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THE

Dow

CHEMICALCOMPANY
MIDLAND,MICHIGAN

i

ANNUAL

REPORT

FOR YEAR ENDED MAY 31,1941

( Incorporated Founded

in Michigan in 1897

1

Executive Office New York Office Chicago Office St. Louis Office Houston Office San Francisco Office

-

Second -

Midland, Michigan 30 Rockefeller Plaza Field Building and Madison Streets Commerce Building 310 Sansome Street

Midland Plants-Midland,

Division Michigan

Great San Francisco Office Seattle Office Los Angeles Office Plants -

Western -

Division 310 Sansome Street 1201 Textile Tower 415 1 Bandini Boulevard

Pittsburg, California Seal Beach, California Venice, California

Texas Plant -

Division Texas

Freeport,

Subsidiaries Dowel I I ncorpora ted Executive Office General Office Dowell, Cliffs S. A. Dow Chemical Executive Office General Office Midland Ammonia -

-

Kennedy -

Midland, Building, Tulsa Tampico,

Michigan Oklahoma

Tamps-Mexico

Company -

-

Midland, Marquette,

Michigan Michigan

Company -

Office

and Plant

-

Midland,

Michigan

Associated Ethyl-Dow Chemical Office Company -

Company

General

Wilmington, Carolina

North

Carolina

Plants-Kure Beach, North Freeport, Texas

THE DOW CHEMICAL
MIDLAND,

COMPANY

MICHIGAN

Directors E. 0. W. BARSTOW H. DOW W. L. I. DOAN G. E. COLLINGS C. J. STROSACKER J. S. CRIDER E. W. J. T. BENNETT PARDEE

R. VEAZEY

Officers Chairman President Vice Vice Vice Vice of the and Board and Manager Secretary L. A. G. M. A. G. J. T. W. J. T. E. W. PARDEE H. DOW

General

President President President, President

E. COLLINGS PARDEE BENNETT L. I. DOAN J. S. CRIDER P. BEUTEL BROWN CHICHESTER F. H. R. L. CURTIS

Sec’y and Treasurer General Manager Secretary Assistant and -

Sales Manager

Assistant Assistant Auditor Assistant Assistant Assistant Assistant

Treasurer General and Auditor Secretary Secretary Auditor Assistant

McGRANAHAN

D. J. LANDSBOROUGH

Registrars The New York 100 New The National Trust Company

Broadway York City of Cleveland

City

Bank

Cleveland,

Ohio

Transfer Guaranty Trust 140 New The Cleveland

Agents of New York

Company Broadway York City

Trust

Company

Cleveland,

Ohio

-TO THE THE STOCKHOLDERS DOW CHEMICAL OF COMPANY:

The forty-fourth annual 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 5 Sells, whose certificate is reproduced as part of this report, / FINANCIAL STATEMENTS-

The consolidated balance sheet May 31, 1941, statement of consolidated income for the year ended May 31, 194 1 and statement of consolidated earned surplus for the year ended May 3 1, 1941 are 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 amounted to $13,877,532.70, compared with $5,151,315.07 last year. The ratio 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. EARNINGSThe consolidated net income of the Company and its Subsidiaries for the year ended May 31, 1941 amounted to $7,770,547.1 1. After deducting dividends on the preferred capital stock of $300,000.00, the consolidated net income was equivalent to $6.58 per share on the number of shares of common capital 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 year 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 and Federal income and excess profits taxes of $1,999,248.34. DIVIDENDSYour Company distributed four equal quarterly dividends, aggregating $3.00 Including dividends on per share, to the common stockholders during the year. the preferred capital stock of $300,000.00, the dividends disbursed to shareholders amounted to $3,628,16 1.75. NEW CAPITAL-

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 amount 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 21/..% debentures due September 1, 1950 in the amount of $7,500,000.00 and serial debentures in the amount of $7,500,000.00 which mature in amounts of $750,000.00 annually from September 1, 1941 to September 1, 1950 and which bear varying low rates 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 share for each ten shares held. The new shares were sold for $10,339,437.50, which was credited to the capital stock account. This increased the number of common shares outstanding to 1 ,135,187.

SURPLUSThe net increase in consolidated earned surplus for the year amounted to $3,941,289.28, bringing the consolidated earned surplus as of May 31, 1941 to A charge against surplus of $201,096.08 was made during the $18,933,844.35. year because of the retirement of the previously outstanding 15 year 3% debentures. NET SALESended May 3 1, 1941 amounted to $46,907,950.27, for the year ended May 31, 1940.

Net sales for the year as compared to $37,743,546.64 PLANT AND PROPERTY-

Additions to plant and property amounted to $32,382,988.87 during the The major expenditures were for additions to existing year ended May 3 1, 1941. 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-year basis. The amortization provided on completed projects this year amounted to $406,8 17.53. Not reflected in our property accounts is the current construction of a United States Government plant located adjacent to our Midland plant, which will be operated under our direction. In Texas, an addition to the original Magnesium plant was built and financed by the British Government. A British expansion was also made to the Midland Magnesium plant. A second addition, which will double the capacity of the Texas Magnesium plant, is now under construction. This is financed by the Defense Plant Corporation, a subsidiary of the Reconstruction It is estimated the total cost of the above projects will be Finance Corporation. approximately $13,000,000.00. TAXESTotal an equivalent GREAT major taxes for the year amounted to $3,543,903.70, cost per share on common stock of $3.12. DIVISIONwhich represents

WESTERN

Demand The Great Western Division plants are operating most satisfactorily. for all of the products is steady and increased capacities have had to be added ta 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 radical new departure from standard practice, since natural gas is used as 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. and Our Iodine plant was moved provides increased capacity. DIVISIONfrom Long Beach to Seal Beach, California

TEXAS of

The plant at Freeport, Texas has been generally publicized for the production For Magnesium production in Texas, we pump raw ocean water, Magnesium. precipitate Magnesium Hydrate with Lime made from oyster shells and produce Magnesium as ingot metal,-actually the first time in the history of the world where metal is produced commercially from raw ocean water. This is unquestionably another milestone in scientific achievement. It is not unfair to mention that The Dow Chemical Company also accomplished a previous recognition when Bromine was extracted commercially from raw ocean water for the first time in 1934 at Kure Beach, North Carolina. Also in Texas, we are now producing Ethylene Glycol, Ethylene Dichloride, Caustic Soda and Chlorine from raw materials readily available at our plant.

GENERALThe activities, sion financing of common from capacity will foregoing and last the information facilities, briefly requiring summarizes indicate some of our more funds important expanand new

financial

statements

the results

of a considerable of current

in manufacturing October capital

the utilization

in the form of the sale of debentures and additional shares While this plant expansion program has in part resulted stock. for National Defense, the major portion of the increased of chemicals salable after the termination of the management, the expansion program result in permanent future benefit to the

the present

activities

be used for the production In the opinion of the emergency period. is being Company. MAGNESIUM HISTORYagainst Act, followed

on a sound basis and will

In view of the indictment violation Company of fact, of the Sherman in its early the historical of our stockholders a portion history activity

the Company

and two of its officers

charging

Anti-Trust

it seems proper to review The activity of The of our history. much as it has in recent of our Company

for the benefit Dow Chemical a matter

proceeded

years,-as

is a fair cross-section of the history Our activity has always consisted of the Chemical Industry in the United States. of research, development, buildings, expansion, new products, new application, new products again and more buildings4t-r unending cycle of change and growth. At the beginning of World War No. 1, we had developed a good stride in Our Company was then a leader in the rapidly growing Chemical this direction. Industry of that day. For a number of years prior to World War No. 1, we had 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 Our Company rushed the construction of a plant. The big use for from Germany. 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 Actually, 1914 marked the culmination of many years of in a time of emergency. We became established in the Magnesium Chloride experimentation and research. throughout the many years since has business,+ new product for us, which represented a substantial volume of business. With Magnesium Chloride in production, our Company looked with fascination 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 Producing and marketing a metal ourselves in commercial production until 1918. was an entirely new enterprise with us, as heretofore our whole activity had been and sale of inorganic and organic chemicals. concerned with the production Development of a metal Ii ke Magnesium meant the knowledge of its metallurgy A metallurgical staff began making alloys, after first and its possible applications. Alloying Maglearning how to make a metal that was capable of being alloyed. nesium with one metal in varying percentages, as well as determining the physical properties of these alloys, was a big job and then, to run the same gamut of testing on binary, ternary, quaternary and more alloys 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 sale until the present time, there has been a continual effort on the part of a large staff of engineers and research personnel to improve our process of production. Not a

single element of assistance in this whole process was contributed either domestic or foreign, outside our own Company organization.
to the and contrary is an of the insult and is unjust men who to the loyalty, our integrity, forethought industrious developed

by any Any

agency,

statement process

perseverance

manufacturing

for Magnesium

production. of Magnesium developed a to the and new, many proceeded, fabrication little of thousands More of simultaneously of salable metal the of Dowmetal applications were later In 1918, to the alloying resulted. and

As the production metallurgical addition, Giving which was still we due were experience were consideration successfully

products

introducing

known,

a skeptical automobile Magnesium had

In public.

pistons Industry

used by thousands enterprise. other Rolling

customers,

not a successful About this time,

and better fabrication a little to grow. flashlight and

to be found. such as die use about also

methods

started,

casting for

and extrusion. products, was elapsed

of sheet came uses began for sheet

and with A

a diversification period form of

of salable fifteen plicated followed Industry

permanent almost before die

the commercial in the

Magnesium years sand of

exclusively it became castings, in the early

powder.

accepted

commercially forgings. the

of com-

castings, Chemical during these

Successful status of the

welding

these developments. Dow

This was approximately 1930’s. of

Magnesium

Naturally, applications, that some of greatest European against ents.

the in

long years for many interference

development covering inventions in G. of the In Office. I. with was

of our of

this

product It

and

its our the patDow

we had

applied were

patents

experience. others, field U. all

follows

although with S. A. of the

interference interests suit

on patent in the United

applications States Patent of certain on the

fabrication 1932,

a lawsuit

was filed

us on alleged
This was

infringement finally settled

Farbenindustrie cross-licensing

basis

fubricufion putenfs owned in the United States with all of the U. S. A. fchricofion pufents of the I. G. and American Magnesium Corporation, a subsidiary of the
Aluminum Magnesium the of procedure, metal permitted infringement structive royalty of one nesium step on cent used There try. ican The first American development Industry made into The sulting from the per Company Development any and royalties there of in to of America, Corporation, and Aluminum paid is no restriction and of others, metal. of which patents States were owned and controlled owned by by a United organization jointly

I. G. Farbenindustrie

Company whatsoever use and the results

of America. on

for the use of the patents Magnesium

By this method of are paid by the manufacturer products it to Dow The This agreement without fear of have been a conno Company pays

production.

customers the

fabricate from of to the

patents production pound

prove

development

business.

The Magnesium

Dow Chemical Development Magnesium

Company Corporation parts. in the

pays a royalty on the Mag-

in the

manufacture

fabricated

are definitely is the The of the

two divisions

to be considered

Magnesium

Indus-

production Dow Chemical step,

of Magnesium, in any Company pure

development,

not assisted

which is a wholly respect by any European is very proud of its

Dow Chemical or other Amerrecord in the

interest.

production

of Magnesium. where

is the fabrication usable products,

The second phase of the Magnesium Magnesium Metal is alloyed and then termed “fabricated”. general times public, during apparently the past reyear

or as generally in the and

incorrect

impression

minds

of the

statements

publicized

reprinted

many

concerning

the status The for

of the Magnesium production fabrication that the from

Industry

in

America, is the step. iron and into

has first The

been step. same or

extremely The to final our as in the water. the ingot

distressing to us. use of the metal Steel The Industry, of iron then manufacture pig and to bear steels, the production where proper metal sary picture,

of Magnesium purposes reduces the ore

Metal to pig

is the second from and native plate made

plant

is comparable ocean other alloys usable we take

metal

salts raw our and are

obtained material phase fabricate

brines

of steel products, is taken proceed that no as the with there to alloy

such as boiler

products, the

to produce

is comparable in mind

of operation, steps in

where the

it into usable

products. complete

It is necesMagnesium

two distinct

1, Production has been

2. Fabrication. limiting control parts. been in large. in the sale or production Our selling have possible expense retained uses We projects in Texas estimated was general last twelve Dowmetal of the an with Early metal, considin long we various a

There either erable as ingot and

metal ten

or as fabricated costs have to assist these and years

has been the

development for agencies before

engineer

Washington Government started nesium. specific tions

developing

development conclusions new plant agency of 1940 the and

necessarily in anticipation the approval months

require

series of tests

satisfactory of a large any the

can be determined.

in 1940, of

the construction Not until

of increased Magthe for certain been applica-

requi remen ts, before Government

government late spring

requirements made has there

uses and only within

urge to use more and more Magnesium required for defense was started by the United This Plant latest Corporation to grant for in the the an addition requested duction. Defense

alloys

in the various

However, before the Texas plant was completed, purposes. and shortly thereafter we were for the Bri tish Government States Government is now to double the capacity completion, The Recently, metal of the Texas operating proa is approaching States. under

addition

contract.

As of this date,

Dow Chemical knowledge by the has

Company

the only producer by the Government of other

of Magnesium

in the United

we have been asked to a number Electrolytic its willDow

a license and supply production The Dow Chemical of National

engineering Company

companies Chloride to do this

of additional Defense.

Magnesium ingness

process.

expressed

interests

ACKNOWLEDGMENTThe number abnormal the Board of Directors for the extra and wish to publicly unusual they effort, express loyalty their and appreciation perseverance when to the large during these for and

of employees times, talent

who have shown capabilities

the responsibility invariably

for the work show

in hand we have

unfailing

difficult

The large sums we continually spend for research are justified problems to handle. constantly confronting us. It is time after time in the solution of many problems only able often through expected constant of it. effort and highly skilled growth training and meet that the our Company unusual has been so to achieve its record of abnormal conditions

WILLARD Midland, July 25, Michigan 1941

H.

DOW,

President

NOTICE Information for The for pany fiscal Dow presented 1931-l years on the 937 following only; Dow graphs apply information the ConComto

years Chemical

inclusive, from

Company of The

subsequent and

is prepared

solidated

Statements

Chemical

its subsidiaries. per share based on 945,000 Shares

Earnings common 1939

stock based

up to 1939. on 981,245 Shares--average num-

ber shares 1940

outstanding. on 1,031,988 Shares Shares outstanding. outstanding.

based

1941 based

on 1,135,187

The The

graphs

appearing

in this

report the

are not

to of

be reproduced

or used without Company.

permission

Dow Chemical

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MAGNESIUM’

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HASKINS
CERTIFIED PUBLIC

&

SELLS
THE NATIONAL SANK BUILDING

ACCOUNTANTS

CI”IL N.O”LCOCI.C.l?*.

DETROIT

The Dow Chemicalcompany: balancesheet of The Dow Chemical Com~eny and its subsidiary colqpanies of Nay 31, as 1941 and the related statements consolidated income and earned of
surplus for the year ended that date, procedures records of the ccmpanies, have reviewed the accounting accounting statements. accepted all auditauditand have examined their with generally We have examined the consolidated

and other evidence in support of such financial in the circumstances necessary,

Our examination was made in accordance ing standards apglicable ing procedures by tests internal we considered

and included

which procedures

were applied

to the extent we deemed appropriate control.

in view of the systems of

In our opinion,
the financial of their generally basis condition

the accoqpaoging

consolidated

balance

sheet present with on a

and statements of consolidated operations accested

income and earned surplus fairly in conformity applied

of the companies at aday 31, 1941 and the results principles and practices year*

for the year ended that date, accounting

consistent

with that of the preceding

July 18 S 1941.

THE DOW CHEMICAL
( Incorporated

COMPANY

in Michigan)

AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET, MAY 31, 1941

ASSETS
CURRENT ASSETS: ’ Cash __--____----_----------------------~-~------~--~~~ United States Treasury bonds, 33/4% - at cost (face value, market value, $226,187.50) ----_----______-$200,000.00; Notes and accounts receivable : Customers, $5,723,927.48; associated company, $128,508.33; employees, $20,050.35; and ------------------sundry, $139,889.33 $ 6,0 12,375.49 Less reserves for doubtful receivables _--_-__-207,217.05 Billed and unbilled amounts receivable from agencies of the States Government for plant construction --_-----------_-_-Inventories: Finished goods and work in process (at lower of cost or market) _----_--_----------_Mazari;k:)and supplies (at cost--approximately ----------------------F--m--Total current assets --_--___-_---------_------------INVESTMENTS AND MISCELLANEOUS RECEIVABLES: Notes receivable and capital stock (at cost) of associated company (equity at May 3 1, 1941 as shown by unaudited balance sheet of associated company, $3,304,964.93 1 ----------------lnstalment notes receivable, maturing 1942 to 1948 Miscellaneous securities and receivables (less reserve, $46,698.42 1 --w--w----------------Total investments and miscellaneous ASSETS HELD FOR OTHERS UNDER TERMS PLANT CONSTRUCTION : Cash Plant -_--_------------------------------property costs incurred (net) ---------m-w United 582,821.05 $ 3,892,077.26 2 17,750.oo

5,805,158.44

$ 4,077,623.47 3,352,291.58 7,429,9 15.05

$17,927,721.80

$ 2,238,OOO.OO 500,000.00 5 18,425.69 3,256,425.69

receivables ---___-_-OF CONTRACTS FOR $ 337,978.53 1,721,780.28 1

Liability

Total __--_----_---_-_------_-___ for funds advanced - __--------------

$ 2,059,758.81 2,059,758.8

PROPERTY (including emergency facilities for national defense, completed and in progress, with a gross book value (cost) of $13,371,405.91 subject to amortization) : Plant properties and equipment-at cost (less and amortization, for depreciation reserves $22,335,421.66) --_-----_---_-----m---wHousing properties--at cost (less reserves for depreciation and amortization, $7 1,551.29) ---__ Patents---at cost or nominal value (less reserves for amortization, $43,347.23 1 ---------------Total property -__-___-_---_------------------------

$57,836,292.12 928,3 16.05

72,427.17 58,837,035.34

DEFERRED CHARGES-Unexpired insurance premiums, unamortized debenture discount and expense, deferred cost of power facilities, and miscellaneous --_________-___---------------------------TOTAL ---______________---------------------

529,437.47 $80,550,620.30

THE -DOW CHEMICAL
( Incorporated

COMPANY

in Michigan)

AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEET, MAY 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) ________ - ____ - _____ I an terest ---------------------------------------------. Sundry ----------------------------------------------Total current liabilities -- _____ - ____ --_---_---_______ $ 4,200,OOO.OO 4,67 1,199.60 2,015,597.87 635,850.OO 750,000.00 645,822.35 820,501.84 7 1,265.20 67,295.84 $13,877,532.70

FUNDED DEBT: Ten year 2% % debentures, due September 1, 1950 Serial debentures maturing in the amount of $750,000.00 on September 1, 1942 and annually thereafter until September 1, 1950 (debentures maturing in 1941 included in current liabilities)

$ 7,500,OOO.OO

6,750,OOO.OO . 14,250,OOO.OO 368,085.12 875,634.64

Total funded debt ---------------------------------RESERVES FOR FIRE AND ACCIDENT LOSSES, DAMAGE CLAIMS, AND CONTINGENCIES __-____-_____-___ - ____ ---_---_----_ MINORITY DEFICIT INTERESTS IN OF SUBSIDIARY CAPITAL COMPANIES STOCK AND SURPLUS a__--___---_----__--__ OR

CAPITAL STOCK: Preferred capital stock-5% cumulative (authorized and outstanding, 60,000 shares of $100.00 par value each) ------------------------Common capital stock (authorized, 2,000,OOO shares without par value; outstanding, 1 ,135,187 shares) -------------------------------Total capital stock _---__---_---_-----___

$ 6,000,000,00

26,169,046.83 _____ - _____ 32,169,046.83

SURPLUS: Capital surplus (decreased during the year ended May 3 1, 1941 by expenses in connection with sale of additional shares of common capital stock, $24,255.73) _- ________ ---L----em-Earned surplus Total - ____ -_-___-______ -------__

$

76,476.66 18,933,844.35 19,010,321 .Ol

surplus

--------------------------------------

TOTAL

--------------------------------------

$80,550,620.30

THE DOW CHEMICAL

COMPANY

AND SUBSIDIARY COMPANIES /
STATEMENT FOR THE OF CONSOLIDATED YEAR ENDED MAY 31, INCOME 1941

SALES COST GROSS SELLING

(net of returns, OF SALES PROFIT AND

allowances,

cash discounts,

and freight)

___-__

$46,907,950.27 32,957,4 12.88

_______-_____--_--_-____________________--__________________-_____________________----

$13,950,537.39

GENERAL

EXPENSES: expenses expenses --------_---_ _----------$3,642,865.70 2,262,697.07 ___________ 5,905,562.77 $ 8,044,974.62

Selling

and administrative and experimental OPERATIONS

Research PROFIT OTHER

FROM INCOME:

____ ------_--------__-

Dividends, from Other GROSS INCOME Interest Other

$1,9 13,236.00, company earned,

and royalties,

interest, and

$90,623.37, $2,003,859.37 235,377.25 2,239,236.62 $10,284,2 1 1.24 miscellaneous

associated interest

___________________

INCOME

________________________________________---

CHARGES: and interest amortization expense, of discount loss on -_-_ and expense $ disposal of fixed 88,641.76 INCOME AND $ 9,925,691.55 TAXES: 40,4 15.80 FOR MINORITY INTERESTS $ 7,926,443.21 COM155,896.lO $ 7,770,547.1 1 1,999,248.34 358,5 19.69 -_--_--__-_---_ 269,877.93 ----------------------------

on debentures

assets, and miscellaneous

NET INCOME BEFORE PROVIDING FOR FEDERAL EXCESS PROFITS TAXES ---------------------------------PROVISION Normal FOR FEDERAL INCOME AND EXCESS

PROFITS

tax -------------------------------Excess profits tax --------------w-w---------INCOME BEFORE ADJUSTMENT

$1,958,832.54

NET IN

SUBSIDIARY

COMPANIES SHARE

-----------------------------OF PROFITS OF SUBSIDIARY

MINORITY

INTERESTS’

PAN I ES -----------------------------------------------NET INCOME FOR THE YEAR --------------------------------

NOTE:

The provision for depreciation and the amortization (OS provided under the Second Revenue Act of 1940) of emergency defense facilities charged against income for the year ended May 31, 194 1 amounted to $3,370,025.52 and $406,8 17.53, respectively.

THE DOW CHEMICAL

COMPANY

AND SUBSIDIARY COMPANIES
STATEMENT OF CONSOLIDATED YEAR ENDED EARNED MAY 31, SURPLUS 1941

FOR THE

BALANCE, CREDIT-Net

JUNE

1, 1940

----------I----------------------------------------------------

$14,992,555.07 7,770,54X $22,763,102.18 11

income Total

for the year

----------------------------------------

CHARGES: Cash dividends Common Preferred : stock stock - --_---_ ____________ $3,328,161.75 300,000.00 $3,628,161.75 and 20 1,096.08 3,829,25X83 $18,933,844.35 _~~__~~__-~-_~___-___ ------____________ discount debentures capital capital Total Redemption expense retired BALANCE,

dividends

premium

and unamortized

relating to fifteen year 3 % _---__---______~_-~~_____________ MAY 3 1, 1941

-----------------------------------

DOW
AUTOMOTIVE AIRCRAFT AND

CHEMICALS
A PARTIAL

IN
LIST Sodium Sulphur -

INDUSTRY
Sulphide Chloride Potassium Hexyl Ethyl Amyl Xanthate Butyl Chloride AND Xanthate Xanthate Isopropyl Furfuryl Xanthate Xanthate Xanthate

/

Carbon Tetrachloride Caustic Soda Dowmetal Ethocel Ethylene Glycol Methanol Perchlorethylene Thiokols

Xanthates F Reagent, Potassium Z-3, Z-4, Z-5, Z-6, Z-8, Z-9, Zinc PAINT,

Xanthate Xanthate

Potassium Sodium Pentasol Secondary Potassium Potassium

Ethyl

EXPLOSIVES
Ammonia Aniline Charcoal, Pulverized Diethylaniline Diethylene Glycol Dimethylaniline Diphenylamine Hexachlorethane Monochlorbenzene Phenol

Ammonium VARNISH

LACQUER Acetic Carbon Acid Tetrachloride Glycol

B is Phenol -A Cyclohexane Diethylene Dowicides Dowtherm Ethocel Ethylene Dichloride Methanol Methocel Methyl Acetone Methylene Chloride Orthodichlorbenzene Phenol Plasticizers Propylene Dichloride Styrene Thiokols Triphenyl Phosphate

LEATHER
Carbon Tetrachloride Dowicides Epsom Salt Ethocel Iron Liquor Methocel Salt Sodium Acetate Sodium Sulphide Sulphur Dioxide

MINING

AND METALLURGY

PAPER
Carbon Tetrachloride Caustic Soda Chlorine, Liquid Dowicides Dowtherm Ethocel Methocel Plasticizers Sodium Sulphide Zinc Hydrosulphite

Acetylene Tetrabromide Ammonia Ammonium Chloride Chlorine, Liquid Dehydrating salt solutions Ferrous Chloride Flotation Oil (Wood Creosotes) Mining Salts Muriatic Acid Perchlorethylene p-Phenol Sulphonic Acid

DOW
PETROLEUM
Ammonia Calcium Chloride Caustic Potash Caustic Soda Diethylene Glycol Dowel I Products Dowicides Dowmetal Ethylene Dibromide Inhibitors Muriatic Acid Phenol Sulphur Dioxide

CHEMICALS
A PARTIAL

IN
LIST -

INDUSTRY
lndol Methyl Anthranilate MeA!;:aPienyl Carbinyl Phenol Phenyl Salt

RAYON
Acetic Acid Carbon Bisulphide Caustic Soda Dowicides Epsom Salt Ethocel Methocel Muriatic Acid Sodium Sulphide

Ethyl

Alcohol

TEXTILE
Acetic Acid Ammonium Chloride Calcium Chloride Carbon Tetrachloride Caustic Soda Chloroform Dowicides Epsom Salt Ethocel Ethylene Dichloride Indigo and Brom Indigos Iron Liquor Methocel Perchlorethylene Phenol Sodium Acetate Sodium Sulphide Sulphur Chloride Triphenyl Phosphate Vat Dyes

REFRIGERATION
Ammonia Calcium Chloride Ethyl Bromide Ethyl Chloride Methyl Bromide Methylene Chloride Methyl Chloride Salt Sulphur Dioxide

PHOTOGRAPHIC
Acetic Acid Ammonium Bromide Carbon Tetrachloride Ferric Chloride Hydrobromic Acid Iodine Monochloracetic Acid Phenol Potassium Bromide Sodium Bromide

RUBBER
Acetic Acid Acrylo Nitrile Ammonia Aniline Butadiene Carbon Bisulphide Carbon Tetrachloride Caustic Soda Charcoal, Pulverized Diphenylguanidine Ethylene Dichloride Hardwood Pitch “Mike” Sulfur Muriatic Acid Phenol Sodium Acetate Sodium Sulphide Styrene Sulphur Chloride Thiokols

PLASTIC

AND RESIN

Aniline Bis Phenol-A Carbon Tetrachloride Caustic Soda Charcoal, Airfloat Chloracetamid Diphenyl Dowtherm Ethocel Ethofoi I Ethyl Chloride Ethylene Dichloride Hardwood Pitch Methocel Orthophenylphenol Paraphenylphenol Para Tertiary Butyl Phenol Plasticizers Saran Styron Thiokols

AGRICULTURAL
Arsenate of Lead Bordow Calcium Arsenate Carbon Bisulphide Caustic Soda (ZzrDc) Granulated Dowfume Dowax Dowspray Dormant Ethylene Dichloride Ethylene Oxide K-383 (Fly Spray) Lime Sulphur Magnesium Arsenate Methyl Bromide “Mike” Sulfur Paradow Paris Green Phenothiazine Special Garden Sprays Sulphur Dioxide

SOAP
Phenol Caustic Potash Caustic Soda Coumarin Diphenylmethane Diphenyloxide Dowtherm

DOW
PHARMACEUTICAL AROMATIC

CHEMICALS
AND A PARTIAL

IN
LIST -

INDUSTRY

Acetanilid, Tech. ’ Acetanilid, U S. P. Acetphenetidin, U. S. P. Ally1 Bromide Ammonium Bromide, U. S. P. Ammonium Chloride Aniline Antipyrene, U. S. P. Bromoform, U. S. P. IX Cadmium Bromide, U. S. P. Calcium 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 I ndol Iodine Isopropyl Bromide Lithium Bromide, N. F. Magnesium Bromide Methyl Anthranilate Methyl Phenyl Carbinyl Acetate Monochloracetic Acid Phenol, U. S. P. Phenol Sulphonates Phenothiazine Phenoxy Acetic Acid Phenyl Ethyl Alcohol Potassium Bromide, U. S. P.

Salicylates Acetyl Salicylic Acid, U. S. P. Ammonium Salicylate, U. S. P. Antipyrene Salicylate Ethyl Salicylate Ethyl Salicylate Carbonate Magnesium Salicylate Methyl Salicylate, U. S. P. Salicylic Acid, U. S. P. Salol, 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 SEWAGE DISPOSAL
Ammonia, Anhydrous Carbon, Activated Chlorine, Liquid Ferric Chloride

AND

ELECTRICAL
Carbon, Activated Dowicides Hardwood Pitch Trichlorbenzene Styron

LUMBER
Creosote Oi I Dichlor Diphenyloxide Dowicides Orthodichlorbenzene