New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-08-12
Teuton Chemical
Trust Increases
Capital Stock
Enlarges Plants FOR Peace Trade
After Making Big 1917
FRONTS

The year 1917 was a per,ad of intense
activity in Germany for the chemical
industry, according to statements by
the German press, quoted by ''The Brit
ish Board of Trade Jouina,." Expsnd-
ing military and economic needs made
it necessary to enlarge plants and in
crease capitalization. The companies
in the great German chemical combine
raised their aggregate capital 178,6oO-
900 marks to total of 1853, 100000
marks before the stringent regulation
against capital increases went into ef-
feet. At normal exchange German
mark is worth S023S in United States
currency.
Part of the addition; 'apital was
expanded for construction of new
plant for the production of nitrates.
Another object, it is stated, to be OBJ
tanned by the capital increase was TO
water down the stock and check the
rise of dividends" AS the companies
had capacity orders to fll at high
prices, profits were lar Stockhold-
ers were given the option OF taking up
new shares at 1O7 per cent, figure
making the acquisition profitable, in
view of the high stock exchange quo
tations for chemical company shares.
AS regards profits, tn ,se shown on
balance sheets did not include all the
gain. There were alsc visible Profits
in the form of sums p, fly @.ritten on
and partly put to re erve, ifcludms
considerable amounts I aside tor ms
war profits tax.
Gross and Net Pr, It's in 1917
For the six compan IS surveyed py
the "Frankfurter lei Jung" (Hocnss
Badische Anilin, Ba er, A.-G. iur
Naturalization, riesheim sau
Weiler-ter-Meer) the ross profits iof
1917 were 1874, 100000 arks, being IL
100000 marks in exec S Of those ~.
1916. The amounts WI ten on tocsa'eo
IS, 900 marks. SHOW : an lncIeass
of 100000 marks ov the figure ioi
1916. The frankfurt Leitung or
serves that doubtless further cons'a'
cradle sums must have been wriL.sn
off which do not appear in the paisnss
sheets. The German chemical VOL
have always adopted the policy OF ma;
ing ample provision under this hsas,
If fact it is to chs policy that lhe'.
great strength is due. During tne ~ We
they have continued this course, taSins
into account, on the one hand, p1sas
depreciation. resulting from ln1ensn~
day and night work, and, on sne osns
hand. the uncertainty OF the lusatth
and the necessity of assuring sh'o''
transition to peace conditions.
The net profits of the six concerns
rose during 1917 by 14,000,oOo ms '.a1
to 100000 marks. buy as the csprs.
involved had been increased wv.
dividend was declared for all the ovh
panes save one, which declared ~. w
same dividend as in the preceesnaasss
year. The average dividend Tor ia
was thus 1878 per cent, against ~
per cent for 1916; the actual an o 400
paid out in dividends was 63,lvo0Ss
marks, as against 53,070,00O marAs'
Will Eliminate Competition
These figures show that the chem !.sis
concerns have succeeded in nnaheiJhiy
consolidating themselves so thorous; IN
as to inspire confidence in Germany
a smooth transition to peace co .nre
tions. This confidence is all the i nav
firmly founded in that country IN a.s.n
of the agreement entered INTO p";yes
the chemical works and the explos .hs;r
group for the purpose of defining tn ssas
respective spheres of activity IN lila
period after the war. While .;t .a.
agreement will eliminate compeln.s,yy
will i' have to reckon with the s dstsr.
mined efforts of the chemical in ID cers
in enemy countries to Gus w their mar mar
man competitors from the worn AHA
kets. By way of comment on asiv
point the "Frankfurter zeitung" en-
expresses the hope that the Gef ~.
industry may emerge
sc-;cus from the struggle.