April 1. \917.] 



THE INDIA RUBBER WORLD 



413 



THE RUBBER TRADE IN AKRON. 



By Our Rc'^uliir Corrcsl^oiidcnt. 



A KROX is having a struggle to keep pace with its own 

 ■'^ growth. Last year our 27 rubber companies manufac- 

 tured rublier 'products valued at $188,000,000, the tire output 

 being 40,000 tires daily. It is reported that not less than 6,500 

 additional etnployes are required by the four largest companies 

 alone, to enable the planned expansion in the tire industry to 

 be carried out. .\n estimate of the present number employed 

 in the Goodrich, Firestone and Goodyear plants is given as 

 about 46,000. 



In presenting the annual report of The B. F. Goodrich Co. 

 and subsidiary companies to the stockholders, Bertram G. Work, 

 president of the company, summed up the past year's transac- 

 tions as follows : 



After making full provision for all maintenance charges, de- 

 preciation, bad and doubtful debts, and other items which it 

 was deemed wise to take out of the year's earnings, the net 

 profits for the period amounted to $9,568,764.87 as compared 

 with $12,265,679.79 for 1915. 



The net sales for the year 1916 amounted to $70,990,781.66 

 as compared with $55,416,866.55 for 1915, representing a gain 

 of 28 per cent. This gain was due to increases in all depart- 

 ments of the business. 



The decrease in net earnings was largely due to the fact 

 that advances in selling prices did not keep pace with rapidly 

 increasing costs. Not only materials and labor, but also prac- 

 tically all expenses incident to the conduct of the business 

 were upon a higlier scale of costs than during the previous 

 year. 



The directors have voted, subject to the approval of the 

 stockholders, to retire 9,000 shares of the preferred stock. This 

 is in accordance with the provision of the company's charter 

 which provides for the retirement of a minimum of 9,000 shares 

 of the preferred stock each year, beginning with July, 1914. 

 After this vear's retirement there will remain outstanding $26,- 

 400,000 of preferred stock. 



The increase in bills payable shown on the balance sheet, is 

 due to a large increase in inventories which was made necessary 

 on account of increased volume of business, congested condi- 

 tion of markets and delays in transportation. 



The company has added to its plant account during the year 

 1916, e.xtensions and equipment costing $3,519,549.93. Beyond 

 completing the work under construction, no further ini])ortant 

 plant extensions are planned at present. 



From the surplus at December 31, 1916, the directors voted 

 to set aside $700,000 for the redemption of preferred stock to- 

 gether with $121,465.50, representing the reduction of preferred 

 stock purchased, from cost to par, and a further amount of 

 $100,000 appropriated for addition to the pension fund. 



The detailed report follows ; 



CoX.SOI.inATED n.\L,'\NCE SHEET. 



December 31, 1916 



.Assets. 

 Capital -Xv^et^ — 



Real estate, buiKUnp=. jjlant. machinery ;incl 

 sundry equipment less reserve for de- 

 preciation of «-'.5Jl,168.95 $16,225,846.27 



Patents 376.036.38 



Goodwill .S7,798,000.0O $74,399,882.65 



Investments in other con^panies, etc 1,192,124.26 



Societe Franchise H. F. Goodrich — represent- 

 ing the net investir.ent at December 31, 



1916 '. 3,183.742.92 



9,057 shares of 7 per cent cumulative pre- 

 ferred stock in treasury, at par 905,700.00 



Current Assets— 



Inventory of raw materials, partly manu- ' 



factured snd finished stock $26,247,006.66 



Tiade accounts reci^ivable. after deducting 

 reserve to cover doubtful accounts, dis- 

 counts and allowatices 7,131.025.29 



Otlier accounts receivable 426,779.52 



r.ills receivable 20g, 406.77 



Cash in banks and .on liand J ... 1,514,241.63 35,527,459.87 



Deferred charges to future operations — ^ 



Prepaid insurance, interest, taxes, etc 427,9/0.26 



$115,636,879.96 



I.I ARII.n lES. 



Capital Stock — 



600. Ono shales of coninion 



stock of the par value of 



$100 each $60,000,000.00 



300.000 shares of 7 per cent 



cumulative preferred stock 



of the par value of $100 



each $30.000.1100,0(1 



Deduct: 

 27.000 shares of preferred 



stock redeemed and cait- 



celled 2. 700. 000.00 27,300.000.00 



(The preferred stock is re- 

 (ieemable in case of dissolu- 

 tion, liquidation, merger or 

 consolidation at $125 per 

 share.) 

 Current Liabilities — 



.\ccounts payable 



Sundry accrued liabilities. 



$87,309,000.00 



$1,297,387.85 



716,088.32 



Ellis payable 6,503,515.00 



Reserves for — 



Contingencies $2,000,000.00 



Pensions 200,000.00 



Appropriation from surplus for,re<lemption of 



preferred stock as above 



Surplus (per annexed account) 



8,516,991,17 



2.200.000,00 



SuRPi.t's Account. 

 December 31, 1916. 



Balance. January 1, 1916 



Net profit for the year ending December 31, 

 1916, per annexed account 



Deduct: 



7,000 sliares of 7 per cent cumulative pre- 

 ferred stock at par redeemed and can- 

 celled during year 



Additional appropriation for pension fund.. 



Reduction of treasury stock, purchased, 

 from cost to par 



7 per cent dividend on preferred stock for 



the year endin? December 31, 1916 1,911,000.00 



4 per cent dividend on comnmn stock...... 2,400.000.00 



2.700,000.00 

 14,919,888.79 



$115,636,879.96 



$10,583,589.42 



9,568,764.87 



$20,152,354.29 



$700,000.00 

 100,000.00 



121,465.50 



Profit and Loss .Account. 

 For the Year Ending December 31, 



Net sales 



Deduct — manufacturing, selling and general 

 administration expenses j. . . 



Profit from operations. 

 .\dd — Miscellaneous income 



1916. 



Deduct : 



Provision for depreciation... 

 Interest on bills payable, etc. 



$890,163.62 

 155.981.99 



5.232.465.50 

 $14,919,888.79 



$70,990,781.66 



60,611,332.55 



$10,379,449.11 

 235,461.37 



$10,614,910,48 



1,046,145.61 

 $9,568,764.87 



Net profit carried to surplus account. . . 



At the regular annual meeting of the stockholders held on 

 March 14, at the office of the Goodrich company, 1780 Broad- 

 way, New York City, directors were reelected as follows : D. M. 

 Goodrich, F. A. Hardy, C. B. Raymond, H. E. Raymond, E. C. 

 Shaw, and H. E. Joy. 



In accordance with a resolution of the directors at their last 

 meeting, the stockholders ratified the reduction of the capital 

 stock of the company by the retirement and cancellation of 

 9,000 shares of the preferred stock mentioned above. 



At a meeting" of the directors held immediately after the meet- 

 ings of the stockholders, the following executive officers were 

 elected : B. G. Work, president ; A. H. Marks, vice-president ; 

 H. E. Rayinond, vice-president ; E. C. Shaw, vice-president ; 

 C. B. Raymond, second vice-president ; W. A. Means, second 

 vice-president ; Guy E. Norwood, secretary and assistant treas- 

 urer ; L. D. Brown, treasurer, and J. C. Lawence, assistant 

 treasurer. 



The following were appointed as an executive committee : B. G. 

 Work, A. H. Marks, 11. E. Rayinond, E. C. Shaw, C. B. Ray- 

 mond, W. R. Means and .'\. B. Jones. L. D. Brown and F. C. 

 Van Cleef were added to the operating committee. 



In an address recently delivered before the Cleveland En- 

 gineering Society, Dr. W. C. Gecr, director of processes of the 

 Goodrich Company, predicted that within two years rubber 

 would re])lace leather to a large extent in shoe manufacture. 



Only 16 years ago the Firestone Tire & Rubber Co. was estab- 

 lislied for the manufacture of carria,ge tires on a small scale, and 



