June i, 1909.] 



THE INDIA RUBBER WORLD 



323 



United States Rubber Co.'s Annual. 



THE seventeenth annual meeting of sliareholdors of the 

 United States Rubber Co., incorporated under the laws of 

 New Jersey, was held at the registered offices of the com- 

 pany in that State, at New Brunswick, on May iS. The opera- 

 tions of the company during the last business year and its condi- 

 tion at the close of the year are indicated in the annual reports 

 of officers, as read and approved, and which arc presented here. 



PRESIDENT'S REPORT. 



To THE Stockholdkrs of the United States Rubber Co.: 

 Your president submits this, the seventeenth annual report of 

 the company, for the fiscal year ending March 31, 1909 



Treasurer's Report. — The results of the operation of the 

 company and its subsidiary companies are shown by the consoli- 

 dated income statement which follows. The balance sheet sets 

 forth the financial condition of the company and its subsidiary 

 companies, at the close of business March 31, 1909. The income 

 statement shows that while, owing to the general commercial 

 depression, our volume of sales decreased, as compared with the 

 previous fiscal year, our profits increased from $3,553,556.14 to 

 $4.50".6S5.39, and that the earnings from operations have been 

 sufficient for the payment of the regular 8 per cent, dividend 

 on the first preferred stock and 6 per cent, on the second pre- 

 ferred stock, leaving surplus earnings of $1,008,715.39 for the 

 year. In view of these conditions this has been deemed by your 

 directors a proper time to make a substantial charge for depreci- 

 ation against properties, plant accounts and securities owned, 

 and. as is shown by the statement of income, we have made a 

 charge against surplus account of $1,354,890.82. 



Inventories. — Our inventories of manufactured goods are 



taken at figures considerably below the present cost of manu- 

 facture and our crude rubber and raw materials on hand at 

 figures below the market price March 31. 



Sales. — It is a source of satisfaction to know that, while our 

 sales for the past year fell off, the number of our customers in- 

 creased, and that the falling off in sales is largely due to the 

 general conditions prevailing throughout the country. 



Organization. — During the year much attention has been given 

 to bettering the condition of our subsidiary companies and rais- 

 ing the standard of cfiiciency of our organization, from which 

 the company should benefit in the future. 



Refunding. — The company has created an issue of $20,000,000 

 of collateral trust bonds, of whicli $15,000,000 have been sold, 

 $5,000,000 being reserved for future requirements of the com- 

 pany. Out of the proceeds of the bonds sold, we have called and 

 paid the issue of United States Rubber Co. funding notes of 

 $8,000,000. and the issue of Boston Rubber Shoe Co. debentures 

 of $4,500,000, the remainder being employed as working capital. 

 General Rubber Co. — The advantage to our company of the 

 General Rubber Co., with its branch houses, has been apparent 

 during this year. 



Rubber Goods Manufacturing Co. — Owing to the large inter- 

 est of this company in the Rubber Goods Manufacturing Co., I 

 quote from the last annual report of its president, as follows : 

 "For the year 1908. the total sales, as compared with 1907, 

 showed a decrease of less than 14 per cent. The earnings 

 were $2,203,519.19, as compared with $2,371,827.44 for 1907, 

 a decrease of about 7 per cent. Thus it appears that while 

 the volume of the business of your company has been affected 

 during the year by general conditions existing throughout 



THEASITRER'S REPORT. 



UNITED ST.\TES RUIiBER CO. AND SUBSIDI.VRY COMP.-VNIES. 



C0NS0LID.\TED GeXER.VL B.\L.\NCE ShEET, MaRCH 3I, I9O9. 



[Not including assets or liabilities of Rubber Goods Manufacturing Co., or 

 of its subsidiary companies] 



ASSETS. 



Propertv and plants (including shares of R. 



G. M. Co.) $74,645,236.38 



Inventories manufactured goods and 



materials $13,522,023.82 



Cash 1,985,54374 



Bills and loans receivable 830,399.58 



Accounts receivable 9,247,818.25 



Securities owned 6,372,892.38 



Miscellaneous assets S5.604.66 32,044,282.43 



Total assets $106,689,518.81 



I.I.Mill.ITIES. 



Capital stock, first preferred $36,263,000.00 



Capital stock, second preferred 9.965,000.00 



Capital stock, common. $25,000,000.00 



Less common stock in 

 treasury of subsidi- 

 ary company 1,334,000.00 23,666,000.00 



Ten-year 6% collateral trust sinking fund gold 



bonds 



I-oans and notes payable $1,797,077.55 



Merchandise accounts payable 569.S61.90 



Due General Rubber Co 4,268,896.41 



Deferred liabilities not yet due 



Reserve for dividend 



Fixed surpluses (subsidiary companies) 



Surplus 



$69,894,000.00 

 15,000,000.00 



6,635.835.86 



311,459.43 



874.735-00 



8.134.S49.37 



5,838,639.15 



Total liabilities $106,689,518.81 



[The contingent liability for certain guarantees, which are offset by cor- 

 responding contingent assets, are not included.] 



Consolidated Income Statement for the Year Ending March 



31, 1909- 



Gross sales, boots and shoes and miscellaneous $46,403,254.26 



Net sales, boots and shoes and miscellanous. . . . $31,889,351.34 



Cost of goods sold 24.616,391.54 



Manufacturing profits $7,272,959.80 



Freight, taxes, insurance, general and selling ex- 

 penses 1,664,609.09 



Operating profits $5,608,350.71 



Other income, including dividends recei"ved on 



stock of Rulilier Goods Manufacturing Co... 1,157,787.84 



Total income $6,766,138.55 



Less: 



Interest and commission on fimding 



notes and borrowed money.... $1,728,650.45 



Interest on Boston Rubber Shoe Co. 



debentures 218.125.00 



Interest allowed customers for pre- 

 payments 247.161.48 2,193,936.93 



Net income to surplus $4,572,201.62 



Deductions for bad debts, etc 64.546.23 



Net profits $4,507,655.39 



Dividends 3,498,940.00 



Surplus for period $1,008,715.39 



Surplus April i, 1908 6,184,814.58 



$7,193,529.97 

 Deductions from surplus for depreciation of prop- 

 erties, plant accounts and securities owned.... $1,354,80,0.82 



Surplus March 31, 1909 $5,838,639.15 



JOHN J. W.\TSON, Jr.. Treasurer. 



