Last year was the most successful in the history of the society both as regards total business done and as regards the net profits. As will be seen from the figures given below the total expenses last year were somewhat less than 10 per cent while, in the previous year they were considerably more than 10 per cent. In other words the business has not only increased but it has increased at a proportionately less expense.

Below is given the letter, slightly abridged, which President Taussig sent to the directors in July. The suggestions made in it were unanimously adopted by the directors:

CAMBRIDGE, July 17, 1891.DEAR SIR: - I enclose statement summarizing the results of the society's operations for the year 1890-91. The net profits after paying all expenses and commissions, taking stock at its actual worth, and allowing for depreciation of fixtures will be $5,353.74. There should be deducted a sum for the expenses to be incurred by us in consequence of the alterations in our store, etc. I have estimated these at $590 but they may be somewhat larger. I think it desirable to pay the dividends as promptly as possible, before Nov. 1 of next year, and therefore wish to secure a vote of the directors fixing the amount of the dividend. I suggest that we divide the round sum of $2,800, reserving the rest of the net gain for addition to capital and for possible expenses for alterations beyond the sum estimated. Last year we divided about $1,800. If we follow the usual rule of past years, and divide two-thirds of the net gain, we shall have a larger sum, about $3,100 for dividends; but I think it wise to increase our capital as much as possible, and the members will probably be satisfied with the division of $2,800. Kindly let me know whether you approve of this plan that the dividends of individual members may be figured out without delay.

Very truly yours,F. W. TAUSSIG. 1890-91. 1889-90.

Total business, $7+++,734 84 65,350 56

Total expenses, salaries, commissions to employees, 7,042 61 6,685 63

Net profits, 5,353 74 2,700 00

Deduct therefrom expenses of alteration, etc., $500 590 00

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$4,763 74

Deduct for addition to capital, $1,963 74

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Dividend, $2,800 00