May I, 19I9.J 



THE INDIA RUBBER WORLD 



Annual Report of the United States Rubber Co. 



THE twenty-seventh annual report of the United States Less hitercsi, net 4,119,055.41 

 Rubber Co., presented at the annual meeting April IS, . — 



1919, showed a highly satisfactory year's business, the Net prolits for the year $16,072,041.56 



net sales amounting to $215,398,425.04, an increase of more than Dividends paid on United States Rub- 



$39,000,000 over the sales of 1917. The net profits for the year, ber Co. preferred stocks $4,961,992.00 



before deducting income charges, inventory adjustments, and Dividends paid to minority stockholders 



provisions for Federal, Canadian, and British taxes, amounted of subsidiary companies 19,509.50 4,981,501.50 



to $39,480,631.83. The deduction of the above-named items, . _ 



$19,289,534.86, and the charging ofif of $4,119,055.41 for interest. Leaving as the surplus for the year $11,090,540.06 



left a net profit of $16,072,041.56 for the year. From this there general rubber company debentures. 



remained to be deducted $4,981,501.50 for dividends paid on !„ refunding our indebtedness under our first and refunding 



United States Rubber Co. preferred stocks and to minority mortgage, as set forth in the annual report presented March 



stockholders of subsidiary companies, leaving $11,090,540.06 as 20, 1917, all outstanding issues were provided for at that time in 



the surplus for the year, to which is added the surplus at the cash except $9,000,000 of debentures of the General Rubber Co., 



beginning of the period, less deductions of $1,133,695.66, leaving which fell due December 1, 1918, and $2,600,000 of bonds of the 



the net surplus on December 31, 1918, $42,981,747.16. Canadian Consolidated Rubber Co., Limited, which will fall due 



The financial condition of the company is indicated by the {„ 1945^ for refunding which an equivalent amount of first and 



accompanying balance sheet and provides the greater working refunding mortgage bonds was reserved. 



capital required by constantly expanding business, high cost Provision was this year to take up the debentures of the 



of materials, and contemplated extensions, particularly in the General Rubber Co., when they fell due, through an issue of 



tire division. $6,000,000 of 7 per cent five-year gold notes of this company, 



THE CHAIRMAN'S REPORT. secured by $9,000,000 of our first and refunding mortgage bonds 



To the Stockholders of the United States Rubber Co.: ,vhich were issuable for that purpose. Tlie balance to take up 



Under the by-laws of the company as amended March 19, these debentures was provided from our current resources 



1918, the chairman of the board of directors is charged with ^^^^^^^ financial condition. 



submittmg an annual report to the stockholders. In compliance ^he financial condition of the company is strong, as indicated 



therewith, your chairman subniits the following report for the ^y the consolidated general balance sheet appended hereto. With 



hscal year ended December 31, 1918. ^ the continually expanding business and present high prices of 



The detailed financial statement, as compiled by the comp- ^^^^^i^,^_ ^^^^ ^^^^.^^ ^^p.^^, .^ .^ ^^^.^.^^ ^^ ^^.^^^ 



troller and certified by the public accountants, IS appended hereto extensions have been planned, especially in the tire division, 



and made a part hereof This statement gives a conso ida ed ^^.^^ ^j,, ^^^^^^^ ^ ^^^^^ ^^^^^^ ^^ 



general balance sheet as of December 31, 1918, and a consolidated 



income statement for the year ended December 31, 1918, of the ,, ^ ^ dividends upon the common stock. 



United States Rubber Co. and its subsidiaries, after excluding Although the past year s earnings considered by themselves 



all oiTsetting accounts between the companies. 7°"''? ^^.■"'■=^"* a dividend upon the common stock, your directors 



lelt that It would not be prudent to pay one on account of the 



a-, u , i BY-LAWS OF THE COMPANY. , , , , Uncertainties which existed in business, and the company's cash 



The by-laws of the company, as amended at the last stock- position 



holders' meeting, provided for the election of a chairman and a inventories 



vice-chairman. At the December meeting of the board of di- Inventories of manufactured goods and materials have been 



rectors, your former president was elected chairman, Mr. Lester taken on a conservative basis, having in mind the decline in 



Leland, vice-chairman, and Mr. Charles B. Seger, at the time values as a consequence of the closing of the war. 



president of the several companies comprising the Union Pacific maintenance. 



Railway System, was elected president. Mr. Seger thereupon The plants and properties have been maintained in the highest 



resigned as president of the Union Pacific companies, and has state of efficiency and adequate charges for depreciation have 



since been active in the performance of the duties of president of been made. 



this company. Mr. Seger supplies a much needed addition to our export business. 



official staff. He was not a stranger to our company, having The export sales of the company outside of war orders were 



been a director and member of our executive committee for maintained during the year, and with the close of the war your 



nearly two years, and his election to the presidency has been re- directors believe there is a greater opportunity offered in this 



ceived with universal approval and satisfaction by our entire field than ever before and preparations are being made to 



organization. materially extend our export business. 



volume of business and profits. operating divisions. 



The net sales of the company for the year 1918 were $215,398,- The operating divisions of the company are now under the 



425.04, an increase of more than $39,000,000 over the sales of the direct charge of the president. The president presides at the 



previous year. The income from sales, after deducting cost of meetings of the operating council and reports their recommenda- 



manufacture, depreciation, property taxes, selling and general ex- tions to the executive committee, of which body he is also a 



penses, cash discounts allowed customers for prepayment, and member. Greater directness and efficiency are thus obtained. 



adequate reserve for bad debts, amounted to $39,480,631.83 Sumatra rubber plantations. 



From which there should be deducted income The receipts of rubber from our plantations in Sumatra for 



charges, net, including inventory adjustments and 1918 showed a substantial increase over the previous year. We 



provisions for Federal, Canadian and British taxes 19,289,534.86 have taken steps for some extension of the planted area there, 



■ — which, together with the increased age of the trees, should pro- 



Thus leaving the net before interest $20,191,096.97 duce for us more and more rubber each year hereafter. 



