252 



THE INDIA RUBBER WORLD 



[May I, 1906. 



so, and the answers were also put in writing, by Mr. 

 Charles MacVeagh, of the company's counsel. 



In response to inquiries as to what advances had been 

 made by the company since the annual meeting in 1905 to 

 the United States Rubber Co. or its subsidiary companies, 

 the answer was ' ' None. ' ' 



Iij answer to questions regarding the issue of additional 

 preferred stock during the year, it was stated that Si.oco,- 

 000 had been issued for an equal amount of the capital of 

 the Oeneral Rubber Co., organized for buying crude 

 rubber, and the shares of which are owned jointly by the 

 United States and Rubber Goods companies. Another 

 issue, of $1,300,000, was for the acquisition of a like amount 

 of stock of the Morgan & Wright Co. of Michigan, the pro- 

 ceeds being devoted to the purpose of building that com- 

 pany's new plant at Detroit. The amount of the Rubber 

 Goods companj-'s preferred stock outstanding is thus 

 $2,300,000 larger than one year ago. 



Other questions by Mr. Hecksher related to statements re- 

 garding the condition of the Rubber Goods company, by the 

 management of the United States Rubber Co., prior to the 

 ac(iuisition of the former bv' the latter, which statements ap- 

 peared to Mr. Hecksher as not in harmony with the reports 

 published by the Rubber Goods companj'. Mr. MacVeagh's 

 answer goes into the matter of the actual and estimated earn- 

 ings of the Rubber Goods companj'. The chief point relates 

 to the assurance that the Rubber Goods company-, operated 

 in connection with the United States company, would earn 

 probably more than — 



The sum of $1,850,000 which after reasonable and proper deduc- 

 tions has been averaged b}' the Rubber Goods Manufactiuing Co. 

 for the last two years. 



The compan3''s answer reads, in part : 



The earnings of the allied companies of the Rubber 

 Goods Manufacturing Co. for the years 1903 and 1904, 



as shown by the annual reports, were 14,035,417.58 



Of these earnings the amount belonging to stock- 

 holders of the allied companies other than the Rub- 

 ber Goods Manufacturing Co. was §5.452 31 



So that the earnings of the Rubber Goods company 



for the two 3ears were |3, 949. 9''5-3i 



Or an average perj'earof 1,974,982.6314 



In the annual reports for these years certain sums 

 were shown as having been charged off for mainte- 

 nance and repairs ; In 1903 S 209,644. 73 



And in 1904 178,331.50 



A total of f 387,976.23 



Even after deducting these entire amounts from the earnings 

 of the Rubber Goods company for these two years, we find the 

 average amount of earnings to be 81,780,994.52. The difierence 

 between this average and the amount quoted in the question is 

 less than $70,000. 



AN ECHO OF "INTERNATIONAL RUBBER.' 



^ I ^HE New York Times (April 8), in a story of the career of 

 -*- one Alfred R. Goslin, whom it describes as " the mas- 

 ter thief of Wall street, ' ' includes a mention of the ' ' Interna- 

 tional Wheel, Tire and Rubber Manufacturing Co." fraud, 

 some of the history of which has appeared in The Indi.-^ 

 Rubber World. It appears that one Bernard Uhren, an 

 agent of Goslin, engaged in doing an apparently regular 



brokerage business, was able to arrange with a New York 

 bank to receive stocks offered to Uhren 's firm and to certify 

 checks given in payment, holding the stocks as securitj-. 

 The first stocks offered were high class and the checks ceiti- 

 fied by the bank were made good. 



Then one day up came a block of $23,750 International Rubber 

 stock, with the usual request that it be received for Bernard 

 Uhren & Co. It was so received, and the bank paid the gentle- 

 man who brought it up from where Goslin's brokers were washing 

 it around on the curb the $23,750 called for. Uhren & Co. refused 

 to make good, and the bank was "stuck" with the International 

 Rubber, discovering then, to its sorrow, that the company was a 

 Goslin concern and operated for the purpose to which it had been 

 so effectively put in this case. 



Of course the bank threatened suit and exposure. In turn 

 Goslin suggested an action to determine how far the bank had 

 violated the Federal regulations against overcertification. The 

 bank decided it wouldn't sue Goslin or Uhren & Co., and, so far as 

 people have ever heard, it still holds its block of International 

 Rubber slock. 



The so called rubber company' secured an option on an 

 unused factory at New Brunswick, New Jersey, but never 

 did any work there. The promoters, however, are believed 

 to have sold a large number of shares throughout the com- 

 pany. 



RUBBER STAMP SIGNATURES 



' I ''HE New Yor'k Journal 0/ Commerce prinis the following 

 -*- question and answer : 



In giving a receipt for money paid on account is it legal to use 

 a rubber stamp of the firm's name, or is a signature in ink re- 

 quired ? Banks itivariably use rubber stamps only on promissory 

 notes paid at their windows. C. 



A signature made with a rubber stamp is as binding and 

 valid for most purposes as a signature made in any other 

 way. The objection to it lies in the difficult}- of proof. If 

 A B signs his name in writing witnesses can usually be 

 found who are acquainted with his signature, made in this 

 way, and who can establish the fact that he made it. If tt e 

 signature is made with a stamp, which might be equally- 

 well handled by anyone, it is, of course, more difficult to 

 prove that A B was handling it on this occasion ; but if 

 that fact can be established A B is bound. A creditor is not 

 bound, in this State, to give any receipt for money paid, 

 and if he offers even a receipt signed with a rubber stamp it 

 is just so much more than he could be compelled by law to 

 do. In the case of a promissory note possession of the note 

 by the debtor (and he has a right to demand that) is suffi- 

 cient proof of payment unless the creditor can prove affirma- 

 tiveU' that the debtor got possession of the note without 

 paying it. 



A RUBBER TIGER YARN FROM INDIA. 



[from the " STRAITS TIMES," SINGAPORE.] 



OX one of the Perak rubber estates run by a canny Scot 

 they have been rather short of labor, and as tapping 

 is in full swing have been hard pressed. The other day the 

 manager hit on a brilliant idea, and had the trunks of all 

 the trees rubbed with valerian. Now the tigers come and 

 scratch and tap the bark in the most approved herringbone 

 pattern, so that all the few remaining coolies have to do is 

 to walk round once a day and collect the rubber. 



