Evening journal., 1920-02-10

Dividends.
Preferred ..........s 100000
Common ............ 60O'2oooU
oI.oeOo oo
Undlstrlbuted profits, De-
cember 81, 1919 .........S 5,2SS, i6
Net income for the year
(less dividends on pre-
ferred capital stock
equal 20 annual rate on
common capital stock. k....... .22.39%
Indicates loss.
Ia the course Of his report President
Webster says:
Gross sales for the year amounted
TO SO iO7, ,3i0.79 Net income after all
charges incident 10 manufacture and
selling, repairs, accidents, deprecla-
tlon OF properties, ordinary and fed
eral taxes, represent a return Of 6.699o
on total investment and 22.39s6 for
common stock after paying usual go
dividend preferred stock. The early
months Of 1919 were largely devoted to
adjusting our personnel and inventor
les from a war TO peace time basis, Qn
fact. "A beginning was made soon afier
The amistice was sigued in November,
1918. referred to i'm our last annual re-
port, with the added difficulty Of vol
ume OF business being at the lowest
point In our seven years existence.
Business became more active during
The last six months Of year in all
Of our sales cOmmodlt explosives,
explosive supplies, chemicals, lacquers
and leather clOth-and we We're able 10
realize the full effect OF previous ef-
forth 10 conduct the business on
peace time basis.
reference has been made IN previous
annual reports to the purchase in 1911
Of the business OF Richard & Co., Inc,
Zapon Leather Cloth Co.. and Celluloid
Zapon CO., manufacturers OF the high
est grade Of leather cloth, lacquers,
enamels, bronze liquids, varnlsh, amy
acetate and nitro cellulose The busi-
ness OF these companies has steadily
increased in volume and a satisfactory
profit obtained therefrom.
Research, development and expert
maintain the highest standard OF quail
fly Of present products and 10 extend
our operations in closely affiliated
lines
I'VE are now successfully manufac-
turing our own brand Of blasting caps
and electric detonators In completely
equipped modern plants.
I'VE have adhered TO our usual Gus
tom OF setting aside from earnings
ample reserve TO provide against loss
from bad debts. accidents at plants, de-
probation Of plant values, etc.
The authorized capital stock Of the
company remains at s20,OOOOOOOO, con-
sisting Of sl0OO0OO0O0 par value 695
cumulative preferred stock and si0,
100000 par common stock. There is
now standing s9OOO,OOOOO par value 60
cumulative preferred stock and 5000
10000 par value common stock. No
capital stock has been issued since
July, 1917.
The financial position Of your COM
pany is the strongest in It's history. All
bank loans and contract advances made
necessary for the volume Of business
transacted prior 10 1919 have been en-
tirely liquidated. Current accounts
payable represent obligations not due.
Dividends on the 60 cumulative
preferred stock have been paid regu-
larly.
Common stock dividends were es-
tablished on a go annual basis in De-
cember, 1918, increased 90 an SO an
nual basis In March, 1916, and placed
upon a 1870 annual basis in March.
1919. The surplus account, reserved
from earnings. has been invested in ex-
tensions TO plants and in financing new
acquisitions Your directors feel. that
the increased Invested capital now en-
ployed and future business prospects
warrant a continuance OF at least 1870
annual basis for common stock divi-
dends.
stock OF the company has been Of
fered TO It's employees annually since
1913 under monthly payment subscrlp-
tion plan This plan was inaugurated
TO encourage and enable employees 10
become stockholders in the company
and has been so well received that 979
employees Of the grand total OF 257i
employed as Of December 81, 1919. are
stockholders The company has a to-
tai OF 2S77i stockholders.
Stock bonus. service wage and pen
sion plans inapgurated in 1913 remain
in effect"