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The New York Air Brake Company

165    BROADWAY
 

New York, March 9th, 1921

To the Stockholders:

There is presented herewith the Company's Thirty-first Annual
Statement for the year ended December 31 st, 1920.

Owing to the stringency in the money market during the past year,
the Railroads were not able to purchase very large amounts of new
equipment, and, while our sales were nearly double the year before, over
one-half of the amount was for repair parts which the Railroads were
compelled to purchase to keep their trains in operation.

You will note that provision has been made for Federal taxes, reserve
for depreciation and an additional substantial reserve for contingencies, and
further that a very large amount has been written off various assests to meet
the present-day deflated condition.

Your property has been maintained in the highest state of efficiency,
and liberal allowance expended for maintenance and repairs.

The indebtedness to banks for borrowed money has been decreased
substantially $2,000,000.00 during the past year, and this has been accom-
phshed largely through the reduction of merchandise inventories.

Now that the Winslow bill has become a law and the railroads
are receiving the money due them from the Government we expect that
they will soon place orders for large amounts of new equipment.

C. A. STARBUCK,

President
 

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