May 1, 1921 



THE INDIA RUBBER WORLD 



591 



News of the American Rubber Industry 



GOODYEAR'S FINANCIAL PLAN COMPLETED 



'T'HE FINAL STEP ill restoring The Goodyear Tire & Rubber 

 ■^ Co. to a sound financial position with a readjusted man- 

 agement under the direction of three voting trustees, was taken 

 April 21, 1921, when a group of bankers offered $30,000,000 of 

 the company's first mortgage 20-year 8 per cent sinking fund 

 gold bonds at 99 and interest. Provision is made for the retire- 

 ment by lot on each of the semi-annual interest dates of $750,000 

 of the bonds. 



Another banking group will underwrite an issue of $27,500,000 

 of its lO-year 8 per cent debentures, which are to be offered 

 to its stockholders for subscription. Under the recapitalization 

 the $65,000,000 of the company's old preferred stock remains 

 unaffected. There are authorized $40,000,000 of its prior prefer- 

 ences, of which about $30,000,000 has been taken by merchandise 

 creditors. There will be outstanding about 900,000 shares of 

 its common stock of no par value carried on the books at 

 $1,000,000. Giving effect to the new financing, the company will 

 have as of May 1 total resources of $177,000,OtX); total property 

 value, less $11,0(X3.000 depreciation, amounting to $54,000,000; 

 current assets, $72,700,000, of which $11,000,000 is cash; total 

 current liabilities, $9,600,000, and working capital in excess of 

 $63,000,000. Reserves of $14,000,000 are set up and all inventories 

 of raw materials as well as all contracts have been written down 

 to the present market. In addition, a total of $43,000,000 has 

 been provided for adjustment of inventories and raw materials not 

 delivered. 



During the life of the 20-year first mortgage bonds above 

 referred to, control of the management of the company through 

 the right to elect the majority of the board of directors will be 

 vested in Messrs. Clarence Dillon, of Dillon, Read & Co. ; John 

 Sherwin, chairman of the board of the Union Trust Co. of 

 Cleveland, and Owen D. Young, vice-president of the General 

 Electric Co., or their successors, either through management 

 slock or a voting trust. 



The problem of readjusting the management will be undertaken 

 at once. Its solution will include, according to general under- 

 standing, the withdrawal of Frank A. Seiberling, the president, 

 from active participation in the management. 



To consummate this recapitalization took months of effort, more 

 than 100.000 individual consents being required before it could be 

 done. Consents were given by holders of $65,000,000 of the com- 

 pany's preferred stock, $60,000,000 of its common stock and of 

 $85,000,000 of its debt, including contracts and contingent lia- 

 bilities. 



show satisfactory earnings. In accordance with the provisions of 

 the charter, 11,880 shares of the preferred stock were retired. 



GOODRICH ANNUAL MEETING 



At the annual meeting of the stockholders of The B. F. Good- 

 rich Co., held April 20, B. G. Work, Waddill Catchings, H. K. 

 Raymond and W. O. Rutherford were reelected to the board of 

 directors. A. A. Tilney, vice-president of the Bankers Trust Co. 

 and Harold Stanley, vice-president of the Guaranty Trust Co., 

 were elected directors in the places of A. H. Marks and .A. B. 

 Jones, whose terms expired and who both resigned. All officers 

 were reelected at the directors' meeting, with the e-xception of 

 H. E. Raymond, vice-chairman of the board, who, due to retire- 

 ment from all active business, resigned. C. B. Raymond, former 

 vice-president, was elected vice-ch:»irman of the Board. 



Under existing conditions th" directors did not deem it wise 

 to declare at this time the dividend on the common stock usually 

 paid May 15. The company is. however, in a strong position and 

 with the resumption of a normal business may lie expected to 



ANNUAL REPORT OF THE INTERCONTINENTAL RUBBEJl CO. 



The following report of the Intercontinental Rubber Co, 

 15 E.xchange Place, Jersey City, New Jersey, covers the fiscal 

 year ended December 31. 1920 : 



CONDENSED BALANCE SHEET— DECEMBER 31, 1920 

 Assets 

 Investments in merged and subsidiary companies: 



^y cash $4,478,944.09 



By stock issues 28.198,575.30 $32,677,519.39 



Patents (exclusive of subsidiary companies).. 15,141.77 



Accounts and notes rtTeivaLle, etc. : 



.-\dvances to subsidiary companies $361,097.25 



Sundry accounts 75,936.30 437,033.55 



.\dvances on rubber 148,298.48 



Investment securities I,014io30!50 



^^sh 5,219.63 



$34,297,243.32 



Liabilities 



Capital stock: common $29,031,000.00 



Bills and accounts payable, taxes accrued, etc... 219,707.39 



Reserve accounts 564*321 21 



.Surplus (as below) 4,482i214!72 



$34,297,243.32 



Surplus Account 



Surplus December 3!. 1919 $4,446,079.57 



Total profits and income from investments, 



, etc $201,666.40 



Less: 

 Administration, general expenses and 



'axes 67,498.42 



... 134,167.98 



Depreciation in market value of securi- 

 ties at December 31, 1920 71,837.25 62,330.73 



r-, . , , $4,508,410.30 



Cnarges against surplus: 



Cost of caring for Mexican properties 



(shut-down expenses) and experimental 



expenses 1920 26,195.58 



.Surrliis December .^1. 1920 $4 482 214.73 



Important experimental and preliminary development work 

 has been continued on the company's Arizona guayule plan- 

 tation, and further work is being undertaken tliis year in 

 California. 



Operations at Torreon, Mexico, were resumed December 

 IS, 1919, but revolutionary activity, fuel shortage and other 

 hindrances forced the suspension of operations. During the 

 campaign 2,004,062 pounds of dry rubber were produced. 

 Pending the bearing stage of the Sumatra plantation where 

 planting began in the spring of 1918 and which is now com- 

 prised of approximately 3,300 acres of young trees, a portion 

 of the company's surplus resources has been employed in 

 purchasing rubber and establishing or expanding trade re- 

 lations with consumers. 



FINANCIAL NOTES 



The Federal Rubber Co., Cudahy, Wisconsin, reports net loss 

 for 1920 of $20,737 after charges and taxes. A deficit of $719,490 

 is reported after deducting cost of selling additional preferred 

 stock. For 1919 the company showed surplus of $725,440. Net 

 sales amounted to $13,911,990 as compared with $13,964,580 for 

 1919 when the surplus for the year amounted to $725,440, 



The Rubber Corporation of America, 240 West S5th street, 

 Xew York, N. Y., had filed against it an involuntary petition in 

 bankruptcy on .^pril 14, 1921, in the United States District Court, 

 by three creditors whose claims aggregated approximately $146,- 



