Document Zdv0qQarZKY2K39wDNV4pbzL

PLAINTIFF'S EXHIBIT The Dow Chemical Company*- MIDLAND, MICHIGAN Annual Report FOR YEAR ENDED MAY 31, 1941 DOW 6 0 ie o o o iS i THE DOW CHEMICAL COMPANY (Incorporoted in Michigan) Founded in 1897 Executive Office New York Office Chicago Office St. Louis Office Houston Office San Francisco Office Midland, Michigan 30 Rockefeller Plozo Field Building Second and Madison Streets Commerce Building 310 Sansome Street Midland Division Plants--Midland, Michigan Great Western Division San Francisco Office - - - 310 Sansome Street Seattle Office .... 1201 Textile Tower Los Angeles Office - - 4151 Bondini Boulevard Plants -- Pittsburg, California Seal Beoch, California Venice, Californio Texas Division Plant -- Freeport, Texas ST0 003 7I 0 Subsidiaries Dowell Incorporated -- Executive Office ... Midland, Michigan Generol Office - Kennedy Building, Tulsa Oklahoma Dowell, S. A. Tampico, Tamps--Mexico Cliffs Dow Chemical Company -- Executive Office General Office Midland, Michigon Marquette, Michigan Midland Ammonia Company -- Office and Plant Midland, Michigan Associated Company Ethyl-Dow Chemical Company -- General Office - - Wilmington, North Carolina plants--Kure Beoch, North Carolina Freeport, Texas THE DOW CHEMICAL COMPANY MIDLAND, MICHIGAN E. 0. BARSTOW W. H. DOW - J. S. CRIDER Director! E. W. BENNETT J. T. PARDEE W. R. VEAZEY L. I. DOAN G. E.-COLLINGS C. J. STROSACXER Officer* Chairman of the Board - - - - - J. T. PARDEE President and General Manager ... W. H. DOW Vice President ---- G. E. COLLINGS Vice President - - - - - J. T. PARDEE Vice President, Sec'y ond Treasurer - E. W. BENNETT Vice President and General Sales Manager - L. I. DOAN Assistant Treasurer . . . . . J. S. CRIDER Assistant General Manager - - - A. P. BEUTEL Auditor and Assistant Secretary - L. A. CHICHESTER Assistant Auditor ond Assistant Secretary F. H. BROWN Assistant Secretary - " - - R. L. CURTIS Assistant Secretary -- G. M. McGRANAHAN Assistant Auditor -- D. J. LANDSBOROUGH i im o o is: Registrars The New York Trust Company 100 Broadway New York City The National City Bank of Cleveland Cleveland, Ohio Transfer Agents Guaranty Trust Company of New York HO Broadway New York City The Cleveland Trust Company Cleveland, Ohio TO THE STOCKHOLDERS OF THE DOW CHEMICAL COMPANY: The forty-fourth onnuol report of your Company is presented herewith. The consolidated financial statements for the fiscal year ended May 31, 1941 have been audited by Messrs. Haskins & Sells, whose certificate is reproduced as port of this report. FINANCIAL STATEMENTS-- The consolidated balance sheet May 31, 1941, statement of consolidated income for the year ended May 31, 1941 and statement of consolidated earned surplus for the year ended May 31, 1941 ore shown herein. The total assets of your Company and its Subsidiaries amounted to $80,550,620.30, which figure includes current assets amounting to $17,927,721.80. Compare this with the total assets at the end of the fiscal year 1940 amounting to $48,185,010.09. Current liabilities this year omounfed to $13,877,532.70, compared with $5,151,315 07 last year. The rotio of current assets to current liabilities at May 31, 1941 is less than in previous years, because of the unusually large construction program requiring the investment of current funds. Most of these plants are just beginning to produce and a favorable return is expected on these investments. EARNINGS-- The consolidated net income of the Company and its Subsidiaries for the yeor ended May 31, 1941 amounted to $7,770,547.11. After deducting dividends on the preferred copital stock of $300,000.00, the consolidated net income wos equivalent to $6.58 per share on the number of shares of common copital stock outstanding at the end of the year. This compares with $7,159,167.12 or $6.65 per share after deducting preferred stock dividends for the year ended May 31, 1940. The consolidated income of the Company and its Subsidiaries for the yeor ended May 31, 1941, amounted to $13,546,638.50 before provision for depreciation and for amortization in the amount of $3,776,843.05 ond Federol income and excess profits taxes of $1,999,248.34. DIVIDENDS-- - Your Company distributed four equal quarterly dividends, aggregating $3 00 per shore, to the common stockholders during the year. Including dividends on the preferred capital stock of $300,000.00, the dividends disbursed to shareholders amounted to $3,628,161.75. NEW CAPITAI___ In the early fall of 1940 the Company engaged in new financing under which the fifteen year 3% debentures outstanding at the beginning of the year in the omount of $5,000,000.00 were redeemed with a portion of the proceeds received from the sale of new debentures bearing lower interest rates. The new obligations sold consisted of ten year 2'/4% debentures due September 1, 1950 in the amount of $7,500,000.00 ond serial debentures in the amount of $7,500,000.00 which mature in amounts of $750,000.00 onnually from September 1, 1941 to September 1, 1950 ond which bear vorying low rotes of interest. At the time of the sale of the new debentures, 103,199 additional shares of common capital stock were offered to stockholders of record September 20, 1940 on the basis of one new shore for each ten shares held. The new shares were sold for $10,339,437.50, which wos credited to the capital stock account. This increased the number of common shares outstanding to 1,135,187. ST0003?I2 I 7ST 0 0 03 31 SURPLUS-- The net increcse in consolidated earned surplus for the year amounted to $3,941,289.28, bringing the consolidated earned surplus as of May 31, 1941 to $18,933,844 35. A charge ogainst surplus of $201,096.08 was made during the year because of the retirement of the previously outstanding 15 year 3% debentures. NET SALES-- Net soles for the year ended May 31, 1941 amounted to $46,907,950.27, as compared to $37,743,546.64 for the year ended Moy 31, 1940. PLANT AND PROPERTY-- Additions to plant and property amounted to $32,382,988.87 during the year ended May 31, 1941. The major expenditures were for additions to existing plants, improvements to processes and construction of new plants. Attention is called to the statement in our balance sheet where it is shown that $13,371,405.91 was invested in emergency facilities for National Defense, which are being amortized on a five-yeor basis. The amortization provided, on completed projects this year amounted to $406,817.53. Not reflected in our property accounts is the current construction of a United States Government plant located adjacent to our Midland plont, which'will be operoted under our direction. In Texas, on addition to the original Magnesium plant was built and financed by the British Government. A British expansion was olso made to the Midland Magnesium plant. A second odditfon, which will double the capacity of the Texas Magnesium plont, is now under construction. This is financed by the Defense Plant Corporation, a subsidiary of the Reconstruction Finance Corporation. It is estimated the total cost of the above projects will be approximately $13,000,000.00. TAXES-- Totol mojor taxes for the year amounted to $3,543,903.70, which represents on equivalent cost per share on common stock of $3.12. GREAT WESTERN DIVISION-- The Great Western Division plants are operating most satisfactorily. Demand for all of the products is steady and increased capacities have had to be added to satisfy the needs of our customers. At Pittsburg, California a new design Carbon Tetrachloride plant was built and is now operating successfully. This plant is a radicot new departure from standard practice, since natural gas is used os the raw material and chlorinated to Carbon Tetrachloride, Methylene Chloride, Chloroform and Methyl Chloride, along with by-product Hydrochloric Acid. Other additions and plant improvements were also made. Our Iodine plant was moved from Long Beach to Seal Beach, California ond provides increased capacity. TEXAS DIVISION-- The plont of Freeport, Texas hos been generally publicized for the production of Magnesium. For Magnesium production in Texas, we pump raw ocean water, precipitate Mognesium Hydrate with Lime made from oyster shells and produce Magnesium as ingot metol,--actually the first time in the history of the world where metal is produced commercially from raw ocean water. This is unquestion ably another milestone in scientific achievement. It is not unfair to mention that The Dow Chemicol Company olso accomplished a previous recognition when Bromine was extracted commercially from row ocean water for the first time in 1934 at Kure Beach, North Carolina. Also in Texas, we are now producing Ethylene Glycol, Ethylene Dichloride, Coustic Soda and Chlorine from raw materials readily available of our plant. GENERAL-- The foregoing information briefly summarizes some of our more important activities, and the financial statements indicate the results of a considerable expan sion in manufacturing facilities, requiring the utilization of current funds and new financing lost October in the form of the sale of debentures and additional shares of common capital stock. While this plont expansion program has in part resulted from the present activities for National Defense, the major portion of the increased capacity will be used for the production of chemicals salable after the termination of the emergency period. In the opinion of the management, the expansion progrom is being followed on a sound basis ond will result in permanent future benefit to the Company. MAGNESIUM HISTORY-- In view of the indictment against the Company and two of its officers charging violation of the Sherman Anti-Trust Act, it seems proper to review for the benefit of our stockholders o portion of our history. The activity of The Dow Chemical Company in its early history proceeded much os it hos in recent years,--os a matter of fact, the historical activity of our Compony is o fair cross-section of the history of the Chemical Industry in the United States. Our activity has always consisted of research, development, buildings, expansion, new products, new application, new products again ond more buildings--an unending cycle of change and growth. At the beginning of World War No. I, we had developed a good stride in this direction. Our Company was then a leader in the rapidly growing Chemicol Industry of that day. For a number of years prior to World War No. 1, we hod concentrated on the extraction and separation of Calcium Chloride and Magnesium Chloride. We were producing and selling Calcium Chloride, and with the outbreak of the war in 1914, Magnesium Chloride was cut off from further importation from Germany. Our Company rushed the construction of a plant. The big use for Magnesium Chloride at that time was for Magnesium Oxychloride cements. This product was used extensively; the tonnage was large and the demand was critical. We were complimented many times on our ability to produce this necessary product in a time of emergency. Actually, 1914 marked the culmination of many years of experimentation ond research. We became established in the Magnesium Chloride business,--a new product for us, which throughout the many years since has represented a substantial volume of business. With Magnesium Chloride in production, our Company looked with fascina tion on the manufacture of Metallic Magnesium and research began. Some small quantity of Magnesium was produced as early as 1916 but we did not really consider ourselves in commercial production until 1918. Producing and marketing a metal was an entirely new enterprise with us, as heretofore our whole activity had been concerned with the production and sale of inorganic and organic chemicals. Development of a metal like Magnesium meant the knowledge of its metallurgy and its possible applications. A metallurgical staff began making olloys, after first leoming how to moke a metal that was capable of being alloyed. Alloying Mag nesium with one metal in varying percentages, as well as determining the physical properties of these olloys, was o big job and then, to run the same gamut of testing on binary, ternary, quaternary and more olloys was a stupendous undertaking. This work was started in the early 20's and has continued, uninterrupted, ever since. Production of metal was the first step and from the time of our first sole until the present time, there hos been a continual effort on the part of a large staff of engineers and research personnel to improve our process of production. Not a HST0 0037 : ST00IJ37I 5 single element of assistance in this whole process was contributed by ony agency, either domestic or foreign, outside our own Company organization. Any statement to the contrary is an insult and is unjust to the loyolty, integrity, perseverance and forethought of the industrious men who developed our manufacturing process for Magnesium production. As the production of Magnesium proceeded, simultaneously the alloying and metallurgical experience developed and fabrication of salable products resulted. In addition, we were introducing a new, little known, metal to a skeptical public. Giving due consideration to the many thousands of Dowmetal automobile pistons which were successfully used by thousands of customers, the Magnesium Industry was still not a successful enterprise. More and better applications had to be found. About this time, other methods of fabrication were started, such as die casting and extrusion. Rolling of sheet came a little later and with a diversification of salable products, permanent uses began to grow. In 1918, the commercial use for Magnesium was almost exclusively for flashlight powder. A period of about fifteen years elapsed before it became accepted commercially in the form of com plicated sand castings, die costings, sheet and forgings. Successful welding also followed these developments. This was approximately the status of the Magnesium Industry of Dow Chemical in the early I930's. Naturally, during the long years of development of this product and its applications, we had applied for many patents covering our experience. It follows that some of these were in interference with inventions of others, although our greatest interference on patent applications wos in the fabrication fieldwith the European interests in the United States Patent Office. In 1932, a lawsuit was filed against us on alleged infringement of certain I. G. Farbenindustrie U. S. A. pat ents. This suit was finally settled on the basis of cross-licensing oil of the Dow fabrication paitnh owned in the United States with all of the U. S. A. fabrication pattnh of the I. G. and American Magnesium Corporation, a subsidiary of the Aluminum Company of America, which patents were owned and controlled by Magnesium Development Corporation, a United States organization jointly owned by the I. G. Farbenindustrie ond Aluminum Company of America. By this method of procedure, ony royalties poid for the use of the patents are paid by the manufacturer of metol ond there is no restriction whatsoever on production. This agreement permitted customers to fabricate and use Magnesium products without fear of infringement of patents from others, and results prove it to have been a con structive step in the development of the business. The Dow Company pays no royalty on the production of metol. The Dow Chemical Company pays a royalty of one cent per pound to the Magnesium Development Corporation on the Mag nesium used in the manufacture of fabricated Magnesium parts. There ore definitely two divisions to be considered in the Magnesium Indus try. The first is the production of Magnesium, which is a wholly Dow Chemical American development, not assisted in any respect by any European or other Amer ican interest. The Dow Chemical Company is very proud of its record in the development of the production of Magnesium. The second phase of the Magnesium Industry is the fabrication step, where pure Magnesium Metol is alloyed and then made into usable products, or as generally termed "fabricated". The incorrect impression in the minds of the general public, apparently re sulting from statements publicized and reprinted many times during the past year concerning the stotus of the Magnesium Industry in America, has been extremely distressing to us. The production of Magnesium Metal is the first step. The final use of the metal for fabrication purposes is the second step. The same as in the Steel Industry, the plant that reduces the ore to pig iron is comparable to our production of metal from the salts obtained from native brines or ocean water. The manufacture of steel products, such as boiler plate and other usable products, where pig iron is taken as the raw material and made into alloys to produce the proper steels, is comparable with our phase of operation, where we take the ingot metal and then proceed to alloy and fabricate it into usable products. It is neces sary to bear in mind that there are two distinct steps in the complete Magnesium picture, -- 1. Production -- 2. Fabrication. There has been no limiting control in the sale or production of the metal, either as ingot metal or os fabricated parts. Our selling expense has been consid erable and development costs hove been large. We have retained on engineer in Washington for ten years to assist in developing possible uses with the various Government agencies ond these development projects necessarily require a long series of tests before satisfactory conclusions can be determined. Early in 1940, we started the construction of o large new plant in Texas in anticipation of increased requirements, before any government agency estimated the requirements of Mag nesium. Not until the late spring of 1940 was general approval made for certain specific Government uses and only within the last twelve months has there been the urge to use more and more Magnesium and Dowmetal olloys in the various applica tions required for defense purposes. However, before the Texas plant was completed, an addition was started for the British Government and shortly thereafter we were requested by the United States Government to double the capacity of the Texas pro duction. This latest addition is now approaching completion, operating under a Defense Plant Corporation contract. As of this dote. The Dow Chemicol Compony is the only producer of Magnesium in the United States. Recently, we have been asked by the Government to grant a license and supply engineering knowledge to a number of other companies for the production of additional metal by the Dow Electrolytic Magnesium Chloride process. The Dow Chemical Company has expressed its will ingness to do this in the interests of National Defense. ACKNOWLEDGMENT-- The Board of Directors wish to publicly express their appreciation to the large number of employees who have shown unusual loyalty and perseverance during these abnormal times, for the extra effort, the responsibility for the work in hand and for the unfailing talent ond capabilities they invariably show when we have difficult problems to handle. The large sums we continually spend for research ore justified time offer time in the solution of many problems constantly confronting us. It Is only through constant effort and highly skilled training that our Company has been oble to achieve its record of abnormal growth and meet the unusual conditions so often expected of it. Midland, Michigan July 25, 1941 WILLARD H. DOW, President 7' ST 0003 61 1 7ST0 0 0 3 17 NOTICE Information presented on the following graphs for fiscal yeors 1931-1937 inclusive, apply to The Dow Chemical Company only; information for subsequent years is prepared from the Con solidated Statements of The Dow Chemicol Com pany and its subsidiaries. Earnings per share based on 945,000 Shores common stock up to 1939. 1939 based on 981,245 Shares--average num ber shares outstanding. 1940 based on 1,031,988 Shares outstanding. 1941 based on 1,135,187 Shares outstanding. The graphs appearing in this report are not to be reproduced or used without the permission of The Dow Chemical Company. 100,000 ,ooo 50,000,000 8 nooois to, ooo, ooo 5, ooo, ooo Sot* i 5or oJos tends Paid Cask 1.000,000 500, ooo terpinqs per short Com > non Stock 3.56 nr T7T 3.?/ 3.95 Trr too, ooo 155 !9$Z 1055 1054 /OSS /050 1957 1059 1959 1940 /94l 1 ST0 003 719 ---^--- - ,100 000.000 -- 50,000.000 - --- . 1 --tn\ 'ztta Cob fat - tnc >udiru fun t*d L tbt - -' 10,000,000 '5,000,000 A< Strvt taiion . - ... . ^-/V i Wor unq C apiiat . .. - ' /. 000.000 - - - - 100,000 m2 1955 1954 1955 1956> 1957 t951 1959 1940 1941 PAOOUCTION SALES SELLING PAICE 19.0 17.0 f&O ISO 14.0 15.0 oo CO r>o Zt '29 30 5/ 52 53 34 35 36 37 39 39 `40 4/ ST0003722 Payroll Paid Dorintj Piscaf Ytor (/Jtortst thousand) E zm o o iS i Q> O e* M) *0 c o o 0 *o 01 *o sv Dividend Paid to Stockholders During Fiscal Ytor (Moorish thousand) Mojor Texts Paid Durina Fiscal Year (Meortsl thousand) 1940 1941 1940 194/ 1940 1941 /3, ooo,ooo{ A/.OOO. OOO sf, ooo, pop cu&RNT /issers -CASA /3,P00,000 /*. ooo/ ooo -Ai'Ci /A OOP. OOP /g 000,000 V,000,000 /O, 000,000 3 000.000 3, ooo, ooo -ACPA' PAOCi -0AO S'.< T*< 'Si'/ 7,000.000 6.ooc.ooo 5,000,000. M- 4.000.000 jjjj]-- 3, OOO, OSS. \ I 4 000,000. ^ E: -I- | r ST00G3724 J bl: /9S3 /9S4. /?3S /$3G /937 /jSS #40 /J4S HASKINS & SELLS CKITTiriCO RJIL1C ACCOUNTANT* THC RATIONAL RANK RUHOINO DETROIT ST0003725 ACC0OTTART3* CTRTmCLTS The Dorr Chemical Company: Ta have examined the consolidated balance sheet of The Do* Chemical Company and ita subsidiary companies as of Uay 31. 19*<1 and the related statements of consolidated income and earned surplus for the year ended that date, have reviewed the accounting procedures of the companies, and have examined their accounting records and other evidence in support of such financial statements* Our examination was made in accordance with generally accepted audit* lng standards applicable in the circumstances and included all audit ing procedures we considered"necessary, which procedures were applied by tests to the extent we deemed appropriate in view of the systems of Internal control. In our opinion, the accompanying consolidated balance oheet and statements of consolidated incoma and earned surplus fairly present the financial condition of the companies at Uay 31, 19*41 and the results of their operations for the year ended that date, in conformity with generally accepted accounting principles and praotioee applied on a basis consistent with that of the preceding year. July 18, 19**1. THE DOW CHEMICAL COMPANY (Incorporated in Michigan) AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET, MAY 31, 1941 r ST0Q0372G ASSETS CURRENT ASSETS: Cash United States Treasury bonds, 3 3A% --at cost (face volue, 5200,000.00; market value, $226,187.50) Notes and accounts receivable: Customers, 55,723,927.48; associated company, $128,508.33; employees, $20,050.35; and sundry, $139,889.33 $ 6,012,375.49 Less reserves for doubtful receivables__________ 207,217.05 Billed and unbilled amounts receivable from agencies of the United States Government for plant construction Inventories: Finished goods and work in process (at lower of cost or market) $ 4,077,623.47 Materials and supplies (at cost--approximately market) 3,352,291.58 Total current ossefs INVESTMENTS AND MISCELLANEOUS RECEIVABLES: Notes receivable and capitol stock (at cost) of associated company (equity at May 31, 1941 as shown by unaudited balance sheet of associated company, $3,304,964.93) $ 2,238,000.00 Instalment notes receivable, maturing 1942 to 1948 500,000.00 Miscellaneous securities ond receivobles (less re serve, $46,698.42)__________________________ 518,425.69 Total investments and miscellaneous receivables ASSETS HELD FOR OTHERS UNDER TERMS OF CONTRACTS FOR PLANT CONSTRUCTION: Cash $ 337,978.53 Plant property costs incurred (net)--------------------- 1,721,780.28 Total______________ Liability for funds advanced $ 2,059,758.81 2,059,758.81 PROPERTY (including emergency facilities for no tional defense, completed and in progress, with a gross book volue (cost) of $13,371,405.91 subject to amortization) : Plant properties ond equipment--at cost (less reserves for depreciation and amortization, $22,335,421.66) -----------------------------------------Housing properties--at cost (less reserves for de preciation and amortization, $71,551.29) Patents--at cost or nominol value Hess reserves for amortization, $43,347.23) ---------------------------- $57,836,292.12 928,316.05 72,427.17 Total property----------------------------------------------------------------- DEFERRED CHARGES--Unexpired insurance premiums, unamortized debenture discount and expense, deferred cost of power facilities, and miscellaneous ---------------------------------------------------------------------------- TOTAL $ 3,892,077.26 217,750.00 5,805,158.44 582,821.05 7,429,915 05 $17,927,721.80 3,256,425.69 0 58,837,035.34 529,437.47 $80,550,62030 THE DOW CHEMICAL COMPANY (Incorporated in Michigan) AND SUBSIDIARY COMPANIES CONSOLIDATED BALANCE SHEET, MAT 31, 1941 LIABILITIES CURRENT LIABILITIES: Notes payable--Banks Accounts payable--Trade and miscellaneous Federal income and excess profits taxes Special customer's deposit for purchase of product------------------------ Serial debentures maturing September 1, 1941 Accrued liabilities: Payrolls and bonus Taxes (other than Federal income taxes) Interest____________________________________________ . Sundry. $ 4,200,000.00 4,671,199.60 2,015,597.87 635,850.00 750,000.00 645,822.35 820,501.84 71,265.20 67,295.84 Total current liabilities FUNDED DEBT: Ten year 2V*% debentures, due September 1, 1950 Serial debentures moturing in the amount of 5750,000.00 on September I, 1942 and annuolly thereafter until September 1, 1950 (debentures maturing in 1941 included in current liabilities) $ 7,500,000.00 6,750,000.00 513,877,532.70 Total funded debt RESERVES FOR FIRE AND ACCIDENT LOSSES, DAMAGE CLAIMS, AND CONTINGENCIES MINORITY INTERESTS IN CAPITAL STOCK AND SURPLUS OR DEFICIT OF SUBSIDIARY COMPANIES___________________ _____ CAPITAL STOCK: Preferred capital stock--5% cumulative (author ized and outstanding, 60,000 shares of $100.00 par value eoch) Common capital stock (authorized, 2,000,000 shores without par value; outstanding, 1,135,187 shares) $ 6,000,000,00 26,169,046.83 14,250,000.00 368,085.12 875,634.64 Total capital stock SURPLUS: Capital surplus (decreased during the yeor ended May 31, 1941 by expenses in connection with sale of additional shares of common capital stock, $24,255.73) --............................... -- Earned surplus 18,933,844.35 $ 76,476.66 32,169,046.83 Total surplus 19,010,321.01 ^Z2C 0001S : TOTAL $80,550,620.30 THE DOW CHEMICAL COMPANY AND SUBSIDIARY COMPANIES STATEMENT OF CONSOLIDATED INCOME FOR THE YEAR ENDED MAY 31, 1941 ST0003728 SALES (net of returns, allowances, cash discounts, and freight)---------COST OF SALES____________________ ____________ --.............. ........ GROSS PROFIT__________________________________________________ SELLING AND GENERAL EXPENSES: Selling and administrative expenses $3,642,865.70 Research and experimental expenses_____________ 2,262,697.07 PROFIT FROM OPERATIONS_____________________________ ________ OTHER INCOME: Dividends, $1,913,236.00, ond interest, $90,623.37, from associated company Other interest eorned, royalties, and miscellaneous $2,003,859.37 235,377.25 GROSS INCOME $10,284,211.24 INCOME CHARGES: Interest ond amortization of discount ond expense on debentures $ 269,877.93 Other interest expense, loss on disposal of fixed assets, ond miscellaneous_____________________ 88,641.76 NET INCOME BEFORE PROVIDING FOR FEDERAL INCOME AND EXCESS PROFITS TAXES...................... ............................................... PROVISION FOR FEDERAL INCOME AND EXCESS PROFITS TAXES: Normal tax $1,958,832.54 Excess profits tox______________________________ 40,415.80 NET INCOME BEFORE ADJUSTMENT FOR MINORITY INTERESTS IN SUBSIDIARY COMPANIES $ 7,926,443.21 MINORITY INTERESTS' SHARE OF PROFITS OF SUBSIDIARY COMPANIES -................--------------------------------- -------------------------------- NET INCOME FOR THE YEAR $46,907,950.27 32,957,412.88 $13,950,537.39 5,905,562.77 $ 8,044,974.62 2,239,236.62 358,519.69 $ 9,925,691.55 1,999,248.34 155,896.10 $ 7,770,547.11 NOTE: The provision for depreciation and the amortization (os provided under the Second Revenue Act of 19401 of emergency defense facilities chorged ogoinst Income for the year ended May 31, 1941 amounted to $3,370,025.52 ond $406,817.53, respectively. THE DOW CHEMICAL COMPANY AND SUBSIDIARY COMPANIES r ST 0 003 7Z9 STATEMENT OF CONSOLIDATED EARNED SURPLUS FOR THE YEAR ENDED MAY 31, 1941 BALANCE, JUNE 1, 1940 ______ CREDIT--Net income for the year Total CHARGES: Cosh dividends: Common capital stock. $3,328,161.75 Preferred capital stock_______________________ Total dividends $3,628,161.75 Redemption premium and unomortized discount ond expense relating to fifteen year 3% debentures retired ____--_____________ BALANCE, MAY 31, 1941 $14,992,555.07 7,770,547.11 $22,763,102.18 300,000.00 201,096.08 3,829,257.83 $18,933,844.35 DOW CHEMICALS IN INDUSTRY -- A PARTIAL LIST -- AUTOMOTIVE AND AIRCRAFT Carbon Tetrachloride Caustic Soda Dowmetol Ethocel Ethylene Glycol Methanol Perchlorethylene Thiokols EXPLOSIVES Ammonia Aniline Charcoal, Pulverized Diethyloniline Diethylene Glycol Dimethylaniline Diphenylomine Hexachlorethane Monochlorbenzene Phenol LEATHER Carbon Tetrochloride Dowicides Epsom Salt Ethocel Iron Liquor Methocel Salt Sodium Acetate Sodium Sulphide Sulphur Dioxide MINING AND METALLURGY Acetylene Tetrobromide Ammonia Ammonium Chloride Chlorine, Liquid Dehydrating salt solutions Ferrous Chloride Flotation Oil (Wood Creosotes) Mining Salts Muriatic Acid Perchlorethylene p-Phenol Sulphonic Acid Sodium Sulphide Sulphur Chloride Xonthates F Reagent, Potassium Furfuryl Xanthate Potassium Hexyl Xanthate Z-3, Potossium Ethyl Xanthate Z-4, Sodium Ethyl Xanthate Z-5, Potossium Amyl Xanthate Z-6, Pentasol Xanthate Z-8, Secondary Butyl Xonthote Z-9, Potassium Isopropyl Xanthate Zinc Ammonium Chloride PAINT, VARNISH AND LACQUER Acetic Acid Bis Phenol-A Carbon Tetrachloride Cyclohexane Diethylene Glycol Dowicides Dowtherm Ethocel Ethylene Dichloride Methanol Methocel Methyl Acetone Methylene Chloride Orthodichlorbenzene Phenol Plasticizers Propylene Dichloride Styrene Thiokols Triphenyl Phosphate PAPER Carbon Tetrachloride Caustic Soda Chlorine, Liquid Dowicides Dowtherm Ethocel Methocel Plasticizers Sodium Sulphide Zinc Hydrosulphite once oojlsj DOW CHEMICALS IN INDUSTRY -- A PARTIAL LIST -- ' ST 0003731 PETROLEUM RAYON Ammonia Calcium Chloride Acetic Acid Carbon Bisulphide Caustic Potash Caustic Soda Coustic Soda Dowicides Diethylene Glycol Epsom Salt Dowell Products Ethocel Dowicides Methocel Dowmetal Muriatic Acid Ethylene Dibromide Sodium Sulphide Inhibitors Muriatic Acid REFRIGERATION Phenol Sulphur Dioxide Ammonia Calcium Chloride PHOTOGRAPHIC Ethyl Bromide Ethyl Chloride Acetic Acid Methyl Bromide Ammonium Bromide Methylene Chloride Carbon Tetrachloride Methyl Chloride Ferric Chloride Hydrobromic Acid Salt Sulphur Dioxide Iodine Monoehloracetic Acid RUBBER Phenol Potassium Bromide Sodium Bromide Acetic Acid Acrylo Nitrile Ammonia Aniline PLASTIC AND RESIN Aniline Bis Phenol-A Carbon Tetrachloride Caustic Soda Butadiene Carbon Bisulphide Carbon Tetrachloride Caustic Soda Charcoal, Pulverized Diphenylguanidine Charcoal, Airfloat Ethylene Dichloride Chloracetamid Diphenyl Dowtherm Ethocel Ethofoil Ethyl Chloride Ethylene Dichloride Hardwood Pitch Methocel Hardwood Pitch "Mike" Sulfur Muriatic Acid Phenol Sodium Acetate Sodium Sulphide Styrene Sulphur Chloride Thiokols Orthophenylphenol Poraphenylphenol SOAP Para Tertiary Butyl Phenol Phenol Plasticizers Saran Styron Thiokols Caustic Potosh Caustic Soda Coumarin Diphenylmethane Diphenyloxide Dowtherm Indol Methyl Anthronilate Methyl Phenyl Corbinyl Acetate Phenol Phenyl Ethyl Alcohol Salt TEXTILE Acetic Acid Ammonium Chloride Calcium Chloride Corbon Tetrochloride Coustic Soda Chloroform Dowicides Epsom Salt Ethocel Ethylene Dichloride Indigo and Brom Indigos Iron Liquor Methocel Perchlorethyfene Phenol Sodium Acetate Sodium Sulphide Sulphur Chloride Triphenyl Phosphate Vat Dyes AGRICULTURAL Arsenate of Lead Bordow Calcium Arsenate Carbon Bisulphide Caustic Soda Charcoal, Gronulated DN-Dust Dowfume Dowax Dowspray Dormant Ethylene Dichloride Ethylene Oxide K-383 (Fly Spray) Lime Sulphur Mognesium Arsenate Methyl Bromide "Mike" Sulfur Paradow Paris Green Phenothiazine Special Garden Sprays Sulphur Dioxide DOW CHEMICALS IN INDUSTRY -- A PARTIAL LIST -- pharmaceutical and AROMATIC Acetanilid, Tech. Aeetonilid, U S. P. Acetphenetidin, U. S. P. AllyI Bromide Ammonium Bromide, U. S. P. Ammonium Chloride Aniline Antipyrene, U. S. P. Bromoform, U. S. P. IX Cadmium Bromide, U. S. P. Colcium Bromide, U. S. P. Camphor, Monobromated, N. F. Carbon Tetrachloride, C. P. Chloroform, U. S. P. Coumarin Diphenylmethane Diphenyloxide Dowicides Epsom Salt, U. S. P. Ethyl Bromide Ethyl Chloride, U. S. P. Ferric Chloride, U. S. P. Glycine Indol Iodine Isopropyl Bromide Lithium Bromide., N. F. Mognesium Bromide Methyl Anthranilate Methyl Phenyl Corbinyl Acetate Monochlorocetic Acid Phenol, U. S. P, Phenol Sulphonates Phenothiazine Phenoxy Acetic Acid Phenyl Ethyl Alcohol Potassium Bromide, U. S. P. Salicylotes Acetyl Salicylic Acid, U. S. P. Ammonium Salicylate, U. S. P. Antipyrene Salicylote Ethyl Salicylate Ethyl Salicylate Carbonate Magnesium Salicylote Methyl Salicylote, U. S. P. Salicylic Acid, U. S. P. Sola!, U. S. P. Sodium Salicylate, U. S P. Strontium Salicylate, N. F. Sodium Acetate, U. S. P. Sodium Bromide, U. S. P. Strontium Bromide, N. F. Styrene P-100 Tetrachlorethylene, Purified Trichloracetic Acid, U. S. P. Trimethylene Chlorobromide WATER PURIFICATION AND SEWAGE DISPOSAL Ammonia, Anhydrous Carbon, Activated Chlorine, Liquid Ferric Chloride ELECTRICAL Carbon, Activated Dowicides Hordwood Pitch Trichlorbenzene Styron LUMBER Creosote Oil Dichlor Diphenyloxide Dowicides Orthodichlorbenzene f ST0 0 n3 73 2