April 1, 1921 



THE INDIA RUBBER WORLD 



513 



News of the American Rubber Industry 



ANNUAL REPORT OF THE B. F. GOODRICH CO. 



NET SALES for the fiscal year ended December 31, 1920, were 

 $150,007,345 as compared with $141,343,419 for the previous 

 year. Net profits, after allowances for depreciation, interest 

 and exchange losses, but before Federal ta.xes, were only $921,248 

 against $17,304,813 the previous year. After payment of divi- 

 dends on the preferred and common stock there was a deficit 

 of $5,371,792 as compared with a surplus of $12,657,813 after 

 dividends in 1919. This deficit, together with the 1919 Federal 

 taxes, cost of notes, pension fund, exchange losses and transfer 

 of $8,000,000 to reserve, aggregating $21,253,608, were charged 

 against the profit and loss surplus of previous years, thereby 

 reducing that amount from $41,203,046 on December 31, 1919, 

 to $22,706,498. The reserve for contingencies totals $10,000,000 

 to provide for anticipated losses on raw material commitments 

 for future delivery and covers the difference between commitment 

 prices and prices of corresponding materials in the inventory, 

 which approach the nominal market quotations on December 31, 

 1920. 



The balance sheet shows current assets of $97,481,559, of which 

 $72,631,057 represents raw materials, partly manufactured and 

 finished stock; accounts receivable, $20,172,177; cash, $3,058,314. 

 Current liabilities total $33,164,523, of which $29,122,955 repre- 

 sents bills payable. Total assets and liabilities are $138,910,112. 



The income accounts for the years 1919 and 1920 are as follows : 



1920 1919 



Met sales $150,007,345 $141,343,419 



Manufacturing expenses, etc 142,250,719 121,579,265 



Balance 7,756,626 19,764,154 



Other income 976,346 576.060 



Total income 8.732,972 20,340,214 



Depreciation 1,937,759 1,835,540 



Interest, etc 4,081,926 1.199,861 



Net profits '2,711,286 =17,304,813 



Previous surplus 41,203,046 33,894,923 



Stock profits 45,775 



Premium and accrued dividends 387,000 



Preferred dividends . , 2.688,840 2,247,000 



Common dividends 3,604,200 2,400,000 



Federal taxes '3,057.627 *5, 558,912 



Pension fund, etc 100,000 177,778 



Cost of notes 2.012,903 



Exchange loss 1.790.037 



Reserve for commitment losses 8.000.000 



Profit and loss surplus 22,706.498 41,203,046 



'Before Federal taxes and deduction of exchange loss. 

 ^Before Federal taxes. 

 'For 1919. 

 «For 1918. 



The directors regard the report as satisfactory, considering 

 the depression in the rubber industry during the last half of 

 1920, and the financial position of the company excellent. Subject 

 to the approval of the stockholders, they have voted to 

 retire 11,880 shares of treasury preferred stock. The plants of 

 the company are in efficient working condition, and no further 

 expenditures for additional expansion of fixed properties will 

 be necessary during the current year. 



GOODRICH DIVIDENDS 



At the directors' meeting held January 19, 1921, a dividend of 

 SVz per cent was declared on preferred stock, 1J4 per cent pay- 

 able April 1, 1921, to the preferred stockholders of record at the 

 close of business March 22, 1921, and 1J4 Per cent payable July 

 1, 1921, to the preferred stockholders of record at the close of 

 business June 21, 1921. 



FISK RUBBER REPORT 



The Fisk Rubber Co. reports for 1920 a surplus, after inventory 

 adjustment and Federal taxes, of $2,130,133, or $1.68 a share 

 earned on its common stock of $25 par value after preferred 

 dividends. In 1919 its earnings amounted to $3,994,657, or $5.99 

 a share on its common stock then outstanding. Its net profits in 

 1920 were $5,034,950 and inventory adjustment, $2,669,117. 



The company's 1920 Federal taxes requirements were $235,700; 

 its preferred dividends, $1,086,981, and its common dividends, 

 $1,474,758, leaving a deficit of $431,606 at the close of that year. 



MIL1.ER PASSES PREFERRED DIVIDEND 



The Miller Rubber Co. has issued notices to all preferred 

 stockholders that the preferred stock dividends payment has 

 been passed by order of the board of directors. This is the first 

 time in its history that the Miller company has passed or de- 

 ferred payment of a preferred dividend. 



ANNUAL STATEMENT OF THE LEE TIRE & RUBBER CO. 



The Lee Tire & Rubber Co., for the year ended December 

 31, 1920, reports net profits, after all charges and federal taxes 

 of $326,638, equal to $2.11 a share on 150,000 shares of common 

 stock of no par value, against $471,805, or $3.14 a share in 1919. 

 The consolidated income accounts for the past two years follov 



.Vet sales 



1920 



f- , , J $6,705,930 



Cost of goods 6,404,896 



Operating profits 301034 



Other income \ ng'^sg 



lotal income 417 092 



Federal taxes, interest, etc 90 054 



t!".P"!5'^ ■•'• 3261638 



°'"<^^"<'= 225,000 



^"■•P'"^ 101638 



aw : 



1919 



$5,583,993 



4,999,949 



584,044 



59,332 



643,376 



171,571 



471,805 



471,805 



^ The plant at Conshohocken, Pennsylvania, is now operating at 

 SO per cent capacity with orders holding up well. The company 

 sold all its high-priced rubber and fabric last August and is now 

 in position to take advantage of present low prices. 



STATEMENT OF THE HOOD RUBBER CO. 



The sales of the Hood Rubber Co., and of the Hood Rubber 

 Products Co., Watertown, Massachusetts, for the year ended De- 

 cember 31, 1920, amounted to $32,867,000 compared with $25- 

 444,016 in 1919. Tire sales were $8,700,000 in 1920 as compared 

 with $6,500,000 in 1919. Earnings were gratifying to the stock- 

 holders. Inventory merchandise values have been marked down 

 liberally and the balance sheet shows a surplus of $1,934,143, 

 subject to a reserve for federal taxes, after deducting a stock 

 dividend of $2,000,000 from the surplus of December 31, 1919, 

 which was $2,863,953. Regular quarterly dividends of 7 per cent 

 per annum were paid on the preferred stock of both companies, 

 while common stockholders have received during the year divi- 

 dends of $14 per share on their stock of January 1, 1920. Pre- 

 ferred stock amounting to $150,000 was retired. Total assets 

 and liabilities have increased from $16,067,081 in 1919 to $23,- 

 104,606 in 1920. 



STATEMENT OF THE AJAX RUBBER CO.. INC. 



The annual report of the Ajax Rubber Co., Inc., New York 

 City, for the year ended December 31, 1920, shows a loss of $177,- 

 920, after depreciation charges, against a net profit of $2,201,267 

 for 1919. Sales for 1920 amounted to $18,639,866. 



The balance sheet shows inventories of $7,408,967 ; notes and 

 accounts receivable of $3,959,947; cash, $301,990, and deferred 

 charges of $336,205. Total assets and liabilities are $18,376,853. 

 The liabilities include $6,145,000 in notes payable, and $528,292. 

 Deductions for $1,100,000 dividends paid, provisions for 1919 

 taxes, and the loss for the year 1920 has reduced the surplus from 

 $2,128,848, as of January 1, 1920, to $1,615,480. Future commit- 

 ments for future deliv^'^ies of raw materials amount to only 

 $220,000 for rubber and $1,767,000 for fabric. 



The directors have passed the quarterly dividend of 1 per cent 

 on common stock. Three months ago it was reduced from 1J4 to 



