

THE INDIA RUBBER WORLD 



[August 1, 1915. 



THE UNITED STATES RUBBER CO.'S DIVIDENDS. 



AT a meeting of the board of directors of the United States 

 Rubber ( o., held July 1. a quarterly dividend of 2 per cent 

 was di :l the first preferred stock and a quarterly dividend 



cent, on the second preferred stock, payable July 31 to 

 stoi : o) record at 3 1'. M., July IS, 



derable speculation in financial circles as 



thi companj would take regarding dividends 



on its common stock. This matter was taken up at that meeting 



M Samuel P. Colt, who made the following sug- 



ii m : 



"1 li ht it might be helpful to outline to the board of 



directors the following points bearing upon the payment of divi- 

 dends upon the stocks of our company at the present time: 



"1. 1 assume there will be no question as to the payment of 

 the regular dividends upon the preferred stocks and that the 

 'Oily doubt in the minds of the directors will be as to the advis- 

 ability tij a dividend at this time upon the common stock. 



"2. At the meeting of our board immediately following the 

 outbreak of the European war. it was quite evident that a num- 

 ber of our directors were averse to the then payment of the 

 common stock dividend and that the then hope of an early ter- 

 mination of the war stress of financial conditions then existing 

 and motives of patriotism influenced their action in favor of a 

 dividend. The feeling of conservatism on the part of the board 

 then begun has continued to increase until it would seem that a 

 considerable number of directors are now opposed to the present 

 declaration of a common stock dividend. 



"3. In 1901, when your present president was first elected, 

 the company was not paying dividends on either the pre- 

 ferred or common stocks. In 1904 dividends were resumed 

 on the preferred stock and have since been continued regu- 

 larly. In 1911, after considerable pressure on the part of com- 

 mon stockholders, dividends at the rate of 4 per cent, per 

 annum were begun upon the common stock and continued at 

 that rate until April, 1913, when the rate was increased to 6 

 per cent, per annum. This increase was made largely in 

 i to effect the purchase of the Rubber Regenerating Co., 

 winch company was paid for by the issue of $6,000,000 of the 

 common stock of the United States Rubber Co. 



"4. In the last annual report of the president to the stock- 

 holders, dated March 4. 1915, appears the following: 



'THE OUTLOOK.' 



'While at the moment there is nothing discouraging in 

 relation to ur business, your president feels that the 

 year 1915 is one of uncertainty; and it may be consid- 

 ered good fortune if we are able to maintain or to in- 

 crease our volume of sales and profits as compared with 

 last year. When the uncertainties caused by the war 

 shall have ceased, when we shall receive a substantial 

 part of our crude rubber from our Sumatra plantations. 

 and when we shall have realized our anticipations from 

 our development and operating departments, we fully 

 expect to enjoy prosperity greater than we have hereto- 

 fore known ' 



"That report further shows that the surplus profits of the 

 company for the year 1914 were $721,950.79 over dividends paid 

 on the preferred and common stocks during the year. It further 

 shows that $4,850,000 was expended during the year in fixed 

 properties, including the rubber plantations in Sumatra, which 

 sum. less surplus of earnings, was taken from the quick capital 

 of our company. 



"5. The net earnings of the company so far this year are sub- 

 stantially the same as those of last year, and as a rule the earn- 

 in-- of the latter half of the year exceed those of the first half. 

 The unexpected prolongation and extension of the European 

 war have presented uncertainties which it may be urged make it 

 now especially desirable to maintain an unusually strong finan- 

 cial position. The pendency of the war makes it prudent to 

 carry a larger Stock of crude rubber than in normal times, in- 

 volvi ise of a larger amount of quick capital. 



"6 common stock being $3o.000.000, 6 per 



dividends the- unt to $2,160,000 per annum. It is 



undoubtedlj desirable that current bank loans should be reduced 

 in volumi price of crude rubber, resulting from its 



cultivation in the East, opens up new lines of manufacture, in 

 the devel ! which capital is specially desirable. Should 



line to suspend common stock dividends for 



a time, the company will undoubtedly be greatly strengthened 

 thereby and it is not unreasonable to believe that such action in 

 the end will prove more advantageous to our common stock- 

 holders and profit sharers than the present distribution of cash. 

 "7. While competition in the rubber manufacturing business 

 promises to lie keen in the future, your president looks to see 

 the United States Rubber Co. continue a prosperous business, 

 and with the coming into bearing of our rubber plantations in 

 Sumatra, from which we will in the not distant future receive at 

 its production cost a substantial amount of our crude rubber re- 

 quirements, we may reasonably look for greater profits than here- 

 tofore realized " 



The board of directors on hearing the president's suggestion 

 as to the dividend on the common stock took the following ac- 

 tion : 



"The directors of the United States Rubber Co, having heard 

 I he suggestions of the president in regard to the payment of a 

 dividend on the common stock at this time, and having fully- 

 considered the question, are unanimously of the opinion that the 

 excess of earnings over dividend requirements is too small to 

 warrant the payment of this dividend at this time in view of the 

 amount of the company's floating indebtedness, the additional 

 c.iint. d required to develop new line- of business, and the un- 

 certain conditions arising from the European war. In their view 

 .i sound and conservative business policy requires that the money 

 necessary to pay a dividend on the common -lock should at this 

 time be used to reduce the floating debt and to increase the 

 working capital: and they believe that this action will strengthen 

 the position of the company, and, in the end increase the value 

 of both the Common and preferred stocks." 



TRADE NEWS NOTES. 



The directors of the Xew Jersey Zinc Co. voted unanimously 

 on July 7 to increase the capital of the company from $10,000,000 

 to $35,000,000 by declaring a 250 per cent, stock dividend. The 

 war has developed such an increased demand for zinc that the 

 zinc mines are being worked overtime to meet it. 



The Montreal division of the Canadian Consolidated Rub- 

 ber Co., Limited, has recently filled orders for suction hose, 

 pneumatic tool hose and hip and knee boots for use by the 

 C. P. R. Overseas Engineering force in France. This force 

 i- composed of construction engineers and workmen, who 

 will assi-t in bridge building, road making, etc.. in the war 

 area. 



The Rubber & Celluloid Harness Trimming Co., which con- 

 trol- the Rubberset Co., of Newark. Xew Jersey, is suing the F. 

 W". Devoe & C. T. Raynolds Co., of Xew York, for alleged un- 

 fair competition in the sale of brushes. The action involves the 

 use of the terms "rubberset" and "set in rubber." 



The Goodyear Tire & Rubber Co.. Akron. Ohio, has inaugurated 

 a stock system for dealers, enabling them to quickly determine 

 what tires are in stock. The system employs tags in live colors 

 for no-rim-cut tires, quick detachable clincher, regular clincher, 

 tubes and miscellaneous. Each tag has an attached coupon which, 

 after being properly marked, is torn off and kept for a desk 

 record, while the stub is fastened to the tire in the stock room. 

 Blank division cards are also provided for use by the dealer in 

 making his own index for this system. 



In the suit for infringement under patent Xo. 799.662. Sep- 

 tember 19. 1905. brought by the Allen Auto Specialties Co., Xew 

 York, against E. G. Baker, in the United States District Court 

 for the Southern District of Xew York, for offering for sale 

 and handling the Gilbert tire case embodying the water-shed 

 tlap. Judge Hand has issued a decree in favor of the Allen 

 company, enjoining Baker from selling thi- Cilbert type of 

 cover. 



The St. Mungo Manufacturing Co., of Xewark. Xew Jersey, 

 which makes the "Colonel'' golf ball, has opened offices in the 

 North American Building in Chicago, and in the Lachman 

 Building, in San Francisco. 



The Standard Underground Cable Co.. of Pittsburgh, Penn- 

 inia, has issued a condensed catalog of its ignition, lighting 

 and starting cables for automobiles, motor boats and motor- 

 cycles. Twenty different types are illustrated and described. 



