New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-22
j. S. RUBBER FINANCING
Increases Stock by $45. 0OO.OOO
Bio Dividend for Common.

I
A plan for readjusting the capitalization
| Of the United States Rubber Company ana
raising $lO0)O,O0J new funds, one OF the
features being a 100000 common stock
dividend. was laid before the stockholders
/ by President Colt at the annual meeting
! yesterday at New Brunswick. y. j., ana
will be acted upon by them at special
meeting on May 81, TO which date the an
nual meeting was adjourned. At the Spe-
cial or subsequent meeting the manage
ment will submit TO the stockholders a
! further plan, which will involve the re-
! funding Of all the existing obligations OF
! the company and its subsidiaries, and will
make adequate provision FOR the corpora
TONS future needs. This bond issue may
| be as large as S50,o00O00
| There Is outstanding S2j,Oo0Cm common
stock. 100000 first preferred and $4,000,
/ 900 second preferred. "A total Of S50o0oo,
winch it is proposed to increase to Sl2o0Op,-
O00 eliminating the second preferred issue.
The common Is 20 he increased to NO"Oop,
and of the Nj,09O,C0) additional stock of this
class IL is planned to issu" S.o0o,0s0 as n
( common stock dividend Of % per cent. This
dividend, President Colt says, will be war
| ranted by the cOmpany's surplus" which at
| the close of the last fiscal year. on March
81. was 50 1879
or the SiOO0oG20 new preferred stock ,lO,-
0(0,OC0 will be offered pro rata TO all stock
holders at par and accrued dividend, So
,O00 cash thus being obtained. and $500
90 will he used in retiring the 100000
second preferred stock. on the exchange
basis Of one hundred shares OF second pre-
ferred for seventy-iyc shares Of first pre-
ferred.
There would remain unissued so2. 0OO
preferred and 100000 common stock avail
able for future uses Of the company OF
this preferred stock the president suggests,
the $4,000 gained through retirement of
| the second preferred would De available for
"ifer for the minority holdings of the Rub
Der Goods Manufacturing Company.
In presenting this plan. President colt
said that since his annual report was is
| SUED MS suggestion that the rapid cxpan-
sion OF the business would soon require
further financial provision had been con-
hrmed by the Unexpectedly sudden de-
velopment Of large and combined competi-
ton. Considerably increased financial pro-
vision was desirable without delay, and il
was for that reason that he was laying the
plan before the stockholders at the ear
Hest opportunity. The rubber tire indus
try. the president told the stockholders,
was only In its infancy and he advocated
the immediate construction by the United
States Rubber Company OF the largest and
best tire plant in the world.
The stockholders reelected the retiring
directors and elected Theodore y. Vail to
'he board. BY a practically unanimous
vote they approved the acts Of the direc-
tors and the executive committee in the
small minority stockholders protested
against the adoption OF the resolutions APP
proving the acts Of the management. bas-
Ing his objection on The allegation that in
side interests had formed q syndicate which
had purchased the Revere Rubber Com
pany. deriving largo profits which should
have gone 10 the stockholders OF the
United States Rubber Company. President
Colt. IN reply said that as the matter had
been discussed at two stockholders meet
ngs and approved by large majority vote
II appeared rather late day to bring 81
up again
United States Rubber common stock
dropped more than points. TO G4i2 on the
announcement Of tie financing plan. 1t
closed at Gjiz, net loss for the day of
u point. The first preferred close ?. point
down and the second preferred mad" net
gain Of points