The sun., 1919-04-15
BARRETT COMPANY
NET PROFIT GAINS
Report for 1918 Gives Item as
S3,947,78B, an Increase of
81 Cents q Share.
GROSS INCOME ADVANCES
Sales During Last Two Months
Of Year Suffered Heavy
Falling OF.

WIN net safes Tor the year exceeding
ssi,sSs.6e4, or an increase OF more than
u,ooo.ooo, compared with those OF 1917,
the Barrett Company reports for 1918
net pronts, after all charges, taxes, &c.
OF ss,947,7s9. That amount, after de-
duction Of s545.122 dividends on the 7
per cent preferred, Is equivalent 10
S2o,S2 share on the outstanding com.
mon, against $2o.21 q share earned on
the common in 1917.
While the 1918 report shows n sub.
stantisl increase In net sales for that
nerioo' william II. Childs. president Of
the company. declares In IL that those
sales suffered severe dimlnution In the
last two months of the year. The COM
pany felt. as did virtually every other in
dustrial concern, the big increase in op-
Grating expenses, cost OF goods sold hay-
Ing advanced s5.0ss.748 to ss2,211,sss
In 1918. Gross profits from sales were
increased in 1918 more than $4,000, 900
from those OF the preceding year. aggre-
gazing ss.l27.s25' Other income fell of
about $4,000, and thus gross income
from all sources was s11.150,301. an in
creaye of $1,s14.430, compared with 1917.
An increase Of 800 per cent In the re-
serve for Federal taxes is one of the
startling features of the 1918 report.
That Item in the 1917 report showsd
slightly less than 100000. In 1918 the
total Federal tax reserve was $4,000, 900.
Administrative. general and selling ex-
penses In that year were s15S.000 less
and the write-off for miscellaneous
charges and losses totalled $713.505, an
increase of SCISSOR. The net income for
1918, after deduction of all OF those
charges and $175.00O In interest, was
s3,el4.253. an increase of s152.s64.
Net PROFIT shows Gain.
A writing up of ss35.72s on security
valuations as of the close of 1918 brought
the net final profit for the year up to
s3,e49.979. of which the Barrett Com
pany stockholders share was s3.947.7S3.
After payment of dividends of per
cent. on the preferred and per cent. on
the common there was transferred to
profit and loss surplus a balance of $2,-
o95,749. a decrease of sl72.744 from the
1917 figures
The balance sheet OF December 81,
1918. shows total assets and liabilities
of $54.S76.905, an increase of about
s10.000.000 from that OF the preceding
year. A large portion OF that increase
In assets. or about $3.71s,O00. is repre-
sented in inventories, with advances of
more than 100000 in the items OF cash,
marketable securities, notes and ac-
counts receivable and plans and equip
ment. The advance in liabilities is most
noticeable in the item of accounts paya-
BILE, which increased s2,575.7O6, with ad-
vances of more than 100000 in the
items for notes payable, reserve for
taxes, reserves for depreciation and sur
plus.
In 1918 current assets totalled S2s,-
b15i:4. against $21.Ss6.514. and current
liabilities $14.s76.656. against $500
0I5 leaving the net working capital on
December 81, 1918, at 314,63s,49S,
Inv ct 80
1.-THE increase in the costs of materials
and labor referred to In our circular
letter Of April l. 1915" says President
rhilds in his report. continued during
1918, and. in common with other in
dustries. the company suffered dimlnu-
ton Of sales and earnings during the last
two months of the year.
Net Earnings It's Largest.
notwithstanding these he ndtoaps. the
net earnings of the company, be fore re-
serves were Bet up to cover adjustments
OF inventories and OF income and ex-
cess profits taxes. were the largest in
the history OF the company. After pro-
vtding sufficient reserve to cover depre-
citation. amortization and for the in
creased amount of income and excess
profits taxes. the net results show
s20.s2 a share upon tho common capital
stock outstanding on January /. 1919.
which result. We trust, will be consid-
cred by our stockholders to be a salts
factory one.
''The Barrett Company and all OF its
subsidiaries and departments have con-
tinued the policy adopted at the begin
ming OF the war of complete cooperation
with the Federal Government to the
fullest extent, and have continued this
policy by the offer of Unemployment to
all Of the 700 men who entered the SER
vice.
I'm December. 1918. the directors de-
clared an extra dividend on the COM
mon stock Of / per cent, making the
rate of the dividend for 1918 per cent.
In March Of this year they declared
quarterly dividend OF per cent. which
rate they expect to be able to continue
under normal conditions
THE present financial condition OF the
Barrett Company and of all it's subsidl-
airy companies and departments is an
eminently satisfactory one and the bust
ness outlook for the future is as prom
isiOp ran ha In ,,;auy .h.