138 



THE INDIA RUBBER WORLD 



[December 1, 1918 



Turnover is without doubt the secret of success in the game 

 of merchandising, no matter whether one be a buyer or seller 

 of goods. The ability to turn over capital often will mean 

 that profits will be large, regardless of whether one is a 

 retailer, jobber or manufacturer. And trade acceptances offer 

 the means of turning money over often. When they are used 

 a jobber or manufacturer will be able to realize cash on each 

 and every transaction, and by so doing will be able to discount 

 bills at once and use the money, instead of having it tied up in 

 the business of others. Trade acceptances put the entire business 

 on a cash basis and this is the cream of business. 



Since this would be the case the need for large amounts 

 of working capital will not be in evidence. A cash business 

 does not require the working capital that a credit business does 

 and in addition the net earnings, in proportion to capital in- 

 vested, will be materially larger if trade acceptances are sub- 

 stituted for the present system of open accounts. 



The jobber and manufacturer finds that trade acceptances 

 ofler him an ideal method of raising cash for use in his busi- 

 ness. At present he can get it on his own note or by pledging 

 his accounts receivable, but neither method is any too satis- 

 factory and both are more expensive than discounting accept- 

 ances which furnish the required capital as quickly and cheaply 

 as it is possible to do it. The use of acceptances tends to give 

 the jobber or manufacturer a better standing at his bank. If 

 they are substituted for the open account his bank will see who 

 his customers are, and there is no better way to obtain influence 

 at your bank than to let them know who your customers are. 



Trade acceptances enlarge your borrowing facilities. At pres- 

 ent the amount that can be loaned on your own one-name paper 

 may, perhaps, be limited, but with trade acceptances it is dif- 

 ferent. A bank is limited in the amount it can loan on the 

 paper of any one acceptor, but since a jobber or manufacturer 

 has many customers the banks can loan up to the limit on the 

 paper accepted by each customer, and in that way the jobber 

 or manufacturer will be able to get many times the amount of 

 money that he would have been able to get under the present 

 method of one-name paper. It can be truthfully said that trade 

 acceptances offer unlimited borrowing facilities. 



Trade acceptances give the seller of goods a chance to plan 

 his business with some degree of assurance that his plans will 

 be carried out. He is assured that every month he will have a 

 more or less fixed income, a cash income, and this means that 

 he can build up his business without the worry of collecting the 

 money that is owing him. 



For the jobber or manufacturer who does not need the money 

 at once, trade acceptances are also of vital service. Their use 

 will remove from business many of the abuses that have been 

 discussed here and in addition can be used as a reserve to be 

 discounted in case of great financial stress or whenever the 

 occasion calls for more capital than the house has at that time. 

 There are several of the larger houses which ask for trade 

 acceptances but do not discount them. They employ them be- 

 cause they eliminate from business the abuse of the unearned 

 cash discount, the protested account and other petty grievances, 

 and in addition give them a quick method of raising additional 

 capital should the occasion arise. 



Taken all in all, trade acceptances are of vital use for the job- 

 ber or manufacturer of rubber goods. We have seen how they 

 would benefit the retailer, also how they will benefit the jobber 

 and manufacturer. To be sure, they are still new and many 

 large houses are not fully aware of their value. But under con- 

 ditions such as we have at present, when every turn of capital 

 means something, it would be well for the trade as a whole to 

 study and make use of them as valuable aids to modern busi- 

 ness progress. 



NEW INCORPORATIONS. 



Amazon Tire Co., Inc., The, October 23 (New York), $10,000. 

 F. H. Findley, 246 East 207th street. New York City; O. 

 Moynihan, 360 West Marltet street, L. J. Schott, 249 South 

 .\rlington street — both of Akron, Ohio. To manufacture auto 

 tires and rubber goods. 



American Webbing Manufacturers E.\port Corp., November 

 23 (New York), $100,000. M. Griffin, 812 Suburban Place, 

 Bronx ; E. K. Cunningham, 485 Central Park West, both of New 

 York City; C. H. McLean, Passaic, New Jersey. To export 

 webbing and webbing products. 



Chicago Scrap Rubber Base Co., November 7 (Illinois), $5,000. 

 W. A. Roonet, L. Gaizat, E. J. Hess. Principal office 2204 South 

 Throop street, Chicago, Illinois. To manufacture, buy, sell, 

 repair and deal in vehicle parts of all descriptions, accessories, 

 scrap rubber, etc. 



Davenport Tire & Rubber Co., Inc., Noveinber 14 (New 

 York), $1,000. Sydney Bernheim, 35 Nassau street, New York 

 City; C. A. Weldon, 591 7th street, M. Kittay, 823 Monroe 

 street— both of Brooklyn, N. Y, To conduct tire manufacturing 

 business. 



Getchell Co., Xoble H., November 14 (Delaware), $40,000 pre- 

 ferred stock. 550 shares common stock without nominal or par 

 value. C. L. Rimlinger. M. M. Clancy, P. B. Drew— all of Wil- 

 mington. Delaware. Principal office with the Corporation Trust 

 Co of America. Du Pont Building, Wilmington, Delaware. To 

 manufacture and deal in tires and inner tubes for automobiles. 



Glamorgan Tire & Rubber Corp., October 21 (Delaware), 

 $250,000. M. Howells, Orrville P. Jones, Warren— both of Ohio ; 

 J. T. Thomas, Woodlawn, Pennsylvania. To manufacture and 

 deal in automobile and bicycle tires, inner tubes and rubber ac- 



The practice of individual thrift is a patriotic duty and a 

 necessity. 



Industrial Supervision Co., Inc., November 8 (New York), 

 $4,000. S. Bernheim, 35 Nassau street. New York City: C. A. 

 Weldon, 591 7th street, M. Kittay, 723 Monroe street— both of 

 Brooklyn — all of New York. To supervise the manufacture of 

 tires, etc. 



Miller Rubber Co., W. T., September 17 (Indiana), $10,000. 

 W. T. and D. Miller, W. W. Shelley— all of Elkhart County, 

 Indiana. Principal office, Elkhart, Indiana. To manufacture, 

 purchase and sell motor tires, accessories and supplies and all 

 kinds of vulcanizers and all such machinery used in the process 

 of making and repairing motor tires, accessories and supplies. 



National Wool Stock Co., October 2 (Delaware), $300,000. 

 C. L. Rimlinger, M. M. Clancy, F. A. Armstrong, all of Wil- 

 mington, Delaware. Principal office within the State, with the 

 Corporation Trust Co. of America, Du Pont building, Wilming- 

 ton, Delaware. To deal in rubber and scrap materials, etc. 



Preston Tire Co., of Houston, Texas, September 26 (Texas), 

 $15,000. C. and N. J. Kavanaugh, C. R. Bender— all of Houston, 

 Texas. To purchase and sell wares and merchandise and agri- 

 cultural and farm products. 



Record Tire & Mfg. Co., Inc., November 21 (New York), 

 $50,000. J. A. Roberts, 256 Broadway, J. H. Devereux, 233 

 Broadway, G. N. Shafer, 324 West 103rd street— all of New 

 York City. To manufacture tires, tubes, etc. 



Truck Tire Sales & Service Co., October 25 (New Jersey), 

 $50,000. J. M. and E. Goodridge, T. N. Balderston— ail of 42 

 Barnes street, Trenton, New Jersey. Principal office, 42 Barnes 

 street, Trenton, New Jersey, .^.gent in charge, T. N. Balderston. 

 To deal in truck tires. 



Yarnall- Waring Co., February 11 (Delaware), $2,000. C. L. 

 Rimlinger, M. M. Clancy, F. A. Armstrong— all of Wilmington, 

 Delaware. Principal office with the Corporation Trust Co. of 

 .\merica, Du Pont Building, Wilmington, Delaware. To manu- 

 facture and deal in valves, clamps, gages and similar appliances 

 for boilers, motors and other machinery. 



