June i, 1905.] 



THE INDIA RUBBER WORLD 



309 



THE UNITED STATES RUBBER CO.'S ANNUAL REPORT. 



THE lliirteenlh annual meeting of the stockholders of the 

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

 on May 16, at the registered offices of the company in 

 New Jersey, at New Brunswick. The annual reports 

 of the president and treasurer were presented and accepted, 

 and directors elected for the ensuing year. The ofTicial reports 

 are presented herewith in full : 



president's annual report. 



Nbw Brunswick, New Jhrskv, May i6, 1905. 



To THE Stockhoi.dkrs i)K tmk UNirKD States Ruhbek Company : 

 The prosperity which a year ago your president ventured to predict for 

 the United States Rubber Company has been more than realized, as is 

 shown by the treasurer's report hereto appended. 



Promts. — The net profits of the business for the year, amounting to 

 $3,761,922.63, are more than double those of the preceding year, and 

 this in face of the prevailing high prices for crude rubber, unprece- 

 dented in the history of the rubber industry. 



Volume or Business. — The net sales of the company for the year 

 were $32,g3i,2io 86 as against ^^33,396,918.88 for the previous year, a 

 slight decrease, yet largely in excess of any year other than the one pre- 

 ceding this. 



EMri.oYi's Proki r sharing Plan. — The demonstrated result of the 

 employes' profit-sharing plan is most gratifying. The market value of 

 the preferred and common stock which was distributed among our em- 

 ployes represents from two to four times the price at which it was allot- 

 ted, while the interest, energy, and loyalty of these employes abundantly 

 shows the wisdom of this important step. 



EcoNo.MiEs IN Manufacturing. — The work which was aggressively 

 started in this connection three years ago has produced results this year 

 much greater than heretofore, and your president wishes especially to 

 recognize the efforts of our superintendents and others who have been 

 instrumental in bringing about this most desired result, which has been 



accomplished, and at the same time the high standing of our goods 

 maintained. 



Dividends. — From the organization of the company in 1892, until 

 iqoi, regular dividends had been declared upon the preferred stock, and 

 occasional dividends upon the common stock. For reasons heretofore 

 given, dividends were suspended for a time upon both classes of stock, 

 and your directors felt it unwise to resume dividends until they could 

 feel morally certain of maintaining them. Consequently, with the de- 

 sire of preserving this caution, dividends, when resumed a year ago, 

 were declared at the rate of 6 per cent, upon the preferred stock. Upon 

 finding that the result of the year's business showed a net profit of about 

 16 per cent, on the preferred stock, your directors felt it their duty to 

 make up in the last dividend of this year sufficient to give the preferen- 

 tial stockholders the full 8 per cent, dividend to which they are entitled 

 and thus place the stock upon an 8 per cent, basis. 



Funded Indebtedness. — Three years ago the floating indebtedness 

 of the United States Rubber Company and its subsidiary companies 

 was funded into $12,000,000. three-year funding notes — $2,000,000 of 

 which had been paid from earnings previous to this year. At the ma- 

 turity of these notes. March 15, 1905, $2,000,000 more were paid off, 

 and the remaining $3, 000, 000 were extended for a further period of 

 three years. 



Crude Rubber — Owing to the increased uses to which crude rubber 

 is being constantly applied and the much higher range of prices result- 

 ing therefrom, it has been thought expedient for the company to pro- 

 vide independent facilities for procuring its requirements of this article, 

 and to this end the General Rubber Company has been organized and 

 put into successful cperation, establishing our own houses at Para and 

 Manaos, thus giving our company advantages as to prices, and guar- 

 antee as to supply, not at the present time enjoyed by any other con- 

 sumer in the world. 



The increase in our merchandise account, as also in current payables, 

 this year over last, as shown in the treasurer's statement, is largely ow- 



TREASURER S REPORTS. 

 United States Rubber Co. and Subsidiary Companies 



CoNSOLlDATBD Genkbal Balance Sheet, March jl, 1905. 

 ASSETS. 



Property and plants $47,660,697.76 



Inventories, Mfd. goods and materials.. $20,715,378 64 



Cash 2,211,292.27 



Dills and loans receivable 2,979.814 31 



Accounts receivable 7,530.8o7 1 1 



Securities owned 4.123,565.39 



Miscellaneous assets 587,65684 38,148,514.56 



Total Assets. 



,809,212.32 



L I a B I L I r I E S. 



Capital Stock, Preferred $23,525,500.00 



Capital stock, Common 23,666,000.00 $47,191,500 00 



Boston Rubber Shoe Co., debentures 4,800,000.00 



U. S. Rubber Co., Funding Notes 8,000,000.00 



Fixed Surpluses (Subsidiary companies) 8,134,849.37 



Loans and notes payable $6,521,387.50 



Merchandise accounts payable 5,763,494 35 12,284,881.85 



Deferred liabilities 87,487.11 



Reserve for depreciation of securities 500,000.00 



Reserve for dividend [payable May 15, 1905]. 823.392.50 



Surplus 3.987. 101.49 



Total Liabilities. 



5,809,212.32 



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

 31 the quick assets of the United States Rubber Co. and subsidiary 

 companies exceeded all liabilities, other than capital stock and surplus 

 accounts, to the extent of $11,065,096.26 ] 



United States Rubher Co. and Subsidiary Companies. 



CoNSOLlriATED Income Statement i or Year Ending, March ti, 1905. 

 Gross sales, boots and shoes and miscellaneous $57,030,904 94 



Net sales, boots and shoes and miscellaneous $32,931,210.86 



Cost of goods sold 26,110,331.97 



Manufacturing profits $6,820,878.89 



Freight, taxes, insurance, general and selling expenses. 1.800,154.14 



Operating profits $5,020,724 75 



Other income 161,392.54 



Total income $5,182,117.29 



Less : 



Interest and commission on Funding 



Notes and borrowed money $1,040,932.19 



Interest on Boston Rubber Shoe Co. de- 

 bentures 240,000 00 



Interest allowed customers for pre- pay- 

 ments 192,52997 1,473,462.16 



Net income to surplus $3,708,655.13 



Additions to surplus 88,852.02 



Deductions for bad debts, etc. 



$3,797,507 15 



35.584-52 



Total Surplus $3,761,922.63 



Dividends 1,882,040.00 



Surplus for period $1,879,882.63 



Surplus April i, 1904 2,107,218.86 



Surplus March 31, 1905 $3,987,101.49 



JOHN J. WATSON. JR., Treasurer. 



