Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-02-18

the war.
The lines Of business to which he
refers illustrate very well the general
misconception of the situation. OF the
FIVE leading meat-packing companies
with headquarters at Chicago. one-a
long established concern-got into flnan-
cizl difficulties and was taken over by
another packer, for the purpose OF en-
larging ito own distribution and lower
ing the percentage of overhead ex-
penses. This second packer had to be
|.reorganized with the aid OF new
capital, and third packer has been in
the hands of a receiver for several
months The fourth large packer was
obliged to suspend dividends, and the
fifth, although it has maintained divi-
dends throughout, had to draw on pre-
viously earned surplus 10 do so. The
company which came through best did
gross business of $8,850.000, COO in
eleven years, l9l4-1924 inclusive, with
net profits for the period of $751; $685.
OC0, which yielded an average of 7.S
per cent per year upon the capital EN-
ployed and of IL per Get on the sales
of product
Among the sugar companies the Amer
lean Sugar Refining Company is the
largest, employing capital OF $loZ,-
OO0,000, on which a per cent return
would be $o,720000 The net profits
of this company in the eleven years
lol4l924 aggregated $65,0l5,l0o, or an
average of less than 100000 per
year. Its biggest year was 1919. when
the profits were $l0,283,082, and it had
net losses in 1921, 1923 and 1924 of
SILT, 900, $1,693,N0 and 1927, 637, re-
spectively. The preferred stock sold
in 1914 over a rage from lis down to
1O7zs, as high as 1891 in 1916, and
down to o7H in 1921. but paid 7 per
cent dividends throughout the period,
1t closed the year 1925 at 1903. The
common stock sold in 1914 from 1926
down to 81, up to 1885 in 1919, sus-
pended dividends in 1921 and sold down
to 36 In 1924 Dividends were re-
suned on, a S per cent basis in 1875.
and this stock is now selling at about
Is. Both classes of stock have a par
value of $780,
The Cuba Cane Sugar Corporation
is the leading American corporation
producing sugar in Cuba. Its capital
is represented by outstanding issues of
$4,000, 900 of preferred stock and 500
600 shares Of no-par common stock
Its operations began in 1916, and in
the ten fiscal years ended September
80, 1o16-25 inclusive it had net earnings
aggregating $35,l56,H5, or an average
Of about 7 per cent on the preferred.
Its year of largest profits was 1920,
when they were $l2,344,l34, and its
worst year 1921, when it had deficit
of $18,o72,622. No dividends have been
paid on the preferred since April, 1921,
and no dividend ever has been paid on
the common. The preferred stock (par
$1OO) sold down to 1875 in 1921, and
is now selling at about As. The COM
mon sold as high as 763s in 1916, and
as low as So in 1921, and is now SELL
ing at about $40 per share.
The bituminous coal industry was
much stimulated by the war and in the
year or two following, but has been
in a state of utter decentralization since. |
As in the sugar industry, description
of conditions might be extended in
definitely by reviewing the record of
individual companies
A summing up for the above three |
lines of industry and for all industries |
may be had from the reports of the
Bureau of Internal Revenue. In 1919
the meat-packers reporting any profits |
showed an aggregate sum of 81 1885,