48

T”ANNUAL REPORT
FOR THE-YEAR ENDED MAY 31, 1945

THE DOW CHEMEMICAL COMPANY
MIDLAND MICHIGAN

.

The next annual meeting of stockholders will be held on Wednesday, August 22, 1945, at two o’clock in the afternoon (Eastern War Time) at the Company’s office in Midland, Michigan. A formal notice of the meeting, together with a proxy statement and form of proxy, will be mailed to each holder of common stock separately from but concurrently herewith, at which time proxies will be solicited by the management.

TO THE THE

STOCKHOLDERS CHEMICAL

OF COMPANY:

DOW

It is with satisfaction that in this, our 48th annual report of operations, we are able to look back upon the cessation of hostilities on the continent of Europe and a large increase in the tempo of the war against Japan during the fiscal In this mighty effort it has been the high privilege of your year just ended. Company to have taken an important and significant part in helping to supply the war materiel which has contributed to our military successes. And to the task that still remains to be accomplished, we dedicate our energies and our resources. FINANCIAL RESULTS-

The dollar value of sales for the fiscal year 1945 was the largest in the history of the Company and amounted to $124,570,200 representing a 3.44 per cent increase as compared with the previous fiscal year. The consolidated net income of the Company and its Subsidiaries amounted to $8,738,761 representing a 1.93 per cent increase over the previous year. Taxes amounted to $18,620,849 as compared to $16,583,000 for 1944. After deducting dividends of $1,215,476 paid during the year on the preferred capital stock, the consolidated net income was equivalent to $6.02 per share on 1,248,706 shares of common capital stock. This compares with $6.34 per share for the year ended May 31, 1944. After deducting dividends of $6,201,992 declared during the current fiscal year on the preferred and common stock, there remained $2,536,769 for general Company operations. During the year dividends amounting to $500,000 were received from an associated company as compared with dividends of $900,000 received from the same company during the preceding year. The earnings of this associated company were sufficent to permit the payment of equivalent dividends this year but a greater portion of its earnings was retained for expansion. EMPLOYMENTThe number of employees of the Company amounted to a total of 1 1,500 for the fiscal year, which represents only a slight decrease from that of a year ago. Wages paid out for the period amounted to $40,567,000. EMPLOYEES IN THE SERVICE-

As of July 1st of this year, 4,828 employees of The Dow Chemical Company and its Subsidiaries have entered the Armed Forces, many of whom have seen active service on battle fronts around the world. Eighty-nine of these have made the supreme sacrifice in the service of our country. ARMY-NAVY “E” AWARDS-

Since the beginning of the present emergency, the Company has received seven “E” awards in recognition of its contributions to the war effort, and in addition has received sixteen stars for its continued high achievement in the production of strategic chemicals. LABOR pletion RELATIONSIt is with a deep sense of pride that we are again of another year in which, since the beginning of able to report the comthe war, the operations

of the Company have not suffered from a single interruption due to labor disin its labor relations primarily The Company has been fortunate agreements. because management on one hand and the representatives of labor on the other have endeavored to make prompt settlement of labor problems, through grievance This willingness to cooperate on the part procedure, a matter of first importance. the only sound basis for successful of both parties concerned is, in our opinion, labor relations. , CHEMICALS ESSENTIAL TO INDUSTRY-

The Dow Chemical Company produces and sells hundreds of different chemical items. Variations of dozens of these multiply the total number again so that, in attempting to present an overall picture of our operations for the year to our stockholders, it would not be possible to give a complete picture in this brief letter. As a result, we have chosen to outline in a summary fashion the points of development of major interest, but at the same time request our stockholders to bear in mind that many products not specifically mentioned are as vital to our The outstanding and most sigoverall picture as those discussed in some detail. nificant feature about The Dow Chemical Company is that we start with basic raw materials, such as common salt, or ocean water, or natural gas or oil, and develop products from these sources which are in basic demand by all other manufacturers. Our manufacturing processes have much of romance but little of glamor. There are no long assembly lines, but instead, hundreds of storage tanks, miles upon miles of piping, and all sorts of intricate equipment and control devices which The highest quality products are the concealed assembly lines of molecular activity. come from these assembly lines but much of the glamor, unfortunately, is lost when we find the end product filling a common tank car, a barrel, or a drum. These are the products that turn the wheels of industry and make better living an actuality for the American people. MAGNESIUMMagnesium production and sale is one of the Company’s major operations. At the beginning of the fiscal year, all Dow-operated plants were in full production. During the year, however, government cutbacks were issued to reduce the country’s magnesium production rate. 1944, the Marysville-Ludington operaIn September, tion was discontinued, and the plants have since been maintained in standby condition. The Dow-operated plant at Velasco, Texas was shut down in January, 1945, but within a few months the military demand for magnesium again increased and in May the Velasco plant was ordered to resume production. During the past few years, constant changes have taken place in the magnesium industry, most of them effected by military and government operations, rather than by normal customer demand. In October, 1944, the War Production Board released magnesium from allocation because of its over supply. Manpower and fabricating capacity have not been as readily available, but this situation is now rapidly easing and the time is here when our customers can again begin to use the metal as they did before the war. In addition, we can now exert our efforts toward developing new fields of application. There is a high current interest among manufacturers in new materials, and particularly in magnesium. In March, 1945, your president appeared before the Small Business Committee of the United States Senate to make suggestions regarding the disposal of the government-owned magnesium plants. At the same time, illustrations of products which can be made lighter and better through the use of magnesium and which are adapted to manufacture by small business were presented to the committee. continue essa ry. The Company is still occupied with a large amount of war work and will to meet every possible demand of the armed forces as long as it is necSome facilities are available at times, however, and other fabricators are

beginning to have opportunity to do civilian work. being made to enlarge established prewar uses of applications.

For this reason, every effort is the metal and to develop new

The continuous years of metallurgical research and production engineering development have resulted in the ability of the Company not only to furnish tremendous amounts of pure magnesium ingot, but also to produce alloy ingot, castings, The dewrought products and fabricated assemblies efficiently on a large scale. velopment of reverberatory melting, pumping, and direct chill casting methods have revolutionized alloy ingot and billet production. The new Dow direct reading spectrometer has made possible almost instantaneous analysis of alloy content of the metal. The corrosion testing program at Wilmington, North Carolina is now in its fifteenth year and outstanding results are being obtained. The remarkable corrosion resistance of magnesium alloys has impressed hundreds of government, military and industrial officials who have visited the station during the past year. The research department is constantly working on problems of basic research nature, on methods of improving practical operation of foundry, wrought product and fabrication production departments, on design and engineering of structural applications of magnesium, and on analytical methods. It is interesting to note that of the total magnesium personnel, 4.5 per cent are research workers. Ten years This is acago the figure was 15 per cent, and twenty years ago, 25 per cent. counted for by the fact that the total personnel has increased both in research and production but production has increased to a more nearly proper proportion. PLASTICSDuring 1945 we have had only a limited supply of plastics for sale to the civilian trade, because either the raw materials entering into them have been critical or the plastics themselves have found essential military uses up to the extent of our ability to produce them. During the year, however, improvements have been made in the properties and behavior of our materials, thereby extending their field of application, some increase in production has been realized, and careful studies are constantly being made to determine postwar requirements for our four major plastics-Styron, Ethoccl, Saran and Styraloy. Almost the entire production of styrene at the present time is allocated for the synthetic rubber program, but an increasing number of applications for it in large quantities are being discovered so that when it is freed from government controls the entire output of our privately owned production will find a ready market. Styrene has been used in the manufacture of a variety of new resins and compounds related to styrene show great promise of profitable manufacture and wide sale. Continued experimental and developmental work is uncovering new cations for Ethocel which should be sufficient to absorb our entire production the war. Currently, Ethocel is being used in military weapons. appliafter

Our plastic, Saran, continues to be used chiefly by the Armed Forces for insect screening. Additional production facilities have been constructed and are now in operation. Even this increased output, however, will be insufficient to care for the anticipated demands for upholstery, drapery and other fabrics. Many other applications of Saran also promise large postwar markets. The modern and versatile polymerization plant built for the production of Styraloy has been put into operation and has demonstrated its ability to produce large quantities of material at low cost. Extensive production of Styraloy was not available for the peak wartime demand, but with the completion of the plant recent interest on the part of the trade indicates a large future market.

DOWELL

INCORPORATED-

The United States Supreme Court decision, which held invalid a basic Dow patent on acidizing of oil wells, will have little effect on the activities of this The Court’s ruling of March 5th of this year merely wholly-owned subsidiary. opens the patent to public use four years earlier than would otherwise have been the case inasmuch as the patent, issued in 1932, was due to expire automatically in 1949. Furthermore, acidizing of oil wells does not now constitute the full scope than twelve years of technical service, inDuring more of Dowell’s activities. dustrial acidizing has become an important contribution to industry, along with Other useful developments wi I I undoubtedly come plastic plugging of oil wells. Dowell Incorporated is a steadily growing asset to The Dow about in the future. Chemical Company. AGRICULTURAL CHEMICALS-

In the past few decades the evolution of scientific agriculture has been Progress has been speeded because of the work proceeding at an accelerated pace. of federal, state, and independent research groups, the mass production of agricultural machinery and a new era in the application of chemistry to the problems of agriculture. It might be said that today chemistry aids and protects the production of food crops from before the planting of the seed until the product reaches the table of the consumer. While this may not be an actuality in other than a few isolated cases, it serves to indicate the new and inclusive range of influence of chemistry over agriculture. Dow products may be found at both ends of this range. Soil fumigation, to free the planting area of root-attacking pests, is one of the newest developments in agricultural chemistry. Dow has been and is playing a significant part in this research and already numbers three soil fumigant materials among its contributions. The coating or “pelleting” of certain types of seeds, particularly fine seeds such as those of the sugar beet, to facilitate mechanical cultivation is another gift of science, the potentialities of which have as yet hardly been Dow is fortunate in having been able to play a major part in this tapped. development. We have long occupied the position of a leading producer of insecticides and fungicides, and our line of these materials is constantly being improved and expanded as, for instance, with soil fumigants and plant hormones. Among our more recent developments is 2,4-D, a plant hormone-like compound which already shows promise of a number of interesting uses. As a selective weed killer, it kills by stimulating overgrowth, attacking broad-leafed plants without damaging other types, and shows great promise for controlling weeds by chemical means in lawns and many varieties of farm crops. The use of phenothiazine, the “sulfa drug of the animal industry”, has been considerably extended during the past few years. Dow fumigants protect foodstuffs from infestation in transit and storage, and Dow packaging materials will, when available to the civilian market, help to bring agricultural products into the home attractively wrapped and protected against climatic conditions, insects, dirt and other hazards. Agriculture bond with is America’s it. largest industry and we are proud of our ever-

growing

CONCLUSIONAs we survey the years of our growth and plan for the future, we can gain satisfaction in the fact that we are a basic industry-an industry which is an integral part of the economic fabric of our nation. There is scarcely a single

chemistry does not today play enterprise in the country in which part. For this reason there is cause to reflect on how the application can best serve the well-being of our nation.

an important of chemistry

Less than four years ago the American people were given a lesson which they It is simply that to the extent that any nation lacks selfshould never forget. sufficiency in basic raw and industrial materials, to the same extent is she vulnerable to attack in time ‘of war. Rubber, of course, is the outstanding example of this principle. Our dependence upon foreign sources of raw rubber hampered our ability to wage war and disrupted to no small degree our civilian life. Only the rapid development of an the synthetic rubber industry-saved this country from a entirely new industrymilitary and industrial impotency that might have prolonged the war by years. We, as a nation, are today more self-sufficient than at any time in our history. The accomplishments of the last few years are proof in themselves of ,the diversification which is possible through the science of chemistry. We have seen that through it nearly all the needs of man can be supplied from only a handful of basic resources, such as coal, petroleum, sea water and air. We have learned that through chemistry merely a few basic resources can be converted into a vast number of industrial materials and that agricultural products as raw materials for chemistry have only just crossed the threshold into the realm of their potential possibilities. We should make it our job to preserve and protect this independfor only in this way can we do our part most efficiently ence we have gained, in helping to maintain peace and to provide employment for our people. We are only beginning to realize the opportunities which chemistry and science are opening up to us for raising our standards of living and abolishing disease. During the war many billions of dollars worth of industrial facilities and equipment have been constructed, much of which, if we have a healthy market here at home, can be put to work in meeting the demands for new products and new materials. It would be folly, indeed, if after the war we should surrender our economic independence and place obstacles in the way of producing materials and goods domestically in order to build up an artificial system for world trade. This nation would be grievously ill-advised if it entered into any grandiose schemes to foster world trade at the expense of our own economic and military security. The best way to provide jobs is to produce here at home as great a portion of our needs as possible. Let us not, therefore, try to turn backward the wheels of our scientific progress, but let us move forward through chemistry toward a broader economic system which will provide maximum opportunity for the people of our country. Toward this end, The Dow Chemical Company hopes to make a significant contribution. WILLARD H. DOW

President Midland, July 30, Michigan 1945

HASKINS &
CERTIFIED PUBLIC

SELLS
ACCOUNTANTS

THE

NATIONAL

BANK

BUILDING

DETROIT

ACCOUNTANTS

CERTIFICATE

The Dow Chemical We ical

Company: the consolidated balance sheet of The 31, for Dow Chemand the

have examined and

Company

its subsidiary of consolidated

companies income

as of May and surplus

1945

related that have

statements

the year

ended

date,

have reviewed their

the accounting records

procedures and other

of the companies, evidence in support

and
of

examined

accounting

such financial generally included were

statements. auditing

Our examination standards

was made

in accordance

with and

accepted all auditing

applicable

in the circumstances necessary, appropriate which

procedures

we considered we deemed not

procedures of the

applied

by tests to the extent control; it was

in view

systems from

of internal States

practicable and

to confirm agencies but

receivables we have audit-

United

Government respect

departments

satisfied

ourselves

with

to such receivables

by means of other

ing procedures. In our opinion, ments of consolidated the accompanying income at May consolidated fairly balance present sheet and statecon-

and surplus 3 1, 1945

the financial

di tion of the companies for the year ended that ing principles preceding and

and the results of their with generally accepted with

operations accountof the

date, in conformity
applied

practices

on a basis consistent

that

year. HASKINS 0 SELLS

July 24,

1945.

THE AND
CONSOLIDATED

DOW

CHEM
( Incorporated

SUBSIDIA BALANCE SHEET,

ASSETS
May CURRENT Cash ASSETS: ~~-__-___--~---_~__--~---~~-~-~~-~--~-~~-~-~~~ Government Securities $1 1,560,OOO.OO; 1944, (including $8,680,000.00) Treasury tax at cost $ $ $ - _________ -__$ $ $ $ $ _-_ __ _ _- - -_ _ _ $ 1945 17,505,643.48 22,885,OOO.OO 1 1,537,408.91 193,527.91 4 1,344.80 350,707.80 12,122,989.42 305,244.70 1 I,81 7,744.72 272,105.12 9,4 15,374.86 6,8 14,096.49 16,229,47 68,709,964.67 1.3 5 $ $ $ 31 1944 14,1x18.42 16,884,153.36 1 1,650,822.72 432,926.60 33,549.69 277 I- 638.38

United States notes, 1945,

Notes and accounts receivable: _________-_________--------------------Customers ------__-------------~------~--Associated companies __-___-______-_ - ____ - ____ Employees Sundry __-___--___-____-___-----------------------

Total -_--_---_----_--_-_--~~~--~~--~~~-~~ _ _ - - - __ - - _ _ __ - _ _ - - _ receivables Less reserves for doubtful Net receivables _-___---_______ - ____ and Billed and unbilled receivables from United States Government its agencies (other than for sale of product) --_---__----_

$12,394,937.39 280,l 10.09 $ $ $ !$ $ 12,1 14,827.30 1,Ol 1,231.49 9,101,841.98 7,540,610.55 16,642,452.53 60,772,183.10

Inventories: Finished goods and work in process (at lower of cost or market) Materials and supplies (at cost---approximately market) _--_ Total ___-______-__---__-----------Total current assets

INVESTMENTS AND NON-CURRENT RECEIVABLES: Notes receivable and capital stock (at cost) of associated com(less than equity in net assets OS shown by balance panies _____-____--______-_----------sheets of companies) Postwar refund of excess profits taxes -_----_--_-_--_-_---_ Non-current notes and accounts receivable (including employees’ receivables, 1945, $16,558.68; 1944, $41,320.5 1 1 ---a-----_-----_--_--_ Sundry securities (less reserve, $63,413.93) Total investments and non-current receivables ---__--__-_-__-___ PROPERTY (including emergency facilities for national defense, completed and in progress, with a gross book value (cost) subject to amortization, 1945, $44,486,885.53; 1944, $42,368,941.32) : at cost (less reserves for deprePlant properties and equipment1945, $57,736,794.15; 1944, and amortization, ciation $45,174,593.72) ___________ ---__---_-_-_--_----___ at cost (less reserves for depreciation and Housing properties1945, $552,933.96; 1944, $416,786.13) ____ amortization, Total property --_---___---_-___

$

5,688,OOO.OO 2,597,03 1.2 1 304,292.44 658,664.1

$

3,538,OOO.OO 1,563,646.14 605,234.19 593,8 12.55

1 $

$

9,247,987.76

6,300,692.88

$

66,265.4

17.03

$

70,826,904.63 1,302,973.03

1,374,553.95 $ $ $ 67,639,970.98 64,91 1.46 $ $ $ -

72,129,877.6/6 72,37 1.29

PATENTS--At cost or nominal value (less reserves for amortization, 1945, $71,862.94; 1944, $64,403.11) --_-__---_----___-_ DEFERRED CHARGES-Unexpired insurance premiums, unamortized debenture discount and expense, and sundry ---------_-__-__ TOTAL __-_-_---_--___---

484,064.20

34 1,204.49 16,329.42

$146,146,899.07

$139,6

NOTE:

Operations of the Company and its subsidiaries include transactio the Government the right under certain conditions to renegoti result of renegotiation proceedings for the years ended May 3 subsidiaries for those years except that, in the case of one sub: ended May 31, 1942 and 1943. Renegotiation proceedings f upon the results of proceedings of the three prior years, it is meaning of the legislation have not been realized for such yea

ZAI.

COMPANY

Michigan 1

r COMPANIES
IAY 31,1945 AND MAY 31, 1944

LIABILITIES
May CURRENT LIABILITIES: $ 1945 6,2=93.3 17,304,690.07 750,000.00 1,240,398.50 926,805.20 1,280,932.89 63,039.69 144,06 1.70 107,600.l 1 $ 28,l 12,121.47 $ 1 $ Accounts payable-Trade and sundry ___---_______________ Federal income and excess profits taxes ____________________ Serial debentures maturing within one year ________ -_______ Dividends payable _ _ _ - _ _ _ _ _ - - _ _ _ _ _ _ _ - _ _ _ _ __ _ _ _ _ _ _ __ _ - Accrued liabilities: Payrolls ________________________________________-Taxes -Social security, property, Federal capital stock, state income and franchise, and sundry ----_--------------Interest ____ -------------------------------------Rents __________-_____________________________--Sundry -----------------------------------------Total current liabilities __________ 31 1944 5,3=2.84 14,059,968.47 750,000.00

1,23 1,994.42 1,326,847.99 65,985.63 166,630.64 127,33 1.97 23,057,22 1.96

FUNDED DEBT (Board of Directors resolved on July 17, 1945 to redeem as of September 1, 1945 the debentures classified hereunder) : Ten year 2%% debentures, due September 1, 1950 -_-------_ Serial debentures maturing in the amount of $750,000.00 on September 1, 1946 and annually thereafter until September 1, 1950 (debentures maturing within one year included in current liabilities) _________-____-_______________ ---___---Total funded debt ____ -_____ ---

$

7,500,000.00

$

7,500,000.00

3,750,000.00 $ 1 1,250,OOO.OO $

4,500,000.00 12,000,000.00

RESERVES FOR FIRE AND ACCIDENT LOSSES, DAMAGE ELECTROLYTIC CELL REPLACEMENTS, AND SUNDRY MINORITY INTERESTS IN SUBSIDIARY COMPANIES

CLAIMS, ______

$ !3

1,455,163.22 1,3 12,455.09

$ $

1,808,29 1,270,426.12

1.08

__-_____--

CAPITAL STOCK: Cumulative preferred stock, Series A (authorized, 600,000 shares without par value; outstanding, 303,869 shares) annual dividend $4.00 per share ____________ --__-----_----_Common capital stock (authorized, 2,000,OOO shares without par value; outstanding, 1,248,706 shares) ___- _____ ---__----Total SURPLUS : Capital surplus Earned surplus capital stock _____ --__-----

$

30,386,900.00 37,293,908.83

$

30,386,900.00 37,293,908.83

$ 67,680,808.83

$

67,680,808.83

_________________-___________ ______--_____________________ Total surplus ---___---_----

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

$
$

638,84 1.93 35,697,508.53 36,336,350.46

$ $

638,84 1.93 33,160,739.50 33,799,58 1.43

TOTAL

--__-__--__-__-___

$146,146,899.07

$139,6

16,329.42

ch are subject to the provisions of war profits control legislation giving rr contracts and subcontracts for the purpose of limiting profits. As a .2, 1943, and 1944, no refunds were required of the Company or its refunds, not relatively material in amount, were required for the years year ended May 31, 1945 have not been started. However, based minion of officials of the Company that excessive profits within the

THE DOW CHEMICAL AND SUBSIDIARY
STATEMENT

COMPANY

COMPANIES
INCOME AND 1944

OF CONSOLIDATED 31,1945

FOR THE YEARS ENDED MAY

Year 1945 SALES AND Sales Interest Dividends OTHER received from REVENUE: $124,570,200.83 company --_-----__ --_ _-------_--_-_------_____________ from associated companies associated

Ended May

31 1944 1.95

$120,426,95

500,000.00 294,955.42 2,085,080.04 537,300.37 $127,987,536.66

900,000.00 158,732.36 2,680,009.47 49 1.087.46 $124,656,78 1.24

Fees received in connection with the construction and operation of government owned plants __ Other income ________ -- -____ -___--------Total - ____________________

COSTS AND OTHER CHARGES: Cost of sales (excluding provision for depreciation and amortization) ----------------Provision for depreciation ----------------faciliProvision for amortization of emergency ties ________________________________ Selling and administrative expenses --------and exInterest and amortization of discount ------------------pense on debentures

$ 82,03

1,153.29

$ 83,208,320.47 4,1 18,785.23 7,530,695.50 5,814,088.01 275,643.56

5,332,014.66 8,353,549.70 6,840,949.68 265,6 18.84

Loss on disposal by dedication for public purposes or by sale of property located within a townsite developed by the Company for em----------------------------ployees Other income charges _-_--------_-------Minority interests in income of subsidiary panies -_____________________________ com-

12,05 1.79 78,428.59 67,028.97

8 19,559.02 174,674.78 83,148.06

Provision for Federal income and excess profits taxes : Normal tax and surtax _________________ Excess profits tax (less postwar refund and credit for debt retirement) ____________ Total INCOME FOR THE ---_------------------YEAR -----___---_--_--__

4,307,365.49 1 1,960,614.12 $1 19.248,775.13 $ 8,738,761.53

3,927,728.63 10,130,634.74 $1 16,083,278.00 $ 8,573,503.24

THE DOW CHEMICAL AND SUBSIDIARY
STATEMENT

COMPANY

COMPANIES
SURPLUS 1944

OF CONSOLIDATED

FOR THE YEARS ENDED MAY

31, 1945 AND

CAPITAL
BALANCE AT BEGINNING

SURPLUS
OF THE YEAR _-_-$

Year 1945

Ended May

31 1944 36,539.0 1

638,841.93

$

CREDIT-Excess of proceeds ( less ceived from sale of 249,504 shares preferred capital stock, Series A, per share credited to the capital Total CHARGE-Premium shares of 5% BALANCE AT --______

expenses) reof cumulative over $100.00 stock account

630,477.92 $
638,841.93 $ 667,0 16.93

--_--___------

paid on retirement of 5,635 cumulative preferred capital stock END OF THE YEAR --____-----$ 638,841.93 $

28,175.OO 638,84 1.93

EARNED
BALANCE CREDIT-Net AT BEGINNING income Total

SURPLUS
OF THE YEAR ----$ 33,160,739.50 8,738,761.53 $ 41,899,501.03 $ 4,682,647.50 1,5 19,345.oo $ 6,20 1,992.50 $ $ 28,99 1,490.17

for the year __--

____________

8.573.503.24 $ 37,564,993.4 $ 3,746,1 18.00 174,984.20 483,151.71 4,404,253.9 1 1

____ -----___-_--___

CHARGE-Cash dividends (See Note) : Common capital stock _________ --__-_---5% cumulative preferred capital stock ______ Cumulative preferred capital stock, Series A __Total BALANCE AT ____ ----~---~~~~----~----~~ END OF THE YEAR ---_---_-___

$ 35,697,508.53

$ 33,160,739.50

NOTE :

Dividends for the year ended May 3 1 ,1945 include five regular quarterly dividends on the common and preferred stocks which were declared during the year, including dividends amounting to $936,529.50 on the common stock and $303,869.00 on the Series A preferred stock declared on May 29, 1945 and paid on July 16, 1945 which are included in current liabilities at May 31, 1945 in the accompanying consolidated balance sheet.

1 1 I I 1 1 I zi v)

Iv, I$ Is 1-z I3 IA I I I

I I I l I I

i
I r3 .E I I

I I I

l

I
I I

tFf teee
2% NV\ us ni b+Ff
I I I I I I I II I I I I I I I III I I III I g I62 IQ I EE I oc I ” Ip I 0 lfi ;z 1 zu I I+ IO0 IQlQ g $j “v g$ I s I yoL& g2 al/l I’ I I I I I I I I I I I l l l I l l I I I I I I I I lI I l 1 l l 1 I l I 1 I I 1 I I l I I I I

O\m 6% . -d. bl
.E c z 9, oay; 7 0 I 1 I I I I I I I 1 I .-E t I i I I I I I ( I I ; I I I I I I I 3 .$ : u 2 .I; ] ; I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 1 1 1 I 1 1 1 I I IWW I.!! I I I I I I I I I l l l l I I l l I I I I I I I I I I I I I I I I I I I I I I I I I I

69 64

I I I I I I I I I I l I l I l I I I l I I I$ 13 I l‘v, IQI I .I El I a 1 ! E 8

0 XEU

‘EE ’ 0 0 I”” IIs v) .- .0) F.57 6
” -aI .p$2 &

E*“o
s .b 5.5 YC c 0 .- .s.p 0

022

THE DOW CHEMICAL

COMPANY

Directors
E. 0. BARSTOW BENNETT J. S. CRIDER L. I. DOAN A. B. DOW W. H. DOW M. E. PUTNAM C. J. STROSACKER W. R. VEAZEY E. W.

Officers
Chairman General Vice Vice Vice Vice Vice of the Board, Manager President and ’ E. 0. W. E. W. H. DOW BENNETT L. I. DOAN BARSTOW

President President President President President

and Treasurer and Secretary -

C. J. STROSACKER M. E. PUTNAM J. S. CRIDER

Assistant

Treasurer

Assistant Assistant Assistant Assistant Assistant Assistant Auditor

Treasurer Secretary Secretary Secretary Secretary Secretary -

and Assistant -

Secretary L. A. -

F. H. A.

BROWN

P. BEUTEL

CHICHESTER R. L. CURTIS

G. M. McGRANAHAN D. J. LANDSBOROUGH C. PENHALIGEN

Transfer Guaranty The The Trust

Agents of New of New York York Common

Stock Common Preferred and Preferred The The New York Trust

Registrars Trust City Company of New York of Cleveland

Company City Trust Bank

Notional Cleveland

Guaranty

Company Bank

Company

National

THE DOW CHEMICAL

COMPANY

Executive Office: General Sales Office:

Midland, Midland,

Michigan Michigan

Soles Offices

Boston 20

16, Massachusetts Providence 3, Illinois So. LaSalle 13, Ohio Tower Street Street

New

York

20,

New

York

30 Rockefeller Philadelphia 1400

Plaza

Chicago 135

2, Pennsylvania Square

S. Penn

Cleveland Terminal Detroit Fisher Houston 2205

San Francisco 310

4, California Street

Sansome

2, Michigan Building 2, Texas Commerce Building

St. Louis 8, Missouri 3615 Seattle 1702 Olive Street

1, Washington Textile Tower

Los Angeles 634

14, California Street

Washington 915

5, D. C. Building

So. Spring

Shoreham

Factories Located at
Midland, Bay City, Michigan Michigan Freeport, Texas Pittsburg, Seal Beach, California California

,THE DOW CHEMICAL COMPANY

Subsidiary
Cliffs Dow Chemical Company Limited

Companies
Marquette, Sarnia, Midland, Midland, Michigan

Dow Chemical Dow Magnesium Midland

of Canada, Corporation Company

Ontario Michigan Michigan

Ammonia

Dowel I I ncorpora ted : Executive General Office Off ice
Dowell Chicago Salem Wichita Baton Mt. Shreveport Pleasant City 8 20 2 13 City 2 2 2 8 Kansas New 2 Rouge 23 3 Incorporated Soles Off ices 135 P. 0. 519 P. 0. 326 P. 0. 220 3615 30 521 1350 524 1400 P. 0. 635 P. 0. Canada 907 South Union First B. M. Olive Keith First South LoSolle Not’1 Not’1 A. Street Bank Bank Bldg. Plaza Bldg. Bldg. Bldg. Bldg.

Midland, Tulsa,

Michigan Oklahoma

Illinois Illinois Kansas Louisiana Louisiana Michigan Missouri Missouri New Ohio Ohio Oklahoma Oklahoma Pennsylvania Texas Texas Texas Texas Texas Alberto, York

Box 292 Box 1266 Box 152 Street Bldg. Tower Not’1

St. Louis York Cincinnati Cleveland Oklahoma Tulsa Borger Fort Worth Houston Midland Wichita Calgary 3

Rockefeller

Terminal

Kennedy Box 1029 Ft. Worth Box

Bldg. Penn Square Club Bldg.

Philadelphia

2 Falls

21 15 Commerce 1858 Bldg. Waggoner

Bldg.

Lancaster

Bldg.

Associated Companies
Dow Corning Ethyl-Dow Corporation Company Midland, Freeport, Wilmington, Michigan Texas N. C.

Chemical