The sun., 1919-05-28
AMERICAN WOODEN
SURPLUS DECLINES
Figures Of 1913 Are $5,572,-
527, Were $6,844,156 in
1917, Says Report.
CASH INCREASE rs HEAVY
Company Lays Aside S5,251,-
557 for Depreciation Against
$3,320,829 in 1917.

The American Wooden Company's op-
erations during 1918 resulted in a sur
plus after all charges and taxes of
*5'S72'b27. equivalent after preferred
dividends to sass share on the $780,
100000 outstanding common stock,
against surplus of s6.S44,1b6, or 5000
share. earned In the preceding year.
The company set aside s6,251.557 for de-
probation in 1918, against $3,320,s2s in
lsl7. Another item in the 1918 balance
sheet which attracted considerable at
tention In the financial district yester-
day was the heavy increase in cash,
placed at $12,560.225. against S8,715,726
In 1917 and but s1,542,s56 in 1915.
William NJ. Wood. president Of the
company, in his report to stockholders
says that the company reached the peak
of production in March, 1918. and main
tanned that rate until the armistice was
signed. During the year 1915" he told
the stockholders. the amount of Gov
eminent contracts placed with the COM
pany amounted to S102,40o.029. Almost
Immediately following the signing of the
armistice came the abrupt cancellation
OF such of these Government contracts
as remained uncompleted. Although the
adjustments of cancelled contracts were
fairly and impartially provided for. yet
the sudden cessation of the huge mill
tary demands. with the incidental mar
ket depression, contributed toward a
severe temporary depression in the
wooden business. During the last two
months Of the year prices OF wool fell 20
per cent to 35 per cent. from the enor-
mously high price levels reached during
the war. the trade naturally hes!tating
to place orders in view Of probable fur
Their declines. The business outlook,
however. for the year 1919 10 encourage
ing
Because of the war needs of the
army and navy for huge quantities Of
woollen clothing and of the difficulty in
securing suitable raw materials, early
in 1918 radical methods of handling
vools were adopted by the Federal au-
thcrties. In March, 1918. the Quarter
masters Department ruled that they
would exercise their option on wools
grading between AS and 56s imported
from South America that had been
shipped after December 80. 1917, and
that they would take over such woods
as they needed at prices 8 per cen. lower
than the prevailing prices OF July 80.
1917.
During the latter part Of April, 1918,
the Government took over all the wool
ir the United States on the basis Of
values current July 80. 1910 and re-
distributed this wool to manufacturers
of cloth for military Purposes at prices
nominally per cent. higher than those
paid by the Government to the dealer
or grower. thus establishing the high
est prices on wool ever reached in the
United States While this method Of
control rendered most difficult the prob
lem of securing wool supplies for civil
Ian purposes. 1t unQuestionably relieved
embarrassment in meeting war neces-
stiles. At the signing OF the armistice
there remained about $4,000. 900 pounds
OF wool owned by the Government and.
in addition to this. about 100, 900, 900
being negotiated for with the British
Government
TO dispose of this stock public auc-
tions were held. At first the sales were
generally unsatisfactory for the Govern
nent had not announced its upset prices.
The policy was adopted permitting only
small amounts Of. wool TO be sold with
W set prices well above the British civ
Han issue prices This condition neces-
sarily created great uncertainty in bust
ness. Later Pn the upset prices were
established on the basis OF the British
civilian issue prices which were approx
imately 70 per cent to 80 per cent.
lower than the prices at which our Gov
eminent Issued woods to manufacturers
during the war. This had a steadying
effect on the market and selling became
more active.
AT the close OF business December
81 the number OF shareholders totalled
l7,745. of whom 9,021 were men, S,o03
were women and 721 were trustees and
executors. It might be we'll to remind
Massachusetts stockholders that the
stock in your company and the dividends
thereon are tax exempt in that State.
In this connection 1t Is interesting to
note that during 1918 there was an in
crease OF S44 in the total number of
stockholders and Of this number 21l
were trustees and executors"