306 



THE INDIA RUBBER WORLD 



[June i, 1904. 



of such debentures. To provide for the reduction of such debentures 

 between now and the date of their maturity, I would recommend apply- 

 ing annually a certain percentage of the earnings of the Boston Rubber 

 Shoe Co. to such reduction. There can be no difficulty whatsoever, 

 with the very high credit of the Boston company, in extending the bal- 

 anoe.if any, that may remain unpaid at maturity. 



Crude Rubber. — Your management has given much attention to the 

 subject of crude rubber during the past year, and has consummated 

 arrangements for the establishment of our own purchasing agencies at 

 Para and Manaos. We also have laid the foundation in another direc- 

 tion for acquiring and handling generally our very large requirements of 

 crude rubber. We are confident that these steps will give us special ad- 

 vantages and facilities never before possessed by this company and not 

 enjoyed by any other consumer of rubber. 



Stocks of Merchandise on Hand. — Your company is unusually 

 well stocked with merchandise required for the manufacture of its prod- 

 duct, and at prices materially below the present market prices. This 

 will account for the increase of the item in the treasurer's report , ' ' Inven- 

 tories, Manufactured Goods, and Materials $16,801,876.28, March 31, 

 1904," as against $11,480,783 iS, March 31, 1903, and for the decrease 

 in cash — $[,660,852.62 March 31, 1904, as against $4,823,830.91 

 March 31, 1903. This is done in conformity with the policy of your 

 management of purchasing, so far as possible, crude rubber and other 

 materials sufficient to cover all goods that are sold in advance at fixed 

 prices. This action cannot but prove of great advantage to the com- 

 pany and its shareholders, since it secures beyond any doubt a reason- 

 able profit upon all sales of the company's goods. 



New Offices. — Owing to the inadequacy of accommodations the 

 general offices of the company in New York have recently been moved 

 from 15 Murray street to the new office building, " 42 Broadway." All 

 the departments of the company are now on the same floor of this com- 

 modious building, thereby giving ample space for our officers and em- 

 ployes, besides affording better facilities for communication between the 

 different departments and the transaction of the general business of the 

 company. This has been done with no increase in expense. The com- 

 pany also maintains a warehouse in the jobbing district for the accom- 

 modation of local customers. 



Non-Restricted System of Selling Goods, and Exfort Trade. 

 — The plan of selling our product, which went into effect January 1, 

 1903, whereby no attempt is made to regulate the prices of our goods 



after we have parted with the title to them, has been found to work suc- 

 cessfully, even beyond our expectations. While some of our directors 

 were in doubt as to the expediency of the change, all are now agreed 

 that the result has proved the wisdom of the action taken. This is evi- 

 denced among other things by the record of the past year, which shows 

 by far the largest volume of business ever transacted by the company. 



Our export trade likewise shows an increase over any previous year. 



Manufacture of By-Products. — The company manufactures all its 

 reclaimed rubber, which gives it an article of uniform and superior 

 quality. It also manufactures, under its own patents, all its buckles, 

 the company's consumption of which last year amounted to 11,464,704 

 pairs, and which are far cheaper and better than any other in the mar- 

 ket. It also makes its felt linings for boots, lumbermen's, etc. 



Concentration and Economies — During the year much progress 

 has been made in promoting the efficiency of the manufacturing, selling, 

 and accounting departments of the company. A complete system of 

 comparison of costs of the different factories has been inaugurated by 

 the assistant general manager, which already shows a saving of large 

 sums without detracting in any degree from the quality of the goods 

 manufactured. In the selling department, under the manager of sales 

 and manager of branch stores, far greater efficiency and energy prevails 

 than ever before. In the accounting department, under the assistant 

 treasurer, matters have been so systematized that each month the exact 

 result of operations of the company and its subsidiary companies is pre- 

 sented to the directors, and great advantage is derived therefrom, es- 

 pecially through comparisons of the results of the operations of the dif- 

 ferent mills. This latter will enable the directors to make statements of 

 earnings to the stockholders at each dividend period. 



Litigation. — In the closing out of its tire business some time ago, 

 the company accepted certain securities, over which there was threatened 

 litigation. This has been satisfactorily adjusted during the year, and 

 the securities converted into cash. All this has been done in such a 

 manner as to leave the most friendly feelings with the large concern 

 that purchased our tire business. There is now no pending litigation 

 which is likely in any way to injuriously affect the company ; there being, 

 however, several important suits undetermined which were brought in 

 the interest of the company. 



Condition cf Factories and Inventories of Materials —The 

 high efficiency of our factories has been fully maintained. During the 

 year we have replaced the power plants of several mills, and made ex- 



TREASURER S REPORTS. 

 Uni ied States Rubber Co. and Subsidiary Companies. 



Consolidated General Balance Sheet, March 31, 1904. 

 ASSETS. 



Properly and plants. $47,716,005.04 



Inventories, manufactured goods, and 



materials $16,801,076.28 



Cash 1,660,852.62 



Bills and loans receivable 2,072,3 1 3 04 



Accounts receivable 6,489,128.76 



Securities owned 2,681,649.09 



Miscellaneous assets 783,522.40 30,489,342.19 



Totel Assets $78,205,347.23 



1. 1 A I! I I. IT I F. S . 



Capital stock, Preferred $23,525,500.00 



Capital stock, Common 23,666,00000 $47,191,500.00 



Boston Rubber Shoe Co., debentures 4,800,000.00 



U. S. Rubber Co , Funding Notes 10,000,000 00 



Fixed surpluses (subsidiary companies). . . 8,134,849.37 



Loan accounts payable 1,622,000 00 



Merchandise accounts payable 3,066,232.72 4,688,232.72 



Deferred liabilities 430,663.78 



Reserve for depreciation of securities 500,000.00 



Reserve for dividend [June 15, 1904] 152,882.50 



Surplus 2,107,218.86 



Total Liabilities $78,205,34723 



United States Rubber Co. and Subsidiary Companies. 



Consolidated Income Stat ement for Year Ending March 31, 1904. 

 Gross sales, boots and shoes and miscellaneous $64*553, 237. 43 



Net sales, boots and shoes and miscellaneous $33,396,918.88 



Cost of goods sold 28,987,86320 



Manufacturing profits $ 4,409,055.68 



Freight, taxes, insurance, general and selling expenses. 1,766,178.48 



Operating profits. 

 Other income.. . . 



$2,642,877.20 



187.329 56 



Totalincome $2,830,206.76 



Less : 

 Interest and commission on Funding 



Notes and borrowed money $802,173.67 



Interest on Boston Rubber Shoe Co. De- 

 bentures 240,000.00 



Interest allowed customers for prepay- 

 ments I43.°Q7 06 1,185.270.73 



Net income to surplus $ 1,644.936.03 



Deductions for bad debts, etc 69,294.74 



Total $ 1,575.641 29 



Reserve for depreciation of securities. . . . $500,000.00 



Reserve for dividend 352,882.50 852,882. 50 



Surplus for period $ 722,758.79 



Surplus April 1, 1903 1,384,46007 



Surplus March 31, 1904 $2,107,21886 



IAMBS B. FORD, Treasurer. 



