Document 9xVBqXY48Y31kQLZb33KDVKV

FILE NAME: Philip Carey (PC) DATE: 1944 DOC#: PC053 DOCUMENT DESCRIPTION: Entry from Moody's Manual of Investments MOODY'S MANUAL OF INVESTMENTS AMERICAN AND FOREIGN INDUSTRIAL SECURITIES JOHN SHERMAN PORTER, Editor-in-Chief Editorial Board J o se ph A. D it tr ic h D avid M . E l l in w o o d Arthur W . H errmann M ax B rupbacher W alter F. H ahn G e o r g e I. B l a ir F ra nk J. St . C lair 1944 COPYRIGHT, 1 9 4 4 , BY Moody' s I nvestors Service, N ew York K tL BIGHTS BESEEVED MOODY'S INVESTORS SERVICE 65 BROADWAY, NEW YORK 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. Ruse Bldg. LONDON: MOODY'S INVESTORS SERVICE, LTD. 406 M O O D Y 'S M A N U A L OF IN F E S T M E N T S F in an cial & O p e ra tin g R atios (co at'd) % sales to n e t p r o p e r ty .. _________ % sales to to ta l assets___________ . . . % n e t incom e to to ta l asse ts_______ . . . % n e t incom e to n e t w o rth _________ P fd. div. tim es e a rn e d :_____________ Analysis of Operations N e t safes . . . . ____________________ __ Cost of sa le s__________________ Selling, g e n e ra l & o th e r ex p en se__ D ep reciatio n Sc a m o rtiz a tio n ____ ..._ O p eratin g p r o f i t _______________. . . . . O th e r incom e ______________________ T otal in c o m e ____________ ______ ___ In te re s t 3c o th e r d ed u c tio n s________ Prov. fo r p o st-w ar a d j u s t m e n t s __ F e d e ra l incom e tax es s u r t a x . . . . . __ N et i n c o m e ____ _______ . . . . . . . . . . . Includes am ortization. 1943 742.63 211 3 5.48 7.40 2.60 % 100.00 86.09 3 93 9.98 0.36 10 35 0.09 0.6 7.01 2.58 1942 531.12 176.35 4.70 5.51 1.93 % 100.00 89.63 5.64 4.73 ' 0.52 5.25 0.32 2.27 2.66 1941 445 20 144.93 8.16 9.31 3.23 % 100.00 83.79 7.18 9.03 .46 9.48 .08 3.76 5.63 1940 377.26 129.18 3.85 4.23 1.38 % 100.00 87.92 8.35 3.73 0.49 4.22 0.22 1.02 2.98 1939 364.28 103.67 d 1.13 d 1.49 N il % 100.00 92.73 8.43 d l.lS .SS iil JSS d 1.04 1938 451.70 137.95 6.90 7.74 2.62 % 100.00 83.33 9.85 1.15 5.67 .45 6.12 .13 1.00 5.C0 &y * `l i t M f ito % 19c a :. 1 to is* ito s* CAPITAL STOCK 1. W esson Oil & Snow drift Co., Inc. $4 ' cum ulative convertible preferred; no par: AUTHORIZED--500,000 sh ares; issued. 400.000 sh ares; o u tsta n d in g , A ug. 31, 1943, 292,000 sh ares; in tre a s u ry , 8,000 sh ares; re tire d , 100,000 sh ares; n o par. DIVIDEND RIG H TS--H as-p referen ce to cum u la tiv e d iv id en d s of $4 p e r an n u m . D ividends payable quarterly Mar. 1 etc. to stock of record a b o u t F eb. 15, etc. DIVIDEND RECORD--In itia l q u a rte rly d iv i d en d o f $1 p e r s h a re p a id J u n e 1. 1929, a n d regularly thereafter. DIVIDEND RESTRICTION--See d escrip tio n of com m on stock. No. 2 V O TIN G RIG H TS--H as n o v o tin g rig h ts e x cept w hen dividends are in arrears to the e x te n t o f $4 p e r sh a re o r m ore, w h en p re fe rre d has full voting rights (except for directors) equal to th e conibined votm g rights of all * other stock ranking either on a parity w ith or junior to it, and th e preferred stock shall 6 elect a m ajority of th e Board o f Directors. So long as any preferred is outstanding, no stock ranking senior to it shall be created. W ithout consent of a m ajority of th e pre ferred, no stock on a parity w ith it as to divi dends or assets, or both, shall be created, nor shall authorized am ount of preferred be in creased. P referred shall at all tim es have the right to vote as a class in any proceedings relative to creation of any stock of other class or any Increase in authorized preferred. Out standing shares of preferred shall not be in c re a se d ab o v e 400,000 u n less c o n c u rre n tly w ith o r prior to such issuance capital stock has been Increased by the am ount which, w hen added to th e n et consideration received for such additional stock and added to th e capi ta l stock, sh a ll a m o u n t to a sum eq u al to $110 per share for such additional shares, pro vided th at any part of such increase m ay be effected by capitalization of consolidated sur p lu s e a rn e d s u b se q u e n t to A ug. 31, 1928. W ith out consent of a m ajority of the preferred, com pany shall not dispose of its properties as an en tirety o r substantially so; sell o r other wise dispose of the ownership of any shares of any constituents: perm it any constituent corporation to dispose of its properties as an en tirety or substantially so, except to a sub sidiary. W ithout consent of tw o-thirds of th e pre ferred, com pany m ay not encum ber fixed property, issue indebtedness m aturing later than one year, guarantee indebtedness of any corporation other than a subsidiary nor per m it any subsidiary to encum ber fixed proper ties, issue debt due after one year or guaran tee outside indebtedness, or issue any stock or other securities except to th e company, provided th at the foregoing shall not apply to the incurring by company or subsidiaries of indebtedness in the ordinary course of busi ness m a tu rin g w ith in 12 m onths, th e m aking of contracts in the ordinary course of business and the execution of purchase money m ort gages or assum ption of existing mortgages on p ro p e rty acq uired, u p to 75% o f cost. Foregoing provisions m ay be am ended w ith consent of tw o-thirds of outstanding preferred. LIQUIDATION RIGHTS--In a n y liq u id atio n , h as p re fe re n ce to $85 p e r sh a re a n d accru ed dividends. PREEM PTIVE RIGHTS--Is p riv ileg ed to sub scribe ratably w ith common to any shares of common offered to holders of common stock fo r su b scrip tio n a t less th a n $85 p e r sh a re , a n d to any other securities convertible into com mon on such term s as may be equivalent to a price o f less th a n $85 p e r sh a re f o r com m on. CONVERTIBLE--In to com m on sto ck s h a re fo r share up to 6 days prior to date set for re demption. C ertain provisions protect conver sion privilege against dilution. CALLABLE--I n w hole o r in p a r t o n a n y divi d en d d a te on 30 d ay s notice, .a t $85 a n d ac^ crued dividends. LISTED--N ew Y ork S to ck E xchange. U n listed trading on New O rleans Stock Exchange. TRANSFER AGENTS--C ity B a n k F arm ers T ru st Co., N ew Y ork, a n d N ational B an k of Commerce. N ew Orleans. REGISTRARS--C hem ical B an k Sc T ru s t Co., New York, and H ibernia N ational Bank, New O rlean s. ISSUED-^To provide for the retirem ent of the fo rm e r $7 p re fe rre d sto ck a t $110 p e r sh a re o n Ju n e 1, 1929, a n d fo r ad d itio n a l w o rk in g capital. OFFERED--400,000 sh ares a t $72.50 p e r sh a re In F e b ru a ry 1929 b y N atio n al City Co., N ew Y ork. PRICE RANGE-- 1943 1942 1941 P r e f e r r e d ___ 793/4-69 7144-5944 7444-6544 2. W esson Oil & Snowdrift Co,, Inc* e mon; nor par. AUTHORIZED--2.000,000 sh ares; issued wJ0i sh a re s; o u tstanding, Aug. 31, 1943, 5 U .3 sh ares; in tre a su ry , 16,871 shares; feserr** fo r co n v ersio n o f p re fe rre d stock. :36.v4* shares; no par. Dividend Record (In $) 1925-26 1929__ (No p ar 1929__ 1933__ 1937__ 1940__ 1943__ (Calendar Years) (No p ar shares) nil 1.00 1927__ 3\ .00 1928--. ' ito sh a re s a fte r 100% stock dividend to M arch 1929) 1.50 1930-31 2.00 1932... 12$ 0.6244 1934__ 1.00 1935-36 Lto 3.50 1938__ 2.50 1939__ OfT% 0.50 1941__ 2.25 1942... 106 1.50 GI1944__ 0.50 Lu * U 6 D ividends p ayable q u a rte rly , Jan . 1, ete. to sto ck o f record, Dec. 15, etc. DIVIDEND LIM ITATION--So long as any pre fe rre d re m a in s outstan d in g , n o stock of ran* junior thereto m ay b e purchased or redeem a n d n o d iv id en d on a n y ju n io r shares may to paid except out of consolidated surplus ear since in co rp o ratio n a n d /o r derived from safe of a n y ju n io r stock su b seq u en t to Mar. 9. lato a fte r deduction fro m such surplus of all dm. dends paid. VOTING RIGHTS--Sole, su b je c t to rights at $4 p re fe rred , w hich see. PREEM PTIV E RIG H TS--None. LISTED --N ew Y ork S tock Exch* ge. TJnlJsto* tra d in g on N ew O rleans S tock E 'hange. TRANSFER AGENTS--G u a ra n ty Trust Ca.. N ew Y ork, a ' ct N atio n al B an k of Commerce New Orleans. REGISTRARS--C hase N atio n al Bank. N et Y ork, a n d ' H ibernia N ational Bank. Nr O rleans. ISSUED--270,000 sh ares u p o n organization to co m pany in 1925 to p ro v id e in p a rt for acqula* tio n o f p redecessors; 30,000 shares in February 1927 to stockholders fo r cash by su b scrip t in o rd er to provide for additional works cap ital, a n d 300,000 sh ares in March IK* th ro u g h 100% sto ck dividend. PR IC E RANGE-- 1943 1942 1941 C o m m o n ____ 2644-17% 2014-15 2544-W* CAPITAL STRUCTURE THE CELOTEX CORPORATION FUNDED DEBT Issue 1, 33,4% d e b e n tu re s, 1955. CAPITAL STOCK Issue 1. 5% cum . p re fe rre d 2. C o m m o n ______ ______ _ R atin g Baa Par V alu e $20 No par Amount O utstan d in g S3,000,000 Amount O utstan d in g 156,863 shs. 753,254 shs. T im es Charges Earned Interst 1943 1942 D ates 9.73 19.36 JScJ 1 Earned p er Sh. Dlvs. p e r Sh. 1943 1942 1943 1942 $3.56 $37.75 $3.00 $5.00 0.54 1.54 . 0.50 0.75 Call Price 10344 Call P ric e 20 -- P rice Range 1943 1932-4 10244-100% 102*4-109* Price Range 1943 1932-4 021 -16% @21 -it* 143/4- 8% 1914- S F iscal y ears. R ange since 1938, a fte r 100% sto ck dividend. B efo re 100% sto ck d ividen d, 1935-38 ran g e 4844-1244. Subject to cMntr J u ly 1. A s of N ov. 15, 1943. As of A pr. 1, 1944. $100 p a r shares. @$20 p a r stock. Of w h ich $2.50 p aid on old $100 p a r shares. I*IX range. HISTORY In c o rp o ra te d in D elaw are J u n e 29, 1935, as successor in reorganization to th e Celotex Co. (Del.). L a tte r com pany was incorporated in D elaw are In 1920 a s "L o u isian a C elotex Co." O n J u n e 16, 1932, th e la tte r com pany w as p la c e d in rec e iv e rsh ip . O n Feb. 8, 1935, tru s tees w ere appointed u n d er Section 77-B of th e U. S. B an k ru p tcy A ct. A reorganization p lan w as su b m itted u n d er d ate of M ay 1,1934 (sub se q u e n tly m odified), an d on Nov. 1, 1935, th e business and assets of the predecessor com pany w ere transferred to the present com pany. Details of reorganization appear in M oody's 1935 In d u stria l M anual. ^ I n 1937, o rganized E ng lish C om pany, Celotex, Iii 1937 a c q u ire d an in te re s t In A m erican G y p su m Co., P o rt C linton, Ohio, a n d in 1939 com pleted acquisition of company. In 1937-38 a c q u ire d G u lf G ypsum Co. o f H ouston, T ex.; in J u n e 1943 la tte r w as liq u i dated. In 1938 c o n stru c te d a p la n t a t London, England. I n '1939, a c q u ire d T h e P ozzorite Corp. (D el.), w hich im ports from Greece a cem ent in g re d ie n t; a n d th e P o ttsco C orp, (111.), nam e subsequently changed to Expanded Products Corp.. ow ner of a p aten t covering concrete. I n 1941, liq u id a te d E nglish su b sid iary ho ld ing com pany, Texcel, Ltd. Phoenix Securities Corp., form er holder of a n n ro x im a te ly 27% of com pany's com m on stock, distributed practically all such stock to its ow n sto ck h o ld ers o n Nov. 24. 1941. In reference to litigation between the com pany and C ertain-teed Products Corp., see latter company (general index). SUBSIDIARIES This is principally an operating company. A t Oct. 31, 1943, 100% 01 th e v o tin g pow er was owned in the following companies; Name, place of incorporation and business: Celotex, Ltd., England, m anufactures and sells Celotex products In B ritish Empire. A m erican G ypsum Co., Ohio, inactive. E xpan d ed P ro d u c ts Corp., 111., ow ns p a te n ts on concrete. The Pozzorite Corp., Del., inactive A t Oct. 31. 1943. th e com pany also ow ned 147,260 sh ares of com m on stock o f C ertain teed Products Corp. (see general index). Also, th e com pany ow ned 18,914 sh a re s o f th e 4% p re fe rre d stock a n d 120,272 shaj.es of th e com mon stock of South Coast Corp. (see general index). BUSINESS St PRODUCT8 The company m anufactures building and in sulating products, consisting for the most part o f products m arketed under the trade name "Celotex." These products are m anu factured principally from bagasse, the fiber rem aining after the juice has been extracted from sugar cane, and are used, among other things, for exterior sheathing, plaster base, exterior and interior finish, for insulating Sroofs, a n d as Insulation in th e manufacture to household refrigerators, railw ay refrigerau* cars, cold storage p lan ts and o th er product T he com pany also m an u factu res and mn> ro d u cts fo r c o rrectio n of acoustical coadt* ons in office buildings, auditorium s, theater, b ro ad castin g studios, a n d o th er places a w hich acoustical tre a tm e n t is desired, includ ing products m arketed u n d er the trade naooi "A cousti-C elotex" a n d "C alicel," "CaUstooe,* and "Muffletone." The com pany also is engaged in the handlist an d sale 01 o th er ty p e s of insulating and budd ing m a te ria l pro d u cts, including loose oat b a it fo rm s of ro ck wool, roofing products. OTsum p laster, la th a n d w allboards, and sen v ario u s item s u sed as accessories in the a* plication of products sold. The company operates under patent* m i p a te n t rig h ts both of th e U nited States and fo reig n countries, covering various product! pro cessei and m achines, including a series! p a te n ts covering m a te ria l and processes tot tre a tin g insulating m aterial for protect* ag ain st dam age b y d ry ro t, fungi, termites sad other similar hazards. M arkets for Celotex products include ft* eral building, to w hich are sold various pre* ucts in both the residential and non-resident fields in urban districts, and for farm horn and other farm buildings in th e ru ral distreto th e acoustical m ark et, w hich em braces a Ur* field su ch as offices, re sta u ra n ts, industry plants, schools, churches, etc., where it a :*b\t to arrest noise and to correct acousti- cuities; and the in d u strial field, w here .u * products are widely used in the ....ciure of various ty p e s of re frig e ra tin g . in incubators, a ir ducts, radio sets, wtiuiating brick siding, etc. T he com pany w approxim ately 65 d iffe re n t ty p e s of &fe*r-*xcturing. vw ux also sells products m ade by oth er v- t^utfiacturers, such as h a rd boards, w hich : aw and h an d le lik e lu m b e r (m ad e by Corp.). and are used for paneling 1' r aU sorts, for d eco ratio n , shelving, etc. \t^KT%U (made by various steel com panies). weight concrete aggregate, is m ade of stranded molten b last fu rn ace slab, a n d is 4*4 with P o rtla n d cem en t to m a n u fa c tu re concrete. The Ccioiex Corp. m aintains offices through- sat the w orld an d h a s b ra n c h offices in 12 cU4i located in various p a rts of th e U nited i saitv including th e Pacific Coast. MMCIPAL PLANTS A PROPERTIES tw mam m anufacturing p la n t is located t* au rrero . in Jefferson P a rish , La., close to a* Cty of New O rleans. I t com prises a p p ro x i mate.) 143 acres of land, u p o n w hich a re 24 addings with a to ta l of 602,000 sq. fe e t of J,- pace. Aa agreement has b een e n te re d Into w ith fru..Meed Products Corp. (see general inJr* for the use of Celotex o f excess p lan ts 4t C eruinteed in th e m a n u fa c tu re of b u ild - n-au rials such as roofing, etc. D etails of tf-c:.er.t appear u n d e r C e rta in te e d P ro d u c ts. :t.r company obtains bagasse, the principal *%9 n~u?riai, from a n u m b e r of su g ar m ills a p.nt at M etuchen, N. J., is located on **foxim ately 12 acres of la n d , a n d co n tain s 210.000 square feet of floor space, v u*t; ior the m anufacture of asbestos cem ent board products, insulating siding and asphalt im pregnated roof deck surfacing. A leased p lan t a t M arietta, Ohio, is used in the m anufacture of acoustical and archi tectural products made principally from rock slag. A p lan t a t P o rt Clinton, Ohio, is used in the m anufacture of gypsum products, A p la n t near Xagro, Ind. is used for pro duction of rock wool insulation products. O n Oct. 30, 1943, d irecto rs au th o rized p u r chase of assets of Insulation Industries, Inc., a M ichigan corporation engaged in m anu f a c tu re a n d sale of ro ck Wool products, and th e assets of Cam pbell Process Co., a M ichigan corporation, including a patent having to do w ith m anufacture of rock wool products. Company paid for Insulation Industries assets 8,000 sh ares of 5% cum . p re fe rre d stock an d $7,500 in cash, also assum ing c e rta in liabilities ag g reg atin g ap p ro x im ately $33,500 a n d ag ree ing to pay to Insulation Industries up to $5,000 on undisclosed claim s a n d $1,000 for services and expenses of attorneys in con nection w ith the dissolution of Insulation In dustries. Company also agreed to pay for the asse ts of C am pbell Process Co. $1,000 in cash and assum e certain liabilities am ounting to a p p ro x im ately $4,700. MANAGEMENT Officers B ror Dahlberg, President Cari G. Muench, Vice-President CL S. M ansell, V ice-P resident H. W. Collins, V ice-P resident M. F. Parsons, Vice-President C. L. C hristensen, V ice-P resident C. G. Rhodes, T reas. M. D. M usgrave, Sec. Directors andW. T. Alden, Chicago C. L. C hristensen, M adison, Wise. W. W. Colpitts, N ew Y ork B ror D ahlberg, Chicago L. B. Ewing, N evada, Mo. John G. Getz, Jr., D etroit John Irw in, Chicago O. S. M ansell, Chicago Carl G. Muench, Chicago General Counsels Pam , H u rd & Reichm ann. Annual Meeting: T h ird Tuesday in Janrary. Number o f Stockholder*: Dec. 31, 1942: P re fe rre d , 1,176: com m on, 6,584. Number of Employees: N ov. 1,1943, 3,500 (of w hich 2,400 are em ployed in > th e p la n t a t M arrero, La.). ^ G e n e ra l Office: 120 So. L a Salle St., Chicago, Management Compensation Plan: F or the fiscal y ears 1940 a n d 1941, in ad d itio n to fixed salary, compensation of B ror Dahlberg, P res ident, w as 5% of th e "n e t earn in g s" above $650,000. Also, V ice-P residents L. R. B oulw are an d C. G. M uench receiv ed , in ad d itio n to fixed salaries,-1% of n e t earnings in excess of $650,000. Also, th e re w as se t aside 7% of n e t earn in g s in excess o f $650,000 fo r exec utives and departm ent heads, to be distributed in accordance w ith th eir salary levels. For fiscal y e a r en d e d Oct. 31, 1942, u n d e r a n em ployees' profit sharing plan, in addition to salaries, B ror Dahlberg, President received 3.10% of " n e t e arn in g s", above $750,000; 5.902/3% w as allocated to other em ployees, su b je c t to lim itatio n th a t C. G. M uench, Vice-Pres., should n o t receive m ore than tw o-thirds of his salary; other employees n ot to exceed 26 2/3% of com pensation. P ro fit sh arin g arran g em en ts fo r 1943 a re sam e as for previous fiscal year, except th a t they are based on " n e t earn in g s" in excess of $825,000. "Net earnings" are determ ined before certain interest and am ortization charges, and cer tain taxes, and exclusive of profits o r losses derived from certain sources. MCOME ACCOUNTS Pvt s a l e s _________ Ctat of sales an d expenses depreciation and depletion. COM PARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS ENDED OCT. 31 1943 1942 1941 1940 1939 $22,598,269 $23,510,364 $19,977,155 $13,817,501 $12,317,936 20,017,4)38 19.110,688 16,361,701 12,360,204 10,819,066 612,724 534.526 447,498 448,692 423,762 1938 $9,126,489 8.081,953 389,932 * 1937 $10,574,242 8,906.528 374,464 Operating profit Other Income . . . . . . . 1,968,107 166,739 3,865,150 115,787 3,167,957 158,853 1,008,605 151,496 1,075,107 57,069 654,604 133,268 1,293,250 260,266 Total income . . . . . . . . . . . . . . . . . . . . Prtvm t on funded d e b t . . . . . . . . ____ _ dtoer interest .......................... .. Swfet discount an d ex p en se ________ Pot expense w ritte n off _______ . . . deductions . . . . . . __ . . . . . . . . . . . r*j*rt income tax es . . . . . . . ___ . . . . . profits ta x . . . . . . . . . . . ___ . . . . . credit--excess p rofits ta x .. . \m t\ retirem ent c re d it . . . . . . ______ ptaer inc. taxes & conting. ta x re s ... Ncl p r o f it________ _____________ Preferred dividends . . . . . . . . . ____ . . . iacimon d iv id e n d s __ . . . ______ . . . . . 2,134,846 135,972 18,435 37,664 225,254 49,627 367,363 834,077 CT 20,588 c r 63,400 21,092 530,199 148,863 325,293 3,980,937 143,543 8.890 51.232 " "37*369 549,289 1,972,100 c r 30.000 "2547 01,123,967 147.112 47i:901 3,326,810 151,615 3,172 51,232 *123*903 604,823 473,000 169,967 1.749,099 145,363 706,138 1,160,101 162,654 25,120 51,232 "*84469 89,300 1,132,176 165,902 35,197 , 51,232 "~59' 79,000 ( ' 747,628 145,363 741,756 145,363 787,872 170,013 10,478 51,232 27,791 10,000 1,553,516 184,640 38.423 63,700 518,358 145,363 312,429 1,266.753 145,363 322.422 S Surplus for y e a r . . . . . . . . ___ _____ $56,043 $504,954 $897,598 $602,265 $596,393 $60,566 $798,968 I Before debiting $67,187 p ro v isio n fo r p a y - A fter re n eg o tiatio n provision co m p u ted on General Note: P a te n ts o f co m pany c a rrie d mmc.x of first p re fe re n c e d iv id en d s in ex cess sa m e general basis as 1942 reneg o tiatio n , su b a t $ 1 4h av e fo r incom e ta x pu rp o ses been *r income fo r y e a r en d e d O ct. 31, 1938, of je c t to final app ro v al of U. S. G ovt. am ortized on basis of cost thereof over life of gi-ciex. Ltd., B ritish subsidiary. A fter renegotiation refund subject to final such patents. Such am ortization w as com- 1 before cred itin g $85,596 n e t a d ju stm e n t of a p p ro v a l n e t pro fit w as $931,187. le te d a t e n d of fiscal y e a r 1941; a n d am o u n ted M for depreciation for prior years and restoration of provision m ade a t Oct. Note: Above report excludes Celotex, Ltd. > a p p ro x im ately $430,000 p e r y e a r. T h e p ro vision fo r F ed eral in co m e ta x in 1938-41 is ti ;r4 for paym ent of first preference divip c i i of Celotex, Ltd. N et profit of th a t com pany for y ear ended Oct. 31, 1943: $44,103; 1942, $42,774. after giving effect to deduction of such am or tization. No fu rth er deduction can be m ade In future years. ftALANCE SHEET8 ASSETS: $Mt, ___________________ . . . _. . . S G overnm ent s e c u r i t i e s ____ * and accounts receivable, n et 1 atones ----------------------------- COM PARATIVE CONSOLIDATED BALANCE SHEET. A S O F OCT. 31 1943 1942 1941 1940 1939 $2,863,085 $1,190,786 $1,142,711 $1,059,958 $600,484 150,000 2,669,788 3,1791237 3454463 2,245*147 1,938,633 2,133,070 2,583.474 2.037,791 1,580,516 1,824,418 1938 $865,256 / 1,427,551 1,678,036 1937 $1,048,726 1,509,754 1,368.376 TeUI current a s s e t s ____________ 'meriting p r o p e r tie s --------- . . . . . . . .-relation ____________ . . . . . . . . . . . operating p ro p e rty . . . . . . ___ rung p ro p e rty (n e t) --. -- -- and r i g h t s _________________ 4. Coast Corp. in v e s tm e n t______ *vnrnt. A m erican G ypsum Co-- -^ trr.ert in C elotex, L id. ________ C crtain-teed P ro d . C o r p .__ - war tax re fu n d ______________ r assets ... . . . . . . . -- . . . ---------- t ' .cr: debt discount & expense . . . - r:xt l c h a r g e s -----.----------------------- $7,815,943 11,421,344 6,867,285 4,554,060 115,665 1 438,541 733,260 1,137,540 50,588 158,924 122,827 126,820 $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 $6,334,964 10,876,443 6,080,646 4.795.797 252,932 1 1 747.617 1,270,929 125.504 268.966 70,531 $4,885,621 10,398.168 6,031,317 4,366,851 276,203 1 1 760,101 1,270,929 122,637 320,198 139,087 $4,363,535 10,608,272 5.879.960 4,728,312 1 1 1,190,947 1,373,981 116,978 371,429 192,442 $3,970,843 8,888,674 4,502,089 4,386,585 1 1 482,915 856.701 829,743 5,612 422,661 136,889 $3,920,856 8,615,159 4,130,459 4,484,700 1 1 482,915 590,106 10,179 473.893 95,173 e i a ---- --------------------- -- LIABILITIES: % -* ? - > a o .e ____ ...... p a y a b le ____ ...... : vxpenses -------------- . . . . . . . i r `.eresi . . . _. . . . . . . . _. . . . . . . . Celotex L t d . . . . . . _. . . . . . . . . . . . for troie t a x e s ------ - - "rrr: dividends p a y a b le . . . . . . . . . i_ r income tax es . . . _. . . __ $15,254,168 $1.427,303 788,496 43,254 108,011 821,277 $14,518,631 $1.497,242 641.467 40.390 173.099 574,576 $13.867.242 $1.488,031 702.652 40.078 12,346 102,565 485,091 $12,141,629 $266,190 689.937 507,508 44,937 87,988 121,871 $12.337.625 $539,107 876,205 408,326 47,897 84,667 100,302 $11,091,950 $475,000 770,410 249,690 42,193 67.872 50,341 19,056 $10,063.823 $5*94,724 283.565 45,000 72,572 67,591 Tats) cu rren t liabilities . . . . . ------ * r.-.& b le ________ . . . . _. . . . . __ .c: rtork div id en d -- _________ v -- a-,ar license a g r e e m e n t_____... * f 'r f ir r e d frock (p ar $100) --------- stock ........ ............................ fri. ' - . . . . . . ____ . . . . . . . . _________ $3.189,341 3,000.000 36,941 2,977,250 696.933 E l , 363.845 $2.927,673 3,158.500 51.802 2,977,250 638.410 700.843 $2,830,762 3,207,500 66,487 2,907,250 638 410 700,813 $) .718,431 3,539,000 80,000 81,686 2,907,250 638 410 700,843 $2,056.504 3,605.000 396,190 92,950 2,907.250 638.410 683,295 $1.666.562 3,750,500 298.880 312.429 2,907.250 312.429 45 .699 $1,033 453 4,000.000 2,907.250 26S 685 424.8x3 i f x \ y v / ^ A j JXLX1XT L / ^ a X i l / l 1 i i i i f r O I 'i U r i Y I 'd ' BALANCE SHEETS fcont'd) LIABILITIES E a rn e d su rp lu s ................. .......... T o t a l .................................................. Reacquired common stock . N et e q u i t y ______________ ____ 1943 3*989,857 9,027*885 9*02~7"85 1942 4.126,593 8,449,097 68.441 8.380.656 1941 3,621,640 7,874,143 111,651 7,762,492 1940 2,581,659 6334,163 111,651 6,722312 1939 1,979,394 6318347 90,366 6,127,981 1938 1,383.001 5.062379 5.062379 g T o tal ........................... ....................... 315,254,168 $14.518,631 $13,867,242 $12,141,629 $12,337,625 $11,091,950 Net current assets ..................... ..............* $4,626,602 $4.025,824 $3,504,202 63.167390 $2,307,031 $2,304,281 At lower of cost or m arket. T reasu ry notes, ta x series, a t cost: 1943 $1,320,- (b) A ssets o f Tiexcel, Ltd. (wholly In v estm en t a t cost (less $26,840 re se rv e in 000; 1942, $2,303,000; 1941, $801,320. English subsidiary--liquidated in 191] 1943) in se c u ritie s C elotex, L td . (E nglish su b - Includes pro v isio n fo r ren eg o tia tio n in sk iin g o f $2.032 m cash at converted sidiary--n o t cb n so lid ated ) plus, in 1939, c u r 1942 a n d 1943. (1939: cash, $7,877, advances for cc r e n t in d e b te d n e ss a n d c o n stru c tio n advances. P a r v alu e: 1943, $20; 1942, $100. (net) of $137,178 a t converted value Biinvestment In C ertain-teed shares a t w rit ESAfter c re d itin g $529,410 excess fro m issu a n c e o f 58,523 a d d itio n al com m on s h a re s n o itie s owned o f C elotex, Ltd.) have been solidated in 1940 sta tem en t te n do w n v a lu e ($829,743) a f te r c h a rg e of $1.049,856 to p a id -in s u rp lu s d u rin g 1938 fiscal par value over $1 sta te d value and $132,519 . (c) A ccording to th e an n u al report for year and reflecting subsequent purchases and excess fro m sale of 5,696 p re fe rre d o f C ertain teed Products Corp. over w ritten-dow n value, en d e d Oct. 31, 1943, an agreem ent has reached w ith the Price Adjustment ~ sales a t cost. A t Oct. 31, 1942, co m p rised 5,696 p rio r p re fe re n c e sh a re s, $133,389 (sold; in a n d a fte r d e d u ctin g $4,928 loss o n s a le of 6,342 Chicago O rdnance D istrict covering 1943) 147,260 com m on sh ares. $1,137,540; to ta l, re a c q u ire d com m on shares. otiauon of w ar contracts for period c ict. 31, 1942, re su ltin g in a n e t refund $1,270,929 (q u o te d m a rk e t v a lq e , $509,231). G eneral Notes ta x e s of $192,780 w h ich h as been char No p a r sh ares: 1943,696,933; 1939-42,638,410} (a) S in k in g fu n d in re sp e c t of 3% s, deb en surplus. A reserv e fo r 1943 renegoti 1938, 312,429; 1937, 268,685. tu re s re q u ire s p a y m e n t to tru ste e o n M ar. 1, co m p u ted o n th e sam e general basis as __ A t cost: 1942, 6,342 -shares; 1940-41, 10,734 1944 o f $125,000 to b e ap p lied to p u rc h a se of ag reem en t, w as ch arg ed against earning sh ares; 1939, 8,450 sh ares. d e b e n tu re s a t p ric e s n o t exceed in g red em p - 1943. A fter deducting investm ent in U. S. fion price. A ccounts certified b y A rth u r Young STATISTICAL RECORD. FISCAL YEARS 1943 1942 1941 1940 1939 1938 E a rn e d p e r s h a re --'p re fe rre d . . . . . . . . . 3.56 $37.75 $60.16 $25.72 $25.51 $17.83 --com m on ____ . . . . 0.54 $1.54 $2.55 S0.96 $0.95 SI.19 D ividends p e r Tare--p re fe rre d i 3.00 $5.00 $5.00 $5.00 $5.00 $5.00 --c o m m o n ______ 0.50 ,, $0.75 1.12% N il ---- nil fflPrice ra n g e --p r e f e r r e d ______ _____ 21-16% 75%-66 75-65 72-48 72%-58 V2%-46 Jt, --com m on ................. . . . . J4%-8% 8% -6% 10%-5% 12%-5 19%-7 % 191/8-12% lili N et assets pe'r sh are--p re fe rre d . . . . . . $60.64 $281.49 $267.00 S23L23 $210.79 $174.14 im i --com m on . . . . . . . 28.68 $8.55 $7.74 $6.08 $5.11 $6.90 Fixed charges earned: B ef. inc. ta x e s, dep rec. & d e p l...__ _ 12.93 21.98 17.72 6.38 5.93 4.96 Bef. inc. taxes & aft. deprec. & depl. 9.73 19.36 15.55 4.50 4.25 S.28 A fte r inc. ta x ., d ep rec. & d ep l.___ _ 3.77 6.52 9.49 4.13 3.94 . 3.24 Times charges & pfd. div. earn ed .-- 2.12 3.78 5.56 2.57 2.50 1.99 P ric e ra n g e : 4%s, 1947 __ . . . . . . . . . . . . 100-93% 97%-88 90%-73% 97-78 92%-59 3%s, 1955 ------------------- 1 0 2 H " N e t assets p e r $1,000 fu n d ed d e b t . . . . . ` ,009 $3,653 *"$3*420 ""$2,858 "$2,509 $2.250 N et c u rr. assets p e r $1,000 fu n d . d e b t.. 1,542 $1.275 $1.092 $875 $568 $569 Times preferred dividends e a rn e d .... 3.56 7.64 12.03 5.14 5 10 3.57 N u m b er of sh a re s--p r e f e r r e d . . . . . . . . . 148,863 29,773 29,073 29,073 29,073 29,073 --c o m m o n ________ 696,933 632.068 627,676 627,676 629.960 312,429 Calendar years. P aid 100% sto ck d iv id en d N ov. 4, 1938. A fter 100% sto ck d ividend: ra n g e p rio r th e re to . 30%-12%. A fter re n e g o tia tio n re fu n d e a rn e d p e r sh a re w as $1.24. P a r v a lu e : 1943, $20; 1942 a n d p rio r y e a rs, $100. $2.50 on $100 p a r stock a n d 50 c en ts o n $20 p a r stock. FUNDED DEBT 1i .. The two Cc eeiiootteevx Cc oorrnp ` f3j3|/%ieia adeeb" eennt,uurrees' hiaekc*. AUTHORIZED--$3,000,000; issued, $3.000,000. DATED--J u lv 1 1943 ' MATURITY--J u ly 1 *1955 INTEREST--J & J 1 a t C ity N atio n al B an k & T ru st Co., Chicago o r a t T- ru ste e 's office. --P r.iinn. cipal and in te re st p ayable in U. S. legal ten d er. TRUSTEE--C hem ical B a n k & T ru s t Co., N ew York. DENOM INATION--Coupon, $1,000; re g iste r- able as to principal. CALLABLE--As a w hole o r in p a r t on a t le a st 30 d ay s' p u b lish e d n o tice a t a n y tim e to J u n e 30 inch as follow s: 1944.__ 103 % 1945____ 103 1946_____102% 1947___ 102 1948____101% 1949____101 1950___ 100% 1954____100% 1955____100 Also callable for sinking fu n d (.which see). SIN K IN G FUND--On o r b efo re first d ay of fifth calendar m onth next succeeding close of each fiscal year, beginning w ith fiscal year en d in g in y e a r 1943, com p an y a g rees to p a y T ru stee 15% of sin k in g fu n d earn in g s fo r su ch y e a r (n o t ex ceed in g $200,000 a n n u a lly ). If less th a n $125,000, th en , u n less am o u n ts p aid in to fiscal years ` ' shall a t the com pany shall pay a sum at least'equal to such deficiency, in lieu of cash, com pany m ay de liver debentures (acquired other than by re demption) a t cost but not exceeding sinking fund redem ption price. Cash deposited is to be applied by T rustee prior to Ju ly 1 next following to purchase of debentures a t not exceeding sinking fund re -' demption price on next July 1 or to redem p tion thereof at such price. In the event on any July 1 Trustee has unexpended balance suf ficient to re d e e m a t le a st $25,000 of d eb en tu res, th e Trustee shall select by lot for redem ption on or before nex t ensuing Sept. 1 debentures sufficient to absorb said balance. D ebentures acquired hereunder are to be cancelled. Debentures are callable for the sinking fund to each J u n e 30 incl. as follow s: 1946___ 102% 1947____ 102 1948___ 101% 1949___ 101 1950____100% 1954___ 100% 1955___ 100 SECURITY--N o t secu red by an y lien. Com pany will not create or perm it to be created any mortgage or lien upon any of its prop erties now owned or hereafter acquired, w ith out securing debentures equally and ratably w ith indebtedness secured by such mortgage or lien. Exceptions to this restriction are pu r chase money and sim ilar m ortgages up to two-thirds of purchase price of property ac quired and renew als of such mortgages; m ech an ic's lien s; lien s a risin g b y reaso n s of deposits w ith or th e giving oi any form of security to any governm ental agency as a condition to transaction of any business or to enable company or any subsidiary to m aintain self-insurance or to participate in any fund in connection w ith w orkm en's com pensation, unebmenpelofiytsmpernotviindseudrafnocrec, oetmc.poarniteossphaarrteiciinpoa tthinegr \n such arrangem ent or for liability on any insurance risks; or mortgages on property of any subsidiary as security for indebtedness owing by such subsidiary to the com pany, as provided. W ithout consent of holders of tw o-thirds of debentures, com pany m ay not create or per m it to be created any funded debt o th er than debentures, unless thereafter: (l) average an nual consolidated net earnings available for interest on funded debt for tw o fiscal years preceding are equal to at least four tim es total annual interest requirem ents on total funded deb t; (2) excess of aggregate c u rre n t assets over aggregate current liabilities is at least eq u al to aggresg ate consolidated fu n d e d d e b t a n d (3) ccoonnssoolliiddaated n e t assets a r e a t le a st equal to 2% tim es aggregate consolidated funded debt. Exceptions to this restriction are: (a) any funded debt to provide for any refunding, renew ing or extension of m aturity of any funded debt; provided that principal am ount of funded debt so created does not ex ceed funded debt to be refunded, renew ed or extended; (b) any funded debt of a subsidiary owing to the company. Funded debt is defined to m ean indebtedness m aturing later than tw elve months from date of creation thereof. C om pany agrees (1) n o t to p e rm it a n y sub sidiary to issue any preferred except to the com pany; (2) n o r to sell o r p a r t w ith control of any preferred stock of a subsidiary held by company except to subsidiary w hich issued such stock so long as such subsidiary rem ains a subsidiary. CREATION O F ADDITIONAL D EBT--Issu ance of debentures under this indenture is lim ite d to $3,000,000. R estrictio n s o n issuance of further debt are noted above under "Se curity." DIVIDEND RESTRICTIONS--C om pany w ill not (a) pay cash dividends on common, nor purchase, redeem or otherwise acquire for a consideration any shares of stock of com pany (other than by issuance of and application of proceeds of additional shares of capital stock to such purchase, redemption or acquisition); or (b) m ake an y in v estm en t over 50,000 in shares of capital stock or obligations of, or any loans to, any company not then, n o r there after by reason of such investm ent, a subsidi ary (other than by issuance of additional shares of capital stock); if am ount of such dividends or am ount devoted to purchase, re dem ption or acquisition of such stock, or the am ount such investm ents shall involve am ounts in excess of a sum equal tc (1) con so lidated n e t earn in g s since Oct. 31, 3942 plu s (2) $1,000.000, plu s (3) all proceeds fro m sale of capital sto ck su b seq u en t to J u ly 1. 3943 n o t applied m (a) or (b) above, after deducting from such aggregate sum (xj all cesh divi den d s p aid since O ct 31, 1942 an d iy', cost c i all shares of stock purchased, redeem ed or o th erw ise a c q u ire d sub seq u en t to July 1, (other th an by issuance or application of; ceeds o f a d d itio n al sh ares of capital sfa a n d (z) a m o u n t of a ll investm ents or loaaa< (b) ab ove su b se q u e n t to J u ly 1, 1943. So long as th e d ebentures are outstai com pany w ill n o t p a y an y dividend (oil th a n sto ck dividends) on capital stock tf paym ent of such dividend current i sh all b e less th a n tw o tim es cu rren t liabilt: C om pany w ill n o t itself, n o r will it per a n y su b sid iary to , g u a ra n te e paym ent of i dividend, d e b t o r o th e r obligation, except provided. RIGHTS U PO N DEFAULT--In event of fa u lt (30-day grace p erio d provided for terest), th e T rustee or holders of a t least] of d eb en tu res m ay d eclare debentures due m ediately. INDENTURE MODIFICATION -- Provifiegjf] m ay be modified, except as provided, co n sent of h o ld ers of 66 2/3% oi debenture * PURPOSE--N et proceeds used to redeem b e n tu re 4%s due 1947. TAX STATUS--C om pany refunds all taxes P en n sy lv an ia (o th e r th a n tran sfer, gift, succession, in h eritan ce, incom e and cap$! stock taxes) in a n am ount no t exceedu m ills p er annum on each dollar of print am ount thereof. LEGAL--F o r savings b a n k s in New Jersey. LISTED--On N ew Y ork Stock Exchange PR IC E RANGE-1943, 102%-100%. D ebentures R etired: 4%s due 1947: ... issue a t 101, Aug. 30, 1943 a t Chemical Bu& T ru st Co., New York. CAPITAL STOCK 1. The C elotex Corp. 5% cumulative ferred stock: par $20. AUTHORIZED--500,000 sh ares (increased f r s G ^ 100,000 shares, Ju ly 12 1943); outstanding, ` 15, 1943, 156,863 shares; p a r 20 (change S100 p a r J u n e 18, 1943, five $20 par sham , . 4 issued fo r each $100 p a r share). 4 s DIVIDEND RIGHTS--H as preference c*s' % com m on to cu m ulative dividends of 5% pnr i num, payable quarterly. DIVIDEND RECORD--N o dividends* pa*.: ; 5100 p a r shares to Nov. 10, 1936 when 5*1; paid clearing up arrears. Thereafter, dividends paid q u a rte rly F eb ruary 1, eu*. tf . M ay 4, 1943, incl. In itia l dividend of 25 cen ts p er 20 p a r shares Aug. 9, 1943; regrula dends paid q u a ite rly th e re a fter to incl. jt DIVIDEND LIMITATIONS -- See R estrictio n s" u n d e r d eb en tu re 3%s, 1955. Ai-fi VOTING RIGHTS--None, except th at if af tim e cu m ulative dividends have accrued :e y * e x te n t of $2 p er sh are, holders oi p rc'.m st stock shall have-one vote per share. LIQUIDATION RIGHTS--Has pfeierene* common to p ar plus accrued and unpaic d-rr ^ ~ '- O llC ii, ''v -v S PREEM PTIVE RIGHTS--None. wv eaLLABLE--On an y q u a rte rly d iv id en d d ate, >.> or in p a rt (by lo t), on 30 days* n otice, * t ptr share plus accrued dividends, r i r t o - O n New York Stock Exchange, f Sa l i t o AGENT--C hase N atio n al B ank, %<w York fiCtSTRAR--C hem ical B an k & T ru s t Com- M f New York. f u i r * RANGE-- 1943 ES1942 031941 (erred........... 21-16% 75K-46 75-65 par shares. I Tm Catatax Cerp. common; no par. artB O R tZ E D --1,500.000 sh a re s; o u tstan d in g , opr L 1*44, 75L254 sh ares; n o p a r. Dividend Record (In $) (Calendar years) 1935-36 N il 1937_ 1.20 1938__ E 1939-40 N il 1941_ 1.12% 1942__ 0.75 1943___ 0.50 GO1944_ 0.25 E P a id 100% in sto ck Nov. 4,1938. E T o M ay 2. DIVIDEND LIMITATIONS -- See "Dividend R e stric tio n s" u n d e r d eb e n tu re 3%s, 1955. VOTING RIGHTS--O ne v o te p e r sh are. See "V oting R ights" u n d er 5% p referred stock, above. PR EEM PTIV E NIGHTS--N one. LISTED--O n .New Y ork S to ck E xchange. TR A N SFER .A G EN T--C hase N atio n al B ank, New York. REGISTRAR--C hem ical B an k & T ru s t C om pany, New York. PRICE RANGE-- 1943 C om m on-------- 1942 1941 8%-6% 10%-5% Subscription Rights: Common stockholders of re c o rd O ct. 22, 1943 h a d r ig h t to subscribe, a t $10.50 p e r sh are, f o r sh ares o f com m on stock, on th e basis of one sh'are fo r each te n shares then held. BOTTAI. STRUCTURE THE FAJARDO SUGAR AL STOCK Issue Par V alue Amount O u tstan d in g $100 None 20 323,890 shs. g n s e a l year. EDPrice range sin ce 1935. COMPANY OF PORTO RICO E E arned per Sh. EDivs. p er Sh. 1943 1942 1943 1942 Call Price Price Range 1943 1932-43 $2~78 $4~93 $2.00 $2.00 28-21 1270-16% T O R Y Rwerpnrated in P u erto R ico on Feb. 28,1919 nun a perpetual charter, as successor to The fu ird o Sugar Co., incorporated in N ew Y ork m Msr . 1905. S u b sid iary F a ja rd o D evelop- w it Co was fo rm ed in 1909. I n 1925 a c q u ire d t#ce> Sugar Co., fo rm ed in P u e rto R ico in 1907. e u Acre Law19--L itig atio n : T he P u e rto government has instituted proceedings ihe Fajardo Sugar Co. of P orto Rico, i* * s^gar Co an d The F a ja rd o S u g a r G row - m* Atr>cifttion in w hich actio n th e g overn- M t aiirrp violation of th e "500 A cre L aw ." rw recalled M500 A cre L aw ." w h ich is Sec- mm T - of Title 48 of th e U n ite d S tates Code. mm** at follows: n * corporation shall be authorized to con- aur. th business of b u y in g a n d selling re a l or be perm itted to hold or ow n real except such as may be reasonably neces- W enable it to carry out th e purposes for wurf it was created, and every corporation tmmi'trr authorized to engage in agriculture # 4 : pt its charter be re stric te d to th e ow ner- nd control of n o t to ex ceed live h u n d re d ci land: and this provision shall be held arwent any member of a corporation en- in ag ricu ltu re fro m b e in g in a n y w ise w aited in any other corporation engaged in Corporations, however, m ay loan uuon real estate security, and purchase m*i w u te w hen n ecessary fo r th e collection of mmo* but they shall dispose of re a l e sta te so within five years a fter receiving the Corporations not organized in P orto and doing business therein, shall be by the provisions of th is sectio n so fa r * w*** arc applicable." TW chief defenses a re th a t F a ja rd o S u g a r :* s i Porto Rico a n d Loiza S u g a r Co. & n o t Ad control in excess o f five hut* fed ***** of Lmd an d th a t e v e n if F a ja rd o & zar Association (w hich is n o t a subsidi- w*' does own and control in excess o f five A.jutivd acres of lan d , th e la w ap p lies only ^ i^porations. No decision rendered b y Su- 4 * Court of P u e rto Rico to O ct. 30,1943. s* IN! P o rto Rico e n a c te d th e so-called Law" setting u p a L and A uthority w ith -> 'f to tak e over, w ith com p en satio n to land in excess of 500 a c re s o w n ed b y *'T3*?riUurLS. associations, p a rtn e rsh ip s, etc . for certain sm all parcels tak en over v* Authority, n o pro ceed in g s h a d b e e n w--ig-: gainst com pany o r its associated .Utons to O ct. 30, 1943. Yx 1K2 U. S. S u p rem e C o u rt in case o f tu iv rt Hcrmanos u p h e ld th e "500 a c re la w " ' t decree of the Puerto Rican Su- Co'.rrt of Dec. 3, 1941 b re a k in g u p th e %# oi the Cam balache Sugar Mill. t*vitory Legislation: O n M ay 12,1942 th e of P uerto Rico approved a sugar i*'..**-* regulation act, w h ich b ecam e effec- y (*'.. th e re a fte r, u n d e r w h ich th e com - `".d u su bsidiary, L oiza S u g a r Co., w e re * * -* x;-icr au th o rity of P u e rto R ic a n P u b lic - * Commission. This law proposes to the grinding and m anufacture of p.J?rto Rico and am ong other things, to determ ine am ount of reasonable ** * tro e com panies m a y m ak e. H ow ever, '.wr.r ifsjcn la te r issued announcem ents 4 xr. s.sbtance p ro v id ed fo r n o rm al r j -g of ivi3 crop w ith o u t an y lim itations m * for said crop year. * '**-: 3!, 1943, th e P u b lic S erv ice Com- not determ ined the am ount of * - Dtofits w hich com p an y an d Loiza *-*' f ' ?: :rn t m ak e in 1944 a n d fu tu re y e a rs. "*- i wore exp ected sh o rtly th e re a fte r. x i l -.\ legislation was passed bjr the tr L egislature in 1942 w hich m ig h t .5 fleet business of th e com pany ** - * - *v.ociated o rganizations, su ch as sr **-* creating a m inim um w age b o ard , an the P u erto Rico T ransportation ......... :.nd an a c t c re a tin g th e P u e rto i Co. Fajardo S ugar Growers' Association: There are held in tru st for the benefit of stockholders of T h e F ajardo Sugar Co. of P orto Rico, b y the G reen w ich T ru s t Co., G reenw ich, C onn., 2,999 s h a re s (o u t o f 3,020 outstan d in g ) o f T h e F a jardo Sugar G row ers' Association, a New York jo in t sto ck association fo rm ed in 1905. Properties of Fajardo Sugar G rowers' Assn, in c lu d e 29,951 acres of la n d ow ned a n d 18,390 a c re s h eld u n d e r lease, of w hich som e 20,753 are planted in cane, a large num ber of dwell ing houses, labor houses, work oxen and other liv estock, also p o rtab le tra c k , w ith som e 837 p o rta b le tra c k cars, 509 b u ll carts, etc. SUBSIDIARIES A n operating and holding company. On J u ly 31,1943, h eld 100% voting p o w er in Loiza S ugar Co. (P. R.), a sugar producer, and held 99.87% v o tin g p ow er in th e F a ja rd o D evelop m ent Co. (Conn.), operating a railroad. BUSINESS St PRODUCTS Company and affiliates form a principal factor in the production of cane sugar, etc. in P u erto Rico. Company and subsidiary Loiza Sugar Co. operate sugar mills at F ajardo and Canovanas, P uerto Rico. Affiliated Fajardo S u g a r G ro w ers' A ss'n ow ns 29,951 acres of lan d a n a leases 18,390, of w hich som e 20.753 acres are planted in sugar cane. The companies con trol through grinding contracts w ith colonos som e 16.096 acres, of w hich a b o u t 9,412 a re planted in cane. Cane produced on these vari ous lands is transported to the factories by the railroad of subsidiary Fajardo Development Co. w hich, although a public franchise ra il road, serves prim arily F ajardo Sugar Co. PRINCIPAL PLANT8 St PROPERTIES SF a c to ry o f F a ja rd o S u g ar Co. lo cated a t F ajardo on th e eastern e n d of Puerto Rico has a m illin g c ap acity o f o v e r 5,000 to n s o f su g a r c a n e p e r d ay o f 24 h ours, a n d is conn ected by railro ad w ith factory of Loiza Sugar Co. a t C an ovanas, a b o u t 20 m iles aw ay. T h e Cano vanas factory has a m illing capacity of over 2,800 to n s of su g ar can e p e r day of 24 hours. The m ain railroad lines are operated under a p u b lic serv ice fran ch ise. T h e re a rc 37 m iles of m eter gauge main line connecting a t Caro lina w ith th e line of th e American Railroad Co., w hich extends to San Ju an , and a t Naguabo w ith the line of the Ferrocarril del Este, which extends to Humacao. Branch line runs to th e port of Fajardo. Branch lines comprise 30 m iles of m e te r gau g e tra c k and 91 m iles of 30" g a u g e tra c k . R o llin g stock com prises 15 s te a m a n d o n e gasoline locom otive, 580 can e a n d se rv ic e c a rs of m e te r gauge a n d 1.070 cars of 30" gauge. Floating equipm ent a t th e p o rt of Fajardo, through w hich are handled out- oing sugar and incom ing freight, com prises 8 ghters and one tugboat. M iscellaneous properties include three steel w areh o u ses w ith sto rag e capacity fo r 400.000 bags o f su g a r of 310 lbs. each, an d five steel m olasses ta n k s w ith storage capacity fo r 5,300,000 gallons. MANAGEMENT General Counsel: Jaim e Sifre, Jr., San Juan. Puerto Rico. Annual Meeting: First M onday in February. No. o f Stockholders: Dec. 31, 1943, 2.041. No. o f Em ployees: D ec. 31, 1943, 4,503. General Office: F ajardo, P u e rto Rico. New York Office: 99 W all S tre e t. N ew Y ork City. Income Account (Fajardo Sugar Growers' A ssn,), years ended Ju ly 31 (as re p o rte d to SEC): 1943 1942 CDSaies. e tc ............ $3,155,874 $3,865,722 Cost o f p r o d . ___ 2,573,184 2,518,634 Sell. gen. exp. 414.426 756,859 O per. in c o m e ___ 168,263 590,230 O th er in c o m e __ _ 12360,200 62,660 T otal in c o m e ___ _ 528,463 652,889 Contingency prov. 200,000 P rio r years exp... 55,000 int. & debt disc.. 2,686 4.476 P. R. income tax . .105,155 66,641 N et in c o m e _____ 420,622 326,773 D ividends --------- 326,160 326,160 Surplus for year. 94,462 613 Earn, surpl., beg._ 2,875,855 2,882,699 D ebits ................- 656 7,457 Earn, surpl., end- 2,969,661 2,875,855 Earn. per sh are... $139.28 $108.20 Num ber of shares 3,020 3,020 ISSales of cane, $37,782 (1942, $63,010); su g ar receiv ed in p a y m e n t fo r can e d eliv ered , $2,631,007 (1942, $3,240,451); com p en satio n fro m F e d e ra l g o v ern m en t u n d e r S u g a r A c t of 1937, a s ex ten d ed , $487,085 (1942, $572,261); to ta l, $3,155,874; 1942. $3,865,722. Includes profit on sugar of prior crop: 1943, $301,743; 1942, $4,099. Balance Sheet (Fajardo Sugar Growers' Assn.) as o f J u ly 31 (as re p o rte d t o SEC): A ssets: 1943 1942 C a s h ____________ $1,000 $ 1,000 Raw sugar . . . . . . . 2,440,560 2,424.826 S upplies ________ 84,756 29,887 Trade acc. rec. . . Misc. acc. r e c . __ 41,428 35.846 Federal subsidy- 487,085 572,261 planted & grow ing can e --____ 479,245 996,381 Total currentDue fr. Loiza Sug. O ther investm ents Q]Fix. assets, cost D e p re c ia tio n ____ (^ B a la n c e _____ (^Livestock & eq. Deferred charges. O th er a s s e t s ____ $3,597,743 103,944 88,889 4,044.459 500,012 3,544,447 456,492 21,749 33,672 $4,060,201 104,994 4,121.853 417.002 3,644,851 514,531 76.666 33,672 T o tal _______ 'L ia b ilitie s: Accounts payable A c c r u a ls ________ Inc. tax wthld. . . . Inc. tax curr. yr.. O ther current . . . $7,846,935 $32,378 62,532 105,155 13,539 .$8,434,914 $66,825 14,474 66.641 22,530 Officers Jo h n Bass, President Total current. R. A. Veve, V ice-President & G en. M gr. IfiDue to affil. cos. J. B. W amock, Vice-President M tge. d u e 1947 ._ D. M. K eiser, V ice-President Res. for conting.. T h eo d o re M u tter, S e c re ta ry & T re a su re r Cap. sh ares ($100) M. N . D u n n ett, Asst. Sec. & Asst. T r e a s u re r, E arn ed su rp lu s __ $213,605 4,127,340 29,722 204,607 302,000 2,969,661 $170,470 4,852,260 29.722 204.607 302,000 2,875,855 D irectors John Bass, New York A. R. Cochran, Canovanas, F. R. H. E H ennem an, Newr York W. H. Hoodless. Philadelphia W. D. Horne, Beach Creek, Pa. D. M. Keiser, New York. Theodore M utter, New York Jaim e Sifre, Jr., San Juan, P. R. Robert W. Atkins, New York R. A. Veve, Fajardo, P. R. J. B. W arnock, New York T otal .............. $7,846,935 $8,434,914 EBook value of land included in fixed assets: 1943, $3.202,907; 1942, $3,266,104. E A fte r d epreciation: 1943, $242,002; 1942, $219,717. [^Indebtedness to F ajard o Sugar Co. of P orto Rico, Fajardo D evelopm ent Co. as fol lows on J u ly 31, 1943: M ortgages (m atu rin g Dec. 31, 1942--extension p en d in g ), $554,100; loans, $239,177; open accounts, $3,334,063; to tal, $4,127,340. SA fJM ttftG STATISTICS * r*oducdon: \ __ . . . _ it fw sr-d ito n s )_________11. *' - ^ cf working d a y s_______ - (Eii0 lb. bags. O PERA TIN G STATISTICS, FISCAL YEARS ENDED JULY 31 (Including Loiza Sugar Co.) 1943 1942 1941 1940 1939 94,497 112.833 90.388 98 885 84.644 03755,978 0)848 065 N ot ?iated [637,966 5)546,094 810,287 1,017,165 7S0.742 900,423 706,911 122 158 123 126 100 1938 106,643 E6SS.018 873.,141 124 1937 98.C35 E632.43S 803,339 122