June i, 1908.] 



THE INDIA RUBBER WORLD 



299 



United States Rubber Co.'s Annual. 



THE sixteenth annual meeting of shareholders of the United 

 States Rubber Co., incorporated under the laws of New 

 Jersey, was held at the registered offices of the company 

 in that state, at New Brunswick, on May 19. The operations of 

 the company during the last business year and its condition at 

 the close of the year, are indicated in the annual reports of 

 officers, as read and approved, and which are presented here. 



PRESIDENT'S ANNUAL REPORT. 



To THE Stockholders of the United St.ates Rubber Co. : It is 

 a source of satisfaction that, in spite of the great business de- 

 pression throughout the country, the business of our company 

 compares as favorably as it does with that of the previous year — 

 the largest in its history, especially as due consideration is to 

 be given to the fact that our fiscal year ends March 31, thus 

 including six months largely affected by the financial depression. 

 For the first six months — April to September, 1907 — the busi- 

 ness was largely in excess of the corresponding period for the 

 previous year. 



The treasurer's report, which follows, gives the result of the 

 operations of the company and its subsidiary companies for the 

 fiscal year, a'.id shows their condition at the close of the year. 



It has been the policy of the management to conduct the busi- 

 ness of the company in the most conservative manner, and in 

 all its departments and branches there have been introduced 

 rigid economies, bringing about in the manufacturing and selling 

 organizations consolidations which assure better results in the 

 future, while preserving the efficiency of our organization and 

 maintaining the high standard of the quality of our goods. 



The funding notes of the company, which matured March 15, 

 1908, were provided for by the sale of a new issue of like 

 notes for the same amount, payable September 15, 1909. 



Arrangements have been made for payment of the issue of 

 $4,800,000 of debenture bonds of the Boston Rubber Shoe Co., 

 which matures August i. 1908, through the sale of a new issue 

 of $4,500,000 of similar debenture bonds, payable September IS, 

 1910, the balance to be provided for by cash in the treasury. 



The net profits of the United States Rubber Co. for the 

 past year, not including the company's proportion of surplus 

 earnings of some of its subsidiary companies not actually re- 

 ceived in dividends, are $3,553,556.14, which are considered 

 satisfactory, in view of the manufacturing and selling conditions 

 which have existed during the year, and taking into account 

 the conservative prices at which materials on hand have been in- 

 ventoried in our balance sheet of March 31, 1908. 



The company did not advance the selling price of its manu- 

 factured goods in comparison with the abnormally high price of 

 crude rubber which prevailed early in the year, and the lower 

 price now prevailing for this important item in the cost of our 

 goods should enable the company to receive a larger, yet reason- 

 able,, profit on its product for the coming year, as our selling 

 prices remain unchanged. 



The company has paid the regular 2 per cent, quarterly divi- 

 dends on its first preferred stock, and V/i per cent, quarterly 

 dividends on its second preferred stock. 



Important changes have been made in the conduct of our 

 export business, which, while materially reducing the expense 

 in the operation of this department, should tend to satisfactory 

 results. 



The business of the Rubber Goods Jtlanufacturing Co. held 

 up remarkably well during the calendar year of 1907. The net 

 results obtained, considering the general trade conditions during 

 the latter part of the year, are all that could reasonably be ex- 

 pected. 



The promptness, with which the entire business of the com- 



pany was adjusted to the change from the favorable conditions 

 of the first six months of our fiscal year to the unfavorable and 

 difficult conditions prevailing during the last six months, 

 reflects credit on the individual effort of all who are in responsi- 

 ble positions in our various departments and subsidiary com- 

 panies, and, coupled with the fact that we have kept our mills 

 in every way in excellent physical condition, warrants us in 

 anticipating that, with a return of general prosperity, we may 

 look for improved results. Respectfully submitted, 



S.^lIUEL P. COLT, President. 

 ^»ew Brunswick, New Jersey, May 19, 1908. 



TREASURER'S REPORT. 

 UNITKD ST.\TES RUBBER CO. AND SUBSII>I.\RY COMPANIES. 



Consolidated General Balance Sheet, March 31, 1908. 



[Not including Assets or Ijabilities of the Rubber Goods Manufacturing 

 Co., or of its subsidiary companies.] 



ASSETS. 



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



^ Co.) $74,734- 539/7 



Inventories, manufactured goods and 



materials $i3,533.i69-8r 



Cash 2.723.380.75 



Bills and loans receivable 994.250.84 



."Kccounts receivable 8.494,234.66 



Securities owned 8.174.730.24 



Miscellaneous assets 612,720.57 34,532,486.87 



Total Assets, $109,267,026.64 



LI.\B1L1TIES. 



Capital stock, first preferred $36,263,000.00 



Capital stock, second preferred 9.965.000.00 



Capital stock, common 25,000,000.00 $71,228,000.00 



Boston Rubber Shoe Co.. debentures 4.800,000.00 



United States Rubber Co., Funding 



Notes 8,000,000.00 



Loans and notes payable $2,440,077.55 



Merchandise accounts payable 362.634.55 



Due General Rubber Co 7,164.111.61 9,966,823.71 



Deferred liabilities 77,803.98 



Reserve for dividends 874,735.00 



Fi.xed surpluses (subsidiary com- 

 panies) 8,134.849.37 



Surplus 6,184,814.58 



Total Liabilities $109,267,026.64 



[The contingent liability for certain guarantees, which are offset by cor* 

 responding contingent assets, are not included.] 



Consolidated Income Statement for Year Ending 

 March 31, 1908. 



Gross Sales. Boots and shoes and miscellaneous. .. .$62,696,105.54 



Net Sales, Boots and shoes and miscellaneous $41,860,425.96 



Cost of goods sold 35.462,394.29 



Manufacturing profits $6,398,031.67 



Freight, taxes, insurance, general and selling expenses 1,913,127.41 



Operating profits $4,484,904.26 



Rubber Goods Mfg. Co. dividends.... $890,733.00 



Other income 178,037.84 $1,068,770.84 



Total income $5o53>675.io 



Less : 

 Interest and commission on funding 



notes and borrowed money $1,320,587.14 



Interest on Boston Rubber Shoe Co. 



debentures 240.000.00 



Interest allowed customers for pre- 

 payments 297.480.78 1.85S.067.92 



Net income to surplus $3,695,607.18 



Deduction for bad debts, etc 142.051.04 



