In addressing the annual meeting of shareholders of the American Drug Ca., which was held on Tuesday, Mr. F. J. Raven, the. chairman, said that the purpose of the meeting was to sanction the dividend of 1Q per cent. recor: mended by the board of director Shareholders would remember that during March, 1919, the firm of Voelkel and Schroeder 4.a. was liquidated and purchased by American interests. For a period the firm suffered from depleted staifs and depleted stocks, and owing to shipping - difficulties delay took place after orders had been placed by the new American company in Europe and America. He was happy to state, however, that during the past six months all orders had been filled in a very satisfactory way.
Owing to the rapid growth of the business, the manufacturing plant had been found too small to meet their manufacturing requirements and they had consequently erected two additional large buildings, giv. ing a manufacturing floor area of over 100,000 square feet. This space was sufficient for the present, but, in the very near future, they would require additional buildings, the land for which had already been acquired. The land was secured about two years ago at less than half what the adjoining land was selling for, and the buildings were erected at a saving of over 30 per cent. of present costs.
Sales of the company's products, both imported and manufactured in their factories, had increased steadily. From a monthly turnover of $18,000 during April, 1919, when the company was taken over, the sales had steadily increased to - a turnover of $72,000 during March, 1921, with every indication that they would increase as rapidly in the future or even more so than they had in the past.
It was very interesting to note that, owing to depleted staff and stocks, the company did not reach a dividend paying basis until July, 1920. The company's profits had, therefore, all been.made since July.
Shareholders would note by the balance sheet that the paid up capital is $642,300. It is obvious from the magnitude of their operations that the balance of this capital should be paid—up, and steps were now being taken by the Finance Committee to have the balance of the unissued. shares offered to the public.
The overdrafts with their bankers were larger than they would be under ordinary conditions, but had been caused by the receipt of very large stocks within the past few months which had arrived
Text read from the printed page and cleaned; old type leaves the occasional error.