Evening journal., 1919-03-13


Atlas Powder Company. has sent
stockholders Of that corporation nj
annual report for the year ending d,
cember 81, covering its wartime bus
ness. The report shows an exceller
financial condition. with earnings dur
Ing the year equal to 3i43 per cent. o
the common stock and undlsrtbuie
profits Of si,769i90, equal TO nearly $40
2 share on the common stock Presl
dent Webster sets forth that the com
pany Is 10 excellent condition 10 handl
peace-time business. In his report d
says:
There IS submitted herewith genera
balance sheet and summary OF incom
and profit and Joss for the calendar yea
1918 OF Atlas Powder Company and 10
subsidiary companies:
The gross sales OF S3j, ,166 6l97S ex
ceed those Of previous years, but 4
should be recognized that comparison.
can hardly be made along this line a.
conditions have been abnormal I'm man,
respects. The proportion Of the gros.
sales remaining as profit after deduct
ing tne cost Of expenses Is small. but IS
result OF our entire operations we
were enabled 10 Obtain profits repre-
sehtins a return Of t2 per cent. on capi-
tai investment, and 3i53 per cent for
common stock. a substantial proper
lion OF the gross business, amounting
70 stt,6iO.33i.Is, represents operations
under contracts with the United States
Government. This work was under
taken less with a view Of profits than
10 apply the facilities OF your company
TO the needs Of the government for the
conduct Of the war.
Your company was called upon dur
Ing the period OF the war 10 furnish
large quantities Of materials for the
United states Government FOR war pur-
poses, and in addition 90 large quanti-
ties OF materials supplied from our ex-
isting plants, the facilities Of our plants
were greatly enlarged TO take care Of
lnls business, and great deal Of
special equipment was Installed The
United States Government cancelled
contracts IN December. 1918. 10 The
amount Of si5,i0oO00000. I'm addition TO
cancellations under agency contracts.
these cancellations having been made
within a month from the signing OF the
armistice. The problems involved in
the change 90 peace basis required
sound and immediate action. The plant
facilities erected and acquired during
the war period were thoroughly re-
viewed and those facilities Of no com
mercial use to us were promptly dis
mantled and facilities Of commercial
use in our future operations were
amortlzed 20 a reasonable value. Ad-
lustments were then made where
Necessary to reduce inventories OF ma
terials and supplies to market values.
Up 10 the closing month Of 1918. we
were operating our plants 10 capacity
night and day. The working assets and
liabilities on December 81 had slightly
rcceded from the maximum. Working I
assets amounting 10 Sii,355, $50 96 and |
current liabilities Including Federal |
taxes set aside from 1918 earnings |
amounting TO S5,957. .35269. Relatively /
high current liabilities were due to /
purchasing materials and supplies and /
United States Government ac- /
counts receivable in the operation Of /
government contracts. which are now |
In the course Of adjustment.
I'VE cannot forecast the immediate /
future Of business prospects. Through /
out the period Of the war, all depart /
nents Of the company have had con-
itantly IN view, the expected return
rom war to peace activities and these
departments have greatly strengthened
heir organization with a view to the
conduct Of our commercial business on
peace basis. During the past six
ears. we have greatly enlarged our
ABILITIES for commercial work The
ompany began business in 1918 with
hree high explosives plants located In
few Jersey, Michigan and Missouri. and
our black powder plants located in
'ennessee, Illinois. Oklahoma and KAN
as. In 1913 we acquired the high ex-
losives plant formerly operated by the t
'otts Powder Company at Tamaqua, ]
"a. In 1915, The Giant Powder Com I
any. Con, was acquired with high ex-
losives and black powder plants in
alifornia and British Columbia. In
PIC, we purchased the Fort Pitt Pow
cr Company, acquiring by this pur-
lase a black powder plant ia western :
ennsylvania. These purchases were
lsdc 10 enable US TO handle business in
.rritOry which we did not formerly
over and gave us the conirol OF old
nd well known brands Of explosives.
Dur ng the war period we had in
'eased out facilities for the manufac-
ire Of chemicals and to provide an
ltlet for them upon the close Of the
ar, we acquired in 9l7, the entire cap
al stock Of Richards and Company
lc., Zapon Leather Cloth Company
nd the Cenuloid Zapon Company. I
1ese companies are manufacturers OF
e highest grade Of leather cloth. lac {
lers, enamels, bronze liquids. varnish. !
nyl acetate and n tro celulose, many :
the constituent materials Of which !
e manufactured az our explosives ]
ants. The products manufactured by {
ese companies are sold under the
ade name Of "Zapon." and produced 5
a new and completely equipped plant 7
Stamford, Connecticut. c
Notwithstanding the restriction on $
,erations in many industries during
e war, our commerc' al sales OF hign q.
plosives, blasting powder. blasting !
pplles. leather cloth, lacquers and =
her 'Zapon products. were OF good n
lume. While Immediately following c
g close OF the war. the commercial q
tivities very materially declined, we
)k 10 ward with confidence 20 the 4,
iure. and IN view OF the high quality -
the products Of our factories. we n
expect continued success in Il
irketing our goods. a,
In add ton % the utilization Of our y
mt facilities for the manufacture OF II
oducts for the United States govern G
mt, the Atlas Powder Company, as o.
ny