Evening journal., 1920-02-16
Hercules Polcder Company
Earnings Fall During Year

your company has not been willing TO
accept as basis Of purchase. II is
the belief Of your company's offlc'als
that this extraordinary demand and in
lated values cannot, continue, and that,
during the readjustment period that
must arrive soon. the Information that
has been accumulated and your com
panys resources will put IL In an ex-
ceptional position for profitable devel-
opment
Your company expects to continue
a conservative policy, extending its
lines Of manufacture gradually but
surely. and extending into other fields
only when a thorough invest gailon Of
such lelds show that a profitable and
stable business can be secured
1T should be noted that your com
pany's surplus assets, formerly om-
ployed in war work have became
available only IN the last few months
They are now. 10 a large extent, invest
Cd Ia Liberty Bonds and collateral
loans. The income from these invest
ments with Improvement that can be
reasonably expected 10 commercial
lines already established should in-
sure. beyond reasonable doubt, the CON
tlnua.on Of the present rate O.! divi-
dend on common stock AS these
assets are more and more Transferred
into active manufacturing lines The
earnings. and consequently TIC amount
available fOg dividend distribution,
should be increased.
uNofi,s eonnnqn4s har atlofnufr frl
throughout the period OF increased
earnings, TO write off each year an war
plant extensions, IN order That the bai-
ance sheet might slow no investment
IN plant where temporary value only
was actually 10 be found The read
justmont OF claims under war contract
settlements has changed this slightly,
and The balance sheet includes some
thing for war plants, where u had been
the intention that they should be
written down TO nothing
"On the other hand, 10 has been
found that much OF the equipment of
these war plants can be sold, and
though such sale brings a return of
only a fraction OF the original cost Of
the plant yet Tho total amount re-
covered Nfrom athe salvage OF these
plants. win, in ell probability exceed
slightly The amount sim carried on the
company's balance sheet 70 Is believ-
ed that every item on the companyS
balance sheet now stands az It's acmal,' 1
realizable value
Throughout the period Of war ac-
tivities a tremendous burden has rest
ed upon your c0mpauy's yice-presi-
dent and general manager, II. w. Bac-
chus. Due 90 his untirlng efforts and
able direction The company's manu-
featuring facilities were increased many
times and splendid record Of accom-
pllshmeni written into the companys
history. At Mr.. Bacchus request he
has been relieved OF active RESPONSE
bility for the manufacturing depart
ment but viii continue 10 give to your
company, so far as his health permits.
the use Of that great store Of knovl-
edge, experience and Initiative that has
been such an important factor in your
company's success.
The plan for the sale OF preferred
stock on subscription TO tho company
employees. which was suspended Tor
two years 70 avoid possible Interior
eDce with Liberty Loan subscribtioRs
has been re-establlshed and has met
with a very favorable reception among
employees.
The active spirit Of loyalty. cooper
alton, and personal interest in the com
pany's welfare that prevails through
out the organization continues 30 aid
In The companys develop
ment. Tho same spirit will carry the
into further DEVELOPMENTS
aud further successes. Az this time.
the company has a total OF 1912 stock |
holdePs.- Of whom $40, or % per cent. |
are employes."
The compony's condensed income
statement for the year ending Decem-
Der 81, is as follows
Gross receipts ....................
Net earnings from all sources .......
After deducting all expenses incident
10 manufacture and sale, ordinary
and extraordinary repairs. main
tenance Of plants, accidents, depre-
ciaLon, taxes, etc.
Paid or set aside for preferred dividend
Total deductions .........o,, ,,,...
Available for improvements or FOR divi-
donds on common stock ........-..
Amount available for dividends equiv
alent TO annual rate OF common
STOCK .......-.t........... .,........
Dividends paid during period on com
mon stock Observation-Disclosures.
Net earnings from al sources equiva-
lent 90 annual rate on total invest
ranntal ~