N-OVEMi)ER i. 1919.1 



THE INDIA RUBBER WORLD 



101 



News of the American Rubber Industry. 



FINANCIAL NOTES. 



THE ENTIRE amouiit of the offering of $36,000,000 of the 

 United State's Rubber Co.'s common stock was subscribed 

 for without calling upon the underwriters to take any part. 

 Subscribers for only $2,316,550 par value availed themselves of 

 the opportunity to pay in four instalments, the other stockhold- 

 ers preferred to pay $33,683,450 par value in full on October 1. 

 The statement of the United States Rubber Co. and its sub- 

 sidiaries for the six months ended June 30, 1919, shows surplus 

 after charges and federal ta.xes of $10,815,750, equivalent after 

 preferred dividends to $23.01 a share on $36,000,000 common stock. 

 This compares with $10,283,025, or $21.64 a share in the cor- 

 responding period of 1918: 



Total sales 



General expenses and ordinary taxes 



Operating profits 



Interest charges, etc 



Federal and Canadian taxes 



Net profits 



First preferred dividends 



Second preferred dividends 



Subsidiary companies dividends 



Surplus 



Previous surplus 



Total surplus 



77,144,870 

 22,344,502 



4,852,606 



6,676,146 

 10,815,750 



2.508,484 

 12,108 

 9,308 



8,285,850 

 41,848.051 

 50,133,901 



56.'l3'3',96i 



82,439,561 



26,076,164 



11,991,289 



3,801,850 



10.283,035 



2,468,888 



12,108 



9,320 



7,792,709 



31,891,207 



39,683,916 



40,660 



39,643,256 



The Boston Woven Hose & Rubber Co.'s balance sheet as of 

 September 1, 1919, shows a surplus of $2,035,183, an increase of 

 $352,986 over last year, .\fter the signing of the armistice the 

 Government cancelled many orders. This left a large inventory 

 on the company's hands, which has now been reduced $362,851 to 

 $2,675,225. It has increased its working capital during the year 

 by $514,099, the total now being $3,439,598, and is free from debt. 

 Dunng the year the company began to manufacture automobile 

 tops. This business has proved very profitable and will be largely 

 increased in volume. 



The company's balance sheet, compared with that for 1918, is 

 as follows : 



.Assets. 



September 1. 



» 



The Goodyear Tire & Rubber Co., Akron, Ohio, recently an- 

 nounced that the $15,000,000 worth of second preferred eight per 

 cent stock which was issued during the war was to be called in at 

 105 on November 1. It offered to each employe the 

 opportunity to subscribe for any number of shares up to twenty 

 of its preferred non-assessable seven per cent cumulative stock, 

 for which payment will be accepted at the rate of $4 monthly per 

 share, to be deducted from salaries, payments to be completed 

 within two years, subject to an interest charge on deferred pay- 

 ments. Quarterly dividends of one and three-quarters per cent 

 will be paid on the full par value of stock subscribed for. Special 



inducement will be offered to subscribers to hold stock. Subscrip- 

 tions started October 29 and closed November 1, the total number 

 of subscribers in the factory and office being 16,016 and their sub- 

 scriptions amounting to $6,746,800. This did not include the plants 

 in Canada, Arizona, or California. 



It has become known thai the Mason Tire & Rubber Co., Kent, 

 Ohio, has a plan under way for increasing its capital stock to 

 $7,500,000. No definite announcement has been made, but it is 

 understood that sales for the time being are to be restricted to 

 present stockholders. 



The Firestone Tire & Rubber Co., Akron, Ohio, is issuing 

 $10,000,000 of seven per cent preferred stock for the purpose of 

 enlarging its plant. The immediate purpose of the issue is to 

 provide the company with additional working capital, to construct 

 a new mechanical building and a new steel rim plant, and to fur- 

 nish additional equipment for plant No. 2 to increase its output, 

 which consists of 3!/2-inch tires and tubes exclusively. The pres- 

 ent output is 22,000 tires and 25,000 tubes a day ; the additional 

 equipment will raise this to 36,000 tires and 40,000 tubes daily. 

 In the last complete eight years the amount of net sales and net 

 earnings after preferred stock dividends had been paid were as 

 follows : 



$75,801,507 

 61,587,219 

 44,135,326 

 25,319,476 

 19,250,110 

 15,720,907 

 11,683.200 

 7,462,581 



Earnings. 

 $4,664,615 

 4,619,298 

 5.837.021 

 4.447.271 

 3.157.719 

 1.558.059 

 1.126.911 

 566,752 



Flfte 



iths — end of fiscal year changed from July 31 to October 31. 



For the nine months. November 1, 1918, to July 31, 1919, the 

 net sales amounted to $59,145,396, and for the month of August 

 the net sales were over $10,000,000, the largest amount in the 

 company's history, exceeding greatly the total year's sales of 

 nine year's ago. 



The Goodyear Tire & Rubber Company of California has issued 

 $2,000,000 more of seven per cent preferred stock in addition to 

 the $6,000,000 put on the market in July, making eight million out 

 of the ten million authorized. 



The company has acquired 440 acres of ground at Los Angeles 

 adjacent to the 600 acres, forming Ascot Park, that were first 

 acquired. On this will be built also the plant of another subsidiary 

 of the Akron parent company, the Pacific Cotton Mills Co., 

 that will manufacture the cotton fabrics which enter into the 

 construction of tires and other rubber products from the cutton 

 grown in Arizona and Southern California. The Pacific Cotton 

 Mills Co. has just issued $2,000,000 of seven per cent preferred 

 stock, out of $3,000,000 authorized. The plant is expected to run 

 33,000 spindles. 



Shares of The Fisk Rubber Co. are active, as the statement 

 for the first eight months of 1919 is expected to be very favor- 

 able. Sales are amounting to more than $5,000,000 a montli so 

 that last year's total of $36,000,000 will be far surpassed. When 

 the additions to its manufacturing equipment at Chicopee Falls 

 are completed the company will be able to turn out 15,000 tires a 

 day. For the last five years, surplus profits have been turned 

 back into the business, but the directors now beheve that a 

 dividend on the common stock can be paid. This will be done 

 probably before the new year. 



The balance December 31, 1918, of $4,425,923 had become 

 $8,009,143 by September, 30, 1919, and the profits from January 

 1 through September 30, 1919, were $4,199,399. 



