Document VjVDXK3OOnLJa195kV6Xd0oRZ

FILE NAME: Owens Illinois (OWILL) DATE: 1949 DOC#: OWILL036 DOCUMENT DESCRIPTION: Entry in Moody's Manual of Investments T u -iv o i MOODY'S MANUAL OF INVESTMENTS AMERICAN AND FOREIGN INDUSTRIAL SECURITIES JOHN SHERMAN PORTER, Editor-in-Chief Editorial Board D a n ie l F. Sh e a Arthur W . H errm ann C. W e sley Le e Fr a n k J. P ren d er g a st F r a n k J . St . C l a ir G e o r g e I. B l a ir D a v id M . E l l in w o o d M ax Bru pb a ch er 1949 COPYRIGHT, 1949, BY Moody's Investors Service, N ew York ALL BIGHT! BSSEBVXD MOODY'S INVESTORS SERVICE 6 5 BROADW AY, N EW Y O R K 6, N. Y. PHILADELPHIA BOSTON CHICAGO LOS ANCELES PITTSBURGH SAN FRANCISCO Stock Exchange Bldg. 75 Federal St. 105 W. Adam St. Hollingsworth Bldg. Union Trust Bldg. Ross Bldg. LONDON MOODY'S INVESTORS SERVICE, LTD. OAKLAND PUBLIC LIBRARY OAKLAND. CALIFORNIA 2486 MOODY'S MANUAL OF INVESTMENTS Dividim i Record (in $) (ttOO^ar shares) 1905-09 nil 5.00 , 1915.-- 15.00 Q1916- 50.09 ~1917... 30.00 1918-22 10.00 (Par $100 shares--after 100% stoch dividend) 1923.-- 33.00 ------ -- 8.00 (No par abares) 1926-27 5.00 1928__ v6.00 1929__ 7.00 1930__ 6.00 1931__ 4.00 1932__ 2.50 1933-- 1.50 1934__ 3.75 1935__ 5.00 1936-37 6.00 1938... 5.50 1939__ 6.00 1940-41 7.00 1942-45 6.00 1946... 7.00 1947__ 9.00 1948__ 3.00 (No par shares after 2-for-l split) 1948... 3.50 1949-- 1.75 Plus 25% stock each in 1911 and 1913. Plus 20% stock. Plus 100% stock In 1922. Plus 10% stock in 1924. g|To June 2. ividends payable quarterly Mar. 1, etc., to stock of record about Feb. .9, etc. VOTING RIGHTS--One vote p e r share. At elections of directors, stockholders may vote cumulatively. Consent of two-thirds of each class of stock outstanding Is required for the disposition of all the property. No voluntary dissolution or liquidation is permitted with out the consent of two-thirds of ths number of shares of the entire capital stock, and also of not less than a majority of the number of shares of each class of the capital stock of the company. PREEMPTIVE RIGHTS--Nona. ** LISTED--New York Stock Exchange* TRANSFER AGENT--New York Trust Co.. New York. REGISTRARi--National City Bank. New York. PRICE RANGE-- 1948 1947 1946 C om m on......... 76U-581& 13613-107 151V:r-116 After stock split; before. 154%-119. Employees* Stock Subscription Plan: On April 27 1948, stockholders approved a stock purchase plan providing for an offering of not more than 80,000 common shares during years 1948 to 1957, both inclusive, for subscrip tion by employees and officers at a price not higher than average market price per share during three calendar months preceding month In which allotment is made, nor less than 75% of such average. Company will credit to subscribers' accounts a sum equal to 80% of the subscription price plus dividends paid during the subscription year on number of shares subscribed for, so that subscriber will pay in cash 70% of subscription price less dividends. CANADIAN INGERSOLL-RAND COMPANY, LTD. (Controlled by IngerselLRend Ce) History] Incorporated under laws of Domla Ion of Canada. Business; Manufactures air and gas com* pressors, rock drills, pumps, condensers, pneu matic tools, pulp and paper machinery, gen eral mining, tunneling and quarrying equip* ment. Property: Owns and operates a manufac turing plant at Sherbrooke. Quebec, Canada and maintains sales offices in principal Cana* dlan cities. Subsidiary: Owns entire capital stock of Sherbrooke Pneumatic Tool Co.. Ltd. Officers: D. R. Lowry, Pres.: F. G. Ferrabee, Vice-Pres. and Gen. Mgr.; E. Winslow-Spragge, Wm. Carter, Vice-Pres.; J. G. Campbell, Sec. and Treas. JG . bee. R. L. arpe;nter, Wm. Carter. H. G. La fleur, G. M. Young J. G. Campbell, D. R. Lowry. Annual Meeting: Last Thursday In April. No. of StockholIders: Dec. 31,19443, 28`0. Office; New Birks Bldg., Phillips Square, Montreal, Que., Can. Ineeme Account, i. Operating profit Interest received. Other invest, inc.. Total In c o m e ___ Taxes . . . . . . ____ Net In co m e_____ Dividends paid Surplus for year. Earn, surp., Jan. 1 years ended $1,991,013 27,865 30,000 2,048,878 747,878 1,301,000 146,948 154,052 5,114,450 Dec. 21: 1947 $2,194,188 39,651 21,250 2,255,089 980,660 1,274,429 807.922 466,507 4,704,963 1948 1947 Pr. yr. tax adj. cr 75,315 dr 57,040 Earn, surp., 12-31. 5,343,817 5,114,450 After deprec.: 1948, $181,710; 1947, $165,714. Earnings, years Oper. Profit 1948__ 1,991,013 1947:.. 2,194.188 1946__ 1.289.540 1945__ 1.774.541 1944.. .1,145,611 1943.. .1,402,646 1942__ 1,611,129 1941__ 1,775,032 3940__ Not s ta t 1939.. N. ot s ta t to Dec Net Income 1.301,000 1,274,429 847,981 721,488 764,390 797.860 874,723 958,767 756.497 713,361 31 (in $): Nroo. ofr Earn, Shares on Com. 191.158 6.81 191.158 6.67 189,658 4.47 188.158 3.83 186.678 4.09 190.400 4.19 190.400 4.59 190.400 5.04 190.400 3.97 95,200 7.49 Asset*s: ShMt- - C a s h ........... . Market s e e . __ Accts. rec.. etc. . . Inventories - 1948 $138,508 1,525,750 1,934,163 4,449,135 1IU7 $379/026 1,525.550 1.729.872 4,204,038 Total current Property acct, net Invest, In sub. . . . Post-war tax refd. Deferred charges. $8,047,556 578,170 12,500 178,947 79,105 $7,838,486 701,287 12,500 231.539 116,025 Total . . . . . . . . Liabilities: Accts. pay., e tc .. . Divd. pay. . . . . . . . Res. for faxes . . . . Total current $8,896,278 $1,369,559 434,695 A _ $1,804,254 $8,899.837 $1,126,894 238,948 618,746 $1,984,588 Liabilities (cont'd) Post-war tax ref. Capital stock . . Earned surplus .. 1948 178,947 1,569,260 5.343,817 1947 231,539 1,569,260 5,114,450 Total $8,896,273 $ 8,899.837 Net cu rrent assets $6,243.302 $ 5.853.898 At cost. M arket value: 1948, $1,525,300; 1947, $1,536,706. Raw materials and supplies, at lower of cost or market; manufactured and partially manufactured products at cost 191,158 no par shares. Accounts certified, Price, Waterhouse A Co. Capital Sleek: L Canadian Ingertell-Rand Co, Ltd, stock; no p an AUTHORIZED -- 400,000 shares (increased from 20.000 shares to 100,000 shares in Dec* 1927; subsequently to 200,000 shares and to present amount m Feb., 1940); outstanding. 191,158 shares; no par (changed from $100 par to no par In Dec., 1927, five no oar shares issued for each $100 share; no par shares split 2 for 1 in Feb., 1940). OWNERSHIP--IngersoU-Rand Co. owned 70.08% of outstanding shares on Dec. 31, 1948. DIVIDENDS PAID-- On nopai* shares: 1929___ 0 -- 1930-33 1934__ $3.00 1935___ $5.00 1936-38 $6.00 1939... 7.00 1940___ 4.75 1941___ 4.25 1942__ 4.00 1943.. 3.25 1944-46 24)0 1947__ 3.00 1948.. . 7.25 1949_____ 1.50 40% stock dividend. None reported. To March 31. TRANSFER AGENT AND REGISTRAR--Na- tional T rust Co.. Ltd.. Montreal. Can. OWENS-ILLINOIS c a p it a l s t r u c t u r e CAPITAL STOCK Par Amount Issue Value Outstanding 1. Common .................. ....................... . $12.50 3,056,874 ShS. $12.50 p ar common--after 2 for 1 spllt-up In 1937. GLASS COMPANY Earned p er Sh. Divs. per Sh. 1948 1947 1948 1947 $3.38 $4.58 $3.00 $3.00 Call Price Price Range 1948 1932-48 73V4-47V4 01O3%-38% HISTORY E Incorporated In Ohio, Dec. 13, 1907 as The Owens Bottle Machine Corn., successor to a New Jersey corporation of the same name. In corporated Sept. 3,1903. Charter Is perpetual. Name changed to The Owens Bottle Co. May 1.1919 and to Owens-Illinois Glass Co. Apr. 17, 1929. For subsequent acquisitions to 1933, see Miouuoqd/y'gs 113948 iIndustrial mManual. As of Jan. 31.1933 acquired substantially entire assets and business of O'Neill Machine Co., developing automatic bottle blowing marhinery, using the vacuum process. As of Mar. 31.1933 acquired lain cised op Corp. of America (sec general index) 7% cumulative preferred, subsequently receiving through recapitalization 50.090 common shares for p art of this holding. In May, 1933 pur chased entire assets of Illinois Glass Co. On Dec. 31, 1935 purchased entire assets of Libbey Glass Mfg. Co., Toledo (founded in 1888), transferring properties to new subsid iary, Libbey Glass Co. (Ohio 1935). "In A` pr., 1-93*7 acquire!Q Lauterbach Corp. On N<ov. 1, 1938 company transferred subantially all iof its assets for development and roductfIoon oif glass fiber products to Owensornlng "Fiberrglas Corp. for 49.77% of latter's common and 17.586 preferred shares In 1943, two former subsidiaries, .OwensIllinois Pacific Coast Co. and Libbey Glass Co., were dissolved and th eir businesses con solidated with th a t of Owens-Illinois Glass Co. as divisions; Iin 1944,. company purchased entire stock ofr Toledo Automatic Brush Machine Co., and acqu ired_t o m , tatter remaining 50% interest in Owens Staple-Tied Brush Co. (no..w....O...w.. ens Brush Co.). Also, Madison Warehouse Co., former wholly-owned subsidiary, was liqui dated and dissolved in 1944. In Oct,, 1944. all of business, property and assets of Owens-Illinois Can Co., former wholly-owned subsidiary were sold to Continental Can Co.; Inc. (N. Y.). On July L 1946, company acquired Kimble Glass Co., of Vineland, N. J-. in exchange for 264,160 common shares. Company was dis solved Feb. 28, 1947 and now operates as a division. ^ On Aug. 1, 1947, company acquired all the assets and business, of American Inc., in exchange for 97.- shares of company's capital stock and assumption by company of all debts and liabilities of American Coating Mills, Inc.; now being operated as a division of the com pany. On or about Oct. 20. 1947, company 2# Modern Packages, Inc. (Tenn.). one-half of the outstanding shares of that corporation having beenacquired by company as part of othneJTaans.s2e,t1i9ft4r8f , cAommepraicnayntoCokoaotivnegr i(MtsipUrso^pIenrcty., and business. On or about Nov. 1, 1947, company acquired property and business, except real estate^some of which it has leased, of Grand Rapids Paper Box Co. a t Grand Rapids, Mich. On Dec. 31, 1947, company acquired entire outstanding cv a- pital .stock (5,0v w0w0 _s_h_ar_e_s)___of Sharpe, Inc. fn*exchalige*for"25,000 shares of company's capital stock. COn ajan? 2^1948. "company transferred its structural m aterials operatio. ns to American Structural Products Co., a wholly-owned sub sidiary, in exchange for entire authorized shares of latter company. In 1947 and 1948, company acquired entire common stock of Biair Veneer Co., North Troy, Vt. Vermont Plywood Co., Hancock, Vt., is a subsidiary. SUBSIDIARIES Company Is prim arily an operating com pany. On Dec. 31, 1948, held 100% voting power in the following subsidiaries: BlNaairmVe,enpelaecreCoof. i(nVcto.)r--poMraatniounfaacntudrebsuvsienneeses:r and plywood panels and office furniture, Vermont Plywood, Inc. (Vt.)--Manufactures veneer and plywood panels. Owens Brush Co., formerly Owens Staple-Tied Brush Co. (Ohio)--Brushes. Modern Packages, Inc. (Tcnn.)--Inactive. Sharpe, Inc. <N. Y j--Stemware A tumblers. Lauterbsch Corp. (Del.) --rPlastic molding machinery American Structural Products Co.--Structural and insulating products. Toledo Automatic Brush Machine Co. (Ohio) -Brush machine patent rights Glaseo Products Co. (HI.)--Glass products American Coating Mills, Inc.--Inactive. Graham Glass Co.--Inactive. Grand Rapids Paper Box Co.--Inactive. Libbey Glass Co.--Inactive. Company owns 98,281 common shares of Owens-Corning Fiberglas Corp. (see below). Owens-Coming Fiberglas Cer.: Incorpo rated under Delaware laws Oct. 31, 1938. and acquired all the assets of Owens-Illinois fclass go. and Coming Glass Works which had been devoted to production and development of glass in fibrous forms. Engaged In productlon of "Fiberglas" materials for a wide varlety of applications, including Insulation, dust-stop air filters, and decorative and indus trial service fabrics. Company has developed a glass reinforced plastic that will fill many uses of steel, but also can be used for making either soft or bard fabrics. Plants a t Newark, O.. Ashton,. R. L. Comin!ig, formerly operated under lease from Defense Plant Corp., was purchased for $910.000 early Jn 1946 About same time purchased an unfinished plant at Kansas City, Kan. from RFC for $650,- 000: first unit at this plant began production in Nov., 1946. Company's new plant at Santa tC.olab.rea.-cComalp.,.letto.ed.sui..npp1l9y49w. ePsltaenrtn, markets, was located on 42- acre site, will have a floor area of about 500,- 000 sq. ft. Common stock owned In equal percentages by Owens-Illinois Glass Co. and Corning Glass Works. JBU8INE38 AND PRODUCTS Directly and through subsidiaries manufac tures, warehouses and sells a general line of bottles and other containers for medicinal, toilet, pharmaceutical and proprietary preca utions; for products of manufacturing chem ists; and for foods, condiments and beverages; also for other purposes. Also manufactures and sells glass insulators used in electrical and telephone wiring: Insulux glass blocks for In dustrial and residential construction; caps and closures for glass containers: and plastics. Company also engages in fabrication or strawboard into corrugated cartons for shipping rlass articles, an< makes wood packages, ana n m anufacture of g_raduates, test tubes, laboratory appartus flfaliasks, *thermometers, and other similar products. Subsidiaries manufac- *4 MOODY'S MANUAL OF INVESTMENTS 2487 fture, warehouse and sell thin blown (paste tooth brushes, hair brushes, nail brushes and mold) tum blers (Libbey Safedge and Libbey other toilet brushes. H. K. Kimble, Vice-President R. L. Snideman, Vice-President No-Nik), used as drinking glasses and as Jars Lauterbach Corp. supplies automatic ma for packing food products; stemware: glass chines for molding plastics. S. J. McGiveran. Vice-President H. J. Carr, Vice-President ware tor hotels, restaurants, cafes, clubs, bars Toledo Automatic Brush Machine Co. is a and soda fountains; cut and engraved glass small company owning United States and R. A. Cosh, Vice-President J. G. King, Vice-President ware; and tin cans and related metal products. foreign patent rights on brush machines, J. H. McNerney, Secretary A Treasurer Owns interests in natural gas properties PRINCIPAL PLANTS A PROPERTIES S. 7. Martin, Asst. Sec. Sc A sst Treasurer which supply some of the plants with fuel. Glass sand requirements are purchased from Factories are located as follows: Alton. XU. Huntington, W. Va. 7. G. Morfoot, Asst. Sec. Sc Asst. Treasurer A. J. Riedmayer, Asst. Sec. Se Asst. Trees. outside interests. Also see Owens-Coming Fiberglas Corp. Berlin, N. J. Bridgeton. N. J, Indianapolis, Ind. Los Angeles. CaL W. G. Thomas, Asst. Sec. & A sst Trees. S. L. R. Laning, Asst. Sec. and Asst. Treas. under "Subsidiaries" above. Company's operations are carried on Buffalo, N. Y. Camden, N. J. Muncie. Ind. Oakland. Cal. A. H. Ahlers, Assistant Treasurer C. O. Dawson, Assistant Secretary through five operating divisions. Glass Container Division, Libbey Glass Division. Kimble Ccohmhiacrrialpelssoit^ooinnl,l W. Va. Pacific Grove, Cal. PleasantvUle. N. J. H. C. Yetter, Assistant Secretary P. W. Hancock, ComptroUer sion filici Export Division CO"*1" * 811118 Dlvl- dCfhi^iciaogno'PHoeights. HI. St. Charles. 111. Ban Jose, Cal. E. Fuller, General Counsel Glass Container Division comprises largest Columbus O part of company's business with manufacture Cv ons-hohoc' ken, Pa. Sayerville, N. J. Streator, Hi. Harold Boeschensteln, Toledo W. H. Boshart, Toledo ing plants located to serve all sections of the country with Duraglas containers, Including Corona, C at E lkhari Ind, ' Terre Haute, Ind. Toledo, O. H. E. Collin, Toledo T. C. Edwards. Terre Haute, Rid. bottles and jars. Two subdivisions have been established. Pacific Coast Division which F airm ont W. Va. Gas City, Ind. Vineland. N. J. Waco, Tex. G. P. Greenhaigh. Berryville. Va. H. K. KimbleTVentnor, N. J. manufactures and sells glass containers in Pacific Coast states and Closure and Plastics Glassboro, N. J. Grand Rapids, Bitch. Warsaw, Ind. W. W. Knight. Toledo J. P. Levis, Toledo Division which manufactures metal and. plas tic closures and related products. Jointly with Ltbbcy-Owens-Ford Glass Co. (see general index), company owns gas prop- W. K. Levis. Toledo F. H. McAdoo, New York steL--mi-b-w-b--ae-ry-eG--alansdjs D*ta-ib1v.li1es-i-wo--na-r-c-eo. mTphriissedsiavlilstiuo--mn ball*esro, CerhtiaersleisntoWn peslat nVtsirgoifnbiao,thsucpopmlypianngiefsu.eOl ntoDtehce. C. R. Megowen, Toledo R. L. Smdeman. Chicago operates a wholly-owned subsidiary, Sharpe, 31.1948, total territory so owned o r held under H. S. Wade. Toledo Inc. lease comprised 156,833 acres, on which there C. J . Wilcox. Toledo Kimble Glass Division (formerly Kimble were 632 producing wells. Annual Meetings Third Wednesday In April Glass Co.) m anufactures graduates, test tubes, Company has wholly-owned natural gas at Toledo. O. laboratory apparatus, fiasks, thermometers fields in Clarion, Pa. and Fairmont, W. Va., No* of Stockholders: Dec. 31. 1948, 14.483. and many other products, such as glass tubing, having a total of 1,262 acres of gas rights No, of Employees: Dec. 31, 1948, 24,278. lass rods, ampules, vials and television bulbs, owned or under lease on which there were 226 General Office: Ohio Bldg., Madison Ave,, his division also operates a wholly-owned producing wells a t Dec. 31. 1948, supplying Toledo 1. O. subsidiary, Glasco Products Co. American Coating Mills Division produces fuel to points, bottle manufacturing plants a t those Management Profit-Sharing: Executives and department heads receive additional clay coated folding boxboard, folding cartons. In early folding carton displays, and paperboard spe- m anufacture ciaities. Mills Co., M it. The Export Division handles all sales out- MANAGEMENT side of the continental United States. Officers cess of 10% of capital and surplus a t the be ginning of the year. Total of the participating Subsidiaries function as follows: American W. E. Levis, Chairman s salaries shall not exceed 10% o l the excess Structural Products Co. m anufactures glass J. P. Levis, President earnings for each year. Total bonus to any block and insulators and "Kaylo" structural C. R. Megowen, Exec. Vice-President participant in any year shall not exceed bis and insulating products. This company also W. I. Coie, Vice-President salary for that year. operates Blair veneer Co. and Vermont Ply F. J. Solon, Vice-President Paym ents made under the plan since 1939 wood, Inc. m anufacturers of veneer and ply F. T. Nesbitt, Vice-President follow: . wood panels used largely for furniture trade. C. G. Bensmger, Vice-President 1939. $188,750 1944 __ $599,042 Blair Veneer produces a line of office desks Garland Lufkin. Vice-President 1940...____ 48.644 1945 __ 642.500 and tables under "Blair" trade name, also S. L. Rairdon, Vice-President 1941 __ 628.250 1946______ 657,417 manufactures sound boards for piano industry. H. C. Laughlin, Vice-President 1942 ............5..7.9...0..0.0........1. 947__. . . . . 609.500 Owens Brush Co. manufactures all kinds of RL S. Wade, Vice-President 1943 __ 588,500 1948 __ 402,120 INCOME ACCOUNTS COMPARATIVE CONSOLIDATED INCOME ACCOUNT. YEARS ENDED DEC. 31 (Taken from reports filed w ith Securities and Exchange Commission) 1948 1947 1946 1945 1944 1943 1942 Net sales, royalties & oth. op. rev. $224.396,075 $231.310,180 $196459.500 $168.671.142 $174.5*4.341 $172,132,405 $152430427 (4 (7jCost of sales, royalties paid. etc. 186.792,156 190.232,018 160,956,926 131,086.759 135.210,244 129,386461 111.435,602 LSelling, general Se adra. expenses.. 19.502,389 18.286,423 14.504,874 12.298.371 12,655.683 11,866,729 10,087,709 Operating p ro fit__. . . . . . . . . . . . . . . Dividends received . . . . . . -- -- Interest received ______ . . . . . . . . . . . . . Discount 8c com m issions....--_. . . . . {^Miscellaneous other income . . . . . . . 18.101,530 291.964 44,854 IE......... 100,338 22,791,739 250,038 97,518 m ------ 655,71$ 20,797,700 206,263 466,456 (S-- 356,612 25,286,012 104.825 368,020 DO-- . -- 3.237.096 26,718,414 121,453 255.132 455.958 82.819 "10478414 13448$ 139460 429,677 81,786 20,707415 139.086 88,609 414,083 43.023 Total ........................................ ....... Provision for management bonus-- Discount on s a le s ..._____ . . . . __ . . . Provision for bad debts___. . . . . . . . . . In te re s t expense --....................... ........ Premium, debentures retired ..-- -- Sundry expenses Se losses (net) -- . 18.538.6S6 402,120 m......... 23.728 412,237 ' '8.627 23.795,01$ 609,500 OQ_____ 51.610 298.434 " *66,975 21.827,031 657,417 CD-------729 32,344 *3.604 28.995.954 642,500 03___ -- 540 43,964 " 9*137 27.633.776 699.042 1,626,993 848 16,942 ***8,335 31.664,224 583.500 1490,903 1.745 <0,647 7,431 651412 31492,016 579.000 1475.072 26.754 217451 77464 94,495 Bnlance . . . ____ _____ ,____. . . . . XEmployees* annuities . . . . _____-- 17.681,975 22,788.496 21,132,937 28.289,804 1.580.950 25.372.615 1,663,137 28,763,486 1,409463 29.021479 1,400,000 Total income before taxes_____ Provision for Federal Income tax. ffEFederai excess profits tax_____ State Sc foreign income ta x e s ...... Renegotiation refund for prior yr.. 17,681,975 7,300.000 *' 55300 22.788.496 8,719,000 " 52*555 58,065 21.132.937 7,794,000 ***65*749 26.355 26,708.854 4,343,800 13,545,200 26,047 23,709.478 4438.100 11410.400 25.622 37454,123 4487,400 13,406,400 20446 81.180 27,821479 4.158.600 14420.270 47461 Net income to surplus__. . . . . . Earned surplus beginning of year. If;Other surplus c re d its_______ . . . Common dividends . . . . . . . . . . . . . . Other surplus d eb its_______ _ 10,326.175 41.123,670 9,156*483 73.959.431 35.378.459 3.999.78$ 8,848.874 3.365.133 J3.246.833 44.S22.928 8.379*852 13.811,450 8,793.807 42,182,131 S.652L1 8,135456 88.568.043 3,119436 6422,408 2,318.196 9.4784*7 81.771464 3.333.799 5422.408 893409 9.194.548 27499.424 54227408 Earned surplus, end of y e a r ___ - $42.293.361 $41,123.670 $35,378,459 $44,322,928 $42,182.121 $38,568.043 $31.771.564 SUPPLEMENTARY P. 3c L. DATA Dtprec., depl. A amortization-- $5,864,083 84.138,834 $3.784.714 $3.384426 83.985.732 83,978438 $4.008.161 (DMoids charged to expense-- 4.418.934 ; 3,483,150 2,598,868 1446448 1,707458 1.737,439 1.491,809 Maintenance St r e p a irs ....-- . ----. 11.205,716 11,519.880 9.217,482 7,297,510 6.743.712 3493476 $.071.736 ODTaxes (other th an Income) . . . . . . 2,921,353 2.643.328 g.138,682 1404.596 . 9,164431 2,481,459 2489,274 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811,659 635.561 5224164 574,730, 366,619 379.655 328.544 R o y alties______________________ 354.198 914,352 1.279,505 1.921421 V 1.795415 1.661,713 1410.419 Parent company's net income-- Not stated Not stated Not stated $8.736.063 $7410460 $8,792470 $8.987.321 GQ194S-45: Discount on sales deducted from counts (amount not stated); prior years shown of 100% owned subsidiary formerly 50% net sales: prior years shown separately, separately. owned, $129436; total, $3,119,336. inpayment to service retirement trust. &Includes social security taxes: 1948, $1,543,- [TPrincipal "other surplus credits** follow: 1943: Adjustments applicable to years 1929 to 1942, to conform with principles followed 3 0 1 ; 19 4 7 , $ 1,4 3 3 ,6 0 1 ; 18 4 6 , $ 1 ,2 2 0 ,3 4 6 ; 194 5 , $ 9 6 4 ,- 19#7: Adjustm ents applicable to y e a r s 1937 by Bureau of internal Revenue in determ in 810; 1S44, $1,057.185; 1943, $1,225.371; 1942, $1,230,87. to 1946 incl.. to conform to those made by Bureau of Internal Revenue in connection ing company's tax liability for 1929-36 (excess depreciation taken. $2,430,805; property losses iliCost of sales, royalties paid, patent, de velopment and other operating expenses (in with its examination of tax returns of com pany and subsidiaries for years 1937 to 1942, disallowed and other property adjustments, $1404.265), $3,535.070; less federal taxes on in cluding d e p re c ia tio n and amortization--1948, $5.581,954; 1947, $3,944.444; 1946, $3,598.193; 1945, incl.: Reduction in provisions for depreciation, $5,334,361. Less: Adjustment resulting from come and interest paid and accrued on same, $201.271; balance, $3433,799. ^ , a $3.107,170: 1944, $3,701,420; 1943,>-$3,712,791; 1942, $3X78.741). " change in method of accounting for vacation pay from "payment" to "accrual basis $1,335, QENo depreciation is provided on molds, jigs, etc. Amount a t which molds, etc., are carried d'incluses related portions of items shown 076: balance, $3.999,786. in companies' accounts represents value there under "Supplementary P A L Data" below 1944: Reduction in Federal excess profits tax of a t Dec. 31, 1930 as determined by indepen statement. liability for year ended Dec. 31,1944, resulting dent appraisal plus (a) certain additions for 1945: Includes $2,872,128 proceeds from set tlement cf equity suit. from liquidation of subsidiary ($3,322,222 less reduction in post-war tax credit $332.222), $2,- molds acquired from companies whose assets were purchased and (b) additions for molds 1948-45: --D_is_c_o_u_n_t_o_n__p_u_r_c_h_a_s_es__a_p_p_li_e_d_to 990.000; credit arising through acquisition and for new products, minus (c) molds specifically related cost of sales ana other expense ac- i inclusion In consolidation during current year allocated to plants sold In their entirety. All MOODY'S MANUAL OF INVESTMENTS 2489 value of 1510.000 in exchange fur entire out* standing capital stock of enterprise Can Co. valued a t $B&2,000. additional paid-in surplus, $373,003; in 1936. issuance of 65.002 shares, par value of $1,575,050 In exchange for $6,500,200 cash, $4,725,150; total paid-in surplus. $10*698,150. 1946: Balance. Dec. 51. 1945. $10.698450. Add: Excess of assigned value over par value of 264.160 common shares issued in exchange for net assets and business of Kimble Glass Co., $15,189,200; balance. Dec. 31, 1946, $25.887450. 1347: Balance. Dec. 31, 1946, $25,887450. Add: Excess of assigned value over par value of 97.11219/75 shares of common capital stock issued in exchange for net assets and business of American Coating Mills, Inc.. $6,069,516: excess of assigned value over par value of 25,000 shares of common capital stock issued in exchange fo r 5,000 no par shares, being all of the authorized and issued capital stock of Sharpe, Inc., $1,500,000; balance, Dec- 31 1947, $33,456,866. 1948: A fter crediting $670,536 excess of net w orth of Blair Veneer Co. a t date of acquisi tion as a wholly-owned subsidiary over ag gregate par value of common shares and cash given in consideration for outstanding com mon stock of that company. * Depreciation Policy} The policy of company and subsidiaries consolidated with respect to provision for depreciation, depletion end amortization of physical properties was changed during 1947 to conform to basis ac cepted by Bureau of Internal Revenue In connection with final settlement of company's income tax liability for years 1937 to 1945, incl., and is in general as follows: Except as noted below, depreciation is com puted on basis of amortizing cost of each property unit over its estimated remaining useful life as determined by independent en gineers from a review and survey of depreci able properties of the companies. Depletion of gas properties is computed on straight-line method on cost over the esti mated gas content of leased or owned prop erties. Amortization of leased machinery is com puted on basis of period of license or lease. No depreciation is provided on molds (see footnote 3) under Consolidated Income Ac count). Depreciation of dies for metal products is computed on straight-line method over esti mated useful life of the dies. Average over-all rates for year ended Dec. 31, 1918 are as follows: Lana improvements, 3.79%; buildings, 2.87%; machinery and equip ment, 5.82%; motor trucks and cars, 16.05%; dies--m etal products, 20%: leased machinery, 20% . General Notes (a) Consolidated statements include all sub sidiaries a n d . such subsidiaries are whollyowned. (b) Company's equity in net assets of sub sidiaries consolidated at Dec. 31,1948 as shown by books of latter, was $1,488,643 less than company's investment in such subsidiaries, as shown by company's books. <c) Accounts certified by A rthur Young & Co. FINANCIAL A OPERATING DATA Statistical Record Earned per s h a r e _________ _ Divs. per s h a r e ______________ . . . Price r a n g e ____ __ ___ -- >---- ------Net tangible assets per share Number of shares_____ ______ ....... Financial and Operating Ratios C u rren t'assets--current liabilities... % cash & securities to current assets % inventory to current asse ts...TM .. % net cu rren t assets to net w orth.--. % property depr.. depl.. etc.-- . . . . . . % ann. depr.. etc. to gross prop.-- Capitalization: % long term debt___ ____-- -- % common stock & surplus...-- Sales *f inventory __________-- Sales ~ receivables % sales to net property-- . -- -- % sales to total assets..-- . -- -- % net inc. to total assets___. . . . . . . . . . % net income to net w orth..-- -- . . . Analysis of Operations Net sales & oper. re v en u e..________ Cost of sales, e t c . __________ . . . . . . . Selling, gen. & admin, exp.____ ___ Operating profits _____________ ___ Other in c o m e _______________~ ___ Gross in c o m e ________________ Bond interest & expense . . . . . . . . . . . . . Other deductions _________ _______ B a la n c e .... ........ .................................... Employees' annuities . . . . . . . . . . . . ___ Net income before inc. tax, etc. . . . . . taxes . . . . . . . . . . . Renegotiation refund fo r'p i. r"..___ Set in c o m e _____ ____ . . . . . . . . . . . . . . . 2)A lter renegotiation, $3.43 p er share. 1948 $3.38 $3.00 73ft-47ft $37.50 3,056,874 S.06 37.96 41.25 40.38 29.55 4.46 25.87 74.13 7.91 15.69 242.47 124.48 5.73 9.01 % 100.00 83.24 8.69 8.07 0.19 8.26 0.18 0.20 7.88 7.88 3.28 4.60 1947 $448 $3.00 80-68 $36.97 3,047,476 142 3648 37.89 3S.67 3943 345 11.75 6845 10.13 15.03 380.20 142.71 8.61 1248 o fo o 8244 741 . *8 1048 0.13 0 M 945 945 3.79 0.02 6.03 1946 $443 oo-a12 $334$ 2425464 2.20 81.66 8449 83.50 43.68 4.03 # 100.00 1348 13.75 . 37046 154.38 10.42 1344 < % 100.00 82.01 749 . 10.60 0.52 11.12 0.02 044 10.76 10.76 4.00 0.01 6.75 1945 3340 32.00 79ft-58 33248 2,661404 2.30 72.58 13.70 4748 50.30 440 100.00 16.66 . 16.65 ' 43040 137.41 7.16 10.02 % 100.00 77.72 749 1449 240 ! 17.19 0.02 . 0.39 18.77 0.94 15.83 10.62 541 1944 $3.06 $2.00 64-55ft $32.15 2,661404 2.65 66.45 18.04 44.67 48.94 543 . 100.00 ` ' 15.76 18.23 - 448.49 156.71 740 9.44 % 100.00 77.45 7.25 ' 15.30 042 15.82 1.29 14.53 0.95 13.58 8.92 4.66 1943 46 $2.00 64-54f t $30.79 2,661,204 148 57.69 24.84 33.36 * 45.72 4.69 100.00 V 13-46 17.72 373.55 153.50 8.46 11.48 % 100 00 75.17 649 17.94 046 18.40 0.04 1.65 16.71 0.82 15.89 10.35 0.04 5.51 1942 0083.46 $2.00 57%-43ft $28.22 2,661404 1.86 46.06 33.18 30.49 45.77 4.77 2.03 97.97 940 14.71 333.8? 144.29 8.72 12.14 % 100.00 73.20 6.63 20.17 0.45 20.62 0.X4 1.41 19.06 0.92 18.14 12.10 6.04 FUNDED DEBT AUTHORIZED--4,000,000 shares; issued and CflPlus stock dividends of 50% Dec. 23, 1912; Term Loans: Outstanding, Dec. 31 1948. $40.000.000 promissory notes including $15,000,000 outstanding, 3.056,874 shares; p ar $12.50 (changed from $100 to par $25 in 1916, four par 33 1/3% Dec. 10 1913; 25% Nov. 27, 1914; 20% Nov. 27, 1915. lft% notes due Get. 27, 1950; $10,000,000 2ft % notes due May 1. 1983 and $15,000,000 3% notes $25 shares issued for each $100 share; changed from $25 to par $12.50 in April, 1937, two $12.50 Plus $1.50 in U. S. Liberty Loan bonds. Plus 5% stock July 1. 1920. [ due Dec. 1, 1968. No sinking funds or interim payments are shares issued for each $25 share). DIVIDEND RESTRICTIONS -- See "Funded required to oe made, and loans m ay be p re paid in whole or in part, without premium, Debt" above. Dividend Record (to $) Plus 50% stock June 1,1921. except where prepayments are made out of other borrowed money. 1907-- ($100 par shares) LOO 1908__ 5.50 1909__ 6.50 Plus 5% stock. To May 17. Principal restrictions contained in loan agreements are that (1) working capital shall 1910.. 1916__ 840 1911__ 1040 BU91S-15 12.00 3.00 Dividends payable quarterly Teh. 15, etc., to stock of record about Jan. 30, etc. be not less than total funded debt, including the notes; (2) net tangible assets shall be not 1916TM ($25 p ar shares] 3.50 1917... 5.00 d31918TM 280 VOTING RIGHTS--One vote per share. PREEMPTIVE RIGHTS -- As conferred by less than 275% of all funded debt, including the notes; and (3) th at no cash dividends shall (1)1919-20 3.00 001921__ 1923-- 2.75 1924-25 340 1922TM 3.00 @1926... 2.00 4.00 Ohio laws. LISTED--New York Stock Exchange. be paid nor any shares purchased unless, after @1927. suen transactions, n et earnings from Jan. 1, @1930. 5.00 QD1928__ 3.50 1931__ 4.00 QD1929__ 2.25 1932__ 4.50 2.00 TRANSFER AGENTS--New York Trust Co., New York, and company's office. Toledo. 1946. plus $19,000,000. shall a t least equal total 1933-.. of all such payments since that date. 1936-- 240 6.00 1934... 1937__ 345 240 1935-- 4.00 REGISTRARS--Guaranty Trust Co., New York, and Toledo Trust Co.. Toledo CAPITAL STO CK ($12.50 p ar shares) PRICE RANGE-- 1948 1947 1946 1937__ 2.50 1938__ 140 1939-40 2.00 Common---- ------ 7314-47ft 80-68 100-69ft 1. Owens-Illinois Glass Ce common: par 1941__ 2.50 1942-45 2.00 1946... 3.50 Subscription Rights: Common stockholders $12*50 1947-48 3.00 @1949__ 140 of record June 5. 1936. had right to subscribe to 63480 shares at $100 per share on basis of 1 additionalIVsh1are for each 20 shares held; rights RADIO CORPORATION OF AMERICA C A P IT A L S T R U C T U R E expired July 24, 1936. CAPITAL STOCK Par Amount Earned per 8 k Diva, per 8h. C all' Price Range Issue Value Outstanding 1948 , 1947 1948 1947 Price 1948 1932-48 1. $3.50 cum. first pfd-- ____......... No par 900,824 shs> $26.67 $20.84 $3.50 $3.50 $100 75ft-63ft Q)96ft-44 3. Common _____________ . . . . ____-- No par 13481,016 aha. 140 ; U 2 0.30 0.20 -- 15 - 7 f t . 19 ft-2 ft QjRange since 1936. HISTO RY Incorporated in Delaware, Oct. 17 1919, by General Electric Co. and acquired the assets of Marconi Wireless Telegraph Co. of America which was Incorporated Nov. 22, 1899 in New Jersey. Radio Corp. also acquired rights to various radio devices and systems developed by General Electric Co.. Westingbouse Elec tric Sc M anufacturing Co., American. Tele phone & Telegraph Co. ana others. In 1926 National Broadcasting Co., Ine., was organized to carry on radio broadcasting activ ities. In 1928 Radiomarine Corp. of America was organized to handle company's marine radio activities and RCA Photophone, Inc. was organized to develop apparatus for synchro nizing motion pictures with sound; this sub sidiary was merged in Jan., 1932 with RCA .Victor Co. Inc. In 1928 acquired substantial Interest in Radio-KeUh-Orpneum Corp. (gen eral index). In 1929 acquired Victor Talking Machine Co. through exchange of stock (sub sequently dissolved). International radio com- m unicatton services In 1929 were transferred to RCA Communications, Inc. no manufacturing acquired certain _ _ ng facilities ana rights from Gen eral Electric Co. and Westlnghouse Electric & Manufacturing Co., from whom apparatus had previously been purchased. Facilities acquired were operated by RCA Victor Co., inc. and RCA Radlotron Co.. Inc., until Jan. 1, 1935, when manufacturing activities were consoli dated in the newly organized RCA Manufac turing Co.. Inc. On Dec. 31. 1942. RCA Manu facturing Co., Inc. was merged Into the par ent company and became the RCA Victor Di vision of the company. In Nov., 1932, agreed to a consent decree In suit filed by the Justice Departm ent in May, 1930 against Radio Corp., General Electric Co.. Westlnghouse Electric Sc Manufacturing Co. and others (see Moody's 1937 Industrial Manual for details). Company thereby ac quired additional patent rights and surren dered certain exclusive rights previously held, retaining non-exclusive rights with privilege of granting sub-licenses. For discussion of arrangements resulting from Consent Decree. See Moody's 1938 Industrial ManuaL In fail of 1935 sold, for $10,225,917 cash, hold ings (294% of common and .2% of preferred stock) of Electric 6c Musical Industries. Ltd. In latter .1935 sold one half of holdings in Radlo-Kefth-Orpheum Corp. to Atlas Corp. and associates, who obtained an option which expired June 30, 1938 on remaining holdings. In 1936 RCA Manufacturing Co.. Inc. sold its 68% Interest in Victor Talking Machine Co. of Japan, Ltd., for $2,000,000 .cash, payable in five instalments. In Feb., 1938 sold holdings In Canadian Mar coni Co. for $1,725,000 cash. In 1941, company also disposed of its artists' service business and Civic Concert Service, Inc. These assets were sold to National Con cert Sc A rtists Corp., a newly organized In dependent company.