FINANCE
W A L L STREET OF CHEMISTRY Harshav/ Chemical's fiscal y e a r shows 1 0 % setback in sales and 4 0 % decrease in net profits . . . Allocations and controls partly to blame XJTARSHAW Chemicals annual report, for the fiscal year ended. Sept. 30, re vealed that sales were d o w n approxi mately 109c and net i n c o m e decreased by about 4 0 % from the previous fiscal year. T h e total sales figure w a s $43,076,964, c o m p a r e d with over $ 4 7 . 5 million w o r t h of sales during t h e year before. Net income, which also includes $530,0 0 0 of refundable taxes from t h e previous year, a m o u n t e d to $867,869. I n the 1951 fiscal year, net income totaled $1,456,679. In addition to the lower sales level, profits were adversely affected b y increased expenses, lower prices for some of Hars h a v / s products, while costs of producing other products went u p a n d price control p r e v e n t e d an increase in t h e selling price or at least an inadequate one. Allocation of some r a w materials, particularly i n the electroplating field, also affected earnings. After preferred dividends, t h e company e a r n e d the equivalent of $2.37 for every s h a r e of common stock. D i v i d e n d s o n the c o m m o n a m o u n t e d to $1.60 a share. The c o m p a n y k e p t $224,263 o f net income to b e p u t back in t h e business. In October 1951, H a r s h a w sold $4 million w o r t h of convertible preferred stock to p a y for expansion. T h e expansion p r o g r a m is not progressing as rapidly as anticipated. At t h e e n d of the year, H a r s h a v / s cur r e n t liabilities were $ 3 , 8 7 7 , 1 8 3 and cur r e n t assets w e r e $17,413,374. The longt e r m debt of $3.8 million 'was r e d u c e d by $300,000 d u r i n g the year. Total capital expenditures amounted t o $821,523 and provision for depreciation and amortiza tion $423,330. Net p r o p e r t y , plant, and e q u i p m e n t stood at $ 6 , 2 1 4 , 5 6 7 on Sept. 30.
Du Pont to G e t $29 M i l l i o n Adjustment on World W a r II Taxes D u Pont h a s announced that the Government, h a s determined t h a t the com p a n y w o u l d receive a t a x adjustment of $29 million for the y e a r s 1940 t h r o u g h 1945. T h e refund a m o u n t s to about 6r/o of t h e company's total taxes d u r i n g the W o r l d W a r . T h e refund was allowed in accordance with a provision in the W o r l d W a r I I excess profits tax law w h i c h per m i t t e d a company to claim a tax d e d u c tion on t h e basis of n e w p r o d u c t s and n e w capacity. Broadly speaking, t h e excess profits tax w a s imposed on the amount b y w h i c h a company's wartime earnings e x c e e d e d its average a n n u a l earnings d u r i n g the years 1936 to 1939. One section o f the law, however, called for an addition t o the average earnings for those years t o the V Ο L U Μ Ε
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extent t h a t t h e company could demon strate t h a t , b e c a u s e of the introduction of n e w products a n d increases in capacity during those years, t h e actual p r e w a r earn ings did not a d e q u a t e l y measure the nor m a l nonwar e a r n i n g p o w e r of the taxpayer. Unless such an adjustment were allowed, the excess profits tax rates of 80 to 8 5 % , rather than the n o r m a l rate of 4 0 % , w o u l d h a v e b e e n applied to e a r n ings not attributable t o war economy. D u P o n t said it h a d little or no earn ings d u r i n g t h e 1 9 3 6 - 3 9 period from nylon, w h i c h was developed d u r i n g the 1930's b u t not produced commercially until l a t e in 1939. Accordingly a s u b stantial p a r t of t h e adjustment results from an estimated a m o u n t b y which the com pany's a v e r a g e earnings for the 1936—39 period would have been increased if nylon h a d been in commercial production during t h a t period.
Closing M a r k e t Prices At t h e close of business on D e c . 2 9 , the stocks mentioned a b o v e w e r e quoted as follows:
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PROTECTION
EQUIPMENT
A record n u m b e r of employees of D o w Chemical, its subsidiaries and associated companies subscribed for approximately 150,000 shares of D o w common stock under t h e fifth a n n u a l employee stock p u r c h a s e plan, c o m p a n y officiais a n n o u n c e . With employment being higher t h a n a year a g o , about 9800 employees, or 4 4 % of the 22,300 employees eligible to sub scribe, r e t u r n e d subscriptions. T h e com p a n y m a d e t h e stock available on a pay roll deduction basis a t a price of $31 per share, substantially u n d e r t h e market price. Payments for t h e stock will b e deducted from e m p l o y e e s ' paychecks beginning with t h e week of D e c , 15 and continuing into S e p t e m b e r 1953. Subscribers a r e re quired t o m a k e payments t h r o u g h payroll deductions until April 6 after w h i c h they m a y p a y the r e m a i n d e r of t h e purchase price i n a l u m p sum if they desire. As i n past years, employees w e r e eligible t o subscribe for stock totaling not more t h a n 1 0 % of their annual w a g e or salary. T h e p l a n calls for deduction of 8 0 c e n t s a week for e a c h s h a r e subscribed. Sub scribers may cancel their subscriptions or reduce them to a lesser number of shares, b u t n o t less t h a n t w o shares, d u r i n g the p a y m e n t period.
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ACME
Dow Employees Subscribe T o 1§O8000 Common Shares
Harshaw, common Dow
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C O M P A N Y
3037 West Lake Street, Chicago
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FREEZE-rRGGF Steam Traps 7$ for Every Plant Use
Drain com pletely when cold. W i d e l y used outdoors, and in spaces which need not b e kept heated. Pfbct faster heat-up because of their 2 to 6 times average drainage capacity. 4 types for every process, heat, power use/ size % * t o 2"; press, to 2 5 0 lbs. B t U l e t i s 152.
V.'lii NICHOLSON i r a i TRAPS VALVES FLOATS 1 8 6 O r e g o n St., V/ilkes-Barre, Pa. 101
