Norwich bulletin., 1913-03-12

1 StOcKnOlQerS or the Amer1Cdn IHeT-
 mos Bottle company, the corporation
 has done an unprecedented business in l the past year ending Dec. 31, 1912. 1 Total earnings were s4S4, ,806.17 ir 1911 and reached s6sS, S,1S0.24 in 1912, a gain ! of 41.54 per cent. At the same time 1 the net has increased from 37.67 per cent. over 1911.
 Report Given.
 The following Is the annual report Your board of directors in submit l ting their report of the operations of the company for the year ended Dec. 31, 1912, desire to cali your attention to the following;
 In presenting the combined state ment of the American Thermos Bottle company (of Maine) and your subsid- Bottle company of New York, we again call your attention to the fact that the latter company is owned in it's entirety by your company and it's entire capital stock of s5o.OOO is car ried in your treasury. Therfore all of the earnings of the American Ther- mos Bottle company of New York will go to your company either in the form of royalties or dividends.
 Two Accounts Merged.
 For the purpose of comparison and in order to simplify this report the accounts of the two compan1es are merged in the appended balance sheet, income account and profit and loss statement, just as if the new company had never been organized, as was done in the last annual report for the year ended Dec. 31, 1911.
 The legal expenses for the year were $190S.26, which includes not only cost of infringen ent cases maintaining of retail prices under our patent license, but also considerable work in connec- tion with new patents covering inn provements in articles your company manufactures: also process and chimes incident nrnduCti0n connection 1t Is our belief that our pat ent protection has been very mater fally increased during the year, and that future expenditures for the ad- Judication when suits are contemplated and prosecuted, will be greatly. reduced as result of the years expenditures.
 Net Profit s11ooo5.e1.
 The combined income statement shows a net profit for the year of S11O,005-61, to which must be added contingent assets consisting of the controlling interest of the capital stock of the Thermos Bottle company, Ltd. of Canada appraised at 50 per cent. of it's par value or s25,050, and the value of bonus contract with the Norwich Industrial Improvement cor poration to the cash value of s75.000. making a grand total in the addition to the company's assets for the cur rent year of the sum of $210, ,G55.61; or slightly over $21 per share on your
 
 has been deducted from the income account the sum of s48,60296 for ad- vertising expenditures a large portion or all Of which might be properly treated as an asset, inasmuch as we charge off nothing on account of pat ent rights, good will. etc. we use this item as a proper offset, charging this item-as well as all legal expenses off in their entirety as was done last year.
 Comparison of Sales.
 We present for comparison the net annual sales for the years 1908, 1909 191O 1911 and 1912.
 Net annual sales. 1908 ..s243.2265s Net annual sales, 1909 .... 3S98e111 Net annual sales. 1910 .... 3S1, f84.o1 Net annual sales, 1911 .... 4217199s Net annual sales. 1912 .... 94,485.s1
 On the item of machinery and fix tures-owing to contemplated imme- diate removal from New York city plant to our new factory located at the intersection of the Thames river, the New York. New Haven and Hart ford railroad and Thermos avenue, at Norwich. Conn.-we have charged off Your president has recommended that in future , per cent. annually be writ ten off on the item of machinery and fixtures. We further call your at tention to the fact that under the item of deferred charges the amount ap- bearing is but $154391. as against $4S86.77 in the statement of the pre- ceding year.
 Income Account
 Income account-Your total earn ings have increased during the year from $484,s06.17 in 1911 to s6Se,1s0. in 1912 or 4154 per cent. The net income has increased 37.67 per cent. over that of 1911
 Increase Fsur-feId in Norwich.
 Attention Is called to the fact that it was impossible to produce sufficient goods during the year to fill the de- mand; this by reason of the fact that for handWork. expert glass blowers are required, of which there are limited number available. Under the super vision of your company's engineer, W R. Burrows, the semi automatic ma chimes for the production of our pro- duct have been perfected and will be used for the production of our stand ard product, thus enabling us to eIn- ploy the handworkers on special mum bers, and augmented by the large in crease in floor space and other inn proved facilities of your company's new plant our production will be in- | operations in Norwich. with ample floor space and all other re- luirements to gradually add to pro 1uction until increased tenfold of pres l ant capacity.
 The economy through the employ nent of the machines, the removing rom the expense account the item of l rent, the improved transportation fa- 1 5ilities by rail and water, the reduction | n the cost of electricity, gas, insur- | snce and carriage should ma terially in | crease the net profits of your com oany Paid Extra Expenses Out of Profits.
 Your board of directors authorizes l the expenditure of $50.0oo on new l olant-in addition to the $75,000 sup oiled by the Norwich Industrial In- l corporation-to be covered | oy the issuance of the company's | ger cent. notes to that amount. The l to the close of business 1 Dec. 31, 1912, the item referred to | were S27,777.32, which were paid from | Four profits, making it unnecessary to l ssue any of the notes thus far
 Canadian Business Promising.
 The business of Thefmos Bottle | company, Ltd, of Canada-centrolled " your company-shows a great im- over the year 1911, but oW- ng to the fact that home consunlp- ion of our product made it impossible i 6 supply them with the mercha ndise I hey required to fill orders in hand, no profits accrued but the Canadian bus I ness has been placed in a position @ that the present year gives every | fiar of I1r06ucjnp satisfactory