Document JJ7K4ydY2gD88Z03V9ok0yLpB

$ M. Th e Sh e r w in -Wil l ia ms Co mp a n y GfiarEndingAugust3/, 7925 / 0007-SWP-000005466 3RS 0007-SWP-000005467 foreword A Few Points of Interest to Our Stockholders: The record of the Stockholders of this Company makes it apparent that their holdings are for mvestment purposes prin cipally. and with that kind of ownership in view, we feel that with our Annual Statements published herein, those of our Stockholders who are not familiar with the properties, opera tion and development of the Company, will perhaps be interest ed in a few brief sketches and pictures. Your money invested with us admits of an appeal to every Stockholder of our Common or Preferred Issues to interest them selves in our business, and themselves using and encouraging others to use our products, and recommending them to their friends who may own buildings or properties of any kind. We have agencies in your community, and district offices and warehouses as a hub in rendering service to agencies and large consumers of all kinds in every section of the country, and any and all inquiries will have the prompt attention they deserve. We mist that our action will be accepted in the spirit in which it is tendered, and assure you your co-operation will be thoroughly appreciated and will add to the strength and value cf your security, proving a pleasure to the employees and proofable to the Company as a whole. /% KJ 0007-SWP-000005468 Th e Sh e r w in -Wil l ia ms Co Directors W. B. Albright J. C. Beardslee W. H. Corangham Geo. A. Martin Z. E. Martin E. M. Richardson Hu t u Creech S. P. Fenn H. D. Whittlesey & M. Williams L W. Wolcott Officers Walter H. Cotangham, Chairman of the Beard Geo. A. Martin, President S. P. Penn, Vice President and Secretary H. D. Whittlesey. Vice President L H. Schroeder, Treasurer H. J. Douglas, Asst. Secretary and Comptroller Transfer Agent* Cleveland Trust Co. Central Union Trust Co- Cleveland, O. New York, N. Y. Registrars Union Trust Co. Empire Trust Co. Cleveland, O. New York. N. Y. Auditors Ernst eP Ernst -K a )~ 0007 -SVJP- 000005469 J uJaS| Th e Sh erCOwMiMn -A,WHMiTl Ml Iiams Co . - - TO THE STOCKHOLDERS: Herewith is the Balance Sheet of the Company for the fEisrcnasltyVeaErrennsdt,intoggAeuthgeurswt i3th:,a1S92ta5t,edmuelyntcoefrCtifoiendsobliydaMteedssIrns. come and an Analysis of the Consolidated Surplus Account. Balance Sheetshows the Companyas having on August 31,1937, Current Assets amounting to $20,907,293.61, and Total Assetsof $39,384,198.83,asagainst a Total Indebted, ness of $3^022,50847,including Liability for Federal Taxes. The sales of the Company for the year just closed ambunted to $<5,166,580.87, an increase of $5,222,76949, othros1e0o4%f thoevUernittheed SptraetceesdCinogmypeaanri.es o(nTlhye.)se figures are Net Profit for the year on alloperations, after deducting $$15,,102906,,5648164f8o.r SPelattnintgDupeparreedsaetrivoenoafn$6d15M,0a0in0tefonraFnecede, raisl Taxes, there is left a final Net Profit of $4481,68648. The net amount carried to Surplus after paying $2469,617.38 in dividends to the Preferred and Common Stockholders dunng the year, is $1.962,060.10. making the SurplusoftheCompany $7464,044.03 asofAugust31,1925. -C 5 >- i 0007-SWP-0000054"70 1i i & Our Inventory has been taken with the usual care, and under ehe closest observation and control of the Comp troller of the Company, and has been priced on the basis of cost or market, whichever proved to be the lower. The plants and property of the Company have been maintained at a high standard, and are in most excellent condition, and all machinery and equipment as practical as is profitable to keep them. i To ehe Organization, composed of the rank and file I in the operating end of the Institution, is due the i credit of carrying through successfully the policy of the Institution, and to them through this letter I take the liberty, on behalf of the Stockholders and the writer in person, of expressing appreciation of its strength and loyalty, character, efforts and cooperation, which have been so freely and liberally given this year. From the viewpoint of the Management at this time, we fed justified in stating our belief that the business for the next year will be equally as good as it was the past, with a determination to make it better if posable. Respectfully submitted. iI 2$ CLEVELAND OHIO OCTOBER 17. >9M -*c o >- A? 0007-SWP-000005471 j f Consolidated Income Statement For the Fiscal Year ended . \tiijn.Hi Trading Profit Interest, dividends from investments, and other miscel laneous income Deductions: Interest paid .... Plant depredation and maintenance Federal, taxes Final Nee Profit S 63.3:3.74 i.ise. 54-oo 615.000.00 St.oss.176 so 3tS.j65.os S6.sS0.t41.aa 1.79S.S54.74 S4~1S1.6S6.4S Analysis of Consolidated Surplus Account For the Fiscal Year ended August 31. 19'25 Surplus August 31.1904 ........................................$5,501,974-03 Add--Net profit for the year ended August 31, tost 4.4S1.636.4S Deduct-- Dividends paid on Preferred stock - - S 9S5.500.cc Dividends paid on Common stock - - 1.4S6.it-: jS Premium in Preferred Stock retirement - to.ooo.co S0.9S3.661.4i 1.519.617.38 Surplus August 31. 1915 .... 5-,464.044 03 / * * > 0007-SWP-000005472 Consolidated \ Th e SHERwiN-WiLum At the Clou of Busineu, Current-- Assets Caah - * - - - * - * St.9TO.636.j9 U. S. Liberty Bond* snd ocher Marketable Securities S8.163.6f Notes and Trade Aecepeutcea Receivable 356.637.S4 Accounts Receivable 6.387.408.01 Merchandise Inventory .........................................11,134,958.73 $30,907,393.61 Investments in Associated Companies, etc. 1,817,848.85 Other Assets: Employees* Loans, Miscellaneous Accounts Receivable, ett, ................................................................................. 156^84.13 Plants and Equipment--Deprecated Value.........................................15,563,609.17 Patents and Trade-Marks--Valued at $1.00 each on books * it a.00 Deferred-- Advertising Stock, Stationery, etc. Prepaid Insurance, etc. 634.487.39 105,363.68 839,751.07 (MOTS A)n* Cw p mp wm * $39,384,198^3 KtM AmM1II. ltUM Iims f niN mI Mmh VE HEREBY CERTIFY, that we have stated ihc|tncnl beaks of account and teeord perainmf to the Assets and Uhlian of The Shcrwtn-WtUunu Company and Subsidiaries. as of da* dose of business. Aufust ji. 1911. and that, in our opinion, tubjcct to passible adjustment upon determination of die anal lability for Federal Taxes, the above Belarus Sheet u drv.m up ao as to correctly art forth the ananeul position of the Companies at the date named. Merchandise Inventories arc represented upon the -{ S >- 0007-SWP-000005473 1 I ] ) \ i i i \ t i tii t i t i i t Proportional Sales A comparative study of Sherwin-Wil-' liams Company sales figures by yean for the put thirty years, u pictured herewith, gives one a clear idea of the steady progress made from year to year. There are, of course, some variations such as the abnormal vesu of ipso, but these are few and the general progress is evident. The acquisition of subsidiaries accounts for the three or four largest increases shown on the taka chart, the lines representing, sales Spots for the organiation as a whole. The xpaj tine represents a volume of sales amounting to )yy,i66.?8o. ~i i i t i * ssi ill n m ? 0 1 i ym. 0007-SWP-000005475 ( The Campaign Spirit I j The sales record* shown or. the opposite page are indicative ot a sales organisation I. imbued with, the campaign spirit "records are only made to be beaten." Each year estimates arc set. Each year, with few exceptions, the representatives have made the mark, often exceeding it by ample margins. I Competitions and contests spur them on. 1 To be "Top Notcher"mean* more than the prizes involved. It carries the distinction ot being a leader and coming out on top of a large field of spirited contestants. Trophies and emblems accompany the meh prizes. They mark the winners among District Managers, Division Managers, and all groups of Representatives. The campaign spirit permeates the organisation. It is the lifeblood of sales results. We quote here from an editorial entitled "The Cam* paign Idea" written by Mr. Walter H. Coccingham. our Chairman of the Board, in 1915 at the beginning of the Jubilee Campaign. "I am a great believer m campaigns. i believe they arc good for us a* individual*, a* well u for tbe Company. "The ides behind tbe campaign it to fit an aim ami then ttnve to reach it. f "If we have no definite Company aim, the chance* art we will have no very well defined individual aim. If we have neither a Company nor an individual atm, we are wire to Unit. Aim demands concentration ami when persisted m. demands striving. "We can only grow upwards by stnvrng. We grow downwards when we ccaic to ttnve The reward of timing is progress. The penalty of drifting it failure." 1 ill)* 0007-SWP-000005476 ] From Humble Beginnings It u imemnng to now the contrail between the picture* on thu page and the lateat aunuiactunnf ! facihnca ibnwn on the ccnttr pageat Frew cheat mil beginoingi the eowpenp ha* (town. j The picture u die tipper right ahow* the few piuptrty of the Company on old Superior Street m C3eve* : land in 1866. where Mr. Henry A. Sherwin aared in buatnew and waa tawr joined by Mr. i P. WUiuaa. r The upper left hand pteture ihowa the few aanufaetunng property on the Cuyihoga River. Cleveland. | tSyj. The lows picture ihowa the tart of the preterit larfc ptoperaei at Kcnnnfton. lUinou. juit * with of Quragn. it having been the ortfutal Calumet. Pause Company and t* the budding wound which ail of the tear growth haa developed ainec tSStejr [ A* the repuanon of the home began to apeead. thua.cmting addioonal demand for ShcrwiiyWiltiaa* Product*, diwnbuong and manufacturing feotinea had to be etptnded rapidly. It wa* never the intcnaon t of the founden of thu buameaa or their nrretmra to keep the buuneaa wall. but rather a expand it and make eonaanc pragma, it ihould be tated. however, that their policy waa never to permit eaparuion at the capcnae of quality and quality hat bten the iorrmait word in the orgaraatson'i polier T'*Jd^d*t X% --{ l-'> 0007-SWP-000005477 I I I I Sherwin-WiUuau replete with hitconal matter* wl racorJ* or (rcat'interru. A lew of that are thown on ehu pap. noable among which are the fuit can or iWP rrui* in life end Mr. Sherenn'i ort formula book, October it. t4*j. I a?-Cu J- I 0007-SWP-000005478 Long Service Among the dung* The Shcrartn-Williamt Company i moat proud or > the long ervicr ot u Urge a number at its employee*. Upon completion ot' twenty-eve yean' cononuoua aervicc anv employee ta entitled to the above certsicatc and a handaome gold watch, together with membcrahip tn the long aervice group, now numbering ipprotitnatcly acvency employtea in the parent company alone. On the next page we ahow a few picture* of aome of the long aervtcc group. Among the empio-.cea holding the longitat record* of aervicc ta Mr. S. P. Frnn. who came with Mr. Shcrwm in tiro aa a book keeper and ha* Been active ever uncr. He ta Vice Preadcm and' Secretary of the Company today in hia Sfcy-ifth you of aenvt arrnce with the company. Mr. Phil Stayer, one of the feat aukera of SWP. came with the company in t.4-*. completed hit attv yean of active tcrviee in iota- Mr: John C. Weber. General Scdckkecpcr. came with the company in i.S-o and will vn Sr readv 'nr hit ifoath anmveraarv of connnuoua aervice. The aame appiiea to Mr. Wdliam Paulin. e levator man m Cave land, who came in il" and will icon make the fourth membrr ot the btrv-vear group. . Mr. A. k. Ruwell came with the Company in 1SS0 and ;a ittll active in the Manufacturing Department at Cleveland. Mr. J C. Beardalec. one or die Directori ot' the Company. 'tatted tn the Manufacturing Department in l.Hho and u at pteaent Chairman ot the Manufacturing Committee, alter torn- nve veari ot tervwr Mr. W. B. Aibnght. Director of the Company, came in tStli and haa Seen actively connected with the Sale* Department throughout haa forty nan ut wnwe. --(.4 >* 0007-SWP-000005479 I Loyalty Mr. H. 0. Wtuttkacy. Vice Prcaidenf and Managing Director at Sain, came in ill*? and haa been active in all phaaea of aaka activity throughout thcat thirty-eight ycara. j Mr. E. M. Richardaon. New York, a Duector. ease tn tSSS and haa been active in the taica end of the bunneai ter there thirty-aeven yata. A tuouairy of the wmet record of the parent company would ihow-- a m the to-year group t h i the ao-yew group t h i the 41-yew group i h i the 4Vy*ar group a h i the 41-year group t h i the 41-vcar group a in the ao-year group i h i the uryew group 6 m the j?-yev group t in the ^6-veil group 1 h i the jr-year group l ui the )4-ycw group A h i the ij-year group A in the ji-vcat group : in the Ji-yeir group a in the je-vear group > m the livear group t in the s? year group 6 in the aO-ycar group * in the at vear group reprcamting a tool of ioat *o employeei lervmg twenty-eve year* or over. There n i vetv iatgc m.--Ser o< etrpioveei ranging Iron twenty ti twenty Sir vrari -cnicc anJ on .o u t .. making up guile 4 rrmarkaple irrvvr rrvorj :nr in iniliutnai orgaiiLaitii-r p.aiir.g ru-a great Jcai in 4n with the iwiccaalul perpetuation cl the Cumpanv i ideal* and puiwica ovri u..l a lung period ->5 >- 0007-SWP-000005480 J 0007-SWP-000005481 0007-SWP-000005482 r~ Selling Power So orgamation is any stronger than the ability ai its sales force to furnish the manufacturing department with orders. The above photograph (bows the Sherwm-WiUiama sales force of the parent company only, as it ap peared at the last general ales convention of the company m Chicago. The subsidiaries of the company have their own independent wiling organiaoans and these are nor included in this picture. The com bined ales force of the entire company is upward of Joo representatives. This sales force covers every important section thoroughly and much of our strength lies in the fact that the company's policy has been not simply to wi! to a dealer but to do everthmg possible to help him resell the products to his community. In addnson to calling on dealer trade these representatives call on the manufacturing trade, railroads, marine.accounts, fruit growers, architects, painters, large budding owners, hospitals, schools, uuanioons and practically all classes of trades consuming paints, varnishes, dyes, chemicals. dumMctants. insecticides, cost ar products, etc. ASagre- Srfln \.ra(CVui Cynimika. *jrag Ktih 0007-SWP-000005483 t Attending the aril Sherwin-Williams Convention at Niagara Fall* m toil were onlv mi rerreser.utiv ihd the entire sales force eonauted or eight traveling men at that tune. At various division ?o:-t, and diatrtet points were added, the taka force became larger and larger until today it makes good on the "Cover the Earth" trade mark. Of our prerent aalea force there are nearly forty men whom yearlv sales run in eiceaa of Si tc.jcc each, and eaoie or theae run into the S)eo.ooo group. There men are member* or" what 11 known at "The Hundred Thouaand Dollar Club." >c 8bnin-Iilliam9 Cod* of Principles L S trir on our merit*. . Co be the be*t and largest cancers of the hind in in* world. 3. C* be bread and tibeni aa eretl aa aggremiee in aur police and method*, a. Cb take a pride i*eur inMitnlion. & C* be l**at t* ibe Consent and to each atNr. *. Ca f*ater good fellewehip anaang oureelw*. and to take pleaaart a* well as gnflf ant af aur verb. f. C* atrie* tenetanti* far the impteeeiMnt and adeancantant af the buai* mm and eeretleee. hCaba <enaiderate.*etilt and eeertteea in alt ear dealings within and with* ant the Cempane. t. C* be high tened in eeerething.eeereeahere. I*. ? gteea is hnmeledge and ehararler a* well a* in etjs. IN i w whim tiit wm swrNit* t Mini i mA4i (i . CmIUh iii N$u i s i mu mr . wktdn tNv<ri IN I ------------ !V S-W C.W c>. 0007-SWP-000005484 t Milk and Production to t*7} The Sherwin-Williaaii Company operated one punt mill. Today they operate *79 puu rndli mot of which ue of dm company* own dtagn. Pammaiung ore u put into dm manufacture of all Sherwm-Williasu paint product* and dm < play a very important part, u they grind dm paint ilowly and thoroughly, which give* it it* anal tmoochncu and The mill* arc (imply typical of many other claim* of machinery uacd in our production. Thu produc tion ha* reached dm remarkable ajure of apprommately 16.000 product*, repreaentuij a grand total or i44.oeo.eoo pound*. mi iim n POOOCCf* HOOOCtM OOP j H T7*i 3 LEAD r % WC>) *- * tCIN hurt: ,to**> p<jvr. ---- ,0,n1-i1.0j ;isncnshKitai io ;* i<j5d rconers. 3+4.000.000 u j s M. 20 ) 5? 0007-SWP-000005485 I I I Vtmuk Ftftt. CmM Safeguarding Quality In the making of Varnishes. liquid nonp or the facilities for aging the Oili play a very important part in the ultimate quality at the goods. It cakes capital to age a million gallons or more et liquids such as are represented in some or our various liquid storage rooms. It is (use such precautions, however, as have enabled us to grow from i vamishsre m 1J-5 to t:o varnish ares in soar, manufacturing all kinds and types of the better Varnishes tor home, industrial and all archi tectural uses. 0007-SWP-000005486 I Acreage In order to ounulacture the product* from the "pound up" and control the raw materials at the tourer. The SherwwWilliama Company operate! tea own lead and one minca and ameltcrt. liiuecd oil mill, and other auxiliaries. whim lead and liehoponc planet and other autilianet which supply pigments and liquids to the company's hint and Varnish plana. These factories in turn ship to branch warehouses nearly one hundred in number. The steady expansion through these channels has increased the company's total acreage from one* third of an acre n i*7j to 6to acres in tqtt. --c 5- 0007-SWP-000005487 \Uh4 Owr Ob CWoi# Floor Space To take care of the growing volume of business, it naturally became neeessarv to add to the fleor space from tune to time tor the manufacture and warehousing of the Company's products. The result is that Sherwin-Williams floor space has increased from >000 square feet in ifl?j to t.sci.rn- square :eet in mat 0007-SWP-000005488 ' Ow M rts lank N*, Rm The Human Factor The adaunistraoon and control of cheat vast manufseturmy mb is a Md in itself. \lcn in charfe ' the vanous euncs. mills. taelten. lactones and warehouses ate all men of long cepenence in dieif individual Sclds. The human side has always teen racoynued as beiny vastly maniaportant than the bnek and nomr side. But it is the combination of the human oryantsmn.. plus the physical properties, which makes Mr the ideal ounufactunny success. 1 0007-SWP-000005489 Supervision Several ihmMd toptor**1 nuking up do human factor ui our otfatuaaon arc Htpcrnacit hr awn ot technical tntmac and experience at the head at' our manufacturing department*. Thete men torn tfacmadwca men uirioua coaracmm.it dw top of which it the Board of Operator* at Geveiand. j Canaant tadng and chocking of botcho and nmplot aa well aa a thorough control intern enable the operator* at Chwlind to keep thu orpnuaoon working moothlr and efaendy. 0007-SWP-000005490 I r TW<* Iww Qiy----i. CWifi Science Seance piaytan important pvt m our irjimry. It it only thraufh icance anl the appropriation at Urft turn* at money inwall? Mr tcaarch purpoie* that * concern in du* day and ay cut keep ahead at umun ladcnhtp m iu arid. A ula ibrer could accoaphih little without tcancc and tbO back of it Shtnein WCEon manaua thoroufhly equipped Technical Savior Departments aid tcanarc (than* tana at Cleveland. Detroit. Cheapo, Newark, Oakland and vanautothar aunu&cturmc pouua at ckatgt jure > mennon one atour pomta of loenotc lodenhip. for matinee. we all your mention to the Swr- win-Wfflaa* Waductut. worked out by our Or. C. 0. Halley after eipht yean af march. Thu arhar. thown w the lower tight hand conat.hu an eaperute chaober devued that tc aha one complct* revotuaon every fwenryfaur heutr during which da panel mad a tryorrii in tcrrwinti a an intense Ufht of a "viola Cam ate." pvm* ad ray* which claeiy dnphcaw da an a ny*. and apnyof wawr rvprnmnnfrainfallandinaHy ' checkin*. crackm* and ocher n*ni at failure bttbre they arc viable id the eye. The reaulu obtained t'tom thia machine ate caretutty coeipared with ttpoeurti an our out -at -doora eiporute tenor n we can dcccteune the toe at warm* value afpamta.enanela and varmaha. In daytarweek* thu wadameter thaw* da edccu at wadar which dfywfout uonabniluclar day. Tht panda ue examnad daily and with a ncmicnpi the apenaeraafaie eo detact ^f would he unpombie aabeam dart at eantha or yean actual ourot-dean apautn. Rwu/ahtwt ava-wiMM 2$ -c- > 9> IWiiaiva'wknM a? 0007-SWP-000005491 Research Tkt Mm Wmm f#at Constant research by qualified chemist* and technical men :s on* of :h:nc csrneJ on behind the vtm which miiii tor aptosumt or present products where improvement is possible end the addition or' iww products to meet new needs end conditions. In this respect, the development of Opes Lecquer Finishes has been the direct ,-esult or many years' research, and is an outsunding example at what can be accomplished bv concentration or hifhly specialised scietiairs and well equipped laboratories. The lacquer 8rush lends itactf particularly to targe production work when heretofore much team has been necessary ter drying space and eqtopmens. The quick drying quality or' Opcc has enabled manufacturers u speed up production, to cut down an inventories, to get their products into use sooner and all as much less space dun heretofore. And when them u added to this feature, the already well-proven durability of the product, it a eaty to me how the development of this material has meant much to The SheiwuiWilliams Co. Opcx it. of course, being used in large quart- ' tines tor mushing automo biles, trueka and bus bodies, as lacquer enamels arc fast becoming the standard trash in the mote fn addition, k is factory for use on wood and metal fuflutum. railway cars, architectural metal work, cabtneta, refrigerators, -s well as on a host of other article* such as toys, radiocasts, broom handles, por celain novelties, etc. This development is simply cited is an rumple or what die Sherwm- Williams Research Division is doing sll the tune. New auteruls ate contuntlv being de veloped to meet new con ditions and requirements. . 0007-SWP-000005492 In Foreign Fields ' Oat m fct pkum at a-- C ^MV I leWMM* II R Etfwt 4wtB>--HI Ml * Uf|t MhlM etmtmmto. .AiwritdHifiintvthimn|tM turtle? iIm ilvin mni haw niiinf 1 w i.Smi Ctrtrdw fanfc tn Mffrvhm.** Fcaai dwCfpatt'i Eipart OifaiM m Nmrk, Nt Jtrwt. itopaanu m awk * mm? Uadi mi A *Ve SlnnnayiHN Ndytti wt me wtt --rVr fcr efce Aauuui C--rear ?iu irtiutrl -Tap-- TV sewn* ;wtMuiiwi4 we tape Swmti tV Vmm Jiai nrfuf n* *he* ?AftrjaM ml tW a* rum fifi. It u m r m tan at m dhtw met the aimn iw m m k h w i ,h {treat rV fcett {Mint trrtiaiwt mU r** mil rK w a. ia cvw AaMnfat--dee*. a wau24 V iJraft aaaa wit ptetc 0007-SWP-000005493 * r~ * Covering the Earth la the Hmt imm hM*TWSirWttiM CaipMit m prate* o m %nr tiff* cm et which * the '.erom Mfh Joiv k j m*w on m oaot*. AfUt ^rnm the %c t v *W<Uimu !m nrir 'he SeU mi kftoai m the muhern ontpaa o ,%b mJ one n' the Cmpmy'i a Im$U* wpwowtHiti ah the Yttfcoa raw* fcMUv(y mc w * thM las crMe a wett mffirai. A *-** ml* tarn a mmo H *a Meewo. 9fccrvm*%Tdlui NJerti hem taw* nation the lem end fehcaMOMf o cm mtfi rain, o m* mmutvMfrr inown beet hrau mh v : rhrewehm: ISMiin wt noor ,SherrtViua In thr eorlv 4m j mm the C r tse-gerth wifwirt to Mr, Shemn. ;Luoun< ;t eetn? tr. \tr SMron lomeiufri* rephul. Then t *iU out a cone irat " Time the K*mot Uit tetooe * mlmr w very wh tuntiM *y. eUhmh when Mr. Om %* ForJ Jemned a ta ihot anti ion* wmbamlnnai 0007-SWP-000005494