COMMERCIAL CREDIT COMPANY Administrative Offices - 300 St. Paul Place - Baltimore 2, Md. THE CHASE MANHATTAN BANK OF THE CITY OF NEW YORK, New York 15, New York Registrar MORGAN GUARANTY TRUST COMPANY OF NEW YORK, New York 15, New York AND SUBSIDIARIES 1959 Annual Report COMMERCIAL CREDIT PLAN TO THE STOCKHOLDERS AND EMPLOYES Products offered by Manufacturing Companies. 24 Manufacturing Companies balance thest......... 25 Location of offices 26-27 COMMERCIAL CREDIT COMPANY AND SUBSIDIARY COMPANIES IN 1959 HAD NET OPERATING EARNINGS of $27 860 866 ($5 48 per share) after taxes SET ASIDE $23 087 649 ($4 54 per share) for United States and Canadian income taxes PAID $14 211 051 in DIVIDENDS ($2 80 per share) PAID AN INTEREST BILL of $56 017 125 STOCKHOLDERS' EQUITY at year end was $241 067 395 ($47 43 per share) OWED $1 488 456 000 at year end to others on unsecured notes, both short and long-term HAD TOTAL ASSETS of $1 892 037 870 at year end PAID SALARIES, commissions and wages of $66 386 199 to approximately 13,500 employes HAD RESERVES available for credit to future operations of $162 577 316 at year end To our Stockholders: In retrospect, the economic events of 1959 were, to an unusual extent, the result of developments in the steel industry. The recovery in the nation's economy which started late in 1958 continued for approximately the first six months, subsided during the four-month steel strike and resumed in November, when the steel workers returned to work. Even though business rose sharply the first six months, the Federal Budget for the fiscal year ended June 30, 1959 closed with a deficit of a little over twelve billion dollars. The Treasury Department of the United States was required to finance this deficit by borrowing. This created pressures on the money market. Interest rates rose early in the year above the 44% permissible ceiling on Federal Government issues over five years. Treasury financing then was concentrated in the short-term market, where higher rates could be and were paid, with the result that short-term interest rates climbed to their highest point in twenty-five years. Since about one-half of our funds are borrowed on a short-term basis, we accordingly paid considerably higher prices for our money. It is hoped that the Congress will take quick action to amend the law and remove the 44% ceiling on Treasury Bonds so that some of the Government's refinancing program can be of the long-term variety. Such action is necessary if we are to see an increase in savings-savings that are required to expand our economy. It is significant that in 1959 personal net savings decreased 15.8% from those of 1958. Our activities for the year are detailed in the report which follows. We believe you will find the results satisfactory. As for 1960, we intend to expand our finance operations and particularly our services to individuals even in the face of what looks like sustained high interest costs. Our continued growth is not the result of the work of one person or one group. It represents the co-operative effort of all employes and the confidence of the directors and stockholders, to all of whom are extended sincere thanks. |