Ask the Scholar

{
    "localId": "75730513",
    "label": "Report, December 31, 1948",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/75730513"
}

{
    "id": "75730513",
    "sourceUrl": "https://catalog.archives.gov/id/75730513",
    "contentType": "document",
    "title": "Report, December 31, 1948",
    "citationUrl": "https://catalog.archives.gov/id/75730513",
    "collections": [
        "Safety Light Collection",
        "Records Related to Radium Dial Painters"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/lz/electronic-records/SLC/Radium/SLC_0003644_Page_1.jpg",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/electronic-records/SLC/Radium/SLC_0003644_Page_1.jpg",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/lz/electronic-records/SLC/Radium/SLC_0003644_Page_1.jpg",
    "imageCount": 9,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/75730513",
    "naId": 75730513,
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 9,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/lz/electronic-records/SLC/Radium/SLC_0003644.pdf",
    "mediaId": "df794d52f2ae4d6a",
    "ocrText": "BLOOMSBURG PLANT\nAnnual Report\nUNITED STATES RADIUM CORPORATION\nDECEMBER 31, 1948\nDirectors\nG. CAMPBELL BECKET\nDELANO W. LADD\nDEAN S. EDMONDS\nC. B. LEE\nE. B. FISHER\nJOHN E. PAUL\nOfficers\nDEAN S. EDMONDS\nChairman of the Board\nE. B. FISHER\nPresident\nJ.E.PAUL\nSenior Vice-President\nC. W. WALLHAUSEN\nVice-President\nG. CAMPBELL BECKET\nSecretary\nH. A. WHITING\nTreasurer\nand Assistant Secretary\nTransfer Agent\nRegistrar\nCENTRAL HANOVER BANK &\nNEW YORK TRUST Co.\nTRUST Co.\nAuditors\nPEAT, MARWICK, MITCHELL & Co.\nTo the Stockholders of\nUnited States Radium Corporation\nThe year 1948 was, for our Corporation, a difficult one due primarily to the compli-\ncations arising from the construction of the new Bloomsburg, Pennsylvania plant, the\ntraining of a completely new group of employees, the transfer and housing of supervisory\npersonnel, the moving and erection of equipment and the necessity for accomplishing\nthis without cessation of operations. Virtually all production, with the exception of the\nmanufacture of Phosphors and X-Ray Screens, has now been transferred to these new\nfacilities, and it is believed that the move will result in a significant increase in efficiency\nand reduction of operating costs.\nProfits for the year, after taxes and all charges, amounted to $29,950.00, or after\npayment of Preferred dividends, to 40¢ per outstanding Common share. Dividends in\nthe amount of $17,766.00 or 30¢ per Common share and $6,097.00 or $7.00 per Preferred\nshare were paid during the year on the Corporation's outstanding shares, and $6,087.00\nwas added to Earned Surplus account. While these figures are relatively unsatisfactory,\nit should be remembered that they reflect certain non-recurring expenses and write-offs\nresulting from the transfer of operations to the new location.\nDue, primarily, to increases in labor and material costs during the construction\nperiod, the cost of the Bloomsburg plant exceeded estimates by a substantial amount.\nYour Management accordingly decided to recommend the omission of the Common\nStock dividend in the interest of maintaining a sound working capital position, pending\na clearer appraisal of total capital expenditures required, as well as of future profits from\noperations.\nPrior to the war, the fortunes of the Corporation were largely dependent on the\nradium treatment of dials and pointers for the watch and clock, and to a lesser degree,\nthe military aircraft industries. Severe production curtailment, such as is being currently\nexperienced by the clock industry, was reflected immediately in a reduction of our Corpora-\ntion's sales volume and profits. Since the war, it has been the policy of your Manage-\nment to correct this condition through the development of new products which can be\nprofitably manufactured and sold, and which, it is hoped, will provide needed diversifica-\ntion and stability. Among the products which were either newly introduced to the\ntrade, or of which sales were substantially expanded during the year, are: Television\nPhosphors, Neutron Sources, Standards for Radiation Counters, and Static Eliminators.\nResearch was conducted in connection with the possible commercial application of certain\nradioactive Isotopes; and a laboratory for the manufacture of Fluoroscopic and Intensify-\ning X-Ray Screens equipped and staffed on leased premises in Bernardsville, New Jersey.\nCertain changes reflecting an improvement in the Corporation's working capital\nposition occurred during the first half of 1949, and are accordingly not reflected in the\naccompanying year-end Balance Sheet. The Corporation's holdings in the Weksler\nThermometer Corporation were disposed of under an agreement whereby the Common\nStock was sold for what in effect is a gross cash amount of $56,000.00 and under which\nthe Preferred Stock, having a par value of $53,100.00, is to be purchased or retired at par\nover a seven year period. Real estate holdings in Orange, New Jersey, carried on the\nbooks at $9,236.00, were also sold for $13,125.00.\nIn May 1949, the suit which has been pending in the United States Tax Court, and\nto which reference has been made in several previous reports, was settled on what is\nconsidered by your Management to be a favorable basis. The net effect of this settlement,\nafter provision for counsel fees and New York State Income Taxes, should be to increase\nthe Corporation's cash position by $80,000.00. Payment is anticipated before the\nyear's end.\nAt the March meeting of the Board of Directors of the Corporation, provision was\nmade for changing the date of the Annual Meeting from the second Wednesday in\nJanuary to the third Wednesday in April in order that final audited figures might be\navailable for inspection and discussion at this meeting.\nRespectfully submitted,\nE. B. FISHER, President\nJune 22, 1949\nBy order of the Board of Directors.\nUNITED STATES RAI\nBalance\nAS OF DECEM\nWITH COMPARATIVE FIGUR\nASSETS\nDECEMBER 31\n1948\n1947\nCURRENT ASSETS:\nCash in banks and on hand\n$ 119,915\n$ 237,435\nUnited States Government obligations - at cost and accrued\ninterest (quoted market value - 1948, $19,214; 1947,\n$147,436)\n19,214\n147,442\nAccounts receivable:\nCustomers\n129,842\n167,717\nMiscellaneous\n6,597\n4,137\n136,439\n171,854\nLess Reserve\n29,000\n4,000\n107,439\n167,854\nInventories - at lower of cost or market\n130,765\n157,184\nTotal Current Assets\n377,333\n709,915\nPrepaid Expenses\n5,165\n8,085\nClaim for Refund of Federal Income Taxes\n24,712\n24,712\nMachinery (not used in operations) held for resale\n4,872\n9,329\nNotes Receivable from Employees\n7,000\n-\nInvestment in and Advances to Weksler Thermometer Corporation\n(Note 1):\nCapital stock\n53,180\n53,180\nAdvances\n111\n376\n53,291\n53,556\nPROPERTY, PLANT AND EQUIPMENT:\nLand\n6,750\n6,750\nBuilding and building equipment\n329,971\n130,405\nLaboratory and mechanical equipment, including small tools\nand jigs\n203,895\n165,997\nAutomobiles\n1,500\n2,409\nOffice furniture and fixtures\n15,145\n14,834\n557,261\n320,395\nLess Reserve for depreciation\n113,056\n87,680\n444,205\n232,715\nReal estate leased to others (Note 2)\n14,303\n14,303\nLess Reserve for depreciation\n5,067\n4,512\n9,236\n9,791\n453,441\n242,506\nDEFERRED CHARGES:\nLeasehold improvements, etc., less amortization\n12,726\n2,151\nPatent expenses, less amortization\n668\n742\n13,394\n2,893\nGoodwill - at record amount\n1\n1\n$ 939,209\n$1,050,997\nSee accompanying notes to financial statements.\nCORPORATION\nSheet\nBER 31, 1948\nAT DECEMBER 31, 1947\nLIABILITIES\nDECEMBER 31\n1948\n1947\nCURRENT LIABILITIES:\nNote payable to bank - Payments due within one year\n.\n$ 28,571\n$\n-\nAccounts payable\n43,208\n54,144\nTaxes withheld from salaries and wages\n5,006\n11,803\nAccrued expenses:\nTaxes, other than federal income taxes\n11,461\n13,280\nOther\n13,083\n22,583\n24,544\n35,863\nProvision for Federal income taxes\n32,552\n121,375\nTotal Current Liabilities\n133,881\n223,185\nNote Payable to Bank - due 1949-1955 (Note 4)\n200,000\n200,000\nLess Payments due within one year - included in current\nliabilities\n28,571\n-\n171,429\n200,000\nCAPITAL STOCK AND SURPLUS:\nCapital Stock:\n$7 Cumulative First Preferred Stock (redeemable at\noption of corporation or on dissolution at $100\nper share):\nAuthorized and issued, 1,000 shares, par value\n$100 per share\n100,000\n100,000\nLess Purchased and held in treasury, 129 shares\n12,900\n12,900\n87,100\n87,100\nCommon, Class \"A\":\nAuthorized, 64,000 shares, par value $2 per share.\nIssued, 59,600 shares\n119,200\n119,200\nLess Purchased and held in treasury, 380 shares\n760\n760\n118,440\n118,440\nTOTAL CAPITAL STOCK\n205,540\n205,540\nSurplus (restricted in the amount of $13,660 pending retire-\nment of treasury stock) :\nCapital surplus\n91,585\n91,585\nEarned surplus\n336,774\n330,687\nTotal Surplus\n428,359\n422,272\nTotal Capital Stock and Surplus\n633,899\n627,812\n$ 939,209\n$1,050,997\nUNITED STATES RADIUM CORPORATION\nStatement of Income\nand Earned Surplus\nFOR THE YEAR ENDED DECEMBER 31, 1948\nWITH COMPARATIVE FIGURES FOR THE YEAR 1947\nYEAR ENDED\nDECEMBER 31\n1948\n1947\nGross Profit\n$ 295,084\n$ 380,438\nSelling, Administrative and General Expenses\n218,131\n192,793\nNet Operating Profit\n76,953\n187,645\nOther Charges (Income) - net\n13,003\n(9,862)\nNet Profit before Federal Income Taxes\n63,950\n197,507\nProvision for Federal Income Taxes:\nCurrent year (Note 3)\n34,000\n72,000\nAdjustment of prior year's tax and accrued interest thereon\n-\n5,130\n34,000\n77,130\nNet Profit for Year (Note 3)\n29,950\n120,377\nAdd:\nEarned Surplus at beginning of year\n330,687\n206,939\nProvision for contingencies provided in prior years no\nlonger required\n-\n45,000\n330,687\n251,939\n360,637\n372,316\nDeduct Cash Dividends Paid:\nOn Cumulative First Preferred Stock - $7 per share\n6,097\n6,097\nOn Common Stock - 30¢ and 60¢ per share, respectively\n17,766\n35,532\n23,863\n41,629\nEarned Surplus at end of year\n$ 336,774\n$ 330,687\nNOTES TO FINANCIAL STATEMENTS\n(1) On February 11, 1949, the corporation received a cash dividend of $600 per share\non the 80 shares of common stock of Weksler Thermometer Corporation.\nOn the same date the corporation sold the aforementioned 80 shares of common\nstock of Weksler Thermometer Corporation for a total consideration of $8,000\nand agreed to sell its investment of 531 shares of 6% non-cumulative preferred\nstock at a price of $100 per share, the purchaser agreeing to effect the purchase\nthereof on or before December 31, 1955. As security for the performance of the\nagreement, the purchaser has pledged the 80 shares of common stock of\nWeksler Thermometer Corporation and a note of $25,000 executed by Weksler\nThermometer Corporation which is payable to the purchaser in installments\nfrom 1952 to 1954.\nAs a result of the foregoing, the company has realized $56,000 on the common stock\nand expects to realize $53,100 on the preferred stock.\n(2) Subsequent to December 31, 1948 the corporation sold its real estate leased to\nothers for $13,125.\n(3) The provision for federal income taxes for the year ended December 31, 1948\nhas been computed without the deduction of a provision for doubtful accounts\nof $25,000.\n(4) Under the terms of the note payable to bank, the corporation has agreed, among\nother things, to maintain an excess of current assets over current liabilities of\nat least $225,000.\n(5) Reference is made to the accompanying President's report for status of suit which\nhas been pending in United States Tax Court.\nACCOUNTANTS' REPORT\nTo the Board of Directors,\nUnited States Radium Corporation,\nNew York, N. Y.\nWe have examined the balance sheet of United States Radium Corporation as of\nDecember 31, 1948 and the related statement of income and earned surplus for the year\nthen ended. Our examination was made in accordance with generally accepted auditing\nstandards, and accordingly included such tests of the accounting records and such other\nauditing procedures as we considered necessary in the circumstances.\nIn our opinion, the accompanying balance sheet and statement of income and\nearned surplus present fairly the financial position of United States Radium Corporation\nat December 31, 1948 and the results of its operations for the year then ended, in\nconformity with generally accepted accounting principles applied on a basis consistent\nwith that of the preceding year.\nPEAT, MARWICK, MITCHELL & Co.\nNew York, N. Y.,\nJune 10, 1949.\nULC\nRADIUM\nUS"
}