The Chairman in his speech said:
The audited balance sheet and the statement of profit and loss account for the year ended December 31, 1938, have been circulated to al common stockholders and before asking for your acceptance of these accounts, as submitted, I would like to make the following remarks.
Earnings: In spite of the many difficulties confronting finance and other companies during the past twelve months, we are pleased to be able to report a successful year resulting in a' net profit from cperations of $75,813.85.
Reserves: Out of this working profit of $75,813.85 your Directors decided to transfer the sum of $71,060.51 to reserves in order to provide for any possible losses on several doubtful accounts. The balance sheet now shows a total reserve "heard testimony from Mr. Welles, the Under-Secretary Admiral W.D. Leahy, Chief Navel ations, and' Brigadier-Marshal, the of $443,174.47.
Loans: For the year under review loans amounted to $913,872.86 as compared with $888,183.55 in 1937 and $531,540.62 in- 1936.
This total must be considered satisfactory in view of the severe curtailment of business in April due to the fall in exchange.
Foreign Currencies: In order to offset to some extent the possibility of loss' from a further depreciation in the local currency, a certain proportion of loans has been made in United States dollars and in pounds sterling.
Outlook: Although trade in genera' appears depressed, prospects in on: by Senator Key line of business would seem to be of the Foreign more encouraging than they did year ago, and as scon as conditions 'n the Far East return to normal your Corporation will no doubt be e Navy Department has awarded n a position fully to participate in Consolidated Aircraft Corpora-he recovery for which we hope. a contract for Cenin and Following the Chairman's speech parts, totalling nearly $5,000,000. the following resolutions were pro: tention of aerial expenditure of $2,140,000 for posed, seconded and carried: research "Resolved that the balance sheet and toment of profit and loss for the solved that the fal wing gentle-1938, as certified. 5 A "the Com-auditors, be men be'elected Directors of the Cor-oration:—Messrs, R. H. Parker, H. F. eyne and M. Speelman. military Resolved that Messrs. Turner, Sturrock & Brown be re-appointed Auditors "the superiority Greene for the year 1939.
jority of German
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Text read from the printed page and cleaned; old type leaves the occasional error.