Norwich bulletin., 1914-10-16

their necessary results, the company's prospect for business is good.
 In arranging the present refinancing the company agreed that so long as the extension notes held by the banks re- main unpaid the board of directors of the company should be made up of eight members. of which three should be named by the bank creditors com- mittee, four should be named by the Stockholders committee, and ore should be the president of the com pany. I am satisfied that. this board will safely conserve the interests of the company and it's stockholders. To carry out this agreement a. form of proxy running to the stockholders committee is being sent. to the stock holders with this report. Following this. report, I submit a balance sheet for. the fiscal year end ing June- 3O, an income and expendi- ture account a statement of the bond company a condenced balance sheet as of June 30, 1914,- and an income and expenditure account for the 12 months ending June 30. 1914, all of which ac- counts are certified to by. the account ants, Messrs. Barrow, Wade, Guthrie & company. ss .e I would like to explain in more, de- tail certain figures of the sabove Aac-, counts. E In the annual report submitted to you under edate of June 30. 1912, the value of our plant account showed as sS,263,612.5s. In the report to the stockholders under date of May 20, 1913, the baalnce sheet as certified. to by the accountants, Messrs. Barrow, Wade, Guthrie & company, showed our plant account at a value of $6,055,-i 414.47, or a decrease of $2,20S. .198. Il. This valuation of the accountants was based on the tentative appraisal of the Manufacturers Mutual Fire Insur- ance companies. No properacharge for depreciation had been made. for a se- ries of years, and as the decrease seemed drastic it was deemed wise to have a proper appraisal made by the American Appraisal company. That company has made thorough ap- praisaI of all4 the plants, taking into consideration the original cost the cost Of freight and erection, with prop CT depreciation. and the figures, as per our balance sheets of June 30, 1914, show $6,312,765.46, or an increase of $257.351.99 over the figures submitted to. you in the circular letter of May 20, 1913. Based on my knowledge of the situation, I should consider the f1g- ures of the American Appraisal com pany to represent about the true value of our plants.
 We expended the sum of $221, ,047 in repains during the fiscal year and for the same period added S84466 of new
  in my judgment, absolutely necessary for the proper maintenance and re- Mobilization of the plants, and neces- sary for the proper and economical Handling of our work. The effect of this is shown in a largely reduced cost of production, and I can say with some degree of confidence that I consider the plants today in better physical condition than they have been for several years past.
 | {.
 { During the past year the company has finished 229, ,722, ,765 yards, de- crease of 8,765.799 yards from the pre- vious year, but our gross income from production, notwithstanding the de- creased yardage. shows an increase of $S.912.40 over the previous year.
 The earnings of the company for the hscal year ending June 30, 1914. as certified to by Messrs Barrow, Wade. Guthrie & company. are $232,s4444 as compared with loss of $6s, ,536.6s for the previous year.
 call to the attention of the stock holders, in connection with the en- closed proxy. the circular of the stock holders committee, which will he report. 7i - In conclusion, I. desire to express to the stockholders the appreciation of the management of the company of the support given to it during the trying period from which believe the com pany has now safely emerged.
 Income and Expenditure. l The statement of income and ex- penditarelsof the United States Finish ing company for the fiscal year ending | June 30, 1914, was given as follows: | Good finished, yards ...... 229, ,722, ,765 Cross income from produc-