New-York tribune., 1919-05-28
American Wooden
Net Equals $3.50 a
) Share on Common
Profits Decreased Sharply
in 1913, Although Gross
Earnings We're Larger :;
Outlook Reported Bright

On the greatest volume of business
IN the history of the corporation. the
American Woolen Company in the wear
ended December 81 last, earned 4
surplus of $5,572, ,527, after charges and
taxes, equivalent after preferred divi
dends, to $13.86 share on the s2O.-
ooo,o0O outstanding common stock.
compared with S2o22 a share in 1917.
Net profits. according to the annual
report issued to the stockholders YES
terday, amounted to Sl2,324,OS4 against
elo'oo4,9oo the preceding year. No
1gures were given in the report as to
the amount reserved for taxes. In 1917
the tax reserve was S3,O0O,OOO. The
surplus for the year after all CHARGES
and dividends was S772,527 comparcd
with $3,044,l56 in 1917.
Cash Holdings Larger
At the end of 1918 the company had
cash on hand Of S12 $50 225, an ircrcasc
OF slightly less than s4,O0O,OOO. while
accounts receivable amounted to s14-
s33,339, compared with S24,604,299 in
l3l7 The balance sheet shows that
the company carried among it's other
assets S11, 100000 in United States
treasury tax certificates of indebted
ness A reserve for depreciation
amounting to $14,5OO.OOO was shown
in the liability column against S153o.-
600 at the end Of 1917. This reserve
was set up to meet losses or deprecia
t1on IN inventory that were expected
to follow the end Of the war.
According to William M. Wood.
president of the company, the amount
OF government contract placed with
.he corporation in 1918 amounted to
2,400,O29
The volume Of business of the com
pany, he says in his remarks to the
stockholders. "during 1913 was greatly
IN excess of that of the previous wear.
the rate Of production having reached
carly in March, the highest point in the
companys history, and, generally
speaking, the same rate having been
continued until the cessation of hosti1i-
ties in November.
Cancellations Large
Almost Immediately after the sign
ing of the armstce, came the abrunt
cancellations of such Of the govern
mcnt contracts as remained uncom
pleted. Although The adjustments OF
cancelled contracts were fairly and
impartially provided for, yet the sud
den cessation Of the huge military de-
mands, with the incidental market de-
preston, contributed toward severe
temporary depression of conditions in
the woollen business. During the last
two months Of the year prices of wool
fell 20 to 80 per cent from the enor-
mously high price levels reacEed dur.
ing the We, the trade naturally hcsi
tatlng to place orders in view of prob
able further market declines.
"The business outlook however, for
the year 1919 is encouraging. With
the desire of extending opportunities
for employment, the management was
quick to effect readjustment to peace
conditions and has started after it's
share Of 1919 woollen business on the
basis of narrow margin of profit
and volume of production. thus re-
ducing the unit cost of manufacture
and making attractive prices for the
customers of the mills"
Government Wool Stocks
The report says that at the signing
of the armistice there remained about
1926 100000 pounds of wool owned hv
the government, and in addition to this
about 100,000.000 pounds of Australian
wools which were being negotiated for
with the British government
Attention is called in the report to
the expansion of the company's export
business through the formation of the
American Woolen Products Company.