510 



THE INDIA RUBBER WORLD 



Apiul 1, 1921 



History of The Goodyear Company 



THE GooDVEAR TiRE & RuBBER Co. was incorporated in Aug- 

 ust, 1898, under the laws of Ohio, with $100,000 capital, 

 to make and sell rubber goods. The incorporators were : 

 David E. Hill, president; George R. Hill, vice-president; Henry 

 B. Manton, treasurer ; Frank A. Seiberling, general manager ; 

 Samuel S. Miller, superintendent. Mr. Seiberling had been sec- 

 retary of The India Rubber Co., of Akron, since its organization, 

 and Mr. Miller had been superintendent of the same company. 



The plant of the Akron Woolen & Felt Co., affording 50,000 

 square feet of floor space, was purchased and equipped, and 

 with an operating force of about 100 a beginning was made m 

 the manufacture of bicycle tires and solid and cushion carriage 

 tires which were sold direct to the carriage trade. The first 

 year's gross business was $527,080, the factory being operated 

 night and day in 1899 to turn out 4,000 bicycle and two tons of 

 vehicle tires daily. Plant facilities were accordingly enlarged and 

 the capital stock twice increased. 



In 1904 the company foun '. itself in financial difficulties, and 

 as part of the plan of reorganization, the capital stock was changed 

 from $1,000,000 common, of which only half had been issued, to 

 $500,000 common— of which about $150,000 was surrendered in the 

 final stttlement, and $500,000 six per cent cumulative preferred. 

 There were also issued $300,000 in first mortgage 10-j'ear six per 

 cent bonds, against which it was stated the company had assets 



bonds, the company having the right to redeem these securities at 

 any time. The company's entire note indebtedness was taken up 

 with $245,500 in bonds. 



Following the reorganization the directorate was as follows: 

 L. C. Miles, president ; Charles Dick, vice-president ; Charles W. 

 Seiberling, secretary; H. B. Manton, treasurer; F. A. Seiberling, 

 general manager; A. W. Firestone and F. G. Carnahan. Four 

 years later the directorate was as follows : F. A. Seiberling, pres- 

 ident and general manager; Charles W. Seiberling, vice-president; 

 G.' M. Stadelman, secretary ; Frank H. Adams, treasurer ; Paul 

 W. Litchfield, superintendent ; James P. Loomis and Henry B. 

 Manton. With few changes other than the promotion of men long 

 in the company's service this management has continued up to 

 the present time. In 1915 Paul W. Litchfield was elected vice- 

 president in charge of production ; G. M. Stadelman, vice-president 

 in charge of sales; and A. F. Osterloh, secretary. In 1917 W. EL 

 Palmer was elected treasurer, but was succeeded at the end of 

 1920 by T. Jackson, representing the new banking interests. 



.After the reorganization in 1904, frequent increases were made 

 in the capital stock to finance plant extensions, increasing raw 

 material purchasing and to reimburse shareholders for earnings 

 devoted to capital purposes. The financial expansion of the com- 

 pany is concisely indicated by the following table showing the 

 successive increases of its capitalization : 



1898 

 1899 

 1902 

 1904 

 1908 

 1910 

 1911 



1912 

 1914 



1915 



1916 

 1917 



1918 



-,919 200,000,000 



1920 

 1921 



tA Dortion set a'nde for employes on easy payments. The company began this year to retire preferred stock at the rate of about $250,000 annually. . 

 JTo take care of" a 100 per cent common stock dividend of $8,427,000, and to replace the former preferred issue retired by redemption. 

 ?Seveii hundred and sixty-seven thousand dollars additional was reserved for employes on partial payments. 

 jibf which $347,100 was reserved for employes on partial payments. 



The corresponding industrial growth of the company is shown 

 by the following table of totals from the balance sheets for fiscal 

 years ending October 31 : 



Dividends 



approximating $800,000. Creditors were offered the option of 

 ■,ur endering their claims for 40 per cent in bond= and 60 per cent 

 in preferred shares, or 20 per cent in cash and 80 per cent in 



Gross 

 Sales 



1899 $527,080 



1908 2,189,749 



1909 4,277,067 



1910 0. 560. 145 



1911 ; 13,262,266 



191") 25.232.207 



1913 32,998.827 



1914 31,056,129 



1915 36.490,652 



1916 63 950,400 



1917 111,450,644 



1918 131.247.382 



1919 168,914,983 



1920 205,000,000 



Reserve 



Preferred 



Common 



$606,555 



855.178 



710,241 



818,219 



1,367.391 



1,747,745 



2.276,187 



2.796,654 



4.000.062 



5,567,579 



7,729,782 



$10,308 

 17.620 

 43,034 

 70,000 



139.605 



350.000 



431,666 



469.583 



764,239 



1.499,040 



2,199.736 



2,813,940 



$49,200 



120,000 



274,092 



603,192 



604.056 



958,933 



1,686,151 



1,261,332 



2.228,342 



2.451,816 



2,489,355 



*Sub)ect to Federal taxes. 



In 1911 the common stock was paying 12 per cent. 



In 1912 comnwm stockholders received a 100 per cent common bonus and the right to subscribe 



for $341,800 new common at par. 'The old preferred was retired at $105 and holders were allowed to .subscribe for {he new preferred share for share 

 at tar. A speculative fever placed fictitious values on most Akron rubber stocks and Goodyear common went as high as $460. In 1916 common 

 stockholders received a 100 per cent stock dividend of $8,427,000. 



