Document 85Zy2bvpgk1kN8b5g1MyVNQ0K

27/>fl MOODY'S MANUAL OF INVESTMENTS 194] 1940 Analyaia of Operation, %% S:\lev .................-------------- ------- ---------Lost.-. A. (ipcratintf expcnpes.................I .srliinc. central & admin, expenses .-I Depreciation ...... ........................... .......... other operating exponKCS ---------------Operating profit ---------------------------------Ollier Income...........................-............... Total income----------------------------------- Debt interest, amort. & expense Other deductions .............................. -- Post-wnr ndtuslmnnt reserve. Net income hcforc income taxes, etc. Income taxes A surtax -------------------Net income before depletion 100.00 71.18 4.29 24 K2 O.fii li.YU'A 0.G7 f)48 10.51 13.57 100.00 rao.tfn 1 4.22 4.94 .1)9 21.14 0X9 21.83 0.95 0.40 20.48 4.72 15.76 TiDepreciatton includes depletion figure from surplus account. ,T Receivables Include metals sold under firm contract. 1939 r. 100.00 70.75 4.20 5.41 08 19.56 .97 20.53 1.08 .43 19.02 2.76 16.2G X938 % 100.00 72.50 4.74 5.74 .78 16.26 1.32 17.49 1.23 .74 15.47 1.64 13.83 1937 % 100.00 72.58 3.HO 4.83 1.13 17.85 .84 18.69 48 .31 17.89 2.57 15.32 1938 % 100.00 7C.02 4.13 3.53 .40 19.92 1.21 21.13 .63 20.44 289 17.55 1935 % 100.00 ?7 47 4.32 5-21 .75 12.24 1.64 13.88 1.23 .... . 12.85 *.26 11.39 FUNDED DEBT 1. Phelps Dodge Carp, convertible debenture JP,, U52: Rating--Boa AUTHORIZED--S:!0.2Hj.00n: Issued. $20,285.00: outstanding. Dec. .11. 1941. SlS.*ll.Mn; re tired, $4,952,100: converted. Sl.onn. 5DATED--June IS. 193$. MATURITY--June 15. I'JSZ. INTEREST--June A December IS at J. P Morgan & Co., Inc., New York. Principal and Interest payable in lawful money of the United States. calendar year provided, however, that this shall n t exceed 51.200.000 in any year and ll-.nt such maximum shall also be reduced by the percentage that the original prin cipal amount shall have been reduced by con version or by redemption at the option of the company. Sinking fund agent is to apply rash to redemption of bonds on next suereeding June 15tli or December 15th. If alnhu:i fund monies amount to at least $25,000. Debentures acquired by the sinking fund ere to be cancelled. J. P. Morgan Sc Co., Inc., New York, Is the sinking fund agent. SECURITY--A gencrol obligation not secured hv lien. If upon merger or sale of substantially LEGAL--For trust funds In New Jersey. LISTED--New York Stock Exchange. OFFERED--To stockholders of record June 7. 1937. at loo on the basis of $4 principal amount for each share held, but subscription rights were exercisable only'In amounted 100 and multiples thereof. Rights, expired unc 28, 19.17. Stockholders subscribed to $19,909,300 and the $318,700 balance of the is. ue was taken up by an underwriting syn dicate headed by Morgan Stanley tc Co., Inc., Now York. PRICE RANGE--1941 1940 1039 3<s. 1952 .. 108'A-105 lUTn-lOOti 115Y.-1081& TRUSTEE--Central Hanover Bank tc Tniit Co., New York. REGISTRAR--J. P. Morgan Sc Co., Inc., New York. DENOMINATION--Coupon $100. $500 and Sl.onti. rcgfsterable as to principal; fully regis tered $1,000. 55.0110. sin.000 and authorized multiples of $10,000. Coupon bonds and fully registered Ponds in the sevcrol denominations are interchangeable. CONVERTIBLE--On or before June 1$. 195$ all property, any property would become aubicct to a new mortgage, company will se cure debentures by lien on such property prior to merger or sale. CREATION OF ADDITIONAL DEBT--Inden ture does not limit the amount ot other se curities which may be Issued but If com pany places any lien upon onsets. It agrees to secure the debentures equally, except that this does not apply to purchase money mort gages. liens and renewals thereof, or to loans in anv amount for not more than one year CAPITAL STOCK 1. Phelps Dedga Corp. capital stack; par $21: AUTHORIZED--41.000.000 shares (Increased from 500,000 shares to 2,000,000 shares In Feb., 1929 when stock waa aplit; to-3.000.000 shares Sept. 22, 1930 and to present figure Sept. 21. 1931); Issued.5.427.761 shores; in treasury, 356.501 snares; outstanding; Dec. 31. 1041, 5.071.280 shares; par $25 (changed from $100-Feb. 25, 1929; 4 525 shares issued for each $100 ahare). or date of prior redemption at the option of and loans not In excess of $3,000,000 for more bolder into capital stock at the rate of 1 share than otic year recured by pledge nf metals, or for each $50 principal amount ef bonds. Con to deposits with any government agency In Dividend Record (In $) (Phelpt Dodgo 8c Co.. Ine. $100 par) version price subject to adjustment upon cnnncctl-jn with general conduct of the busi 1989-11 12.00 1012__ 15.00 1913__ 16.50 issuance of additional shares, subdivision or ness. Except for ourchnse money mortgages, 14 00 1915__ 20 00 1916... 32.50 combination of shares, stock dividend, etc. company will not permit any subsidiary, as C.00 1 Tih*1 oca Continuity of conversion, provided for in event of consolidation or merger. Fractional shares will ttnl he issued but will be settled in cash, fnterc. t payable to conversion dale. Debentures converted will be surrendered to the Trustee for cancellation. J. P. Morgan & Co., Inc., Now York, is the conversion agent. defined, to place any lien on Its assets unless the obligations secured thereby are acquired and held by company or another subsidiary. Company will not guarantee any obligations, except ror obligations of subsidiaries Issued m the ordinary course of business for not more than one year and not in excess of $1,- (Present company $100 par) 1917... 26.00 1:120... 10.00 1920... 5.00 [Q1929... 5.00 1918... 22.00 1921... 5.50 1927... 0.00 1919... 1923-25 1928__ (Present (lock after 4 for 1 split) 15.50 4.00 7.00 CALLABLE--As a whole or in pnrt at any 50(1.000. 1929... 1.50 1930... 3.00 1931... 1.25 lime on 4u days' notice at 105 to June 15, RIGHTS UPON DEFAULT--Following an 1932-33 Nil 1934... o.n 1935__ 0.50 1:142, incl.. thereafter at 103 lo June 15, 1946. incl.. thereafter at 101 to June 15, 1949. incl.. event of default (SO day period of grace pro vided on interest payments) holders of 25% 1836... i.: 1937... 1.60 193J.,, 1.00 i1I9M39V_._.. 1l.O.5V0 119M4V0--4U1 11..590V 0a)t1942__ 0.80 and thercaiter at 100. Debentures redeemed shall be cancelled. Debentures may be purcliorcd or culled for the sinking fund (which sec). SINKING FUND--Company will pay to sink ing fund agent on or before October 20th, iii.13-41, incl . a sum of $400,000 and on or be fore October 20th. 1942-51. incl., a sum of of outstanding debentures can cause the Trustee to declare principal immediately due and payable and to proceed with enforcement of landholders' rights. INDENTURE MODIFICATION--May be made hv the company and Trustee with the con sent of holders of 75% of principal amount of debentures outstanding except as to oxten- iRPatd prior to stock split.. lEMar. 10 and June 10. 40 cents. Dividends payable quarterly March 8th, ate., to stock of record about February 23rd, etc. PREEMPTIVE RIGHTS--Such as may exist under the common law of New York. LISTED--New York Stock Exchange; unlisted SKOn.OGtl. provided, however, that any pay ment due will be reduced by the percentage that the original principal amount of deben tures has been reduced by conversion or call for redemption at the option of the company and provided further that the company may deliver bonds- at th.ir purchase price (but not m excess nf prevailing redemption pried instead of rash Also as additional sinking fund (onipnnv will nay on or before each -.inn of maturity, reduction In interest rate or modification of terms of payment of prin cipal or interest. PIinPOSE--To provide funds for payment In part of cost of an expansion program including ni enfng ami equipping of mine at Morenct. Arimna. enlarging of plant and operating facilities at AJa. Arizona, and other Improve ments. trading on San Francisco and Amsterdam Stock Exchanges. TRANSFER AGENT--Central Hanover Bank St Trust Co., New York. KEGtSTRAR--City Bank. Farmers Trust Co., New York. PRICE RANGE 1941 1940 1039 Stock............. . 35%-23% 4911-2514 47(i-28',i April -Hith. t'1.19-51. incl.. a sum equal to 201. TAX STATUS--No provision for assumption Subscription Rights: See offering of con i't consol:.laird net income for the previous or refund of federal or state taxes. vertible debenture 315s. 1952, above. CAPITAL 8TRUOTURB CAPITAL STOCK Issue I. Common.................... PITTSBURGH PLATE GLASS COMPANY Per Value $25 Amount Outstanding 2.198.43$ ah*. Earned per Sh. 1041 1940 $6*2 $6.30 Dlvs-per Sh. 1941 1940 $5.00 $5 00 Call Price Price Range 1941 19.12-41 96U-15 M7',fr-12'/ HISTORY ef PMton-Pitcairn Co. Columbia Chemical production of sheet ing window glass be* lR88F&Sia<sd Ir PjSKiylviSU Xili. 3J. IBM tina rcfncorDaratou, lit .famuyivan a not. J. wj* flrrt ercftnlsed fn mi fir /ami m cnim, thon ChflrmAti o t thr BoArd PI rovloF* of O!Uaturgxh O 1m Co. IIb (till In 1(101 ilMaunt Vanish, fltjkpsuak iiulon or -no omni ct ensmtan wTnaow r?(AU Co. AMJUOnol $ht and Klgllfl upon merger W||. t|>f flUtOn-fitfDittl Sill luiM pinnt it n.npiifiPMR. o ujnn br,,.WJo,, /ncioric* wort built In 1014 at ClarkgDur*, W. nn<t Columbia Chomloai Co., both iriuorpti- W LIUO. Va. t'alcd In Pennsylvania in Nov.. 1920. Pot tietails of 8tock issued in 1920 see Capital Slock -- Issued. The Pnlton-Pltcairn Co. woe o hold ing company owning all of the outstanding stocks of Mi Pntton Point Co. of Milwaukee, in which Pittsburgh note Glass purchased a 49'<r stock Interest In 1900 and subsequently ncqulrt'd n majority (2) Rennous, Klelnle & Co, brush manufacturers of Baltimore, in which Pittsburgh Plate Glass Acquired n 4SM* stock interest n 1900 and subsequently ac quired n majority f3) Pitcairn Varnish Co., and (4) Corona Chemical Co. In the Jailer two concerns. Pittsburgh Plate Glass acquired Upon formation nf the company In 2833 (he first commercial plate claw factory in the United States wns constructed at Creighton. Pa. m iw5 additional plate gloss factories were jMNjujred. including those of Diamond Plate r.hiss Co., with factories at Kokomo ond Elwood, lni. Seven branch warehouses were inaugurated In 1896 and shortly thereafter the business wns expanded to include the distribution of nil kinds of sheet And winder/' glass purchased from others. In 1922 dissolved Red Wing Linseed Oil Co. and acquired its linseed oil and other prop erties. At Creiahlon. Pa. lata in 1024 completed the first unit of a new polished plate glass plant operating by n continuous process amt In 1926 completed the second unlt.. In May, 2924 completed construction of a Portland cement plant at Fultonham, O., with it daily capacity of 2,500 barrels. In May, 1977 plant capacity was increased to 5.000 barrets dolly at a cost of about 91,500.000. j majority stock interest as a result of r.tuck dividends received. These subsidiaries owned in 1902 begun the production ot plate glass u( CnurccUes, Belgium. [Closed early In 1940, In early 1924 began the sale of nitrocellu lose lacquers. In tne snrne year increased the the entire capital stocks of Red Wing Lin nfler German invasion ox Belgium.) productive capacity, of its Portland, Ore. paint seed Oil Cn. ond several smaller sub-com- In 1907 began operation of a plate glass fac factories and acquired the factories ot Sun panics. At the time of merger, Pittsburgh tory at Ford CUv. Pa and in 1309 at Crystal set Paint Co. of Los Angeles. Tn 1927 com- Plate Gloss owned of the rouilal slock rily. Mu i'tatr.1 a four-ycAr expsn.Mon program at the MOODY'S MANUAL OF INVESTMENTS 2757 Milwaukee lacquer plaul. la 1929 begun opera Kingston Paint A Glass Co., Ine. PRINCIPAL PLANTS PROPERTIES tion of a lacquer plant at Newark, N.J. Nevius Paints, Inc. In trite liw? the company and a subsidiary Patton Paint Corp. (Inactive) , . . of E. 1. du Pont de Nemours each acquired a Pittsburgh Plate Glasi Co. of Michigan 50Vi. stock interest-In Pittsburgh Safety Class Pittsburgh Plate Glass Co. (Tcnn.) For detail, on property cqulttton, con struction, etc., see History. Plate class manufacturing plants t( lo Co. <naine subsequently changed to Ouplutc Ctirp.t, which constructed a $1,000,000 plant at Creighton. Pa. for the manufacture of safety glass, using the company's Plate glass and du Font's plastic interlayer. In 1931 ac Poughkeepsie Point A Glass Co., Inc. (for merly Thomas V. Lackoye Paint A Class Co.) The Rainey Stoma, Ine. The Regal Mirror Co. cated at Creighton and'rpriT.Clty. Pa.: Crys tal City, Mo., and Coureelles, Belgium (cloyed early in 1940. after German invasion of Bel gium). Plate HioM -from Uie Crelshton and Crystal City plant, b lurt in the fabrioation quired full control of Duplate Corp. Sewlckley Hardware 8 Paint Co. of the company', safety flasa. Window BlOM Zn June. 1928 acquired Dlttler Color Co. of Societe Anonyme dcs Glncei do Courceuei factories are located al. Henryetta. Okla.. Detroit, manufacturers of automobile finishes. (Belgium) Mount Vernon, O.. and Clark,bur*, W. Va. In July, J929 completed the rebuilding and Suiuot Paint Corp. (Inactive) Paints are manufactured at Milwaukee, modernization of its Ford City, Pa. plate gloss The Thresher Vurnish Co. W>. Detroit, Mich.; Newark. N. J.: Portland. plant at a cost of $5,500,000 and in Mar., 1930 Triplex Corp. Ore Dayton, O., Houston, Texas, and to, completed o similar program at the Crystal Unfontown Paint A Glass Co. Angeles. Cal. Varnishes arid lacauum are pro City, Mo. plate glass plant. These plants re Wesco Point St Glass Co., Inc. duced ot Milwaukee- Dayton. Detroit, Newark placed old ones at these locations. In June, 1031 completed a plant at Ford CJty to manu facture Carrara glass, heavy polished plate glass and spectacle nnd special classes. tn 1928-29 began production of sheet and window glass under a new process at Clarks* burg. W. Vo., and Mt Vernon. O. In 1929 begon operation ol a new sheet and window gloss plont at Henryetta. Okla. In 1934 Addi tions were made to all three window glass *>lIn*?929 began production of "Wallhide/* a new interior paint. ^ In 1931, jointly with American Cysnamld Co., formed Southern Alkali Corp. (see ap pended. statement) On which the company own* a 51% stock interest and American Cyanamld This company completed a As of Dec. 31, 1941. owned le.s than 100% of the voting control of the following sub sidiaries: Geneva Paint A Glass Co. (94.76%) Gurley-Comstock Carp. (53.125%) Waiter D. Henna Paint fit Wallpaper Co. Queen City Paint fit Glass Co. (90%) Southern Condensate Corp. <5i%) ,, _ E. J. White Paint fit Glass Co.. Inc. <87.5%) In addition, had voting control of Joseph J. Bail, Inc. (inactive), by reason of holding oil its preferred stock. This preferred assumed voting control upon dividend default. . Owns 50% of voting control of Pittsburgh Cuming Corp. (see History). Houston nnd Los Ankclos; Linseed oil mills are operated at Red Wins, Minn., and Newark. N. J. Paint and other brushes ore produced at Baltimore, Md,, and Keene, N. H. A store front metal ractory is.located atKokomo, Ind. Alkalis and other chemicals are produced at Barberton, O. and through a subsidiary. Southern Alkali Corp., at Corpus Chrtstl, Tex. Other activities include o cement plant at Zanesville, O. U.OOb.OOO hblS. yearly capacityl. the manufacture r dry! colors, insecticide*, fungicides and seed germ disinfectants at Mil waukee; coal mlnas at. Creighton. -Pa.; aapd mines at Crystal City. MO.; limestone quarries at Fultonham, O., and gat properties and *,, line, at Ford City. Pa. In addition, 113 ware house, -md store* are. operated for tne dis 57,000.000 soda ash and caustic soda plant at Corous Christ), Tex. irt Oct., 1934. In Mar., 1938 Southern Alkali completed construction of a liquid chlorine plant at this location. In Aug.. 1936 began operation of a new li quid chlorine plant at the Barberton, O.. fac tory of the Columbia Chemical Division and in Nov.. 1936 at this locution began operation f a bicarbonate of soda factory. In Oct., 1937 capacity of the liquid chlorine plant at Barberton was doubled. BUSINESS * PRODUCTS Principal industries served are the automo bile. which consumes the company's safety glass and finishes, and the building, which uses paints, varnishes, brushes, window glass, lualc glass and mirrors. Ranks as one of the two leading producers of plate glass (capacity 100.0003)00 sq. ft. veorly), which Is used principally by thc auto mobile Industry in the form of safety glass which comprises two sheets of plate-glass tribution of glass; paint-etc.; R.r<m labor atories.ara located aa foliowa: Glau at Creigh ton, paints, atMilwaukee. Newark and Detroit chemicals at Barberton. Pittsburgh Corning Corp.. a so% owned com pany, has a glass block producing plant at Port Allegany. Pa. Status ef Belgian Praperty awg. Bualaetsi Concerning theconditionof the Belgian sub sidiary's property, (he following statement won made in (he annual report for 1941: In 1936 began fabricating safety glass at pressed together with a plastic Interlayer. "The company's foreign, plute glass plant at Crystal City, Mo. ,, In 1937 constructed a resin plant at Mil waukee and acquired the factory and busi ness of Tin* Thresher Varnish Co. at Day- ton O. In Mar.. 1937. Jointly with Corning Glass Plate glass is also used for store fronts, mir rors. etc. Ranks as one of the leodlng pro ducers of sheet or window glass, sold under the trade name Pennvernon. Chief raw ma terials of this division are soda ash. sand, limestone and vinyl ploslie. Courcclles. Belgium, -wnlcn hns been carried on the company's books bL?1, Is sull-in enemyoccupied territory. Little ran be learned about actual conditions ul this plant but meager re; ports indicalc that Its organization- Is Intact. Works fsec general index) formed Pittsburgh Corning Corn, to manufacture glass building Ranks as one of tne leading producers of paint, varnish, lacquer and brushes, which MANAGEMENT blocks, gin as tile. etc., at a newly-constructed are sold in large quantities to automobile OMicars plant nt Port Allegany. Pa. Kach company companies and other industrial consumers a owns S0% of the $909,000 outstanding capita! well as for general trade purposes in paint* stock of this concern. Jng of new houses ond in home rehabilitation. In 1938 excrclsod an option to purchase 98.* Chief raw materials of this division are Un 000 shares of American Cyanamld Co. class seed oil and other solvents, colors,- metallic B stock at $20 per share under an option is pigments, etc. sued In 1931. ._ _ On June 10. 1938 dissolved Duplate Corp.. a wholly - owned subsidiary, manufacturing safety glass, and acquired its assets. Ranks as one of the leading producers of uuio ash, which is used in the manufacture of glass, soap, oil, textiles, drugs, pulp and paper, and in water softening, purification tOCIarence M. Brown. Chairman ftlH. S. Wheirett. Vice-Chairman 01R. L. ClBusB.Breiidant B. Higgins. JExec. Vice-President itlB. T. Asplundh, Visa President J. H. Heroy. Vice-President F. W. Tudaon, Vice-President EE. D. GrlBln, Vice-President j! A. Wilson-, Mgr. Glass Mfg. F: W. Currier, Treasurer processes and cleaning operations, and of H. B. Brown; Secretary SUBSIDIARIES caustic soda, which la used in. the manufac S. M. Campbell. Comptroller Parent functions chiefly as an operating company, the principal subsidiaries being Columbia Development Corp.. which holds securities find, those of Southern Alkali Corn.), nnn-current receivables, etc.: DUrier Color Co., which operates the plant at Detroit: and the Belgian subsidiary, which operate* the plate glass plant tn that country. As of Dec. 31, HWl, owned lOOVl of the voting control of the following: Allied Paint fit Glass Co. American Glasr, Corp. (Inactive) Altoono Glass & Paint Co.. Inc. Canonsburg Pnint A Glass Co Charleroi fie Belle Vernon R.R. Co. (Inactive) Crystal CJty Mining Co. (Inactive) Columbia Development Corn. ture of soap, chemicals, rayon, lye. textiles, nnd in petroleum refining and rubber re claiming. Other products of the chemical di vision include (1) liquid chlorine, used largely tn the production of chemicals, textiles and pulp, and in water purification (2) modified bodas (3) special nlkalls (4) calcium cblorlde 15) whiting (6) Hcnnig's purifier, used for desulphurizing pig and cast iron (7) salt for industrial uses <8) Col-Rec. used for coal ueatment. and (9) Calcena. used for rubber compounding. Principal raw materials of this division are salt and limestone. Relatively minor divisions of the business comprise the manufacture of Portland ce ment. dry colors. Insecticides, fungicides and seed grain disinfectants. Products are dis Southern Alkali Corp. (51%), See appended tributed through ill warehouses and stores Leland Hazard, General Counsel fflMember of Executive Committee. Directors Clarence M. Brown, Chairman, Philadelphia E. T. Asplundh, Barberton, O. R. L. Clause. Pittsburgh E. D. Griffin, Pittsburgh .............. ...________ _____ burgh Harold F. Pitcairn. Philadelphia Raymond Pitcairn. Philadelphia R. B. Tucker. Pittsburgh H. S. Wheirett. Pittsburgh General Counsel: Leland Hazard. statement. .^ _ Southern Minerals Corp. (100%) Southern Pipeline Corp. (100%) Dltzlcr Color Co. -- Ivoroid Mixed Pnint Co. fftiffrtive) II W John-, Pninl Mfg < '. (Inactive) located throughout the country. Although company is primarily a producer if ctvUtnn goods, the production of direct and indirect war materials has. since the out break of the war. become a substantial por tion of Us business. Annual Meeting: First Wednesday In April. Number sf Stockholders: Dec. 11. 1941.7.371. Mo. ef ImpItytEt: Average for 1941.18,878, I Office: Grant Bid*.. Pittsburgh. INCOME ACCOUNTS COMPARATIVE CONSOLIDATED INCOME ACCOUNT. YEARS ENDED DEC. 31 (Taken from reports tn Securities and Exchange Commlislon) 1940 1907 17: Net sales............ ........................... ... -- fl'Cost of good* sold.-----------------------Other manufacturing costs---------------q;Selling, general A admin, expenses $i:`h cn4.flil ai.24n.H45 i7J90.:ns $97,940.(591 48.932.78S 14.427.406 $83,189,821 45.3Ce.94ft 9.927,435 $84,355,034 36,404.244 10,020,006 S53J15J07 4H433.452 9.742.449 15.307.672 Operating profit.............................. Interest and dividends received-------Royalties received .-------------------- -----proceeds, sale of license rights ......... .. lOther Income --............. 28.778 Ltt:i I.296.3M HR.2C2 ":!o:.,ni7 18,333.29! 1,037.22:: 118.535 'mV.091 12,787.692 822.293 146.701 756.588 4.903384 770.923 326.460 1.SR2A0O 608^46 20.131.735 856^04 776.381 600,006 Gross income ................................ (TIncome deductions .. --........--. 3n.479.8:i2 20.323.141) 687.729 14,513274 1.227.539 8.192.015 159.445 22,644327 74J8S Balance ............................................... Federal excess profits tax .................. Income taxes. Federal and state.......... Surtax on undistributed profits ;jiu72.:7m 7.2 Y.ntsf) 7.M.W Oi-'tl 19.635.411 700.000 5.141.474 13,235.734 2.519J23 8A32J70 1^43,683 22^69.042 3,793,960 489,013 Net income to surplus...:.... M.'<H9.17K 13.793.M7 10,766,412 6.48SA07 19.287,969 INI $86,110*486 44.699.076 9.670*414 14,896,702 198ft $68*526*174 3SM2MJ97 8.036.604 12.665,631 16A43.6S3 650.011 604236 I2.79SJSI 586,955 544233 712.15G 474.900 18310.116 s I4,40t^>70 39.528 684309 18,770,588 13.716AC1 3.195.737 263.027 2JU.122 15,321,934 11,399.739 l I 2738 MOODY'S MANUAL OF INVESTMENTS INOOMK ACCOUNT8 fconl'dl tiEarned surplus boginning of year.. jjOlher surplus creatis---------------------Dividends ........... ...........-............---~IKOther surplus charge......................... 1941 51.030.658 to.hW.m 1940 4K.420.987 10409.174 249.092 1939 47J13.308 38,170 8.672.811 $69 1938 "HUB 3,770572 1937 41540.883 ls.osYm 1,008528 1936 37.198538 436538 11.783.131 33,124 1236 33.098.843 177,191 9.4265)10 48504 Earned surplus, end of year----------- - $51,707,136 $51,056,658 348.M2.809 847.313507 844.408588 $41,140,669 337.108536 SUPPLEMENTARY P. St L. DATA DJDepreeIntlon. depletion St amort.. IliMaintenance and repairs................ Taxes, other than Income........... Renta ............................... Royalties _________________________ Provision for bad debts (net)____ -- Losses from retirement of property $t 90C.fi 10 t 021.171 l.lld.lVJ 109.014 194.651 275.495 Not stated 94.640.60 3.306.0.16 2.431.167 610.290 166.669 208.006 Nat stated 84.427.430 3.599.361 2,368,451 475,149 115534 264.610 499:978 84,193517 3.466,080 2543,874 457.667 109,768 183588 82539.401 4530589 2412.060 403583 144561 168586 61243* 83592503 3.648534 1.403:780 368510, 123.106 88546 842583 1581500 aSS-: SOS: 197430 630.710 Parent company's net sales Parent company's net Income___ .... Equity in earnings of subs, consol..... Dividends from subs, consolidated... frEqulty in earnings of subs, not eons. Dividends from subs, not consolidated $nr,.028.062 U 417.062 l,Kb>,351 J.244.1221 l75.72rt 2k7.;W5 *88.637.378 13,063,369 1,686.187 1.042,752 686.933 158,060 376506,296 10,034,833 1,647.403 744.452 502,6(4 87526 868.468,638 6.030347 1586538 860524 89SJ03 884,702318 17511.686 3582.971 2591.914. 888561 631,780 877,886.003 14,776.698 2.024,847 1,474589 867581 201344 388571.410 11518579: 1.86147* 1.891544 4 46.4H: ' 8580 rC__r_o_s_s__s_a_l_e_s__l_e_s_s__d__is_c_o__u_n_t_s_,__r_e_t_u_r_n__s and allowances and includes following sales to !!KI3 includes 1500.000 provision for pensions and relief to be expended In future years. arS^nri^enaneerVSS?' unconsolidated subsidiaries: 1035.1220.075: 1036. See also note ft}, above. 234,981; 1937. *1,346,365: 1938. 91.154.SM; 1939. S13fi,5u0: 1037. 3212,25(1, 133X, SMI8.43I; 1030. 361.- !iiln 1036, 1031 and 1030 represents net adjust $1,499,473: 1940, $1,638,317; 1941, $l,9BVi247. Does 704: 1010. S25.ll.VJ; 1011. 328.674. ments of securities and investments; not Include amounts charged to reserve for (Jltncludes related portions of Items shown In 1041. consisted of adjustment to elimin contingencies as follows: -4033, *48.315; 1936, under "Supplementary P St L Data" below ate equity in undistributed surplus of sub 338270; 1937, $52,143; 1938, $29,390; 1939. $32,117; statement. sidiaries not consolidated. Also see note H). 4940 and 1941. none, HIncludes equity. In aggregate net earnInns of non-consolidnted subsidiaries: 1936, S207 0MI; 1037, 3686.351: 1938. S.195.103: 1939. 3502,614; 1310, 5427,883 11935 proportinn of losses of non-conKOlldaled subsidiaries of 346.489 arc included in "Income deductions".) As of Jan. 1, 1041, company adopted policy of taking up In 1930 comprised: Net adjustment of value of marketable securities and miscellaneous investments, 5233473: Wisconsin dividend priv ilege tax paid for stockholders, 313,720; total, 3349,092. In 1937, comprised: Adjustment of foreign 11)1940 and prior yean reflected in above accounts in other income or Income deduc tions. Bee note B). , . Q1940: After excluding *1.021,S2*urplua of foreign subsidiary previously, consolidated. income from subsidiaries only when received ns dividends, nod climlnalcd previously re corded equity in undistributed turnlus of such subsidiaries. Company's share of undistrib vestment*, $489,238; mUccllsnsous charges. $40,696; total. 92.063,829. surplus _______________ _______life operation* bf this subsidiary, were included tor only eleven months, to Nov. 90>air company's flsealyorr uted not profits of nnn-consnlidulcd subsid CDlncludlng amortisation but adudlni was changed.- Theresulttwere converted at iaries for 1011 was ?."KS.:in5, which amount was depreciation charged to reserve for contin* the .average or emi-monthly rataa ar * not included in income account. Also see gencies: 1935, $256,015; 1931. $3,890; 1937. 17.556; change' prevailing ^Juring the twelve months note !. 1938. $6,891; 1939. $4,081; 1940 and 1941. none. ended Nov; SO;ri930/ The difference artsing [4]In 1940 Included 5500,000 and in 1939. 31.- 1941 excludes $2,321, representing patents through conversion of the accounts-is .shown 000,000 provision for pensions and relief; In written down or written on. in this statement under Income deductions. BALANCE SHEETS COMPARATIVE CONSOLIDATED BALANCE SHEET, AS OF DEC. 81 (Taken from reports to Securities and Exchange Commission) ASSETS Cash ,------------------------------------------------HU. S. Government leeurltiee----------(pother marketable securities...---- ft: Notes A nccts. receiv. accrued, ate. ^Inventories ....---------.............. 1941 $11,289,770 S.83G.730 7.607.600 11.608.008 2S.4S3.00S 1940 $12,280,694 2.511472 11.356.Ml 9.689,079 21.539,920 1939 110,476,690 5,321.686 8,673,206 8,609,286 20,365.039 lgia 12423,917 614413 6412452 7474.797 19,742.72* 1117 91456,410 3,12648* 4440.727 *466404 23490.164 Total current msata....................... &S<'c. A advances to unconsol, subs.. ^.Invest, in foreign subs, not consol.. Miscellaneous investments ................ Non-current notes A accounts (net). ioL`v*: Dfprec., deph A omort. res... Less: Exiraord. obsoi. res...................... $61,797,173 $7,809,792 1 3.805,987 1,170.890 12).174.100 54.720,150 1.353.949 $37,384,056 $7,743,511 1 948.131 1.051.062 *53,465471 67,127610 1,114.251 742480 (46,671,107 *0442423 147542S 501,(76 *48.1(1400 90475490 1.03L457 539,779 1926 27.730464 104014a 4481.427 7,747,70* 16429.772 *47,151.112 1446*472 677:43* 576457 IMS (lo.m.w* 74H4M 24724H 74714*7 114974a: 1414134a a4a.o 672440 oa.ro Deferred charges ----------- ..... ....... 65,099.801 1 1.705.065 61,419,995 22 2.095.934 80,503.223 6.486 1.090429 62,350436 6.963 988477 *54(1.030 11,490 1,033443 80471,439 13,783 845.073 H4a.7H 154*6 723437 Total _____ _______________________ LIABILITIES Notes payable Accrued taxes........ .. Other payables and accruals...______ Total current IIsMIUm................. (TTCoUected on installment sales...... Deferred credits....................... Reserve for contingencies............ Insurance reserve --______ __________ Pension and rolief reserve---------------Reserve for mnint- A repairs, etc..... Minority Interest................................... Capital stock (par 825)---------------------51-Surplus ............................................ $141,388,710 $3,383,173 18.500 17.685.013 1.418.353 $22,505,037 $169,002 1XK.0-I1 4 911.365 2.208.691 1.930,079 3.297 34.960.951) 54.292.156 $129,642,713 $3,051,028 204.600 7.169.334 1.516.927 $11,941,888 $039,708 174.710 4.931.365 1.983.316 2.042.188 1.641.053 5.826 54.701.000 51.381.656 2124.150450 $2,992,189 121.113 3,853.089 1.425,941 38402.332 $909,113 173,155 4.031485 1.796.324 2.000,000 1.544.132 5.920 54,430.600 49,967,609 3118.147.136 $2487.441 149460 2.731404 1.265473 16.520.778 $1,114,177 122.123 5.003,107 1.574411 1.000,000 1.424,472 5452 53469.100 47413407 3118.133494 *3.488410 183400 5448455 1453.74* *9,471,625 31407419. 146406 4.611.443 1.998496 1400.000 1406422 5,670 53470425 M,406488 3114.438415 (3413499 221.717 44*6430 1420,494 I9.447.7W *1,152,702 410 4.687,413 2455.1W 1.000400 1439.418 0410 53461.075 4i.i40.ea 21M450.4U *3.431430 93400 1.071.110 3400472 1.764406 q,061.4W *054*7 51440 4.746.496 1.7M.6U 1400409 1434.736 (425 53453,225 37,193436 Total ........ .................... ..V............. Not current assets..... PROPERTY ACCT.--ANALYSIS Additions at cost-....________ _ Retirements or sales................ ^Depreciation and depiction............ DEPR.. DEPL. AMORT. RES -- ANALYSIS Other additions.................... .................. SMl.1Rfl.710 $19,292,136 S8.011.jt1 i.87fi.u::4 f2.705,(120 or $120,642,713 $45,442,168 $7,648,180 1.990.764 4.840.643 $124,150,550 $45.073439 $3,191,739 518.043 4.429,009 $4 906.010 51.151.G7i 1,308.170 219 $118,147,136 340.150429 $3,633,490 469474 4.196,716 511S.123.U9I 633,719475 33.499.151 699,735 3415.323 cr 563.B95 1114.433^75 *37,710472 26434,1U 1.282,571 3493,691 1109.650.4a 635451409 37739,040 1797.7a 3.815.5a 1044a Y Lower of cost or market. Market value, Dee, :u. iMi. $r au.Gli (>;Lnwcr of cost or market. Market value Dec 11. I'.MI. S7.R2'J.UK1. * After re.-.erve& (Hill. SI. 134.6-12). d'At less than cost or market. At Dec. 31. 19-11. roiiM-stcd of: Finished goods. SJM.OIJ.823; work in proross, S2.0jU.21I'.); rim* niAtorlals. $6,772,353; supphos Uncltitling repair parts), S:>.lilG.>3(): tnUit. S2Mrf>.005. Consist* of: Sccurilies of subsidiaries not run: oliilatcd. $.1,381 955: dJie from subsidi aries not consolidator! (idler Sio.uott reserve). S4.424.8.17; mini. $7,809,792, Used in business: l.nnd -......... ... moldings . __ Mach. & equip.. Construction__ Unused facilities . Other property__ Property SG.285.Gl 1 33.701.057 7(1.4!k*I.534 5.878.084 051,857 3.811,056 Reserves $1,452,006 13.741.405 37,001339 .............. 514.546 2.000,633 Total ............. $121,174,100 $54,720,350 liMO and prior yonrs property carried at dcpreciaiert cost. Annuat provisions for de preciation nnd depletion were credited to asset accounts (see changes shown below bal ance sheet). See.note <cj below. GStnciudes subscription* under officers end employees' stock purchase plan: 1935. 1518.271; ] 936, $982,192; 1937, $1,251,128: 1938. $974,192; 1939, $787,475; 1940. $517,075; 1941. $257,125. includes capital surplus: 1935, $3,003: 1936, $2,862; 1937, written off; 1938. nil: 1039 tpnld-tn). $525,000: 1040 and 1941 (paid-in), $525,000. Amounts invested In treasury stock: 1935, $754,275; 13.16. $752,025; 2037, $742,275; 2938. $520.000: 1030, $390,000; 1940, $260,000: 1941. $130,000. fivJ041: Represents adjustments to restate property accounts at appraised value at Dec. MOODY'S MANUAL OF INVESTMENTS 2759 :n. I03G. plus subsequent additions at cost: 5.43%: not in operation: 0 86*1' ma- of Nov; 30th. in 192$ set curxint amts of credits to depreciation reserve, S5J.H51.fl71: net credit to reserve for extraordinory obsoles cence reserve. Sl.H5H.94y. and prior years: Credited to asset account*. Includes amounts charged lo contincency reserve note 'i\ to consolidated income account). 14 At net carrying value of investment In and advances to and from subsidiary (see General Note ib below I. Depreciation Policy: Provision for depre ciation of depreciable assets was made at various annual rates, which arc based on the estimated useful lives of the respective Items. Computed composite annual depreciation rates for 1941. based on provisions for year and balances in adjusted property accounts at beginning of year, plus one-half of net additions for year, follow: Used in business: Buildings. n.UI: machinery and equipment, ceslulidilicnglanladndandanddwdewllienlglin. glosr uenrrtmferloyceoensttdanc-t of sale), and investment property: buildings, 2Jir;; : machinery and equipment. 0.21%- Provision for depletion of salt, limestone, clav and coal deposits for 1941 was equivalent to cost ol such resources recovered during year, that cost being computed on oasis of ratio of resources recovered to total recov erable resources estimated by company s engineers. AiiwfE Ne9*a (a) Accounts certified by Haskins A Sells, lb) Above consolidated statement! include oapnllesrautboioosnnidus*iaarnrieees*diwrehcotseed bbyu**s?tihon*e?eJspsPagrpreotnolitcteiehnsrroouaugnghda its organization (excluddees* ^Suoutthheern Ajlxkajli cCoourpn.ts351o%l oonwenfeaodre).^igInn 1937. 1939 and 1939 ac subsidiary Included sa SxMrettwe wwe*MirL^eonnwve*rrtLeddt gffeenneerrallilyy*comn tthhee 2be3a5ts of dollar coat. surplus of this subsidiary was eliminated from consolidated earned surplus as of Dec. 31,1939, and net carrying valua of the invest ment and advances to and from this subsid iary is now stated .at 91. (c) Prior to 1941. it wa* general policy of company and subsidiaries to credit provision for depreciation, provided for on basis of cost of the property direct - to related jwoperty accounts. In 1941. company and subsidiaries completed major portion of analyses of their accounts so as to restate, propeaiy at cost, and to segregate amounts Of accrued depre ciation. FINANCIAL A OPEMTINO DATA Statistic*! Record Earned per share.......................... .......... Dividends per share........ .. Price range.................. Net assets per share..------- ---------------Number of shares ............ 1941 S6.82 SS.OO 96J4-55 $40.70 2.198,438 1940 56 30 5500 10V.vS* ,, .Iftfi 2.188,040 1939 M34 54.00 117-90 ?47.95 7.224 1935 93.01 51.75 115(9-55 (40.92 2.158,764 1937 Hit 40 2.142433 1936 S.15 .00 2.142.443 1935 5543 (3X0 2,142X53 Financial and Operating Ratio* Current assets-* curr. liabilities...... cash & securities to curr. assets___ % inventory to curr. asset*................... % net curr. asset* to net worth....... Capitalization: % common stock Sc surplus........ Salcs-inventory ..................................... Sales-? receivables .................................. % SAlea to net property............-............ % sales to total assets...................... % net income to total assets.............. % net income to net worth............ Analysis of Operations Net sales.................. Costs, good* Sc mfg.................... ......... ... Sell., gen. Sc adm. exp................ Operating profit------- ------------Proceeds, sale of license rights............ Other income----------- ...------------------Gross income ........................ Income deductions ................... Net income before income taxes, etcCop. stock Ac Income tax.................. Net income..................... ............... 2.75 40.02 41 19 35.96 . .. 100.00 5.03 il-JJ I9JJ3 00.53 10.G0 13.72 % 100.00 62.84 Lifi* 22.46 .............. 133 23.81 0.24 23.57 H.H6 11.71 4,81 45.58 37.54 42.76 100.00 4.55 AirW M}*4 7555 10.64 12.98 % 100,00 64.69 16.59 18.72 .... 2.03 20.75 0.70 20.05 5.98 14.09 837 45.77 32.13 4337 100.00 4.08 9.80 137.27 67.01 8.67 10X1 % 100.00 60.47 18.16 1647 Ym 17.45 1.48 15.97 3.03 12.94 7.16 42.11 42.30 3*44 lOO-Otir 3.20 8.65 103.20 54.47 5.40 141 % 100.00 72.14 2044 7.63 2.46 2.65 12.73 .25 13.45 3.40 1045 4.77 31.72 52X5 35.45 100.00 3X1 13.40 147X1 71X0 1S.U 1AM % 100.00 53.02 14.40 2147 2.60 24X7 .08 24.19 459 19.60 4X0 4952 35.05 59X2 100.00 5X1 11.11 142X7 75X3 13X9 M.M '% 100.00 03.14 1740 19.50 2X8 21X4 .05 21X0 4X0 17.79 447 47.61 39.43 39.61 100.00 4.18 945 11545 8240 10.40 1240 * 100.00 6244 18148 18.57 844 21.02 140 34* 16.83 CAPITAL STOCK 1. Pittsburgh Plata Class Co. stock; par $25; AUTHORIZED--2.000.000 shares: Issued. 2,21)5.1138 shares: outstanding. Dec. 31. 1341. 2.188.4::m shares, cxcl. m treasury. 5.200 shares: par S2."> (Changed from SlOO par Oct. 9. 1828. four S25 par snares Issued in exchange for each SlOO par share 1. Dividend Record (In (5100 par shares) 1S83-08 Nil 1899... 5.00 VJ'11092070-.17 . 7 00 13.00 1918... 1921... 10.00 8.00 ;.J92:J-28 1B.0O 1927... 13.00 1900-06 1R19... 1922... 1928__ i1S-5 par shares]1 4:1923. 0.50 1931... t 75 1934... 1.30 1929... 3.00 1932... 0.75 1935... 2.90 1930... 1933... 1936... 1937... 6 50 19.74... 1 75 1939... 1940-41 3.00 * 1912. ] 30 6.00 7.25 13.00 6.00 2.00 0.70 6.00 4.00 (tPlus 10% In stock Apr., 1017. QIPlus 20% In stock Dec.. 1920. i'PIus 30% In stock Jan., 1923. ( Pius 10% in stock Dec. 1, 1928. tTo July 2. Dividends payable quarterly Apr. 1. etc., to stock of record about Mar. 10, ate. PREEMPTIVE RIGHTS--As provided by the statutes of the Commonwealth of Pennsyl vania LISTED--Pittsburgh Stock Exchange: also traded In unlisted section of New York Curb Exchange. TRANSFER AGENTS --Peoples-Pittsburgh Trust Co.. Pittsburgh: City Bank Farmers Trust Co.. New York. REGISTRARS--Union Trust Co,. Pittsburgh: Guaranty Trust Co.. New York. ISSUED--Upon reincorporation in 1020, 307.342 shares of new 8100 par stock were Issued as follows: 247.500 chare* ' 3 holders of old 5100 par common on a share for chare basis, 1,540 shares to holders, of bid 12% preferred on tha basis of two shares for each, share held: 47.728 shares to stockholders of Columbia Chemical Co. on the bests of 8/10 or a share for each share held: 20474 *hares to mlnorltr stockholders. (40%) of Pstton-Pltceim Co. on a share!or share basis. PRICE RANGE-- 1941 1940 >. 1039 Stock_________ 95(4-55 104(4-55: 11T-90 (tack Osttonsi on May 17, 1033 dimeters al located 67.120 shares to certain executive of ficers and key employees to be sold at 125 per hare with payments of at least SOoper share quarterly on account-of tha purchase pnee. As of Dec. 31. 1941 there were approximately 10485 shares under this option of which 5400 shares will bo issued from treasury stock and the balance from unissued stock. SOUTHERN ALKALI CORPORATION I Controlled jointly by Pittsburgh Plate Class Co. (51%) and American Cyanamid Ce. (45%)) History: Incorporated in Delaware (-.1 April 20. 1931. business: Manufactures heavy chemicals. Property: Plants, located In Corpus Chrlatl. Texas, arc served by 3 railroad trunk lines, riant for (he production of soda ash. caustic soda and other alkalis went into operation in the fall of 1331: liquid chlurin-- riant and the refined salt plant opened In 1338. Salt brine for manufacture is piped from company's own wells and natural gas for puwer Is provided from company'* near-by field. Control: Capital stork jointly owned (51% and 43': respectively 1 by Pittsburgh Plate Glass Co. 1 see preceding statement! (through Columbia Development Corp.. wholly-owned aupN-.dinrv' and American Cynnnmid Co. (see general index' Entire issue of bonds af Southern Alkali Corp. Is also jointly owned by soul companies. Subsidiaries . wholly-ownrd'' Southern Min eral, Corp. and Su.uthern Pipe l ine Corp. Annual Meeting: Third Wednesday in April. No. a4 Employees: Dee. 31, 1939: Southern Alkali Coro- 387: Southern Minerals Corp-, 168; Southern Pipe Line, 54. Odea: Corpus Christ!, Texas. Consolidated Dee. 1> 1 as reported Net sales........-- Cost of sales___ Depreciation____ Depletion ______ Sell., exp- etc. .. Net oper. profit -Other income___ Gross Income___ Bond Interest -- Other interest___ Prop, retirement. Other deduction. Income taxc* Excess prof. tax. Aceeunt, years ended 1940 67.509,119 3.60019 8S1.737 414.225 428.173 2.210.666 75.313 2.265.978 271.283 232.590 150.362 24.497 379.181 99.103 1939 54X57X41 3.632,815 825X60 362.605 377,643 1.758.616 24.360 1.782.996 286.008 195.007 54.119 10,288 204.337 1940 Earned per share No. of shares___ (11.29 100,000 Censdlidated Belance (beet, as (as reported to the. SEC): Assets: 1040 Cash (800.074 Working funds_ 1.750 Receivables, net.. 311.818 mFinished chem.. 228,074 TCrude oil _____ 875.429 [jMater. & tuppl.. 489.705 Total current. Plant & equip.... Deprec. A deplet.. Net property .. Investment _ Notes receivable . Deferred charges. Total .............. Liabilities: Notea payable -- (2405.549 18.667.068 5.510.760 13,148408 3451 100,000 102,016 813.860.825 1939 11043 100X00 ef Dec. u 1939 9318X0* 1.750 627.404 175,461 343X13 368X22 (1X36445 16.411.754 4465.740 12446X14 3451 175X00 74.442 514X35,052 (1X95.000 Officers: II F. Pitcairn. Pics.: C. M. Brown. Met income . .. W. B Hell. H. L. l>erbv, H S Wlicrrett. O. N. T>iv'.drnds paid .. Stephens. Virc-Pres.: J. li. Ileroy. See.; F. W. Surplus for year. 1.121 960 300.000 828.960 1,033.236 Due anil. co.___ 150.000 Accts. payable -- 883.238 Accrued interest.. 1.184.591 61,714 3.021.995 64X93 Currier. Tre.is, Earn, surpl.. 1-1.. 1.707,972 884.690 Accrued taxes----- 515,349 232.733 Directors: C. M Brown. Raymond Pitcairn. Credit.................... 22X13 Acer. sal. & wage. 23.690 22X90 1\ !'. C-M-por. ,1 II. Ht-r.-v. W S Landis. H Charges................. y. Pitcairn. E \V Winkler. W. B. Bell. H. L. Earn. surp.. 12-31 Derby. H. S Wlierrett. Frederick Pope. Times dies earn 2,536.932 3.99 82.469 Bonds due --------1,707.972 3.57 Total current. 230,000 (6,649.526 55X36.463