymour Scott, c. Sohngen, c. A Stadler. c. NJ.
Warner, D. D. Weschler and A. c. linn.
The company was organized two and half
years ago under the auspices of the banking
house of Moore Schley. Elverton R. Chap
man, Of that firm, was vice-presdent and the
treasurer of the company, and Ladenburg. Thai
mann & Co. were also interested in financing it.
1t was said at the time that there too gen
a quantity Of water in the stock, but
the greater number of the concerns were
fofr in hat
earnings could be largely increased. Last spring
the Brooklyn brewer Otto Huber, demanded
permission TO examine the books OF the con-
Germ. On being refused, Mr.. Huber took the
matter in the courts. Later Frederick Uhlmann.
at the time receiver and president of the Brook
lyn Elevated Railroad Company became
stockholder. and practically forced the present
inquiry. On account of its failure in December
last to float bonds for the purposes of taking
up its floating debt the company determined
TO pass dividends for one year.
Robert NJ Galloway said last night that his
investigation had shown nothing crooked in the
management Of the company. but only injudi-
cious and unwise conduct Of its affairs. Too
much competition the chief cause of the
company's condition to-day he said. Being
asked if he expected any designations of Off
Gals, he replied that he did not. Asked if he
would be surprised should q resignation or two
follow his report, he added that he would not.
THE COMMITTEES REPORT.
The report of the Stockholders Committee
that has been investigating the affairs Of the
American Mating Company. is in part fol-
lows:
While your company has earned excess over
operating expenses, including interest on floating
debt, such earnings have been far below per cent
per annum Sls, 1900 of preferred stock Profits
were determined and dividends declared by dead
excessive values impaired working capital and in
needed Economics in general administration'
manufa curing and distributing have resulted
about 60 per cent Of all the malt required by
brewers not making their malt the prices
not iudiciously established or firmly maintained.
The new administration will endeavor 10 correct
all these evils The fiscal year will hereafter
August 81 Little profit need be
pected for the eight months ending August 81 1900
conditions which cannot be changed until the be-
ginning OF the next mailing season (crop 1900
company will be free from Improbable contracts
that * owns some of the best and most valuable
mailing plants in the country and that its prin-
cipal plants are in excellent condition and well
located for the economical production and delv-
cry of malt, it can and should be put on sound
basis: but 1t would be visionary to hope for Z per
cent annual dividends the preferred stock for
some considerable time. Allowing for the bond in
terest the sinking fund for the bonds and
prospects Of dividends for the common stock are
very The condition Of your company to
better than at any time since organization. It
should need borrow money except tempo
rarily during TOUR months IN the year. Wheh the
pany's greatest draw back is over-capitalizaon,
compared with present value and present earning
capacity. This can only be remeded by the
The statement of the company for the period
ending December 81, 1893. shows as follows: