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TO THE STOCKHOLDERS OF UNITED STATES RADIUM CORPORATION The manufacturing and supply problems involved in the change from wartime to peacetime operations experienced during 1946 were continued, but in a somewhat lesser degree, through 1947. During the year the program for mechanization of facilities for the production of clock and watch dials was enlarged and accel- erated. A large percentage of the equipment acquired under this program was designed and built by personnel of the Corporation. Special emphasis was placed upon research, looking toward a greater diversification of the Corporation's products. While the benefits of this research program were not greatly reflected in 1947, it is hoped that its effect will be a greater stabilization of earnings in future years. Volume was maintained during the year at a satisfactory level. Net earnings after taxes and all charges amounted to $120,377.00 or $1.93 per share on the outstanding shares of common stock of the Corporation. Dividends in the amount of $35,532.00 or 606 per common share and $6,097.00 or $7.00 per preferred share were paid during the year and $78,748.00 was added to the earned surplus account. Your Management has long considered it a matter of prime importance that the operations of your Cor- poration be transferred to a location where suitable and adequate laboratory and manufacturing facilities would be available. After many surveys and inspections of possible locations, it was decided to purchase a partially completed plant located near Bloomsburg, Columbia County, Pennsylvania. Title to the property was taken on December 1st, 1947. The plant site comprises approximately ten and one-half acres of land, lying between Pennsylvania State Highway No. 11 and the North Branch of the Susquehanna River. When completed the plant will consist of approximately forty thousand square feet of newly constructed space and approximately twenty thousand square feet of reconditioned space, as well as other smaller buildings. It is expected that the plant will be completed and in full operation by the end of the current year. Executive and Sales offices will remain in New York City. It is estimated that the cost of these new facilities, when completed, plus the necessary expense of mov- ing will be approximately $340,000.00. Funds for the payment of this sum will be provided from the Corpora- tion's capital and from the proceeds of the bank loan in the amount of $200,000.00, which is shown on the accompanying balance sheet. Under the terms of the loan agreement, the principal, after an interval of one year, is to be amortized in equal quarterly installments spread over a period of seven years or may be paid in part or in full at earlier dates, if funds are available for such a program. Interest is payable at the rate of 2¹/2 percent per annum. The payment of dividends on the common stock is restricted only in the event that work- ing capital falls below specified levels. It is difficult to predict the outlook for 1948 without extensive qualifications. At present, the fortunes of your Corporation are closely allied with those of the watch and clock industry, so any curtailment in watch and clock production could seriously affect its earnings. The imposition of governmental controls on raw materials would likewise reduce the volume of your Corporation's commercial sales. On the favorable side, potential new volume exists in products being developed under the current research program, and the Corpora- tion should receive its share of any increased business arising from the national re-armament program. It is to be hoped that future earnings will justify the continuation of common stock dividends at the current rate. However, the Management of your Corporation cannot emphasize too strongly the necessity for early retirement, if possible, of the existing indebtedness, and the maintenance of a strong working capital position. The suit in the United States Tax Court, filed by the Corporation for refund as a result of the renego- tiation of war production covering the years 1942-44 inclusive, is still pending. It is hoped that this important litigation may be concluded not later than the Spring of 1949. While the Weksler Thermometer Corporation did a satisfactory volume of business, competitive prices, production and raw material costs, held operating net profits to $13,953.00 after taxes and adjustments. Very truly yours, C. B. LEE, President April 30, 1948.

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    "ocrText": "TO THE STOCKHOLDERS\nOF UNITED STATES RADIUM CORPORATION\nThe manufacturing and supply problems involved in the change from wartime to peacetime operations\nexperienced during 1946 were continued, but in a somewhat lesser degree, through 1947. During the year the\nprogram for mechanization of facilities for the production of clock and watch dials was enlarged and accel-\nerated. A large percentage of the equipment acquired under this program was designed and built by personnel\nof\nthe Corporation. Special emphasis was placed upon research, looking toward a greater diversification of\nthe Corporation's products. While the benefits of this research program were not greatly reflected in 1947, it\nis hoped that its effect will be a greater stabilization of earnings in future years.\nVolume was maintained during the year at a satisfactory level. Net earnings after taxes and all charges\namounted to $120,377.00 or $1.93 per share on the outstanding shares of common stock of the Corporation.\nDividends in the amount of $35,532.00 or 606 per common share and $6,097.00 or $7.00 per preferred share\nwere paid during the year and $78,748.00 was added to the earned surplus account.\nYour Management has long considered it a matter of prime importance that the operations of your Cor-\nporation be transferred to a location where suitable and adequate laboratory and manufacturing facilities would\nbe available. After many surveys and inspections of possible locations, it was decided to purchase a partially\ncompleted plant located near Bloomsburg, Columbia County, Pennsylvania. Title to the property was taken\non December 1st, 1947.\nThe plant site comprises approximately ten and one-half acres of land, lying between Pennsylvania State\nHighway No. 11 and the North Branch of the Susquehanna River. When completed the plant will consist of\napproximately forty thousand square feet of newly constructed space and approximately twenty thousand square\nfeet of reconditioned space, as well as other smaller buildings. It is expected that the plant will be completed\nand in full operation by the end of the current year. Executive and Sales offices will remain in New York City.\nIt is estimated that the cost of these new facilities, when completed, plus the necessary expense of mov-\ning will be approximately $340,000.00. Funds for the payment of this sum will be provided from the Corpora-\ntion's capital and from the proceeds of the bank loan in the amount of $200,000.00, which is shown on the\naccompanying balance sheet. Under the terms of the loan agreement, the principal, after an interval of one\nyear, is to be amortized in equal quarterly installments spread over a period of seven years or may be paid in\npart or in full at earlier dates, if funds are available for such a program. Interest is payable at the rate of 2¹/2\npercent per annum. The payment of dividends on the common stock is restricted only in the event that work-\ning capital falls below specified levels.\nIt is difficult to predict the outlook for 1948 without extensive qualifications. At present, the fortunes of\nyour Corporation are closely allied with those of the watch and clock industry, so any curtailment in watch\nand clock production could seriously affect its earnings. The imposition of governmental controls on raw\nmaterials would likewise reduce the volume of your Corporation's commercial sales. On the favorable side,\npotential new volume exists in products being developed under the current research program, and the Corpora-\ntion should receive its share of any increased business arising from the national re-armament program.\nIt is to be hoped that future earnings will justify the continuation of common stock dividends at the\ncurrent rate. However, the Management of your Corporation cannot emphasize too strongly the necessity for\nearly retirement, if possible, of the existing indebtedness, and the maintenance of a strong working capital\nposition.\nThe suit in the United States Tax Court, filed by the Corporation for refund as a result of the renego-\ntiation\nof war production covering the years 1942-44 inclusive, is still pending. It is hoped that this important\nlitigation may be concluded not later than the Spring of 1949.\nWhile the Weksler Thermometer Corporation did a satisfactory volume of business, competitive prices,\nproduction and raw material costs, held operating net profits to $13,953.00 after taxes and adjustments.\nVery truly yours,\nC. B. LEE, President\nApril 30, 1948."
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