Best Years

"In these days of changing social, economic and political values," Sears, Roebuck's President Robert E. Wood wrote to stockholders last week, "it seems worth while in this annual report ... to render an account of your management's stewardship, not merely from the viewpoint of financial reports, but also along the lines of those general broad social responsibilities which cannot be presented mathematically." Mathematically for the No. 1 U. S. mail order house, 1936 scarcely could have been better. Sears enjoyed the best year in its history. So did its older and smaller rival, Montgomery Ward & Co., which reported to stockholders fortnight ago.

Sears' sales in 1936 rose to $495,000,000, a 26% increase over the previous year. /-Ward's1936 sales were $361,300,000, up 23%. Net profits reported by Sears were $30,660,000, a 43% increase over $21,519,000 reported in 1935. On a percentage basis Ward did even better, lifting its profits 49% from $13,527,000 to $20,199,000. Both companies paid out within an ace of their total earnings in dividends to avoid the undistributed profits tax and both did financing during the fiscal year to obtain new capital.

To Sears' precise General Wood and Chairman Lessing Julius Rosenwald the social responsibilities of a great mercantile institution must be practiced as well as preached. Two-thirds of General Wood's letter to stockholders was devoted to outlining responsibilities: 1) to the public; 2) to employes (48,200); 3) to stockholders (42,700); 4) to Sears' sources of supplies (6,461 manufacturers). After pointing with pride to the company's policy of keeping wages ahead of advancing living costs and providing vacations with pay, General Wood made the first public accounting of Sears' Employes' Savings & Profit Sharing Pension Fund through which the workers have become the largest single stockholding group in Sears, Roebuck & Co. (9.2%). Inaugurated in 1916 by the late great Julius Rosenwald, the Fund has paid out $45,204,000 to a total of 65,000 employes who paid in only $10,042,000. Company contributions and stock dividends completed the total. Currently 19,000 employes have deposits of $8,267,000 in the Fund, which contains $44,206,000. In 1936 Sears' dividends paid to the Fund amounted to $2,891,000, company contributions another $1,700,000.

P: Like Sears and Ward in that it sells more products than any one person can name is big Union Carbide & Carbon Corp. (gases & organic chemicals, metals & alloys, batteries). Like Sears and Ward, Carbide made more money in 1936 than in any other of its 19 years of corporate existence. Net profits were $36,852,000, a 35% increase over 1935. Noting that prosperity was in Carbide's every pore, President Jesse Jay Ricks last week wrote to 55,705 stockholders: "The quantity of oxygen sold in 1936 exceeded that of any previous year. . . . More motorists bought 'Eveready Prestone' antifreeze. . . . Alloy sales to the steel industry exceeded in volume those of any previous year." Also noted with pride by President Ricks was that $20,000,000 worth of new plant construction in 1936 had been financed out of current assets. Up 68% was installment buying which accounts for one-fifth of Sears' business.

P:Only thing for International Telephone & Telegraph Corp. to do when making up last year's annual report was to forget all about its $63,000,000 investment in Spain. Accordingly, President Sosthenes Behn wrote to stockholders last week, I. T. & T.'s 1936 net profits were only $4,009,000. This compared with $2,553,000 in 1935 without Spanish operations, $5,787,000 with them.

P:While I. T. & T. was neither willing nor able to reserve in full or adjust its Spanish investment pending the outcome of the Government-Fascist war, Eastman Kodak Co.--with a relatively small interest in Spain compared with I. T. & T.-- last week revealed in its annual statement that it had set aside $705,000 to cover its entire investment in that country. Eastman reported 1936 net profits of $18,906,000, better by 19% than the 1935 return of $15,913,000.

P: Other notable 1936 earnings reported last week:

Anaconda Copper Mining Co., enjoying demands for metal which exceeded production during the year: net profits of $15,882,000, compared with $11,180,000 in 1935.

Pullman, Inc., because people are again riding in Pullmans at the basic 3-c- per mi. rate and smoke is again rising from its Depression-deserted shops along Chicago's Cottage Grove Avenue: net profits of $6,-347,000, compared with a loss of $273,728 in 1935. General Foods Corp. (So branded items from oysters to nuts), with the best sales since 1929:net profits of $14,241,000,compared with profits of $11,731,000 in 1935.

Texas Corp., biggest independent U. S. oil company: the biggest net profits in seven years, $38,260,000, an increase of 124% over 1935's $17,065,000.

Packard Motor Car Co., having sold 82% more cars (83,226) than in 1935: net profits of $7,053,000, compared with $3,315,000 the previous year.

Kimberly-Clark Corp. (Kotex, Kleenex), by selling more paper products ($22,864.000 worth) than ever before: net profits of $1,457,000, compared with $1,052,000 in 1935.

/-Up 68% was installment buying which accounts for one-fifth of Sears' business.

This file is automatically generated by a robot program, so reader's discretion is required.