Baldwin's Bad Year

Blunt, two-fisted Samuel Matthews Vauclain has been President of the Baldwin Locomotive Works, with plants at Philadelphia and Eddystone, Pa., since 1919. During the early post-War years his company continued supplying U. S. and foreign railroads at large production and large profit. In 1923 its profits reached the tidy sum of $11,931,521. But in the next year the railroad equipment market throughout the world was beginning to show demoralization. Baldwin's profits for 1924 were only $1,920,026. But stored surplus was $18,367,268. The profit showing was not seriously groaned at.

But last year was really a bad year for Baldwin. Mr. Vauclain has just had published to stockholders the year's statement, as of Dec. 31. Profits were only $196,563 net--the lowest since 1912. That meant only 81-c- a share on the $20,000,000 of 7% preferred outstanding. But the 1925 common and preferred dividend requirements amount to $2,800,000. The difference had to come from the surplus fund, leaving therein a balance of $15,763,832.

Said President Vauclain: "Throughout the year difficulty was experienced in obtaining, at any price, sufficient business to operate our workshops and maintain an irreducible minimum organization. Trade relations with foreign countries were sustained and improved. Workshops and machinery have been fully maintained and the transfer of equipment and operations from our works in Philadelphia to Eddystone continued. Your management considers the outlook favorable for a satisfactory business throughout the year 1926."