done largely out of depreciation charges and the improved
facilities thus afforded have, in great measure, provided for the
large extensions of the business. There has been no floating
debt, with the exception of $150,000 borrowed temporarily at
the close of the year for construction purposes in advance of the
issue of additional securities. To provide for the further exten¬
sions of the plant required by the growth of business already
assured for the coming year, funds will be raised through secur¬
ity issues.

The strong position which the Company now occupies, and
the high rank which all of its securities hold, have led the
Directors to believe that the most satisfactory way to provide
the necessary amount is to allow the stockholders to obtain
the full benefit from this enhanced value, and they will, there¬
fore, shortly offer to the stockholders the privilege of subscrib¬
ing for $1,200,000 of Treasury stock at par.

Attention is called to the report of the First Vice-President,
presented herewith.

By order of the Board of Directors,

SPENCER TRASK,

President.