Document RpvaDbLVg4vrX08p7kb3wwoX7

FILE NAME: GATX (GX) DATE: 1957 DOC#: GX007 DOCUMENT DESCRIPTION: Annual Report THM3U33 Z S 6 I UOd 1 0 d ] 1 V fl N N V sst i X d'ffidi FU LLER COMPANY, our wholly-owned subsidiary, had another excellent year. As was expected, new cem ent plant installations dropped from the peak of the prior year and resulted in some lesser vol um e and profit. O ther of its product lines continued to expand in m any fields. Building additions and new tooling for the Catasauqua and M anheim, Pennsylvania plants w ere completed during the year. To handle increased activities on the Pacific Coast, the Compton, California plant is adding to plant build ings and installing m ore new tooling. In mid-1957 the Dracco Corporation, w ith a well equipped plant and highly skilled organization, located at Cleveland, Ohio, was acquired. D racco is an old and w ell established firm, specializing in the dust and fum e collecting fields. This acquisition will enable F u lle r to en ter a new field w ith equipm ent allied to its existing product lines and sales. Pollution of air is becoming a serious problem in this na tion. Therefore, we believe dust and fum e collecting equipm ent have great potential for growth. P urchase of all the outstanding shares of stock of Societe E. Constantin S.A., Paris, France, w as com pleted e a rly in th e year. This com pany's m o d e m m an u fa ctu rin g p la n t in F ra n c e w ill m aterially aid in th e world-w ide sales and distribution of F uller products. P L A T E AND W ELD IN G -- F I K1iD ER E C T IO N D IV IS IO N S enjoyed th e ir m ost successful y ear, bo th in volum e and profit, due in large p a r t to th e p etro le u m in d u stry 's dem and for cone an d floating roof storage tanks. Assisting the fine showing w ere increased sales of pressure vessels, especially of the double-walled type for liquid oxygen storage, as well as continuing orders for the Wiggins D ry Seal P ressure Gasholder. The superiority of the latter for storage of chemical and industrial gases is evidenced by the fact that, for the past several years, over 95% of all orders placed for gasholders have been for Wiggins type. W ith an excellent backlog of orders these divisions should experience a good y e a r in 1958, despite an expected decline in capital ex p e n d itu res b y th e petroleum in d u s try an d narrow ing of profit m argins on tankage due to increased labor costs. The expected demand for storage - and transport equipm ent for use in the cryogenic (liquefying of gases at very low tem peratures) field and other pressure vessels, including gasholders, could take up any slack th at m ight be experienced in th e petro leu m field. Also, in line w ith our policy of providing specialized fabrication for our plants, the G reer M arine Corporation, Freeport, L. I., was acquired. The purchase of G reer M arine brought us prim arily special ized engineering talent and patents covering a hydraulically operated hatch cover for cargo ships. A l though relatively new, the hydraulically operated hatch covers are becoming increasingly favored by ship operators due to th eir efficiency and economy of operation. THE PROCESS EQUIPMENT DIVISIONS had another profitable year. As a result of research and developm ent two new products have good prospects for expanding sales of the Louisville D ryer D ivi sion. The first Fluidized Bed D ryer utilizing the principle of suspending the solid to be dried in a rising column of air was sold to a m ajor chemical company. Also, a d ry er using the design of the steam tube type, but sealed to perm it its use as a vacuum dryer or reactor, had its initial acceptance. Both of these new types of dryers offer considerable operating advantage to the chemical industry. The T urbo-M ixer Division should m ake a b e tte r show ing in 1958 as a re su lt of increasing dem and for its R otating Disc Column, used for complex liquid-liquid, liquid-solid separation. PLA STIC S DIV ISION had a poor year due to reduced volum e in the appliance field and in d u stry wide destructive com petitive pricing. The D ivision entered 1957 w ith the best order book of m olds in its history. Norm ally molds are the m easure of sales volum e, yet throughout the year orders fo r parts from the completed molds w ere lacking in quantity. In an all-out effort to bring the Division to a profit able basis d u rin g 1958, an intensive research program to develop new products fo r diversified fields w as carried on. P art of this program was the developm ent of an injection process, m aterial, and m olds to produce thin-w all containers and lids for packaging of foods. The first of a series of varying sizes are now being successfully produced. A contract has been negotiated for m arketing through one of the lar gest container companies. Also developed and in successful production using Fiberglas base m aterial are 3 portable television cabinets, automobile, m issile and airplane components. A nother new item is an ex truded w all panel duplicating ra re woods w hich should be in production in mid-1958. Since volum e in a m easure is dependent on the consum er goods field, it is difficult to forecast the prospects of this D ivi sion for th e y e a r 1958. H ow ever, w ith the p ro d u c ts of o u r re se a rc h and developm ent, and w ith im p ro v e m ent in volum e of parts for consum er goods, we have every hope th at the Plastics Division will again be an incom e p ro d u cer som e tim e d u rin g 1958. PARKER-KALON DIV ISION had a good year m arked by higher profit on a slightly lower volum e, indicating the efficiencies in the new Clifton, N. J. plant. To com bat an intense competitive situation in the screw fastener industry, emphasis was placed on developm ent of new products. Late in the year ex clusive rights were acquired to m anufacture and sell the patented Jet-Setter, a tool used to autom ate the driving of screws by pneum atically setting the screw at the bit, thereby increasing driving speed and effecting extensive labor savings in production line assemblies. O ther new developm ents w ith prom ise are the W est recess, a crossed recess screw head; a new type set screw; nyltite staps and an im proved weld screw. Since the m etal w orking industries served by P arker-K alon have been operating at a slow er rate, th e outlook is for con tin u ed strongly com petitive conditions, w hich P a rk e r-K a lo n 's dealer o rgan i zation was designed to w eather. KANIGEN chemical nickel plating process had steady increase in the volume of work perform ed in the in d u strial field, as a re su lt of product acceptance after trial test runs and low ering of costs th ro u g h more efficient production m ethods. This, coupled w ith new and repeat orders from the atomic energy and defense industries, brought profitable results. Custom er reports on the first trial Kanigen-lined tank cars and other large vessels, after one year of use, have been very favorable and orders have been re ceived for over one hundred lined cars. R oyalty income from ou r overseas licensees was not up to ex pectations owing to the delays in establishing large scale plating plants abroad. However, plating opera tions have recently commenced in Japan and France. W ith growing product acceptance in the industrial field, and, im portantly, fo r use in our own fabricated types of equipm ent, K anigen is displaying th e kind of grow th in new and specialized applications which was originally foreseen and which augurs w ell for the years ahead. E X P O R T D IV IS IO N expanded its overseas activities d u rin g 1957. A lthough d irec t sales fro m o u r Am erican plants showed slight increase over the previous year, income from royalties, engineering fees and dividends advanced considerably. Since m ost of our products are of the heavy type, your Com pany adopted a policy in 1946 of appointing licensees in the principal m anufacturing and steel producing countries of the w orld in order to avoid high shipping costs and foreign im port duties. That this policy was a sound one is evidenced by the fact th at earnings from engineering fees and royalties have shown steady progress, whereas, due to trade and exchange restrictions, insufficient American heavy steel plate and other causes, direct sales throughout the world have been greatly restricted or prohibited. We have obtained good income from overseas activities, including income from m any countries w here paym ent in dollars for capital equipment has been greatly restricted. A t the present tim e your Com pany has thirty-seven exclusive licensees throughout the free world. Moreover, your Company also has profitable investm ents in Canada, Mexico, Brazil, England and France. W ith the advent of the so-called "common m arket" in C ontinental Europe, y o u r m anagem ent feels that the Com pany is in a flexible position through its licensees and affiliates to gain an increasing share of the business for its products in that im portant area. RESEARCH AND DEVELOPMENT DEPARTM ENT continues its invaluable assistance to our sales, engineering and operating departm ents. T he y e a r 1957 w as one of heavy expenditure and activity. C ertain of our developm ent w ork came to a successful conclusion, as previously mentioned. A n inten sified program in each division of the Com pany is now in effect. In the wide range of our activities -- railroad cars, pneum atic conveying, drying, dew atering, cooling, heat recuperating, mixing, separation, corrosion protection, chemical plating, conservation of gases and volatile liquids, dust and fum e collect ing, compressors, blowers and industrial fans--the opportunity is always present to convert problem s into improvem ents or invention for future value to the Company. 4 GENERAI AMERICAN TRANSPORTATION CORPORATION PRINTED IN U.S.A. SERVICES AND PRODUCTS GE G D i sc GENERAL AMERICAN TRANSPORTATION CORPORATION GENERAL OFFICES: 135 SOUTH LASALLE STREET, CHICAGO 90, ILLINOIS Designers, builders and operators of railroad freight cars, fabricators and welders of all types of metals and alloys. Manufacturers of process equipment and screw fastening devices, molders of plastics, chemical nickel platers, and operators of public tank storage terminals. U ntil the technique of leasing railroad cars was developed, m any products note bought, sold and used in bulk were high in price, low in dem and, short in supply --because m any types of freight cars were not readily available Providing a comprehensive rail transportation service on a rental basis for industry is a major General Am erican contribution to American business. Today there are thousands of products which cannot be shipped in standard railroad cars. This is particularly true of liquid products shipped in bulk, both the railroads--and government bodies regulating the railroads--have long recognized that it would not be practical for individual roads to supply each of the hundreds of types of special ized cars in the quantity required by shippers for their products. Nor would it be practical for each shipper to build, operate and maintain his own special types of cars. An individual manufacturer attempting to own and operate his own cars might easily find that operating railroad cars took more lime, effort and capital than bis original business, lie would have to invest large capital sums in rolling stock. He would have to set up special departments to keep records on car movements and amortization. He would have to build or obtain repair facilities to keep his cars in service. And, at least part of the time, his expensive rolling stock would stand idle and unproductive on sidings. General American's ear leasing service thus enables the manufacturer to pul his full efforts into his own business, and lease his cars from a company who for more than 50 years has built and operated specialized cars in support of the railroads. General American designs and builds cars to exact specifications for hundreds of diverse needs. It operates the cars, keeps track of them, knows where they are and keeps them moving. Cars are repaired and maintained in General American's own shops throughout the country . . . and it also has repair facilities on customers' property in many instances. Research and engineering serv ices are so closely allied with the ever-changing shipping needs of industry that the design and manufacture of new and better cars is a constant, integral part of our operation. Routing its ears from one part of the country to another, from one railroad to another, from the service of one shipper to another, from one sea sonal service to another, General American helps make freight transportation more efficient and more economical for all. Similar principles of business economics led to the development of the General American Tank Storage Terminals. Companies needed to store, mix, blend and sell liquids in bulk at various ports. If they were forced to build the necessary facilities, many would be unwilling to risk their capital. In five major distributing centers of the United Stales, these General American terminals limelion as warehouses for bulk liquids. They provide producers and distributors with storage tank space, blending facilities, the use of drumming and barreling equipment and supervision. In this way, many firms are enabled to have marketing j flexibility without capital investment on their part. ' 12 (m end service and specialized lank cars to carry liquids in bulk \I I The GATX fled of tank cars--over 47,000-- comprises more than 75% of all the cars owned Iy General American, building and operating lank General American's tank cars are each de signed to meet specific requirements for various liquids. For liquids that must be kept at rela cars is a highly specialized business, and every tank car is in reality a "specialized" car, even though certain types may be mass-produced in a standardized design. To illustrate how exact arc tively constant temperatures in transit, the tanks are insulated with glass wool or cork. Some liquids must be shipped in insulated tanks heated by cither interior or exterior steam coils. Tanks are the requirements for safe shipping of hundreds of built to pressure requirements ranging from 35 kinds of bulk liquids, there are more than 200 pounds to 500 pounds per square inch. specialized types of cars in the GATX tank car For many commodities, tanks of cars are built fleet! The railroads have long recognized that the operation and maintenance of tank cars is highly of various metals other than steel. In some cases this is done to prevent corrosive destruction of the complicated; that the cars must be tailored to the commodities transported, thus the shippers' needs tank by the commodity. In others, to protect products which arc contaminated by contact can best be met by private ownership. with steel. |i The <7/1T X fleet--designed, built and operated j by General Am erican--is serviced and ii i` m aintained in the com pany's own. shops-- !. i by men who arc skilled in the task of keepiny the. cars rolliny ;ii '.`.I A. 4 V' i i