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 concur- rently herewith, at which time proxies will be solicited by the management.

TO THE STOCKHOLDERS OF

THE DOW CHEMICAL COMPANY:

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 Eu- rope and a large increase in the tempo of the war against Japan during the fiscal year just ended. In this mighty effort it has been the high privilege of your 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 his- tory 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 com- pared 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 deduct- ing 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 com- pany were sufficent to permit the payment of equivalent dividends this year but a greater portion of its earnings was retained for expansion.

EMPLOYMENT-

The 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 Com- pany 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 pro- duction of strategic chemicals.

LABOR RELATIONS-

It is with a deep sense of pride that we are again able to report the com- pletion of another year in which, since the beginning of the war, the operations

of the Company have not suffered from a single interruption due to labor dis- agreements. The Company has been fortunate in its labor relations primarily because management on one hand and the representatives of labor on the other have endeavored to make prompt settlement of labor problems, through grievance procedure, a matter of first importance. This willingness to cooperate on the part of both parties concerned is, in our opinion, the only sound basis for successful 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 overall picture as those discussed in some detail. The outstanding and most sig- 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 man- ufacturers. 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 are the concealed assembly lines of molecular activity. The highest quality products 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.

MAGNESIUM-

Magnesium 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. In September, 1944, the Marysville-Ludington opera- tion was discontinued, and the plants have since been maintained in standby con- dition. 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 mag- nesium 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 ef- forts toward developing new fields of application. There is a high current inter- est among manufacturers in new materials, and particularly in magnesium.

In March, 1945, your president appeared before the Small Business Commit- tee 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.

The Company is continue essa ry.

to meet every Some facilities

still occupied with a large amount of war work and will possible demand of the armed forces as long as it is nec- are available at times, however, and other fabricators are

beginning to have opportunity to do civilian work. For this reason, every effort is being made to enlarge established prewar uses of the metal and to develop new applications.

The continuous years of metallurgical research and production engineering development have resulted in the ability of the Company not only to furnish tre- mendous amounts of pure magnesium ingot, but also to produce alloy ingot, castings, wrought products and fabricated assemblies efficiently on a large scale. The de- velopment of reverberatory melting, pumping, and direct chill casting methods have revolutionized alloy ingot and billet production. The new Dow direct reading spec- trometer 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 cor- rosion 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 na- ture, on methods of improving practical operation of foundry, wrought product and fabrication production departments, on design and engineering of structural ap- plications 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 ago the figure was 15 per cent, and twenty years ago, 25 per cent. This is ac- 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.

PLASTICS-

During 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 criti- cal 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 in- crease in production has been realized, and careful studies are constantly being made to determine postwar requirements for our four major plastics-Styron, Etho- ccl, 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 appli- cations for Ethocel which should be sufficient to absorb our entire production after the war. Currently, Ethocel is being used in military weapons.

Our plastic, Saran, continues to be used chiefly by the Armed Forces for in- sect 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 wholly-owned subsidiary. The Court’s ruling of March 5th of this year merely 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 of Dowell’s activities. During more than twelve years of technical service, in- dustrial acidizing has become an important contribution to industry, along with plastic plugging of oil wells. Other useful developments wi I I undoubtedly come about in the future. Dowell Incorporated is a steadily growing asset to The Dow Chemical Company.

AGRICULTURAL CHEMICALS-

In the past few decades the evolution of scientific agriculture has been proceeding at an accelerated pace. Progress has been speeded because of the work of federal, state, and independent research groups, the mass production of agricul- tural 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 produc- tion 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, par- ticularly fine seeds such as those of the sugar beet, to facilitate mechanical culti- vation is another gift of science, the potentialities of which have as yet hardly been tapped. Dow is fortunate in having been able to play a major part in this 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 com- pound which already shows promise of a number of interesting uses. As a selective weed killer, it kills by stimulating overgrowth, attacking broad-leafed plants with- out damaging other types, and shows great promise for controlling weeds by chem- ical 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 is America’s largest industry and we are proud of our ever- growing bond with it.

CONCLUSION-

As 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 in- tegral part of the economic fabric of our nation. There is scarcely a single

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

important chemistry

Less than four years ago the American people were given a lesson which they should never forget. It is simply that to the extent that any nation lacks self- sufficiency in basic raw and industrial materials, to the same extent is she vulner- able to attack in time ‘of war.

Rubber, of course, is the outstanding example of this principle. Our depend- ence 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 entirely new industry- the synthetic rubber industry-saved this country from a military 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 his- tory. 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 num- ber 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 independ- ence we have gained, for only in this way can we do our part most efficiently 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 open- ing 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 eco- nomic 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, Michigan

July 30, 1945

HASKINS & SELLS

CERTIFIED PUBLIC ACCOUNTANTS THE NATIONAL BANK BUILDING

DETROIT

ACCOUNTANTS CERTIFICATE

The Dow Chemical Company:

We have examined the consolidated balance sheet of The Dow Chem-

ical Company and its subsidiary companies as of May 31, 1945 and the

related statements of consolidated income and surplus for the year ended

that date, have reviewed the accounting procedures of the companies, and

have examined their accounting records and other evidence in support of

such financial statements. Our examination was made in accordance with

generally accepted auditing standards applicable in the circumstances and

included all auditing procedures we considered necessary, which procedures

were applied by tests to the extent we deemed appropriate in view of the

systems of internal control; it was not practicable to confirm receivables

from United States Government departments and agencies but we have

satisfied ourselves with respect to such receivables by means of other audit-

ing procedures.

In our opinion, the accompanying consolidated balance sheet and state-

ments of consolidated income and surplus fairly present the financial con-

di tion of the companies at May 3 1, 1945 and the results of their operations

for the year ended that date, in conformity with generally accepted account-

ing principles and practices applied on a basis consistent with that of the

preceding year.

HASKINS 0 SELLS

July 24, 1945.

THE DOW CHEM ( Incorporated

AND SUBSIDIA -

CONSOLIDATED BALANCE SHEET,

ASSETS

CURRENT ASSETS:

Cash ~~-__-___--~---_~__--~---~~-~-~~-~--~-~~-~-~~~

United States Government Securities (including Treasury tax notes, 1945, $1 1,560,OOO.OO; 1944, $8,680,000.00) - at cost

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

Total -_--_---_----_--_-_--~~~--~~--~~~-~~ Less reserves for doubtful receivables _ _ - - - __ - - _ _ __ - _ _ - - _

Net receivables _-___---___- ____ - ____ -

Billed and unbilled receivables from United States Government and its agencies (other than for sale of product) --_---__----_

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-

panies (less than equity in net assets OS shown by balance 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) : Plant properties and equipment- at cost (less reserves for depre-

ciation and amortization, 1945, $57,736,794.15; 1944, $45,174,593.72) ___________ ---__---_-_-_--_----___

Housing properties- at cost (less reserves for depreciation and amortization, 1945, $552,933.96; 1944, $416,786.13) ____

Total property --_---___---_-___

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 __-_-_---_--___---

May 31 1945 1944

$ 17,505,643.48 $ 14,1x18.42

$ 22,885,OOO.OO $ 16,884,153.36

$ 1 1,537,408.91 $ 1 1,650,822.72 193,527.91 432,926.60 4 1,344.80 33,549.69

350,707.80 277 638.38 I- $ 12,122,989.42 $12,394,937.39

305,244.70 280,l 10.09

$ 1 I,81 7,744.72 $ 12,1 14,827.30

$ 272,105.12 $ 1,Ol 1,231.49

$ 9,4 15,374.86 $ 9,101,841.98 6,8 14,096.49 7,540,610.55

$ 16,229,47 1.3 5 !$ 16,642,452.53

$ 68,709,964.67 $ 60,772,183.10

$ 5,688,OOO.OO $ 3,538,OOO.OO 2,597,03 1.2 1 1,563,646.14

304,292.44 605,234.19 658,664.1 1 593,8 12.55

$ 9,247,987.76 $ 6,300,692.88

$ 66,265.4 17.03 $ 70,826,904.63

1,374,553.95 1,302,973.03

$ 67,639,970.98 $ 72,129,877.6/6

$ 64,91 1.46 $ 72,37 1.29

$ 484,064.20 $ 34 1,204.49

$146,146,899.07 $139,6 16,329.42 -

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

CURRENT LIABILITIES:

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 __________

FUNDED DEBT (Board of Directors resolved on July 17, 1945 to redeem as of September 1, 1945 the debentures classified here- under) : 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 ____ -_- ____ ---

RESERVES FOR FIRE AND ACCIDENT LOSSES, DAMAGE CLAIMS, ELECTROLYTIC CELL REPLACEMENTS, AND SUNDRY _ _ _ _ _ _

MINORITY INTERESTS IN SUBSIDIARY COMPANIES __-_____--

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 capital stock _____ --__-----

SURPLUS : Capital surplus _________________-___________ ---__-_--- Earned surplus ______--_____________________ ---__-----

Total surplus ---___---_---- ____

May 31 1945 1944

$ 6,2=93.3 1 $ 5,3=2.84 17,304,690.07 14,059,968.47

750,000.00 750,000.00 1,240,398.50

926,805.20 1,23 1,994.42

1,280,932.89 1,326,847.99 63,039.69 65,985.63

144,06 1.70 166,630.64 107,600.l 1 127,33 1.97

$ 28,l 12,121.47 $ 23,057,22 1.96

$ 7,500,000.00 $ 7,500,000.00

3,750,000.00 4,500,000.00

$ 1 1,250,OOO.OO $ 12,000,000.00

$ 1,455,163.22 $ 1,808,29 1.08

!3 1,3 12,455.09 $ 1,270,426.12

$ 30,386,900.00 $ 30,386,900.00

37,293,908.83 37,293,908.83

$ 67,680,808.83 $ 67,680,808.83

$ 638,84 1.93 $ 638,84 1.93 35,697,508.53 33,160,739.50

$ 36,336,350.46 $ 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 COMPANY

AND SUBSIDIARY COMPANIES

STATEMENT OF CONSOLIDATED INCOME

FOR THE YEARS ENDED MAY 31,1945 AND 1944

SALES AND OTHER REVENUE:

Sales _-------_--_-_------_____________

Dividends received from associated company --_

Interest from associated companies --_-----__

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 deprecia-

tion and amortization) -----------------

Provision for depreciation -----------------

Provision for amortization of emergency facili- ties ________________________________

Selling and administrative expenses ---------

Interest and amortization of discount and ex- pense on debentures -------------------

Loss on disposal by dedication for public pur- poses 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 com- panies -_____________________________

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 -----___---_--_--__

Year Ended May 31

1945 1944

$124,570,200.83 $120,426,95 1.95

500,000.00 900,000.00

294,955.42 158,732.36

2,085,080.04 2,680,009.47

537,300.37 49 1.087.46

$127,987,536.66 $124,656,78 1.24

$ 82,03 1,153.29

5,332,014.66

8,353,549.70

6,840,949.68

265,6 18.84

$ 83,208,320.47

4,1 18,785.23

7,530,695.50

5,814,088.01

275,643.56

12,05 1.79 8 19,559.02

78,428.59 174,674.78

67,028.97 83,148.06

4,307,365.49 3,927,728.63

1 1,960,614.12 10,130,634.74

$1 19.248,775.13

$ 8,738,761.53

$1 16,083,278.00

$ 8,573,503.24

THE DOW CHEMICAL COMPANY

AND SUBSIDIARY COMPANIES

STATEMENT OF CONSOLIDATED SURPLUS

FOR THE YEARS ENDED MAY 31, 1945 AND 1944

CAPITAL SURPLUS

BALANCE AT BEGINNING OF THE YEAR _-_--

CREDIT-Excess of proceeds ( less expenses) re- ceived from sale of 249,504 shares of cumulative preferred capital stock, Series A, over $100.00 per share credited to the capital stock account

Total --- ______ --_--___------

CHARGE-Premium paid on retirement of 5,635 shares of 5% cumulative preferred capital stock

BALANCE AT END OF THE YEAR --____------

EARNED SURPLUS

BALANCE AT BEGINNING OF THE YEAR -----

CREDIT-Net income for the year ____________

Total __-- ____ -----___-_--___

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 ---_---_-___

$

Year Ended May 31 1945 1944

638,841.93 $ 36,539.0 1

630,477.92

$ 638,841.93 $ 667,0 16.93

28,175.OO

$ 638,841.93 $ 638,84 1.93

$ 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

$ 35,697,508.53

$ 28,99 1,490.17

8.573.503.24

$ 37,564,993.4 1

$ 3,746,1 18.00 174,984.20 483,151.71

$ 4,404,253.9 1

$ 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.

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THE DOW CHEMICAL COMPANY

E. 0. BARSTOW

E. W. BENNETT

J. S. CRIDER

Directors

L. I. DOAN

A. B. DOW

W. H. DOW

M. E. PUTNAM

C. J. STROSACKER W. R. VEAZEY

Officers

Chairman of the Board, President and General Manager - - - - W. H. DOW

Vice President and Treasurer - - E. W. BENNETT

Vice President and Secretary - - - L. I. DOAN

Vice President - - - - E. 0. BARSTOW

Vice President - - - - C. J. STROSACKER

Vice President - - - - M. E. PUTNAM

Assistant Treasurer - - ’ - - J. S. CRIDER

Assistant Treasurer and Assistant Secretary F. H. BROWN

Assistant Secretary - - - - A. P. BEUTEL

Assistant Secretary - - - L. A. CHICHESTER

Assistant Secretary - - - - R. L. CURTIS

Assistant Secretary - - - G. M. McGRANAHAN

Assistant Secretary - - D. J. LANDSBOROUGH

Auditor - - - - - C. PENHALIGEN

Transfer Agents Stock Registrars

Guaranty Trust Company of New York Common The New York Trust Company

The Notional City Bank of New York Preferred Guaranty Trust Company of New York

The Cleveland Trust Company Common and Preferred The National City Bank of Cleveland

THE DOW CHEMICAL COMPANY

Executive Office: Midland, Michigan

General Sales Office: Midland, Michigan

Boston 16, Massachusetts New York 20, New York

20 Providence Street 30 Rockefeller Plaza

Chicago 3, Illinois

135 So. LaSalle Street

Cleveland 13, Ohio

Terminal Tower

Detroit 2, Michigan

Fisher Building

Houston 2, Texas

2205 Commerce Building

Los Angeles 14, California

634 So. Spring Street

Soles Offices

Philadelphia 2, Pennsylvania

1400 S. Penn Square

San Francisco 4, California

310 Sansome Street

St. Louis 8, Missouri

3615 Olive Street

Seattle 1, Washington

1702 Textile Tower

Washington 5, D. C.

915 Shoreham Building

Factories Located

Midland, Michigan

Bay City, Michigan

at

Freeport, Texas

Pittsburg, California

Seal Beach, California

,THE DOW CHEMICAL COMPANY

Subsidiary Companies

Cliffs Dow Chemical Company Marquette, Michigan

Dow Chemical of Canada, Limited Sarnia, Ontario

Dow Magnesium Corporation Midland, Michigan

Midland Ammonia Company Midland, Michigan

Dowel I I ncorpora ted :

Executive Office

General Off ice

Midland, Michigan

Tulsa, Oklahoma

Dowell Incorporated Soles Off ices

Chicago 3

Salem

Wichita 2

Baton Rouge

Shreveport 23

Mt. Pleasant

Kansas City 8

St. Louis 8

New York 20

Cincinnati 2

Cleveland 13

Oklahoma City 2

Tulsa 3

Philadelphia 2

Borger

Fort Worth 2

Houston 2

Midland

Wichita Falls

Calgary

Illinois

Illinois

Kansas

Louisiana

Louisiana

Michigan

Missouri

Missouri

New York

Ohio

Ohio

Oklahoma

Oklahoma

Pennsylvania

Texas

Texas

Texas

Texas

Texas

Alberto, Canada

135 South LoSolle Street

P. 0. Box 292

519 Union Not’1 Bank Bldg.

P. 0. Box 1266

326 First Not’1 Bank Bldg.

P. 0. Box 152

220 B. M. A. Bldg.

3615 Olive Street

30 Rockefeller Plaza

521 Keith Bldg.

Terminal Tower Bldg.

1350 First Not’1 Bldg.

524 Kennedy Bldg.

1400 South Penn Square

P. 0. Box 1029

635 Ft. Worth Club Bldg.

21 15 Commerce Bldg.

P. 0. Box 1858

Waggoner Bldg.

907 Lancaster Bldg.

Associated Companies

Dow Corning Corporation Midland, Michigan

Ethyl-Dow Chemical Company Freeport, Texas

Wilmington, N. C.