Document 856zydXz22L9NGdb9wQOJmxwd
Hammond, Indiana
November 25, 1931
FINAL CLOSING INVENTORY BOSSES
Hr* WJ*Brien
Dear Mr. 0*Brienl
Wq sent through last night to Mr* Cole detailed figures on our Inventory write-off due to the metal markets on Octo ber 31st.
I am giving you below an analysis of these losses, from which it is interesting to note that the write-off amounts to &% of the value of the inventory, and illustrates again the tremendous effect upon our operations of market movements*
TONS
VALUE URITE-OFF
Raw Materials In Process
Warehouse Stock Consignment Stock
Finished Stock
1708 464 192 190
1341
$101,151.27 39,827*40 19,887.15 17,391.75
113.727.49
$5,290.27 2,612*28 3,524.81 1,319*19
5.534.05
3895 $291,985.06 $18,280*60
Ink Remover In Transit Storeroom
49.41 36,817*24
4.654.94
22*81
$335,054.10 $18,303*41
Our inventory was taken at the Ootober 31st market, which. In the oase of lead, was 4^ New York* Lead la now 3*85^ New York, and weak, so if we were to take an Inventory today on the same stocks, we would have an additional write-off of about $10,000.00.
It would appear, therefore, that our real and actual loss for the fisoal year 1931 was approximately $83,000*00. Of this, we must bear in mind that our inventory write-off of $18,000*00 is not an actual loss, but a paper loss until sales are made on
the current markets. In other words, there is a possibility of wiping out this $18,000.00 in the event markets get back to the equivalent of 4^ New York for Lead before the inventory Is trans ferred to Accounts Receivable.
The substantial purchases of Pig Lead that we have made re
cently arc not involved in this inventory, because practically all of that which was shipped was dated after November 1st, and does not appear either on hand or in transit*
It is almost impossible m make predictions as to the outlook for 1932 except to say that regardless of the deliveries and of
the markets, the secondary metal business is always rsstrieted
GLD014560
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and In distress during those periods in the tousinoss. oyd irtidii yi ArJm j fUfivAw^fUtTXno aU.tJ.*av 1iVnWvlf. , TJkiUi V wUV4 Wl w*f W44 ***Q tHhUfWifWtAW O|fVS4riodfi a i the price of secondary me tala, residues and wastes are higher in proportion to the primary or virgin metals than they are-daring periods of high priced virgin metals*
,, -
This operates to continuously narrow the operating margin, . to restrict profits and the potentialities of profits*.
It has been the experience of the secondary lead business that profits are impossible at such times, and It becomes Impera tive, in operating a secondary metal business, to create and lay aside during the prosperous times a sufficient reserve to see the
business through the rainy days*.
Our problem is augmented by the fact that our business was acquired during the prosperous times at the prosperous prices*
I feel that we will not come into a period of rising metal
prices until the basic world-wide adjustments that are going to be necessary are in fact made and accomplished, and the stability re sulting therefrom actually realized* It appears to me that these re-adjustments are so Involved and so extensive in character and scope that we have little right to look for them in a hurry*
Very truly yours.
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6L0014561
GLD014561
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Th e Gl ih o e n Co mp a n y GENERAL ACCOUNTING DEPARTMENT
CLEVELAND, OHIO
DATE SHIPPED- 10-31-31
g ener al ac c o unt ing no .
l_Q4*2.t-4 LOCAL OITICE NO. 30
26633
Q. A. Dept,
d iv is io n P.. A*, iP.PPAg.
He serve for Corrmisslon & Bonusei
Local Administration:
Administrative Exp.
^f3,300.00 16,700.00
DESCRIPTION
OUR ORDER NO. YOUR ORDER NO. CUSTOMER'S ORDER NO.
ENTERED EXTENSION
TOTAL
Heserve for Commission & Bonuses
Durkee - Elston Ave* " - Portland
Adams & EL ting Co* Cleveland Merchants
* Admin*
c 10000 ,00-^ 1,800.00 1.500.00
. 1,000.00 5.700.00
20,000.00
To reduce excess amount in Heserve.
CLCiEC ; H;
ORIGINAL
GL0014562
GLD014562
Goodwill, Patents, Trade Marks, Reorganization and Development Expense, and Unamortized Portion of Bond Discount and Expense, .Etc.' ~f*_
October 31, 1931
ReorganizationExpense Parkee Famous Foods.Inc..Elston Ave, Chicago Glidden Co., Cleveland Papk$ Famous Foods,Inc., #19-Portland Durkee Famous Foods,Inc., Iron St., Chicago
Parkee Famous Foods,Inc..Berkeley Cpast Food Pistributors Ltd..Berkeley Metals Refining Co Euston Lead Co.
Goodwill A. WilhelmCo. Adams & Siting Co. Forest City Pt. & Varnish
Glidden Co..Minneapolis Chemical & Pigment Co.,Collinsville
Euston Lead Co. Glidden Co.,Atlanta Glidden Co.,Beaumont
Glidden Co..Dallas Glidden Co..Evansville Durkee Famous Foods, Inc. ,ELrahurst{ Dunham) Pipkee Famous Foods,Inc..Elmhurst Metals Refining Co. Wisconsin Food Products Ohio Co..Norwalk WisconsinFood Products Co..Jefferson Durkee FamousFoods,Inc.,Iron St.,Chicago Purkee Famous Foods,Inc., #20 - Portland Purkee FamousFoods, Inc., #19 Portland Parkee Famous Foods,Inc. .Berkeley
239,071.51 81.383,39
Patents & Trade Marks The GliddenCompany, Cleveland Right to Manufacture and. Sell Erushing Lacq, Easton Lead Co.
WisconsinFood Products Co., Jefferson Wisconsin Food Products Ohio Co.,Norwalk
Chemical & Pigment Co., St. Helena Glidden Co. of California
Ripolin Rights The Glidden Co., Cleveland
Bond Discount & Expense Chemical. & Pigment Co., Collinsville
Note Discount & Expense The GliddenCo., Cleveland
5,732.59 124,320.3L
112,594.34 252,615.75
255.00 20.00
46.75 84.25255.00
963.92
366,835.01
256.900.00 51.000.00 1.00
5,000.00 7,508.14
93,258.51 5,000.00 5,000.00 5,000.00
48,882.82
320,454.90 500,000.00 378,441.15 378,441.15 346,033.52
45.000.00 11.830.00 26.342.81
2484,094.00
10,000.00 129,420.63
1.00 1.00 143.07
150.00
139,715.70
61,417.61 3052,062.32
130,052.90
GLD014 56 3
GLD014563
*
THE GLIDDKN COUPAHT CHANGES Ilf TINANCIAL POSITION LOSING THE FISCAL TSAR
ENDED OCTOBER 31, 1931
yrent Assets October 31, 1930
Trent Liabilities
s
MET
Trent Assets October 31, 1931
rrent Liabilites
"
NET
Decrease in Net Current Assets
14,587,384.08 1.739.353.75
13,858,030.31
12,637,043.81 856.059.03 11.780.984.78
t Profit Hiring Period serre for Depreciation pletion - Ore Lands and Leases
ferred Charges TOTAL
201,380.34
606,776.21 22,864.23
118.265.10
949.285.87 2,026,331.40
videndt Paid - Glidden Prior Preference
... videnda Paid - Metals Refining Preferred
ant Additions
idden - Prior Preference purehaied
. Common Stook
*
?*
b^jL Gold Bonds
"
emical & Figment Co. 6> Bonds *
berty Bonds- deposited State of Pennsylvania
*h Surrender Talue of Life Insurance
vance to California Zinc Co.
OVISICfflf TO REDOCS ASSETS IN CANADA TO OCT. 31 EXCHANGE
tSCEL, NOTES AND ACCOJNTS
i'
TOTAL
506,138.50 29,130.00
303,109.66 397,838.65 313,965.96 379,037.60
35.000.00 15.000.00 38,468.35 43,934.91 53,989.57
3,026.331.40
GL0014564
GLD014564
Accrued Commissions & Bonuses October 31, 1931
Cleveland Victory
Cleveland Herclient a A. T?llhelra
Adams ft Kitin'; Co.
American Paint Hones
Campbell Pt. ft Far. Co.
Minneapolis
Forest City Pt. ft Varn.
Chom. ft Figment Co., St. Helena
Glidden Co. .Limited
(
Dunce Famous Foods -- Elston Ave. GliddenCo., California
Glidden Co, Massachusetts GliddenCo.,Long Island City
Chicago Industrial
Durkce Famous Foods,Portland Easton Lead Co.
Administrative - Glidden Co.,Cleveland
Administrative - Pace Makers
Administrative - Durtree Famous Foods
Chemical ft Pigment Co., Oakland, Calif.
Chemical ft Pigment Co., Collinsville
Hidden Stores Co*
m.
100.00
1,400.00 573.87
cn.
1,000.00 1,000.00
1.500.00 500.00 500.00 700.00 126.16
2.800.00
2.625.00 200.00 500.00 500.00 503.29
1.800.00
,6,274.97
1 000.00
10,022.37 1,000.00 1,500.00 1,802.24
2,073.87 CREDIT BALANCE
35,854.03 33,780.16
GL DO 14 565
GLD014565
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SZ'ATJiRATlV?, iirPUI OF
iz*jm.
I. Oliver. O , Cif-el-r-d
f?i x hetln Co , ^ne & Siting Co
er i can Paint \1o rVa rr.tell Paint & Varni sh Co, ; Gii.v.'er. Co^Mlnr. eaoolii 5tan Paint ft Varnish Co* ? Gliddcn Co :,Ltd, s Giidden Co* of California
TOTAL PA1ST AND VARNISH DIVISIONS
-g r o s s __________________
Month
Year to Dst*
NET
Si59192o? (21,001,76}
U,,570,58 3-621.16 (13,^3>S2)
(12.522 Jo? (213,01) (22j5, l1'}
1,822,53
("591,43) (18922..d 5) (5.,691,46) (6J0Q,05) (2,564,42)
(1,391.97)
IS .3$ (384,13)
US*f 297=81? <lSL 662*00)
$2c 305,;6J
r,451,44 (fc;849S<,20>
(39,033.7s)16,865,36
9=533.53 S ,064,08
(930=6s)
17,324,59 1M53;S9 (37.612,73) (7,7^5.04)
3,568.43
4,172,65 (lp3lloX4) (16.. 039,05)
052,297.81) (i40s000=00)
92,000,00 50*000,00 (83,,455,20) (30,000,00) : 6?ooo,oo
8*000=00
179OOOo OO 10tCC0,C0
<37*612=78)
3ooo=co
(l,.811,14) HLS3SL252
t *C-- (21*662,C> , 34SO7= 47,451.4c
0- =(9,.033,75
865,36 3= 533=5l :
64,c.(550,6. 324,, 55
1.153 'tt
(7=725=01 568=43
4,172.6=
^' - 0--_
(137pOSS 75> (703,073.35)
(139.219.93) (126,033,05)
20131 -1H 22,565-20
Cr.iiu-.it3X; COj v Cl % v'tliiX;(i A, filhelE Co, Adc-niE ft Ei; in^- Co , N-jtiar, Paint ft Varnieh Co,
REPORT CP INVENTORY INCREMENTS CAPITALIZED TWELVE MONTHS ENDED* OCTOBER 31,1411
MONTE
YEAR TO DATE
i 3c300,CO
46,700,00
` C" 52*500,00
zfr
2c4C0,00 2.SCO,00
29*500,00 34,800 00
1s
400,00
4oc,oo
80ICO,00 14*200,GO
zb
700,00
SOO-vO
9*200,00 18-900,00
60800,00 4-000,00
93,500=00 120 400,00
GL DO 1A 566
r.
GLD014566