CENTRIFUGAL PIPE CORPORATION: RECAPITALIZATION; ACCOUNTING FOR PATENTS.
The recent history of the Centrifugal Pipe Corp. includes some interesting points in connection with accounting for patents as wasting assets, as well as the effect of the present war in curtailing the scope of the operations of some American companies. The Centrifugal Pipe Corp. is a Delaware corporation, organized in 1923 for the purpose of holding and licensing certain patented processes for casting iron pipe by a centrifugal process. The Centrifugal Pipe Corp. holds the United States patents, while a wholly owned Canadian subsidiary, International De Lavaud Manufacturing Corporation Limited owns the patents for most of the rest of the world. The stockholders on December 20, 1939, approved the two structural changes in capital stock, and the writing down of investments and the declaration of a partially liquidating dividend followed this action. The nature of patents as wasting assets, and the similarity of experience of the Centrifugal Pipe Corp. to a mining company which does not replace its property as it is exploited, is quite evident. This parallel extends to the distribution of liquidating dividends and the gradual contraction of the scope of operations as the stage of exhaustion is approached.
- DOI
- 10.2308/tar-7049696
- Volume
- 15 (4)
- Pages
- 499-504
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref