April i, 1902.] 



THE INDIA RTTP.BER \VORLD 



229 



NEWS OF THE AMERICAN RUBBER TRADE. 



UNITED STATES RUBBER CO. — NEW FINANCIAL PLAN. 



PLANS are reported to be under way for the funding of 

 the floating debt of the United States Rubber Co., 

 now distributed among various financial institutions 

 throughout the country, into one obligation. This debt 

 is reported to be in the neighborhood of $11,000,000. The pan 

 referred to involves the issue of §12,000.000 in 5 per cent, first 

 mortgage gold notes, due from 1902 to 1905. Such an arrange- 

 ment would establish an annual interest charge of $600,000, 

 having priority over the preferred share dividends. President 

 Colt, of the rubber company, is in charge of the projected reor- 

 ganization of the company's finances, the details of which are 

 expected to be carried out by Blair & Co., bankers. No. 41 Wall 

 street, and the First National Bank of New York. The Blair 

 firm have acted in a similar capacity in refunding obligations of 

 the American Linseed Co. and the Pressed Steel Car Co., on 

 lines which will be followed in the case of the United States 

 Rubber Co. At a regular meeting of the directors of the rubber 

 company (New York, March 20), two vacancies in the board were 

 filled by the election of Francis L. Hine, vice president of the 

 First National Bank, and Francis Lynde Stetson, a member of 

 the law firm of Stetson, Jennings & Russell, and who is re- 

 ferred to as J. Pierpont Morgan's attorney. Prior to this 

 election the news had emanated from Boston that " the Keene 

 interests" in United States Rubber, would demand represent- 

 ation on the board, their holdings, mostly of common stock, 

 being variously estimated, up to as much as 50,000 shares. Mr. 

 Morgan has not been understood to have any interest in the 

 matter, though the fact of his having had large transactions with 

 Charles R. Flint became public shortly alter the latter's retire- 

 ment as a director in the United States Rubber Co., and about 

 the time of the failure of the Crude Rubber Co. It was then 

 that Mr. Flint stated, in a newspaper interview, that he had 

 borrowed $1,000,000 from Mr. Morgan in 1900, the last $500,000 

 of which he had paid about the middle of December, 1901, but 

 in what way the debt was cancelled he did not state. Mr. 

 Blair, the banker above referred to, is quoted as saying that a 

 recent investigation showed the United States Rubber Co. to 

 be in a solvent condition. The benefit of the proposed refund- 

 ing of the company's debt would be that their consolidated 

 notes would find a better market, and that there would be 

 less trouble to the concern issuing them. Under existing con- 

 ditions the management of the company were kept busy, mak- 

 ing provision for'the frequent maturity of obligations in many 

 banks. President Colt is quoted by a Boston journal as stating 

 that the collective indebtedness of the constituent companies 

 of the United States Rubber Co., at certain seasons, amounts 

 to about $ro,ooo 000. " In the past the United States Rubber 

 Co. has been obliged to borrow money for working capital. 

 Through the issue of these notes the company will fund its in- 

 debtedness into one kind of security, and it will not have to 

 borrow its working capital. This will naturally strengthen the 

 financial position of the company." The trustees of the note 

 issue will be Blair & Co., the First National Bank, and the 

 Morton Trust Co.^^In connection with the new developments 

 above noted has been an increased amount of trading in United 

 States Rubber, and an advance in prices. The rumor was also 

 afloat that a consolidation with the Rubber Goods Manufactur- 

 ing Co. was probable, but this was without foundation. Trans- 

 actions on the New York Stock Exchange have been : 



At a later meeting of the directors (March 27) another 

 vacancy on the board was filled by the election of Middle- 

 ton S. Burrill, of the law firm of Zabriskie, Burrill & Murray, 

 of No. 49 Wall street. New York. The number of directors 

 is thus brought up to sixteen. The by-laws provide for nine- 

 teen, but the full number has not been elected for several years 

 past. Since the last annual meeting Charles L. Johnson, a 

 member of the board, has died, and Charles R. Flint resigned. 



CRUDE RUBBER CO. — SHERIFF'S SALE. BANKRUPTCY. 



The following advertisement appeared in one New York 

 newspaper— the Herald— on the morning of March 12 : 



SHERIFF'S SALE. 

 Sheriff's auctioneer will sell this day WEDNES- 

 DAY, March 12, 1902. at 10:30. in the forenoon, at 

 No. 25Broad St., rooms 1,822 and 1,823, eighteenth 

 floor, lot of office Furniture, consisting of rolltop 

 Desks. Tables. Chalrs.Typewrlters, Safes, &c.; also 

 lot of Crude Rubber. 



WM. J. O'BRIEN. Sheriff. 

 JOS. F. PRENDERGAST, Deputy Sheriff. 



The news had previously emanated from the sheriff's office, 

 however, that the sale would embrace "The right, title, and in- 

 terest of the company in a large quantity of crude rubber 

 which is held by bankers as collateral security for loans 

 amounting to $462,410 " — the sale being under an attachment 

 in favor of the Hempstead (Long Island) Bank, which had 

 been merged into an execution for $5i56.=~The amount 

 realized for the office fixtures was $1771, including about $900 

 for some small lots of sample rubber in the office. It was de- 

 cided to postpone the sale of the other rubber referred to above. 

 ==March 19 the receivers for the Crude Rubber Co. were 

 authorized by the United States court to dispose of a quantity 

 of crude rubber now in store. This rubber consists of a lot of 

 odd parcels left over from original importations, including a 

 lot of African rubber, which, it was claimed, would deteriorate 

 in value if held through the summer. The receivers were in- 

 structed to sell the rubber at private sale in such way as in 

 their judgment might seem best.==An involuntary petition in 

 bankruptcy was filed in New York March 24 against the Crude 

 Rubber Co. by three creditors : Bank of New Brunswick, of St. 

 John, $5000; First National Bank of Ottawa, Illinois, $5000; 

 and the National Bank of Montana, at Helena, $5000. All the 

 claims are on notes of George Watkinson & Co. (Philadel- 

 phia), made on September 25 and October 10 last, and indorsed 

 by the Crude Rubber Co. The petitioners allege that the com- 

 pany is insolvent, and has committed various actsof bankruptcy 

 within four months past, among which is enumerated the ap- 

 plication of Charles R. Flint and Wallace B. Flint for the ap- 

 pointment of a receiver for the company, into whose hands was 

 placed property of the company worth$ioo,ooo, for the purpose, 

 as alleged, of hindering other creditors and giving unlawful 

 preferences. ==A11 persons having claims against the Crude 

 Rubber Co. are notified by the receivers to present the same, 

 not later than April 21, at the office of William W. Ladd, Jr., 

 No. 20 Nassau Street, New York. 



