New-York tribune., 1918-02-09
Am. Locomotives
Profits Larger ON
Regular Orders
Company Cleaned Up Mu-
nitions Contracts in Last
Half of 1917

Munitions contracts taken on by the
American Locomotive Company during
the early period Of the war have prac-
tically all been cleaned up in the last
six months. Most of the company's
earnings for the half year ended De-
cember 81 last, according to report
issued by the directors yesterday, were
derived from the building Of locomo
tives. OF the $6010,000 earned within
that period the profits from war con-
tracts amounted to only S439,376. For
the corresponding period of 1916 net
earnings of $5,453,334 included profits
of S3,663,520 On munitions work.
S. L.. Schoonmaker, chairman Of the
board of directors, stated that the loco
motive output for the last half of 1917
was practically all obtained from the
Schenectady, Brooks, Pittsburgh and
Cooke plants, which collectively repre-
sent about 70 per cent of the companys
capacity. The Richmond and Montreal
plants of the company, which had been
engaged exclusively on munitions work
since 1915, finished their munitions
contracts in July and August, 1917, and
the work of restoring those plants for
locomotive manufacture was completed
during October, 1917. The cost of this
restoration work has been charged to
reserve created for this purpose out of
previous years profits.
Operating Expenses Cut Down
The gross earnings of the company
fo the last half of 1917 totalled $685.
1926, a decrease of $1,9O4,468 COM
n bo +ho
spending period of the previous year.
The increase of $556,675 in net profits
was due to reduction of $670,981 in
operating expenses and depreciation
charges.
From the six months net earnings,
$2,040,758 was set aside as reserve
for United States war profits income
and excess profits taxes and the Cap-
adian business profits tax, against a
deduction of 81 1922 800 in the last half
of 1916. The balance available for divi-
dends from the 1917 SIX months earn
ings was $3,969251, an increase of
plus after dividend allowances was
S2,469, ,251, compared with S2,130,834 for
the six months ended December 81,
1916.
The amount of money in inventories
of materials and work in progress on
December 81, last, was $27,830,295. In
the largest year of business prior to
the war the amount of such inventories
was about S11 100000. The increase of
about $16,800,0O0 was attributed to the
higher cost Of materials and labor, and
also to the Encouragement of the COM
pany's locomotive production schedules
to meet the war requirements Of this
country.
Russian Contract Adjusted
The company received from the
United States government on July "a,
1917 a contract for 150 locomotives
to be used in France for the trans
portation Of troops and supplies. These
locomotives were completed during the
months of September and October,
1917
Owing to the unsettled conditions
in Russia the management thought it
wise to obtain an adjustment of the
contract made in July, 1917, with the
Russian government for 250 locomo- :
tives, and with the aid of the United
States government an adjustment has
recently been effected, which, the di-
rectors, in view Of all conditions, re-
oard as salts c+orv to the cOmpanv