Jasper County Democrat, Volume 21, Number 20, Rensselaer, Jasper County, 8 June 1918 — ENORMOUS EARNINGS MADE [ARTICLE]

ENORMOUS EARNINGS MADE

By Farmers’ Elevator Company During Past \ T ear. The annual meeting of stockholders of the Rensselaer Farmers’ Elevator company will be held next week, on June 15, The Democrat is informed, and at this time directors will be selected in place of those whose terms of office expire, and it is presumed a complete report of the business of the company for the past year will be made. While the company was at considerable disadvantage at the start and could not dispose of as much stock as desired and therefore incorporated for but $14,000, the net profits on the grain and coal handled during the year have made enormous earnings on the stock, The Democrat is informed. We are told by an officer of the company who is in a position to speak authoritatively that each SSO share of stock is now worth S6B, after pacing .7 per cent interest or divion the stock in one year. In addition to this the stockholders who sold grain to the company received 4% cents per bushel more than market price at the time their grain was sold —or, rather, . a bonus of 4% cents per bushel in addition to the 36 per cent earnings on their stock above the 7 per cent dividend. This stock is taxable, of course, hut the company pays the tax, the same as does a bank on its stock. In other words, the taxes are paid out of the gross earnings. The company also paid an income tax of $2,100 on its net earnings after paying all expenses.

This is certainly a remarkable showing for one year’s business, but conditions were exceptional, in that grain was bought for most part on a Tising market ;right along, and it is probable that the profits on the coal handled by the company considerably more than paid the en* tire operating expenses of the business, as stated at the time stock was being sold, that it had been doing. It is understood that no cash dividend will be declared other than the 7 per cent, but it is the intention to increase the capital stock to $20,000 or $25,000, and a stock divident of about 36 per cent will be declared in r lieu. of cash.