Daily capital journal. (Salem, Oregon) 1903-1919, 1917-10-27
Maxwell Company Earns
Over Five and Half Millions


Net earnings of 5,507 ,69701 are sci
forth in the annual report of the Max
well Motor company, Inc, for the fis
cal year ended July 81, 1917.
These net earnings, with the undivid
ed surplus of $5,5lO,775.S6, give to-
tai corporate surplus of $11, ,01S, ,472.37
The annual report of PRESIDENT Wal
ter E. Flanders says:
Detroit, Mich, Sept. Is, 1917
'To the Stockholders
"The fourth annual report of the
Maxwell Motor company, Inc, for the
year ended July 81, 1917, is herewith
submitted.
"The net earnings of the company,
as shown by the accompanying state
ment of West & Flint, certified public
accountants of New York, amount to
$5.507 ,697 .01 after deducting a corpora
tion income tax of per cent and with
out any deduction for an excess prof
its tax.
Irregular quarterly dividends of
] "a per cent have been paid on the
first preferred stock durinp the past
fiscal year. Four quarterly dividends
Of IL per cent each were paid on the
second preferred stock ON October 2,
1916, January 2, 1917, April 2, 1917,
and July 2. 1917. Four quarterly divi-
dends of 215 per cent each were paid
on the common stock on October 2,
1916, January 2, 1917, April 2, 1917,
and July 2, 1917.
because of the uncertainty of the
excess profits tax which is still un-
determined by congress, and to con-
serve the company cash assets and
provide the proper quantity of raw ma
terials for future manufacturing opera
tions, it was deemed advisable at the
directors meeting of August IA, 1917,
to pass the dividend on the second
preferred and common stock.
"The number of cars sold by us dur
ing the past fiscal year shows an in
crease of thirty nine per cent over
sales the previous year.
"The net working assets of the CON
pany and its subsidiaries at the close
of it's fourth fiscal year are $12,2S0,-
97705. The inventories have been
taken at actual cost; we have no OBJ
solete materials of any kind in our
factories. The present market price of
the inventory is considerably larger
than the amount shown on the books.
"The American Appraisal company
has just completed an appraisal of
our real estate, plants and machinery
in which it states that these items rs
carried on our books are conservative
and substantially correct. { A copy of
the report of the American Appraisal
is printed in this annual
statement.)
"'The American Appraisal company
in special report which is on file in
our office, advise us that the net sound
or present day values of these prop
critics (after deducting depreciation re-
serve Of 1924, ,296.00) is $8,3O5, 5,398.45
or $4,000, ,650.39 more than the net fig
ures at which we carry them on our
books.
"Sales contracts with distributors
have been signed for 80 per cent more
of all models than had
been contracted for at the same period
last year Sales contracts received to
date also indicate that we will find u
ready market for all of the one ton
trucks that we will be able to mana
facture during the next fiscal year.
'l'Folowing this report are the profit
and loss account, containing addition
al information as to the results of the
years operations, and the balance
sheet"
Maxwell Motor Company, Inc,
WALTER L. FLANDERS,
Presidet