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Argus Sales Show Drop of $2,880,036

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Argus Sales | Show Drop Of $609,381 Net Loss For Year Listed In Stockholders' Report - Argus, Inc., reported net sales w- $6,115,370 for the fiscal year end- ing July 31, a drop of nearly three million doll; ^95,406 in sales rep n-ipar- able period or the previous year. The figures, including a net op- erating loss of $609,381, were list- ed in the annual report to stock- holders, mailed out last night. The consolidated loss, according to the report, would have totaled $885,281 if it were not for a special credit of $275,900. This represented an estimated refund of prior years' income taxes by reason of carry- back provisions of the internal revenue code. J Gain In Working Capital ^ On the asset side of the picture the report notes that during the four-month period from April 1 to July 31, Argus net sales, in- cluding other income, were $1,981,- 604 and net profit before special charges was $211,250. During ap- proximately the same period the net working capital increased from $30,961 to $139,938. In a section of the report dis- cussing management, the firm lists a proposed slate of five new direc- tors whose names will be pre- sented to the stockholders at the •Nov. 16 annual meeting. They are John Airey, chairman of the board of King-Seeley Corp.; George J. Burke, attorney and board member of the Detroit Edi-' son Co.; James M. Delaney, present' acting general manager of the lirm; Robert E. Miller, president and director of the Airlines Ter- minal Corp. at Willow Run; and Rudolph Reichert, president of th|i Ann Arbor Bank and a director w The federal Reserve Bank of Chicago. ana f Homer Hilton, Argus vice-presi- dent in charge of sales, and a member of the board since June, is not, seeking re-election. Inventories Studied A point brought out by the re- port is that a detailed study of: the company's inventories was; authorized to determine what por-j tion of the inventory loss of $709,-' 000 recorded on March 31 was ap- plicable +" ""'r^r periods. An h 'nt accounting firm; has rr that in its opinion $1° the $709,000 provision for i; vt'niury losses, at March 31, was applicable to the period prior to July 31. As a result of the profits re- ported to stockholders at the end of July, 1948, which naturally did not take into account the inventory losses later discovered for that fiscal year, bonus payments total- ling $38.818 were made to four Ar 'cers and employes. If the ; ;>;ry losses mentioned can be attributed to the prior year, such bonus payments would amount to only $22,380, the report stated. Legal counsel for the firm is studying the question of recovery of the differences. The annual re- port states that "appropriate steps have been taken to protect the in- terests of the company." Bank Loan Retired Between March 31 and July 31, the company retired a $112,500 term bank loan and $179,000 of its I three per cent negotiable notes, which had matured May 1. Since) July 31, the company has also re- duced its demand bank loan through payments aggregating $650,000. In discussing the terms of the I $900,000 loan originally authorized [> by the Reconstruction Finance (' Corp., the annual rpnnrt notes that the company :••' "e that it will not, without ritten con- sent of the RFC, pay any dividends on its common or preferred stock. Since the original loan was re- quested the firm has asked that a smaller loan be authorized, total- ling $750,000, the difference be- tween that sum and $900,000 hav^ •;g been received from the liquids?' . ion of company assets. __