June i, 1910.] 



THE INDIA RUBBER WORLD 



317 



On January 5, 1910, Mr. Elisha S. Williams was elected to the 

 office and assumed the duties of president of the Rubber Goods 

 Manufacturing Co. 



ISSUE OF CAPITAL STOCK AND BONDS. 



To finance the acquisition of this stock of the Revere Rubber 

 Co. and outstanding shares of the Canadian Consolidated Rub- 

 ber Co., Limited, as well as to provide additional working capi- 

 tal needed for the growing business of the United States Rubber 

 Co., the most available resources were the unissued 35,614 shares 

 of First Preferred stock and $5,000,000 6 per cent, bonds of this 

 company. The syndicate which was formed, comprising your 

 president and some of the directors, undertook to purchase at 

 $110 a share all of the preferred stock which should be offered 

 to stockholders and not taken by them at that price, to purchase 

 outright at par $2,500,000 bonds, and, at the option of the com- 

 pany at any time before December 20, 1910, to purchase at par 

 the other $2,500,000 bonds, in the meantime lending thereon the 

 full amount thereof at 6 per cent, interest, the terms being more 

 fully stated in the circulars of December 23, 1909, and Decem- 

 ber 29, 1909, which were issued to every stockholder. 



In addition the syndicate was to receive the net profits of the 

 Revere Rubber Co. until December 31, 1911, but any excess 

 above $700,000 was to be divided between the syndicate and the 

 United States Rubber Co. In this way the company was to 

 receive about $9,000,000 cash, in consideration of the issue of its 

 stock and bonds at a price in the aggregate exceeding any ever 

 received by it therefor, and also the profits, after December 31, 

 191 1, of the Revere Rubber Co., which, if yielding the stated 

 profit to the syndicate, would demonstrate the very great value 

 of its acquisition by the United States Rubber Co. 



Upon the offer of December, 1909, the stockholders took 27,- 

 997 shares of First Preferred stock and the syndicate took the 

 remaining 7,617 shares at no. It also took $2,500,000 bonds at 

 par and loaned the company $2,500,000 on the remaining bonds, 

 which it must take at par at the option of the company. Thus 

 there was provided about $9,000,000, of which $4,000,000 were 

 used for the purchase of stock of the Revere Rubber Co., $1,000,- 

 000 were used for purchase of stock of the Canadian Consoli- 

 dated Rubber Co., and about $4,000,000 cash was added to the 

 working capital of the company. Information as to these mat- 

 ters and opportunity to examine the contract with the syndicate 

 were offered to stockholders in the circular of December 23, 

 1909, and are now open to stockholders upon application at the 

 office of the company, No. 42 Broadway, New York. The en- 

 tire transaction will be submitted to the stockholders for 

 approval at the annual meeting. 



ADDITIONAL DIRECTORS. 



In connection with the acquiring of a larger interest in the 

 Canadian Consolidated Rubber Co., Limited, the president of 

 that company, Mr. D. Lome McGibbon, was on March 3, 1910, 

 elected a director of the United States Rubber Co., which elec- 

 tion brought a most valuable addition to the board. 



On March 3, 1910, the directors also voted (there being no 

 other vacancy upon the board) to recommend to the stockhold- 

 ers at the approaching annual meeting the election of Mr. Elisha 

 S. Williams, president of the Rubber Goods Manufacturing Co., 

 as a director of the United States Rubber Co. 



COMMON STOCK DIVIDENDS. 



The earnings of the company the past year, considered by 

 themselves, would seem to warrant some division to the com- 

 mon stockholders, and, were it not for the abnormally high 

 price of crude rubber existing, and the consequent requirement 

 of a much larger sum of money to purchase and carry the same, 

 your president would feel warranted in recommending a dividend 

 upon the common stock at the present time. 



CONCLUSIONS. 



All things considered, while there is yet much to do to bring 

 our company to that degree of efficiency in all its departments 

 for which we are striving, your president feels that important 

 progress towards that end has been made during the past year, 

 and that, with the securing of our crude rubber at reasonable 

 prices, the outlook for the growth and prosperity of the com- 

 pany is very gratifying. 



New uses for rubber as an article of manufacture are arising 

 nearly every day. As an illustration, ten years ago rubber tires, 

 that now alone consume one-half of the raw product, were not an 

 important factor in the trade. For this reason, every step of 

 the business, from the gathering of the crude rubber from the 

 Amazon and its tributaries, from Mexico and Africa and from 

 the plantations of the Far East, to the manufacture and sale of 

 the great variety of the finished product, possesses new and ever 

 increasing interest. 



Your president returned at the end of last summer's vacation, 

 with renewed health and vigor. He takes pleasure in acknowl- 

 edging the loyal and efficient services of the officers and em- 

 ployes of the company and its subsidiary companies. Respect- 

 fully submitted, SAMUEL P. COLT, President. 



New Brunswick, New Jersey, May 17, 1910. 



THE ANNUAL ELECTION. 



Three new names appear in the list of directors chosen 

 this year. John J. Watson, Jr., for several years a member 

 of the board and of the executive committee and treasurer of 

 the corporation, tendered his resignation to the directors just 

 prior to the annual meeting. Two other resignations from 

 the board were Messrs. William H. Moore and Francis Lynde 

 Stetson, of New York. The number of directors this year 

 is the same as last — twenty — and the three new names are 

 (1) Elisha S. Williams, who was general manager of the 

 Revere Rubber Co., recently acquired, and is now president 

 of the Rubber Goods Manufacturing Co., and is named as 

 succeeding Mr. Watson; (2) James Deshler, some time 

 secretary of the New Jersey Rubber Shoe Co., later presi- 

 dent of the New Brunswick Rubber Co., and now general 

 manager of the Jersey factory of the United States Rubber 

 Co., and mentioned as the successor to Judge Moore, who 

 retires in view of a projected long visit to Europe; and (3) 

 D. Lome McGibbon, president of the Canadian Consolidated 

 Rubber Co., Limited, already a member of the board, filling 

 a vacancy caused by the retirement of Francis Lynde Stetson 

 as a director, but remaining general counsel of the United 

 States Rubber Co. The board is now composed as follows, the 

 figures indicating the number of successive annual elections of 

 the respective directors : 



Walter S. Ballon, Providence, Rhode Island. [8.] 

 Elias C. Benedict, No. 80 Broadway, New York. [9.] 

 Anthony N. Brady, No. 54 Wall street, New York. [7.] 

 Samuel P. Colt, Bristol, Rhode Island. [19.] 

 Harry E Converse, Boston, Massachusetts. [13.] 

 James Deshler. New Brunswick, New Jersey. [1.] 

 James B. Ford, No. 42 Broadway, New York. [19.] 

 J. Howard Ford. No. 42 Broadway, New York. [19.] 

 Frank S. Hastings. No. 80 Broadway, New York. [6.] 

 Francis L. Hine, No. 2 Wall street, New York. [8.] 

 Henry L. Hotchkiss, New Haven, Connecticut. [19.] 

 Arthur L. Kelley, Providence, Rhode Island. [5.] 

 Lester Leland, Boston, Massachusetts. [12.] 

 D. Lome McGibbon, Montreal, Canada. [1.] 

 Edward R. Rice, No. 42 Broadway, New York. [2.] 

 Homer E. Sawyer, No. 42 Broadway, New York. [5.] 

 Frederick M. Shepard, No. 787 Broadway, -New York. [19.] 

 William H. Truesdale, No. 26 Exchange place, New 

 York. [6.] 

 John D. Vermeule, No. 503 Broadway, New York. [14.] 

 Elisha S. Williams, No. 42 Broadway, New York. [1.] 



