Evening star., 1934-06-21
NEW DATA GIVEN
ONMERGENTHALER
Business Volume Climbs 30
Per Cent Ahead of Last
Years Mark.
BY EDWARD C. STONE.

0GONhlAOA0CLo Va sC1Ab41dlCI 6A4lO~
type Co. of New York, of which there
are more than 1,100 in Washington
and vicinity, owning approximately
one-third of the total capital stock
issued and outstanding, will be in
terested in statements made today by
one Of the company's directors, Fred
eric D. McKenney, to the effect that
as of May 3O last, which marked
the end of the first eight months of
operation for the current fiscal year,
the volume of company's business had
increased approximately so per cent
as against the same period for the
preceding year; that the tendency
toward improvement had feebly man
ifested itself in September and Octo-
Der Of 1888 and persisted with in
creaSing strength during the succeed
ing months.
At the end of the eight-months'
period the income sheet showed an
agreeable credit balance against dis
couraging deficits of materially great
er amounts at close of like periods in
each of the two preceding years, de-
probation being omitted in each in
stance. While June July and Au-
gust normally constitute the dull sea-
son in the printing supply industry,
orders since June l of the current
year have been received in encourag-
ing volume, and it is quite confidently
=
sources will enable the company to
close its fiscal year after all GUS
tomary allowances for depreciation
and reserves, with black ink figures,
Mr.. McKenney announced.
Foreign Business Improves.
Business in the foreign field has
improved faster than at home. Both
the English and the German COM
panies, independently operated. have
materially improved their factory and
financial positions during the last two
years and now are operating at some
profit
During the so-styled depression
period, which happily seems to be on
the wane, expenses of operations were
reduced to the lowest point consonart
with maintenance of adequate manu-
featuring, distributing and managerial
forces. Salary and wage cuts reluc-
family but necessarily imposed upon
factory and clerical employees, have
been Cancelled and wage scales now
have been re-established on subst2n-
tally 1929 levels, The Star learned.
Under the company's bylaws SAL
aries of all executive officers and gen.
orally of department heads and their
immediate assistants are fixed at the
beginning of each fiscal year by the
board of directors assembled in regu-
lar meeting and always are subject to
change. The reasonable salary lists
fixed at the beginnings of the fiscal
years 1882 and 1888 were revised in
both periods, as result of voluntary
submissions initiated by the officers
themselves. Reductions made were
substantial, ranging from approx
mately 25 per cent of initially pre-
scribed bases for officials devoting
their entire time to the company's
service, to total elimination of all SAL
ary provisions for officials not devot-
ing all their time to company busi-
ness.
Salary Cuts in Force.
None of such reductions or elimina-
tions of salaries has been Cancelled as
yet and it seems unlikely that any
resolutions whatever in such regard
will be made until net earnings shall
Justify the resumption of dividend
payments, which action may be con-
fidently anticipated whenever current
earnings other than accumulated sur
plus, may be depended upon to pro-
vide the funds. Special or bonus al
1owances to executive or other officers
of the company have never been
countenanced, Mr.. McKenney said in
reply to a question.
The cash position of the company
has materially improved since the
beginning of the current fiscal year
and there is ample working capital
on hand, and not otherwise obli-
gated in any sense, to permit OF
greatly increased operations with their
necessary credit extensions just SC
soon as orders mature.
The company has but one class
900 shares of common stock of nc
par value, with an assigned value
of sl2,800,000. Every share. more
over, is of equal dignity and value
1t has no bonds or other funded
securities of any sort whatever, either
outstanding or contemplated; it owes
nothing whatever to banks or other
financial institutions nor to any per-
son, partnership, corporation or in
stitution except for the purchase OF
current supplies awaiting receipts OF
audit, which currently average be-
tween $4,000 and $4,000 each
month; this against current average
free cash balances in bank and SUBJ
ject to check without notice. in ex-
cess of s500,000.
Many Orders on Hand.
Certain of the so-called specially
products referred to in the last an
nual report, notably the Wil-x-Fire
Extinguisher and the U. S. u. Co
pipe union. are now in factory pro-
duction with demand therefor en-
couragingly increasing. 1t is conf
IDENTIFY expected that within another
year net receipts from Such productS
will materially strengthen income.
The withholding of dividend decla-
rations is most unpleasant. not only
to the body of stockholders, but tt
the directors, each of whom is ar
owner of stock in considerable amount
but it has been thought by the latter
to be in the company's interest, a;
we'll as an exercise of common sense
so to do at least until improved con-
ditions throughout the country al
large shall indicate that when re.
sumed the shareholders with reason
able confidence may expect their un-
broken continuance, Mr.. McKenney
said in conclusion.
Heads Safe Deposit Section.
Richard E. Harris, assistant treas
urer American Security g. Trust Co.
was elected chairman of the safe de-
posit section of the District Bankers
Association at the annual meeting
held last night in the assembly room