The sun., 1919-09-25
DENIES BALDWIN TO
Be RECAPITALIZED
&. NJ. vauclain, Head Of Loco
motive Company, Says Rumor
Aids Spectators.
DEFINES PRESENT POLICY
Recent Revision Of Balance
Sheet Was Made Only
to Clarity 1t.
snecinl ps,patch 10 TIE sur.

Special Despatch 10 THE sur.
PHILADELPHIA, Sept 24.--Rumors that
the Baldwin L. omotive Works is to be
recapitallzed we're emphatically denied
today by Samuel NJ Vauolain. presi-
dsnt of that corporation, who said that
nersstent circulation of that and other
reports unfortunately had promoted big
ejaculation in Baldwin stock.
Mr., Vauclain's statement, prepared in
,eply to several questions, may be taken
az conclusively stating the policy of him
sslf and those dominant in the manage
,nent of the concern, unless persons who
have bought stock on speculation are in
ownership position to enforce their ideas
through a change in management A
meeting of directors OF the corporation
Is TO be held tomorrow morning here.
The questions and Mr.. Vauclain's re-
plies follow;
O What basis. Mr.. Vauclain, is there
for the persistent report that the Bald
win Locomotive Works Is to be re-
capitalized?
A. That Is a very easy question to
snswer-there IL none.
O. You have recently revised the bal
snce sheet. What was the object OF
thatf
A. Simply to clarity II and reduce II
10 the closest statement of our condition.
For example, the depreciation reserve Of
some 100000 was charged against the
plant account, reducing that proper
tionately, the net effect being only to
reduce out total figures at the bottom
Of the sheet.
No Recapita1izing Purpose.
o-Then there is no purpose to make
that basis for recapitalizing to the
stockholders any part of the accumu-
lated surplus?
A-None whatever. All this talk
about Issuing four shares for one is
wholly without basis. but II unfortun-
ately promoted a big speculation In our
common stock.
o.-Another thing. Mr.. vauclain. how
far have you progressed with the plan
to merge all the subsidiary companies
into the parent corporRtion7'
A-That matter has not been fully
determined, but any such plan would be
merely to simplify the accounting and
not basis of disqualification.
Q.-The thought has been in some
quarters that the purpose was to make
way for some subsequent financing such
as would give the Baldwin Locomotive
Works additional working capital?
Ave have sufficient capital at pres
ent for all our needs.
Q-Your taxes for this year have
been paid without borrowing?
Ayes. Our taxes for all but the
fourth period have already been paid
and the only loan we have Is against
Liberty bonds and about to be paid off.
Q-Has no decision been reached as
TO resumption Of dividends on the COM
mon stock?
Scouts Removal Talk.
A-That Is a matter which Il Is impos-
slble to discuss at this time. 1t must
be remembered that we are working
With a dollar having 40 cents purchas-
ing power, so that it requires two and
0ne-half times as much capital to con-
duct our business as formerly.
Q.-What basis has there been for
the reiterated statement that the Phila-
delphia property would be sold and the
plant be removed to .Eddystone?
Al guess it must be the desire of
real estate operators. We cannot re-
move from Philadelphia without sacri-
hclng a large investment In equipment.
which is valuable here. but which would
be Junk II we went elsewhere. There
has been talk for forty years that the
Baldwin Locomotive Works would leave
Philadelphia, but II is still here.
Q-Is the equity value of Baldwin
Locomotive stock greater than ever
Ayes; but that all depends on go
Ing value of the plant and business of
the concern. We are here to build loco
motives at a profit and to get paid for
them. We are not going to take busi-
ness Of risky character In the future
hny moro than Wa haVa N fha M CT and
the management intends to conduct this
property as strictly business PROPOSE
ton, recognizing its duty to protect the
Investment of canital in ~