Central Leather

Probably the most funereal note struck in the business world lately was the Central Leather Co. statement. Operations during the calendar year of 1923 showed an unexpectedly heavy defict of $7,272,243, compared with a surplus of $1,528,209 in 1922. But in 1920 a deficit of $25,751,666 occurred, followed by another of $11,651,425 in 1921, so that the Company's profit and loss deficit Dec. 31, 1923, was $12,637,851. Last year, operations did not even cover expenses, and interest on bonds was paid out of surplus. Common and preferred dividends have been passed since 1920. The balance sheet reveals conservative management laboring under difficulties. Cash declined from $6,385,240 in 1922 to $4,278,989 last year; inventories have fallen about $8,000,000 and in the last statement were at $40,040,571.

President George W. Childs' remarks accompanying the statement, although admirably frank, told little not already known about the industry. Many of the Company's present difficulties he attributes to the policy, now proved mistaken, of stocking too heavily; low leather prices and a three-years' depression in the tanning industry have consequently entailed severe losses. Mr. Childs, however, philosophically pointed out that tanning is a "basic industry" and bound to recover sooner or later. Subsidiary lumber companies did well last year in earnings and business, furnished almost the only bright spot in the 1923 statement.