Earnings

In many cases 1931 profits were even smaller than expected because business was worse than ever in the last months of the year. As a warning of what to expect, the directorates of both United States Steel Corp. and Pennsylvania Railroad Co. last week declared that common dividends can be continued only if a marked improvement occurs.

Exciting to all finance and industry was the General Motors Corp. statement. In 1930 the company made $153,000,000. Last.year it made no less than $96,000,000 even after deducting a "nonrecurring" loss of $19,000,000 in foreign exchange and securities. Its corporate war-chest, consisting of cash and marketable securities, came to $204,000,000 against $179,000,000 at the end of 1930.

General Motors' earning power, even in Depression, cheered those who have claimed that it, not United States Steel ! Corp., is the leading industrial. To Steel -- 1931 was no exception to the rule that it is as poor in Depression as it is rich in prosperity. Special income of $19,000,000 saved U. S. Steel from showing a $6,000,000 loss. Its net income of $13,000,000 compared to $104,000,000 in 1930, $197,000,000 in 1929. A $49,000,000 deficit resulted after payments of dividends. Bethlehem Steel, showing no special income, made $115,745 against $29,000,000.

The biggest profits in its history were made by F. W. Woolworth Co. which reported $41,000,000 in earnings. But $10,000,000 of this amount came from the profits resulting in the sale of stock in the British company. Deducting this, the earnings of $31,000,000 compared to nearly $35,000,000 in 1930. Sales were $282,000,000 against $289,000,000.

For the first time the chain store sales of Sears, Roebuck & Co. bettered its mail order business. On a 15% lower price level the company made $12,169,000 against $14,308,000.

Less successful was Montgomery Ward & Co. Operating losses combined with a $5,300,000 inventory shrinkage caused a loss of $8,712,000. Sewell Lee Avery, new

M. W. chairman, anxious to get the company 100% trim, ordered other write-offs and charges to reserves which swelled the deficit to $19,312,000 before payment of dividends on the "A" stock.

A surprisingly sharp reversal was shown by famed Hawaiian Pineapple Co., Ltd. In 1930 it earned $2,531,347. Last year it took an inventory loss just $1 smaller than its 1930 profits. An operating loss lifted the 1931 deficit to $3,875,000.

In 1930 Hart, Schaffner & Marx made enough money to stand a $1,000,000 inventory loss with $504,000 to spare. Last year it had a deficit of $2,994,000 of which $976,000 was an operating loss, the rest a reserve to cover a subsidiary's loss. Famed Hart, Schaffner & Marx suits now sell for $25 minimum against $27.50 last year, $35 in 1928.

Other profits and deficits were: 000's Omitted D = Deficit

1930 1931

Cluett, Peabody & Co. 798 553

Commercial Solvents. 2,717 2,118

Commonwealth &

Southern 28,735 22,369

Curtis Publishing ....19,121 12,217 Gen. Outdoor Adv. . . 345 1,834D

Hercules Powder 2,376 1,430

Inland Steel 6,498 1,263

Mullins Mfg. 331D 100

Scott Paper 986 997

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