American Woolen

Skepticism concerning the future of the American Woolen Co. has for a long time been current among business men generally, and Wall Street stock traders in particular. The resignation (TIME, Sept. 15) of William M. Ward as President, although undoubtedly due to the stated cause of ill-health, aroused further concern. Finally, the annual report of the Company for 1924 appeared as a fitting climax. It showed that the Company had had the worst year since its organization in 1899.

During last year preferred dividends were maintained, but in September the common dividend was passed. The annual report revealed the reason. For 1924, a deficit of $11,969,837 was incurred, compared with a profit of $9,326,623 for 1923. Last year the net loss after taxes and charges amounted to $4,025,865, and $2,918,555 was in addition charged off for depreciation, leaving a deficit before dividends of $6,944,420. Since $3,500,000 was paid out in dividends on preferred stock, $1,516,667 in common stock, and $8,750 on stocks of subsidiaries, the deficit mounted to $11,969,837. Thus the profit and loss surplus, which in 1923 was $33,596,725, was pulled down to $22,127,356 on Dec. 31st, 1924.

Andrew G. Pierce, newly elected President, declared : "Veteran mill men have characterized the depression as the "worst since the Civil War, and our experience would seem to bear out the statement." There seems to be little of the Pollyanna about Mr. Pierce. Concerning the company's future, he said, "the new year is not sufficiently advanced to make predictions valuable."