Norwich bulletin., 1912-03-14
REPORT WILL Be READY FRIDAY
Poor Year of the McCrumHowen Company Said be the
Cause of the Slump in the Value of the Stock-What
Brokers Have to Say About 1t.

Regarding the sharp fall in the
shares of the McCrum- Howell com
pany on the Chicago Stock Exchange
to 40 and 4 respectively for the pre-
ferred and common stock, against
IS 71S and Is at the end OF last week
a representative of the banking syn
dictate which a year ago last fall Of
fered $1.156,000 of the Z per cent GU
mulative preferred stock of the COM
pany at 100 to Boston and New York
investors, says:
Il am at loss to explain the drop
In the stock issues of this company,
which I have known for six or seven
years, during which period it has ex-
rreienced uniformly successful bus
mess growth. Ownership of the bulk
Of the s3.5o0,000 preferred Is centered
in Chicago and New York, the COM
mon stock, which Is issued to the same
par amount, having been given as q
bonus with the preferred end having
during the past year been put on a
per cent dividend basis.
me dividend passing would be in
dicated by the annual report publish
ed last June, showing net earnings OF
s529,249, against $391,e0e for the year
before, and which were equivalent to
II per cent. of the present conf lon
stock; cash on hand of $270,566
against Sr33,7S9 at the end Of the pre-
ceding fiscal year, and surplus account
of Ss12,s15, against s353,1S5
Accounts Of the company have al
ways been audited by public account
nnts, It has ne bonded or mortgage in
debtedness. and has enjoyed excellent
credit at the banks While 1t is pos
sible that the company recently may
have been expanding Its operations
too rapidly. its management has been
capable, and the Sherman law Grim
inal cases against It's officials, which
the United States court has Just ruled
must go to the Jury, do not adequate
ly explain the stock market declines,
The enamelWare trade, on which these
indictments are based, involves but a
very small proportion of the COM
pany's total business, which is prin-
cipally the manufacture Of hot water
and steam radiators, hot water and
steam boilers and vacuum cleaners"
Unofficial reports are that the com
pany's fiscal year, ending soon, has not
been profitable and that dividends are
TO be passed Banking interests iden-
tilted with the company say that the
demands of the Chicago Stock Elk
change for a financial statement Of the
company's condition win be complied
with by Friday, as requested.
interests in touch with the company
say the decline in it's shares result
from calling of loans and from panic
among small holders. The company
is solvent" they state, land, although
full dividend requirements may not be
shown, the earnings have been fair
Not one of the larger, stockholders has
sold any stock"
Laid to a Poor Year.
The New York Herald said: Mem
bers of the governing committee OF
the Chicago Stock Exchange hope to
have a report on the condition Of the
McCrum- Howell company for consid-
Grafton at their meeting Friday, in re-
Spouse to request made to the Off
GERS of the concern. The preferred
stock of the company has slumped 10
caIly from 80 to as low at IS in two
weeks the low point being reached
Tuesday. The common dropped in the
same period from 40 to 4. From the
low mark Of 4 Tuesday there was q
recovery to for the common. The
preferred opened at 40, fell to 30 anC
closed at 45.