The Bridgeport evening farmer., 1914-03-13
IN FINANCIAL CIRCLES

CTzhe Barron Financial News Servdce.)
 New Y ork, March 1s-The Lorillard Tobacco Go. occupies the unique posi- ton of being the only one of the three larger manufacturing companies American Tobacco, 1ggett & Myers and Lori1lard-to show earnings bet ter than those. of the preceding year. These three companies, together with the R. J. Reynolds Go, handle practi- cally all of the straight tobacco b1si- ness done by the old American Tobac= co Go. Net of the Lori1lard Go. for the full year ended December 31 in creased $72, ,290 over the preceding year, an exceptionally good showing in view of the unusual trade condi- tions last year. The main factors that initiated against increased business and which were reflected in the re-
 ports of the American Tobacco and
 high prices of the leaf and the in
 creased competition which meant a
 big increase in expenses of expand
 ing sales of various brands
 As predicted in these columns the
 annual report of the American Sugar
 Refining Go. for the year ended De-
 cem ber 31 showed deficit after
 operations which was due to the de-
 pressed state Of the sugar market for
 the greater part of the period. Prof
 it's from operations amounted to S1,-
 015,853, compared with $4,432, 200 in
 1911. Adding income from loans and
 Investments total net revenue was
 S4184, 989, compared with $7,488 ,13O in the preceding year and $14, JOSS, ,054 in 1911. Paying the full per cent. dividend on both stocks writing off $1,127,768 for depreciation and set
 ting aside a, reserve of $856. .731, re-
 suited in a deficit for the year of s4.-
 099,475- Despite this poor showing 1t
 is iInpr obable that the dividend on the common stock will be reduced from the ' per centA rate unless the current year proves to be a. repetition of 1913. The company has strong balance sheet with $17,587,855 cash, loans Of $1,789, ,00O, receivables of s. 011,793, inventories valued at $17.- ls713, ,739, and an investment in stocks and bonds of $31, ,415, ,653.
 Central feathers plan to buy in be tween $750,000 and $1, ,000, 1000 of it's first lien 5 per cent. bonds annually with money derived from the stump age value of timber cut has been re- flected in a Az point advance in the | bonds since the plan was announced Hate in December At their present level, around 99, the bonds are only | points below the highest price
 reached in 1908. This rate of sinking 1 fund if continued throughout the life | of the bonds will retire by 1SZ D De- | tween $7,50O,OO0 and $11,O00, 900 of the $35,75e, 150, now outstanding. The provision is not a requirement. of the 1 indenture securing the bonds however, | and it's continuance is optional with
 the directors. But they have pointed 1 out that this money received from the
 sale of stumpage cannot be consider l ed as earnings available for dividends and for that reason it seems likely
 that the sinking fund will be con tinued as long as the company re-
 ceives this revenue Tn the past; this money has been used for retiring 1 United States Leather bonds, the last of which were paid off last year.
 United Gold Mines has declared g 1 dividend of $4 share Three months ! ago and a year ago $7.50 was paid
 The Old Dominion Go. of Maine owns 1 all the United Globe stock. The Old IDoninion Go. of Maine in turn re- i duced it's dividend to $1 quarterly against $1.25 previously paid. Phelps Dodge & Go. declared the regular
 quarterly dividend of $2.50 per share l and an extra dividend of $1-5O.
 It is expected that Norfolk South l ern directors will suspend dividend l payment at their meeting to be held | toward the end of this month. While it is thought by interests in close touch with the company that the | dividend of # of per cent had been
 earned, it is their belief that the man l agement has adopted the policy o1 l conserving cash resources.