Ai'RiL 1, 1914. 



THE INDIA RUBBER WORLD 



363 



The Report of the United States Rubber Co. 



TilE report issued by Colonel S. P. Colt, president of the 

 United States Rubber Co., date of March 17, 1914, cannot 

 correctly be called an annual report, as for the most part it 

 covers the nine months Iictween April 1 and December 31, 1913, 

 inclusive, the company's liscal year having been changed to the 

 calendar year so that the statements of the main company and 

 its subsidiaries might conform. 



While an exact comparison cannot be made between this re- 

 port and former reports, which cover the full year, it is possible 

 to make a sufficient comparison to show that the company has had 

 a very successful season, its net sales for nine months coming 

 within about $4,000,000 of the sales for the preceding twelve 

 inonihs. The treasurer's report shows cash on hand as nearly 

 $10.0(10,000, as coniiiared with $7,500,000 at the end of last March ; 

 and during the nine months ccivered the value of the plants and 

 properties of the company increased from $105,000,000 to $118,- 

 000,000, through the inclusion of the Canadian plant and the 

 Sumatra plantation. The report in full is given below : 

 'io the Stochluildcrs of the L'NMTEn St.\te.s Rubber Co. : 



.\t the last annual meeting of the stockliolders, the by-laws 

 of the company were amended so as to lix the tliird Tuesday in 

 March as the date for the annual meeting and to make the fiscal 

 year of the company and of all subsidiary companies to conform 

 to the calendar year ending December 31, in order that there 

 might be given to our stockholders a consolidated statement re- 

 lieved from the complication of variations in fiscal years 



This year's financial statement which for the lirst time is such 

 a consolidated statement of the United States Rubber Co. with 

 all of its subsidiaries, covers the period of nine months from 

 April 1 to December 31, 1913. with the additional three months' 

 operations from January 1 to March 31, 1913. in the case of 

 certain .subsidiaries whose fiscal year had previously ended on 

 Decemlier 31. Hereafter the report will cover the operations 

 of all companies for an identical calendar year and thus simplify 

 comparison. 



The treasurer's report, appended hereto, gives the consolidated 

 general balance sheet of the United States Rulilier Co. and all 

 its sulisidiary companies as of December 31, 1913, and the con- 

 solidated income statement of the United States Rubber Co. 

 and all its subsidiary companies for the nine months period from 

 April 1 to December 31, 1913. including three additional months 

 of certain subsidiaries. 



Through the adoption of (■ne uniform fiscal year for the United 

 States Rubber Co. and all of its subsidiaries and through a single 

 consolidated statement from which are eliminated all inter-com- 

 pany debits and credits, our stockholders may easily obtain a 

 clear and concise understanding of the combined assets ami 

 liabilities of the company and the result of its operations. 



It is the desire and intent of the management to give to the 

 stockholders the fullest possilile information concerning the busi- 

 ness of the company, not only annually, but, in due course, 

 .semi-annually and ultimately by quarterly reports. 



FI.\.\NCI.\L POSITION OF TIIIC COMP..\NY. 

 .\s will be seen by the asset and liability report, the company's 

 financial position is strong, the cash on hand being approximately 

 ten million dollars. b'.liminating from the current liabilities 

 those which in the regular course of business would always be 

 outstanding, namely, merchandise accounts payable neither due 

 nor subject to discount for prepayment, acceptances given in 

 connection with the importation of crude rubber and accrued 

 interest, taxes, etc., amounting together to $6,101,379.87, the cash 

 on hand is about fifty per cent, of the remaining current liabilities. 



PL.\NTS .\ND PRIIPIIKTIES. 



■| he increase from about $105,000,000 last year to about $118,- 

 000.000 this year of plants, properties, etc., is occasioned by the 

 inclusion of the Canadian plants and the Sumatra rubber plan- 

 tations, with the enlargement of the Morgan & Wright tire plant 

 at Detroit and some minor construction. 



.\s heretofore stated, it has not been the custom of our com- 

 pany to make specific charges for depreciation of properties, but 

 on the other hand our many plants are maintained in the highest 

 state of efficiency — all repairs and replacements being charged 

 to expense account. 



VOLUME OF BU.SINE.SS. 



The year 1913 was a year of declining prices. Consequently 



the same quantity of manufactured goods would represent a less 

 amount in dollars and cents. The volume of liusiness of the com- 

 pany as a whole was somewhat larger for the nine months of 

 1913 than for the correspc nding period of 1912. Through our 

 "United States Tire Co." there was a substantial increase in 

 tire sales. There v.-as some falling off in volume of sales of foot- 

 wear, due to the mild weather and lack of snow prior to De- 

 cember 31, but some increase in the sales of mechanical goods, 

 both in quantity and value, .\tlention might be called to the 

 fact that what was lacking in "rubber weather" early in the 

 winter has been fully supplied by the snowstorms of Kcbruary 

 and March. The benelit therefrom will appear in the rejiort for 

 the coming year. 



PROFITS. 



b'or the period named, the net profit before deduction of 

 interest charges was $9,677,532.81, after deduction of interest 

 charges $7,140,125.01. The dividends declared during the period 

 on the preferred^ stock and the common stock of the United 

 States Rubber Co. and minority stock of sulisidiarics were 

 $5,328,856.50, leaving for the period a surplus of $1,811,268.51. 

 Of this surplus it is estimated that $764,656.93 was earned in 

 the first three months of the year 1913 by subsidiaries whose 

 fiscal year formerly ended December 31. This being deducted 

 leaves $1,046,611,58 as representing the surplus earnings for 

 nine months from .\pril 1 to December 31, 1913, over dividends 

 declared for the same period. Considering the sharp reduction 

 in the prices of tires, the absence of snow during .Vovember 

 and December, a general declining market for both crude rubber 

 and manufactured goods, and business conditions throughout 

 the country— this statement of earnings may be considered 

 gratifying. 



C.\riT.\LIZ.ATION. 



The common stock of the company is the same as on .March 

 31, 1913. Under the plan of conversion into first preferred 

 stock, the second preferred stock has been reduced $358,400 

 and there is now outstanding but $622,800 of second preferred 

 stock. Under the offering made to our stockholders in Novem- 

 ber last $1,741,000 was added to the first preferred stock and 

 $39,800 was added from time to time in exchange for Rubber 

 Goods preferred stock. 



L'NIFIC.\T10\ (.)F CO.VIl'-WIE.S. 



As indicated by the financial statements, whereby the assets, 

 liabilities and operations of all our companies are brought into 

 a single statement, it is the policy of the company to unify all 

 of its operations, and to this end steps have been taken to con- 

 nect the name "United States Ruliber Co." with the subsidiary 

 companies, so that there may lie no doubt that the United 

 .States Rubber Co. is the responsible head and that its name 

 shall indicate the integrity of its merchandise and evidence the 

 highest business principles. 



Our plants are maintained at the best standard of working 

 capacity. By earnest co-operation in the application of industry, 

 research and scientific principles, we are steadily developing a 

 higher degree of efficiency and successfully solving tlie nian\- 

 comijlex problems inherent in our business. Our development 

 department is assisting in perfecting the quality of our pro- 

 duction and the standardization of our plants, equipment and 

 methods. The growing cheapness of crude niliber is opening new 

 and promising fields of investigation and exploitation. The 

 crude rubber from our plantations in Sumatra, of which so far 

 we have received samples, will be arriving in some quantity 

 before the end of this year; and, as more trees come into 

 bearing and all increase in age, the quantity will rapidly increase 

 from year to year. Under normal business conditions, these 

 facts constitute a most promising outlook for the future of our 

 company. 



CONXLUSION. 



Your president desires again to express his appreciation of 

 the continued fidelity and ability shown by the officers, heads of 

 departments and cmiiloyes of the company and its subsidiaries. 

 With our profit sharing plan in force and other efforts put forth 

 by our board of directors and executive committee to further 

 the interests of all in the service of the company, the loyalty, 

 devotion and co-operation of all employes were never greater 

 than today. 



During the year we have lost by death two of the most useful 

 and prominent members of the board — Mr. Frederick M. 

 Shepard. a director from the organization of the company and 

 at one time its president, and Mr. .\nthony N. Brady, who. 



