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ANNUAL  STATEMENT

MANHATTAN ELECTRICAL SUPPLY COMPANY, Inc.

DECEMBER 31, 1928
 

March 9, 1929.
 

To the Stockholders:
 

I submit balance sheet ^nd income account of your company for the year ended Decem¬
ber 31, 1928.

In explanation of this statement a reviewal of the changes which took place in your company
during the past five years will be helpful. Prior to 1926, your company was engaged primarily in
the manufacture of dry cell batteries which business it sold during that year. This necessitated a
realignment of its  various departmental forces, and made it necessary to venture into other fields.

During the year 1927, the principal acquisition was that of the Troy Laundry Machinery
Company, the second largest manufacturer of laundry machinery. After a year of careful investiga¬
tion and analysis of this company's affairs and the potentialities of the field, a drastic reorganization
was decided upon early in 1928. It was found necessary to refine and add to its line of equipment
and to make it possible to carry out this policy of expansion your Board of Directors deemed it in
the interest of its shareholders to suspend the payment of dividends.

The work of reorganization and the extra expenses incident thereto have been referred to in
previous letters to stockholders. In September, 1928, you were also advised of the policy of the Board
with respect to the writing off of various deferred development expenses and other intangible items
and the accompanying profit and loss statement reflects the carrying out of that policy.

While the work of reorganization is not as yet complete, the affairs of your company rest on
a much firmer foundation and the effect of such work of reconstruction is now being reflected in a
greater volume of business. While sales for 1928 show an increase of only $424,000. your company
closed its fiscal year with unfilled orders in excess of $1,000,000.

All bank loans were liquidated during the year, resulting in a greatly improved current posi¬
tion. As of December 31st, total current assets amounted to $5,461,123. and current liabilities to
$1,033,472. or a ratio of 5.28 to 1 which, in comparison with 1927 shows a vast improvement.
 

Respectfully submitted.

By order of the Board qf Directors,

R. H. BROWN, President.