New-York tribune., 1919-10-29


plants turned to the manufacture of
all kinds of war munitions.
Output Not Increased
The Baldwin Works to-day has un-
filled orders from Cuba, Brazil, Poland
Spain, Australia and Africa. Although
the capacity Of the plants, which are
wholly back to peace basis, was tre-
mendously increased during the strife,
the annual potential output of locomo-
tives is no greater than it was years
ago, because the size Of the locomotives
has been increased and their construc-
tlon become more complex. The Bald
win establishment is now able to pro-
duce between $500 and 5000 steam
locomotives and 500 electric locomo-
tlves every twelve months.
Mr.. Vauclain was asked what effect
the expected return Of the American
railroads to private control would
have on the equipment business.
"The REIMBURSEMENT of control by
the Federal administration" he re-
piled, would aid our business enor-
mously. There is no doubt that the
roads are underequipped and that there
is need that the long deferred orders
be placed. When the roads are back
IN private hands locomotives and other
equipment will promptly be purchased
If the financing can be arranged, and
am certain that the American pco-
pie, Will lend the money necessary to
make the railroads h gnfy efficient.
"If the roads place orders with US
shortly after the first of next year we
shall at once have to use 100 per cent
of our productive capacity"
Dividend Policy Not Settled
During the war the Baldwin COM
pany earned tremendous profits, and
yet no dividends were paid. Specula-
tors have within the last few weeks
bid the stock up to new high levels.
Many rumors accompanied the rise,
among them the possipIiity of prompt
adoption of a regular dividend and
recapitalization of the company. In
this connection Mr.. Vauclain said:
I'VE will do what is in the best in,
terests of the stockholders. We will
do nothing that will impair the value
Of their investment. For some time We
have been putting earnings back into
the company and building up great
equity. We have looked upon the COM
pany as house, and decided to keep
the foundation intact. We have pre-
ferred not to sell the stones from the
foundation just to get some money to
divide, but to keep the foundation
strong and make it still more solid.
That has been our policy and these
are the considerations which now guide
u.s."
Mr. Vauclain Wall Street mas been
hearing persistent reports for many
weeks that the baldwin directors are
seriously conslhering recapitalizing
the company. Is there any basis Of
truth in them ?"
Don't believe them. denied the
reports several weeks ago, ard | want
10 deny them just as emphatca'ly
again"
Improving Eddystone Plan.
another story that has travelled from
ticker to ticker was that the Baldwin
Works were going to sell The new
Eddystorc plant.
Regarding this, Mr.. Vauclin asserted
that the company was in fact height
ening the Importance of the Eddystone
Workshop by tranferring much Of
the machinery from the plant in
Philadelphia to il. The plant within
the city limits now makes parts only;
the assembling is done at Eddystone
The company is again solely engaged
in the manufacture Of locomotives,
and, according to its directors, it has
no scrap on its hand, as result of
its war work. Every piece of machin-
cry, which is not suited to the max
paid for by the Federal government,
and its final disposition is govern
ment problem.
At its peak Of war production Bald
win employed more than 10000 men.
Its personnel now consists Of "somc-
what under 10000"
Export Combine Not Effective
Baldwin Locomotive officials recently
conferred with officials Of the Standard
Car Company, the American Car and
Foundry Company and the American
Locomotive Company for the purpose
Of forming combination under the
Webb law for the development of for
eign business. Although it has been
was already an accomplished fact, it.
was authoritatvely learned to-day that
the project, although discussed. has
fallen through.
The two great obstacles to a boom
in the locomotive field, according to
one Of the directors, are the demorali-
zation of foregn exchange and the
failure of the railroad administration
to buy. This same <.rector said that
tremendous technical progress has re-
Gently been made in improving steam
locom olives, and that they have pro-
gressed more rapidly than electric
loccne lives. The bettcrment has been
lateral. involving perfection of all
the parts.
Trade Delegates Visit Works
Members of the commercial missions
from Circuit Britain, France, Italy and
Belgium, who are touring the country.
visited the Baldwin works. The CON
tirental nations represented VIII prob
ably buy locomotives here, If their re-
quests for large credits are granted.
Dividends
Regular Declarations
Stock &