Document ymE0eMkJ1ZJYQadwyXEzqXRE2

/:.. ft j u c eo a t t h e n a t io n a l ac h i I fn-'.-yr, * < .: 'L-. .'^say Tt>.. ,!V' :-V 'WVV^TT `&&nS'cJ' v- -r; ; ' tOeIx*eXcOu*t*iveCToArVrCi.cPHwLWL ebCvClANO.CMiO 77/r $*e*iirt**W\ utew^x i*. m.-M I : . -' - * t 27, 1942 I fr. H. F. Taggart ,1 : Director Accounting Division, Office of Price Administration, Laeliington, 0. C. i it i n*i' ' ' Dear Sirs . -i.ge V'fi ihd&tb; ji.ii, w On July 16th you granted ue peraieeion-to withhold flltdjf of ' "Industry Cueatiorinaire for Paint and Paint Produote," but at the urgent request of ;Mr. E. T. Trigg, President efthe'Hatiatoal Paint, ' tarnish and Lacquer Association, we are filing*herewith, the schedules recurw ted for The Shenrin-Willianw Coop^Ay/ls t Acme White Lead & Color Works, :" The Lose brothers Connany, . John Luoae Company, , " The aartin-Senour.Company.AjiO' noet labor ad iV'H HlgSr {**-.. - Lee pest /*jjr In submitting these schedules, `we'fe'dlethat weaedein jpisition to ofjvr n analysis of present costs and profits which should be hel^. "ul to you in conNidering the position of the Paint and Varnish Industry in i-a.-j im to ths groan profit nargln. > *`< 1 ' i .; ChU- i - a:. ;:.ad >.**;..,* fcai.u *f-et From deti contained in the attaehed sehedule,you Till' oburre Ut during the years ending August 31, 1989f*1940--end^l941; ourlgrgse^ profit was as followas ! : -fcvw.SG u. vC ia.s : of ^ The Shei-win-Willlama Co. . '.1 ;im in- ss.iK Acne Klilt-e- Lend It Color Worki-"'i 'sca^t- >6a>- Tne Lowe'Erothars Co. ' '-ng 1B8TL4W* Ji39.Sii John Lucas 4 Co. > ' ueSS'.O'. `34.1 |. The hertin-Senour Co. I . ...-.iUS4.4* i i34.8*a 3S.S tiiit JSCSee 3SM' Vie are not. yet in possession of faots relating to 1942, as ' "' our year ends August 31. ' However, astinstee-which werare this to Beks * i-o in extensive'record and review-of cost>` oft raw materials, packages, ' laror (.d expenses, indicate a serious deoline in margin of gross profit. ; . i??s .* l ., Haw hsterlale . * Frois our, rteords reflecting the rite and fall in costs tad markets of rsw ahteriNls used In the produotlon of paint 'and paint iirrauiots, we observes ; iw b j. ,f n ,.1 . SWOPA000002I (.r 1. 'Ill* weightMt average ictiml eot of raw materiala, Kepte-nbcr 1 41 itrough larch 31., 1942, hu increased ovr.r the weighted average coat of our fiscal year ended August'S!, i54l _____ 15.37$ - . iii i _hitrii average currant market of raw sitteri-Is *t torch 31, 1.242, compared to tha average actual cost during the year ended Auguat 31, 1941, hf.n Inure-sod ______ 29.56$ 2. Aa a result or tha foregoing feeta, our weighted average coat of rnw material# used in tha production of Print enl paint Products during 1942 will ba ap-u-u>i'iiteljr 20.f'/ higher than in 1941. - r-ir.-ctji'i-i * Labor & frxnenas t'ur to tn-iranaes in hourly rataa, tha cost of labor and !'. r gallon of output has innrasaad 5$. Over tha past year or hourly rates hove increased 20 to 21$ and the increased output V.; not offset tne advancing coat of labor. su-ri;at pricau of raw materials advanced eherply during this fine-i y->r. Aa indicated above, tha weighted average March market coats or raw material* wars 29.S$ higher than tha average eoet of _ '-teri-iH nut into production lent year. Beeause of forward buying, ont of raw materia la used in production lags 60 to 90 deya back of nsr-et* and to ora now definitely In 5 coat period whan the currant v-erhet coni a ra determining bur post of nroduotlon. Consequently, o-'i-rgin of groaa profit from this tins forward is reduced to rpoi*o, liftwl.ely 5.f.$. he have had but one inereaaa in aelling price 'I i- ;e r, which t-versped 6.4$. This increase in selling pries does i.n- -iiY: j i -tie incro-aad cost, of raw materials, eo witnaasad by tha folio* lr- lnui fionsi ' .t 1. r.- -" Mi'-i- le represent. 74$ of coot of Paint and Van-ie-i lillml output _ 74$ X 9.6$ . 21.75$ : . !.: 1 iti* i-ud hxiMnue represents 18$ of coat of Paint n-nim rillnit output - 16$ x 5$ ***.*<3 4*0t oi* P*lm >nd \*rnih Production -20$ 1 "7 > # fV ' r 3 St H i iv.' Price was increased 8.4?; therefore, praaant ..elHu Price coupar*d to 1941 la $108.40; ftO-.iO - $30.50 $27.90, or 25.555 Groaa Profit . n-: Pi Th u s e have <t sharp oacllna In groaa profit on Paint Pro: .ct* us followai I Year ended Aupust 31, 3541 - 34.3? Current Actual Coat - - 25.5? r.e believe ttiie condition to ba representative of the Feint nr.iJ Varnish Innustry as a whole. Salaa during the past three Jinn i.he hove fallen off sharply and ua are now`in a position mr.rn conniilaration muot bs given to an increase in selling prioaa. Yours very truly, THE SHERWIH-fSILLIAhS CO., Ui.tf Coaptroller. I