New-York tribune., 1922-02-28
Amer. Locomotive
Shows zl6eo Drop
In Gross Income
But Company Takes Advan-
iagc of the Dcnaiionary
Period by Improving Its
Balance Sheet Condition


The earnings report OF the Ancrcan
Locomotive Company for 1901 reflected
tho general depression IN business that
prevailed last year hy showing do
cline Of 46 per cent in gross income,
but the company took advantage of the
deAationary period by materially I'M
proving It's balance sheet condition.
Gross earnings last year were $40
71l.507. compared with SGGSS4.6l3 in
1890 After allowing for all charges
including preferred dividend require
ments, there was balance Of $685.
7S5. equal TO S12.3a n share ON the S25.
OOO 600 common stock This compares
with S2iAi share earned thc pre-
ccding year and Nl.O5 share in 1919.
tho banner year Of the company
Tho excess Of current assets over
current liabilities ON Dcccmhor 81,
1921. was S4l,725.992. after including in
current liabilities a reserve Of 81
24d.Q99 for United States and Canadian
income and profits taxes There was
also included ~ current liabilities a
reserve Of gG7t,9o0 to provide for cur
rent shrInkagc in tho value of notes
listed rs current aecsts and for csti-
mated loss at tho discount prevailing
at the end of the year in converting to
United states dollars that part of the
not working capital which vas cN-
pressed i'm Canadian dollars on the bal
ancc sheet OF the Montreal Locomotive
Works subsidiary
No Bills Uuistand,ng
Tho company had no hills out 'andme
at the close of tho year. contrastcd
with accounts payable on December 81.
1920. of S%.6S5.262 Thc inventory ac-
count, including materials and sup.
plics, contract work in progress and
stock locomotives and parts ON De
ccmbcr 81 last amounted to $t,'5l
90l, in comparison with Sla,ll 1850 at
the close Of Che previous year, re
duction of Sl0367. .a41. Ihe materials
and supplies the report stated. nay"
bccn valued at cost or market which
ever was the lower The important
features of tho income account COM
pare with 1920 as follows:
1871 'aeo
Crosse caralnes .Sea,,ll.gp. ., soe Na4 el.iS
Manu-. nlaiut
admin ano
G,prec ........ ..o.l0e.', so 90 81
Cross profit. s5.soa.oeSe7 sSsi.'o.e7
Int. on bonds of
oonstt. comp.
&C >fe49 go '' 'ipo.'a
s5.5ls.7ss.s7 Ss.7t7.lse.eo
Doducf for t. s.
and ana WON ,a1. .5ooooo eseo's so
4,ailabie profit s5.oSs.7Ss.57 s7lll.l,e. so
stoos a - 5sooooou f.5o.ooeoo
DIV. conl.
stoc, Al CO mo .noo1 40 800 oeo.Np
s.sss.5s5.s7 ss'.leo.ao
Eescrvo for ao-
Sctc 1000 olooooo oooooo oo
Nc, credi 10
surplus aeo'ut iS9s.IS1 81 Sl8fl. l-s. .o
During the gem There was expended
FOR additions and bcttcrmcnts TO pants.
81 1.446,109 no construction work was
done on the proposed new plant n tho
st. Louis district. and 1t IS the present
intention OF Tho company 10 withhold
active Development OF that property
until the general business requirements
Of the company Warrant il.
Depends on Railroads
Commenting on fpturc conditions Mr.
Fletcher said: "lt Is difficult to fofo-
cast the volume Of business Of this
company for the year 1"22. the recent
representations Of the Interstate Con-
mcrce Commission made by some Of
The ahlest and most experienced rail
ROAD chioi executives and hy the non
orable Secretary OF Commerce of tho
prcsont condition of the railroads arc
most impressive and convincing and
prove that there was practically no
imitation JIM the railroad transportation
business during the war. and that.
therefore. there is much less margin
and opportunity tol' dchaton nov. 'Aat
the effective equipment OF cars and
locomotives oil thc railroads has not