Document LpxNkMx9DdQRjwQDqeJb8M0eb

FILE NAME Manville JMA DATE 1930 Jan 8 DOC JMA227 DOCUMENT DESCRIPTION Meeting Minutes - M Executive Committee File Name M Executive Committee Meeting Jan. 8/1930 Scanned ? yes Source JMA B589 Start Year 1930 1930 Stop Year 1930 . Contents minutes Notes Dr. Lanza - no reason to worry AGENDA FOR EXECUTIVE COMMITTEE MEETING I. Minutes of previous meeting II W. R. Seigle a Certainteed b Newall d Celite competition d Appropriation of 60,000 to increase Magnesia capacity at Waukegan e Shawinigan Power Contract III E. M. Voorhees a Central Insulation and Supply Company - Approval to purchase b Mr. Bartow's signature on Annual Report to the State of Nebraska . c Authority for discontinuance of our Treasurer's account in the First National Bank of Minneapolis d Advertising and Sales Promotion Program for 1930 e Manville Sales Corporation f Asbestosis g) European Trip h Cash and Cash Position Forecast i Orders and Sales 5 Authority for execution of Acoustical Contract at Cincinnati IV General Business Conditions MINUTES Of EXECUTIVE COMMITTEE MEETING Held at 25 Wall Street Wednesday Jan. 8th at 3:30 P.M. Present Messrs Bartow Seigle Whitney Voorhees Secy As the Minutes of the last Executive Committee Meeting December 13th were read at the Directors Meeting held 16th no approval was necessary held on December II W. R. Seigle a Certainteed While we have no detailed figures available showing the sales by classes of commodities itwas thought that if we could got this company at a bargain price something not higher than the present market quotations for its bonds preferred stock and thorough common stock i.e. 55 45 and 13 thatthat there is a possibility of its proving attractive after a investigation They have plants and properties at thirty different locations throughout the United States Their roofing business and gypsum would undoubtedly tie in very well with our distribution Mr. Bartow stated that their contact had been through two of their directors who are interested in selling us control It was de- cided we were not interested in buying control and that we want all the assets and liabilities or none Mr. Whitney thought it would be desirable to spend 15,000 to 25,000 for a financial and business investigation to be handled by both Lybrand Ross Bros. & Montgomery and Sanderson & Porter Manville to have a representative working as an employee of each firm while obtain this investigation was in progress was not desirable for us to Mr. Whitney stated that it an option before making an investigation but should purely proceed on the basis of taking a look at it before making any proposition whatever due to the character of the management of that company Mr. Bartow stated he would proceed on this basis and see if this company was willing for us to make the investigation Mr. Bartow felt that we ought to be able to obtain this company at a lower cost figure than the present market value Mr. Whitney stated that there were certain parts of the business for example floor covering which might not tie in with operations that would be desirable to transfer or sell to Congoleum and there might possibly be other similar operations which would not tie in with us that it would be desirable to dispose of Mr. Bartow is to advise us after his contact with the two directors b Newall Mr. Bartow stated that they had received a cable from their London office stating that this company was willing to sell us 2,500,000 shares for control They would not divulge the price until the time that we showed actual interest or had a personal representative visit them in England Mr. Whitney said that it appeared advisable not to let them give us a price at this time as we knew nothing about their operations and he suggested that we prepare a questionnaire of the infor- mation that we desire furnished us this questionnaire to be and sent to the Newall Co. them the information compiled by c Celite Competition The potential competition of the Decalite Company was discussed Mr. Bartow stated that he thought we were buying monopoly and was very much surprised to hear there was competition Mr. Seigle explained that there were diatomaceous earth deposits all over the world but it was was a question of quality and character of each deposit and although there were none at the present time to compare with Celite there may be developed at any time a deposit of a similar quality and though small in size of commercial volume It was explained that our policy was to get the business and both Mr. Whitney and Mr. Bartow agreed on this policy even insofaras it pertains to the Fleishman Company We are at present from four to six weeks behind at all factories manufacturing this commodity Itis very desirable that we inmediately proceed with the expenditure of 60,000 to increase our Waukegan capacity from 15 to 20 Approved e Shawinigan Power Contract . Mr. Seigle explained that the five year contract provides for a price of about .005 per kilowatt as compared to a price of .0045 on the ten year basis and that it was our recommendation as there was a potential saving of approximately 1000 per month that we sign the ten year contract Mr. Whitney stated that he objected very much to the original twenty year contract and that he would endeavor to obtain a five year contract at the ten year price if possible It was explained that the contract had been traded for six months and this was the best we could do and therefore approva wals given to proceed on the basis of the ten year contract III E. M. Voorhees a Central Insulating & Supply Compeny - Approval to purchase Our purpose in buying this company was explained as being to eliminate a contractor that would not prove satisfactory in our Cleveland District thus permitting the Dutney Corp. to operate immediately therein The approximate basis on which approval was given was first the purchase of the net worth as of December 51st 1929 subject to check on our part representing approximately 50,000 Second 15 on Contracts in Process approximating 90,000 representing an expenditure of 15,500 Third give the Central Insulating & Supply Co. 10 on the labor cost of the Cleveland Terminal job Fourth a compromise amount of 565 Approximate total cost 50,063 The Dutney Corporation is to take over all contracts as much of the inventories as they require as well as equipment furniture and fixtures and it was estimated that the total maximum actual loss sustained on this transaction would be 5000 to be offset by additional gross profit with materials to be supplied by us on contracts uncompleted between 10,000 and 15,000 The Treasurer was authorized to do all the acts necessary in completing this deal b Mr. Bartow's signature on Annual Report to the State of Nebraska Signature obtained and report returned to Mr. Sager c Authority for discontinuance of our Treasurer's account in the First National Bank of Minneapolis Authority granted d Advertising Copies of our Building Material and Brake Lining booklets for distributors were shown to Messrs Whitney and Bartow and it was explained that our Sales Promotion Program for the year 1930 was complete and out approximately three months earlier than last year e It was explained that the organization of the Manville Sales Corporation proceeded very smoothly and that the manu- facturing corporation is being held up pending Mr. Wardwell's legal opinioonn doing business in the State of Illinois It was also stated that the Asbestos Wood & Shingle dissolution was being speedily pushed to the conclusion f Asbestosis The survey of our factories and mines made by Dr. Lanza of the Metropolitan Life was stated as being nearly completed and the preliminary report from Dr. Lanza states that he sees no reason ; for us to worry about the situation Our attorneys are working with Judge Clark on the ambulance chasing tactics of the attorney for the plaintiffs and we expect a report shortly on this g Europeen Trip . The Treasurer explained that we have nearly a million dollar investment in Europe at the present time and rather than take a three weeks vacation in the South it was most desirable for him to survey our internal operations in Europe He expects to leave Feb. 22nd and return just before the Annual Meeting which is to be held March 28th h Cash and Cash Position Forecast Our cash on December 31st in banks subject to draft exclusive of Imprest Funds was 2,118,000 approximately 400,000 less than the forecast which difference was due to poor collections from our railroad accounts as well as a loss of collection momentum in the Western Division due to splitting the Accounts Receivable from Division headquarters to District offices We can see no reason why this uncollected cash will not accrue in the month of January Cash Position Forecast was presented for January i Orders and Sales ; . The orders for the month of December were approximately the same as for the month of December last year and although final billed sales for the year are not complete due to the fact that at the year end the billing is held open to include all shipments the preliminary figures show that there will be a % or 2 in- crease in billed sales for the month of December Authority granted IV General Business Conditions Mr. Bartow stated that business was nothing to be worried about rather spotty but saw