The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-01-22
CONDITION TODAY OF THE
STANDARD FOUR TIRE COMPANY


weather. our tests began to show
trouble. Furthermore, from GER
tain localities, our dealers began
to send in reports of unsatisfac-
tory mileage. About this time,
our chemist was drafted into war
service. Our organization, being
una BILE to remedy the trouble, the
services of Mr.. Swinehart, the
veteran tire expert, of Akron,
were again procured for series
OF consultations. The troubles
were gradually reduced, but not
finally overcome until we secured
the services of Mr.. ]. B.
Schleeter as chemist and superin-
cation and negotiations. He at
once made decisive changes, all
of which have been increasing
the quality of our output so that
today we are producing a tire
that, under all tests, has given
the required mileage.
(15) AS, after the storm
comes sunshine, so today, We
face the new year with a good
product to offer and a good or
ganization. 1t has taken almost
three years to bring about this
result, but in the face of the
difficulties enumerated. the COM
pany has made marvellous rec
ord. Bear in mind, out of the
profits of 1917, the dividends on
all preferred stock, some dating
back to July, 1915, were paid up
to October LIST of 1917.
(16) Income and excess profit
taxes amounting to over $4,000
were paid. Also 20 percent
stock dividend was issued out OF
the profits for the same year and
in 1918, with our production nor
NAL for only seven months, we
have paid the preferred stock
dividend on greater capitaliza-
ton. In fact, it amounted to $685.
393.41. This was greater than the
previous years payments on pre-
ferred stock by $16,941.94.
(17) In addition to this, we
have profit and loss account
today of $120,04l.S7. from which
must be deducted the amount Of
the income and war taxes and
three months preferred stock
dividend due next year, leaving
substantial balance to the
credit Of the common stock.
(1S) Further, bear in mind.
that during the last three months
of 1918. the reduction of our out
put. has so increased the cost of
our tires owing to the fixed over
head cost of the plant and organi-
cation which had to be held in
tact so that we could not sell the
output of these months at a pro-
fit.
(19) Again, the future is
bright for with the production
increased to the normal output,
the average overhead cost per
tire will be so reduced that pro-
fits can be realized from sales
on same.
(20) The government has re-
moved restrictions on the manu-
facture Of automobiles and ac-
cessories. Therefore, the demand
for tires will be more evident
with the opening of the spring
season.
(2D In view of he fact that
during practicaly The first year
of operation, when the founda-
ton of the entire organization
was being built up, the company
broke records for success and
during it's second year when the
entire world was at war and the
companies profits for November
and December were taken UP by
increased costs occasioned by re-
strictions on production, the
company duplicated it's initial
success, we have every right to
figure that, with the present
bright and prosperous industrial
outlook, the profits of the com
pany will be greatly increased by
the time you are again called to-
gether in annual meeting.
(22) | wish to thank all who
have assisted me and contributed
to the management of the com
pany's affairs during the past
three years and aided in guiding
its destiny through the treacher-
GUS waters of turbulent indus
u tdl ousoht dOoul Wy
the world war and who have
aided in placing the Standard
Four Tire company in its present
splendid business and financial
condition.
(23) AS many of you know, at
the time l was elected on your
board of directors and as the
business manager of your COM
pany, l held like positions with
two other successful manufactur-
ing companies of Keokuk. and
now that your interests are in
such splendid shape, feel that
my own business should again
have my undivided attention;
and therefore, l am not candi-
date for reelection on the board
of directors for the ensuing year
However, if the incoming board
of directors so desire. l win con-
tinue my duties as general man.
ager until such time as they may
be able to secure a suitabl sue
ceSsor.