New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-17
RUBBER OFFICIAL QUITS
Watson, Treasurer of United
States Co., Sewers Connection.
ACTION DUETo DIFFERENCES
Absorption of Revere Through
Syndicate to Come Up al
Annual Meeting.

,Johr, J Watson. jr-. it was announces
yesterday. had resigned as treasurer IL
rector and member of the executive COM
r,ittee of the United States Rubber COM
many. and has severed his official cohhec-
ton with all of its subsidiary companies
No cause was assigned for the STEP pu''
according TO Wall Street report 1t was que
In mart TO differences with another interest
IN -be CORPORATION. in which the retiring
officer has long held a prominent position.
Mr. Watson came 10 this city in 1901 from
Providence. where he had been treasurer OF
the Joseph Banigan Rubber Company 10
become second assistant treasurer OF Ihe
United States Rubber Company. or winch
he was elected treasurer in the spring u
1904 He was the active head of the COM
many for q year or more, In tie absence Oh
President S p. Colt because OF Illness
After President Colts return MI watson
was elected president Of the Rubber GoouS
Manufacturing Company. as successor 10
Inc late Charles H. Dale, in November,
1905. holding the Office until the flrst OF TINS
wear. when he was succeeded by Elisha ;.
Williams, who had been general manager
Of the Revere Rubber Company
At the annual meeting Of The United
States Rubber Company at New Bruins
he asked. among other things. 10 pass upon
the transaction through which the Revere
F+-f,rer Cor1panv was acquired by the
United States Rubber Company a few
months ago. and II is said to be not IN
likely that some objections may be regis
tered by stockholders. The transaction was
outlined in some detail in the recent an
1,uai report OF the United States company
Tho cor7pany had unissued at the time
SOFA shares Of its first preferred stock and
s5eNGs9 6 per cent bonds. A syndicate was
formed. which included the president and
some Of the directors and which agreed TO
take al 10 such preferred stock as was not
subscribed for by the stockholders, ana
also 10 buy at par s. 100000 Of the bonds
and. at the option Of the company, TO take
il addition. up to December -, 1916, the
remaining s. $50 COO at par.
The syndicate took 7.617 shares Of the first
preferred stock. the quantity not taken by
the stockholders; bought S2,5e9O0O bonds at
r1ar. anI loaned the company at 8 per cent
interest s2,500,0e0 on the optioned S2,SooO0O
Of bonds. About 100000 was provided. Of
which 81 000.GeO went for the purchase of the
s. 100000 stock of the Revere Rubber Com
l,aIly. at 500 q share; S1,000000 for the pur-
chase OF stock of the Canadian Console
100000 was used as additional working
capital
one Of the agreements with the syndi-
cate. as explained IN the annual report was
that the syndicate was to receive the net
r,roffts of the Revere Rubber Company until
December 81. 1911, UP to the amount of
500. 0O0. any excess to be divided with the
United States Rubber Company. In add
ton. the syndicate profted through the sale
of the S2-5e0 600 bonds. which cost IL par
and which were disposed of, it was learned
Yesterday. at TO-, the virtual commission
from this source being per cent or
$4,000.
More or less criticism of these terms has
been heard during the last few days, and II
has been reported that the syndicate would
furr over 70 the United States Rubber Com
pauv the profits accruing TO It These re-
ports however, are understood TO be with
out foundation. The opportunity to secure
the Revere Rubber Company. it was ex-
planned yesterday, had come unexpectedly
and had to be erasped promptly, and it was
for that reason that recourse was had TO q
syndicate embracing men thoroughly &C
quainted with the rubber industry rather
than to the banks, which might not have
supplied the funds without more or less de-
lay for investigation and might not have
ptaced as high d valuation as par on the
bonds. the first Sl5oo0,eo0 of which were
sold TO a syndicate of bankers IN the fall
Of 1908 at 9461. The syndicate which fig
ured in the Revere Rubber Company deal.
Il was added, had between fifty and sixty
members.