September 1. 1913.1 



THE INDIA RUBBER WORLD 



637 



THE OUTLOOK FOR THE WALPOLE TIRE AND 

 RUBBER CO. 



^~\ X August 2. on a petition by Mr. Rensselaer L. Curtis, 

 ^^ receiver of the .\tlantic National Bank of Providence, 

 Rhode Island. Judge Dodge of the United States District 

 Court in Boston, appointed Robert G. Fisher temporary 

 receiver for the Walpole Tire and Rubber Co. 



It might be stated at the beginning that it is believed by 

 the receiver, the creditors and stockholders that the Walpole 

 company is entirely solvent, that it has a wide margin of 

 assets over its liabilities, that the receivership will be only 

 temporary and that the company will soon be able to con- 

 tinue its business as successfully as hitherto. 



To give a proper history of the Walpole Tire and Rubber 

 Co. it is necessary to mention its parent, the Massachusetts 

 Chemical Co.. which was established in Walpole. Massa- 

 chusetts, ill 1891 and which for many years did a highly suc- 

 cessful business in the preparation of insulating compounds, 

 impregnating fabrics with these compounds, and the manu- 

 facture of insulating tape. In June, 1910. the Walpole Rub- 

 ber Co. (which name was later changed to the Walpole Tire 

 and Rubber Co.) was formed by the merger of the Massa- 

 chusetts Chemical Co., the Walpole Varnish Works, the 

 Walpole Shoe Supply Co., The Valveless Inner Tube Co., 

 of New York, and the Walpole Rubber Co., Ltd., of Granby, 

 Quebec. The company was capitalized at $3,000,000, divided 

 equally between 7 per cent, cunuilative preferred and common 

 stocks. 



This new company engaged in a wide variety of rubber 

 manufacture, including friction, rubber tapes, varnishes, 

 paints, compounds, druggists' sundries, molded rubber goods, 

 rubber heels, and later, rubber tires. Its business grew at a 

 very satisfactory rate. In the first six months of 1912 its 

 sales aggregated $667,587.65, while for the first six months of 

 the present year the sales aggregated $1,197,194.58, showing 

 an increase over the year before for the same period of 80 

 per cent.; and this business, it is stated on excellent authority, 

 has been done at a very fair profit, amounting during the 

 present year at least to 10 per cent. net. 



It was the ambition of the company to work its tire de- 

 partment up to a position where it would turn out 500 auto- 

 mobile tires a day, but this great increase in its tire business 

 as well as its general business required a big increase in its 

 financing operations, for rubber goods are sold on long-time 

 credit. When, consequently, the .'Vtlantic National Bank of 

 Providence — through which it was accustomed to get its ac- 

 commodations — went into a receiver's hands last April it 

 proved very embarrassing for the W'alpolc company, as it 

 had almost $900,000 locked up in its merchandise inventory 

 which could not be turned into readj- cash without a great 

 sacrifice. 



The company had also been carrying an additional burden 

 in attempting to put the Consumers' Rubber Co. on its feet. 

 This company, located at Bristol, Rhode Island, went into 

 the hands of a receiver in the spring of 1912. Quite a little 

 of its paper was held by the Atlantic Bank, which prevailed 

 upon the Walpole company to assume the management of 

 the Consumers" company — and it was reorganized and started 

 afresh, the Walpole company controlling the bulk of its com- 

 mon stock. But this reorganization was evidently not suc- 

 cessful, as the Consumers' company is said to have been run 

 during the past year at a considerable loss. ."K receiver was 

 appointed for it on August 1, and thereupon, the following 

 day, the receiver of the Atlantic National Bank — to which 

 the Walpole company was indebted, directly and indirectly, 

 through its subsidiary companies, for an amount somew'hat 

 in excess of $100.000 — applied for a receiver for the Walpole 

 company. 



The receiver appointed by the court, Mr. Robert G. P'isher, 

 has been acting as treasurer of the Walpole company since 

 its partial reorganization a few weeks ago. He was made 

 receiver on the request of Mr. McAdoo, Secretary of the 

 Treasury. Soon after his appointment a movement was 

 started among certain of the creditors to have an additional 

 receiver named, on the ground that Mr. Fisher's experience 

 had not properly qualified him for this difficult position. The 

 stockholders, in the meantime, were anxious to have an addi- 

 tional receiver appointed so that their interests might be 

 safeguarded. The largest stockholders, with the amount of 

 their holdings, are given as follows. 



Otis N. Pierce, New Bedford $66,000 



E. Draper Blair 30.000 



Clair Draper, Hopedale, Massachusetts 24,000 



Montgomery Clair, Washington 20,000 



S. P. Chandler, Nashua, New Hampshire 15,800 



W. J. Fallon, Roxhury, Massachusetts 15,000 



The largest merchandise creditors on notes are: 



Edward Maurer, New York $92,226 



Endurance Tire and Rubber Co., New York 30,000 



Charles T. Wilson. New York 27,980 



Rol)inson & Co., New York 20.338 



Heidelbach & Ickelheimer, New York 17,986 



L. Littlejohn & Co., New York 16,364 



.■\damson Machine Co., Akron, Ohio 15,500 



The capitalization of the company, which, at the time it 

 was formed in 1910, consisted of $1,500,000 each of preferred 

 and common stock, was later increased to $4,500,000, $3,000,- 

 000 preferred and $1,500,000 common, the actual outstanding 

 stock at the present time being $1,903,900 preferred and the 

 full amount of common. From the time of its organization, 

 three years ago, until last spring, the company paid 7 per 

 cent, dividends on its preferred stock and 4 per cent on its 

 common. 



The coinpany's assets and liabilities as of June 30 are set 

 forth in a statement submitted to the court in connection 

 with this petition. The figures which are given below indi- 

 cate the essentially sound condition of the company's 

 position. 



ASSETS. 



Plant $1,230,815 



Patents, goodwill, etc 1,312.419 



Stock other companies 20.450 



Treasury preferred stock 103.000 



Cash 23.860 



Trade 197.805 



Sub. and coup, notes 15.944 



Other accounts receivable 89.954 



Consumers' Rubber Co 27.030 



Notes receivable 40.090 



Prepaid accounts 10.678 



Merchant inventory 863,998 



Contingent assets 190,595 



Total $4,126,638 



li.\bil:ties. 



Accounts payable $258,705 



Notes payable 847.800 ;" 



Contingent liabilities 190.595 



Accrued taxes 3.600 



Accrued payroll 9,609 



Reserves: 



L. O. Duclos com 3,000 



Disc, and doubtful accounts 30.534 



Doubtful notes received 9.514 



$1,353,357 



Balance of assets $2,773,281 



