The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1919-01-22
Annual Report of President kirch to
Stockholders Gives Complete and
Clear Resume OF Last
Years Business.

The following is the annual srepol
# President G.. J. Kirch to the stool
folders of the Standard Four Tir
company:
In calling this meeting to or
der. 1t is our purpose to be as
brief and concise as possible and
with that in mind. we will pro-
coed with the presentation of
few facts with which we feel
every stakeholder in this com
pany should be conversant.
"a The plans which this COM
pany formulated one year ago
were considerably upset and in
some instances postponed by the
thoroughness with which the gov
eminent put the country on a
war basis; also, the physical
and mechanical operation of the
factory was greatly affected and
retarded. to.wit:
(2) First, the capital issues
committee prohibited the sale of
the stock of the company.
(3) Then, the war trade board
restricted the importation of
crude rubber in May to seven
sixteenths Of the previous years
shipments.
az At the time, the war trade
board stopped the importation OF
rubber, no intimation was given
that production OF tires would be
restricted and as we were pro-
ducing approximately twice the
number OF tires of the year pre-
vious and the reduction of i'm
portauons OF crude rubber to less
than half Of the previous year
would, In few months. not only
exhaust our stock of crude rub
Der, on hand, but find us short OF
same even In the face OF our
having sufficient contracts to sup
ply our demands up to 400 tires
per day.
.(5) Accordingly, the govern
ment relieved the situation by
permitting crude rubber users to
purchase any stock in the coun-
try or afloat at that time and to
prevent profiteering. the govern
ment set the price on rubber at
q reasonable figure.
co But we knew that the war
department was reQuisitioning all
ships for transportation and sup
ply service SO we further en-
trenched ourselves by purchasing
approxima tely 100 tons or about
i've months supply Of rubber.
ca We felt protected for the
balance OF the year when. like
lightning out of clear sky, the
war Industries board. on July 81,
announced restrictions of tire
production to so percent of the
previous years record for the
months of August and September.
(8) These restrictions would
have the effect of reducing our
output to one-third Of our capa-
city because our production for
August and September. 1917, was
way below average on account of
shut down.
90 We appealed to the war
industries board for relief and
were permitted to build SO per-
cent of our average monthly pro-
duction.
Q0) On October LIST, the war
industries board announced fur
the restrictions in production
, and set our limit to 105 tires per
day for the months of October,
November and December, allow
ing twenty-five working days OF
eight hours each to the month.
l1) We again appealed, this
time in person, and were success
full in having our limit raised to
$500 tires for these months, or
about one-third of our capacity.
(12) The company clearly saw
that these restrictions on produc-
ton would have the effect of in
creasing our stock supply OF
crude rubber as we had pur-
chased about 100 tons in excess
of our contracts in order to pro-
tect ourselves. However, this
increasing stock supply was no
occasion for worry as the COM
pany has ample capital to take
care of these purchases; also, we
could not cancel our purchase
orders without serious financial
loss. TIL erefore, during the last
five months, we have accumu-
lated and have on hand 200 tons
of raw rubber which was pur-
chased at very low average
price.
(13) Fortunately. the success
of the allied armies terminated
restrictions on production and
since the middle Of December
last, we have been gradually in
creasing our output and within a
short time should reach our for
mer records.
(14) However, war problems
were not our only difficulties.
During the earlier months of the
year, we were gradually increas-
ing our output consisting Of what
our test at that time proved a
good tire, that it would run the