The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-03-05
LOCOMOTIVE REPORT
SHOWS 4 DECREASE

Because the fscai year has beer
changed to correspond with the cAfen-
dar year instead Of ending on June 30
the rerort OF tho American Locomo-
tive company. which has just been
Issued covers a period OF only six
months. TO December 81. 1919. The
basis Of comparison. Therefore, Is
largely -hatxeen,-the two six month";
pefiods. The report shows that gross
warnings for the half year ended De-
cember ~ amounted to s20,030,oss, az
compared with $4s,443,4ss in the pre-
ceding six months.
The falling on in earnings is at
trfbutahle, acearding to Andrew
Fletcher. president of the company, to
the almost entire lack of domestic
equipment orders. In November the
plants Of the company operated at only
l3bs per cent of capacity, and the av-
erage for six months was only 20 2-10
per- cent. The locomotives that were
turned out were largely fer foreign
account. and the scope of this busi-
ness was limited because IL was neces-
sary to transact 1t on deferred credit
basis. larger volume of business
could have been undertaken had 1t
not been that the commercial risks in
Sp'NN' WIRE dangerous.
The net profit, after deducting ex-
pcnses charges and Canadian and
United States income and war profts
taxes for the half year ended Decem-
Der 81. amounted to $2.577,17o as com
pared with $s.917,oss for the six
months ended June 30. After deduct
ing preferred dividends. the first
named amount was the equivalent OF
ss.Sl share on the common stock, as
compared with t2417 share for the
Period ended June 80. The earnings
81, 1919. were equal to S3o.sa share
on the common. after preferred divf-
dends
The consolidated balance sheet OF
the American Locomotive company The
Montreal LOGON olive works and the
American Locomotive Sales corpora
ton shows that working capital on
December 81 was $s5.eS6.oI7. Total
current assets amounted to $49,ss6.o2 OF,
and total current liabilities were s14.-
o0o,0I5. On December 81, 1919, work
iEg capital totaled $2S,S52.742.
1t Is shown that inventory account
has been materially reduced as COM
pared with the figures OF year ago.
Materials and supplies. for instance
are valued at $5,S73.327. whereas the
same item called for $ll.s33,70l at the
end Of 1918. Holdings of Liberty bonds
on December 81, 1919. totaled $4.410.-
goo, or more than double the amount
at the end of the preceding year. The
balance sheet shows that s9so0oo had
been invested in United Kingdom
three-year 6h per cent converts BILE
gold notes. Canadian and United
states taxes called for 35s15.s6o.
whereas in 1918 $e.75o.s0o was ser
aside for this purpose.
The president OF the company. in his
rcms rks to stockholders, says:
since December 81, 1919, approx
mateiy $12,800,060 OF new business has
been obtained, of which about 50 per
cent is for domestic roads and I6 per
cent is for foreign trade
The Lrt spects for immediate domes-
tic hus;ness are being assured by re-
cent orders received and inquiries for
prices The unquestioned shortage and
lack OF effective motive power OF some
CT the railroads of the country have
been known for months and, while
some Of the rumored requirements are
no doubt exaggerated. we are optimis-
tic at least for q fair volume OF or
ders for new locomotives and for the
recondttiontng OF old ones for the year
1890.
The return OF the railroads to cor
porate control and operation, the ad
justment of their financial affairs and
the competition for business will no
doubt stimulate the efficiency and pro
gressiveness of this country's railroad
executives and operators and in the
refining of operating costs we antici-
pate there will be a greater demand
for welI-huilt. effective and economic
ally operated locomotives