120 



THE INDIA RUBBER WORLD 



[January i, 1905. 



The history of the past year in the trade has been one of 

 general price cutting, which seems to have been inaugurated by 

 the Swift Cycle Co., Limited. During the year previous to the 

 last, prices were of a uniform and general character. The 

 Swift company, however, not receiving from the public that 

 support which they expected, decided to place upon the mar- 

 ket in the middle o( the season high grade Coventry-made 

 bicycles at S guineas [=about $41], which was a very heavy re- 

 duction. At the annual meeting of the company (Coventry, 

 November 30) Mr. Alfred Du Cros, who presided, said that he 

 thought the company's policy had been justified by the result. 

 The directors believed that the only basis upon which a Cov- 

 entry cycle manufacturer could continue in business was by re- 

 ducing the cost of manufacture to a minimum, and by placing the 

 works in such position as would admit of a largely increased 

 output. The company had, therefore, extended their works 

 and acquired another factory near their premises. The Swift 

 Cycle Co., Limited, as Tht I'hiancial Neivs puts it, "was one 

 of the victims of the flotation mania of the middle nineties," 

 and had done so badly that by 1901 reconstruction was neces- 

 sary, in which the ordinary shares were cut down by 80 per 

 cent. — from ^£200,000 to £^a,ooo. Comparing the last three 

 years (ending August 30), it appears that trading profits have 

 been well maintained, and that dividends have been paid at the 

 uniform rate of 6^ per cent, on preferred and 10 per cent, on 

 ordinary shares, while a substantial reserve has been main- 

 tained. 



The company above referred to, however, by no means stands 

 alone. For example, Rudge-Whitworth, Limited, whose cycles 

 have had even greater popularity, have reduced their "Stand- 

 ard " cycle from 10 guineas (representing at that price an ap- 

 preciable reduction upon previous figures) to £^ i jj-. [ = $3772]. 

 Rudge-Whitworth, by the way, failed to make a favorable show- 

 ing in the reports submitted at the annual meeting on October 31, 

 when a fall in profits was shown from £, 34,310 for 1 2 months to 

 ^7235 for II months, the company's year now ending on July 

 31. The shrinkage of profits, the chairman asserted, " was al- 

 most solely due to the state of trade in South Africa." A share- 

 holder at the meeting said that anyone concerned in the cycle 

 trade who had observed the effect of the manufacture of motor 

 cars on cycle companies which had taken up this trade would 

 fully confirm the wisdom which they claim to have displayed in 

 not embarking on either of its branches. Sir Henry Wiggin, 

 Bart., in supporting the report, suggested that cycle manufac- 

 ture should come together and tried to reach an arrangement to 

 prevent the severe competition and the cutting of each other's 

 throats. 



The Premier Cycle Co., Limited, report trading profits of 

 ;^7o 263, compared with £jt. i 26 last year, but the balance, after 

 all deductions, including debenture interest, is only ;£4453, 

 againt ^19.275. The Financial News says: "This result is 

 vastly better than that of two years ago, when the woiking pro- 

 duced a deficit of ^£7000, but it is clear that there must be a 

 complete overhaul of the expenditure to bring it into some re- 

 lation with the earnings." 



Humber, Limited, date from March. 1900, being the result of 

 the amalgamation of two companies which had ceased to be 

 profitable. The capital is ;^50o.ooo, in equal proportions of or- 

 dinary and 6 per cent, cumulative preference shares. It ap- 

 pears that no dividends have ever been paid on the ordinary 

 shares, and that the preference dividend is 18 months in arrears. 

 Djring the last fiscal year the net profits, available for divi- 

 dends, amounted only to ^1225. The directors, however, con- 

 tinue to manifest a lively confidence in the motor car industry, 

 ill which they embarked two years ago, and they apparently 



look for a revival in the sale of cycles, as a result of the red uced 

 prices now prevailing. 



The New Hudson Cycle Co.. Limited, reports net profits for 

 the past three years : ^6077 in 1902; ;£8200 in 1903; ;^8ii8 in 

 1904. Preferred dividends have been paid, and for four years 

 past, 4 per cent, on the ordinary shares. The company has 

 been writing ofl "good will," and this year set apart ^3000 as a 

 nucleus for a general reserve. 



The shareholders in the Raglan Cycle and Anti Friction Ball 

 Co., Limited (Coventry, November 14), voted to wipe out 

 ^80,000 in "good will" by reducing the ^i shares to 6.f. %d. and 

 to devote ^^22,000 in reserves and balance of profits to writing 

 otT for depreciation and further reducing " good will." 



The Raleigh Cycle Co., Limited, reported net profits for the 

 year ending August 13 last of ^£1501, which amount is carried 

 over. Early in May a heavy cut in bicycle prices had been made 

 by competing companies, but they decided to maintain prices, 

 as the lesser of two evils, and their output had been smaller in 

 consequence. The company hoped to enter the motor indus- 

 try, with good results. 



The following table illustrates the range of market quota- 

 tions for shares in the preceding named cycle companies, for 

 the past two and a half months— shares being of the par value 

 of 20 shillings, except where otherwise noted : 



Low. Hif-h. 



Dunlop, ordinary 5^. ^Yid. 8/. 3flf. 



Do. preferred Ms. i^d. \2s. 'id. 



Do. deferred \s. 3 </. is. od. 



Humber, ordinary \s. g d. 2s. bd. 



Do. preferred ts. o d. 7^. cd. 



New Hudson, ordinary j^s, 9 d. 14^. bd. 



Do. preferred 15.?. 9 d. lis, od. 



Premier, ordinary (4.r. shares) 9 d. is. bd. 



Do. preferred (loj. shares) 4^. lo^d. is. od. 



Rudge-Whitworth, ordinary i6.f. 6 d. 22s. <)d. 



Do. preferred 4s. 6 d. ^s. od. 



Swift, ordinary i6.r, 6 d. iSs. od. 



Do. preferred... :4s. 3 d. 14s. bd. 



THE STANLEY CYCLE SHOW. 



LONDON has had only one great cycle show this winter, in- 

 stead of two, as in former years. The twenty-eighth an- 

 nual Stanley show was held November 18-26, at the Agricul- 

 tural Hall, Islington. More than usual importance was attached 

 to this show for the reason that the National Cycle Show — 

 which hitherto was held at the Crystal Palace — has amalga- 

 mated with the Islington show, the control being entirely with 

 the Stanley officials. One result was that a largely increased 

 number of exhibitors applied for space, including many whose 

 exhibits had been made in the past only at the National show. 



The Stanley this year was still essentially a cycle show, 

 though in each year, beginning in 1899, it has been representa- 

 tive of the advance in motor construction. More exhibitors of 

 motors were represented this year than in any former year and 

 a greater variety of cars were shown. The display in this re- 

 spect doubtless would have been larger, but for an understand- 

 ing between the management and the proprietors of another 

 exhibition to restrict the number of motor cars. 



The chief new feature of the Stanley show was the number 

 of "tri-cars" exhibited, and the improvements which have 

 been made in their design, finish, and control. The tri-car is a 

 kind of hybrid which has a position between the motorcycle 

 and the small car. It is three wheeled, steering with two 

 wheels in front, and the single rear wheel taking the drive of 

 the engine. The driver sits over the back portion of the ma- 

 chine, while the passenger is seated in a well-sprung basket be- 

 tween the front wheels. This type of motor has advanced 



