New-York tribune., 1921-02-16
Baldwin Loco.
Earns Sis a Share
On Common Stock
Gross Sales Show Decline
From Previous Year; De-
ferredBusiness, Not Taken
Into Account, Believed Big

Gross sales of the Baldwin I,ocomo.
tive Works in 1920 totaled $73,542 ,666
compared with $S4,3O7, ,777 in 1919. The
company earned net profits of S4,42s,.
519 in 1920, against $5,776,243 in 1919.
The full 7 per cent dividends or
both common and preferred ($20,00O,.
ooo ooo of Of each outstanding )call for ST.
100000, so that last year there was q
surplus of 81 ,628,519 from the years
operations. The earnings on the com.
mon amounted to $15.01 last year and
$21.76 the year before.
The company does not include in the
net profits for the year any of the esti-
mated profits on deferred payment
business done. THE deferred business
last year was of large volume. Of the
total gross sales 22,3O7,718 were de-
ferred, and on this business there was
an estimated profit of $2,S7S,751. Part,
probably a considerable part, of this
will eventually be added to surplus.
Presumably this deferred profit is
both domestic and export business. At
any rate, it is common knowledge that
American railroads have been unable
to pay equipment companies because
the government has not paid the rail
roads the balance of rental due them.
Baldwin is generally believed to have
held its own in competition for do
mestic business, and did we'll so far as
making repairs on contract, which was
an important factor in this years
equipment business. No mention is
made of the foreign department of the
Baldwin, from which so much was ex-
pected n year ago.
More interesting than the income ac-
count is the balance sheet as of De-
cember 81, 1920. 1t will be recalled
that a year ago, when the 1919 annual
nounced that during 1920 the Eddy
stone Munitions Company (the "war
baby Of the Baldwin, would be COM
pletely liquidated. This promise was
carried out, and there was final bal
ance of $t,515,264 to be carried to the
balance sheet surplus of the parent
company
AS shown by the handling of this
years income account and of the muni-
tions company accounts in 1919 the
policy of the Baldwin company has
been conservative. This fact further
is borne out by the writing down Of
the plant and equipment account from
$50, ,196,158, the undepreciated value at
the end of 1919, to $27,439 ,263, the De.
preciated value at the end of 1920. OF
the depreciation accruing in the two
years $3,650,000 was charged off IN
1919, and $600000 in 1920.
Current assets, so important factor
in the position of manufacturing con-
Germs, show very, considerable change
during the year 1920. At the end Of
1919 Baldwin had $3,441, 1,020 cash and
S7,O46,457 Liberty bonds included in its
total of S31, ,772,355 current assets. At
the end of 1920 it's total current assets
amounted to 57,510,113, excluding
S1,371 500 cash and 100000 Liberty
bonds. The increase in current assets
came principally in $6,728,8 845 Republic
of Poland 5 per cent bonds, $4,143,75o
Belgian treasury notes of per cent
and ST ,592, O69 Rumanian treasury Z per
cent notes, an expansion of little less
than $600O,000 in inventory values and
of nearly 100000 in accounts re-
ceivable and about $5,000,0O0 in ac-
counts payable.
On the liabilities side of the balance
sheet there were no bills payable at the
end of 1920. Accounts payable amount
ed to $1,666,097 at the end of 1919 and
at the end Of 1920 it amounted to S8,-
O61,859.
The 1920 output of locomotives is not
given in the annual report, but 1t Is un-
derstood to have been 1,545-dlvlded
about equally between foreign and do
mestic business.