November i, 1903.] 



THE INDIA RUBBER WORLD 



39 



REPORT OF A GERMAN RUBBER FACTORY COMPANY. 



AT the general meeting of the Aktiengesellschaft Verein- 

 igte Gummiwaaren-Fabriken Harburg-Wien, at Har- 

 burg a/d Elbe, Germany, on October 24, the directors 

 presented their report for the thirty-first business year 

 of the company, ending June 30, 1903. In addition to a detail- 

 ed balance sheet, the directors presented a general report to 

 the shareholders, a translation of which is given below, as like- 

 ly to be of interest to many readers outside of Germany in show- 

 ing to what extent the holders of shares in corporations in that 

 country are taken into the confidence of the management. 



Gentlemen: The business year closed on June 30 shows a 

 result slightly lower than that of last year, although our fac- 

 tories were actively employed in all branches and our output 

 was in advance of that of last year. The major portion of this 

 increase is due to our Harburg factory, being equally distrib- 

 uted over all its branches of manufacture ; our exports also ex- 

 ceeded those of last year. 



Our factory in Wimpassing, Austria, has been used princi- 

 pally for export purposes. Owing to the unchanged economic 

 conditions of Austria- Hungary and on account of its unfavor- 

 able geographical location, increased expenditures were en- 

 tailed. Oar Linden works have given satisfactory results, and 

 it is hoped that by taking up new branches and new articles of 

 manufacture it will continue to develop. 



The convention on rubber balls during the past year had ex- 

 cellent results and has been extended for a further term of five 

 years. 



As recorded in our last report, our new product " Galalith," 

 has been taken up as a regular manufacture, but the special ar- 

 rangements for its manufacture in our new building will not be 

 completed until the end of this year, and only after that has 

 been completed can we expect to produce it on an extensive 

 scale. At present we can only say that the samples furnished 

 by us to the several industrial branches during the past year 

 have given entire satisfaction, and we hope that the develop- 

 ment of this branch will prove to be profitable. 



The crude rubber prices experienced during the past busi- 

 ness year an advance without comparison since 1899-1900; 

 this advance dates from August and September of last year. 

 The advance in crude rubber prices, compared with the former 

 year was as follows : 



Fine Para 49 per cent. 



Manaos scrappy 43 per cent. 



Better African middle sorts 56 per cent. 



Inferior African sorts 92 per cent. 



This enormous advance in prices is chargeable in the main 

 to the large consumption and comparatively small supplies. 

 The latter amounted to, according to statistics on hand at the 

 end of August : 



1901 1902 1903 



Tons 3894 3074 1846 



The total world's production of rubber amounted during the 

 period of — 



July 1, 1901, to June 30, 1902, to 53.887 tons 



July 1, 1902, to June 30, 1903, to 55.603 tons 



The total world's consumption of rubber during that period 

 was — 



July 1, iqoi, to June 30, 1902 51.170 tons 



July I, 1902. to June 30, 1903 55.270 tons 



The total world's supply on hand amounted, during that 

 period to — 



July 1, 1901, to June 30, 1902 6,816 tons 



July I, 1902, to June 30, 1903 5.053 tons 



These figures prove, that although the production has slightly 

 increased, the consumption, comparatively, was far in ex- 

 cess, and the visible supply therefore decreased quite ma- 

 terially. The reason for this large consumption is not to be at- 

 tributed to business prosperity of the various countries, but 

 mainly to the fact that the bicycle branch consumes immense 

 quantities for its purposes ; besides bicycles in the larger cities, 

 many public vehicles and equipages are mounted with rubber 

 tires. 



At the present time it cannot be foreseen how far the crude 

 rubber prices will advance, until a sufficient amount can again 

 be accumulated in store to enable the factories to complete their 

 necessary supplies, which at present are entirely depleted, and 

 purchases are made only as far as actual necessities require. 

 The prices of other articles used in the rubber goods manufac- 

 ture also have materially increased, in some instances from 20 

 to 30 per cent. That these unfavorable conditions finally affect- 

 ed the profit account of the individual factories is self-evident. 



If, notwithstanding, we were enabled to do a profitable busi- 

 ness during the past year, we are indebted, primarily, to the 

 large stock of crude rubber which we carried over into this 

 yeai 's account, having been bought at a low figure, and, second- 

 ly, to the increased volume of business done to which we have 

 already referred. 



The selling prices of our goods, owing to the low prices of 

 crude rubber during 1901-02, had a dropping tendency. When, 

 in the autumn of last year, crude rubber prices began to advance 

 at an enormous rate, we were compelled to make an advance in 

 prices, and we were successful, in harmony with other German 

 rubber goods manufacturers, in carrying through a 10 per cent, 

 increase, which, unfortunately, could not go into effect until 

 April 1, of this year. 



The magnitude of our factory, and the large number of hands 

 employed, make it imperative that we secure contracts for 

 some time in advance. We are obliged to enter into contracts 

 for future delivery of articles controlled by the seasons, such 

 as shoes, the orders for which are generally received at the be- 

 ginning of the year, and the deliveries made during the sum- 

 mer and autumn ; and, as it is impossible to find a dealer in 

 crude rubber who will take a contract for the year, at monthly 

 deliveries, it is impossible to avoid using raw material pur- 

 chased at the advanced price in filling orders contracted for at 

 the lower figure. 



To keep abreast with the continued high prices of crude rub- 

 ber we are now endeavoring, with other manufacturers, to ad- 

 vance the prices of rubber goods 10 per cent., for the present, 

 but, should prices continue to rise, the prices of manufactured 

 goods will have to be advanced accordingly. 



The importation of rubber shoes from foreign countries has 

 increased, owing to the low import duties imposed on them. 

 The imports from the United States alone, for instance, were 

 119.300 kilograms in weight against 38.100 kilograms in the 

 year 1900. The import from Russia advanced from 450.100 

 kilograms during 1901 to 527.300 kilograms. Besides this, 

 Sweden unloads her overproduction of rubber shoes here, while 

 it is impossible for us, owing to the prohibitive tariff of the 

 three countries named, to sell a single pair of shoes there. In 

 the following named countries the import duty on rubber shoes, 



