Document 6RNag4Xromn2211vQXpbZ6JV3

FILE NAME: Philip Carey (PC) DATE: 1949 DOC#: PC061 DOCUMENT DESCRIPTION: Entry in Moody's Industrial Manual MOODY'S MANUAL OF INVESTMENTS AMERICAN AND FOREIGN INDUSTRIAL SECURITIES JOHN SHERMAN PORTER, Editor-in-Chief Editorial Board % Da n ie l F. Shea Arthur W . Herrmann C. W esley Lee Fr a n k J. Prendergast Fr a n k J. St. Clair G eorge I. Blair D avid M. Ellinwood Ma x Brupbacher 1949 COPYRIGHT, 1949, BY M oody's I nvestors Service, N ew York ALL RIGHTS RESERVED MOODY'S INVESTORS SERVICE 6 5 BROADWAY, NEW Y O R K 6, N. Y. PHILADELPHIA BOSTON CHICAGO LOS ANGELES . PITTSBURGH SAN FRANCISCO Stock Exchange Bldg. 75 Federal St. 105 W. Adams St. Hollingsworth Bldg. Union Trust Bldg. Russ Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD. 310 MOODY'S MANUAL OF INVESTMENTS Ju ly 1, 1915, 2,000 shares (p a r $109) fo r cash tired through exchange for a sim ilar am ount velopm ent of th e Aston process for th* - * of 7% p referred stocX (par $1W). Ing of w rought Iron. * / a V 29, 1918, 23,000 shares (p a r 9100) for N or. 8. 1925, 1.543 hare (no par) for cash Jan u ary l i f f , 65,535 shares (no par; ta r ,, acquisition of properties. to employees and proceeds used fo r general holders by subscription. Proceeds *.* Dec. 22, 1922, 32,319 shares (p ar 9199) as 109% co rp u ftii* p u rp c ie s . the construction of a new plant for du , * stock dividend (paid Sept. 30, 1323). May 24, 1927, 8,*00 ahara* (no par) for cash facturing of w rought iron by the Antes ;: Feb. 4, 1925, 150.000 shares (no par) in ex or ?cn*:r.Vi rorr<}rat purposes. developed by company and for change for 22,910 shares (par $100), or a basis July 1327, 39,357 share (ne par) to stock- porata purposes. o f about 0.55 shares for each $109 p ar share. holders by subscription. N et proceeds used PRIC ERANGE-- 1948 1947 ^ -t A balance of 45,000 shares (par $109) w as re for general corporate purposes, including de Common........... 271W6 22ft~13ft THE CELOTEX CORPORATION CAPITAL STRUCTURE 33Time FUNDED DEBT Amount Charges Earned Interest C&U Price Rangs issue Rating Outstanding 1948 1947 Dates Price 1948 1. 3ft% debentures, 1960___________ Baa $4,348,0001 36.29 42.26 (F& A 1 @3103 102 - 99 210* . 2. 3ft% d eb en tu res (series 1947), I960.. Baa 2,813,000/ 1F&A 1 loo 101 -looft ii::.; : CAPITAL, STOCK Par Amount Earned per Sh. (TJDlvs. p er Sh. Cali Price Ran* Issue Value O utstanding 1943 1947 1948 1947 P rice 1948 *5 . 1. 5% cum. p re fe rre d .................... . $20 256,862 b s. $26.42 $24.25 $ 1.00 $ 1.00 20 20f t- 17ft i : ; ' 3. Common - __ _____ __ __ ____ __ . . . No par 33905,472 shs. 7.21 6.59 1.75 1.12ft 34ft- 22ft Fiscal years. gJRange since 1938, after 100% stock dividend. Before 100% stock dividend, 1935-38 range 48ft-12ft. CSTo July 31, is*, th e re a fter a t 102ft to Ju ly 31. 1951. incl. w hen price again changes; see text. [Range since 1945%[HRange since 1943 for $20 p ar shares fo r $100 p ar shares from 1935 and to the 5-for-l split in 1943, 93-46. Includes 36,140 p artially paid shares. Range since 1947 HI8 TORV Incorporated In D elaw are Ju n e 29, 1935, as 0sUuWcVcVeisU sC oV 4r AinH AreVoV rAggaa ni U iAziaa VtiloV nU tboU tUh1 eG C eloVtewxL VCWo*. (Del.). L atter company was incorporated in D elaw are in 1920 a s "Louisiana Celotex Co." On Ju n e 16, 1932, th e la tte r com pany was placed in receivership. On Feb. 8, 1935, tru stees w ere appointed under Section 77-B of the U31P2533 A PRODUCTS The company m anufacture building and in se uu ilatumi l gg pU AroU dU UuVctWs,) Wc oU nB sA iOsetUinA g^ AfoIMr th e AmA AoVaBtI part oi products m arketed under the trade name "Celotex." These product are manut&ctured principally from bagasse, the fiber rem aining from su troit, Mich., are used for production a wool insulation products. P lan ts a t Cleveland, and Avery, O., M ir* <M * A 1 ^ 1 w fJ*a1c-tu re of*roofing ,product;s.are used `a-. P la n t of Celotex. Ltd., a subsidiary. b was su b l^ ted u n d ^ d al^ (sub" sequently m odified), and on Nov. l, 1935, the business and assets of the predecessor com- pany w ere transferred to tne present com- pany. Details of reorganization appear in M oody's 1935 In d u stria l M anual. In 1937, organized English Company, Celotex, Ltd. In 1937 acquired an in te re st in Am erican G ypsum Co., P o rt Clinton, Ohio, and in 1939 completed acquisition of company. In Mar.. 1945, acquired properties and buslness or Texas C em ent P la ste r Co. located a t Plasterco and Longworth, Tex.; m anufacturers of full line of gypsum plaster and board products. On Aug. 30, 1946, acquired 83 1/3% in terest in El Rey P ro d u cts Co.; purchased balance of outstanding stock in 1947 and acquired d irect ownership of property and assets including 20% in te re st in stock of C alifornia Mill Supply Co., dealers in w aste paper, rags, etc. exterior 'and i n ^ f c e r i o r r " c n * inaulating roof*, and as insulation in th m anufacture of household refrigerators, railway refrigerator ears, cold storage plant and other product. The company alio m anufacture and sells product for correction of acoustical condilion* in office buildings, auditorium s, theater, broadcasting studios, and other place in which acoustical treatm en t i* desired, includm* products m arketed under the trade name A cousti-celotex and Muffletone. The company also is engaged in the m anufacture and sale of other types of insulating and building m aterial products, including loose granulated and b att form s of ro ck w o o l roofing products, gypsum plaster, lath and wallboards, and also various item s used as accessories in the application of products sold, Celotex also sells products, made by other m anufacturers,. such as hard boards, which cut, saw and handle like lum ber (made by Masonite Corp.), and are used for paneling CoAC|SUA u i,P 1946rtie3 ^ 0W W eaver' HaU 8 u b I i 9 iAk ( I $ This Ss p rincipally an op erating company. A t Oct. 31,1948. 100% of th e v oting pow er w as owned in the following companies: Name, place of incorporation and business; A m erican G ypsum Co., Ohio, Inactive. El R ey P ro d u cts Co., Inc., California, inac- tive. A t Oct. 31, 19481 ow ned less th a n 100% o f V<^ 3 o l t t WLW^n mwiti aC leiglh^t ewt e^(i^g. i nh'aatducceo^unyjc^reTvtMaer1laVogUug9 ^reorgvtecaetetf,'wciosu ntmy^ianudlveesa o^j f, expanded m olten blast furnace slag, and is used w ith Portland cem ent to m anufacture Pr cast concrete. __ The Celotex Corp- m aintains office through- }jt th e w orld and h as b ran ch offices in 15 itic located in various part* of th e U nited State, including the Pacific Coast. RRINOIRAL PLANTS <ft PROPERTIED ^ inmirt m anufacturing p la n t 1 located Ua lt M arrero, uini jJceuffceirasuoun jPrtaur-iusuhi,, uLa..,, v ciluodsce two aw 'm ater?1? Eu*Pa b oara. *"MiAaasEiT Officers Bror Dahlberg, Chairman O. S. Mansell, P resident H. W. Collins, Exec. Vice-President Carl G. M uench, Senior Vice-Pres. C. L. Christensen. Vice-Pres. and Chae# Exec. Com. F. A. Irvine, V ice-President A. I. Schimpf, Treasurer C. W. Johns, S ecretary W. D. Becker. Contr. and Asst. Sec. H. W. Conway, Asst. Secretary J. M. Erickson, Asst. Treasurer A. F. O. Pfeiffer, Asst. Treasurer J. W. Franklin, Purchasing Agent G ates Ferguson, A dvertising Mini* G. C. Snym an, E xport Manager M arvin Greenwood, Sales Manager D irectors C. L. Christensen. Chicago H. W. Collins, Chicago W. W. Colpitis, New York Bror Dahlberg, Chicago A. J. Dalistream . Chicago P. H. Davis. Chicago Parrish Fuller, Oakdale, La. S. B. Wilber. New York John Irw in, Chicago O. S. Mansell, Chicago Carl G. Muench, Chicago A. C. Simmonds, Jr.. N ew York G ener-- ai C--ouTM nse--ls Pam . H u rd A Reich* C mDrl3e3 * PrOXl* C * & l M a tin g : T hird T u ..d a , to M QjA rticles of Association of Celotex, L td. provide that unless and until num ber shall be changed as provided therein, num ber of directors shall not be less than 2 nor more than 5. H olders o f first preferen ce sh ares are entitled to appoint 1 such director. By virtue of its ow nership o f 100% of d eferred shares, Celotex Corp. is entitled to elect rem aining d irectors. A t O c t 31, 1948, th e re w ere 5 direetors. N ote: A t Oct. 31, 1948, com pany ow ned 205,323 com m on shares of South C oast Corp. (see general index) constituting approximately 48% of voting pow er of all outstanding stock of th at company. The com panyobtains bagas, the principal from a num ber of sugar mills Louisiana. A plant at Motuchen, N. J., is located on approxim ately 14ft acres of land, and contains about 210,000 square fe e t of floor space, and is used for th e m anufacture of asbestos cement board w ith insulating case (Cemesto), insulating siding. There is also a w arehouse and curing building of ab o u t 50,000 square feet. A plant at P ort Clinton, Ohio and a plant near Hamlin, Tex. are used in m anufacture of gypsum products. _ _ A plant near Lagro, Ind. and a plant in De- d u m b e r of Stockholders: Oct. 31,1948.11 N um ber of Employees: Oct. 31, 1948. im General Office: 120 So. L a Salle S i, O ta* 3, 111. M anagem ent Compensation Plan: For tot y ear bonus paym ents are based on the cons* dated n e t earnings (as defined) in exceu > $1.150,000 and are lim ited in case of u\ 5D ahlberg to $75,000 (ii) C. G. Muench tc P 700 and (iii) certain oth er employees u > of com bined annual com pensation rate of wi employees, such am ount to be distributee * accordance w ith th e ir respective salaries such modifications as are designated bf president. INCOME ACCOUNTS COMPARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS ENDED OCT. 31 1948 1947 1946 1945 1944 N et sales . . . . ___ __ ____ . . . . ___. . . . $54,190.341 $46,872,120 $33,090.464 $22.185.651 $20,693,859 Cost o f ales a n d e x p e n s e ____ . . . . . 41.530.140 35.668.208 25,425,359 20,041.957 19,099,196 (DDeprec., depletion am o rtizatio n .. 1.322,596 925,048 557,250 770,782 816,481 1943 $22,598,269 30,017,468 612,724 1M $23JJ** i 1114 . act O perating p r o f i t ____. . . ________ O ther incom e#..___ ______ _ 11,337.605 388.132 10.278,864 354,220 7,107,856 459,661 1,372,912 244,357 978,182 194,410 1,968,107 166.739 ""m s j iuv ; T otal I n c o m e __ . . . . . . . . . . . . . . . . In te re st on fun d ed d e b t ___ . . . . . . . . . O ther in te re st ______ . . . . . . . . . . . . . . . D ebt discount and expense . . . . __ _ Debt expense w ritten off ........... O ther d e d u c tio n s__ . . . . . . . . . . . . . . . . Federal income taxes . . . . . . . . . . . . . . . Excess profits t a x ___ . . . . __ . . . . . . . . P ost-w ar credit--excess profits t a x .. D ebt re tire m e n t c re d it .......... .......... O th er Inc. taxes 4e conting. ta x res.. 11,725.737 237,694 45.302 35,050 183,414 4.307.000 132.088 10,633,084* 153,075 85,040 10,952 108,487 -3,963,867 > 83,732 7,567,517 160,225 8,135 10,139 100,524 2,476.186 952,300 25,682 1,617,269 114,459 13,580 304,296 400.920 137,220 21,268 1,172,592 111,391 3,394 15,057 176,289 320,500 6,200 (Her 48,120 25,604 2,134,846 135,072 18,485 37,664 225,254 367,363 834,077 CT 20,588 cr n.400 21,092 3JH6E j 1C.* 10 i su* ; i 5 * ; Sti * i cr ** N et p r o f it____ ____ . . . . ___ P re fe rre d d iv id e n d s ___ . . . ___ . . . . . C om m on dividends ____ . . . . ____ . . . 6,785.189 256.862 1,518.091 1 6,227,929 256,863 968,628 3,824,324 256,862 830,513 605.525 170,752 377,772 . f&iS 377,759 530,1 148.863 325,293 aiuiM [! i* 1 <;.* \ 31S urplus fo r y ear . . . . . . . . . . . . . . . . $$,010.235 $5,002,438 $2,736,949 $57,000 927,654 $58.043 sSu, @31945 includes am ortization on accelerated has been m ade for th e e n tire am ount com- 1941: B efore crediting $85,596 net adJustsdU b a n s ($268,910 a fte r deducting $150,486 a p uted on basis as proposed by th e T reasury of provision fo r depreciation for prior g plicable taxes). ept.) and crediting $49,556 applicable n e t and $56,786 restoration of provision m*w*j [3194: B efore debiting $456,634 provision for adjustm ents of depreciable assets. Oct. 31, 1938 for paym ent of first prelrtiH additional F ederal incom e and excess profits 1945: Before debiting $120,321 costs and ex dividends of Celotex, Ltd. taxes and in te re st for p rio r years (w hile basis penses relative to sale of 100,000 additional A fter renegotiation refu n d subject to 1 and am ount are being protested, th is provision p referred shares. approval n e t profit w as $931,187. * * * s* t 't f >% ! il UM :: 5 a*t*v fW* ** I * !r* MOODY'S MANUAL OF INVESTMENTS 311 5-67500 c re d it du e to c a r r y back 1945: Includes S175 226 w rite-off of red em p M&st reef of unused ex cels profits credit tio n p rem ium and unam ortized discount and >*r. expense on debenture 3%s redeem ed during r w -* *?* ^a-12.335 loss on fixed assets y ear. ^ m m c ' M etc. * e a r n in g years ended O c t 51: ' Cost and O perating Oth. Inc. & Inc. Bel. Income Net Sales Expenses Profit Ded. (Net) Taxes Taxes .t $7.5^9,955 $6,724,txi5 $&65,290 d $98,856 5765.434 29,419 10,574.242 9.2SU.992 1,293.250 37.203 1,330.453 63,700 9.126,439 8,471 885 54.4 d 126.246 528.358 10,000 12.317,936 11 242,829 1,075.107 d 254.351 820.756 79,000 13,817,501 12,808,896 1,008,605 d 171,677 836,928 89.300 19.977,155 16,809,199 3,167,957 171,009 2.996.SS3 1,247,790 G eneral Nates Above report excludes Celotex, Ltd. Net profit of th a t com pany for years ended Oct. 31: 1948, $189.231; 1947, 544 148: 1946, S7.906; 1945, $59,343; 1944, $55,628; 1943, $44,103; 1942, $42,774. Net Incom e $736.015 1,266,753 518,358 741,756 747,628 1,749,099 Common D ividends $322,422 312,429 706,138 Com. Shs. O utstand. 206.685 268.685 312.429 629.960 627.676 627.676 Earn. Per Com. Sh. $2.20 4.17 1.19 0 95 0.96 2.55 SHEETS COMPARATIVE CONSOLIDATED BALANCE SHEET. AS OF OCT. 8t 1948 1947 1946 1945 1944 $5,777.132 $5.101,040 $2,453.820 $1,853,639 $2,256,657 * .l*rtirvm eat s e c u r itie s _______ 465.035 4,530,951 6.025.651 850,000 *ad recounts receivable, net- 5,329.177 5,085,297 3,609,718 2,305.393 2.277,526 u s refund claims -- ------ -- 266,730 4,612.704 4,222,985 3.546.482 2,305,964 2,221,552 1943 $2,863,085 159.000 2.W9.7W 2.133,07 1942 $1.190.786 3.179237 2,583*474 if f r r M a s s e ts ____________ properties ................... ip.ctica A am ortisation * * *tfsong p r o p e r ty ............ Mm --sen# property ( n e t) ------ m * . . . -- ------------- m m i C au l Corp. in v estm en t... f ^ ^ v - r a r n t tn Celotex, L t d . ___ %*******% m El Key P ro d . Co-- f-: 5*ul Supply C orp............. -- ****4 CfrutR*ieed P ro d . C o r p .. wx refund -- ________ fttopawrt debt discount c expense ( fttffM -- ............................. $15.719.013 31,514.090 10.332.815 21,181.275 1 438.541 695,161 202.838 622,845 235,915 448.747 $14.874,357 28.349,631 9.249,071 19,100,559 1 438,541 703,074 3202,838 227.379 81,252 475,439 $14,160,971 19.130.942 8,591,957 10,538,985 1 438,541 711,007 2,181,790 0255 T3 220,143 92,264 357,018 $12,757,376 13.183.159 8.094,104 5.089,054 120,197 1 438,541 718,913 195,106 102,671 207,579 $7,605,735 11,570,263 7.317,421 4,252,842 177,523 1 438,541 726,086 1.137,540 83,753 345,669 107,769 148,678 $7.115.943 Il.421.M4 6,867,285 4454.060 111,685 1 438JM1 733,280 1,137,540 50.5 158,924 122,827 126,820 $6.953.497 11.218.640 6.318.695 4.899.945 144,814 1 58.502 740,434 1,270.929 30.000 91.720 217.735 111.054 $39,544,336 $36,103,440 $28,755,790 $19,629,433 $15,024,138 $15454,168 814.518,631 lA fcxm zs fefe&t -- -- i s r i b i t ........ ........ * ^ 1 Tpensee . . . ------ HWFW --------- . . . . * coc. taxes . . . . . . # **9 ^4** requirem ent t;# income taxes .. 2,223.634 919,460 58,183 146.231 437.500 @585,726 $1,000,000 2,234,898 897,131 41,998 126,270 250,000 @1,912,673 $1,300,000 2,510,542 812,733 48.458 93,509 250,000 @830,898 $1,359,294 593,155 40,802 73,781 175,000 @257,810 $988,057 458,63 35,987 94.301 @682,272 $1,427,303 788,496 43454 109,011 @821.277 $1.497,242 641,467 40.390 173,999 (f]574~576 arrant Masfifties ................ . ****** Urans agreement fy m w t t*< on stock sales .. t ^ t Mehrered s to c k ______ |KeMMe stock . . . . . . . . . . . . . p*Jcl com. s h s ........ ipv*** surplus . . . . . . . __. . . ftm e l earp iu s------------------- ^*as ___, t i n s sir*4 com m on stock mmaatsp ---------------------- . . . $4.370.735 6,723.500 5,137.250 869.332 036.144 6.110,639 16,296.735 28.450.100 28.450.100 $39,544.336 $11.348.278 $6,462,969 4,342,000 2,000,000 5,137,250 863,183 Q42,'325 5.969.212 11,286.500 23,298,470 23.298,470 $36,103,440 $8.411,388 $5,641,140 4,582,000 055,130 5,137,250 SK5.472 5.Twr 59 6,691,140 18.477,521 18,477.521 $28.755,790 $8.519.331 $2,499,842 4,825,000 5,137,250 755.472 2,457,684 3.954,191 12,304,597 12.304,597 $19,629,438 $10.257,534 $2,257,257 2,871,000 23,849 3,137,250 755,472 1.953.797 4,017,512 9,864,031 9,864.031 $15,024,138 $5*348,478 $3,189,841 3.000,000 36.941 2,977.250 696.933 1,363,845 3.989,857 9.827,886 9.027.885 $15454,168 $4,626.602 12.927,673 3.158,500 51.802 2*,977i25() 638,410 "706*643 4.126^93 8,449.097 68,441 8.380.656 $14.518.631 $4,025.824 7 *4 of re st or m arket. Comprises as 4 ti ;>U: Raw m aterials (including, a t ta4 `to basic ra w m aterials f o r w hich m is the only substantial m ar- *#t- is tje 112: goods in process, $403,910; fin- ubm* $718.950: o p eratin g a n d m ain - ***-* .itd'-r*. $1.759.432; to tal. $4,612,704. i tea c ^u p rises: $1.577.260 d e b e n tu re 5s 1973 an d 205.328 sh ares o f com - **+ <"trr?ed a t $438,541. M a rk e t valu e u . suu $1.577,260 d e b e n tu re 5s (sub- j :i , $1 056.764; 205,328 com m on * t & total. $1,826,744. % a t cost (less $64,940 re se rv e in a * n wsiturf Celotex, Ltd. (English sub- % t ? fttolidated). a * iA ff.1 tn C ertain-teed sh ares a t w rit- *-* **?: 1*29.743) a fte r c h a rg e of $1,- w *-* ** s M-in surplus d u rin g 1938 fiscal rf.t rft t!n g subsequent p u rch ases and - ns ** ***i At Oct. 31. 1944, co m p rised 147,- * i'.rea. $1.137,540 (q u o ted m a rk e t k K4 Mil. - *. ;-<i.d in 1Q45. f.. ** Rtrrs: 1348. 869,332; 1947. $863,183: *+ *JL .45-44. 755.472: 1943, 696,933; 1942, b ; u i < 342 shares. ducting investm ent in U. S. **mm**f am**, ta x series, a t cost: 1948. $4,- 080.000; 1947, $3,380.000; 1946, $3,190,000; 1945, $1.000,000; 1944, $390,000; 1943, $1,320,000; 1942, $2,303.000. QBIncludes p rovision fo r re n eg o tiatio n in 1942. 1943 a n d 1944. S lP ar v alue: 1947-43, $20; 1942 a n d 1941, $100. ^ P rin cip a l paid-in surplus changes follow: 1948; A fte r c re d itin g $141,427 excess o f con sid e ra tio n receiv ed fo r 6,149 com m on sh ares fu lly p a id in th e y e a r ov er sta te d v alu e of $1 per snare. 1947: A fte r c red itin g $177,353 excess of con sid e ra tio n receiv ed fo r 7,711 com m on sh a re s fully paid during the year over stated value of $1 p e r sh a re less $1,800 costs a n d expenses relative to sale of stock. 1946: A fte r cre d itin g $3.575,000 excess of a m o u n t receiv ed fro m sale a t 36% of 100,00o additional common shares over stated value of $1 p er sh are; less $239,024 cost an d expenses relative to sale of stock. 1945: A fte r c red itin g S503.886 excess o f n e t proceeds of sale of portion of investm ent in C ertain-teed Products Corp. common stock o v e r 1938 w ritten -d o w n valu e th ereof. 1944: A fte r c red itin g $514,953 n e t excess of co n sid eratio n receiv ed fro m sale a t $10.50 p s r s h a re of 58,539 a d d itio n al com m on sh ares, no p a r v alu e ov er $1 sta te d v a lu e an d $75.000 book value assigned to assets received in exchange fo r $125,000 p rin cip al a m o u n t o f S o u th C oast Corp. 5% incom e debentures (subordinated) w hich w e re c a rrie d on books a t $1. 1943: A fte r cre d itin g $529,410 excess from issu an ce of 58,523 ad d itio n al com m on sh ares n o p a r v a lu e o v er $1 sta te d v alu e a n d $132*51$ ex cess fro m sale of 5,696 p re fe rre d of C ertain teed Products Corp. over written-dow n value, a n d a fte r ded u ctin g $4,928 loss on sale of 6,342 reacquired common shares. p A m o u n t received from employees on stock sales agreement. EiAfter reserves. Eli 945: In clu d es $817,327 em ergency facilities covered in full b y reserve. I t Is anticipated that these facilities will continue In use. 036,140 (1947, 42,289) sh ares p a rtia lly paid. T o tal su b scrib ed b y em ployees, $867,360 (1947, $1,014,936); less u n p a id p o rtio n d u e in in stall m ents to 1956, $831,216 (1947, $972,611); B alance, $36,144 (1947, $42,325). SUIn 1946 com pany acq u ired in te re s t in El R ey P roducts Co. and subsequently p u r chased the balance of the outstanding com mon stock and acquired direct ownership of the properties, assets and business. Among th e a sse ts w as a 20% in te re s t in C alifornia Mill Supply Corp. A cco u n ts certified b y A rth u r Young 6c Co. . _ RECORD. FISCAL YEARS 1948 im r i m p re fe rred . . . ___ - $26.42 --com m on ___ ___ $7.21 par a i m preferred - $1.00 --c o m m o n __ _ $1.75 20%-17% --c o m m o n 34%-22% p e r sh.--p re fe rre d $110 76 e tr e td : --com m on. $25.75 Aepree. 4k d ep l--------- 40.45 % k i n I t t i t deprec. Sc depL 36.29 ' a k t . degree , k depL____ _ 22.33 4 pfd. d lv . e a rn e d __ _ 12.36 *-**ys, I960 (issued 1945) 102-99 I960 (series 1947).. 101-100 Vs *9 $1.000 fu n d . d e b t., $5,231 tw r f t '0 fund d e o t.. $ 1.688 dividends e a rn e d .... 26-42 *f sm u t p r e f e r r e d . . . . . . . . @256,863 --c o m m o n ________ @905,472 t1947 $24.25 6.59 1.00 $1.12% 21Va-19% 32%-19% $90.70 $20.06 45.97 42.26 26.00 12.80 106-101 104-93 $4,674 $1,326 24.25 @256,863 @905,472 1946 $14.89 $4.17 $ 1.00 $1.00 23-20 38Va-22Va $71.93 $15.59 44.95 41.83 ' 292.4129 'T05%-1013/b $5,033 $1,859 14.89 @256,863 855.472 1945 $2.36 $0.57 $ 1.00 $0.50 21%-18% 3 5 2 - 14% $47.90 $9.49 16.27 10.25 52 .7430 163V4-102 ""$3^550 $2,126 3.55 @256.862% 755.472 1944 $3.38 i$i0.o.5o3 $0.50 19%-17 15%-U $62.88 $8.90 12.42 7.67 5.33 2.41 $4.426 $1.858 $.58 @156.862% 755,472 1943 $3.56 @$$30.oJo4 $0.50 0321-16 % U % -|g $$0.64 $$88..6688 12.98 9.73 3.77 2J2 $4,909 $1,542 3.56 @148.863 $96,933 1842 $37.75 (a$1. o.5o4 $0.75 75%-66 8%-6% $281.49 $3.55 21.98 19.36 6.52 3.78 $3.653 $1.275 7.64 @29.773 632,068 !> s rtia lly paid sh ares: 1948, 36,140; 1947, 42,289. % stock dividend: rang prior Uiereto, $0%-U%. te* :>4$-43, $20: 1S42. $100. t m p a r stock an d 50 c e n ts o n $20 p a r stock, rea; old $100 p a r sh ares, 93-76%. 312 MOODY'S MANUAL OF INVESTMENTS FUNDED DEBT 1 C elotex c o rp . d e b e n tu re 3Vc*? d u e 1390: Rating--3aa AUTHORIZED--35,000,000; o u tstanding, Oct. 31, 1948, $4,348,000. DATED--Aug. 1. 1945. M ATURITY--A ug. 1, 1960. IN TEREST--F&A J a t oiTice of tru ste e or a t C ity N atio n al r3ank 8c T ru st Co., Chicago. P rin c ip a l an d in te re s t p ay ab le in U. S. legal tender. TRUSTEE AND REGISTRAR--C hem ical B ank & T ru st Co., N ew York. DENOM INATION--Coupon, $1,000; registerable as to principal CALLABLE--A s a whole or In p art on nt least 30 d ay s' p u b lish e d n o tic e a t an y tim e to Ju ly 31, incl., as follow s: 1949__ 103 Mr 1950___ 103 1951... 102% 1952.. . 102 1953___ 101% 1954___ 101 1959.. . 100% SU959. 100 IDAfter Ju iy 31, 1959. Also callable fo r sinking fund, w hich see. SIN K IN G FUND--A n n u ally on o r before first day of fifth calendar m onth next succeeding close of each fiscal y e a r beginning 1945,15% of sinking fund earnings (as defined), but not to e x c e e d $250,000. S in k in g fu n d p ay m en ts shall a v erag e a t le a st $175,000, w h e th er o r not earn e d , fo r ea c h fiscal y e a r a fte r O ct. 31. 1944. D ebentures m ay be ten d ered In lieu of cash at greater of cost or sinking fund redem ption >rice on n e x t A ug. 1; an y excess of deben itures (a c q u ire d o th erw ise th an b y red em p tion) so ten d ered sh all be credited at not to exceed sinking fund redem ption price against n ex t succeeding paym ents. Cash paym ents to be used prior to the next succeeding Aug. 1 at direction of com pany to purchase at not to exceed sinking fu n d redem ption price or to redeem debentures; com pany on req u est of trustee shall pay accrued interest and com missions on debentures purchased or re deemed. Any balance in sinking fund on any A ug. 1 su fficien t to red e e m a t le a st $25,000 (or less if requested by com oany) to be used to redeem debentures by lot on or before next su cceed in g Oct. 1, a n d an y m oneys n o t so used shall be added to next sinking fund paym ent. A n y am o u n ts n o t so used a fte r O ct. 1, 1959, shall be applied to paym ent at m aturity or to earlier redem ption of debentures. Deben tures purchased or redeem ed to be cancelled. C allable fo r sin k in g fu n d a t 104 to Ju ly 31, 1948, incl.. an d th e re a fte r a t above call prices. SECURITY--N ot secu red by an y lien. CREATION OF ADDITIONAL DEBT, ETC.-- Company will not, directly or indirectly, cre ate or assume, or perm it any subsidiary to cre ate or assume, any m ortgage, pledge, or en cum brance on property or assets now owned or hereafter acquired, or on income or profits therefrom , unle-s debentures are equally and ratably secured thereby, except purchase m oney or other p erm itted liens. Com pany will not (A) pay or declare any cash dividend on common, or acquire for value any capital stock (except by issuance or ap plication of proceeds of additional shares), or (B ) m ak e an y in v e stm e n t in excess of $50,000 in capital stock o r obligations of or loans to any com pany not then or im m ediately there after by reason thereof to become a subsidiary (except through issue or proceeds of sale or disposition of such investm ent or capital stock of com pany) if such dividends, acquisitions of stock, or am ount of such investm ents or loans exceed the sum of (a) consolidated net earn in g s (as defined) sin ce Oct. 31, 1944, plu s (b) 1,000,000 an d (c) proceeds of sale or dispesl- ?Ion a fte r date of in d e n tu re of a n y su ch in vestm ent or capital stock not applied as re ferred to In (A) and (B) above after deducting therefrom (i) all cash dividends paid o r de c la re d a f te r Oct. 31. 1944. an d co st o f all stock acquired, in each case as in clause (A) above, and (ii) all investm ents or loans as in clause (B) above, after date cf indenture. Note: The above clauses (A) and (B) of the 1947 issue iNo. ) a re th e sam e e x cep t th a t th e date is A pr 30, 1947 in ste a d of Oct. 31, 1944. ct of aebentures necessary to create, assum e, or lsue, d irectly or in d irect- *v. or p e rm it any ei:.)sidiary so to do, an y ad- Uitscnui d debt, except (a) for refunding, renewal or extension of not to exceed like am ount thereof, or (b) funded debt (as de fined) of a subsidiary to com pany; provided, that comoany -hall not dispose or p art w ith control thereof (except to such subsidiary), unless im m ediately th e re a fte r (1) average an nual consolidated net earnings available for Interest ia* defined) on funded d eb t for two fiscal years Im m ediately preceding equal at least 4 times total annual interest require ments cn consolidated funded debt; (2) excess of current assets (as defined) over current liabilities nt least equal outstanding funded debt, except funded debt secured by liens a3 perm itted, and (3) consolidated n e t tangible assets (as defined) at least equal 2% tim es con solidated funded debt. DIVIDEND RESTRICTION--N o div id en d (e x cept stock dividends) shall be declared or paid on capital stock if thereupon cu rren t assets would be less than tw ice c u rren t liabilities. See also clauses (A) and (B) above. RIGHTS ON DEFAULT--In e v e n t of d efa u lt (30 day grace period fo r p a y m e n t of in te re st, Gfi days fo r sin k in g fu n d in sta llm e n t), tru s tee or 25% of d e b e n tu re s m ay d eclare p rin cipal due and payable Immediately. INDENTURE MODIFICATION -- Indenture m ay be. m odified ex cep t a s p ro v id ed w ith con sent c f 66 2/3% of deb en tu res. PURPOSE--N et pro ceed s used to re d e e m d e b e n tu re 3%s. d u e 1955, a n d fo r ad d itio n a l working capital. TAX STATUS--Com pany refu n d s personal property taxes in Pennsylvania not to exceed 4 mills and in K entucky not to exceed 5 m ills on taxable value, and income taxes in Massa ch u setts u p to 6% an d In M aryland u p to 5% per annum. LISTED--On N ew Y ork S tock E xchange. OFFERED--($5,000,000) a t 102% (pro ceed s to com pany 99) on Sept. 6, 1945 b y a sy n d icate headed b y P au l H. D avis 8c Co., Chicago. PRICE RANGE-- 1948 J947 1946 3%s, 1960 .......... 102-99 106-101 105%-10l% 2. C elotex Corp, d e b e n tu re 3!4s (issu e o f 1947) d u e 1380: Rating--Baa AUTHORIZED--$3,000,000; o u tstan d in g , $2,813,000. DATED--Aug. 1, 1947. MATURITY--Aug. 1, 1960. INTEREST--F&A 1 a t office o f tru s te e o r C ity N ational B ank & T ru st Co., Chicago. P rin c ip a l and interest payable in U. S. legal tender. TRUSTEE AND REGISTRAR--B an k o f N ew York, New York. DENOMINATION--Coupon, $1,000; re g iste rable as to principal. CALLABLE--As a w hole o r in p a r t o n a t le a st 30 days* pu b lish ed n o tice a t a n y tim e a t p a r and interest. SIN K IN G FUND--A n n u ally on o r b e fo re first day of ten th calendar m onth next succeeding close of each fiscal year, beginning w ith fiscal y ear en d in g in 1947. th e le sse r o f 9% o f sin k in g fu n d e arn in g s (as defined) o r $187,500, b u t to be m aintained at a m inimum average of $125,000 fo r ea c h 12-m onths p e rio d re g a rd le ss of such earnings. D ebentures m ay be tendered at an am ount equal to the principal am ount of the debentures in lieu of cash; any excess credits to apply on future paym ents. Deben tures so redeem ed or credited to be cancelled. OTHER PROVISIONS--S am e as d e b e n tu re 3%s, issu e of 1945, -due 1960 (No. 1) w ith e x ception noted. PURPOSE--N et proceeds to p a y term bank loans: balance to general funds. LISTED--O n N ew Y ork Stock Exch*-** OFFERED--*.$3,000,000 a t 97% on Nov* by a syndicate headed bv P au l H. D '.v ` Chicago, and U nion Securities C .-York. PRICE RANGE--1948, 101-100%: *2 ~ (bid prices) CAPITAL TOOK 1. T he Ceiotcx Corp. 5% cumulat)** ^ fe rre d stock; p a r S20, * AUTHORIZED--500.000 shares (incre* - - 100,000 shares, J u lv 12, 1943); outstsn^ , . , 31. 1948, 256.862% shares; p a r S20 . - V ' fro m $100 p ar J u n e 18, 1943, five $20 par issued for each Sioo par share. PREFERENCES--H as p referen ce for and dividends. DIVIDEND RIGHTS--E n title d to cut'. ^ div id en d s of 5% p e r annum , payable quicv- Feb 1 etc. DIVIDEND RECORD--No dividends m $100 p a r sh ares to Nov. 10. 193S when paid clearing up arrears. Thereafter. . div id en d s paid q u a rte rly F eb ru ary 1, r* M ay 4, 1943, incl. In itia l div id en d of 25 cen ts per shir ** on $20 p a r sh ares Aug. 9, 1943; reguUr - dends paid quarterly thereafter. DIVIDEND LIM ITATIONS -- See "Di*!*, k Restriction** voider d eb e n tu re 3%s, 1H6 VOTING RIGHTS--None, ex cep t that U*** . tim e c u m u lativ e d ividends have accrue-! u e x te n t of $2 p e r sh are, holders of re^r** - stock shall have one vote p er share. LIQUIDATION RIGHTS--H as preference ** t common to par plus accrued and imptii ; dends. 1 PREEM PTIVE RIG H TS--N one l CALLABLE--O n an y q u a rte rly dividend d e * in w hole o r in p a r t (by lo t), on 30 days* sefc | a t $20 p e r sh a re plus accru ed dlvidenH * LISTED--On N ew York Stock Exchange f TRA N SFER AGENT--C hase National Bern ' New York. REGISTRAR--C hem ical B ank 8c Trust Cm pany. New York. OFFERED--(100,000 sh ares) a t $20 per ft* (pro ceed s to co m pany $19 p e r share) 00 6. 1945 b y a sy n d ic a te h e a d e d b y Paul H. ** & Co.. Chicago. PRICE RANGE-- 1948 , 1947 :m P r e f e r r e d _____ 20%-17% 21%-19*I 2 * 2. T he C elotex Corp. common; no pm. AUTHORIZED--1,500,000 shares; outstaH# O ct. 31, 1948, 905,472 sh a re s (including V 4- sh a re s p a rtia lly p a id subscribed by m ployees) no par. D ividend R ecord (In $) (Calendar years) 1935-36 N il 1937__ 1.20 1933-- 1939--40 N il 1941__ 1.12% 1942... 1943-45 0.50 1946__ 1.00 1947-- LJ* 1948__ 1.75 01949. 0.50 (TJPaid 100% in sto ck Nov. 4, 1938. 0 T o J a n . 31. _ DIVIDEND LIM ITATIONS -- See 'TX** R e stric tio n '' u n d e r d eb e n tu re 3%s, 1901. VOTING RIG H TS--O ne v o te p e r share. Ct** la tlv e v oting p e rm itte d fo r election of ?* to rs. S ee " v o tin g Rights'* u n d er 5% p rtfm t stock, above. PREEM PTIVE RIG H TS--None. LISTED --O n N ew Y ork S tock Exchange TRANSFER AGENT--C hase National B vt New York REGISTRAR--C hem ical B an k 8c Trutt O pany. New York. OFFERED--(100,000 shares) a t 36% by P iti* D avis 8t Co.. Chicago an d Union Secure C o rp , New York. PR IC E RANGE-- 1948 1947 C om m on___ 34%-22% 32%-19% 38-rSs S ubscription R ights: Common stockbuje of record Oct. 22, 1943 had rig h t to subicr a t $10.50 p e r sh a re , fo r shares of common *'-* on th e basis of one share for each ten tUat then held. DEVOE & RAYNOLDS COMPANY, INC. CAPITAL STRU CTU RE FUNDED DEBT Amount T im es Call P rice Rasga Issue Rating Outstanding Chares Earned Interest Price 1948 1948 1947 D ates 1. D eb e n tu re 2% s. 199$ _____ A $3.185,000 31.90 37.28 A&O 1 0102% 101 -97% l04ir*1fc CAPITAL STOCK Par A m ount 0 E arned p e r Sh. fflDivs. p e r Sh. Call Price Rangt Issu e Value O utstanding 1948 1947 1948 1947 P ric e 1948 1 5- 1. C lass A $12.50 438.592 shs. $4.41 $5.62 $2.60 $1.60 28%-19% 5?39 2. C lass B NO p a r 188.626 shs. 2.21 2.81 1.30 0.80 14 -11 i 0 F is c a I y ears, 0 T o Sept. 30, 1950, incl. w h en p rice a g ain changes. A lso callab le fo r sin k in g fu n d (see te x t). R ange since 1945. i W rin c e 2 % -fo r-l s p lit in 1945; 1932-45 ra n g e fo r old stock, 76%-7. &|Range fo r n ew sto ck sin ce 1945; 1932-44 ra n g e fo r old 68-5. HISTORY In c o rp o ra te d in N ew Y ork. A pr. 6. 1917 to acq u ire th e businesses o f (1) T he F . W. Devoe 8c C. T. R eynolds Co., a N ew Y ork corporation w h ich in 1909 purchased th e business of a N ew J e rs e y co rp o ra tio n of Id en tical nam e form ed, in 1892, a n d (2) D evoe 3c R aynolds Co., in c o rp o ra te d in Illinois m 1397 a n d con tro lle d b y F W D evoe 8c C. T. R aynolds Co The business w as originally established in 1754 b y W illiam P o st. I n N o r., 1925 co m p leted n eg o tiations for the p u rc h a se o f a n d in M ay, 1927 com pleted the p u rc h a se c o n tra c t fo r th e acquisition o f Wads* w o rth , H ow land 8c Co., Inc. O n M ay 1. 1928 acq u ired th e e n tire p a in t varnish and lacquer business and the real and certain personal properties of Peaslee-Gaulb ert Co. of Louisville. Ky. and its subsidiaries O n M ay 31, 1938 acq u ired Jcn es-D abney Co.. o rg an ized in 1919, w ith p lan ts a t L ouisville, Ky. a n d D etroit, Mich., m an u factu rers of paints, varnishes, lacauers end synthetic resins, sold to autom obile, furniture, paint and other industrial m anufacturers, paying th erefo r 28.000 sh ares of class A stock. In A pril. 1945, co m pany a c q u ire d B eckw ith* C h andler Co. w ith p la n t a n d offices o n a 13acre tract a t Newark, N. J., m akers of railroad and Industrial product finishes, and Truscon Laboratories, Inc. of Detroit. In 1948, com pany a c q u ire d B ishop-C onklin P ain t Co., Los Angeles, m an u factu rers of paint, varnishes, etc., now operated as a divi sion. SUBSIDIARIES Truscon Laboratories, W adsworth, How- )?nci & Co.. P easlee-G au lb ert P a in t 6c V arn ish Co., Jones-D abney Co. and B eckw ith-C handler C o, form er subsidiaries, are now operated as divisions. BUSINESS PRODUCTS C om pany a n d its divisions raanuiact* a diversified line of general purpose varnishes, lacquers, enam els and paint sold m ostly under advertised trade also p a in ts a n d finishes u sed b y the aut tive, m arine, railroad, refrigerator, furaMf and other industries; synthetic resinsvttD a re basic m a te ria ls in th e m anufactor w m odern protective coatings and hav uses outside th e protective coatings w ater and dam p proofing products, ana, ialized coatings fo r concrete, masonry m steel surfaces; p recast concrete tue lot 9 d u strlai roofing; an d a r t colors and maur** and artists* brushes. The division haruW p ro d u c ts f o r th e g en eral tra d e account ** m o re th a n h a lf ox to ta l sales, the Indus*** d ivision fo r a b o u t o n e-th ird , and th bra div isio n f o r o n e -te n th . C om pany sells dr** from its factories, through field warehM*