282 



THE INDIA RUBBER WORLD 



[J^ 



1906. 



second preferred slock would each yield (> per cent, upon the in- 

 vestment. Upon such considerations, it has seemed conservative 

 and just to defer <lividends upon the common stock at least until 

 such time as the management shall be reasonably satisfied that, 

 having bcRun their payment, the same can be maintained, although, 

 — even without present dividemls in casli, the common stock, by- 

 enhancement of value through accumulation of a surplus, will 

 have shared in the prosperity of the company. 



RUBBKR GootKS MANfi-ACTrRiNO Co. — Over So per cent, of the 

 capital stock of the Rubber Goods Manufacturing Co. has been 

 acquired by the United States Rubber Co. during the year, under 

 the contract of May 12. 1905, above mentioned, with A. N. Brady 

 and other directors. This has been accomplished through the ex- 

 change of the preferred and common shares of the Rubber Goods 

 companv for the first and second preferred shares of the United 

 States Rubber Co. .^s shown by the application, dated October 

 5 1905, to the committee on stock list of the New York Stock 

 Exchange, of which printed copies can be obtained, on that date 

 there had been issued under that contract 51,148 shares of fir.st 

 preferred stock for an equal amount of Rubber Goods first pre- 

 ferred stock, and 83 873 shares of second preferred stock for 137. 163 

 shares of the common stock of the Rubber Goods Manufacturing 

 Co. Since that date additional exchanges have been made, and 

 may yet be made, under authority of the directors. 



The beneficial results to both companies of this acquisition your 

 directors believe will be very great Heretofore, the product of 

 the United States Rubber Co. has been confined almost exclusively 

 to rubber footwear, of which the use is dependent, more or less, 

 upon the severity of tlie winter — while the Rubber Goods company 

 manufactures no footwear, but a great variety of miscellaneous 

 rubber goods, as, for example, belting, packing and hose, auto- 

 mobile, bicycle and carriage tires, flooring, clothing, druggists' 

 sundries, etc. In general, both companies use the same raw male- 

 rials, and both have had distributing agencies in the same centers. 

 Consequently, savings can be effected in the purchase of supplies 

 and the distribution of goods, and the diversity of product tends to 

 equalize the volume of business and the profits in years of varying 

 character. 



Rubber footwear, though, as already observed, in some degree 

 dependent upon the weather, is a necessity, and therefore its sale 

 is not specially affected by general conditions of trade. Practically 

 the opposite is true as to rubber miscellaneous goods. This is aptly 

 illustrated by the business in the past mild winter under trade con- 

 ditions generally favorable. The net sales of the United States 

 Rubber Co. for the year show a slight decrease compared with 

 those of the previous year, while those of the Rubber Goods com- 

 pany show an increase of over $3,000,000. 



Should the next winter be severe, and general business decline, 

 it may be expected that the sales of the United States Rubber Co. 

 will increase to a greater extent than will those of the Rubber 

 Goods Manufacturing Co. 



The dissolution of the Rubber Goods Manufacturing Co. may be 

 effected at any time by the United States Rubber Co. owning much 

 more than two thirds of its shares, but for the present such disso- 

 lution is held in abeyance. 



Export Bl"SINESS. — Our exports of rubber footwear during the 

 past year, although still relatively small, show a gratifying gain 

 over any previous year. 



Generai, RiTBBER Co. AND CRUDE RUBBER. — The Cash capital 

 of the General Rubber Co. has been increased during the year from 

 $1,000,000 to J3 000,000, the additional stock having been subscribed 

 and paid for : Si, 000, 000 in the interest of the United Stales Rubber 

 Co., and $[,000,000 by the Rubber Goods Manufacturing Co. In 

 order to provide ample working capital for the important business 

 to be transacted by the General Rubber Co., there have been au- 

 thorized I9 000,000 of 4)4 per cent, ten- year debentures of that 

 company. S6,ooo 000 of these debentures have been sold, guaran- 

 teed by the United States Rubber Co. and the Rubber Goods Man- 



ufacturing Co., and the remaining $3,coq,ooo are retained for fu 

 lure re<iuirements. 



The most important problem of the future to the manufacturing 

 interests of this company is the obtaining of its requirements of 

 crude rubber to the best advantage, and your president looks upon 

 the fonnation of the Generel Rubber Co., with its large capital and 

 resources, as one of the most important steps taken by the United 

 Slates Rubber Co. With the control of the Rubber Goods com- 

 ])any, the Ignited States Rubber Co., has become by far the largest 

 consumer of crude rubber in the world, and your president feels 

 that the advantages that may reasonablj- be expected to result from 

 our present facilities for handling this branch of our business can 

 hardly be overestimated, and are a guarantee of the future pros- 

 perity of this company. 



Other rROPERTlES.— As it has been found that your company 

 could manufacture for less than it can purchase certain articles 

 which enter into or form a part of its goods, iinporlant ailditions 

 in this direction have been made during the year. For such and 

 other ac()uisitions, which have been made by authority of the 

 board of directors, through directors and others, all as set forth in 

 its minutes, there have been issued shares of first preferred stock, 

 in addition to those outstanding October 5, 1905. 



E-XCHANGE OF CERTIFICATES.— A large proportion of the certi- 

 ficates for (original) preferred stock have been exchanged for those 

 of the first preferred stock authorized at the meeting of May 25, 

 1905. It is desirable that the remainder of the (original 1 preferred 

 stock now outstanding shall be exchanged, as the old certificates 

 have ceased to be a delivery on the New York Stock Exchange. 



Owing to the importance of the transactions during the year, 

 this report will be sent to the stockholders in advance of the an- 

 nual meeting, and as usual the record books of the directors and 

 the executive committee will be open for inspection by stock- 

 holders at the annual meeting. Respectfully submitted, 



SAMIEL P. COLT, President. 

 New Brunswick, New Jersey, May 15, igo6. 



THE ANNUAL ELECTION. 

 Nineteen directors were chosen, being two more than last 

 year. The seventeen members of the old board were reelected. 

 The new members are Jlessrs. Dale and Kelley, representa- 

 tives of the Rubber Goods Manufacturing Co. interest. The 

 number of terms for which each member of the board has 

 been chosen is indicated : 



Walter S. Ballou, Providence, Rhode Island. [Fourth term.] 

 Anthony N. Brady. No 54 Wall street, New York. [Third 



term.] 



Elias C. Benedict, No. 80 Broadway, New York. [Fifth 



terra.] 



Samuel P. Colt, Bristol, Rhode Island. [Fifteenth term ] 

 Harrv E. Converse, Bo.ston, Massachusetts. [Ninth term.] 

 Costello C. Converse, Boston, Massachusetts. [Sixth term.] 

 Charles H. Dale, No. 16 Warren street. New York. [First 



term.] 

 James B. Ford, No. 42 Broadway, New York. [Fifteenth term.] 

 J. Howard Ford. No 42 Broadway, New York. [Fifteenth 



term.] 



Frank S. Hastings, No 80 Broadway. New York. [Second 



term.] 



Francis L. Hine, No. 2 Wall street, New York. [Fourth term.] 

 Henry L. HoTCHkiss, New Haven, Connecticut. [Fifteenth 



term.] 



Arthur L. Kelley, Providence, Rhode Island [First term.] 

 Lester Leland, Boston. Massachusetts. [Eighth term.] 

 Frederick M. Shepard, No. 7S7 Broadway, New York. [Fif- 

 teenth term.] 



Francis Lvnde Stetson, No. 15 Broad street. New York. 

 [Fifth term.] 



William H. Truesdale, No. 26 Exchange place, New York. 

 [Second term.] 



