Every evening, Wilmington daily commercial., 1918-12-20
CAR AND FOUNDRY co.
BUSINESS GROWING
Remarkable Development in the
Past Year Breaks All
Former Records.

According to tho Wall Street Journal.
the American Car & Foundry Co. which
has an important branch in Wilmington,
has shown remarkable business develop
ment in the past year, and as n result
there NAV be a boost in the dividend
when the directors meet in March The
paper says
Since MAY |. last, the company has
been doing gross business of about $685.,
600 day, or at the rate of approximately
s300, 100000 year. Gross volume of
business in the f9l7-IS period the larg-
est in the history OF the company III, To
that time SI2l ,S39.32S. In other
words, American Car x Foundry should
handle gross business in the fiscal period
TO end April 80 next, about two and one
half times that transacted last year.
In addition 10 its domestic business, the
company has booked orders for something
like $4,000 cars for export, involving
gross of about S30,O00,0o0 Up to 1918
the company never did in any single fiscal
period anything like S30,oOOOOO export
business. Furthermore, there is every
reason to believe that American Car L
Foundry will be awarded another order
for 10000 cars for France. At the present
time the total amount Of car orders on
the company's books exceeds Sll0,0O0,-
600
American Car & Foundry has the dis
tinction of being one of the few companies
that made money out of its Russian bust
ness. This was due to the businesslike
manner in which the negotiations were
handled and the orders turned ont. A like
performance IN the case of work handled
for the United States government elected
the highest praise from Washington
The compsny is not in the least worried
about reports OF equipment contract can
cellations When the order for 81 900 cars
was awarded it last May by the Railroad
Administrations, it contained a clause
AS to cancellations which amply protects
the company. This also applies to export
business.
Earnings in 1911 ran well above seven
per cent on the common, but no change
was made In the two per cent rate. The
directors sensed a falling off IN equipment
orders. Consequently, they built up
working capital and conserved cash, but
without stintIng maintenance of plants.
The slump In railroad prosperity from
1911 to 1914 found the company prepared
for the decrease in business, just as the
period now finds 1t, working
on peace orders for rolling stock.
Then came the war. Millions of dol
lars worth of orders were waiting for
companies that could turn out shells
American Car was ready. Plants had
been built up into first-class condition
Nothing was done in hurry Orders
were accepted and turned out on time
Only one-ffth OF one per cent of the
shells contracted for was rejected.
The common stock was placed on a
straight eight per cent basis last June and
the reserve established against this pay
ment, totaled 81 100000 last May So far
as the surplus is concerned the directors
could increase the common quarterly
dividend from two per cent to % per
cent next March and set aside enough as
reserve to continue 10 per cent annual
dividend for about three years To come: or
II could easily declare an extra dividend of
10 per cent.
The following shows the expansion IN
not working c3pital since 1912.