South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-02-28
BIC GAINS SHOWN
BY STUDEBAKERS
Business For Past Year
Amounted to Over $685.
100000 Report Shows.


Aggregate net sales OF the Stude-
baker corporation for the year of
1915 were $52,539,OO6. as shown
by the fifth annual report issued to
the stockholders Monday. This total
is a gain OF $1&O94.7s2.S2, an in
crease of SOL per cent over the pre-
vious years. when the total sales
amounted TO SAB, .223.41.
The net profits for the year after
deductions for depreciation and af-
ter payment of interest, were $9,067,-
425.2S, as compared with $4,S44,-
668.73 in 1914. This showed a gain
of S4.222,76155 or an increase Of
S7.2 per cent.
The report says: 'Deducting the
payment Of the seven per cent
dividends on preferred stock, the
net profits remaining for the COM
mon stock amounted 10 29.5 per cent
last year. as against 14.2 per cent in
1914. based on a total of $27,931.-
500 common stock which was out
standing during all OF 1914 and IL
months of 1915"
The aggregate sales mentioned,
the report sets out, includes all but
$13,OOO.OO0 in 1915, and 100000
in 1914 for war orders. These fig
ures are given in the report TO show
that the volume of business and
profits are coming from steady
sources.
Sold 46,4s5 Cars.
There were 46.4S5 Studebaker cars
sold last year while in 1911 there
were only %, 500 automobiles sold.
over 80 per cent of last years out
put was delivered to regular GUS
toners in the United States, the re-
mainder going TO regular customers
in export markets, with the excep-
ton of about 1900 machines going
TO foreign governments for hospital
and other PURPOSES. The increase
in the volume Of the automobile
sales over 1914 was rs per cent,
but in the number of cars disposed
of there was a gain OF 2.S1 per cent.
In the vehicle department bust
was only so per cent of the normal.
orders from foreign governments for
transport wagons, harness and the
like, kept this department up TO the
normal, the report said.
Bonds Are Paid on.
That an effort was being made to
clean up the outstanding indebted
ness is revealed in the report. In
regard to this matter, the report
says:
I'VE determined to discharge the
entire Indebtedness Of the corpora
ton, except current accounts, and
accordingly, all outstanding notes
payable and maturing serial notes
were paid and over $4,000, 600 serial
notes maturing from 1916 TO 1922
inclusive were purchased in the
open market and cancelled. Ii be-
ing impossible to purchase the re-
naming serial notes, the directors
voted on oct. Is to exercise their
option and call the balance out
$2,3O5,0OO, for payment on
the first possible semi-annual inter
est date. namely. March l. 1916, and
also, TO issue and sell to stock holders
2O,6S4 shares Of common stock then
held in the treasury, at S11O per
share, and 70 use the proceeds from
said sale in retiring the notes. This
stock was duly sold for S2.324.-
46S4O, and the amount received in
excess of par was credited TO sur
plus account.
Out Of the profits of the year we
set aside as an insurance fund for
future use. in case it should be need
ed, the sum OF S1,5O0,OOO which
stands credited TO special reserve for
future contingencies account
The assets listed are S5,s1O,O62.O5.
Cut Working Hours.
The operating hours Of the South
Bend division, the report points out.
will be reduced on March / this
year SO hours a week to 80
hours. Corresponding increase in
wages for these employees is prom
ised ION July l, we adopted the
Equitable Life Insurance plan under
which all factory employees at South
Bend, Detroit and Walkerville re-
Ceive free life insurance policies
without examination or discrimina-
ton on account of age" the report
says.
The total investment of the three
plants totaled $13,743.1OL19. de-
Quoting depreciation credits. leaving
a new investment on Dec. 81, 1915,
of S12,4OO,493.29.