438 



THE INDIA RUBBER WORLD 



[June 1, 1912. 



obliged to meet, it may be mentioned that for some years past 

 the net profits of the company have been less than 10 per cent, 

 upon its net sales. The policy of the company has been to 

 strive to do a large volume of business at a reasonably lovi^ 

 percentage of profit. 



REVERE-CANADIAN SYNDICATE. 



December 31. 1911, ended the period of twenty-five months 

 during which, as reported to the stockholders in 1910, the 

 Revere-Canadian Syndicate (of which your president was 

 member and manager), was entitled to the earnings of the 

 Revere Rubber Co. up to $700,000. and to one-half the earnings 

 in excess of $700,000. These earnings were found to amount 

 in the aggregate to $762,578.21, of which under the terms of 

 the agreement $731,289.10, has been paid to the syndicate. The 

 earnings of the Revere company in the year 1911 would have 

 been larger but for the interruption in its manufacturing and 

 its general business, due to the transfer of machinery and its 

 manufacturing of tires to a second factory, then in the course 

 of enlargement. Now that this factory is finished and the 

 Revere company has in operation two factories, each special- 

 izing in its work, it is expected that the net earnings will be 

 increased. Such earnings from January 1, 1912, will go in 

 their entirety to augment the earnings of the United States 

 Rubber Co. 



PROFIT SHARING PLAN. 



In 1904 this company adopted a plan of specially interesting 

 employes in the success of the company through a stock option, 

 which within its limits worked successfully. But for some 

 time past your directors have been elaborating a new and more 

 comprehensive plan for the further development of the interest, 

 loyalty and eiificiency of the many oflicials and salaried men in 

 its service and in that of its subsidiary companies. The di- 

 rectors concluded to accomplish this by giving those thus in 

 its service a special motive for acquiring and retaining for years 

 an interest in the company's stock, so as to make them sub- 

 stantially partners in the enterprise. For this purpose the 

 company acquired in the market a number of shares of its 

 common stock at $45 per share, which it is now offering to 

 them at the same figure, although the market price at present 

 is somewhat higher. The subscriptions are to be paid for in 

 instalments of not less than $4 per share per month. The 

 offer is limited to those receiving $1,300 per annum and up- 

 wards, on the idea that they will best be able to meet the re- 

 quired payments without taking an undue financial burden 

 upon themselves. In order to make the privilege -of subscribing 

 at $45 per share still more attractive, and also to make it the 

 more probable that the subscribers will retain their stock and 

 so for years continue their interest in the company's welfare, 

 the company proposes to give them a cash payment of $3 per 

 share for each of the coming five years, provided the sub- 

 scribers retain their stock during that period and obtain a cer- 

 tificate at the end of each year that their services have been 

 satisfactory to the company. 



Furthermore in order to make the payments on the subscrip- 

 tions the less burdensome to the subscribers, the company will 

 distribute a certain profit sharing fund among the subscribers. 

 At any time before full payment any subscriber may cancel his 

 subscription. In such case all he has paid, together with in- 

 terest at five per centum per annum, will be refunded. In the 

 case of the death of a subscriber during the five years, his fam- 

 ily will receive the same benefit he would have received under 

 these plans had he lived. Afiy forfeitures caused by unsatis- 

 factory service or by termination of service or by cancellation 

 will enure to the benefit of the other subscribers. 



If the plan works out successfully, it is hoped that in each 

 succeeding year a similar offer will be made — the price of such 

 future stock subscriptions, however, to be determined partly 



by the market price of the stock and other conditions prevail- 

 ing at the time. It is believed that enthusiastic and highly in- 

 terested work and prolongation of service will make sub- 

 stantially for the welfare of all concerned. 



CONDITION OF PROPERTIES. 

 The various operating mills and equipment of the United 

 States Rubber Co. and its subsidiary companies — have been 

 maintained in the highest degree of efficiency, additions being 

 constructed where required, the most modern machinery in- 

 stalled and all kept in the best of repair. 



NEW OFFICE BUILDING. 

 The new twenty story office building of the United States 

 Rubber Co., on the corner of Broadway and Fifty-eighth street. 

 New York, is nearing completion and will be ready for occu- 

 pancy at an early day. A portion has already been rented to 

 tenants. The first floor and two basements of the building 

 will be used exclusively by the United States Tire Co. for its 

 growing business, and the seven upper floors will be occupied 

 for the general offices of the United States Rubber Co. and its 

 subsidiaries. 



RESUMPTION OF DIVIDENDS ON COMMON STOCK. 

 Last October your directors became satisfied that they were 

 warranted in then resuming dividends upon the common stock 

 of the company and a one per cent, dividend thereon for the 

 quarter year was accordingly ; declared. Such dividends have 

 since been continued quarterly. 



CONCLUSION. 



It is a source of great gratification to the management of 

 the company that all of its securities should now be on a divi- 

 dend paying basis. 



Advances have been made in the efficiency of our organiza- 

 tion during the year and, although there is much yet to be 

 accomplished and notwithstanding that as in the past there 

 will doubtless arise in the future obstacles to be overcome, w'e 

 feel that the general condition of our company was never more 

 satisfactory nor its future outlook more encouraging than it is 

 today. 



Considering the increasing variety of uses to which rubber 

 is being applied and that it seems practically certain that en- 

 tire success will attend the cultivation of the rubber tree in 

 the vast tropical countries of the east, where cheap labor is 

 abundant, and where the cost of production is only about one- 

 third the cost in Brazil, we look forward to a constantly in- 

 crea^Jte volume of business and steadily growing prosperity 

 for.tk'e United States Rubber Co. Respectfully submitted, 



S.\MUEL P. Colt, President. 



treasurer' s report. 

 United St.-^tes Rubber Co. and Subsidiary Companies. 



[Not including -\ssets or Liabilities of Rubber Goods Mfg. Co. and certain 

 other Companies owned in part by U. S. R. Co.] 



Consolidated General Balance Sheet, March 31, 1912. 



ASSETS. 



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



Co., and Canadian Consolidated Rubber Co., 



Ltd.) $87,453,928.25 



Inventories, manufactured goods and 



materials $21,754,653.86 



Cash 4,848,466.12 



Bills and loans receivable 1.133,412.53 



Accounts receivable 13,464,959,27 



Stock owned in General Rubber Co.. 3,333,300,00 

 Securities, including stock and bonds 

 of U, S. R, Co. held bv subsidiary 



companies 4,189,087.57 



Miscellaneous assets 344,644.63 49.068.523.98 



Total assets $136,522,452.23 



