The Thomas A. Edison Papers Digital Edition

Transcription

Statement of Business made to the Board of Directors
of
The Electric Storage Battery Co.
at their meeting held 
December 13, 1899 Electric Storage Battery.'—incorporated in 1888 under laws of New Jersey.  Owns Basic patents for storage batteries. (V. 69, p. 76, 850.)  Acquired in 1890 about $4,000,000 stock of Electric Vehicle Co.
STOCK, ETC.—Common, auth., $13,000,000: outstanding,$11,875,000.  Preferred, 1 per cent cumulative, $5,000,000 (par $100). After 1 p. c. on preferred, common and preferred share equally.  On Jan. 2, 1901, 6 p. c. was paid on preferred in fall to Dec. 31, 1900.  V.71, p. 1122.  In 1899 increased the common stock from $8,500,000 to $18,000,000, $3,375,000 being allotted to the stockholders at par.—V. 69, p. 76.
REPORT.—Report for year ending Dec. 31, 1899, in V. 70, p. 632 President, Geo. H. Day; office, 100 Broadway, N.Y.—V .71, p. 238, 1121.

Statement of Business made to the Board of Directors
of
The Electric Storage Battery Co.
at their meeting held 
December 13, 1899 December 11, 1899
To the Board of Directors,
The Electric Storage Battery Company
Gentlemen:
The sales of the Company for the year 1899 will amount to approximately three and one half million dollars, an increase of nearly three hundred percent over 1898, when the business was one million and a third. This increase has come from the wider use of batteries and it is a constantly increasing ratio. Thus the last quarter of the year shows a business of over a million dollars gross, and the Company carries over to 1900, unfilled orders aggregating $980,000 with over $500,000 in addition of work ready to bill but undelivered. The net profits on the business in 1898 was slightly over 22% as shown by the annual report. In 1899, with general charges spread over a large business, as they will be, I estimate the profit at about 25%. In other words the current business is earning about $250,000 per quarter or exceeding a rate of 6% upon the outstanding capital stock. This is independent of any dividends from vehicle stocks, which at rates paid last year would give us from stocks in our treasury an additional sum of $80,000 quarterly, or an additional 2% annually upon our stock, showing that our present net earnings, including income from stocks in the treasury, are upon a basis of about eight percent per annum upon the capital stock.
A conservative view of our business shows that if we maintain during 1900 the rate of business of the current quarter, the net profits will more than pay 6% on the stock independent of the income from other sources, and from increased output: and there is every reason to expect that the present rate will only be maintained but increased two or three times over. Since the enforcement recently of the injunction against infringements of our patents, opposition has practically ceased.
The Company has at present in Bank,                  $125,000.00
Goods manufactured but undelivered                   500,000.00
Bills, outstanding, unpaid but good                        750,000.00
Total working capital in use                                     $1,875,00.00
The Company has no floating debt, owes nothing except small current bills not exceeding altogether $60,000 and has no bonded or other indebtedness.
It is apparent that dividends should be paid to the stockholders at an early date, as the returns show a net earning capacity of eight percent, at this time.
Respectfully submitted,
Herbert Lloyd