Mav 1, 1920.] 



THE INDIA RUBBER WORLD 



Annual Report of the United States Rubber Co. 



THE TWENTY-EIGHTH ANNfAL REPORT of the United States stock from $70,000,000 to $100,000,000 and the authorized corn- 

 Rubber Co.. presented at the annual meeting .\pril, 20, 1920, '"o" stock from $40,000,000 to $200,000,000, and to retire the 

 showed a gratifying business for the calendar year 1919. f"?^" remaming balance of^ second preferred slock, thus simpli- 

 w , , . *oi- corv^,;c • r i 'y'"^ '"'^ Capitalization of the company and providing the oppor- 

 Net sales amounted to $225,589,465, an increase of almost tunity for future financing through the issuance of common 

 $10,000,000 over 1918, the latter year including a large volume stock when the same seems desirable, 

 of business incident to the war. The net income before interest, INCREASE IN THE COMMON STOCK 

 but after providing for depreciation of plants and adequate re- p,,„ , , u •• r i i i . . 



t r- J , r- J- J r> •.■ T ■ j i'ursuant to such action of the stockholders, an offering of 



serves for Federal, Canadian and British taxes on income and our common stock of 100 per cent, or $36,000,000, was made at 



profits, amounted to $21,396,099. Deducting $3,665,862 for inter- par, pro rata, to our common stockholders of record Septem- 



est charges leaves a net profit of $17,730,237. From this there ber 13, 1919, subscriptions being payable October 1, 1919, or in four 



remained to be deducted $5,041,476 for .Mvidends on preferred 'nstalments, at the election of the stockholder. All of tlie stock 



1 .Mnc/jT r J- -J J ■ ■ , t T. -J- • *° ottered was subscribed for by the stockholders, a very large 



stock, $19,567 for dividends on minority stock of subsidiaries, percentage of stockholders electing to pay in full on October 1 



$720,000 for dividend on common stock paid October 31, 1919, and the company received, as of that date, $33,683,450, and 



and $1,378,576 for reserve for dividend on common stock pay- 'he balance of $2,316,550 was thereafter paid in instalments 



able January 31, 1920, leaving a balance for the year of $10,570,- f Provided. The company however, had the use of this money 



^,o u • J 1 .. -rt. 1 L V • 'O"" °ut three months of the year, and a considerable amount 



618 to be carried to surplus account. The surplus at the begin- ,^^., h^.j ,„ y -^^^^^ ^j^^^^ time maturing oSons 



ning of the year amounted to $41,848,051, from which $108,506 ^ ooiigations. 



was deducted for adjustments made during the year, making ^^°°^ ^^"™ ^°^ employes. 



the surplus as of December 31, 1919, $52,310,163. ,^"'' 'f Y'^'"' '" increasing the zeal and efficiency of the em- 



-ru t -1 jt- f ,u r » r-i. ■ ployes ot the company, by encouraging them to have direct oer- 



The hnancial condition of the company, according to Chair- ,^^^i i„,„est in its success, your directors have from time to 



man Colt, "was never better than it is to-day." Expanding time provided through a "Stock Subscription and Profit Sharing 



business and advancing costs will in time require more capital. Plan," a "Value Sharing Plan," and options on stock in certain 



Sales so far this year "show a substantial increase over last ?P«cial cases, for such employes to acquire such stock by carry- 



year/- and with the completion of new plant facilities notably l-Ui'^eftJ^sTear iirsli^h ,^,r:^\ouT t^^r^TZno^^^^ 



m the tire division, sales and profits, he believes, should be feel that the enthusiasm and earnestness which such personal 



larger for 1920 than they were in 1919. interest has engendered has had much to do with the unusual 



growth of our business and profits. 



THE CHAIRMAN'S REPORT. When the common stock was doubled in amount, the com- 



To the Stockholders of the United States Rubber Co.: Pa"^ through a subsidiary acquired and agreed to carry for 



In compliance with the by-laws of the company, the chairman "°' I'f"'*'"^ five years the additional amounts to which such 



of the board of directors submits to the stockholders this annual 'J^^Tl- TJ^ '" '.■ A ^^^^^^ '''f '"1"'', '° ''""'^ ''- 



report for the fiscal year ended December 31, 1919. ""''"^ ^^ ^^'""^ °' ^""'""^ ^°' ^^'"^ ""^" =""^1^ P'^^n^- 



The financial statement, as compiled by the comptroller and DIVIDENDS tJPON common stock. 



certified by the public accountants, is appended hereto and made t„ r"i,-tnli,=r 1010 „^,, ,i;,- .-, i j . 



a part hereof. This statement gives a consolidated general bal- „J" an 8 n/rVen Hiv H,^nH 1^^ K r"^ ^^°f .^''''"'"°" '^°''^ 



ance sheet as of December 31. 1919, of the United States Rub- rr^meri ^hl sn Hninl ill th ' '^•^''".^''"° "j^'' "^"^ """^^ ^'"P'y 



ber Co. and its subsidiaries, after e.Kchuling all offsetting ac- vhi hV f, ir? ottZu year together 



counts between the companies. Tc'tfon'^as^c^nserva^^ve. ''' '"""""' "°"" '"'"^'^ ''"' ^"^' 



volume of business AND PROFITS. On January 8, 1920, the board of directors voted to distribute 



The net sales of the companv for the year 1919 wer? $225,- S'T.''^n.rMn^t ?'^.'"n/^ *! 'r^M"^' ^% ^ ^^°'^} ^'l^^^"'^ 



5,S9,465, an increase of more than $10.000;000 over the sales of f {^^ P" ""^' '° common stockholders of record February 



the previous year, which latter included a large volume of busi- ' jt ,„;'ii i>„ „„*o^ »i, , lU i c .i imrv • ,e 



iiess incident to the war. This war business in 1918 was ,„LV,^'' ^'^ "°' , />^' '^^ '"5^!"^ °' ""^ y^" 1919 itself was 



$25,000,000 greater than in 1919. dends paid dividend as well as the cash divi- 



I In net income before interest, but after making provision for INVENTORIES. 



Icpreciation of plants and adeiiuate resAves for Federal. t ^ • r r , , 



Canadian and British taxes on income and profits, amounted Inventories ot manufactured goods and materials have been 



'" •••. • , $21,396,099 taken at cost where cost was below market, and at market 



, net .nteresi charges amounted to ^■^^^-^'^^ where the market was below cost. The market today is gen- 



' ns leaving net profits for the vear $17,730,237 erally above COSt. 



1 . dividends on United States Rubber Co. pre- MAINTENANCE OF PLANTS. 



1' rred stocks amounted to $5,041,476 'tl i ^ j ■ /• , , . 



ihe dividends on minority stock of subsidiary .-1 "^ plants and properties Of the company have been main- 

 companies amounted to 19,567 tained as heretofore in the highest state of efficiency, and ade- 



MakinK a total of 5 061 043 ''."^'^ reserves have been made for possible depreciation by 



.Maumg a total ot ' 5."6'.043 charges against current earnings. 



1 .ving surplus for the year applicable to the common stock. . $12,669,194 EXPANSION OF PLANTS 

 From which there was deducted : 

 ■ ...lend on common stock paid October 31, 1919 $720,000 In order to provide for the constant and rapidly increasing 

 V:nuarv'°3l ^920 "" """"°" "°"' "*'"''" 1 378 S76 '^'^"'='"'1 f°'" ''' P''°''"'=' "^ automobile truck and passenger car 

 : : tires, the company commenced in the early part of 1919 a sub- 

 Making a total for common stock dividends 2,098,576 stantial expansion of its tire manufacturing plants botli in the 



Leaving balance for the year carried to surplus account.... $10,570,618 ¥''\^^'\ ^'f"'' ^"Z' '" *^*"J''^-, T'"' expansion includes itnpor- 



The surplus at the beginning of the year ♦i".=/u,oi6 tant devclopmeii s at e.ich of the company's five tire plants, 



amounted to $41,848,051 and It IS confidently expected that these improvements will 



From which there was deducted for adjustments more than double the productive capacity of the tire olants bv 



made during the year __J08^06 the early part of next year. 



Thus leaving $41,739,545 .A" expansions and improvements have been made with a 



,, ,. . , ,^ u ,, ,„,„ ";:; view to effecting every economv in manufacture and at the same 



Makmg the surplus as of December 31, 1919 $52,310,163 ,ime to maintaining the highc-^t possible quality of the product. 



AMENDMENT OF CHARTEH. SINKING FUND FOR RETIREMENT OF BONDS. 



.^t a special meeting of our stockholders held September 9, Pursuant to the requirements of the indenture securing the 



1919. it was voted to increase the authorized first preferred company's first and refunding mortgage 5 per cent gold bonds, 



