The total net earnings for the year amount to, approximately, $2,000,000, as compared with $1,447,652 for the preceding year and $1,618,506 for the year before that. In order to appreciate the full import of these figures it is necessary to remember that while the volume of business in 1909 was only 65 per cent. of that of 1908, the profits were equal to 90 per cent. of those for the year 1908, and that during the year just completed, whereas the volume of business was only 85 per cent. of 1908, the profits were equal to 124 per cent. of those for the year 1908. The profits for the year just closed were about $700,000 In excess of requirements for fixed charges and preferred dividends. Of this amount $117,900 will be used to retire $107,185 of the bonds of the Blake & Knowles Steam Pump Works, leaving thereafter only $194,970 of these bonds still outstanding.

Should the current year's business continue as at present, and as it has averaged during the past six months, this year's profits should produce a surplus of about 7 per cent. on the common stock outstanding.