New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-05
Midvale Steel
Earns - Per
Cent on Stock
Company Conserves Re-
sources to Meet After
War Conditions

The first annual report Of the MID
vale Steel and Ordnance Company LOT
the fifteen months ended December 81,
1916. issued to stockholders to-day
shows net profits. after all deductions,
including special reserves, Of S32,2l4'-
1924. which is equal to 1921 per cent
on the $780, 100000 outstanding capt.
tai stock. or S161O on each $50 share
Total net income amounted to $37'6O6'-
OH.
The consolidated balance sheet, as OF
December 81 last, gives total current
and working assets as s78,26S,93S and
total current liabilities of Sl7,6O3,3Oi,
leaving a working balance of S6O,665,-
634. The surplus account showed $685.
656.61O. from which there was deducted
S15.OOOO 900 for special depreciation,
leaving final profit and loss balance
Of slS,656,6lO.
Big Cash Holdings
Included in the report is detailed
statement Of inventories, which on De-
cember 81 totalled S33 ,422,685. Cash on
hand amounted to sl1,82S,916; custom
ers' accounts, 1851 1893, and bills and
loans receivable were s8,9s7,3s4. The
report shows that capital expenditures
for the fifteen months were sl4,Si9'o4o
out of a total authorized appropriation
of s27,1O5,673.
William (. Corey, president Of the
company, says in the report;
THE conditions which may confront
manufacturing interests in this coun-
trv on the return of peace in Europe
are the subject of much discussion
among business men generally. We
are hopeful that the vast amount OF
material wealth which has been trans
ferred to this country during the last
two years will be used for the develop
ment of domestic resources and Tor
the extension Of American trade with
the neutral nations of the world. This
would tend to stabilize trade condl-
tons.
4 Complex Problem
"The problem which confronts US
however. is so complex that 1t is only
ordinary prudence to prepare for ad-
verse trade conditions. The board OF
directors and officers of your company
are fully alive to this possible contin-
gency. and are preparing for 1t by
placing and keeping all properties IN
the highest state of efficiency and by
conserving the financial resources Of
the company.
lowing to ownership of raw ma
terials. efficiency of mill operations and
the adherence to a policy of fair deal
ing, high quality Of product and SER
vice to customers, our companies will
no doubt be able to secure a reasonable
share of domestic and export business
under any conditions which may arise
President Corey also referred to the
contracts with the British government
by the Remington Arms Company, OF
Delaware. to manufacture 100000
Lee-Enfeld rifles. At the time these
contracts were entered into normal
business conditions prevailed. Suisse
quently, however, Mr.. Corey points out,
conditions changed materially, which
rendered it necessary to modify the
terms of these contracts. In this con-
nection Mr.. Corey says, in part:
"As result the contracts were modi-
fed 80 as to provide that all manu-
featuring losses should be made good
TO the Remington Arms Company, OF
Delaware: and on behalf Of the latter
company it was arranged that it should
continue 20 manufacture rifles up to an
aggregate, including those already fin
ished Of 1,176,471, at the British gov
ernment's expense. The modified con-
tracts further provide that any add
tional rifles that may be called for by
the British government shall be manu-
featured at cost plus a profit to the
company"