Evening star., 1937-11-16
S561,103 EARNED
BY MERGENTHALER
'ear's Profit Compares With
$637,451 Recorded in
Previous Period.
By EDWARD c. STONE


According to the .nnual report of
he Mergenthaler Linotype Co., out to-
lay, for the fiscal ye ended Septem-
YER 80, net profits amounted to $751;
03. after depreciation and reserve for
FEDERAL income taxes, equal to S233 a
hare on the 24l ,O98 no-par shares of
apital stock, in comparison with S637,-
81, or 81 share on 256 shares in
he preceding year.
Today's report further shows that
otal current assets AS of September
0. 1887. were s24,817 1882, comparing
With S24. .739,879 on September 80 1896.
urplus was S9,952,9 against So
s2,929. At present the company has
20 funded debt.
Current assets as of September 80
ast, including S1.l72,576 cash and
S71 1888 marketable securities at cost
nd accrued interest. amounted to SIS
9l,752 and current liabilities were
207,725. This compares Wit. cash of
345, ,304 marketable securities Of
,438,l17, current assets of Sl5,096-
so and current liabilities of sl99. .594
i September 80, 1886. inventories. at
ost. amounted to S6,4l8,3O9, against
5,698,662.
While business has peen good dur
lg the past year. higher costs are
wen as the chief reason for the small
ump in per-share earnings. Mergen-
laler stock has been one of the more
2tive issues on the Washington Ex-
lange for many years. Early this
ear it sold at 54@. and a few days
90 at 26. Paying 50 dividend the
Sock now yields over per cent. Fred
rlc D. Mckenney of Washington is
ice president and general counsel
nd George Hewitt Myers one of the
ompany's directors.
d. c. Bank Stocks Firm.
Washington bank stocks have made
: remarkably good showing in the last
tx weeks, while many similar issues
New York and elsewhere have been
unlping around quite freely. While
ssues of several leading banks in the
>apital are under their best prices of
he year, many have recorded no
hanges whatever in the last six Or
even weeks or longer, according to
Washington Stock Exchange quota
ions.
A glance at the stock exchange list
hows that the last sale in National
'apital stock was made at 145. with
25 now bid and 145 asked. The latest
nd for Liberty National is 1492 with
so asked, and the last sale was made
{ le<. National Bank of Washington
old last at l35, the present bid stand
ng at 130
The bid for Riggs National common
tands at 265, with 800 asked, last sale
t 275. Riggs National preferred car
les bid of l0O8a, the last sale taking
,lace at 10lls. The latest bid for
american Security e. Trust Co. stock
$50. with $50 asked, last sale re-
orded at 260. National Savings g.
cred at $50, the last sale weeks ago
registering ITO.
Prices of Other Issues.
The bid for Washington Loan g.
Trust as this week opened was 235
Ind 295 asked, last sale at $50 The
atest bid on Bank of Bethesda stock
vas "a and for Prince Georges Bank
- Trust 18, with % asked Lincoln
Iational Bank stock shows 100 bid,
$40 asked, and no recent sales.
Another stock on the Washington
'xchange with a particularly inter
,ctir1c rornrS iS Poyol of ror,, p,
Savings The latest bid for the stock
vas 235, with none offered at any
price. In recent weeks the bid has
advanced 30 points. Strange to say,
there has not been a sale on the ex-
change since bank shares were relisted
after the bank holiday 1t is said there
nave been few sales off the exchange
at prices above exchange bids. The
exchange sheet shows the present 10
per cent dividend, including extras, is
The highest figure now being paid by
any bank issue on the board. Incl
dentally, an analysis of the stock
places its book value at S346 share.
The same firmness in prices is dis
closed in Washington bank stocks
which are sold over the counter. The
latest bid for Anacostia Bank stock is
$50: for City Bank, Is; Columbia Ma
tional, 200; East Washington Savings,
14l2; Hamilton National, 20 bid and
81 asked; National Metropolitan. 24O
bid and 81, asked; Security Savings
& Commercial, 142 bid and ITS asked;
Union Trust, IS bid, offered at par.
Ayres Explains Stock Decline.
Holding views similar to those of
many Washington bankers, Col Leon
ard P. Ayres, economist, in his monthly
review says it seems probable that
most of the recent drastic decline in
stock quotations was a reasonable and
needed readjustment of prices rather
than an unjustifiable liquidation of
values. There is good deal Of evi-
dence to indicate that during most of
this recovery period stock prices have
oeen too high with reference to divi-
dends, and that dividends have
constituted an unduly large percentage
Of earnings. Stock prices have been
inflated during the past four years
by the optimistic capitalization of rosy
hopes, and finally investors have
realized that these hopes were not in
reasonable conformity with the facts
about business and about stock owner
ship.
In 1924. 1925 and 1926 the stock
values, earnings and dividends were
all advancing vigorously. but they were
holding their respective relationships
to one another. Then in the great
bull market stock prices mounted
unreasonably, but the dividends were
still justified by earnings. In the past
four years of recovery the dividends
have been high as compared with
earnings, and the stock prices have
been high as compared with dividends.
Now the drop in stock prices has over
corrected their previous excesses, the
Cleveland banker believes.
Heard in Financial District.
Capital Transit sold at 9 on the
Washington Stock Exchange again to-
day, Potomac Electric Power 5la per
cent preferred stock moved at HE