Richmond Palladium (Daily), Volume 38, Number 159, 13 May 1913 — Page 8

PAGE EI&HT

THE" RICHMOND PALLADIUM AND SUN-TELEGRAM, TUESDAY, MAY 13, 1913

SIAItMtHI ISSUED Oil RUMELY MATTER

Difficulty Was Result of a Too Rapid Expansion of the Business.

CITY BUREAU OF STRAWBERRY PIE

' (National News Association) NEW YORK, May 13. William Salomon & Co., tbe banking house which financed the M. Rumely company, yesterday issued a statement regarding

the recent re-organization of the company and the circumstances surrounding the election of a new board of directors and an entire new management of the properties. The statement Is as follows: "We have deferred making any statement regarding the company until the completion of a re-adjustment of its management and affairs, which has been In progress for several weeks. We feel that investors in the securities of the company are now entitled to a full statement of the measures which have been taken for the re-organization of the management of the company and of the grounds for our belief that the enterprise is essesntially sound. "The temporary difficulties in which the company recently found itself were the - direct result of a too rapid expansion of its business with an unusually large amount of capital required in the agricultural implement trade, in which credits averaging eighteen months or more are habitually given. "The combined sales for 1911 of the constituent companies (other than the Northwest Thresher company, acquired late in 1912) were reported to be about $10,000,000; in 1912 about $17,600,000. As a result of this rapid increase the company carried over into 1913 greatly increased current assets, but also a large 'fldating debt. ' "At various times during 1912 esti

mates and reports had been made by the company as to the earnings for the year,' ad we had ourselves employed independent certified public accountants to check the company's estimates and generally examine the condition of its affairs. The reports made to us in October, 1912, indicated that earnings of at least $2,200,000 for the year might confidently be relied upon. As late as December, 1912, the "company furnished, a. profit and loss -statement and tentative balance sheet !sfs of September 30, 1912, showing up- : wards of $2,100,000 earned for the fiFst nine months of the year. Feeling that .we had every reason to believe that khe business, while expanding rapidly, 'was actually showing liberal profits, we purchased in February last $10,000,1000 of the company's two-year 6 per

-cent notes, convertible into common stock at par: We were then assured that with the proceeds of these notes, and moderate seasonal borrowings from the banks, .the company would have suflficient funds to handle the volume of business then contemplated.

"Subsequently, during the annual audit, we were the first time led to believe that neither we nor our accountants had received full or reliable Information from the- officers of the j company regarding its true manufaci i xt :! TxrA

lunuK huu niieinuitti pusiuuu. ne accordingly arranged to have elected as vice president in charge of finances, . John H Gray, in whose tntergity and capacity we have implicit confidence. Mr. Guy took office about eight weeks ago. He found that the officers had planned to increase the volume of the current year to about $28,000,000, and that contraots for the purchase of materials and , other arrangements had been made with that in view. It was apparent that so great an expansion would result in the employment of a much larger amount of capital than had been estimated. A reduction in this volume to $22,000,000 was, therefore made. "Upon the publication on April 2 of the annual report, which showed the

earnings for 1912 had fallen far snort of the company's estimates, the company's banks, most of whose loans had been paid out of the proceeds-of the sale of the $10,000,000 of two-yearnotes became distrustful of the management, and hesitated to extend to the company the usual seasonal credits, upon which it relied to enable it to carry on its business until the autumn, when most of its collections are made. "In order that we might be in a position to deal with this emergency, we caused a farther examination to be made with the aid of Mr. Guy and experts in the agricultural implement business, and reached the conclusion that,, while the management had been improvident in its policy of rapid expansion, and while" the bookkeeping prior to the administration of the prescomptroller (who was appointed only a few months ago) had been imperfect, and while much of the information which had been furnished to us and to our accountants regarding the financial position of the company and its requirements was most inaccurate and misleading, the enterprise was essentially a sound one. We believe that

(National News Association) CLEVELAND, May 13. A city bureau of strawberry shortcake and pie, with inspectors to preserve these national institutions, is in prospect in Cleveland as the result of recommendations : made to the new city charter commission by George E. Murray, famous chef here. "American cooking il fast becoming a lost art," said Murray "Restaurant and hotel cooking has fallen into the hands of Swiss cooks. They despise pies and shortcake and it is impossible to find cherry or berry pie that is not adulterated and strawberry shortcake worthy of the name is as extinct as Buffalo in Cleveland."

the assets and liabilities were correctly

shown in the annual statement aa of Dec. 31, 1912, based upon the audit of Messrs. Barrow, Wade, Guthrie & Co. Our investigation confirms the belief that the company's products are popular, successful and Readily salable. What the company needed was new management, together with the financing of its immediate requirements. To that end, we ourselves, and others interested in the company, have arranged to advance to the company '2,000,000 which is to remain in the business at least until the end of next year, and

we also brought about the election of a new president, an organization of the board and the appointment of sat-

isfactor executive and finance committees. "On the strength of the arrangements above outlined, the company has

been able to re-establish lines of bank

ing credit to the extent of 3,500,000,

which is deemed to be sufficient for

this year's seasonal requirements.

"It is impossible at present to make any accurate forecast of the earnings for the year. The profits will un

doubtedly suffer from the mistakes of the late management. For these rea

sons, and in order to maintain as strong a cash proposition as possible,

the directors have determined to take no action in respect to dividends on the preferred stock until the outcome of the business for the present year is known."

ILL BUT HOT DRUNK INDUSTRY REPORT

Blake to Get Hearing Tomorrow Howell Arrested.

H. S. Blake pleaded not guilty to public intoxication in police court this morning. He will be given a hearing tomorrow morning. BlaJce claims that he was 111 when arrested by Patrolman Remert last night at Fifth and Main streets. He put up a similar plea when arrested several months ago. After having successfully eluded detection for several months, Troy Howell was arrested this morning by Patrolman" Vogelsong on the charge of petit larceny. Howell, it is claimed, has been stealing junk from Henry Holzapfel for some time. He will appear in police court tomorrow morning. James Grimes was fined $1 and costs for public intoxication.

RUMELY GETS NEW PLANT

Former Officer of Laporte Concern, Goes to Sycamore. SYCAMORE, 111., May 13 William Rumely, of Laporte, Ind., former vice president of the Rumely plant there has bought the Patten factory and part of the old Marsh harvester factory here. He is having the buildings fitted up and machinery installed and will have a large force of men at work.' The concern will be known as the Illinois Thresher Company.

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173

CARD OF THANKS. We wish to thank our friends and neighbors for the kindness shown us during the illness and death of my wife. M C. Schweikert and Daughter.

. TO ATTEND FUNERAL The members of the Sol Meredith Post of the G. A. R. will attend the funeral services of the late William Thornburg which will be held at the Pordan, McManus and . Hunt chapel this evening. . The members of the post are requested to meet at the G. A. R. rooms in the court house at 7:30 p. m.

IS ISSUED TODAY United States Leads in Efficiency the Government Report Points Out.

(National News Association) WASHINGTON, May 13. That the industries of the United States are carried on at a higher degree of efficiency than those of other nations is indicated by a report Issued by Secretary of Commerce RedSeld today. The report shows that in the United Kingdom, one-sixth more power and two and one-half times as many wageearners are required to produce a net output of equal value, on account of the greater efficiency of American labor and methods of application of power. In fifteen of the seventeen industries compared the outlay for wages is higher in England than here for an equal output, the difference ranging from 8 per cent for linen, jute, and hemp, to 30 per cent for. silks. In the manufacture of gloves and railway cars, however, the labor cost is from 4 to 20 per cent higher in this country. In these industries wages

HE FLEWJDVER ALPS So Cold He Had to Be Lifted Out of Machine.'

(National. News Association) BERNE. Switzerland,- May 13. Avi

ator Rider, using a monoplane, flew ; over the Alps today. It took two hours j to fly the fifty miles. Rider left Berne !

in a high wind and landed at S ionHe attained an altitude of over 10,000 feet and was so cold when he descended that he had to be lifted from his machine. Rider said he could see glaciers beneath him during the entire flight except when he was so high that the clouds hid them.

are only half as high in England as here, yet the expenditure is 19 per cent higher in Great Britain. Prices in the United States are higher, however. As to the tariff, the report . states that the Germany duties are not so high as' generally supposed, but that this country is discriminated against in instances.

The ladies of the .Reid Memorial church will serve a penny supper Wednesday evening from 5:30, until 7:00 o'clock. Sandwiches, meat ,hot baked beans, pickles, olives, salads, coffee, cookies, ice cream and cake.

Want a Tonic? Co To Your Doctor Is alcohol a tonic? No! Does it make the blood pure? No! Does it strengthen the nerves? No! Is Ayer's Sarsaparilla a tonic? Yes! Does it make the blood pure? Yes! Does it strengthen the nerves? Yes! By asking your doctor you can learn more about this family medicine. Follow his advice. h?&

Hello!" "Hello!"

APPETITE AND DIGESTION BUSY? Then you possess the real secret of good Health. Guard it carefully and at the first sign of distress or weakness taks

STOMACH BITTERS It promotes and maintains health. Get a bottle. It wilt Kelp you.

To Merchant Tailors

WE wish to impress this one important fact upon you, tailors that of buying your Woolen Piece Goods of Us. We are woolen merchants of no mean ability. Our direct connection with the mills affords us the "new things" first handed. We'll guarantee to save you more than the express charges on what you buy. Douglas Tailoring Co

'Tailors and Woolen Merchants

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STEADY READING writing or figuring often produce Eye Strain which brings on Eyeache, Headache and Nervousness. Eyestrain can be overcome, only in one way by wearing Glasses to relieve the strain on the nerves of the eyes. Correcting Eyestrain is my specialty let me help you. Miss C. M. Sweitzer Registered Optometrist Phone 1099

American Seeding Machine Co. Common and Preferred

Willys-Overland Co., Toledo, Ohio 6 Common and 7 Preferred

Emerson Brantingham Co. Common and Preferred

National Bank of Cuba 8 Single Liability Stock

We trade in above stocks and solicit buying and selling inquiries. Quotations furnished on all unlisted stocks and bonds. Private wires to principal markets.

HULBURD, WARREN & CHANDLER Members New York and Chi ago Stock Exchanges. 130 SO. LA SALLE ST., CHICAGO, ILL.

EiYMiY mm

That no home can have an elegant appearance without good, tasteful Rugs or Carpet. At this time, with a large, handsome stock to select from, there is no excuse for not having a good carpet or rug on your floor.

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Mattings in colors to suit everyone, from 1 5c up to 35c.

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Our stock of Rugs is not, broken, so you will be able to find just what you want at the price you want to pay.

Lawn Mowers Garden Hose, Porch Swings, Crex Rugs, and Porch Furniture.

Your Credit Is Always Good

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