New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-01
Car and FoundryCo.
/. Earnings Compare
Well With 1920 Net
Materials Kept in Hand Dur
ing Difficult Year and
Customers Accounts Are
Carried Without Financing

The American Car and Foundry Com
pany earned ss,551 900 net in the fiscal
year ended April 80, 1921, compared
with $10,401,000 net earnings in the
1920 fiscal year. Net earnings for the
year just closed are equivalent to
S21.so share on the $30,0o0,00o COM
mon stock outstanding after the pay
mont Of the regular z per cent divi-
dends on the preferred, compared with
I S27.67 in the previous year.
The company's balance sheet as of
April 80, 1921, shows S21,695,0o0 ac-
counts and bills payable not due and
pay rolls. At the beginning Of the
year there was $15,624,000 accounts
and bills payable. The American Car
and Foundry Company had to carry its
customers to more than normal eX-
tent, as did nearly all big manufacture
ing companies, and the fact that the
Railroad Administration held back
payments to the railroads intensi-
fed this condition. At the end Of the
1921 fiscal year the American Car and
Foundry had $2s,So200O accounts and
notes receivable, as compared with 49,
$4,000 receivables April 80, 1920.
Unlike many other manufacturing
companies, however, this company had
foresight enough to keep its materials
on hand at reasonable figure. and SO
escaped one Of the most expensive and
troublesome of postwar manufacture
ers' problems. Materials on hand in
ventoried at cost or less and not in
excess of present market prices
amounted to $14,O10,O00 April 80, 1921,
and $15,007000 April so, 1920. The
company did no financing during the
year and. has no funded debt. 1t sold,
however, during the year a little less
than $29, 100000 of United States GER
tifcates of Indebtedness, Liberty bonds
and Victory notes, reducing the amount
held at the end Of the year to $50O9,-
900.
At the beginning Of the calendar
year 1920 there was an expectation
both among railroad officers and manu-
there would be large revival of or
ders, especially for cars. The falling
off in the freight business and the lack
Of cash and, in most instances, credit
also, of the railroads effectually pre-
vented the placing of any large num-
Der of orders for cars.
With railroad shop conditions as they
were, it had been expected that great
deal of car repair work would be given
out to car manufacturers. The Amer1-
can Car and Foundry Company, how
ever. and the other equipment COM
panies were disappointed in this ex-
pectation. Wherever possible, the cars
that were not needed in service We're
stored, and the cars stored were in bad
order. Repairs were delayed until such
time as traffic increased and the need
for additional equipment felt. Only
about one-ffth of the profits of the
American Car and Foundry Company
for the 1921 fiscal year came from car
repair work A greater part of the
profit came from manufacture and sale
of miscellaneous products than came
from the car repair business.
w. H. Woodin, president of the COM
pany, while approaching the impor-
lance of broader foreign market for
his company's output, expresses a
doubt whether such a market can be
established without government aid
He believes it will be difficult for
American manufacturers to export in
competition with the output of Europe.
The orders on hand at the end of the
year amounted to $50 ,0OOOOO.