Sears-Roebuck Recovers

Reports as to the farming situation have been conflicting for some months.

Some of the radical Senators, elected to "protest," have naturally bewailed the farmers' sorry lot and urged legislation sundry and various. On the other hand, the Secretary of Agriculture's recent report (TIME, Dec. 31) was, except for the wheat belt, distinctly optimistic.

One test of the farmers' prosperity has in the past been afforded by the earnings of the large mail-order houses. The annual report of Sears, Roebuck & Co. is consequently illuminating.

Three years ago the concern was forced to borrow $50,000,000 and in addition its President, Julius Rosenwald, made it a gift of $5,000,000 in common stock and financed it to the extent of $17,000,000. Dividends were at once passed. By 1923, however, the $50,000,000 in notes had been paid off, and current liabilities had decreased $14,400,000 as against a decrease in current assets of only $2,300,000. For last year, net sales were $198,422,946 against $166,514,110 in 1922; net income in 1923 was $11,512,618, equivalent, after preferred dividends, to $10.95 a share on the $100,000,000 outstanding common stock. In 1922 the net income was $5,435,168, or $4.87 on each common share.

Since no dividends were paid in 1923, the company was able to transfer $10,953,429 to surplus, which now totals $17,575,017. No official announcement has been made to date as to dividends this year, but the fact that the stock is selling close to par indicates the opinion that they will shortly be resumed.