The daily morning journal and courier., 1896-05-21
SOME ORGANIZATIONS
As to the United States Rubber Company's
 RnSlnekS.

Business.
 New York, May 2o.-President Evans of the United States Rubber company, in his annual report to the stockholders, discusses the condition of the com pany's business, with especial reference to some of the disadvantageous results of the combination of plants, some of which he shows to be a drain on the earnings of the Trust. On this head he says
 Tn his annual report year ago the president pointed out with some detail the advantages of concentrated manu- fracture, and his recommendations ther- upon, but do not think that the meas ure of success has been reached in that direction which the best interests of this business demand. The manufac- ture O. a large number of brands of goods in isolated factories, when there is not sufficient demand for each brand to fully utilize the organization and the mancinery of the plant in which that brand is made, adds very largely to the cost of goods, inasmuch as all fixed charges of each individual plant must be maintained and met, all sala- ries necessary to the organization must be paid, and capital is required to con- duct the business, as well as to carry in each such plant @ separate stock of raw materials as we'll as of manufac- tured goods at each agency point. Each individual plant must also be maintained and kept fully equipped, leading to large expenditures of ma chinery and equipments of all kinds. Just as good machinery is necessary, and just as complete equipments neces- sary for factory to make half it's possible product as for one to make it's full product.
 T feel that this company should have accomplished more in this direction during the past year or two than they have. Bear in mind that the combined facilities for production far exceed the probable demand, and that in conse- quence not one of our productive plants have been utilized to it's fullest capaci- ty during the year, nor has any one of the producing plants run continuously even at a moderate production, through out the year. It would not be difficult to prove that this has caused the loss of hundreds of thousands of dollars to cur companies in the aggregate.
 Wether the plant be large or small the
 results of the business of individual
 companies will clearly prove that the largest percentage of profit, other things being equal, have been obtained in the factories which have been most fully utilized. The difference in the cost of goods between one plant run to it's fullest capacity 300 days in the year and ap lant of corresponding eff ciency run at one-half or two-thirds of the time is probably not less than to per cent. on the value of the goods, and by many of those conversant with | details is estimated at much more" | In the matter of the cost of raw ma terials President Evans says:
 Tt is unquestionable that we shall | have to face higher values in crude rub Der fo rthe year to come, the price to- day being something like eight or ten cents pound higher than the average | of last year. This condition of the crude market may be in some measure due to | manipulation of producers or holders I but is largely due to the increased con sumption of rubber in other lines ot manufacture than boots and shoes. This | is notably true in the bicycle business | the rapid development of that bringing | about a large consumption of rubber fol | the pneumatic tires. The increase oi | crop has not been proportionate to this
 increase of consumption in this newly l developed business. This increased cost
 of the crude is an important item, in
 asmuch as the consumption of the vari- 1 ous factories in which this company is 1 interested is from seven to ten million | pounds per year"