294 



THE INDIA RUBBER WORLD 



[July i, 1901. 



REPORT OF A GERMAN RUBBER COMPANY. 



IT may be of interest to members of the trade elsewhere to 

 look over the details of the annual report made to the 

 shareholders in a leading rubber manufacturing joint stock 

 company in Germany. The one selected for this purpose is 

 the Continental-Caoutchouc- und Guttapercha-Compagnie, of 

 Hanover, the figures applying to the business year 1900.* The 

 balance sheet as printed is prefaced by a general statement of 

 the conditions affecting the industry in general and the busi- 

 ness of the company in particular, and explanations of various 

 entries in the balance sheet. 



The average price of rubber, the report says, was higher than 

 in the year preceding, though the advance was less marked. 

 But it declined toward the end of the year to what might be 

 designated as a normal level. The latter fact is ascribed to the 

 bringing to market of unusually large quantities of rubber, at- 

 tracted by the very high prices which for a while prevailed. 

 Care must be taken, in view of the fluctuating market, in try- 

 ing to avoid high prices, not to permit stocks to become too 

 small, while on the other hand, in view of the possibility of 

 lower prices, too large purchases must not be made at once. The 

 other materials required were also higher during the year, par- 

 ticularly coal and fabrics, though solvents and chemicals were 

 bought at practically former prices. To offset these conditions, 

 it was not possible to advance the prices of manufactured goods 

 except to a slight degree. The company's sales amounted to 

 1,500,000 marks more than in the preceding year, with a pro- 

 portionate increase in the expense of manufacture. This in- 

 crease in sales was in spite of the depression in the cycle in- 

 dustry, in supplying which the company is largely interested. 



The hope is expresssed that the new commercial treaties to 

 be made by Germany will be on the same basis as now exists. 

 It would be most desirable if all customs duties in the various 

 countries were for a fixed term of years, for then preparations 

 for export trade could be planned with more certainty as to 

 results. An early cessation of the war in South Africa and the 

 troubles in China is hoped for, since both countries promise to 

 become good fields for the sale of rubber goods. 



While the factory capacity on the whole has been sufficient, 

 new buildings and machinery are needed, and other expenses 

 are in prospect, to cover which, and to provide larger working 

 capital, the directors ask for an increase in capital stock of 

 600,000 marks. The price agreement on rubber balls was main- 

 tained during the year. The amount paid on patent account 

 was 53,900 marks — partly on installments due on a ball-making 

 patent mentioned in last year's report, and partly for acquiring 

 a patent for tiring wheels, from which much is expected. The 

 dividends on shares of the Austrian-American Rubber Co. 

 (Vienna) and the Liitticher Co. amounted to 9177 marks. The 

 bills receivable are less than in several previous reports, owing 

 to the more prompt payment of accounts. The bills payable 

 are also less, owing to the smaller amounts of raw material, 

 stock in process of manufacture, and finished goods on hand 

 at the close of the year. 



In accordance with the requirements of the law the material 

 on hand has been inventoried at the lowest market rates, at 

 which it figures, all told, at 2,275,555 marks. But in view of 

 the fluctuating tendency of the markets, it has been deemed 

 proper to continue the amount of the reserve — 500,000 marks — 

 set apart last year to cover any possible shrinkage in value. A 



furiher reserve of 300,000 marks is also continue'd from last 

 year, to cover any possible loss on the book accounts due the 

 company. The goods in outside warehouses amount to more 

 this year, because several new branches have been opened. 



The directors point with satisfaction to the balance sheet, a 

 translation of which appears herewith. In addition to the 

 usual writing off for depreciation, 100,000 marks extra are writ- 

 ten off the factory utensils account, in respect to a quantity of 

 molds which are no longer of any value. Repairs to the extent 

 of 139,053 were made during the year. 



There were added to the funds for the benefit of the em- 

 ployes, 25,000 marks, and to the officers' pension fund 10,000 

 marks. For the employes' benefit was expended, as required 

 by law, 12,185 marks for the sick benefit fund, and 10,998 marks 

 for invalid and old age pensions. Voluntary expenditures were 

 17,295 marks for premiums on life insurance policies, deposits 

 in savings banks, aid in sickness, advances in rent, etc. The 

 directors asked for an appropriation of 45,000 marks for further 

 expenditure for the benefit of the work people. A vacation of 

 eight days, with full pay, was granted to employes who had 

 worked for ten years or more, including 187 persons. 



The company makes all purchases for cash. The dividend 

 declared on the year's business was 45 per cent, on the share 

 capital, which would be 1,080,000 marks, leaving a comfortable 

 surplus to be carried forward. 



• Last year was published in this journal [October i — page 9] the balance sheet 

 of another German factory— the Vereinigtc Gummiwaaren-Fabriken Harburg- 

 Wien. — The Editor. 



DEBITS. 



Real Estate Account M 714,192.68 



Building Account 1.159,875.23 



Standing December 31, 1900 1,195,747.66 



Written off 3 per cent 35.872.43 



Machinery Account 670,274.38 



Standing December 31, 1900 744,74931 



Written oJT, 10 per cent 74.474.93 



Factory Utensils Account 171,023.06 



Standing December 31, 1900 338,778.82 



Written off, 20 per cent 67.755.76 



Written off, extra 100,000. 167,755.76 



Outside Warehouses Account 158,794.14 



Bills of Exchange Account 879,421.76 



Cash Account 33,209.22 



Commercial Paper Account 208,428.40 



Insurance Account 12,066.70 



Premiums paid in advance. 



Coal Account 13,392.30 



Material and Manufactured Goods Accounts i>775,775.23 



Raw Rubber 1,176,28438 



Materials. 484,093.74 



Finished Gocds ;... 487.356.30 



Untiiii^hed Goods 128,040.812,275,775.23 



Less reserve for depreciation.. 500,000. 



Accounts Current Account 2,314,159.17 



Debts on open account 2,473,117.07 



Interest bearing deposits in Banks. 141,042 102,614,159.17 

 Less reserve for depreciation.. 300,000. 



Total M 8,110,612.27 



CREDITS. 



Share Capital Account J/ 2,400,000. 



Reserve Fund Account ., 2,025,000. 



Special Reserve Fund Account 115,000. 



Second Special Reserve Bund Account 143,450. 



Security Account 200,000. 



Funds Available for the Benefit of Workmen 237,305.93 



Standing December 31, 1899 234,541.33 



Interest for 190.^, 5 per cent . 11,636.59246,177.92 



Disbursed in 1900 8,87199 



Employes' Jubilee Fund 72,660.70 



Standing December 31, 1899 61,983.35 



Interest for 1900, 5 per cent 3,420.60 65,40395 



Disbursed in igoo — . 2,74325 



62,660 70 

 Received privately from Board of Control. . . 10,000. 



Officers' Pension Fund Account 76,828,78 



Standing December 31, 1899 76,64o»73 



Interest for i';oo, 5 per cent 3,768.84 80.409 57 



Disbursed in igoo 3,580.79 



Share Capital Expense Account 114,827, 



Taxes, Stamps, etc. 



Accounts Current Account 1,225,582.37 



Creditors. 



Profit and Loss Account 1,499,957.49 



Net profit for 1900. 



Total M 8,110,612.27 



