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THE INDIA RUBBER WORLD 



[April 1, 1913. 



The Annual Report of the United States Rubber Co. 



THK annual report of President Samuel P. Colt, of the 

 United States Rubber Co., was mailed to the st 

 of that company on March 6. It is impossible to make a 

 satisfactorj comparison oi the conditions indicated in this report 

 with those of a year ago, as that report covered only nine 

 iis, from April 1 t.i December 31. 1913, whereas this covers 

 the entire calendar year of 1914. The report, however, contains 

 a number of interesting features. For instance, tin stockholders 

 of the company, who in March. 1905, numbered 3,369, increased 

 int. during the next live years, reaching a total 



in 1910 of nearlj 7,000; and that number has also increased ovi i 

 100 per cent, during the last live years, the present number of 

 stockholders being 14,<>1~. 



Another interesting paragraph refers to the increase in the 

 value of plant- during the year, which amounts to nearly 

 $5,000,000, over $2,000,000 of this having heen added to the com- 

 pany's plantation properties in Sumatra. 



Two new departures occurred during the year, namely, the 

 formation of an export company, to hring under one control 

 all the export activities of the various subsidiary companies, and 

 the further organization of the Development Department, which 

 i> evidently an efficiency movement on a large scale, promoted 

 to see that every part of the company's great organization is 

 kept constantly at its best. 



The major part of President Colt's report is given below : 



To the Stockholders of the United States Rubber Co.: 



This report to the stockholders for the year 1914 covers the 

 first full year since the fiscal year of the company was changed 

 to correspond with the calendar year. 



The treasurer's report, appended hereto, gives the consolidated 

 general balance sheet of the United States Rubber Co. and all 

 its subsidiary companies as of December 31. 1914. and the con- 

 solidated income statement of the United States Rubber Co. and 

 all its subsidiary companies for the year ending December 

 31. 1914. 



Last year for the fust time the consolidated statement included 

 all of the subsidiaries of the company. This year the assets and 

 liabilities of the branch stores of the company are so treated in 

 llie consolidated statement, although in many cases the branches 

 .mi. incorporated. This, taken in connection with the profit- 

 sharing stock disposed of, accounts tor the decrease of about 

 $3,000,000 in the item of securities owned by the company. 



The number of stockholders of the company shows the fol- 

 lowing increases: 



In March, 1905, the total number was 3,369 

 In March, 1910. the total number was 6,738 

 In March. 1915, the total number was 14,617 



I 1NANI I \l POSITION OF THE COMPANY. 



The company's policy has been to keep strong in cash, the item 

 of about JHI.OOO.OOO cash on hand representing over 50 per cent, 

 of the company's current liabilities outside of such as would of 

 necessity exist in the transaction of its business. 

 PLANTS AND PROPERTIES. 



The increase over last year of about $4,850,000 in plants and 

 properties includes an expenditure during the year of about 

 $2,100,000 on the company's rubber plantations in Sumatra. 

 about $870,000 on enlargements of Morgan & Wright tire plant 

 at Del at $355,000 additions to tire and other mechanical 



plants, ah. mt $360,000 additions to footwear plants, about $170.- 

 000 additi claiming plants, about $100,000 purchase of 



real t general laboratories. Fifty-eighth street and 



Eleventh avenue. N'ew York, about #20S,000 additions to Cana- 

 dian property, and about $650,000 resulting from consolidation 

 of branch stores. 



\ OLUME Dl BUSINESS. 



Tin- net sales of tin company for the year were $83,678,812.05, 

 which is a reduction of about $10,000,000 from tile sales of the 

 previous twelve months. This has been occasioned by the pre- 

 vailing lower selling prices of manufactured goods — the volume 

 of merchandise sold having been somewhat greater than in the 

 previous twelve months. The depression of business undoubt- 

 edly has curtailed the sales of tires and mechanical go ids 

 PRO! I I - 



The net profits, before deducting interest charges, amounted 

 to 69,776,873.29; after deducting interest charges, the profits were 

 $7,868,223.54. Dividends to the minority stockholders in certain 

 of our subsidiaries amounted to ?2(lt),8M.75. Dividends for the 

 year upon the preferred stock and common stuck of the com- 

 pany amounted to $6,945,388, leaving a surplus of profits of 

 $721,950.79, which is equivalent to about 2 per cent, upon the 

 common stock additional to the 6 per cent. paid. 

 DEPRECIATION. 



While the company has followed its usual custom of making 

 no one specific charge for depreciation, the fixed properties of the 

 company have been maintained in the highest state of efficiency, 

 the cost thereof being charged to expense account. Inventories 

 "f manufactured goods and materials have been brought down to 

 correspond with the lower prices prevailing. An estimate of the 

 amount involved in such reductions is not less than $1,500,000. 

 UNITED STATES RUBBER EXPORT CO.. LIMITED. 



In the latter part of 1913, an investigation was made of the 

 export business of our various subsidiary companies, and of 

 export conditions and possibilities in general, for the purpose of 

 more systematically and efficiently pushing this department of 

 tin. business. After studying the matter in this country, two 

 representatives visited many of the principal countries abroad, 

 ami as a result of reports of this investigation, the United States 

 Rubber Export Co.. Limited, was organized and commenced 

 business on December 15, 1914. 



THE DEVELOPMENT DEPARTMENT. 



During the past year important progress has heen made 

 through the development department in collecting, disseminating 

 and applying the vast store of rubber knowledge and experience 

 possessed by the United States Rubber Co. New processes and 

 products of value have been developed and many of the mills 

 have been equipped with the most up-to-date machinery for the 

 use of patented methods and apparatus. Earnest co-operation 

 and initiative on the part of the operating forces have hastened 

 this constructive work, some of which has required years to 

 perfect. As competitive conditions increase, maximum thor- 

 oughness becomes a greater need. Much of the effort of the 

 development department has been directed toward increasing 

 the flexibility and resourcefulness of our organization, a matter 

 of vital importance during such critical and changing periods a£ 

 those now confronting us. 



EFFECT nl" WAR UPON OUR BUSINESS 



During the early stages of the war. its effect on the footwear 

 business was not what might have been expected, rubber foot- 

 wear not having heen any part of the army or navy equipment 

 for most of the nations at war. In December, however, this 

 situation changed, and the necessity became so apparent that 

 rush orders wen - ■ i i t over here and rubber boots, warm-lined 

 rubbers and wool boots to the extent of one and one-half mil- 

 lion dollars in value were shipped to England and to France. 



Our sales in mechanical and miscellaneous goods usually re- 

 flect general industrial and railroad conditions, and consequently 

 during the first part of this year this department showed a de- 

 crease in volume of sales as compared with the same period of 

 the previous year. This condition having become intensified by 



