Document 71JRj8wkOnLbMw4e6a0Qm03Ee

HK71 1'AINIKS m-y"* T`*`KTII CLEVELAND, OHIO TO THE SHAREHOLDERS: December 30, 1930. On behalf of the Board of Directors, I present herewith the Annual Report of the Company and Its subsidiaries as of the close of business October 31, 1930. Your Officers and Directors feel in view of the trying conditions prevailing during our last fiscal year, that the Company was fortunate in being able to show any profit. During the last six months it was necessary to constantly absorb in our costs the adjustments in our inventory due to declining commodity prices, and at the end of the year in taking our inventory at the lower of cost or market, we absorbed in our figures the final inventory losses. Had it not been for the drastic decline in prices, not only of bulk products but of our trade-marked lines, the net profit of the Company would have been very satisfactory. Your.particular attention is directed to the fact that the profit, before depreciation, interest and other deductions, amounted to $1,314,607.58. During the year we made provision for full depreciation which amounted to $633,579.76. Our whole organization has given particular attention to the problems of manufacturing, merchandis ing and distribution of our products at lower costs, and working along these lines, has succeeded in reducing the operating expenses to the minimum, and has made several important arrangements for the distribution of our finished products at costs that are bound to return good profits under anything approaching normal conditions. The present low prices of commodities, and our exceptional position in regard to the control of our raw materials, coupled with our low manufacturing costs, places us in a very favorable position to meet any conditions that may arise in 1931. In view of our strong financial position and the fact that our personnel is the best in the history of our organization, the management is encouraged to believe that the Company will make a satisfactory showing in the new fiscal year, even though conditions should average no better than for 1930. The Food Division of the Company is making good progress; the plants are operating at capacity and the prospects for future-profits in this department of our business are exceedingly good Our Paint and Varnish Divisions, our Metals and Lead Divisions, and our Chemical and Pigment Division are all on an efficient and economical operating basis, and with the increase in industrial activity anticipated with the turn of the year, these Divisions will contribute materially to our income. In presenting this Annual Report, the Officers and Directors wish to express their keen appreciation of the co-operation they have received from the employees of the Company. Yours truly, ADRIAN D. JOYCE, President. GLD002989 THE GLIDDEN COMPANY-- CL AS OF THE CLOSE OF BL ASSETS Current Cash on Hand, on Deposit and in Transit Customers'Notes and Trade Acceptances Receivable $ 437,143.94 Customers' Accounts Receivable 4,003,626.00 Less: Allowance for Doubtful Accounts, Discounts, etc. $ 4,440,769.94 188,280.03 Miscellaneous Current Accounts and Creditors' Debit Balances Inventories--Raw Material, in Process and Finished Merchandise on Hand and in Transit on basis of lower of cost or market value (Certified by Management) Other Assets Officers' and Employees' Notes Receivable for Purchase of Common Stock--14,831 shares Common Stock purchased for resale to Employees--18,349 shares at cost Cash Surrender Value of l ife Insurance Policies Miscellaneous Notes, Accounts, Salesmen's Advances, etc. Permanent Land Buildings, Machinery and Equipment, etc. Less: Allowance for Depreciation $15,972,420.88 3,774,663.52 Imvstment in California Mining Companies and Ore Lands Mining Companies--Fully Owned (Not operated during current year): Investment in and Advances to The California Zinc Company and Afterthought: Zinc Mining Company Ore Lands, less allowance for Depletion Good-Will, Patents. Trade-Marks. Reorganization, Development Expense, etc Prior Preference Stock Purchased for Sinking Fund (520 shares at cost) Deferred Inventory of Advertising Stock. Stationery, Factory Supplies, Unexpired Insurance Premiums, Prepaid Taxes, Unamortized Discount, etc $22,515,068.25 4,252,489.91 125,384.39 7,694,341.51 $ 332,558.07 319,949.10 188,331.75 78,633.89 $ 2,210,107.77 12,197,757.36 $ 945,863.63 393,915.77 $14,587,284.06 919,472.81 14,407,865.13 1,339,779.40 3,030,156.33 49,275.50 700,197.83 $35,034,031.06 s Board of Directors and Stockholders, The Clidden Company. Cleveland. Cleveland, Ohio. December 2b, 1930. Gentlemen:-- We have examined the books of account and record kept in Cleveland pertaining to the assets and liabilities of THE GLIDDEN COMPANY. CLEVELAND, as of the close of business October 31,1930, and have examined reports and other data on file In Cleveland pertaining to the assets and liabilities of subsidiary companies and branches, and submit herewith Consolidated Balance Sheet as of the date named. Cash funds on deposit as shown by the records of the parent company and by recon cilements on file from subsidiaries and branches were verified by direct correspondence. Notes and trade acceptances receivable at the Cleveland office were satisfactorily accounted for by us and detailed lists of items at subsidiaries and branches were submitted for our inspection. Accounts receivable from customers were checked with detailed trial balances submitted for our inspection, and it is our opinion that the allowance provided for doubtful notes and accounts is sufficient. The merchandise inventory, as evidenced by detailed inventory sheets submitted for our inspection, is based upon physical inventories taken and priced under the direction of the management and certified by a responsible official of the company as to quantities, salability and basis of valuation, the latter representing Gl0002990 N 2298.01 n d , An d s u b s id ia r ie s OCTOBER 31, 1930 Current LIABILITIES Drafts for Merchandise in Transit Accounts Payable for Purchases, Pay Rolls, etc. Accrued Taxes, Interest, Insurance, Royalties, etc. B $ 305,000.00 1,062,128.80 362,124.95 $ 1,729,253.75 Funded Debt Five-Year 5\4% Gold Notes (due June 1, 1935) First Mortgage 6% Bonds Subsidiary Companies: Outstanding ($35,000.00 due April 15, 1931) $ 6,000,000.00 285,000.00 6,285,000.00 Reserves For General Contingencies and Estimated Loss on Purchase Commitments Nominal Capital Stock--Subsidiary Company Metals Refining Company 6% Cumulative Preferred--5,000 shares 178,781.65 $ 500,000.00 Capital Stock (The Clidden Company) Prior Preference 7% Cumulative Authorized 75,000shares $ 7,500,000.00 Less: Unissued and Redeemed 557 shares 55,700.00 Common (No Par Value) Authorized Issued Stated Capital $5.00 per share 800,000shares 695,226shares 7,444,300.00 3,476,130.00 Surplus Capital Unearned Profit and Loss $10,843,178.98 1,399,485.86 3,177,900.82 15,420,565.66 26,840,995.66 $35,034,031.06 (Note A) The Companies were reported as being contingently liable at October 31, 1930, on letters of credit in the amount of $451,311.80 and on foreign drafts discounted in the amount of $7,747.60. (Note B) This balance sheet is subject to any adjustment found necessary upon determination of final liability of the Companies for taxes and to the comments in our "Certificate" included in and made a part of this report. the lower of cost or market values at October 31, 1930. Test checks as to the mathematical accuracy of inventory computations and method of pricing were made by us. I nvestmcnt in California mining companies was increased during the year in the amount of {78,58676 representing additional cash advances Statements of these companies for the fiscal year ended October 31,1930 showed an increase of {18,648.09 in development cost of mines. Provision has been made for all ascertained obligations of the Companies at Occober 31, 1930. The liability for outstanding notes and bonds, as stated, was verified by direct correspondence with the trustees of the issues. Subject to the foregoing, WE HEREBY CERTIFY, that in our opinion, based upon the records examined and information obtained by us and subject to any necessary ad justment upon determination of final liability for taxes, the accompanying balance sheet sets forth the financial position of THE CLIDDEN dOMP/iNY--CLEVELAND, and SUBSIDIARIES, excepting the California mining companies, as of the close of business October 31, 1930. Very truly yours, Ernst & Ernst Certified PuUic Accountants. V s GLD002991 CONDENSED CONSOLIDATED OPERATING STATEMENT THE GLIDDEN COMPANY--CLEVELAND,*AND SUBSIDIARIES For the Fiscal Year Ended October 31, 1930 NET SALES Profit before Interest, Depreciation and Other Deductions Interest on Bonds, Borrowed Money and other deductions--Net Profit before Providing for Depreciation Provision for Depreciation . , Net Profit $36,434.052.61 1,314,607.58 669,662.08 $ 644,945.50 633,579.76 $ 11,365.74 CONSOLIDATED SURPLUS ACCOUNT THE GLIDDEN COMPANY--CLEVELAND, AND SUBSIDIARIES October 31, 1930 Balance October 31, 1929--as shown by Audit Report $17,267,184.12 Deductions Dividends paid: Subsidiary Company--Preferred The Glidden Company: Prior Preference--7% Common: Cash $1.80 per share Stock--2% (13,476 shares) Addition Net Profit from Operations for the Fiscal Year Ended October 31, 1930 $ 30,000.00 519,841.00 $ 1,240,763.20 67,380 00 1,308,143.20 $ 1,857,984.20 - 11,365.74 1,846,618.46 $15,420,565.66 GLD002992