c
3
PAGE
SUBJECT
Stockholders
meeting
Directors
and
Highlights
______________
2
- _____
Financial
report
-- ____ -- _______________________
- ____
3
____ -- ____
4
- _______
of operations--------------------------------
President’s
-- ____ ----
5
____ --
review:
Working
capital-------------------------------------
5
_______
Sales------------------------------------------------------
6
Earnings_--------------------------------------------------
6
Dividends---------------------------------------------------
7
Payrolls----------------------------------------------------
7
Employee
Capital
Carbon
Ink
-__----__------_-_--____________________----
officers-----------
benefit
plans------
expenditures
black
8
____ -- _____ --_-__-----_--__--__--
---_-----
____ -_-_--__---_-
division---------------------
9
____ - __________
10
_______________________
11
division----------------------------------------------------
Map of gas and oil properties
Gas and oil divisionFinancial
____ ----___---__-----_---~--~~-~~-~~~-
14
_______
statements:
Consolidated
balance
Consolidated
summary
Consolidated
earned
Certificate
Subsidiaries
Significant
12
and plants-------------------------
of
and
data
STOCKHOLDERS
sheet--of
operations
surplus---
accountants---
____ ---
_____
-----___--
since
18
_________________
_____ -- ____ ----__------__-
of Company
16
___________
____ ---___----_--___-__-
organization---------------------on growth
------__--
________
19
_______
20
______________
formation----------------
-
21
22
MEETING
The next meeting
of stockholders
will be held ut Wilmington,
Delaware,
on March 20, 1951. A formal notice of the meeting,
together
with a proxy statement
and form of proxy for those
unable to attend, will be mailed to each stockholder
on or about
February
26, 1951, at which time proxies
will be requested
by
the management.
BOARD
OF DIRECTORS
T. J. BUTLER-----_--_--------_-------------------------------------~~~S~~?~,
Texas
s. c. cOLEMAN------------_--------------------------------~e~
York, NeW
s. s. HATHAWAY----_--------------------------------------~CZU
YO?%,
L.
C. HERKNESS-----
_______ - ____ ---------------------Philadelphia,
T. F. KOBLEGARD----------------------------------------C. H. MCHENRY _____ ---_--_--_--_--___-________
OSCAR NELSON _______ -__--_--_--_----
PennSykXWtiU
-WeStOn,
West
LOlliSiUnU
_______ -----------Charleston,
NELSON,
T. A. wHELAN--------------------_-------~~.-~~~-~~~~~~~
---~veStOn,
EXECUTIVE
West
Virginia
West
Virginia
Texas
West
vi?+@&
York,
P. wILLETTS-------------------------------------------~CZ~
W.
Virginia
_____ ----------MOwOe,
JR.___ - ______________ -___-___- ____ ------Charleston,
T. S. REED-----------------------------------------------------BeaZimOnt,
OSCAR
YO’?-k
lveu; YO?-k
New
York
COMMITTEE
C. H. MCHENRY
0Sc.4~ NELSON
s. s. HATHAWAY
T. A. WHELAN
T. F. KOBLEGARD
OFFICERS
OSCAR
N~LsoN------______-_-------------------------------------------Pres~dent
T. F. KOBLEGARD--------------------------------------------~~rSt
OSCAR
T.
NELSON,
JR.--------------------------------------Execzlt~ve
Vice President
Vice
S. ResD-------------------------------------------------------v~Ce
C. H.
President
President
McH~NRY__--_----_---____------__-----------------------------------~ecretary
T. A. WHELAN--------------------------------------------------------Tre~sz~rer
OSJIAN
E. Swmm------------
ARTHUR
___________ General
C. A. PAuLEy---
____ --__--_-_--
AGENT
GUARANTY
TRUST
CO~IPANY
OF NEW YORK
REGISTRAR
THE CORPORATION TRUST COXPAXY,
New
Yor7c
ACCOUNTANTS
F. W.
CORPORATE
LAFRENTZ
United
& CO~C~PANY
OFFICE
100 West Tenth
EXECUTIVE
and Assistant
_______ - ____ ---------fhSiStn?Zt
_____ ----_- ____ ---------------Assistant
A. G. TREADGOLD-----------_------------
TRANSFER
Col!nsel
HANSON---------------------------------------------ASS~Sta~Zt
Xtreet,
Wilmington,
Delaware
OFFICES
Carbon Building,
Charleston,
West
Virginia
Secretary
XeC?"etU?+?J
Treasurer
Treasurer
-
NETSALES
($29,780,1!5
1
-
NETINCOME
[$ 3,364,654
1’ $ 2,866,534
-
NETINCOME
PERSHARE
I
-
DIVIDENDS
[ $ 1,671,117
-
WORKING
CAPITAL
I$ 8,444,432
1
-
DIRECT
TAXES
OFALLKINDS
-
[$ 3,455,512
1c
PAYROLLS
ANDCOST
OF
EMPLOYEE
BENEFIT
PLANS
[$
-
GROSS
PROPERTY
ACCOUNT
I$55,088,80!
-
RESERVE
FORDEPRECIATION
ANi DEPLETION
[$36,260,347
1 $33,572,885
I
. 1
$423
i[$)
I
4,957,534$ 4,148,325
/I$51J04f5
I
ID
This is the twenty-sixth
annual report of
your Company
and covers the operations
for the year ended December
31, 1950.
For United Carbon Company,
it was a
year of extensive
activity and substantial
achievement.
We enjoyed
sales of record
proportions.
Earnings were higher and dividend payments were increased. Payrolls and
employment
also exceeded those of any previous year.
Favorable
long-term
contracts
to supply
important
pipe line markets with natural
gas were concluded
during the year. We
added materially to our properties and pursued a vigorous
development
and exploration program
of our oil and gas holdings
with gratifying results. Although the capital
expenditures
were the largest in the Company’s his tory, we were able to maintain a
sound and strong financial condition.
And
in addition to meeting the mounting
costs
of operation,
we were in position to liberalize the group insurance
and retirement
plans for the employees.
At the close of 1950 the Company had a net
working
capital of $8,444,432.00. This represented an increase of $667,770.00 for the
year.
Cash and government
securities amounted
to $5,685,370.00, an increase of $306,949.00
over the previous year-end. Accounts receivable increased $1,320,292.00.
Inventories of carbon black, crude oil and
inks were reduced by $870,115.00 during the
year while inventories of materials and supplies increased $302,023.00.
Accounts
payable and accruals
declined
$234,894.00 in 1950, and the provision
for
estimated
income
taxes was increased
by
$626,273.00.
The following
statement accounts for the
net increase in working
capital:
Principal additions to working capital :
Net income
from operations-__________-----------------------------------------------------Depreciation
and depletion deducted from income but not requirin, m outlay of cash- ____ ---___
Changes in sundry investments,
notes and miscellaneous
accounts--------------------------
$3,364,654.00
3,114,809.00
104,457.00
Total
$6,583,920.00
Principal
additions--_--_-------------------------------------------------------------------
deductions
from working
capital :
Net additions to property, plant and equipment__--_-------_----_----------------------------Dividends
paid-_---_---------------------------------------------------------------------Payment of mortgage
of subsidiary
company--__---__-------------------------------------Total
Yet
increase
$3,891,634.00
1,671,117.00
353,399.oo
deductions-__-_------------------------------------------------------------------in working
capital __________________
-- ___________
$5,916,150.00
- ____ -- ____ - ____ -__- _____ ----_
$ 667,770.OO
Substantial funds will be needed during
the current year to take care of the expansion of properties which has been scheduled
to provide for the growth
of the business.
Our sales totaled $29,780,000.00 during 1950.
This was $8,225,000.00 or 38.2% above the
1939 total.
Carbon black sales were $17,208,000.00
and registered an increase of $3,426,000.00
or 24.9% over the previous year. Sales of
natural gas totaled $7,808,000.00, a gain of
$1,164,000.00 or 17.5% over 1949. Sales of
crude oil and income from mineral royalties amounted to $2,672,000.00 as compared
with $1,129,000.00 in the previous year, an
increase of $1,543,000.00.
The ink sales of
Charles Eneu Johnson Co., Inc., a whollyadded $2,092,000.00
to
owned
subsidiary,
our 1950 sales as new business, the sales of
carbon black by that company
being included in the over-all
figures on carbon
black sales.
The contributions
to total sales by divisions during the past two years are compared
herewith :
The net income for the year 1950 amounted
to $3,364,654.00,
equal to $1.23 per share.
This compared
with $2,866,534.00
or $3.60
per share in 1949, an increase of 17.4 % . The
sales of natural gas continued
to be the
Company’s
most important
source of earnings.
The charges against operations
for the
year included $3,115,000 .OO for depreciation
and depletion,
$666,000.00 as a charge-off
for dry holes, abandoned
leases and wells,
$1,835,000.00 for intangible drilling costs of
oil wells, and $2,144,000.00
for estimated
Federal and State taxes on income.
There is presented herewith a comparative statement for the years 1950 and 1949
accounting
for our total income
and the
purposes for which it was used :
Carbon black___---------------Natural gas-------------------Oil and mineral royalties------Inks-----------------__--------Total---------------_--------
and requirements
1950
1949
57.8%
26.2
9.0
7.0
63.9%
30.8
5.3
-
100. v0
100. %
-
Yew
19.50
We received
From
sales of products
and other operating
income
a total of
$30,843,766
Per
of
cent
totc11
100.0%
Year
1949
Per
of
cerrt
total
$22,695,687
100.0%
$11,580,352
51.0%
We used
For
raw material, supplies and services, etc.
bought from others------------------_-----------------For wages, salaries, social security taxes and
benefit plans of employees _______________________________
For direct taxes to federal, state and local governments-----For wear and exhaustion
of properties
by providing
for depreciation
and depletion-- ____-_ ----__-----__---___
For dividends to owners----------------------------------.
And retained for use in business---------------------------Total_------_----------------------------------------
The 1950 dividends were paid at the rate of
50 cents per share for the first three quarters
of the year and at the increased rate of 60
cents per share for the fourth quarter, a total
of $2.10 per share for the year. The dividend
disbursements
amounted to $1,671,117.00 on
the 795,770 shares of outstanding
Common
Stock, as shown herewith:
Total
payment
Record
date
Payment
date
Feb.
May
Aug.
Nov.
March 10
June 10
Sept. 10
Dec. 10
$ .50
.50
.50
.60
$ 397,885.OO
397,885.OO
397,885.OO
477,462.OO
Total
$2.10
$1,671,117.00
-
28
25
22
28
--_---___
There were 4,657 registered owners of the
Company’s
stock at the end of 1950 as compared with 4,615 at the end of the previous
year.
Pawdls
*
Wages and salaries paid in 1950 aggregated
$4,626,571.00, an increase of $774,271.00 or
20 % over the year 1949. Individual earnings
also were higher in 1950 than ever before
and averaged $3,921.00 per employee.
The
average number of employees
on our payrolls during 1950 was 1,180 as compared
with 1,008 in 1949.
52.49%
4,748,526
3,455,512
15.4
11.2
3,555,257
1,945,807
15.7
8.6
3,114,809
1,671,117
1,693,537
10.1
5.4
5.5
2,747,737
1,591,540
1,274,994
12.1
7.0
5.6
$30,843,766
Di\ idends
Paid
per share
$16,160,265
lOO.O$&
$22,695,687
100.0%
Employee Benefit Plans
Insurance, retirement and vacation benefits
are provided for all employees of the Company under the following
plans:
Group Insurance
Plan
This plan, in eflect since February
1,
1937, provides
life insurance
and sickness, accident, hospitalization
and surgical benefits
to all employees
after
three months of service. Dependents of
employees
also are covered
for hospitalization and surgical benefits. During
1950 benefits were paid to employees
and their dependents
in an aggregate
amount
of $74,706.00.
Life insurance
at the end of the year amounted
to
$8,225,319.00 or an average of $8,713.00
on each employee covered.
Pension
Plan
This plan, in effect since April 1, 1939,
provides
a monthly
retirement
income
beginning at age 65 to each participating
employee.
All employees
are eligible to
participate
after two years of service.
The retirement
benefit is based on age
at entry into the plan, length of service
and total earnings
up to the date of
retirement.
?‘acat ion Plan
This plan, in effect since 1940, applies
uniformly
to all employees.
Annual
vacations with pay are allowed all employees on the basis of one week after
one year of service, two weeks after two
years of service and three weeks after
fifteen years of service.
Effective
September
1, 1950, the Group
Insurance Plan was amended for the third
time to allow increased benefits to employees and their dependents
covering
hospital
and surgical
expenses.
The Pension
Plan
was also liberalized as of that date to provide for a substantial increase in retirement
benefits.
EARNINGS
EMPLOYEES
1079
1084
1031
1946
1008
FIVE-YEAR
$2946
$3354
$3022
$3720
1946
1948
A
1180
RECORD
A
FIVE-YEAR
RECORD
$3921
These
expenditures
were
$3,378,000.00
larger than the amount
provided
out of
income for depreciation
and depletion.
The gross expenditures
during
1950 for
additions
to the property
account
totaled
$6,492,000.00
and are summarized
below:
The 1950 outlay for property,
plant and
equipment represented an additional investment of $5,503.00 per employee.
Wells and pipe lines-------------$3,935,000.00
Land, leaseholds
and mineral
interests---------------------285,000.00
Additions
to plants-------------1,876,OOO.OO
Sundry buildings,
equipment,
etc.
397,ooo.oo
Total -------------------------$6,493,000.00
Summary
of Changes
table
The
following
changes during 1950 in
count of your Company:
-~
in Property
Account
during
Land, leaseholds and mineral interests-----------_----Wells and pipe lines-- _______ ---- ________ -- _________ -Plants, buildings
and equipment---------------------Totals-----_-_------------------------------------Reserve
for depreciation,
depletion
and amortization---
Net_------__--------------------------------------
The gross amount of property,
plant
investment
of $46,685.00 per employee.
summarizes
the property
1950
Bahace
Dec. 31,195O
Baltrncc
Jan. 1,195O
ddditio~l.9
$ 3,333,007
24,122,160
24,349,355
$ 285,277
3,935,125
2,272,476
$ 156,934
2,719,925
331,732
$ 3,461,350
25,337,360
26,290,099
$51,804,522
!$6,492,8i8
$3,208,591
!$55,088,809
33,752,885
3,114,809
607,347
36,260,347
$3,378,069
$2,601,244
$18,828,462
$18,051,63i
and equipment
Retirements
at the end of 1950 represented
1950
MllLlOblS
OF DOLLARS
6
CAPITAL
0
EXPENDITURES
DEPRECIATION
AND
DEPLETION
the
ac-
an
CARBON
BLACK
Both production
and sales of carbon black
were substantially higher than in 1949. Production totaled 233 million pourlds and the
sales were 268 million pounds. Inventories
were materially reduced.
The demand
for furnace
blacks of all
types increased greatly with the acceleration
of the synthetic rubber program. Substantial
amounts of furnace blacks made from gas
are required for the manufacture
of tires,
mechanical
automobile
equipment
and
goods. To meet the needs of the rubber
industry for this type of black we started
the construction
last year of a gas furnace
plant in Wheeler County, Texas. A portion
of the manufacturing
facilities of our Ryus,
Kansas plants is being utilized in the construction of the new plant.
Analyzing
gas used for
black manufacture.
carbon
DIVISION
The rubber industry also heightened
its
demands last year for furnace blacks made
from oil. These blacks are essential to synthetic rubber because of their high degree
of reinforcement
and wear performance.
Since synthetic
rubber
consumption
has
been mounting
steadily due to the scarcity
and high price of crude rubber, there has
been a marked shift from channel black to
furnace black made from oil. As more synthetic rubber becomes
available from
the
reactivated government-owned
plants, there
will be a substantially
greater
need for
oil-base blacks. These blacks are necessary
ingredients
in the compounding
of rubber
for bogie wheels and military
tank tire
treads. We increased
our oil-base
black
production
substantially
by expanding
the
Studying
the working
ink containing
properties
of printing
carbon black.
Aransas Pass, Texas furnace
plant which
was built in 1949. A further expansion
of
this plant is in progress.
In December we concluded
an agreement
with Phillips Petroleum Company for crosslicensing of patents relating to the manufacture
of furnace
black
from
oil and
exchange of research between the two companies as well as with other companies
similarly licensed by Phillips. The construction of an additional furnace plant for the
manufacture
of oil-base
carbon
blacks is
under way and completion
during the latter
part of 1951 is anticipated.
Basic advances
were scored during the
year by the Company in the technology
of
the manufacture
and applications
of carbon
blacks. The concerted efforts of its research,
engineering
and technical divisions resulted
in improved
plant design, the selection of
more suitable petroleum
fractions
for the
manufacture
of oil-base blacks, better operating efficiency and higher quality products.
The broad expansion
of development
and
research during 1950 involved expenditures
of substantial amounts.
The role of carbon black in the national
security program
will be vital. Your Company is committed
to devote its plant facilities, engineering and research experience in
full support of this program.
Our ink business is conducted
through our
subsidiary, Charles Eneu Johnson Co., Inc.,
which we acquired late in December
1949.
This is the oldest established manufacturer
of printing inks in the country, having been
in existence since 1804.
The Johnson Company
maintains its administrative
otlices and principal manufacturing facilities
in Philadelphia.
Branches
are located
in Atlanta,
Boston,
Chicago,
Cleveland, Dallas, Detroit, Kansas City, New
York, Pittsburgh and St. Louis. Each branch
is equipped to formulate and produce printing inks used in its territory. News ink is
manufactured
in the Philadelphia
plant and
in Kansas City and distributed
from these
two points.
The larger
newspapers
are
served with high speed news ink deliveries
in tank trucks. Smaller papers receive their
ink in drums.
In the period following
the last war a new
letterpress ink was developed by Johnson’s
research department.
This ink is produced
in black and colors and process colors. It
has certain very desirable properties. It dries
very quickly, yet will stay open on the press
for a reasonable length of time. It produces
an excellent finish without the necessity of
another run with over-print
varnish. This
line of inks goes under the trade name of
“Speed King” and has been received very
favorably
by the printing trade.
The year 1950 showed a marked increase
in the sale of printing inks. The larger sales
in the “Speed King” line of letterpress inks
and of certain dry colors contributed
materially to this increase.
The Company
has new ink manufacturing facilities under construction
in Chicago.
The new plant, which is of modern
onestory design and contains
approximately
15,000 square feet of space, is expected to
be ready for operation this spring.
GAS AND OIL PROPERTIES
OF UN1
----. ~--“. ITED CARBON COMPANY
UJzLEIMI5CK 31. 19.50
ACREAGE
‘:_
NEW tiEIIC0
ARKANSAS
80
,-:
-.
-
.,
.. 109
32
”
” “ ‘.’
‘(
32
:
:
WELLS
OR“’
Our sales of natural gas to pipe line companies and others established
an all-time
high in 1950. The gas deliveries reached a
total of 671/2 billion cubic feet for the year,
an average of 185 million cubic feet per day.
This represented an increase of about 17%
over the previous year which was nearly the
same as the increase in dollar sales.
The sales of crude oil during 1950 totaled
925,000 barrels, an average of about 2,500
barrels per day. This was more than 21/2
times the amount of oil sold in 1949. The
new production
in the Elk City Field of
Oklahoma
accounted
for this increase.
We acquired during the year 3f2 additional oil and gas leases totaling
57,762
acres. Leases in the aggregate
of 81,501
acres were terminated
by expiration,
surrender or assignment.
Additional
mineral
royalty interests were also acquired.
We added seventy-eight
producing
wells
to our holdings in 1950. Fifteen unproductive exploratory
wells were drilled during
the year. Twenty additional
wells were in
the process of drilling at the end of the year.
The location of these wells is shown hereunder by states:
iTem;
wells
West Virginia -__---------__Virginia--------------------Kentucky--------------____ Louisiana __---____---_-----Texas----------------------Kansas---------------------Oklahoma ----_-----_----___Total-------------------_
21
3
-
Wells
drilling
9
6
6
27
6
4
11
5
78
20
The development
in West Virginia
was
centered on the Company’s
large holdings
c
Cable
tool drilling
in southern
West
Virginia
Rotary
drilling
in
Oklahoma
of leasehold acreage in Wyoming
and Logan
counties in the southern part of the state.
The new wells in Kentucky,
Louisiana,
Texas and Kansas added substantially
to
the gas supply available for the pipe line
markets in these states. In Louisiana,
we
also participated
with others in the drilling
and completion
of two deep gas distillate
wells in the Ruston area of Lincoln Parish.
A third joint well drilled in this area was
unproductive.
Since we started the exploration
of our
large Virginia acreage about 3$$ years ago,
we have drilled a total of twenty wells of
which nine are commercial
gas wells. We
have approximately
150,000 acres under
lease in that area, and the testing and development are progressing rapidly. Six wells
were drilling at the end of the year.
In southwestern
Kansas, your Company
and others have jointly drilled three wells
on a large wildcat block. Shows of oil were
encountered in two of these wells which will
justify further exploration
of that acreage.
Additional tests will soon be commenced.
Our most extensive
and costly drilling
operations
have been in connection
with
the development
of the Elk City Field of
Oklahoma
and the exploration
of adjacent
The Management of your Company
tine spirit of cooperation
and good
territory.
During
1950 we completed
ten
oil wells and one dry hole in this field. On
a farm-out of adjoining acreage one oil well
was completed in which we own a one-half
interest. At the end of the year we had
twelve producing
oil wells in the Elk City
Field and owned a one-half interest in three
additional producers. We also started a well
in the Elk City Field as a joint venture with
others, to explore for possible deeper production. This test is scheduled for drilling
to about 13,500 feet. The present production
is coming from the Hoxbar zone at about
10,000 feet. On a 32,000-acre
block north
of Elk City we were participating
with other
operators
in the drilling of a test well to
about 12,500 feet.
A great portion of the Elk City Field has
been unitized for joint operation with Shell
Oil Company as operator. A number of our
wells are included in this Unit and others
will be added. A large gasoline and recycling
plant was built by the owners of the unitized
area, and our portion of the cost of this
plant is reflected in the capital expenditures
for the year. It is anticipated
that substantial benefits will accrue to the Company and
to the royalty owners from this unitization.
again wishes
will.
to express
its sincere
Respectfully
for
your
submitted,
OSCAR
Charleston, \Vest Virginia
February 26, 1951
gratitude
NELSON,
President.
COnsOLIDATED
UNITED
CARBON
BALANCE
COMPANY
December
AND
SHEET
SUBSIDIARY
31, 1950, and December
COMPANIES
31, 1949
ASSETS
1950
CURRENTASSETS
Cash-------------_-------------------------------U. S. Treasury
Accounts
Inventories
Finished
INVESTMENTS
Stocks
at lower
2,000,000.00
2,000,000.00
3,241,782.65
1,921,490.63
1,265,389.44
2,135,504.46
of cost or market:
goods-----------_------------------.---.--
CURRENT
1,701,369.74
____ -__
ASSETS----------------w---w------
AND OTHER
and sundry
Sundry
$ 3,378,421.23
______
IMaterial and supplies---------------------TOTAL
$ 3,685,370.08
Bonds-------------------------------
receivable---------------------------
1949
~~
1,399,346.56
$11,893,911.91
$10,834,762.88
$
$
ASSETS
investments----------------------
notes and accounts
TOTAL INVESTMENTS
receivable,
AND
OTHER
369,112.99
907,555.76
1,041,518.26
$ 1,295,103.50
$ 1,410,631.25
$55,088,809.28
$51,804,521.60
less reserve- _ _ - _
ASSETS-----------
387,547.74
FIXED ASSETS
Land,
buildings,
leaseholds,
Less:
Reserves
FIXED
TRADE
MARKS,
DEFERRED
Prepaid
ecmipment,
etc.-at
for
wells,
cost------
depreciation
pipe lines,
____ -- ____ - _______
36,260,347.25
and depletion---------
ASSETS-NET---------------------------
$18,828,462.03
-~
CONTRACTS,
$
ETC.------------------------
1.00
-
33,752,884.79
$18,051,636.81
$
1.00
CHARGES
taxes, rentals,
insurance
and expenses---------
$
381,651.50
$32,399,129.94
$
370,580.34
-____-~
$30,667,612.28
BA LA NCE
C 0 N S 0L I D A T E D
UNITED
C~iRMJX
COJIPANY
AND SUBSIDI,$RY
SHE
ET
CO3IP~iXIES
LIABILITIES
CURRENT
Accounts
Provision
payable
and accruals-----------------------
for income
$ 1,373,608.55
$ 1,608,502.73
2,019,200.95
1,420,716.72
56,670.78
28,881.56
taxes:
Federal-____----_____---------------------------State_---__------_-_----------------------------TOTAL
LONG
TERM
1949
1950
LIABILITIES
CURRENT
LIABILITIES--~------------------
$ 3,449,480.28
$ 3,058,lOl .Ol
DEBT
4% mortgage
company,
of acquired
subsidiary
1951-1956.----------------------------
~~
$
353,398.59
RESERVE
For
taxes and contingencies-------------------------
$ 1,500,000.00
$ 1,500,000.00
$11,952,537.52
$11,952,537.52
15,497,112.14
13,803,575.16
$27,449,649.66
$25,756,112.68
$32,399,129.94
$30,667,612.28
CAPITAL AND SURPLUS
Common
stock -
Authorized
OutstandingEarned
-
no par value
800,000
shares
795,770
shares---------------------
surplus-__---______------------------------TOTAL CAPITAL AND
SURPLUS--------------------
CONSOLIDATED
I’NITED
CARBON
COMPANY
For the years
NET
SUMMARY
ended
OF
OPERATIONS
AND SUBSIDIARY
31, 1950 and 1949
December
Carbon black -__- _______ - _______ - ____ -__- ____ -_--__
Natural gas_-----____-__--____-__--_-------------------Crude oil and mineral royalty income---------------Printing inks, etc.---------------------------------TOTAL NET
OF
SALES------------------------------
$17,208,086.86
7,808,123.28
2,671,826.94
2,092,158.07
$13,782,579.14
6,643,109.98
1,129,806.32
-
$29,780,195.15
$21,555,495.44
18,611,073.52
14,982,264.78
$11,169,121.63
$ 6,573,230.66
SALES--------------------------------------MANUFACTURING
INCOME-----
SELLING, ADMINISTRATIVE,RESEARCH
GROSS OPERATING
DEDUCTIONS
FROM
_____ - _____________
AND GENERAL
INCOME-----------------------
1,545,298.05
2J4lJ24.43
EXPENSES
$ 9,027,997.20
$ 5,027,932.61
$
$
INCOME
Interest and discount ____ ----_-__------_--_--_______
Dry holes, leases, etc. - written off------------------_
Intangible drilling costs, oil wells--------------------Rentals on undeveloped
leases--------------_--------Employee benefit plans and social security taxes Employee
dwelling expense-net-------------------Other deductions-net--------_------------.--------
OTHER
1949
1950
SALES
COST
COMPANIES
net--
305,922.48
666,529.13
1,834,997.94
381,422.13
325,539.65
117,591.33
142,202.40
16 1-,709.17
497,417.59
45,203.88
389,416.04
263,012.ll
180,929.52
191,679.77
$ 3,777,205.06
$ 1,732,368.08
$
154,128.74
11,305.oo
92,428.10
$
222,889.41
2,256.OO
249,824.20
$
257,861.84
$
474,969.61
INCOME
Interest and discount earned------------------------Dividendsreceived-__------------------------------Profit on sale of capital assets--------------_-------
NET DEDUCTIONS
INCOME
FROM
INCOME------------------
BEFORE FEDERAL AND STATE INCOME
TAXES--
Provision for Federal and State income taxes, including
adjustments
of $78,488.07 in 1950 for prior years-NET INCOME----------------------------------
Depreciation
and depletion included in the above costs
and expenses amounted
to-----______ -- ______ --
$ 3,519,343.22
$ 1,257,398.47
$ 5,508,653.98
$ 3,770,534.14
2,144,000.00
90 ~,000.00
$ 3,364,653.98
$ 2,866,534.14
$ 3,114,809.28
$ 2,747,737.21
1950
at beginning
BALANCE,
of year --_-------__-----__-___
-
1949
$13,803,57X16
$11,622,740.16
$ 3,36 1,653.98
$ 2,866,534.&l
ADDITIONS
Net income
for the year---
_____ ---__---
______ --___-
Adjustment
in connection
with taxes, etc., for
years-net-__-_____--_____--___--_____-_-__-_
prior
236,685.67
-
Profit on sale of Mississippi River Fuel Corporation
capital stock, less provision for Federal
income tax-----------------------------------Transfer
from
TOTAL
reserve
for taxes and contingencies-
1,152,301.08
682,270.64
-----
ADDITIONS.--------------------v-----v-w-
$ 3,364,653.98
$ 4,937,791.53
$ 1,671,117.00
$ 1,591,540.00
DEDUCTIONS
Dividends
paid----
____ ------__--___--_-
____ --_-
____
Adjustment
relating to investment in subsidiary
company at date of acquisition-----------------TOTAL
BALANCE,
DEDUCTIONS-- ____ --------_--___---
at end of the year---------------------------
______
1,165,416.53
$ 1,671,117.00
$ 2,756,956.53
$15,497,112.14
$13,803,575.16
To the President
United Carbon
Charleston,
and Board
Company
West Virginia
VVe have examined
Company
of Directors
the consolidated
and its subsidiary
related
consolidated
surplus
for
companies
summary
the year then ended.
ance with generally
accepted
as we considered
necessary
In our opinion,
fairly
its subsidiary
operations
cepted
for
accounting
the preceding
records
standards
was made
then
ended,
applied
of United
auditing
procedures
financial
statements
Carbon
in conformity
on a basis
with
consistent
Company
of their
generally
with
and
ac-
that of
year.
W.
Certified
February
included
31, 1950, and the results
F.
100 Broadway,
earned
in accord-
and accordingly
consolidated
position
at December
principles
31, 1950, and the
consolidated
and such other
Carbon
in the circumstances.
the consolidated
the year
and
Our examination
the accompanying
companies
sheet of United
as of December
operations
auditing
such tests of the accounting
present
of
balance
New York,
6, 1951.
N. Y.
LAFRENTZ
Public
&
CO.
Accountants
PRINCIPAL
SUBSIDIARIES
Kosmos Carbon Company
Eastern Carbon Black Company
Combined Carbon Company
Texas Carbon Industries,
Inc.
United Producing
Company, Inc.
United Carbon Company,
Inc. (Maryland
Mer Rouge Gas Company, Inc.
United Gas Company (of West Virginia)
Charles Eneu Johnson Company, Inc.
OPERATING
SALES
EXECUTIVE
3
United
DISTRICT
DIVISIONS
DOMESTIC
West
Virginia
CARI~ON BLACK
Borger, Texas
Corpus Christi, Texas
Monroe, Louisiana
NATURAL
GAS
AND
Ryus, Kansas
New Mexico
OIL
Pineville, West Virginia
Pikeville, Kentucky
Grundy, Virginia
Monroe, Louisiana
PRINTING
Eunice,
Corpus Christi, Texas
Satanta, Kansas
Sayre, Oklahoma
Cisne, Illinois
INK
Philadelphia,
Pennsylvania:
Charles Eneu Johnson
Natural
Printing
Company,
Gas
Ink
ORGANIZATION
OFFICES
Carbon
SALES
Building--Charleston,
West Virginia
OFFICES
2612 Empire State Building-------------New
York
308 Akron Savings & Loan Building--------Akron
1620 Field Building ________ - ____ ----_-----Chicago
302 United Building---------------------.--Boston
EXECUTIVE
Charleston,
PRODUCTS
Carbon Black
Crude Oil
Inc.
REPRESENTATIVES
General Supply & Chemical Co .____ -- _____ Trenton
Frank H. Topp ____________ - ____ --- ____ -Louisville
Thompson-Hayward
Chemical
Co.
------Kansas
City and St. Louis
----_--____---L. H. Butcher Company
San Francisco
and Los Angeles
--------__-----R. W. Greeff & Co., Inc.----------------New
York
FOREIGN
REPRESENTATIVES
Carbon Black Export, Inc.--------------New
York
Chance & Hunt (Imperial
Chemical
Industries,
England
Ltd.) _________ - ____ ---- ____ ---London,
Anchor Chemical Co., Ltd.----Manchester,
England
Canadian Industries
Limited
Montreal
and Toronto,
Canada
-----_--___----Ernest0 de1 Valle---_____ - -__ ____ ----Mexico
City
Colores, S. de R. L.----____ -- _____ ---Mexico
City
‘OF
COMPANY
SINCE
FORMATION
1950
1949
1948
1947
1946
165,681,115
138,133,781
158,837,498
179,972,462
176,228,328
67,502,785
57,830,664
56,662,120
47,962,695
46,682,700
$7,808,123
6,643,110
7,085,033
5,507,951
4,985,055
1945
1944
1943
1942
1941
164,635,718
141,373,317
134,820,577
142,427,596
153,448,021
41,117,775
45,760,846
52,643,239
51,049,686
51,672,244
3,997,676
4,428,226
5,303,917
5,216,691
4,697,741
1940
1939
1938
1937
1936
143,483,130
142,716,618
133,265,316
148,007,220
139,940,562
44,462,219
42,663,404
40,640,782
43,350,521
39,269,195
3,945,350
3,705,966
3,410,587
3,363,338
2,713,799
880
815
774
721
686
1935
1934
1933
1932
1931
123,151,762
94,729,666
74,554,987
60,267,973
61,732,062
38,747,607
32,427,724
27,584,786
22,649,996
18,208,399
2,653,675
2,167,296
1,738,445
1,315,638
1,041,904
473
432
398
1930
1929
1928
1927
1926
1925
89,062,200
87,908,321
60,330,544
39,740,352
34,241,278
33,265,OOO
17,825,149
11,918,381
11,102,415
9,815,821
2,136,285
1,787,OOO
1,044,830
745,986
644,874
544,074
140,734
61,509
370
306
242
214
204
174
1950
1949
1948
1947
1946
233,151,044
175,852,008
219,350,376
275,455,334
294,942,521
268,035,590
210,234,490
253,997,881
284,676,391
317,616,198
$17,208,087
13,782,579
17,385,403
17,260,015
16,572,480
1945
1944
1943
1942
1941
244,719,894
189,499,233
132,574,758
13 1,098,839
141,564,443
233,512,742
228,720,742
147,601,882
96,041,578
156,196,110
9,980,056
8,504,120
5,277,033
3,489,603
5,219,999
1,484,335
1940
1939
1938
1937
1936
133,531,325
134,698,933
126,965,900
132,722,321
121,673,894
137,942,125
155,250,304
114,641,215
128,153,382
141,271,149
4,288,122
4,598,836
3,420,878
5,581,664
6,136,127
249,884
270,506
291,035
327,229
168,722
1935
1934
1933
1932
1931
102,277,340
73,644,166
53,974,790
44,529,430
52,190,948
123,344,909
74,475,669
103,449,667
63,420,478
58,104,812
5,410,851
3,400,266
2,939,224
2,033,355
2,122,893
70,620
66,509
65,071
1930
1929
1928
1927
1926
1925
89,604,810
94,213,894
60,525,530
33,684,525
34,797,918
34,074,679
54,767,526
53,674,073
70,339,375
44,080,455
33,459,427
34,068,007
2,358,194
3,430,017
4,708,110
3,132,963
2,740,549
2,281,605
138,116
145,729
63,102
165,724
334,871
375,756