June i, 1906.] 



THE INDIA RUBBER WORLD 



281 



THE UNITED STATES RUBBER CO.'S ANNUAL REPORT. 



T\U'. fourteenth annual meeting of the sharelioklers of 

 the United States Rubber Co. was held at 12 o'clock 

 M., on May 15. at the registered oflices of the com- 

 pany in New Jersey, at New Brunswick. The an- 

 nual reports of the president and treasurer were presented 

 and accepted, and directors elected for the ensuing year. 

 The proposed amendment to the by laws, quoted in the May 

 I issue of this Journal (page 267), was adopted. 'l"he official 

 reports are presented herewith in full : 



president's annual report. 



To THK Stockiioi.dkrs OK THK I'niticd St.\tks Rcbbkr Co. : 

 Your company has conlinued to prosper during the past year not- 

 withstanding weather con<litioiis have been generally unfavorable 

 to the rubber boot and shoe trade. 



Trk.-vsirKR'S RKi'ORT.^The treasurer's report hereto attached 

 gives the result in detail of the operations of the company and its 

 subsidiary companies (other tli.ui Rubber Goods) for the fiscal year 

 ending March 31. iqo6. 



Profits. — The net profits for the year are S3. 881,270.23 as against 

 $3,761,922 63 the previous year. l'"or comparison, however. $276,- 

 769 97, being the amount of dividends received upon the preferred 

 stock of the Rubber Goods Manufacturing Co. held by this com- 

 pany, should be deducted, leaving f 3,604, 5i».26 as the net earnings 

 of the United States Rubber Co. and its subsidiary companies 

 (exclusive of the Rubber Goods company). The surplus of the 

 company and subsidiary companies (exclusive of Rubber Goods 

 company) at the close of this year is S5, 022, 279.72, as against 

 113,987,101.49 last year. 



Volume ok Business. — The net sales of the company for the 

 year were §32,868,59400. as against $32,931,210.86 the previous 

 year — a slight falling off, due undoubtedly to the exceptional 



mildness and absence of snow that characterized the winter upon 

 the Atlantic seaboard. 



IvMPi.oYES' Profit-Sharing Plan. — The beneficial results of 

 the employes' profit-sharing plan instituted about two years ago 

 are emphasized more and more as time passes, and thus far there 

 has developed no point of weakne.ss in the plan. 



Condition ok Factories and Machinery. — The exten.sive 

 manufacturing plants belonging to the company, as well as the 

 machinery atul tools, have been kept up to the high standard of 

 efficiency maintained during the past few years and the cost there- 

 of charged in expense accounts. 



Dividends — The company has paid its regular quarterly divi- 

 dends at the rate of 8 per cent, per annum upon its first preferred 

 stock, and at the rate of 6 per cent, per annum upon its second 

 preferred stock issued during the year under the contract of May 

 12, 1905, with A. N Brady, syndicate manager, approved by the 

 stockholders in special meeting. May 25, 1905. No dividend has 

 been paid upon the common stock. 



It has been the policy of the directors to strengthen the com- 

 pany by adding to its surplus and by improving its efficiency in 

 order to give a.ssurance of the continuance of dividends upon its 

 preferred stocks before the resumption of dividends upon the com- 

 mon stock, it being believed that in the end this conser\-ative 

 policy will result to the best interests of all the stockholders. 



It is to be desired that in industrial properties there shall be es- 

 tablished stability and regularity of dividends, such as obtain in 

 the best railway properties ; for example. New York Central rail- 

 road, having paid dividends at the rate of 5 per cent, for some 

 years past, is valued at over $135 per share, and Pennsylvania 

 railroad, now paying 6 per cent., at about the same price— the 

 average yield of the two stocks being less than 4>< per cent. At 

 $133 per share our first preferred stock and at $100 per share our 



TREASURER S REPORTS. 



United .States Rubber Co. and Subsidi.\ry Comp.vnies. 



[Not including Assets or Liabilities of Rubber Goods Manufacturing Co., or of 



its Subsidiary Companies.] 



CoNsoi.iDA rhi) General Balance Sheet, March 31, 1906. 



ASSETS. 



Property and plants (including 



shares of R. G. M. Co.) $ 72,161,025.12 



Inventories, mfd. goods and ma- 

 terials $16,691,911.46 



Cash 2,275.805.78 



Bills and loans receivable 2,710,163.58 



Accounts Receivable 8,570,596.56 



.Securities Owned 7,519,864.94 



Miscellaneous Assets 502,368.51 38,270,710.83 



Total Assets f 1 10,431,735.95 



L I .-v B I L I T I E s. 



Capital stock. First Preferred $35,067,000 00 



Capital stock, .Second Preferred.. . 9,586,300.00 



Capital stock, Connnon 25,000,000.00 



Boston Rubber Shoe Co., debentures 



U. S. Rubber Co., funding notes 



Fixed surpluses (Subsidiary companies) 



Loans and notes payable $9,899,928 91 



Merchandise accounts payable: .... 2,842 430 29 



Deferred liabilities 



Reserve for depreciation of securities 



Reserve for dividend 



Surplus 



Total Liabilities 



$ 69,653,300.00 

 4 800 000 00 

 8,000,000.00 

 8,134,849.37 



12,742.359-20 



233.798 16 



1,000,000.00 



845,14950 



5,022,279.72 



$110,431,735.95 



[Note. — Haskell & Sells, public accountants, certify that on 

 March 31 the quick assets exceeded liabilities other than capital 

 and surplus, to the extent of $12,102,090.78.] 



United States Rubber Co. and Subsidiary Comtanies. 



[Not including Earnings of Rubber (ioods .Manufacturing Co., or of its Subsidi- 

 ary Companies.] 

 Consolidated I.n'come Statement eor Year Ending, March 31, 1906, 

 Gross sales, boots and shoes and miscellaneous. . . $54. 723, 756.53 



Net sales, boots and shoes and miscellaneous $32,868,594.00 



Cost of goods sold 26,482,328.53 



Manufacturing profits $6,386,265.47 



Freight, taxes, insurance, general and 



selling expenses 1,480,760.26 



Operating profits $4,905 505 21 



Rubber Goods Mfg. Co., dividends 



as a<ljusted $276,769.97 



Other income 102,798.19 379,568.16 



Total income S5.2S5.073 37 



Less : 



Interest and commi.ssion on Fund- 

 ing notes and borrowed money. . . . $<joo,789 73 



Interest on Boston Rubber Shoe 



Co. debentures 240,000.00 



Interest allowed customers for pre- 

 payments 193,786.40 1.334.576.13 



Net income to surplus $3,950,497.24 



Deductions for bad debts, etc . . . 69,227.01 



Total Surplus $3,881,270.23 



Dividends 2,846,092.00 



Surplus for period $1,035, 17S-23 



Surplus April I, 1905 3,987,101.49 



Surplus March 31, 1906 $5,022,279.72 



JOHN J. WATSON. Jr., Treasurer. 



