May 1, 1919.] 



THE INDIA RUBBER WORLD 



437 



FIRST ANNUAL REPORT OF THE REPUBLIC 

 RUBBER CORPORATION. 



THE first annual report of the Republic Rubber Corp., New- 

 York City, and its subsidiaries, The Republic Rubber Co., 

 Youngstown, Ohio, and the Canton-Blackstone Co., Canton, 

 Ohio, formerly the Knight Tire & Rubber Co., has 

 been issued to stockholders. The condensed balance sheet be- 

 low covers the year 1918, during which the company was forced 

 to meet not only the unusual conditions prevalent in the in- 

 dustry, but also its own problems of reorganization and re- 

 financing. Under the circumstances the directors regard the 

 net results with satisfaction. All expenses occasioned by the 

 reorganization and additional financing have been fully absorbed 

 and the Federal taxes provided for. All assets of doubtful 

 value have been entirely written off, and the additional working 

 capital needed has been supplied by the sale of second preferred 

 stock. The business of the company is rapidly becoming normal 

 and the directors regard the outlook as excellent. 



The condensed balance sheet at the close of business December 

 31, 1918, follows: 



Cash on hand and in banks $493,884.96 



V. S. Liberty Loan bonds 61,070.00 



L'npaid stock subscriptions (paid in cash to Feb- 

 ruary 15, 19i9, and due April 1, 1919) 1,500.000.00 



Trade acceptances receivable 263,057.66 



Notes receivable 32.278.74 



Accounts receivable, after allowance for doubtful 

 accounts, cash discounts, etc., in the amount of 

 $200,664.75 1,747,699.65 



Inventory (after certain reserves) 6.843,245.46 10.941,236.47 



Otheh Assets. 



Investment in associated companies 375,836.05 



Deferred stock subscriptions, payable Julv 1 and 



October I 512,780.00 



Trade acceptances receivable past due 61,902.39 



Notes and accounts receivable past due 84,743.31 



Employes* stock contracts, notes and accounts 



receivable 126,817.49 



Miscellaneous Investments 8,197.95 



1,170,277.19 



Perm.inent. 

 Property, plant, and equipment as appraised at 

 reproduction value adjusted to December 31, 



1918 5,486,902.27 



Less: allowance for depreciation and obsolescence 879,928.99 4.606,973.28 



Patents and patent rights 2.00 



Deferred. 

 Expenses applicable to future operations 109,425.29 



$16,827,914.23 

 LIABILITIES. 

 Current. 



Notes payable: borrowed money $5,3U4,7£0.00 



Accounts payable: current purchases, payroll, 



commissions, etc 783,967.65 



Accrued taxes and preferred dividends 173,634.36 



~ $6,262,352.01 



Reserve for contingencies 37,092.51 



Other liabilities 27,060.00 



Nominal. 

 Capital stock. 



First preferred 7 per cent cumulative, author- 

 ized $10,000,000, issued and held for ex- 

 change , $6,767,400,00 



Second preferred 8 per cent cumulative con- 

 vertible, authorized $2,500,000, subscribed.. 2,100,000.00 

 Common. 



No par value (authorized 650,000 shares) is- 

 sued and to be issued 317,721 shares 1,634,009.71 



Net worth 10,501,409.71 



$16,827,914.23 

 OFFICERS. 



The officers of the company are: Guy E. Norwood, president; 

 L. T. Petersen, vice-president in charge of production; Harvey J. 

 Woodard, vice-president in charge of sales; Mark W. Roe, vice- 

 president in charge of plant; C. F. Garrison, secretary; M. L 

 Arms, 2nd, treasurer; Arthur L. Irish, assistant secretary; H. J. 

 Stambaugh, assistant treasurer ; John T. Harrington, general 

 counsel. The directors are Guy E. Norwood, L. T. Petersen, 

 M. I. .\rms, John T. Harrington, Robert Bentley, C. H. Booth, 

 W. M. Coleman, R. E. Cornelius, H. M. Gorlick, Richard Gor- 

 lick, R. C. Steese, John Tod. 



STATEMENT AND BALANCE SHEET OF THE 

 INTERCONTINENTAL RUBBER CO. 



T^HE directors of the Intercontinental Rubber Co., 15 Exchange 

 ■*■ Place, Jersey City, New Jersey, have submitted to their stock- 

 holders the following balance sheet and statement of profits for 

 the five months ending December 31, 1918, it having been voted 

 by the stockholders at the last annual meeting to change the 

 ending of the company's financial year from July 31 to Decem- 

 ber 31. The statements have been prepared and certified to by 

 Messrs. Loomis, Suffern & Fernald. chartered public account- 

 ants. New York City. 



CONDITIONS IN MEXICO. 



During the period reflected in these accounts there was no 

 material change in Mexican conditions, although the epidemic 

 of influenza placed an additional handicap on all operations. 

 Production of the Torreon factory was 1,284,503 pounds of 

 rubber (20 per cent moisture basis), 



STEAMSHIP INVESTMENTS, 



On October 22, 1918, the remaining inve.slment of the com- 

 pany in steamship securities was disposed of for cash, and a 

 substantial portion of the profit earned during the period 

 resulted from this transaction. 



AMERICAN CONGO CO. IN AFRICA. 



The suspension of hostilities in Europe has not materially 

 affected the company's business. The activities of the American 

 Congo Company in Africa have been reduced to a minimum since 

 ihe beginning of the European war, and although a partial 

 resumption is being arranged for, the directors do not feel that 

 the outlook is particularly encouraging. 



SUMATRA PLANTATIONS. 



Development of the Sumatra plantations continues to be highly 

 satisfactory. The demand for crude rubber has been good, 

 although at somewhat reduced price levels. 



INVESTMENT SECURITIES. 



The item of investment securities shown on the balance sheet 

 represents bonds, short term notes and Liberty Loan Bonds. 

 It was necessary to deduct from income the sum of $46,526.50 in 

 order to adjust this account to the market quotations of De- 

 cember 31, 1918. 



By Order of the Bo.\rd of Directors, 

 .\pril 7, 1919. WiLL.\RD P. Smith, Secretary. 



CONDENSED BALANCE SHEET— DECEMEBER 31, 1918. 



Assets. 

 Investments in 



Merged and subsidiary companies: 



By cash $3,327,241.59 



By stock issues 28,198,575.30 



T. . . , , • r UT ■ ^ $31,525,816.89 



Patents (exclusive of subsidiary comjianies) 15 14177 



Accounts and notes receivable, etc. 



Advance to subsidiary companies $313,885.54 



Sundry accounts 35.004.72 



348,890.26 



Advances on rubber 158,452.12 



Investment securities 1,928.173.54 



Cash 257,978.58 



$34,234,453.16 



Liabilities. 



Capital stock: common $29,031,000.00 



Accounts payable, taxes accrued, etc 51,721.68 



Reseive accounts 734,433.71 



Surplus (as below) 4.417,297.77 



$34,234,453.16 



Surplus Accounts. 



Surplus July 31, 1918 $4,169,624.56 



Net profits and income from investments, etc. $281,571.93 



-\dnunistralion, general expenses and taxes 33,898.72 



■ 247,673.21 



Surplus, December 31, 1918 $4,417,297.77 



