The Birmingham age-herald., 1916-02-17
WINCHESTER ARMS
 COMPANY PROFITS 1. ON WAR ENORMOUS
Something of How This Concern Was Founded
 Many Years Ago
STUNNED PUBLICITY FROM BEGINNING
Oliver F. Winchester Made Repu- tation as a Manufacturer of Shirts Before Entering
 New Field
By HOLLAND

By HOLLAND
 New York, February 16.-fsnecial) The new relation of the Winchester Arms company of New Haven to the financial or money market is frequently spoken of as one of the best illustrations of the changes, sudden and very great, which the European war has made inevitable in the United States For many years this corporation has been referred to as perhaps the closest certainly the most ciose-mouthed, corporation in the United states, with possibly a single exception or course, when this characterization was made the reference was to corpora tion which did a very large business and had capitalization of million or more
 The history of this corporation previous 10 the European war is the history of the late Oliver F. Winchester He learned while a young man the trade of a car penter. He early revealed his business capacity when he undertook to carry on the business of a builder. He made curious shift from that vocation shortly after he went to Baltimore to live, for he established there mems furnishing bLSAACSss Illdlg UOW6NeTy was d SI6E in the direction of one of his greatest undertakings, for he was the first in the United States to establish the business of making mems shirts, at least upon a large scale. His manufacturing plant a great one-was located at New Haven Conn. His activity of mind led him while still widely known as manufac- turer of shirts-to study the invention of Q man who claimed to have perfected a rani6 firing r6UOlU0r MT NVinchagf6T looked far ahead, realizing that there would be a demand for repeating and rapid firing arms. He became interested in the manufacture of the Henry rifle, which met with great favor at the time of the civil war. This experience led MT Winchester to give up the manufac- ture of shirts and undertake the manu- facture of repeating arms and also of metallic cartridges. His plant in the suburbs of New Haven covered tive acres, curiously enough, the identical acres upon which the volunteers in the time of the civil war, and afterward the Connecticut state militia, camped ano drilled In the course of time, the sales men of this corporation penetrated the markets in all parts of the world, and there was visible demonstration of the fact that the output of the industry was very large and was marketed in many parts of the world, as well as in the United States.
 CLOSE-MOUTHED CORPORATION
 There, however, was little or no reveIation-or what is now known as publioity-respecting the business of this corporation. It was all the easier to preserve secrecy and taciturnity be- cause the ownership was chiefly within the family. Business men and bankers of New Haven used to speak wonder iV,e Of 1,1,ci this poration, confessing, at the same time, that no one, excepting those who of right knew, had any knowledge of the details, such as the profits, the divi- dends or the distribution of the capital stock.
 The European war brought to this corporation probably the first demand for munitions and arms that came to the United States. The business in creased so rapidly that it became diff ficult for those who controlled it ade- quately to handle it. It was necessary substantially to double the capacity of the plant and to build explosive ware houses in remote places so as to re- duce to a minimum the danger of ac- cident. It was also found necessary to build a great warehouse on the wa ter front. So 1t was that the magnitude of the business suddenly brought to it compelled certain financing, which in the aggregate represented millions Of dollars, and, therefore, such publicity as the corporation had not heretofore practiced When a corporation eontem- plates the issuing of notes or bonds, the aggregate of which may be $25,000O00, the cooperation of bankers and men of capital is necessary, and that means some publicity.
 Some very great financing is in con- temptation. The directors are now au- thorized by the stockholders to issue preferred stock even up to $25,000, 900, and common stock even up to $50,0OO,- 900. In that way, new and needed capi- tai may be obtained. It also involves considerable distribution of the stock among the public.
 Notwithstanding the earnings-which were very large-the magnitude of the business and preparations for future business made it expedient to put back the earnings gained from war orders into the business, and it is reported that the corporation also borrowed SS, 900 900, so that 1t might expand the plant and be so fortified financially as to be able to buy raw material, the az gregate of which, needed in the busi- ness for the next four of five years, is enormous.
 In financial and banking circles in New York the relation of this great
  exist, toward the money market and toward great financing is regarded as one of the best evidences no only of the magnitude and profitable character of the order from belligerent nations, but also of the necessity. if there is to be great financing, of permitting some publicity. however general it may be, respecting the affairs and the contem- plated plans of corporation. The prof. it's and the business of this corporation have increased so greatly since the European war began that 1t is com pelled to take the public into its con fidence.
 MT Winchester-farsee as he was-could never have contemplated a business of the magnitude which the corporation which bears his name is now carrying, or that this business could compel a change in the policy he adopted.