Baldwin

The notoriously feast -or -famine character of the railway equipment business was illustrated by the annual report of the Baldwin Locomotive Co. for 1924. In 1923, the company's net profit before dividends was $6,516,465, or $25.58 on each of the 200,000 common shares, after paying the 7% dividend on the 200,000 preferred shares. In consequence, after paying $1,400,000 on both its preferred and common stock, profit and loss surplus was brought up to $19,847,242. Last year, however, net before dividends was only $1,320,026, or only $6.60 on each preferred share. Thus, when the 7% dividends on both preferred and common issues were paid--$2,800,000 in all,--a deficit of $1,479,974 remained, which brought the concern's profit and loss surplus down to $18,367,268 as of Dec. 31, 1924.

Such a statement is a peculiar background for a violent rise in Baldwin common on the Stock Exchange, yet just this movement occurred. The cause lay in the announcement by resident Samuel M. Vauclain that the Baldwin Locomotive Co. had perfected a new Diesel oil-burning locomotive, which would burn the cheapest type of crude oil, and effect a saving in fuel bills of from 25 to 50% over coal-burning steam locomotives. The new engine has resulted from experiments conducted by Baldwin over . The past ten years. Disclaiming stores that the new Diesel locomotive would "revolutionize the locomotive industry," Mr. Vauclain held that it Would supplant steam locomotives in certain kinds of work, such as running across long, water less territories, or where oil is abundant and coal is not, or where smoke is a nuisance, or on switching jobs.