New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-11
EARNINGS SHOW DROP
PASS COMMON Dividend.
american Locomotive Company Di-
rectors Hopeful for Future.

In line with their conservative policy, established
at the organization of the company. the directors
of the American Locomotive Company have passed
the dividend on the common stock, which since
August 1906 has been at the rate OF per cent
year
After the meeting of the board yesterday it was
stated by the directors that while they believed
that the industries of the country gradually were
returning stronger basis, the business of the
Locomotive company would be among the last to
feel material Improvement and the return of
normal demand for its products did not appear
probable in time to avoid a material decrease in
earnings for the coming year. For these reasons
the directors announced that they believed 1t would
be better to conserve the working capital and sur
plus of the company. The regular quarterly divi-
dend of 9. per cent on the preferred stock was
declared.
The report of the company for the year ended
June 80 showed gross earnings Of s37,4s4.417.
against s49,515.4S6 IN the preceding year. and net
earnings of s4,ss6.79o, against ss,TT1,105 In the
year before. After charges there was a sur
plus Of s452674S and after dividends on the
common and preferred balance of $1s26,74S,
which compares with s1,35s.207 in 1907. In the
latter year, however. there was deducted from the
balance after preferred dividends 100000 for the
Improvement and betterment fund. as against moth
ing in the last fiscal year The surplus after
charges and the preferred dividend was equal to
lilo per cent on the common stock.
The president of the company In his report to
the stockholders says:
The last sight months Of the fiscal year were
months Of acute financial and business depres-
sion. The company fortunate however. in
having on its books orders for a large number of
locomotives. which kept its plants in operation at
nearly their full capacity until about March l.
Since that date the output of the company has
been largely reduced. and the return of normal
demand for its products does not now seem prob
able in time to avoid a material decrease In the
financial results for the ensuing year.
During the year the foreign business Of the
company has increased large number Of loco
motives having been exported to Japan. Corea,
China Europe and South America The develop
ment of business in Canada has also been salts
factory.
The balance sheet includes charge Of s1,3s2,-
Sis, representing equipment trust notes discount
ed by this company in advance of maturity, and,
there is a possible obligation in the event of
any default in payment, like amount is also
shown a contingent liability. These notes rep
resent the balance of the purchase price or loco
motives sold by the company, upon which sub
stantial cash payments were made at the time
of purchase. The notes secured by a lien
upon the locomotives and the security is ample.
Since the formation of the company Il has lost
nothing upon equipment notes
1t has seemed wise to the management TO close
permanently the locomotive works at Providence.
a than corresponding increase in the capac-
ity of the modern plants having been made. The
automobile plant is still maintained and operated
at Providence.