Evening Star Newspaper, June 30, 1937, Page 21

FINANCIAL., CURB LIST GAINS ON BROAD FRONT Oils and Utilities Lead Ad- vance of Fractions to More Than $1. B3 the Associated Press NEW YORK, June 30.—The curb market moved forward on a fairly broad front today. most groups join- ing in the upswing. Oils and utilities were in the van and gains of from fractions to over a point were scored. Consolidated Gas of Baltimore swung up a major fraction following announcement of the company's five months’ earnings. Niagara Hudson Power and Arkansas Natural Gas “A" edged up fractions while American Superpower was unchanged. Creole Petroleum gained more than & point and Sunray Oil, Gulf Oil and International Petroleum were im- proved. Mining issues were a little mixed. Newmont lifted a point while | New Jersey c fell around 1. Leaning forward were Pitney Bowes, Fisk Rubber, United Wall Paper, Glen Alden and Technicolor. CURB BONDS DOMESTIC Ala Power 4s ‘7 Ala Power 58 4 A : | Brown Co pf _ Emp O&R ¥ 3 1003, i ndnap P&L 7 Salt 10435 1 10374 1¢ o, I Dy g ) Tadkin R York R Borz M B FOREIGN EXCHANGES. NEW YOR hanges easy nquoted: )40 Poland. Yigoslavia cal. 4.500 G Caechosiovak Austria. 1x NEW YORK SUGAR. NEW YORK. Ju fures were irre holding relatively st ing_reflecting b tone in the spot market. while No. 4 was eacier Under July Mauidation and scattered hedge selling July. No. 3. sold up to %51 and Bep- tember to 751, or s net higher. but eased in the oi early afiernoon with the arkel around the beginning of the last our unchanged to 2 boints net higher. 2 In No. 4 contract July. after selline at 1773 was around 118 with the general about 1'2 to 2 points net lower U. S. TREASURY NOTES. NEW YORK. June 30 (2 —Prices quoted n dollars and thirty-seconds. PICI i Month Sep., 10 ORI 26 1008 BOSTON WOOL MARKET. BOSTON. June 30 (P.—(United States Department “of ~Agriculture.)—The ~ wool market continued quiet today. Mills showed little interest in_buying spot wool for de- livery after the strike is settled. An ‘occasional smali lot of country- packed medium Ohio fleece wool. offered from the country. including combing and clothing lengths three-eighths and one- uarter biood grades. was sold at around cents in the grease delivered East, Western grown wools were quiet and ¥pot quotations were mostly firm. Mill buyers were occasionally placing_orders in the country for fine Western wools. but_their bids were below the parity of asking prices and spot wools in Boston. it 311315001 joeTeeeer. Texas Electric Service Co. preferred { Bellanca Aircraft o | Bunker HI&S 11, | cry c By private wire direct to the Star. All time shown below is davlight saving on which the Exchanse is now operatins. Stock and Sales— Dividend Rate. Add 00. High. Aero Supply B 3 a3y Air Investors 2 3% AfrInvestwar _. 5 3 Ala Gt South (3). 1258 74 Ala Pwrpf (6)__. 508 5913 Aluminum of Am 50s 138'% Alum Am pf (6) .. 10a114'¢ Am Afrlines Inc. & 23% Am Box B'd bive. 2 19'x Am Capital (B) 1 % Am Centrifugi 6 4% AmCP&LAwWW2 % 1 31% Am CP&L A (3).100s 314 Am C P&L B b30e 2 3y Am Cynm B t60c. 5 30y% Am G&E (1.40) _. Am Gen (a50c) . Am Mfg Co (b2)_ Am Maracaibo __ Am Superpower .. Am Superpwr pf_ Angostura(t20c). Anchor Post F Apex Elec (al) . Appalch E P pf 7. Arcturus Radio._ Ark NatGas _ __ Ark Nat Gas (A). Ashland Ofl t40c. AssOG & E (A) _ AssoG & F $5 ptf. Asso Laundries.. Atlas Corp war_ Austin Silver 3 -3 1144 114 23 23% 194 19% S 4% 31 R 33 Auto Products Auto VM (750e)." Avery & Son - Bald L bd rts(d) . Barium Stain Stl. Barlow&S A 1.20_ Rath Iron Wks E 2 - Bell Tel Pa pf 615 Berkey & Gay __. Bliss (EW) ____ Blue Ridge(bl5c) Bohack ilC 1st pf Bowman Biltmr Brazil TL&P by0e Brewster Aero _ | Bright Star E1 B_ | Brill Corp (A) > » 2 & R RN e T O E 0D et | Brown F' (b30c) . Buckeye P L (4) s 7 Cable El Prod vte | Can Hydro 1st pt Can Ind Aleo A__ | Can Marcont Car{b Synd(b50c) Carnation (1) | Carnegie Metals 2 { Carrier Corp 517y | Catlin (as0c) 6 | Celanese 15t t7__ Cellulotd Corp | Cen Hud G&E 80¢ |Cent&s W Util_. | Cent States El { Centrif P t40c Childs Co pf Citles Service. Cities Serv pf _ City Auto (160c) - Claude Neon Lts_ Colon Dev Ltd___ Colon Develop___ Colon Develop 6% f (30c Colts P F A b7 | Col G&E cvpt(5) Col O & G b20c Community W §_ Comwlth Edis 4. Cons Afreraft __ Cons Biscuit 60c_ Consol Copper __ C GEL&P Bo 3.60 Cons Gas Util Cons Gas Util ws Cons Retail Strs | Cons Ret S pf(8) 13708103 Cons Royal (20c) | Contl RolI&S Fy_ | Cooper Bessmer. Cord Corp Cosden Petrol | Cosden Pet 57 pt Creole Pet 1(50c) | Crocker-wWh aloc Crown Cent afe _ Crown Ck Int A 1. ‘rown Drug Co __ stal Ofl Ref 1% L 1% 1% 27% 273 13, 2 500 517y 6 6 508 508 1047 10474 10 LI 11 161 17% 9 £ 18 54 381 57 Darby Pet (50c)_. Detroit Gask t1__ Det Gas pf 1.20 _ Distilled Liquors. Dubelier Conds ... Eagle P Ld b20c . Eastn G&F Asso. istn G&F A pf 3. ¢ (ase) nd & Share_ Equity Crp a®* Evans Wall Ld __. F.x-Cell-O (b40c). airchild Aviat__ Ford(Can)A (1)_. Ford Ltd b21.3¢ _ | Froed G & M 60c | Gen Firepr bjsc_. Gen Invest. . __ Gen Tire & Rub__ Gilb't ACpf 314 Glen A Cb121zc.. Godchaux § A b2. Gorham Inc pf Grand Natl Fims Grt A&P T nv 16 Grt A&PT 1stpf7 Greenfleld T&D _ Guardian Invest_ Gulf Oil (b30c) Hall Lamp (b20c) Hartford E L 2%, Hartman Tob Harvard Brew Hat Corp B 80c. Hecla Min b4sc _ Hewitt Rub bi0e. Hollinger G t65c. Horn&Hard pt 5._ Hud Bay M bisc. Hygrade Food P_ Hygrade Sylv(3). 1l1inots fowa Pw._ Imp Of] Ltd t50c. Insof N Am 2 Intl H&L Lta 50s 1023 20 283 31 43 7 20% 667a 2% Intl Radio b25c_... Intl Ut (B) .___. Intl Util war new Intl Vita (50¢) _. Interst P Del pf_. Inv Rovalty téc.. Iron Fire vtc 1.20 2508 Jeannette Gla60c JerCn P&L pf 5% Jer CP&L pf6__. Kingston Pr40c_. Kirby Pet (20c) .. Kleinert Co(60c). Lake Shore (t4).. Lakey Foundry.. Lefcourt pf a75c.. Leh Coal&N 30c.. Leonard Of1 = Lion Oil Ref (1) Locke St1 C 80c._. Lockheed Afr _. Lone Star G 80c... Long 1sland Ltg. Long I L pf A(7). Loutsana Ld 40c._ Lynch Corp (12). McCord Rad (B). Majestic R&T M'reoni b17 8-10¢ Massey Harris Mead John'n (13) Merritt C&S pf A Mesabi Iron Mex-Ohio Ofl Mich Bumper _.. Mich Gas & Oil Mich Stl T b50c.. 2 124% Mid Sta P vtc(B). 3 1 Mid W Abraloe._. 1 24 2% 24 Molybdenum . 3 9% 8% 9y 1 1008 112 110 112 50s 60 58 60 12 & 2 2% 6 1% 3 8, 8 12 125 1 1 share earnings, 12 months ended May 31, were $23.14, against $17.82. ) 1 Mont Ward A(7). 10s 136% 136% 136% Moore C Ltdb40c. 50s 43 4'.‘: ‘J So N * | soutt 5| THE EVENING STAR NEW YORK CURB MARKET 2:30 Stockand Bales— Dividend Rate. Add 00. Mort Bk of Col (Am Sh) b1.35_ Mount C (a21c) _ Mount Prod(60c) Mount St T&T 8 . Murry Ohio bé0c. Nat Rellas Hess_. Nat City L b25c . Nat Cont (b50c) Nat Service Nat Service pf Nat Sugar N J(2). Nat Trans b4sc _ Nat Union Radio. New Hav Cl 114 NJ Zinc (t2) _. New M&A Ld alc. Newmont M b135. Niag Hud Power. Niag H P(A)war. Niles-Bem-P (bl) Noma El (b40c) _. NorthAmL&P_. Nor Am L&P pf__ 50s Northern P L 75c. 2 Nort StatesP A . 1 20% Ohfo Br (B) b11; 50s 57 Ohio Pwr pf (6)_. 10s 104 7 Okla Nat Gas pf_. 50s Overseas Sec 60c. 4 Pantepec Oil 8 Park RE & R b40c 5 Pennroad (a2fe). 14 Pa P&L pf (7) __ 25s PaWat& P (4) _ 1 Pepperell Mfg 16. Phoenix Secur Phoenix Spf A 3_ Pioneer Gold 40c. § Pitney Bow t40c. Pitts P1 G1(b234) Pleas Val W b10c Powd'l1&Al b35c_ Producers Corp _ Prosperity Bal3 Pub S [nd prpt__ Pug Sd P&I $6 pf. 1255 26 Quaker Oats (5) . 130s 110 Ry & Lt Secal 25 50s 178 Rainbow Lum B LR Raytheon Mfvte. 2 5 Reed Roll B t80c. Reiter Foster. __ 1 Reynolds Invest_ Rice Stix bTsc) _ 9 Richmd Radiator. 4'y Root Pet (b25c) : 0. Royal Typw bl 200s 1091, Rustless | & Stl 8 11 Ryan Consol _ 1 S5h Safety CH&L bé_. 258 111 St Regis Paper._ 3 Ty Samson United_. 5 | Savoy Oil 2 Segal Lock & H Seiberling Rbber. Selected Indus Seton Leath as0c. Seversky Alr _ Shawin W&P 80e. Simmons H& P_. Singer Mfg Ltd rots (a284sc) | Solar Mfg(bloc). Sonotone (al10c) . Soss MIg (50¢) _ Tel (7) d Roy bz0e. Spencer C S b75c. Stand Dredging__ Stand Oil Ky t1 _ Stand Oil Ohio 11, Stand Pwr & Lt __ and S& L (4c) . tand Stl Sp a2 arrett Corp vte. Sterchi Broas(c_ Sterling Ine t200. Stinnes (Hugo) Stutz Mot C (d) . Sunray Oil (b5c)_ Sunshine Min(3) Superior Port C B 100s Swiss Am El pf__ 150s 116!, Taggart Corpn .. 2 10 Taylor Dist 80c . 2 33 Technicolor as0c. 22 29, Tex P&L pf (1) - 40s 101 Texon Oil&L 6lc_ 3 5 Thew Shov asle 50s Tob Prod Exp 15¢ Trans-Lux 120c Transwest Oil Co Tubize Chatil Tung-Sol Lamp. Ulen&Co 5% pf__. Utd Chemical Unit Gas Corp..... Unit Gas war_ Unit Lt & P (A Unit L&PpfA_. Utd Shipyds B __ Utd Shoe M t215 USFollB (1) _ US&IS1stpfb2iy US Lines pf _. US Radiator Unit Stores vte _. Unt Ver Ex (b1)_ Unit Wall Pblsc Utah P&Lpf b1 Utilities P&L(d) Util P&L pf (d) .. Utility Equities Utllities Indus Valspar vte Valspar pf vic Venezuela Mex_ Venezuela Pet Wentworth bljc_ W VaCoal&C._. Wilson-Jones n__ Wolverine PC.__ Woodley Pet t40c Wolverine b40c .. Wright Harg t40c Yukon Gold (béc) Dividend rates In @ollars based on Iy puartly or semi-annual payment. rate—not Including extras. ks cumulated dividends. a Paid last e b Paid: this vear. = d Companies reported as being in bankruptcy or in receivership. or being reorganized under the bankruptcy ::'file“ securities assumed by such com- s, New Y:J( Banks Report Few Small Deals in Francs By the Assoclated Press. NEW YORK, June 30.—A few small transactions in the French franc were reported by New York banks today, de- spite the fact Paris and London mar- kets have suspended trading in the currency. The rate quoted was around 4.10 cents, a discount of 0.33 of a cent from vesterday’s nominal closing rate of 4.43 cents. The dealings were described as strictly commercial, the francs being supplied by the official control. The French financial crisis tended to depress both Swiss and Belgian cur- rencies. Swiss francs were sold at 22.83!; cents, off 0.07 of a cent, and Belgian belgas at 16.84 cents, 0.04 of a cent down. Both units have been more or less allied with the French currency since its devaluation last September. High. Low. Close. 45 10% 6 1398, 19' 4% 45 10 101 6 6 > 139% 19's 139% 191 1% 5 2 o 3 10 1 DO RS Bt i 10 IO NS 10 = e 20 50 101 734 258 110 ™ 813 110 26's 109 17 10915 17 ) # 11y 3 6 2 . 1 5t SHORT-TER MSECURITIES. (Reported by Chas. D. Barney & 0% Amer. Tel. & Tel. 5%28 1043 112V Auburn_Auto Co'4s 1839 4712 Baldw. Loco. Wks. 55 1940 102 Calif. Pack. Corp. 53 1940 104% Caro., Clinchf. & O 88 1938 103 Chesap. & Ohio Ry. 55 1939 1 Edison Elec. Illum. 4s 1939 1 1 1 i b. s high Val. Ter. R: Long Island Gen. 4 New' York Dock 5s 1038 N'Y. Susa. & We. 55 1940 _ N. ¥, Tel. a8’ 19 Rio Grande Western 4s 11 Sou. Bell Tel. & Tel. 58 1941 1 Ter. R.R. As. St.L. 4'3s 1939 Vanadium Corp 85 1941 1, Vertientes Sug_ Co. 75 1942 Wabash Rwy. Co. 5s 1939 _ Warner Bros. 6s 1939 Wi i X 5 194, West. Union Tel. 55 1938 e liid Norfolk Southern Railroad May net railway operating income was $5,237, against $1,470. In five months net railway operating income was $102,290, against $29,140, 1090 100% 100% ’, | Quarterly WASHINGTON, MACHINERY SALES CONTINUE TO DROP Industrial Uncertainty and Seasonal Factors Cause Trade Slackening. Special Dispatch to The Star. NEW YORK, June 30.—Except in one or two sections of the country machinery sales continue their down trend, reports American Machinist. Industrial buying is naturally dis- turbed by industrial uncertainty. In addition, the high volume of ma- chinery shipments during the past year have filled the most urgent needs of many*plants so it is not strange that a slackening of sales should be felt in a season that in “normal” years has seen the low point in activity. However, inquiries from concerns not previously active in placing orders indicate that the basic demand for manufacturing equipment is still a long way from being satisfied. New England reports a slow month of June with expected orders unex- pectedly withheld. On the other hand inquiries continue in good volume which makes the outlook for future sales optimistic. The New York territory is a bright spot, with sales for June maintaining the May level and activity continuing strong. While off from the year's peak, machinery sales in Philadelphia hold a satisfactory volume but in- quiries are scarcer. Confidence is expressed for the Fall months despite the tendency to hold up buying be- cause of labor uncertainty. Pittsburgh has felt a decided re- cession in both orders and inquiries. A few Cincinnati manufacturers en- Joyed better machine tool sales in June but here, too, the trend points slightly downward. Some delay has been experienced because of the slow delivery of materials. There uare indications, however, that some large orders may break in July. Business in Cleveland is getting pretty thin. Detroit volume has been maintained because of buying on the part of three or four companies. Inquiries are not coming in as freely as they | number of plants will close during business is quiet and will likely re- main so until September. Some slowing down is felt in Chi- cago, but there has been an increase in inquiries. If two or three large deals materialize volume will be sub- stantially increased. The fact that orders are being received from steel companies still in the throes of labor difficulties is an encouraging cation. Small tool business has held up very well. May and the first half of June were good in Milwaukee, but the last two weeks witnessed a falling off. Both | Rood level in Indianapolis. Inquiries manding a lot of attention In St louis, however, orders are decidedly off and inquiry is slower. The Pacific Coast has also experienced tool buying. INVESTING COMPANIES NEW YORK. June 30 . —New York Security Dealers' Association (Noon quotations ) Admin Pn “nd Inc Am Business Shrs Am Gen Ea Inc Am Inc Stocks Bancamer Blair z Bankers Nat Inv Corp Basic Industry nv e_Tr Sh Depos Bk Sh Depos Ins” Sh Corp = Banks 8h A Insurance ixed Trust Sh B ; 8 Fund Investors Inc Fund Tr Shr. Fund_Tr Shrs Gen Inyestors Tr Group Sec Agricu ure Sec & ‘Automobile _ Sec Buiiding __ Sec Chemical_ Sec Food = Sec Invest Shrs _ Sec Merchandise Sec Mining Sec Petroleum R2RSTERRY, Bank Group Insurance . , e i Keystone Cust Pund B-3 Major Shrs Corp_______ Maryland Pund Mass Invest Tr Mutual Invest Nation Wide Sec Sy N0 DR DL A D 2 BRAHIZaDIRG ° 3 Stocks ~ s Blde. Supply Elec Equip Insurance Stock: North Am Nor Am Tr Shares Nor Am Tr sh1 58 Plymouth Fund Inc Income Sh Selected Am Sh Inc Spencer Trask Pund Stand Am'Tr Shrs Stand Util Ing Super Super Super Super of Am Tr of Am Tr Super of Am Tr Super of Am Tr Bupervised Shrs Trustee Stand Inv C Trustee Stana_Iny Trusteed Am Bk "B Trusteed Industry Shrs Wellington Fund ._ CHICAGO PRODUCE. CHICAGO. June 30 (P.—Poultry. live. trucks: ~hens steady, chickens ' easy: hens over 5 pounds. 17%: 5 ess. o= W Soio | EF] roosters, 14: 2. small. 11, 16.309, (93 score), i extra -89) firm: _creamer: 30Y2-31; extr firsts ' (60-81). 29 27 Va2, seconds 5-87) centralized carlots). rm: extra firsts, fresh graded firsts. current receipts. 19: . 21%: storage- L 271, a8ty standards (B0 Eges. 1557 nia ) stronger demand C blers : supplies : sacked. per cwt. California White U. 8. No. 1. 1.55-85. car. fine_qual- ity. '1.70:° U.' 8 Commercials. 1.40-50: Virginia Cobblers. U. 8. No. 1 Missouri Cobblers. partly graded. 1.07%4- 20 ungraded. -00: North 'Cartolina Cobblers. U. 8 No. 1, car, generally good condition. 1.33: showing heated and_de- cay. 1.00-15: U. 8, No. 2. car. 83: Bliss Triumphs, North Carolina, 0, 1, 1.40-60: U. 8. No. 2. 1.00: ‘Arkansas. U. 8. No. 1. 1.4 i showing heated. some de- Mississippl. U. 8. No. 1. 5: Oklahoms. decay. ~ 90-1.00: 8. No. 1. cay. 1 few' saies 1. showing Cobblers, U. 1.05-15. U, 8. 'No. Oklahoma B showing decay. RUBBER FUTURES. NEW YORK. June 30 (#.—Crude ru b- ber “futures of aulet, § lower fo 6 B Rl el were and the prospects are that a | | July for a changeover period. Supply | indi- | inquiries and orders have kept at a | from the Indianapolis Engine plant | ;1 of International Harvester are de- | something of & slump in machine | D. C, WEDNESDAY, JUNE 30, 1937. FINANGLAL. [ a A-—-21 CARRIER PROFITS EXPECTEDTO GAIN Heavy Fall Traffic Likely to Offset Increase in Oper- ating Costs. Bpecial Dispateh to The Star. NEW YORK, June 30.—Railroad | earnings are expected to continue their wide gains in the last half of | 1937, states a recent Brookmire Bul- | letin. The main cause for a gain in | earnings now apparent for the first half of 1937 has been increased trafe fic, and prospective traffic for the Fall—seasonably the period in which railroads made the larger part of | their net income—is expected t be well above that of 1936 in spite of temporarily unfavorable elements | such as strikes, higher expenses and | wage increases. Although negotiations are under way for increasing rail wages, neither | amounts nor effective dates have been determined, points out the Bulletin, which finds that any cost increases should be more than offset by the Peak | prospective increase in traffic, due 1937 2 9. Gt ]| |Perucularly to the outlook for con- - siderably larger farm crops. A prob- able reduction in pension c and possibilities for further rate increases being granted to the railroads further brightens the Fall outlook. Balancing all factors, concludes Brookmire, the prospect remains for | & considerable gain in railroad earn- ings for the fiscal year of 1937, which in turn should prove favorable to not only the railroad companies but to business as a whole. Prices of Selected Commodities, First of Year, at Peak of Year and Now CORN (July) Per Bushel WHEAT (July) COPPER Por Bushel 1937 1937 RUBBER Per Lb. Islstsl Jan. 4 1937 Per 100 Lbs. Jan. 4 1937 eak ow 1937 Jan. 4 Peak 1937 1937 Now 19371937 U. S. TREASURY POSITION. By the Associated Press. sets” S| 07R350 The position of the Treasury on June 28 Receipts. $18.474.420.89, expenditures. —— Saaani-on pressu; Volume was light in other N3 82 balance. £2.550.340 - 4. cusioms receipts for the month, A 1.144.187 62 MONTREAL SILVER &rouns. Prices eased in tobacco and fron the fiscal vear (since July | MONTREAL. June 30 (Pi—Silver fu-|and steel sections and ofl and rubber 307 expenditures_ $8.055 - | tures opened steady. 10 to 14 higher. Julv. | shares “were lower. Tr -Atlantics re- e Al D T Do R i R ;rm»rrd some of vesterdav e insees and nditures: excess of expend- | zilt-edged issues were about even £.141 58 gross debr St~ | 44 b—Bud PARIS —Closed 306,800 R01.90. a decrease of $1114 - i1 the previous day. gold as- including $1.- ®old. FOREIGN MARKETS. LONDON. June 30 @ ket closed weak today as gold and cop- | per shares gave way to moderate sel —The stock mar- TRis is not an Ofering Prospectus. The offer of this Preferred Stock is made only by means of the Offering Prospectus. This issue, theugh registered, is not approved or disappreved by the Securities and Exchange Commissien, which does not pass on the me of any registered securities. 500,000 Shares E.I. du Pont de Nemours and Company Preferred Stock —$4.50 Cumulative (WITHOUT PAR VALUE) Junior to the Debenture Stock of the Company both as to assets and dividends. Preferred oter the Common Stock of the Company as to assets to the extent of $115 per share and accumulated dividends on voluntary dissolution and to the extent of $100 per share and accumulated dividends on involuntary dissolution, and as to cumulative dividends at the rate of $4.50 per share per annum. Quarterly dividend payment dates, January 25, April 25, July 26 and October 25, Redeemable, at the option of the Company, at any time, in whole or in part, upen at least 60 days’ notice, at $115 per share and accumulated dividends. The following is merely a brief outline of certain information contained in the Offering Prospectus and issubjecttothe moredetailed statementsinthe Ojfering Prospectus and the Registration Statement,which also include important information not outlined or indicated herein. The Offering Prospectus, which must be furnished to each purchaser, should be read prior to any purchase of this Preferred Stock. THE COMPANY The Company was organized in 1915 under the laws of Delaware and with its subsidiaries is engaged principally in manufacturing and selling diversified lines of chemical products and other products related thereto. In addition the Company and its subsidiaries hold investments in other companies, the most important being 11,956,686 shares, or 27.5%, of the outstanding common stock of General Motors Corporation, of which shares 1,956,686 are applicable to minority interests in a subsidiary. The Company is advised that Christiéna Securities Company owns 3,049,800 shares, or 27.56%, of the Common Stock of the Company and that certain of the directors and officers of the Company have a controlling interest in Christiana Securities Company. The Company disclaims any admission of effective control of it by Christiana Securities Company. The principal manufacturing and sales ectivities of the Company are conducted through eleven departments or divisions, which are listed in the order of their tive positions from the standpoint of dollar volume of sales for the years 1935 and 1936, as follows: Pabries & Finishes (including pyroxylin-coated fabrics and lacquers), Organic Chemicals (including dpestufis), Rapon, Gresselli Chemicals (heavy chemicals), Explosives (excluding smokeless powder), ““Cellophane’’, R. & H. Chemicsis (specialized chemicals), Plastics, Krebs Pigments, Ammenia, and Smokeless Powder. The Company and its subsidiaries have two of which are held in fee. In eddition the warehouses, magazines for explosives, whole or in part under lease. plants in the United States and one in England, all but hes & large number of ether properties including and sales offices, a number of which are held in Bolance Shoet Amount Outstanding es of bl LT 5 1,135.000 CAPITALIZATION Debenture Stock—6% Cumulative, $100 par vaiwe (1,892,948 shares 5 169,294,800 Common Stock, $20 par vaiue (11,045,204 shares in Aands of public; 20,458 shares in treasury) 221,315,240 Nete: As of December 31, 1936, 00,458 shares of Common Stock in the treasury of the Company and 767 shares owned by sudsidiaries were Neld for ewards to ofieers, directors end employees under benus plans. As of May 81, 1387, there were £9,498 shares so Aeld in the treaswry of the Compeny and 226 shares ewned by subsidiaries. Unsecured 5% notes payable to the Trusiee under the Pension Plan of the Company were outstanding as o. December 31, 1936 in the amount of $20,663,354. and as o May 31, 1837 in the amount of $20,731,354, maturing yearly through 1943 in varying amounts. The Ry wes oblipated as guarantor of principal of and interest on 6% mertgage bonds in the amount of $30,023 es of December 31, 1936, and $71,737 as of May 31, 1937. PURPOSE No specific allocation of the net proceeds (estimated at $48,628,000 after deducting expenses) to be OF I8SUE derived from the sale of the 500,000 shares of Preferred Stock—$4.50 Cumulative has been or is intended to be made. The net proceeds will be placed in the general funds of the Company. The Company believes that it is prudent to raise additional new capital at this time to provide against contingencies calling for greater werking capital and to provide against reduction of its cash funds whiech, assuming a reasonable dividend Ppolicy, it expects would otherwise take place over the next year due to cash expenditures for expansion of plant facilities and te increased working capital requirements to finance increased inventories and receivables r ulting frem a general expansion of the Company’s volume of busin EARNINGS The following figures are taken from the Consolidated Statement of Income in the Offering Prospectus and are subject to such Statement of Income, the related netes, and the Principles of Conselidation. 1934 1935 193¢ . $179,932,883 $220,527, $260,333,220 ,292,441 40,839,075 52,965,490 14,999,635 22,497,720 44,004,389 Net Sales and Other Operating Revenues Income from Operations. . . Dividends Received from Investment in Other Income 6,385,975 4,746,320 Consolidated Net Income 46,701,465 89,884,449 Dividends on the Debenture Stock amounted to $6,555,634 in 1934, and $6,557,586 in each of the years 1935 and 1936. Dividend requirements on the 500,000 shares of Preferred Stock—$4.50 Cumulative are §2,250,000 per annum. PREFERRED STOCK— Total amount of Preferred Stock autherized is 500,000 shares. The Board of Directors h. $4.50 CUMULATIVE determined that the capital of the Company in respect of each shall be §100. The Certificate of Incorporation of the Company pr. that the holders of the Preferred Stock shall h no voting power on any questions whatsoever except as otheriri provided by law, and except that in t vent t the Company shall fail te pay any dividend on the Preferred Steck when it regularly becomes due and such default shall continue for the period of six (6) months, then until but not after such time as accumulated and unpaid dividends en all outs anding Preferred Stock shall have been paid, at each meeting of the stockholders of the Company held for the purpose of electing directors and at which the holders of any Debenture Stock then outstanding are not entitled to vote upon the election of directors, the holders of the outstanding Preferred Stock shall have the exclusive right, voting separately and as a class, to elect two directors or, if the total number of directors of the Company be only three, then only one directo:. Ne holder of any shares of the Preferred Stock shall have any preemptive or preferentialright of subscription to any securities of the Company (ssued er sold exoept as the Board of Directors of the Company may determine. UNDERWRITING Subject to certain terms end conditions, the Underwriters, including the undersigned and others named in the Offering Prospectus, have erally agreed to purchase an aggregate of 500,000 shares of Preferred Stock—$4.50 Cumulative from the Company at $97.50 per share, or a total of $48,750,000. Such shares are to be offered to the public at $100 per share, or a total of $50,000,000, plus accrued dividends from date of issue. The underuwriting discounts are $2.50 per share, or a tetal of $1,260,000. Under the Purchase Agreement payment for and delivery of the shares are te be made on or after July 7, 1937 but net later than July 31, 1937. r ‘General Motors i’ofpo;cflfon Price $100 per Share plus accrued dividends from date of issue The Underwriters, including the undersigned and others named in the Offering P.roupectua, have agreed to purchase these shares of Preferred Stock on the terms and conditions set forth in tju Purchase Agreement, including the approval of legal matters by Messrs. Davis Polk Wardwell Gv'vduur & Reed, counsel for the Underwriters and by Mr. H. C. Haskell, counsel for the Company. It is expected that delivery of definitive certificates for the Preferred Stock will be made at the office of J. P. Morgan § Co., on or about July 7, 1937, against payment therefor in New York funds. As more fully set forthin the Offering Prospectus, the Underwriters have authorized tI'w purchase and sale, in the open market or otherwise, of the Preferred Stock for their several accounts, either for long or short account, within the limits and during the period set forth in the agreements therein referred to. Further information, particularly financial statements, Securities and Exchange Commission, purchaser is contained in the Registration Statement on file with the and in the Offering Prospectus which must be furnished te each and is obtainable from the undersigned or from any other Underuwriter of this issue. MORGAN STANLEY & CO. Incerperated Dated June 30, 1937.