The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-27
AMERICAN CAR AND
FOUNDRY NET GAINS
Earnings, After Charges, for
Year Ended on April 80
Total $9,871,813.
PROFITS ALSO INCREASE
Presidents Report Contains q
Strong Plea for Fair Laws
for Railroads.

The annual report of the American
Car and Foundry Company for It's fiscal
ysat ended April 80, 1919. made public
Yesterday, shows net earnings. after all
charges. taxes and preferred dividends.
Of se,t7l,s13. or ssa23 a share on Its
common stock, which represents sub
,tantlal Increase compared with ss.1s1.-
IA. or 5000 q share earned on the
common in the Immediately preceding
fscal year. Taxes for the last fiscal
year arc estimated by the company at
shout S24,475, 900, and thus It's net earn
ihgs before taxes were equal to s1lt
share on the common.
The total profit from operations OF the
fiscal year Just closed, after making
provision for Federal taxes, was si7.-
,fsl72 against $lS,+61,s23 in the last
preceding fiscal year. Charges for re-
6ewaL repairs and other similar charges
we're not greatly changed ut $500, 900.
making the net profit before dividends
On the preferred Srl,771,s13, an increase
Of nearly 100000. Preferred dividends
totalled 't2.lo0,ooD and common divi-
dends 100000. making the nnal bal
ancs before reserves s7,27l,S13. The
sum Of S3,0o0,0 900 was added TO the
maintenance and Improvement reserve
and another reserve Of 100000 for
common dividends was established, max
ing the total 100000 for three years
dividends Of 8 per cent. on the common.
The previous surplus was 32s.452.707
and the 1919 surplus s1.s7l,81S. making
the total surplus on April 80 Ssl.3s4.520.
At the beginning OF the last fiscal
year, according to the remarks OF w. II.
Ito all ~ a.
had $3.50, o0o, 900 Of business OF It's books
BY reason Of the cancellation, or sus-
pension, In whole or I'm part, Of various
Of It's contracts with the Government"
he added. ,"consequent upon the cessation
OF hostilities. II was unable to complete
q considera BILE portion of the business
booked. Nevertheless the volume Of
business done during the year was large
much greater than ever before in the
companys history. -,......
The uncertainty OF the Governmental
policy with respect TO railroads renders
impossible at this writing any foreces.
as to what business may be expected dur
ing the year now current in the way
OF equipment for domestic use, There
IL and undoubtedly will continue 20 be
a demand for the company's products
from foreign countries. Such dema nd
is likely to be large and insistant-
larger and more insistent than can for
some time to come be met by its own
facilities for production. This will open
Up new problems for finance and OF
credit. but there 10 no reaeon to believe
thai these problems cannot be solved or
that the company will not be able to
obtain its fair share Of the business.
During the fiscal year Just closed or
d.rs for 10000 cars for Italy and for
1850 for India were booked. 1t has
been stated that the company had taken
over the National Steel Car Company
al Hamilton. Ontario, The mana cement
iid have under serious consideration a
proposition involving the addition OF the
manufacturing capacity Of that COM
pany to Its own, but It was impossible
to arrive at satisfactory basis on
which the transaction might be con-
Guided and the matter was dropped
without commitments on either side.
President Wilson has said that the
roads will be returned to private owner
ship before the close of the current year,
but their ultimate disposition rests with
Congress. So long as that remains un-
certain so long 1t is likely there will be
lack Of activity In the buying Of
equipment for domestic use. At the
heart OF the problem lies the question.
Shall the $500 railroads OF the country.
representing investment OF $1,000. o00,-
900, be compelled to continue to fur
nish transportation at a price not fun
damentaliy based on the cost Of the pro-
duction OF that commodity? There can
be but one answer. Whether the rem
.dy for the anomalous condition now ex-
istins and which has existed for the past
decade shall be found In Governmental
ownership. In continuance Of Govern
mental operation, in Governmental
guarantee. in q Federal railroad incor-
poration act or In consolidation OF all
roads into q limited number OF systems
II Is a fact demonstrated by experience
and not to be lost sight OF that the
power to make rates should not be In
trusted TO any body Of men not to be
held accountable for adequacy OF rates
made. The people have the right TO ex-
pect that Congress will not adjourn
without making a fnal decision fair tc
roads, to owners OF their securities and
to commarcA and industry directly OF