[Letter from George Andre to Isaac Herbert Kempner, February 11, 1954] Page: 1 of 2
[1] p. ; 28 cm.View a full description of this letter.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
INTER-OFFICE LETTER
FOR MR. I. H. Kempner DATE 'February 11, 1954
SUBJECT ISCO. DECEMBER 1953 STATEMENT, EXPENSES GENERALLY.
2-49 2M 47815
WRITE ON BUT ONE SUBJECT TO BE USED BY ALL OFFICERS OR DEPARTMENT
ON THIS SHEET HEADS FOR INTER-OFFICE CORRESPONDENCE
The general inquiry as to the reason for the December increase in
practically all expenses, is best answered by stating that production
was off 17% for this month under the average rate per month established
in the 11 months prior period. Production in December was 373,300 bags
whereas the average for the eleven months to November 30 was 452,200
bags per month. Most expenses of a general nature, that is, those not
actually entering the finished product, are in the same category as
fixed changes in their effect on volume.
You specifically mention, among other expenses, the December cost
of filter media. In December, we cut in or had on hand for that purpose,
in excess of 600,000 pounds of new char to replace depreciated carbon
that was reducing the filtering capacity of the char house. Removed
from 'service was an equivalent amount of spent char, written down from
an average cost of about 12 cents per pound to 2'/M, the market on used
char. This write-down in Decemoer resOlted in an "apparent" adjustment
for the year. We might have delayed this replacement to early 1954 but
the uncertainty of our having taxable income at the end of this new year
affected the decision to replace in 1953.
Miscellaneous Labor in December was high because of the two paid
holidays in the month. In all departments except packing, we charge
such paid holidays directly to the department who employ the men. In
our packing department, the need for accurate data on the man hours
utilized in packing each package size has impelled us to dump such paid
holidays (of the packing crew) into Miscellaneous Labor. We are now
faced with the task of developing new accounts to reflect this now sub-
stantial fringe benefit in order to avoid distortion of the direct labor
charges.
The extraordinarily large amount charged to Legal and Professional
for December was for expensing a reserve in 1953 covering bonuses paid
on January 4, 1954. We note your remarks in another letter about handl-
ing your interest in this fund at the end of 1954 and optimistically hope
that we are then faced with the problem. .
This will conclude the series covering your letter of January 18,
except for any further details you may require in justification of the
several rate deviations in our December statement.
Respectfully yours,
GA:ms
cc-Mr. W. H. Louviere
iMir. R. M. Armstrong
Upcoming Pages
Here’s what’s next.
Search Inside
This letter can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Letter.
Andre, George L. [Letter from George Andre to Isaac Herbert Kempner, February 11, 1954], letter, February 11, 1954; (https://texashistory.unt.edu/ark:/67531/metapth1134472/m1/1/: accessed July 10, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Rosenberg Library.