Evening star., 1926-03-08
NORTH AMERICAN
EXPANSION GREAT
Large Increases in Earnings
Recorded in Annual Re-
port for Year 1925.
BY CHAS. p. SHAEFFER

H'ilIu udl report OF the North Ameri
can co. for 1925 reveals the greatest
expansion In any year of its history.
Large increases in earnings, income
ana assets are recorded Operatinc
ratios also showed Improvement. Bal
ance available for depreciation. diyi-
dend and surplus exceeded SEE 900 600,
an increase of "a per cent over 1924
while balance for common stock divi.
dends and surplus was s11,5224c1, an
increase of $2,294 SOS. Compared ON
the basis of the average amount of
stock outstanding during the wear
earnings were 37.4 per cent for 1926
and 33.2 per cent for 1924
Special note is made of the fact that
earnings of the large new companies
acquired during the year have beer
included in the report for only three
and four months, this being the period
since North American assumed control
OF them. Notwithstanding this fact.
their securities held by the public as
well as the common stock of the North
American Co. issued for such acquisi-
tions. have been included in the North
American balance sheet. Therefore.
the direct comparison of the 1928
financial statement with that of 1924
shows less than the true advancement
achieved during 1925.
Earned Surplus Increased.
After appropriations for all reserves.
payment of dividends and miscellane-
Gus charges, the consolidated earned
surplus increa sed nearly $4,000 900,
and at the close of the year amounted
to $50.605, ,648. Dividends paid on the
common stock during the year
amounted to approximately SO ,223,S1S.
All the public utility companies cor
trolled at the close of 1924 excepting
the street railway companies, which
represent but a relatively small num-
ber of its subsidiariesl show extra
ordinary increases in the volume of
business. The gross earnings on the
consolidated income statement show
an increase of 16 per cent over those
of 1924. while the net income from
operations increased 81 per cent over
1924 OF interest in the net income
figure is the fact that So per cent Of
it WAS derived from electric and heat
ing business. AS new properties taken
on or controlled during the latter year
are engaged almost entirely in the
electric business the corporation eX-
poets net earnings from electric bust
ness to substantially increase In the
future. The number of electric Gus
toners of the Company's subsidiaries
are given as an increase over the
previous year.
amounts of capital for additions to
plants and facilities during the year.
such expenditures amounting to over
$4,000 900 while budgets of sub
salaries for the year 1926 indicate
new facilities amounting to over $50.
600 900
Unit Sale Price Decreases.
The report is notable in showing a
decreasing ratio of onerating expenses
At gross earnings. The 1925 figure Of
59.l per cent being less than 1929
and per cent lower than that Of
i've wears ago, an unusual showing IN
view OF the decrease in unit sales
price
Unit sales prices for electric ener.,
show further decrease. Since 1927
sales increased at rate of 46 per cen
more than the rate of increase i'm
operating revenues from such 81 los
Had the unit revenues in 1901 been
applied to the volume of business in
1873 earnings for 1925 would have
been S10,ooo.0oo IN excess of those oh.
tanned in that year
Hnpolt"nt property acquisitions
made during the year included tbe
WeStei n Power Corporation in cali.
fornia, Mississippi River Power Co
and Central Mississippi Valley Flee
trlc Properties, with holdings in Iowa
Missouri ana Illinois
Investments MonOpolize Session.
Little of interest occurred on tc.
days local stock market. Trading
was restricted 10 relatively small
volume, with prices lowering around
unchanged to lower levels.
Potomac Power preferred stock
was unchanged at 1919, as was Rail
way preferred At 905 but Continental
Trust 60. sold off to par, while Rail
way preferred was easier at GOT,
Commercial National Bank brought
242
The majority of the session was mo
nopolizod by the investment end of the
market at ruling averages
The Bureau of Railway Economics
maintained here by the carriers an
nounceS that earnings of class one
railroads in January on the basis Of
their own property valuation figures
were at the annual rate of return Of
4.60 per cent.
Net railway operating income was
placed at $65.124 $50. against $50 $50.
III for January last year: gross oper.
ating revenues. $3.50 .997 ass. against
S4S5 $40: operating expenses, 1913.
64S,714, against $3.50. .961.979, and
maintenance expenditures $164225
955, a decrease of 81 200, 900 under the
same month year ago.