316 



THE INDIA RUBBER WORLD 



[June i, 1910. 



Brazil the supply of crude rubber needed by the company, 

 which we confidently expect will result in our obtaining in the 

 not distant future from our own rubber properties a substantial 

 portion of our requirements. 



CANADIAN CONSOLIDATED RUBBER CO., LIMITED. 



Some time since, the United States Rubber Co. purchased, 

 through Mr. D. Lome McGibbon, an interest in the Canadian 

 Consolidated Rubber Co., Limited, which company manufactures 

 about the same proportion of rubber goods consumed in Canada 

 that the United States Rubber Co. and its subsidiary companies 

 do in the United States. The result of two years' operations of 

 the Canadian companies was such that your directors recently 

 felt it desirable to increase our interest in the Canadian com- 

 pany. This has been done to such extent that we now own a 

 very large proportion of the stock of the Canadian Consolidated 

 Rubber Co., Limited. 



We have recently acquired through that company a large 

 interest in the "felt" business of Canada — a business kindred to 

 the rubber business, and which, owing to the more severe climate 

 of Canada, is of greater relative importance there than in the 

 United States. 



ta REVERE RUBBER CO. 



The death of Mr. Charles H. Dale, president of the Rubber 

 Goods Manufacturing Co., left that company without a practical 

 rubber manufacturer at its head. It was most difficult to obtain 

 the services of a skilled successor fitted for the conduct of this 

 extremely important branch of our business, which embraces 

 not only the item of automobile tires but substantially all lines 

 of rubber goods other than footwear. Your president was con- 



vinced that no need was more urgent than that of securing a 

 skilled manufacturer, as competent as could be found, for the 

 presidency of the Rubber Goods company. 



Finally, in December, 1909, negotiations were opened with the 

 general manager of the Revere Rubber Co., Mr. Elisha S. Wil- 

 liams. That company, with a capital stock of $2,000,000, under 

 his management had been developing for several years a large 

 and successful business in the manufacture of tires, rubber 

 thread, and mechanical rubber goods. Its annual output had 

 reached $6,000,000, and its capital stock (par $100) was selling 

 at $200 a share. Mr. Williams indicated a willingness to accept 

 the presidency of the Rubber Goods company, but only on con- 

 dition that simultaneously his shareholders should receive an 

 offer for all their shares in the Revere Rubber company at the 

 stated market price. Prompt action was required and prompt 

 provision of funds was necessary for such an offer. In its 

 entirety the capital stock of the Revere Rubber company would 

 be worth the market price, and more, to the United States Rub- 

 ber Co., especially if its acquisition would procure the valuable 

 assistance of Mr. Williams. Therefore, your president, together 

 with some of the directors, decided that the purchase should be 

 made and should be offered to the United States Rubber Co. 

 upon their guaranty of a sufficient financial provision, if it should 

 decide to accept the same upon the terms offered by them. 



On December 10, 1909, your president made a preliminary 

 contract with Mr. Williams which, upon December 17, was 

 offered to and was accepted and adopted by your board of 

 directors, and on or before December 24, substantially all of the 

 Revere Rubber Co. stock had been acquired by or for the 

 United States Rubber Co. 



TREASURER'S REPORT. 



UNITED STATES RUBBER CO. AND SUBSIDIARY COMPANIES. 



[Not including Assets or Liabilities of Rubber Goods Manufacturing Co. 

 and certain other Companies owned in part by United States Rubber Co.] 



Consolidated General Balance Sheet, March 31, 1910. 



ASSETS. 



Property and plants (including shares of R. G. M. 

 Co., Canadian Consolidated Rubber Co., Ltd., 



and Revere Rubber Co.) $82,068,768.84 



Inventories, manufactured goods 



and materials $16,016,985.86 



Cash 3.599.555.96 



Bills and loans receivable 2,136,417.42 



Accounts receivable 11,080,361.84 



Stock owned in General Rubber Co. 2,000,000.00 

 Securities, including stock nf United 

 States Rubber Co. held by a sub- 

 sidiary company 2,991,473.15 



Miscellaneous assets 138,366.40 37,963,160.63 



Total assets $120,931,929.47 



liabilities. 



Capital stock, first preferred $40,000,000.00 



Capital stock, second preferred.... 10,000,000.00 



Capital stock, common 25,000,000.00 



Ten-year 6% collateral trust sinking 



fund gold bonds* $19,500,000.00 



Less bonds unsold 2,500,000.00 



Advance on $2,500,000 of said bonds $2,500,000.00 



Loans and notes payable 4.947.077.55 



Merchandise accounts payable 710,256.53 



Accrued interest, taxes, etc 422,480.24 



Due General Rubber .Co 2,830,425.09 



Reserve for federal excise tax, if upheld 



Reserve for doubtful accounts 



Reserve for contingencies 



Reserve for dividend 



Fixed surplus (subsidiary companies) 



Surplus 



$75,000,000.00 



17,000,000.00 



11,410.239.41 



37,243-39 



100,000.00 



500,000.00 



950,000.00 



8,134,849.37 



7,799.597-30 



Total liabilities $120,931,929.47 



The contingent liability for certain guarantees, which are offset by 

 corresponding contingent assets, is not included. 



*$5oo,ooo.oo of the original issue of $20,000,000.00 bonds have been 

 canceled under sinking fund provision. 



Consolidated Income Statement for Year Ending March 



31, 1910. 



Gross sales, boots and shoes and miscellaneous. . $56,305,017.00 



Net sales, boots and shoes and miscellaneous... $38,711,051.43 



Cost of goods sold 29,884,457-3 I 



Manufacturing profits $8,826,594.12 



Freight, taxes, insurance, general and selling 



expenses 1,831,722.40 



Operating profits $6,994,871.72 



Other income (net), including dividends received 

 on stock of certain other companies owned by 



United States Rubber Co 1,024,950.31 



Total income $8,019,822.03 



Less: 



fnterest on borrowed money $394,977.41 



Interest allowed customers for pre- 

 payments 447,266.83 842,244.24 



Net income $7,177,577-79 



Deductions for bad debts, etc 53,497-97 



Profits $7,124,079.82 



Coupons and interest paid on Ten-Year 6% gold 



bonds 988,916.67 



$6,135,16315 



Reserve for doubtful accounts $100,000.00 



Reserve for contingencies 500,000.00 600,000.00 



Net profits $5,535,i63-i5 



Dividends 3,574,205.00 



Surplus for period $1,960,958.15 



Surplus April 1, 1909 5.838,639.15 



Surplus March 31, 1910 $7,799,597-3° 



JOHN J. WATSON, Jr., Treasurer. 

 * * * 



The certificate of audit of the company's accounts is signed by 

 Haskins & Sells, certified accountants. 



