Evening star., 1936-11-06
BIC GAIN IS SHOWN
BY MERGENTHALER
Years Net Hits S637, ,451,
Compared With $36, 100
in Previous Period.
BY EDWARD C. STONE.


port for the fiscal year ended Sep
tember 80, which was received by
Washington stockholders today. Net
earnings were $637,45l, as compared
with only $36,160 for the preceding
year, equivalent to $3.50 a share,
against 36 cents year ago. The net
of S637,451 Is after charging $3.50
to depreciation and reserving S65,000
for taxes.
A new departure on the part Of the
company is the inclusion in this years
annual report of a consolidated bal
ance sheet of the British and Ger
man companies, as we'll as a state
ment of their respective earnings.
This balance sheet shows combined
assets Of the two foreign companies
of more than S24,000,000, with
S9,386,000 current assets and only
s1,285, 900 current liabilities. Mergen-
thaler's ownership of these compan-
les is carried on its balance sheet
under the item Capital stock of as
sociate foreign companies" at the
extremely conservative figure of only
s1,462,000.
Foreign Concerns Do Well.
Net earnings of the British company
for the year ended June 80, 1886,
are shown to have been approximately
S555,000, while the net earnings Of
the German company were approxi-
mately $275,00O or total of more
than s83o000 for the two foreign
companies. OF this amount, only
s217,000 is included in the earnings
report of the American company.
The American company long has fol-
report only such cash dividends as
are received from Its foreign subsid-
laries during the annual period. Had
the Mergenthaler report given con-
solidated earnings of the parent COM
pany and all subsidiaries, the total
would have been increased by ap-
proximately 100000, or practically
double the amount actually shown.
Sounding note of optimism for
the future, the report says, "Predi-
Gated upon sales forecast, the outlook
for our company for the year 1887
is promising. Both of the foreign
companies are sanguine as to their
prospects. General conditions abroad
are in an unsettled state, and it Is
difficult to foretell how these enter
prises may be affected thereby, but
each Of them is possessed of ample
financial resources to cope with fur
Jher untoward conditions should they
arise.
Larger Sales Volume.
During the past year our line Of
machines was notably augmented and
improved as to operation, finish and
versatility. General development and
research work, both with respect to
machines, appurtenances and the cre-
alton Of fine type faces is being carried
on intensively and without abate-
ment. Further developments are un-
der way and should be brought to a
conclusion within the next fiscal year.
When introduced they are certain to
increase sales volume, subject of
course, to the buying power of the
printing and publishing industry
which we serve"
The company's balance sheet as of
September 80, 1886, reveals an excep-
tionally strong financial position. Cur
rent assets are shown at $15.098, 900,
as compared with assets of Sl4,586,-
600 the preceding year; while current
liabilities were approximately 100000
as against $4,000 for the preceding
year. Surplus at the close of the year
was S9,883,000, an increase of ap-
proximately s35oOOo. The company
has no bank loans, no preferred stock
or bonds.
During the fiscal year the company
paid 81 in dividends, SO cents on
May IS and SO cents on August IS.
Another 50-cent dividend will be paid
on November Is. The stock Is now
selling on the Washington Stock Ex-
change around 81.
Taliaferro Addresses Bankers.
Sidney F. Taliaferro, vice president
and trust officer of the Riggs National
Bank, in an address before the an
nual convention of the Florida Bank
ers' Association at Tampa today pic
tured the astonishing growth of the
trust business among the banks.
He cited the last annual report of
the controller of the currency, which
showed that in June, 1885, there were
1882 national banks having trust
powers, and of this number 1878 had
active trust departments and were
administering 1871 individual
trusts with assets aggregating more
than $9,250 100000. In addition these
banks were administering 16,801 cor
porate trusts and acting as trustees
for outstanding note and bond issues
amounting to over s1l 500, 100000.
Since 1926, he said, there had been
an increase of 462 per cent in the
numer of trusts being administered,
of 903 per cent In the volume of in
dividual trust assets under admins
tration and an increase Of 371 per
cent in the number and in the vol
ume Of note and bond issues out
standing for which national banks
were acting as trustees. The volume
Of trust business handled by other
than national banks has also increased
during the same nine-year period.
nc IcpOItcu Spicuul0 SPAAb VI ~
operation between the American
Bankers Association and Federal
Government agencies having to do
with banking matters, pointed out
the most important problems affect
ing the trust business, reviewed Gov
ernment control measures and the
extent of the examination Of trust
departments by Government officials.
After pointing out the most vital
points involved in trust operations, Mr..
Taliaferro concluded by stating that
q program for every trust department
would seem to be: First, furnish the
best possible quality of service; sec
ond, collect such fees as will make
the business reasonably profitable, and
third, build for volume Of business.
Peoples Drug Sales Mount.