>J0VEMBER 1, 1912.] 



THE INDIA RUBBER WORLD 



121 



THE INTERCONTINENTAL RUBBER CO. 



TPIIE annual report of the Intercontinental Rubber Co., issued 

 •*■ under date of October 7, and covering the year ending July 

 31, 1912, shows the effect of the unsettled condition of affairs 

 in Me.xico — which is the chief field of this company's operation. 

 There was a decrease of over one and a half million dollars — 

 both in the gross and net profits of the company from the pre- 

 vious year, but owing to the smaller amount needed for divi- 

 dends — no dividends on the common having been paid during 

 the year covered by the report — the surplus account stands 

 nearly $400,000 higher than a year ago. A comparison of the 

 chief items in the report for the two years 1911 and 1912 is 

 here given : 



1912. 1911. Increase. 



Gross profits $1,190,095 2,714,255*1,524,160 



Expenses 81,136 73,737 7,399 



Net profit 1,108.859 2.640,418*1,531,559 



Dividends 87,500 1,299,490*1,211,990 



Pr. and loss surplus 2,110,940 1,734,249 376,691 



*Decrease. 



The complete report of the company is as follows: 



INTERCONTIXENT.M. RUBBER CO. 

 15 Exchange Place, Jersey City, New Jersey. 



The directors submit herewith the balance sheet and state- 

 ment of profits for the fiscal year ending July 31, 1912. These 

 statements have been prepared and certified to by Messrs. Suf- 

 fcrn &- Son, certilied public accountants of New York City. 

 The year has been marked by a series of interruptions to op- 

 erations caused by revolutionary disturbances, which conditions, 

 we regret to state, still exist, offering serious difficulty to the 

 free transaction of business in Mexico. The net operating profits 

 for the year amounted to $1,108,959.34. Sundry accounts repre- 

 senting investments in certain subsidiarj- companies, as well as 

 e.xpenses of guayule culture and world-wide explorations to the 

 amount of $644,768.51, have been charged off, as same are not 

 considered of tangible value at the present time. Notwithstand- 

 ing these charges and regular dividends on the preferred stock, 

 the surplus account has been increased over the previous year 

 by the amount of $376,690,83. 



The competition for guayule shrub has been unusually active 

 and prices have ruled correspondingly high. This has been due 

 in part to revolutions, but to greater extent to the decreased 

 supply. It has been definitely determined that this shrub re- 

 produces itself naturally, but not as rapidly as it has been har- 

 vested since the inception of the guayule rubber industry. It 

 will therefore be necessary to regulate the consumption to the 

 rate of regrowth in order to maintain the business on a perma- 

 nent basis. Experiments are being conducted looking toward 

 the artificial cultivation of guayule, but these have not pro- 

 gressed far enough to warrant a definite prediction as to the 

 ultimate outcome. 



While the company's earnings show a considerable decrease 

 over last year, they were still largely in excess of requirements 

 for interest on the preferred stock. The directors feel, however, 

 that consideration of dividends on the common stock should 

 be deferred until the situation in Mexico and the future supply 

 of raw material become more assured. Meanwhile the company 

 remains in a strong financial condition, having cash and quick 

 assets in excess of quick liabilities, of nearly double the amount 

 of outstanding preferred stock. 



By Order of the Board of Directors, 

 W.\LTER DuTTON, Secretary. 



October 7, 1912. 



B.\L.\xcE Sheet — July 31, 1912. 



ASSETS. 

 Investments in Stock of Merged and 

 Subsidiary Companies: 



By cash $ 2,090,321.59 



By stock Issues 28,198,575.30 



$30,288,896.89 



Patents (Exclusive of Subsidiary 



Companies) 15,141.77 



Treasury Stock (Fractional shares 

 resulting from retirement of 



Preferred Stock) 2,500.00 



Accounts and Notes Receivable, 

 etc. : 

 .Advances to Subsidiary Com- 

 panies 1,310,215.32 



Sundry Accounts 13,469.16 



1,323,684.48 



Cash 2,198.054.30 



$33,828,277.44 



LIABILITIES. 



Capital Stock : 



Common $29,031,000.00 



Preferred 1,250,000.00 



$30,281,000.00 



Accounts Payable, Taxes Ac- 

 crued, etc. : 



Due Subsidiary Companies 220.015.56 



Sundrv .Accounts 4,231.14 



224.246.70 



Reserve .Accounts 1,212,090.62 



Surplus (as below) 2,110.940.12 



$33,828,277.44 



SURPLUS ACCOUNT. 



Surplus August 1, 1911 $1,734,249.29 



Gross Profits lor year 1.190.095.41 



Less ; 



Administration .-ind (jeneral 

 Expenses 81,136.07 



Net Profit- for Year 1,108.959.34 



Total $2,843,208.63 



Charges against Surplus: 



*Accounts charged off $644,768.51 



Dividends paid on Preferred 



Stock 87,500.00 



732,268.51 



Surplus July 31. 1912 $2,110,940.12 



*Deferred Accounts Charged Off : 



Balance of cost of Capital Stock of the Cia. Ex- 



plotadora de Hule, S. A $220,400.00 



Payments and Expenses re. Purchase of the Cia. 



Ganadera y Textil de Cedros, S. A 138,561.09 



Explorations in Mexico 1,105.37 



Guayule Culture Expense 1907-1908 39,649 24 



Reduction in Capital Stock on the Rubber Explo- 

 ration Company, representing expenses of ex- 

 ploration '. 145,000.00 



Capital Stock of the Cia. Guayulera Mexicana de 



America 100,000.00 



Note and Open .Account of the above Company.. 52.81 



$644,768.51 



