624 



THE INDIA RUBBER WORLD 



1 September 1, 1913. 



the Miami company has been looking around tu m^huc the 



agency tor another good tire concern, as it has one of the best 



eflablished trades in this city. 



* * * 



W. G. Brown & Co.. distrilnitors of crude rubber, have re- 

 moved their offices from 701 Provident Hank Building to room 

 2802 Union Central Life Insurance I'.uilding. 



THE RUBBER TRADE IN CHICAGO. 



By a Resident Correspondent. 



A FEELING of optimism again predominates in the rub- 

 ber trade of Chicago, which for some little time has 

 been extremely dull, .^n improvement in the mechanical 

 rubber goods line is especially noticeable; ;ind rubber belt 

 manufacturers report some excellent orders from western 

 Canada, where many grain elevators are being built in which 

 to stor« the abundant wheat crop now being harvested in 

 that country. Local tire men state that the summer's busi- 

 ness in automobile tires has not only exceeded that of any 

 previous summer, but has also exceeded their expectations, 

 and that hereafter they will devote greater attention to this 

 branch of the industry. While the weather has not been 

 favorable to the sale of rubber clothing, the popularity of 

 the rubber coat has not been diminished, and the outlook 

 for fall in this line is encouraging. 



* * * 



Much interest is expressed in the contemplated opening 

 by tlie Electric Hose Co. of a Chicago branch, but details of 

 the company's plans have not thus far been disclosed. 



-f: ^ * 



Local hose and belt manufacturers, whose contracts for 

 cotton used in these products have now expired, are viewing 

 with some apprehension the making of new contracts, be- 

 cause of the effect the dry weather may have had on the 



cotton crop. 



* * * 



.\ building 121 x 125 feet is soon to be erected in this 

 city by the Mechanical Rubber Co.. at West Division street 

 and Clareniont avenue. It is intended for store and garage 

 purposes and will probably cost in the neighborhood of 

 $50,000. 



THE RUBBER TRADE IN RHODE ISLAND. 



/?_v a Resident Corresfiondent. 



AX involuntary petition in bankruptcy against the Consumers' 

 Rubber Co. was tiled with William P. Cross, Clerk of the 

 United States District Court at Providence, on July 31, 

 signed by the following creditors : R. L. Curtis, receiver of the 

 Atlantic National Bank, Providence; Brown Bros., of Providence, 

 and John J. Kenyon Manufacturing Co.. of Pawtucket. Receiver 

 Curtis claimed that there was due the .-Xtlantic National Bank on 

 money loaned and on promissory notes the sum of $42.68.-'. .■)4, 

 while Brown Bros, declared they held a hill for $4.30 and Jcihn 

 J. Kenyon Mfg. Co.'s hill was for $57. 



.■\t a meeting of the preferred stockholders of the company, 

 held a few days previous to the institution of bankruptcy pro- 

 ceedings, a report as to the business and tinancial conditions of 

 the concern was presented liy a committee consisting of James 

 W. Freeman, Robert S. Emerson and Percy W. Gardner, pre- 

 viously appointed to make a thorough investigation in the in- 

 terests of the stockholders. 



.•\ statement contained in this report would seem to indicate 

 that the committee was of the opinion that the firm's plant was 



shut down and the business discontinued to comply with the 

 wishes of Receiver R. L. Curtis, of the Atlantic National Bank. 

 So far as the records and correspondence appear, other creditors 

 or stockholders were not consulted in this action. This con- 

 clusion is arrived at after the committee in its report goes into 

 the details of the Consumers' company's business before and 

 after it was taken in hand by the Walpolc Rubber Co. 



The committee makes fifteen different statements in its report, 

 the first of which is as follows: "From May 1, 1912, to January 

 1, 1913, the books of the Consumers' Rubber Co., show that they 

 made a profit of $30,067.15. Between January 1, 1913 and July 

 14, 1913, the books of the company show that they lost $82,774.36." 

 The report then goes on to show that a substantial loss was 

 made in the wire department, amounting to $10,486.72. The wire 

 mill was e(|uipped so that all sizes of wire from No. 20 to 

 800.000 circular mill cable could be manufactured, but during the 

 past year changes were made in that department so that only 

 No. 19 wire could be manufactured. 



The report shows "other substantial losses." and gives a table 

 in which these are shown. According to this table the largest 

 of these "losses'" were : $40,863.44, which was met with in the sale 

 of arctics and gum shoes to S. B. Thing & Co.. of Boston ; 

 $4,152.56 to E. G. Stearns & Co., credit to equal prices to S. B. 

 Thing & Co. ; $3,824.38, tennis shoes sold to S. B. Thing & Co. : 

 $1,378.16, arctics and tennis shoes sold to S. Rosenberg. .Another 

 loss was an "extra allowance to get cash" from .\. J. Bates & Co., 

 amounting to $700. 



The report states "the outstanding accounts payable are ap- 

 proximately $33,020.71 and the outstanding notes payable are 

 $<S3,079.61. Tliese include notes to the amount of $15,000 which 

 represent money borrowed by the Consumers' Rubber Co. from 

 the Traders' National Bank of Lowell. Massachusetts, and the 

 .\tlantic National Bank of Providence, in November, 1912, for 

 the purpose of paying off a $15,000 mortgage." 



The report shows a mass of figures, among which are the 

 following : .-Xmounts receivable, according to the company's 

 hooks, $30,292.30: inventory of raw materials, manufactured 

 goods and merchandise in process of manufacture, as of July 12, 

 1913, $60,877.12. 



The committee then makes some very interesting statements. 

 "The real estate and machinery," says the report, "stands on the 

 books of the company at $164,242.03. It would be difficult to 

 sell the same for $25,000. Trade-marks, good will and patents 

 stands on the books at $360,462.27. Your committee believes that 

 this item of assets has no value." 



The report then says that the books of the Consumers' Rubber 

 Co. show that the concern is indebted to the Walpole Co. in the 

 amount of $9,575.75 but in the opinion of the committee this 

 indebtedness should be reduced by $4,700. The committee states 

 that the records of the Superior Court show that the Walpole 

 Co. received $1.50,000 worth of common stock of the new Con- 

 sumers' Rubber Co. and that a consideration of this was that the 

 Walpole company should pay a sufficient amount of money to 

 cover the claims of the creditors of the Consumers' Rubber Co., 

 incorporated in 1905. The amount paid was $4,700 and it was 

 paid to Robert S. Emer.son. receiver. "But," says the committee, 

 "the Walpole Rubber Co. has charged this item to the Consumers' 

 Rubber Co.'s account, thereby reimbursing themselves." 



The committee declared that the mill was closed, goods sold 

 at a sacrifice and other important matters done without con- 

 .sultation with the stockholders. Tlien comes the reference to 

 Receiver Curtis and finally the recommendation that the concern 

 be liquidated in bankruptcy. 



The referee in bankruptcy appointed Robert S. Emerson, an 

 • attorney, as temporary receiver and John P. Williams of Provi- 

 dence, James S. I-'ranklin of Bristol and C. W. Littlefield of 

 Warwick as appraisers. Notice was also given that J. H. Lane 

 & Co. of Providence had filed an attachment of $2,500 against 

 the Consumers' Rulibcr Co. at Bristol. 



