1960s

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A. Argentine complex will make chemicals, synthetics for Argentine tire industry.
B. Turkish plant fills needs of growing Near East tire market.
C. New Scotts Bluff, La. plant will double ABS plastic capacity.
D. New Winnsboro, S. C. plant makes improved nylon tire cord.
E. Sto-Chem in Bromsgrove, England, manufactures synthetic latices that are marketed in England and on the continent.
Right: New Laredo, Texas, tire proving facility is now in operation. At top, test driver rounds curve on high speed track. Center, tires are tested for durability on cobblestone roadway. At bottom, part of 80 vehicle test fleet lines up on track. Laredo facility is on 6,900-acre site, employs more than 100 persons, logs more than 25,000,000 tire test miles annually.
U.S. ROYAL LASTIK TURK A.S.

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Tire Testing Facility
At Laredo, Texas, we are now operating the most modern tire proving ground in the industry. On its four-lane, five-mile circular track, tires can be tested at speeds up to 140 miles an hour, and eventually at 200 miles an hour. Other courses and tracks at Laredo are designed for testing and evaluating farm and off-the-road tires, tire cords and carcasses, and skid resistance characteristics. A two-mile course constructed of gravel has been built for determining how well tires can withstand chipping and cutting, and how treads can be designed that will not pick up stones in the grooves. There is an additional two-mile unpaved road for off-highway testing.

Improved Textiles
At Winnsboro, S. C. a new unit is now in operation that produces an improved nylon cord for tires by a hot-stretch process, and construction is now underway on a new plant to produce our newly-developed piece-dyeable polypropylene fiber for use in carpets, upholstery and other consumer products. In Gastonia, N.C., we are now operating a new plant producing Yvrone, our new stretchable spandex fiber. In Winnsboro, we are also building a new research and sales headquarters for our Textile and fibers division.

Chemicals and Tires in Japan
U.S. Rubber has formed a joint company with Sumitomo Chemical Company, Ltd. to turn out synthetic plastic and rubber polymers. Also in Japan, we have made a substantial investment in a tire plant to provide a production base for our tires in the Far East.

Three Canadian Projects
In western Canada we have completed a new plant to produce a variety of chemicals. In Montreal, we are erecting a reclaimed rubber plant which will have an annual capacity of 25 million pounds, enough to meet the needs of the Canadian market for this product. In Ontario, we will build a plant to supply nylon and rayon tire cord for our Canadian tire plant. In Canada, where we are the leading manufacturer of tires, we continue to expand and modernize our facilities.

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largest and most diversified rubber company, our tire,
footwear and chemical business continues to expand.

Two Plants in Italy
At Turin in Italy we have a 50 per cent interest in Naugatuck-Rumianica, a producer of rubber and agricultural
chemicals, and other products that are sold throughout
the Common Market. In Milan, U. S. Rubber has acquired a majority interest in Rub-Co-Plast, a company
that will produce our line of coated fabrics and Royalite
products.

Information Center to Cut Costs
First of a series of management information and data
processing centers is nearing completion at Naugatuck,
Conn. The center’s modern electronic data processing
equipment will help speed such management functions as
purchasing, sales forecasting, production planning, inven-

A
B
C
D

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tory control, traffic and accounting, and is expected to
provide important savings in costs.

New Technical Center
A technical sales service center is now operating at
Naugatuck, Conn. There, in a new and modern building
more than 100 scientists, engineers and technicians provide technical services to customers who use our chemical, rubber and plastic products.

Tire Plant in Common Market
In Liége, Belgium we are constructing a new plant which
will be the most efficient tire producing unit in Europe
and will replace an obsolete tire plant we now have in
Liége. It will place us in a favorable position to compete
in the Common Market. We also operate tire plants in
Aachen, West Germany; Clairôix, France; and in Edinburgh, Scotland.

A. New Canadian plant in Edmonton,
Alberta, produces chemicals.
B. Italian plastics plant now manufactures coated fabric line.
C. Italian plant makes rubber chemicals
for the Common Market.
D. U. S. Rubber has made investment in
Japanese tire factory.
E. Information center at Naugatuck is
first of several such centers to be built
in United States. Electronic equipment
quickly processes information here to
increase efficiency and reduce costs.
F. New technical service center is in full
operation at Naugatuck, Conn. Here
100 scientists, engineers and technicians serve Naugatuck’s customers.

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A. New Belgian tire plant will serve the Benelux market.
B. Synthetic rubber will be made in new Painesville, Ohio plant.
C. Australian investment will include new tire factory.
D. Reclaimed rubber plant in Montreal will meet Canadian market needs.
E. Spanish footwear plant is our first investment in Spain.

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Synthetic and Marvinol Expansion

In Painesville, Ohio, construction has started on a new facility for the manufacture of synthetic rubber. Initially, the plant will produce Paracril, our oil resistant synthetic, but eventually we expect to make other types of synthetic rubber there. At Painesville, we are also expanding our facilities to manufacture Marvinol polyvinyl chloride resins.

First Investment in Australia

U. S. Royal tires will be manufactured in Australia. The Company has purchased an interest in S. A. Rubber Holdings Limited, and to supplement these facilities a new tire plant will soon be built on a 100-acre site in Adelaide. This investment will also give us a potential base in Australia for the manufacture of an entire line of consumer and industrial rubber and plastic products.

Footwear in Spain

For the first time, we have made an investment in Spain. We have acquired a controlling interest in Samper, S.A., a well known Spanish shoe manufacturing company located in Elche. It produces rubber, leather and fabric footwear both for the Spanish domestic markets and for export.

Footwear Plant in Southeast

In Thomson, Ga. production of Keds footwear will soon start in a new plant. This new footwear plant permits us to serve the rapidly expanding footwear market in the southeastern states.

Expanded Royalite Plant

We are equipping a plant in Warsaw, Ind. to meet the rapidly growing demand for Expanded Royalite, our thermoplastic laminate that has been successfully used in the fabrication of travel trailers, engine covers, automotive hoods and fenders.

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Financial Review

1963 Sales and Profits Affected by Strikes
Although sales of most products in 1963 were equal to or better than 1962, strikes in four of our five tire plants seriously affected our sales of this major product.
A company-wide labor agreement with plants represented by the United Rubber, Cork, Linoleum and Plastic Workers of America was signed in June by the Company and officers of the Union. However, strikes were called in July by local unions at four of our five tire plants, over terms of local supplemental contracts.
One tire plant was reopened in mid-October, another in mid-November and a third was reopened in mid-December, with the fourth plant continuing on strike through the year end.
In addition, there was a 27 day strike at two of our chemical plants, a 10 day strike at a third chemical plant, and day strikes at one of our plastic plants and a 39 day strike at one of our Canadian footwear plants, the largest rubber footwear plant in Canada. The stoppage of production at these plants caused merchandise shortages which affected our ability to fill customers’ orders. As this report was written, all strikes had been settled.
Obviously, the cost of these strikes, both in loss of sales and higher expenses due to abnormal absorption of maintenance and other overhead expenses during the periods the plants were shut down, adversely affected our results from operations.

Sales Lower by 2.6% vs 1962
Notwithstanding the shortages of inventories caused by the strikes, our sales to customers in 1963 aggregated $980,230,000 – the second highest year in our history, being exceeded only by our peak year of 1962 when sales totaled $1,006,793,000.
Higher sales in domestic markets of footwear, foam rubber products, textiles and chemicals, and in practically all areas outside the U. S. A. helped to offset some of the decrease in domestic tire sales.

Other Income
“Other Income, Net” comprises $5,071,000 of dividends from affiliated companies, interest earned on loans to customers, securities and temporary investment of excess working cash, royalties from licensees, and other miscellaneous income items, less $1,967,000 of interest paid on short term bank loans, mostly in connection with foreign operations.
Undistributed earnings of affiliated companies (in which we own 50 per cent or less of the outstanding shares) are not included in our income. Equity in 1963 retained earnings was $362,000, equivalent to an additional six cents on our common shares.

Taxes
During 1963, we provided $24,274,000 for Federal and foreign income taxes. In addition, excise, social security, property and other taxes levied against the Company by Federal, State and local governments amounted to $83,207,000. These direct taxes aggregated $107,481,000, compared with $117,365,000 for the year 1962. In addition, in 1963, the company withheld $42,253,000 from employees’ wages and salaries for personal income and social security taxes.
The total of all taxes paid and collected was $149,734,000.

Foreign Exchange Losses
Foreign exchange losses charged against 1963 income amounted to $1,172,000, chiefly from currency devaluation in the Congo. Comparable losses in 1962 were $2,292,000, principally in Canada, Colombia, Argentina and Brazil.

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United States Rubber Company and Subsidiary Companies

During 1963, the book value of the net assets of our Indonesian plantations was restated to reflect the lower foreign exchange value of the Indonesian rupiah. Such restatement had no effect on 1963 consolidated net income, since the decrease in net assets of $4,077,000 was charged to the Reserve for Foreign Activities, created from prior years’ earnings of the Indonesian plantations.

Net Income and Dividends
Net income of United States Rubber Company and subsidiaries was $22,105,000 for the year 1963, equivalent to $2.90 a common share. This compares with 1962 earnings of $25,694,000, or $3.50 a common share.
As previously indicated, earnings for the year 1963 were adversely affected by the loss of sales and abnormal absorption of maintenance and other costs during the periods certain of our manufacturing facilities were shut down because of strikes.
Preferred stockholders received regular quarterly dividends of $2.00 a share, for a total of $8.00 for the year.
Quarterly dividends of 55 cents a share, or a total of $2.20 for the year, were paid on the common shares in 1963. The same amount was paid in 1962.

Investments
Investments at December 31, 1963 amounted to $21,782,000, comprising $16,677,000 in affiliated companies, in which we own 50 per cent or less of outstanding shares, and $5,105,000 of miscellaneous investments, principally notes receivable from customers due after one year.
During 1963, we made additional investments of $4,400,000 in foreign affiliated companies for the manufacture of tires, plastics and chemicals for the Japanese, Australian and South American markets. Our equity in the net assets of affiliated companies (owned 50 per cent or less) was $25,550,000 at December 31, 1963, compared to $21,620,000 at the close of the preceding year.

Long Term Debt
Long term debt at December 31, 1963 was $157,276,000, comprising $139,436,000 for the parent company and $17,840,000 for foreign and domestic subsidiaries.
Long term debt increased by $6,346,000 during the year, comprising additional foreign borrowings of $11,625,000, less a decrease of $5,279,000 in parent company debt.
During 1963, we purchased and delivered to the Trustee for retirement $2,779,000 face value of our 25% debentures due in 1976. These purchases, together with $3,785,000 debentures held by the Trustees at January 1, 1963, satisfy 1963, 1964 and 1965 sinking fund requirements in full and leave $564,000 as an advance payment against the $2,000,000 due May 1, 1966.
At December 31, 1962, the Trustee held $168,000 of our 25% debentures due in 1967; and we purchased $2,334,000 in 1963. $2,500,000 was required to satisfy our April 1, 1963 sinking fund requirement, leaving $2,000 held by the Trustee.

Property, Plant and Equipment
At December 31, 1963, gross property was $616,458,000 of which $462,087,000 was in the United States; $65,869,000 in Canada, Central and South America; and $88,502,000 in other offshore locations.
The net book value at the close of the year was $218,861,000.
In 1963, a total of $65,491,000 was expended on property, plant and equipment. This total comprised direct expenditures of $44,648,000 for additions and improvements to properties owned by United States Rubber Company and subsidiaries; $12,862,000 towards construction of a new $21 million tire plant being financed with Industrial Revenue Bonds issued by the City of Opelika, Alabama and $7,981,000 expended as our share of capital requirements to increase the manufacturing facilities of domestic and foreign affiliated companies.
The total of all these expenditures is encompassed in the Capital Expansion Program of $300 million commented on pages 5 through 13 of this report.
For 1963, depreciation and obsolescence charged to parent and subsidiary companies’ operations aggregated $27,217,000, compared with $27,657,000 in 1962.

(Additional financial comments are offered on pages 19 and 20 of this report.)

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Consolidated Balance Sheet

Assets
December 31
1963 1962

Current Assets
Cash $ 30,527,920 $ 35,085,343
Short term securities 12,159,809 6,585,225
TOTAL CASH AND SHORT TERM SECURITIES 42,687,729 41,670,568

Accounts and notes receivable, less allowance for doubtful
accounts: $4,503,733 for 1963, $3,930,605 for 1962 175,970,335 170,229,672

Inventories, at lower of average cost or market:
Finished goods 151,825,613 159,531,717
Goods in process of manufacture 23,492,269 23,441,831
Raw materials and supplies 67,860,055 60,765,627
TOTAL INVENTORIES 243,177,937 243,739,175
TOTAL CURRENT ASSETS 461,836,001 455,639,415

Investments In Affiliated Companies, etc. 21,781,729 16,934,821

Property, Plant and Equipment
Land and improvements 9,958,770 9,091,628
Plant and equipment 606,499,551 576,718,982
616,458,321 585,810,610
Less accumulated depreciation 397,597,154 381,770,749
NET PROPERTY, PLANT AND EQUIPMENT 218,861,167 204,039,861

Deferred Charges 13,120,272 10,569,978

TOTAL $715,599,169 $687,184,075

See Financial Notes on pages 19 and 20.
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United States Rubber Company and Subsidiary Companies

Liabilities
December 31
1963 1962
Current Liabilities
Accounts payable . . . . . . . . . . . . . . . . $ 66,997,403 $ 55,670,807
Foreign bank loans . . . . . . . . . . . . . . . 19,674,268 17,992,000
Current maturities of long term debt . . . . . . . 4,762,753 2,332,000
Accrued Federal income taxes . . . . . . . . . . . 11,920,634 12,536,580
Other accrued taxes, including foreign income taxes . 17,882,045 18,439,779
Other accrued liabilities . . . . . . . . . . . . . . 34,534,979 34,620,781
TOTAL CURRENT LIABILITIES . . . . . . . . . . 155,772,082 141,591,947

Long Term Debt
2½ % debentures due April 1, 1967 . . . . . . . . 8,000,000 10,500,000
2½ % debentures due May 1, 1976 . . . . . . . . . 21,436,000 24,215,000
3¾ % promissory notes due January 1, 1982 . . . . 50,000,000 50,000,000
3¾ % promissory notes due July 15, 1995 . . . . . 60,000,000 60,000,000
Foreign and domestic subsidiaries . . . . . . . . . 17,839,953 6,215,199
TOTAL LONG TERM DEBT . . . . . . . . . . . 157,275,953 150,930,199

Deferred Federal Income Taxes and Investment Credit . . . 10,207,482 4,174,528

Reserves
Foreign activities . . . . . . . . . . . . . . . . . 15,608,187 17,838,255
Retirement allowances . . . . . . . . . . . . . . 9,172,186 9,908,175
Insurance . . . . . . . . . . . . . . . . . . . . . 3,723,858 3,800,199
TOTAL RESERVES . . . . . . . . . . . . . . . 28,504,231 31,546,629

Minority Interests in Subsidiaries . . . . . . . . . . . . 11,718,766 11,506,355

Stockholders’ Equity
8% non-cumulative preferred stock, $100 par value:
Authorized and issued — 651,091 shares . . . . 65,109,100 65,109,100
Common stock, $5 par value:
Authorized — 10,000,000 shares
Issued — 5,900,844 shares 1963; 5,899,104 shares 1962 . 29,504,220 29,495,520
Capital surplus . . . . . . . . . . . . . . . . . . 30,358,441 30,272,800
Retained earnings . . . . . . . . . . . . . . . . . 230,930,670 226,816,682
355,902,431 351,694,102

Less: Treasury stock at cost
Preferred stock held for retirement — 9,000 shares 1,413,071 1,413,071
Common stock — 51,591 shares 1963;
62,000 shares 1962 . . . . . . . . . . . . . . . 2,368,705 2,846,614
3,781,776 4,259,685

TOTAL STOCKHOLDERS’ EQUITY . . . . . . . . 352,120,655 347,434,417

TOTAL . . . . . . . . . . . . . . . . . . . . . $715,599,169 $687,184,075

See Financial Notes on pages 19 and 20.

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United States Rubber Company and Subsidiary Companies

Consolidated Income and Retained Earnings

                                            1963                1962

Net sales $980,229,858 $1,006,792,650
Other income, net 3,104,402 3,678,822
Total Revenue 983,334,260 1,010,471,472

Cost of goods sold 771,803,722 803,532,053
Selling, administrative and general expenses 157,215,827 149,069,079
Total costs and expenses (including depreciation
of $27,216,802 in 1963 and $27,657,250 in 1962)
929,019,549 952,601,132
54,314,711 57,870,340

Interest on long term debt 5,337,805 5,310,465

Profit Before Income Taxes and Other Charges 48,976,906 52,559,875

Federal and foreign income taxes, less $2,395,000 in 1962
representing taxes paid on depreciation charged to prior years’
operations but not deducted for tax purposes in those years
(see note on page 19) 24,274,394 22,618,743
Restricted foreign earnings and minority interests
1,425,979 1,955,018
Foreign exchange losses 1,171,947 2,291,714
26,872,320 26,865,475

Net Income 22,104,586 25,694,400

Retained Earnings at beginning of year 226,816,682 219,182,691
248,921,268 244,877,091

Cash dividends – Preferred stock $8.00 a share 5,136,728 5,150,728
– Common stock $2.20 a share 12,853,870 12,909,681
17,990,598 18,060,409

Retained Earnings at end of year $230,930,670 $ 226,816,682

See Financial Notes on pages 19 and 20.
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United States Rubber Company and Subsidiary Companies

Financial Notes

Principles of Consolidation – Foreign Activities
All subsidiary companies which are more than 50 per cent owned are included in the consolidated statements. Restricted earnings of foreign operations are excluded from net income and credited to the Reserve for Foreign Activities.
Fixed assets and long term liabilities of foreign subsidiaries are stated in United States dollars on the basis of rates of exchange prevailing at December 31, 1957 or at dates of acquisition for subsequent additions. All other foreign assets and liabilities are stated on the basis of rates of exchange prevailing at the close of the year. Cumulative gains resulting from the conversion of net current assets are carried in the Reserve for Foreign Activities; current losses are charged to such reserve, or, if no reserve is available, to consolidated income. Sales and earnings are stated at monthly average rates of exchange.
Net assets located outside the United States were $96,533,807 at the end of 1963.
The Reserve for Foreign Activities at December 31, 1963 consisted of $6,721,174 restricted earnings of foreign operations and $8,887,013 representing principally the excess of certain foreign subsidiaries’ net assets over cost thereof at dates of acquisition.
Deferred charges include $2,125,399 representing the excess of cost over net assets at dates of acquisition for certain subsidiaries.

Liberalized Depreciation and Investment Credit
For financial accounting purposes, depreciation of property, plant and equipment is provided on a straight line basis at rates presently considered adequate to amortize the total cost over the life of the assets.
For Federal income tax purposes, the Company uses the accelerated depreciation method and the liberalized depreciation “guideline” rates. The resultant reduction in current taxes payable, $5,248,000 in 1963 and $3,052,000 at the close of 1962, is included in Deferred Federal Income Taxes and Investment Credit on the balance sheet.
Similar to 1962, the Investment Credit made available under the Revenue Act of 1962, representing about 7 per cent of the cost of new machinery and equipment purchased for domestic operations, will reduce our 1963 Federal income tax payments by $1,062,000. The reduction in 1962 was $1,123,000. These credits will benefit income in future years through amortization over the expected useful life of the machinery and equipment. The unamortized balance of the Investment Credit is included in the amount of $10,207,482 in Deferred Federal Income Taxes and Investment Credit.

Warranties
Expenses and adjustments resulting from warranties on products manufactured and sold are charged to income as incurred.

Long Term Debt
The indentures relating to the 2⅝% debentures provide for redemption of $2,500,000 annually through 1966 and $3,000,000 annually for the issue due April 1, 1967, and for redemption of $2,000,000 each year until maturity for the issue due March 1, 1976.
The loan agreements relating to the 3⅜% promissory notes due January 1, 1982 require payments annually beginning July 1, 1968 equal to 5 per cent of the notes outstanding at that date; effective July 1, 1977, the rate is increased to 9 per cent. The 3⅜% notes due July 15, 1995 require payments annually beginning July 15, 1983 equal to 7⅞ per cent of the notes outstanding at that date.
The indentures and the loan agreements contain certain provisions prohibiting dividends (except stock dividends) and other distributions to stockholders unless stipulated requirements are met. Under the most restrictive covenants, the amount of consolidated retained earnings not restricted at December 31, 1963 was $102,952,358.
Long term debt of foreign subsidiaries includes $9,248,000 borrowed by U.S. Rubber Overseas, S.A., Geneva, Switzerland, providing for interest at 4½ per cent from October 31, 1963, and with annual maturities of $1,850,000 on October 31, 1974 to 1978; and $5,055,050 borrowed by U.S. Royal Lastik Turk, A.S. (Turkey), with interest at 7 per cent and repayment in 19 semi-annual installments in varying amounts beginning December 1, 1963.

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Capital Surplus
The increase of $85,641 in Capital Surplus represents the
excess of market value over par value of 1,740 common
shares issued under employees’ stock options, $63,510; and
the excess of market value over cost of 10,409 common
shares issued from treasury for the acquisition of domestic
subsidiaries, $22,131.

Retirement Allowances
The Retirement Allowance Plan provides generally for
retirement allowances to eligible employees or former em-
ployees beginning at age 65, based upon compensation and
length of service, less applicable statutory benefits. Subject
to continuance during the period of certain labor agree-
ments, the Plan may be repealed or modified as to employ-
ees in active service, and the allowances to all retired
employees may be proportionately reduced.
The stockholders at the Annual Meeting on April 19,
1960 approved the funding of the Plan as from January 1,
1960 as it relates, generally, to domestic employees. The
funds are in the custody of Independent Trustees to whom
the Company pays amounts, computed by independent
actuaries, sufficient to provide for no less than minimum
funding.
For retired employees not covered by funding, the Com-
pany charges allowances paid to current costs and, in addi-
tion, maintains a Retirement Allowance Reserve equivalent
to allowances payable to presently retired employees over
the next five years after application of 1963 income tax
rates.
In 1963, the net cost of current service funding and
interest on past service for domestic employees covered by
funded plans aggregated $14,820,979. In addition, $752,640
was paid to retired employees not covered by funded plans,
and reserves applicable thereto were increased by $378,317.
These amounts, before reduction for income taxes, aggre-
gated $15,951,936 of which $14,751,936 was absorbed in
1963 cost of operations and $1,200,000 (representing a
portion of the 1963 funding cost related to past service

cost) was applied to the Reserve for Retirement Allow-
ances. The balance in this reserve was $9,172,186 at Decem-
ber 31, 1963, of which $7,177,401 related to funded plans.

Class B Bonus and Management Incentive Plans
Net Income for 1963 was insufficient to produce bonuses
under the Class B Bonus and Management Incentive Plans.
In 1962, a total of $145,204 was awarded under the Class B
Bonus Plan, and the same amount was awarded under the
Management Incentive Plan.

Stock Options
At December 31, 1962, options with respect to 69,526
shares of common stock were held by officers and other
key employees. The options generally are not exercisable
for 18 months after grant and expire at varying dates which
in no case exceed ten years from date of granting.
During 1963, options were exercised with respect to
1,740 shares, options expired for 4,692 shares, and options
were granted for 5,400 shares.
Options were outstanding at December 31, 1963 to pur-
chase 68,494 shares of common stock at prices ranging
from $41.50 to $60.875 a share.
At December 31, 1963, after providing for shares appli-
cable to outstanding options, there remained 203,239 shares
of common stock available for granting further options.
Of these remaining shares, options for 7,640 shares were
granted on January 8, 1964 at $45.625 per share.

Commitments and Contingencies
The Company is contingently liable as a guarantor for
$9,815,000 promissory notes issued by a domestic affiliated
company; and to purchase $1,763,000 of long term deben-
tures of a foreign affiliated company.
The Company is committed to expend $3,225,000 in
1964 for a minority interest in a foreign affiliated company.

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United States Rubber Company and Subsidiary Companies

Accountants’ Opinion

HASKINS & SELLS
CERTIFIED PUBLIC ACCOUNTANTS
TWO BROADWAY
NEW YORK 4

February 12, 1964

United States Rubber Company:

We have examined the consolidated balance sheet of United States Rubber Company and its subsidiary companies as of December 31, 1963 and the related statement of consolidated income and retained earnings for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the accompanying consolidated balance sheet and statement of consolidated income and retained earnings present fairly the financial position of the companies at December 31, 1963 and the results of their operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

Haskins & Sells.

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Twenty-Year Summary
(Dollars in thousands except amounts per share)

SALES AND INCOME FINANCIAL

Year Net Per Cent Paid in Property, Plant &
Ended Sales Net of Sales Dividends Equipment
Dec. 31 Amount Common Retained Net Gross Provision for
1963 $ 980,230 $22,105 2.3 $17,991 $ 4,114 $306,064 $44,648 $27,217
1962 1,006,793 25,694 2.6 18,060 7,634 314,047 39,200 27,657
1961 940,399 27,096 2.9 17,860 9,236 311,495 39,795 25,711
1960 966,833 30,737 3.2 17,838 12,899 318,281 27,064 24,246
1959 , 976,766 35,580 3.6 16,956 18,624 312,222 25,311 24,409
1958 870,616 22,671 2.6 16,669 6,002 295,744 39,603 24,706
1957 873,583 29,695 3.4 16,343 13,352 282,032 36,115 22,743
1956 901,260 31,870 3.5 16,025 15,845 285,788 36,042 21,831
1955 925,539 33,559 3.6 15,812 17,747 259,757 35,282 19,627
1954 781,574 27,959 3.6 15,812 12,147 232,447 31,689 17,649
1953 838,451 32,732 3.9 15,812 16,920 231,256 26,033 16,016
1952 850,152 28,170 3.3 15,793 12,377 206,236 26,262 14,364
1951 837,222 30,366 3.6 15,775 14,591 177,030 21,022 13,999
1950 695,756 24,658 3.5 14,013 10,645 167,911 15,230 13,402
1949 517,440 15,100 2.9 10,492 4,608 167,939 16,185 13,328
1948 572,025 20,142 3.5 12,252 7,890 172,062 18,358 13,750
1947 580,968 21,753 3.7 12,250 9,503 170,152 27,566 11,580
1946 494,753 23,208 4.7 12,244 10,964 118,484 24,647 8,022
1945 471,506 13,025 2.8 8,727 4,298 110,071 26,644 37,477
1944 443,077 15,833 3.6 8,727 7,106 93,733 25,384 9,724

† Includes provision for renegotiation.
$ A stock dividend of 2% also paid.

US Rubber Annual Report – 72nd Annual Report – Page 23

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Page 023

United States Rubber Company and Subsidiary Companies

POSITION OTHER STATISTICS

Long Term Debt Capital Stock Employment & Earnings
Amount Interest Net Equity Dividends a Share Number of Holders Average Wages, Total Year
Owed Paid Worth Share* Preferred Common† Preferred Common Number of Employees Benefits Taxes Ended
Employees Dec. 31
$162,039 $5,338 $352,121 $48.78 $8 $2.20 8,196 34,593 60,103 $342,389 $107,481 1963
153,262 5,310 347,434 48.08 8 2.20 8,375 33,794 61,469 358,478 117,365 1962
152,013 5,320 337,489 46.62 8 2.20 8,460 30,535 60,086 337,533 111,106 1961
154,672 5,418 326,140 44.98 8 2.20 8,629 31,690 59,983 336,295 115,181 1960
159,920 5,520 312,634 42.74 8 2.05 8,781 30,873 61,149 330,240 125,218 1959
164,657 5,651 294,010 39.49 8 2.00 8,539 29,694 59,428 305,137 99,935 1958
169,030 5,740 289,109 38.64 8 2.00$ 8,591 27,013 60,136 314,109 96,786† 1957
174,484$ 5,751 271,240 36.17 8 2.00$ 8,743 25,823 63,929 331,470 92,203† 1956
156,325 4,357 254,332 33.17 8 2.00$ 9,070 24,904 63,550 324,382 95,626† 1955
120,896 3,736 236,585 30.01 8 2.00 9,364 24,390 60,726 290,963 80,052† 1954
120,896 3,737 224,373 27.84 8 2.00 9,683 23,586 67,549 303,447 97,260† 1953
102,719 2,761 207,454 24.84 8 2.00 9,755 21,348 65,745 269,791 116,111† 1952
77,724 2,040 194,627 22.64 8 2.00 9,839 16,362 65,083 257,829 126,297† 1951
77,744 2,208 180,035 20.03 8 1.67 9,992 15,480 59,069 216,832 89,913† 1950
92,812 2,384 169,391 18.14 8 1.00 10,592 15,541 56,521 183,866 51,979† 1949
98,000 2,429 163,199 17.03 8 1.33 10,711 15,410 64,208 208,545 61,173 1948
101,000 2,068 155,310 15.62 8 1.33 10,813 14,687 66,765 215,907 65,349 1947
40,000 918 145,697 13.92 8 1.33 10,771 13,707 61,499 190,048 62,367 1946
27,000 584 134,318 11.89 8 .67 10,665 12,657 70,739 188,318 47,026 1945
30,000 1,113 129,420 11.02 8 .67 10,595 12,332 78,347 195,807 57,584 1944

  • Net income a common share calculations are based on average number of shares outstanding; equity
    a common share calculations are based on shares outstanding at year-end; all calculations have been
    adjusted for the three-for-one stock split effective April 23, 1952 and for stock dividends. Dividends
    a share are at amounts declared for the respective years after adjustment for the 1952 stock split.

US Rubber Annual Report – 72nd Annual Report – Page 24

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Page 024

Quality Products For You

Every time you recommend a U. S. Rubber product to others, and every time you buy a U. S. Rubber product, you improve the sales and profit of your Company.

U. S. Rubber makes and markets a great many quality consumer products. Some of them are listed on this page. Remember them . . . you can be assured they are products of quality.

Tires
U. S. Royal
Fisk
Gillette

Casual Shoes
Keds
Kedettes

Golf Balls and Equipment
Royal
True Blue

Waterproof Footwear
Eskilos
Gaytes
Pak-a-Way
Rainpals

Elastic Yarns
Vyrtene spandex
Lastex

Bathing Caps
Aqua Originals
Aqua Fashions
Aerland
Wondercap
Watertites

Winter Jackets and Coats
Warmster

Mattresses
Koylon Foam Rubber

Cushioning
Koylon Foam Rubber

Raincoats
Rain-Shine-Raynster
Industrial Raynster

Luggage
Royalite
Naugahyde

Fabrics and Yarns
U. S. Royal

Carpet
Royal Vinyl Carpet

Carpet Cushioning
Rug Underlay

Upholstery Materials
Naugahyde

Wall Covering
Naugahyde

“Buy U.S.—Boost U.S.”

Outriger Slipon Kedettes

U. S. Royal Master tire

“Rosalie” and “Topsy” swim caps

Dunbar chair in Encore Naugahyde

Showcase luggage made of Royalite

Royal Vinyl Carpet comes in many colors

For information about Company products, write to:
Product Information Center
United States Rubber Company
1230 Avenue of the Americas
New York, N.Y. 10020
or telephone:
Circle 7-5060
Area Code 212

US Rubber Annual Report – 72nd Annual Report – Page 25

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Page 025

Board of Directors
H. E. Humphreys, Jr. Chairman of the Board
George R. Vila President and Chief Executive Officer
Eugene N. Beesley President, Eli Lilly and Company
J. Simpson Dean President, Nemours Corporation
George P. Edmonds Chairman, Wilmington Trust Company
Malcolm P. Ferguson President, Bendix Corporation
G. Arnold Hart President, Bank of Montreal
Harold H. Helm Chairman, Chemical Bank New York Trust Company
James P. Lewis President, Latex Fiber Industries, Inc.
John W. McGovern Retired as President, 1960
Robert J. McKim Chairman, Associated Dry Goods Corporation
John M. Schiff Partner of Kuhn, Loeb & Co.
W. Dent Smith President, Terminal Warehouses, Ltd.
Charles M. Spofford Partner, Davis Polk Wardwell Sunderland and Kiendl
Medley G. B. Whelpley Retired Corporate Executive

ADVISORY DIRECTORS
Herbert E. Smith, former Chairman and President
Thomas J. Needham, former Vice President

Officers of the Company
its divisions, departments and principal subsidiaries

H. E. Humphreys, Jr. Chairman, Board of Directors
George R. Vila President and Chief Executive Officer
Walter D. Baldwin Vice President, Corporate Sales
E. M. Cushing Vice President, Industrial Relations Department
Earle S. Ebers Vice President and Group Executive, polymers, fibers and chemicals
Frank J. McGrath Financial Vice President and Treasurer
C. William Pennington Vice President and Group Executive, tires, consumer and industrial products
Perce C. Rowe Vice President, Market Development
Leland M. White Vice President, Research and Engineering
G. T. Pownall Secretary
Claude H. Allard Vice President and General Manager, Textile Division
M. F. Anderson President, Dominion Rubber Company, Ltd.
Harold N. Barrett President, U. S. Rubber Tire Co.
F. Dudley Chittenden Vice President and General Manager, Naugatuck Chemical Division
Louis J. Healey President, Consumer and Industrial Products Division
Edward J. Higgins President, U. S. Rubber International Company
James P. Lewis President, Latex Fiber Industries, Inc.

Executive Committee:
Mr. Humphreys, Chairman;
Messrs. Vila, Edmonds,
McGovern, Schiff and Whelpley.

Salary and Bonus Committee:
Mr. McGovern, Chairman;
Messrs. Edmonds,
Schiff and Whelpley.

Audit Committee:
Mr. Edmonds, Chairman;
Messrs. Helm and Spofford.

US Rubber Annual Report – 72nd Annual Report – Page Contents

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Page contents

Contents
page 2 Financial Briefs
3 Letter to Stockholders
5 Expansion Program
14 Financial Review
16 Balance Sheet
18 Income and Retained Earnings
19 Financial Notes
21 Accountants’ Opinion
22 Twenty-year Summary
24 Products
25 Directors and Officers

72nd Annual Report . . . Year Ended December 31, 1963

United States Rubber Company
1230 AVENUE OF THE AMERICAS, NEW YORK, N.Y. 10020

General Attorneys . . . . . ARTHUR, DRY, KALISH,
TAYLOR & WOOD
General Counsel . . . . . . MYRON KALISH
Associate General Counsel . . NELSON P. TAYLOR
Auditors . . . . . . . . . . HASKINS & SELLS

Trustee-Registrar
(25% Debentures – Both Issues)
MANUFACTURERS HANOVER TRUST COMPANY
40 WALL STREET, NEW YORK, N.Y. 10015

Transfer and Dividend Paying Agent
(Common and Preferred Stocks)
BANKERS TRUST COMPANY
16 WALL STREET, NEW YORK, N.Y. 10015

Registrar (Common and Preferred Stocks)
Paying Agent (25% Debentures – Both Issues)
CHEMICAL BANK NEW YORK TRUST COMPANY
20 PINE STREET, NEW YORK, N.Y. 10015

Annual Meeting of Stockholders
10:30 A.M., Tuesday, April 21, 1964
Theater of the Barbizon-Plaza Hotel
106 Central Park South
New York City

US Rubber Annual Report – 72nd Annual Report – Page Letter

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Page letter

United States Rubber Company
Rockefeller Center
1230 AVENUE OF THE AMERICAS • NEW YORK 20, N.Y.

OFFICE OF THE
CHAIRMAN OF THE BOARD

March 17, 1964

To the Stockholders of
UNITED STATES RUBBER COMPANY:

The annual meeting of stockholders of United States Rubber Company will be held on Tuesday, April 21, 1964, at 10:30 a.m., in the Starlight Roof of the Waldorf-Astoria Hotel, 106 Central Park South, New York, New York. At this meeting stockholders will be asked to elect a board of directors for the coming year, to decide whether the company’s Bonus Plan and its Management Incentive Plan shall each be continued in effect, to consider and act upon the adoption of a proposed 1964 Stock Option Plan, and to transact such other business as may properly come before the meeting.

Under the provisions of the company’s Bonus Plan and its Management Incentive Plan, the board of directors is required to submit to the stockholders, at intervals of no more than five years, the question of whether each of those plans shall be continued in effect. The board of directors has passed a resolution declaring it advisable, and recommending to the stockholders, that both plans be continued in effect in their respective existing forms.

A proposed 1964 Stock Option Plan, described in the accompanying proxy statement, has been formulated by the board of directors for consideration by the stockholders. The board of directors has passed a resolution declaring the adoption of such plan advisable and directing that the forthcoming annual meeting be called for the purpose, among others, of taking action thereon.

The board of directors has fixed March 4, 1964, at the close of business, as the record date for the determination of stockholders entitled to vote at the meeting.

Your vote is important. Please sign and return the accompanying proxy in the enclosed addressed envelope. If you attend the meeting and wish to vote in person, you may withdraw your proxy. If you are planning to attend the meeting, it will be greatly appreciated if you will notify Mr. G. T. Pownall, Secretary, so that we may send you an attendance card.

Sincerely yours,

H. E. HUMPHREYS, JR.
Chairman of the Board of Directors

US Rubber Annual Report – 1963-72nd-annual-report-s033

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Page 033

United States
General Offices: 1230 Avenue of the Americas, New York, N. Y. 10020 Research Center: Wayne, New Jersey

EXISTING PLANTS
ALABAMA: Opelika
CALIFORNIA: Los Angeles
Santa Ana
CONNECTICUT: Bethany
Naugatuck
Sandy Hook
Waterbury
GEORGIA: Conyers
Dalton
Hogansville
Thomson
ILLINOIS: Chicago
INDIANA: Indianapolis
Mishawaka
Warsaw
Washington
LOUISIANA: Baton Rouge
Geismar
Scotts Bluff
MARYLAND: Baltimore
MASSACHUSETTS: Chicopee Falls
Medford

MICHIGAN: Detroit
NEW JERSEY: Passaic
Wayne
NEW YORK: Beaver Falls
NORTH CAROLINA: Gastonia
Raeford
Waxhaw
OHIO: Painesville
PENNSYLVANIA: Philadelphia
Wykes-Barre
RHODE ISLAND: Providence
Woonsocket
SOUTH CAROLINA: Winnsboro
TENNESSEE: Shelbyville
TEXAS: Laredo
Port Neches
VIRGINIA: Scottsville
WISCONSIN: Eau Claire
Stoughton

MAJOR EXPANSIONS
PAINESVILLE, OHIO
Synthetic rubber chloride
GEISMAR, LA.
Acetylene & vinyl monomers
Agricultural chemicals
Rubber chemicals
Royalene synthetic rubber
Aniline and
tolylene diisocyanates
THOMSON, GA.
Footwear
OPELIKA, ALA.
Tires
SCOTT’S BLUFF, LA.
Kratolitic resins
WARSAW, IND.
Expanded Royalite plastic parts
WINNSBORO, S.C.
Nylon tire cord
Polypropylene fiber
Textile sales and development
headquarters
NAUGATUCK, CONN.
Management information and
data processing center
LAREDO, TEX.
Tire test track
WILKES-BARRE, PA.
Tread rubber
Aircraft tire recapping
CONYERS, GA.
Tread rubber
Aircraft tire recapping
GASTONIA, N.C.
Vyrene fiber plant

Come To The Fair!
ON OUR COVER is an artist’s sketch of the giant tire which
United States Rubber Company will operate at the New York
World’s Fair, opening in April. The tire is 80 feet high and
will have a capacity of 96 passengers in 24 barrel-shaped
gondolas. The gondolas will move around the circumference
of the tire, affording a high and clear view of the Fair grounds
for sightseers and camera enthusiasts.

Outside U.S.A.
EXISTING PLANTS
The Company owns or is affiliated or
associated with manufacturing units in
these locations abroad:
ARGENTINA INDIA
AUSTRALIA INDONESIA
BELGIUM ITALY
BRAZIL JAPAN
COLOMBIA MALAYSIA
ENGLAND MEXICO
FRANCE PUERTO RICO

SCOTLAND
SOUTH AFRICA
SPAIN
SWEDEN
TURKEY
VENEZUELA
WALES
WEST GERMANY

Canada
ALBERTA: Edmonton
ONTARIO: Elmira
Guelph
Kitchener
QUEBEC: Montreal
St. Jerome

MAJOR EXPANSIONS
ARGENTINA
Chemicals
Synthetics
Carbon black
Other hydrocarbon materials
TURKEY
Tires
ENGLAND
Synthetic latices
Plastics
Royalite plastics
Golf balls
CANADA
Chemicals
Reclaimed rubber
Tire cord

ITALY
Coated fabrics
Chemicals
SPAIN
Footwear
BELGIUM
Tires
JAPAN
Synthetic rubber and plastics
Tires
AUSTRALIA
Tires
Consumer & industrial products

Union Threatens Goodyear Strike

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Union Threatens Goodyear Strike

SEYMOUR 7-12-62

Union Threatens Goodyear Strike

The United Rubber Workers union said yesterday that Goodyear Tire and Rubber Co. might become the fifth of the rubber industry’s big five producers to be struck if progress was not made in negotiations by midnight tomorrow.

If Goodyear is struck, 21,000 more rubber workers will be out of jobs, making a total of 76,000 union members idled.

The Firestone Tire and Rubbber Co., Uniroyal, Inc., and Goodrich Tire and Rubber Co. were struck June 21. Goodyear has been operating on a day-to – day basis.

The union charged that Goodyear has failed to bargain in good faith.

Uniroyal has plants in Beacon Falls and Naugatuck.

Rubber Workers Strike Goodyear

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Rubber Workers Strike Goodyear

7-14-67 [handwritten]

AKRON, Ohio (AP) — More than 20,000 United Rubber Workers at 11 Goodyear Tire and Rubber Co. plants in 10 states joined today in the union’s longest and largest walkout against the rubber industry’s major producers.

Pickets appeared at plant gates at the Thursday midnight deadline—less than two hours after contract negotiations at Cincinnati had recessed with union representatives rejecting

Goodyear’s third offer in bargaining that has been going on nearly four months.

Goodyear had continued work on a day-to-day basis after the union struck Firestone, B.F. Goodrich and Uniroyal April 21, idling 51,000 employes. On June 2, General Tire & Rubber, smallest member of the industry’s big five was struck, adding 3,050 more workers to the walkout.

PLEASE TURN TO PAGE 10

Strike— 7-14-67 [handwritten]

Continued from Page 1

The first break in the tie-up came Thursday when negotiators agreed to a contract covering 3,300 General Tire and Rubber Co. employes in Arkon, Ohio and Waco, Tex.

Negotiations are continuing in Cincinnati in attempts to reach agreement with other major rubber industries. About 5,000 Uniroyal employes in Naugatuck and Beacon Falls have been idled by the strike.

Goodyear employs 8,300 at its plants here and has another Ohio plant at St. Marys. Remaining plants are in Gadsden, Ala.; Los Angeles; Jackson, Mich.; Muncie, Ind.; North Chicago, Ill.; Topeka, Kan.; Lincoln, Neb.; Windsor, Vt., and New Bedford, Mass.

CHEM-TEXTS – Page 2

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Page 237

CHEM-TEXTS

Page 2

The thought of Christmas brings several things to mind. One is snow—and that speaks for itself; another is “that ole Christmas spirit” which unfortunately seems to come to many people only once a year; and another is safety.

We’ve all heard the expression before—have a safe Christmas. Well, here at the plant, I hope we all have a safe Christmas this year and next, and come to think of it, why not all the days in between. You all know that at Naugatuck we have just passed the milestone of working two million, that’s 2,000,000, manhours without a Lost Time Accident. We haven’t done that since 1961. That’s a tremendous and significant accomplishment and we should all be proud, and pleased, about it. After attaining this performance, I strangely found myself asking—”why has it taken us so long?” I ask myself, “why can’t we just keep on going?”

Jim Cronin [signature]

Wouldn’t that be a great Christmas present next year, working through all of 1976 without a Lost Time Accident. Strange as it may seem, this is one goal that is essentially under our full control. We can’t blame this on the Legislature in Hartford or the Congress in Washington—not even on the Governor or President. This is something that we, as employees of Uniroyal Chemical at Naugatuck, Conn., can claim full responsibility. It is, in a nut shell, strictly up to us.

Somehow, a happy Christmas helps to strengthen us. If we could minimize our exposure to accidents—at work, at home, on the road—we would, I’m sure, enjoy the spiritual and material joys of Christmastime even more. To attain this, we must not only be more aware of our own safety, but we must make others, particularly our family, more aware of their exposure to accidents. We have already seen how working together has reduced accidents and improved safety in the plant. We should instill this same positive attitude within our own family. Then we’ve really accomplished something.

With all this in mind, I would like to wish you and your families a very Merry, and Safe Christmas, and for next year, the return of reasonable prosperity.

Christmas in the Plant

[IMAGE: Photo of trees/spruces near a building]

In 1971, ninety five Colorado spruces were planted along the bank of the Naugatuck river; another 75 were planted in 1973. Besides improving the appearance of the plant, the trees add a touch of Christmas at this time of year. Naugatuck Chemical is probably the only industrial factory in the area with such a touch of green on its property. Over 100 hemlocks surround the scrap tire yard and 60 spreading yews were recently planted by the Main Entrance.

Diploma Awarded

[IMAGE: Photo of woman and man looking at documents]

Theresa Martin, an Order Clerk, in the D/S department plans to continue her education at the Mattatuck Community College in a Business related course. She is one of several Naugatuck Chemical people who have fulfilled the requirements for a high school equivalency diploma, which she is showing to Alex Nole.

The Industrial Relations department has a set of preparation books for the tests and may be borrowed at any time.

Survey Team Studies Noise

A survey was recently made of the noise factors in over 129 buildings throughout the plant by Thomas Ennis, Engineering, and James Loman of the Safety Dept. in compliance with the Occupational Safety and Health Act (OSHA).

The purpose of the study was to determine the range of noise problems that may exist in each section or floor of a building in the plant. Basing their measurements on engineering procedures, they recorded over 875 noise soundings which are kept on file in the Safety department.

The results have been given to the department heads of the buildings who in turn consult the plant Engineering department for recommendations to diminish or eliminate the noise level in compliance with OSHA.

In areas where the level is higher than desirable, people working in the area are urged to wear the proper protective equipment until the condition is remedied.

Accidents Cost Over $100,000

Accidents in 1975 cost over $100,000. During the year there were 3 Lost Time Injuries and 26 Serious Injuries for a total of 29. Although this is a major improvement over the hospital, surgical, and medical costs of $238,359 in 1974 and prior years when injuries cost over $200,000 annually, it still represents a severe drain on the plant’s financial condition.

The average direct cost of a Lost Time accident is $15,000. Overtime and other indirect costs increase it 5 times more, according to estimates of the National Safety Council and the Safety department.

Accidents Can Be Avoided

Eighty-five percent of the injuries in the plant are person-caused. Not that the accidents are deliberate, but they could have been avoided by a greater safety awareness. Many of them are caused by “taking chances” or “short cuts” or by not using the proper safety equipment or procedures.

Fingers were the most common injuries, accounting for half of the 29 accidents that occurred during the year. All of them required sutures.

But incomparable to the medical and hospital costs is the unnecessary suffering to the employee, his family, and the people in the department of which the employee is a member.

$1,116 Paid for Ideas

[IMAGE: Photo of three men, one receiving a check]

Russell Volz, center, Chemical Production, receives a $286.00 check from James Cronin, Factory Manager, for his Idea that saved $2750.00 a year in valves. At right is Frank Commendatore.

$9,449 Savings

Twenty people received $1116.00 for Ideas submitted during the year recommending different ways to save money in the operation of the plant.

The Ideas resulted in savings of $9449.00 at the Naugatuck location.

The highest award for the year $286.00 went to Russell Volz, Chemical Production, for reducing the number of valves used in the manufacture of J-Z-F. His idea resulted in a savings of $2750.

Another high award of $186.00 was made to Emil Rehel and Raymond Kubick, Chemical Maintenance, plus an additional $100. in small awards.

continued on page 3

Eric Johnson Named Chemical Superintendent

Eric Johnson has been named Superintendent of Chemical Production.

He joined the Naugatuck Chemical plant in 1961 upon graduation from Clarkson College with a B.Ch.E. degree. He held several Engineering positions until 1968 when he was appointed General Foreman of Synthetic Production. In 1971 he was named Chief Process Engineer for Chemical Production and in 1973 was assigned to the Naugatuck Treatment Co. a subsidiary of Uniroyal, Inc.

[ADVERTISEMENT]

UNIROYAL WINTER PATROL
WHITEWALL

TWO FIBERGLASS BELTS/TWO POLYESTER CORD PLIES
SELF-CLEANING TREAD FOR TRACTION

[IMAGE: Tire illustration]

ADVANCE TIRE SERVICE
510 Meriden Rd.
Waterbury—756-7205

POUST’S SERVICE STATION
144 Rubber Ave.
Naugatuck—729-0433

MEZZIO’S
792 New Haven Rd.
Naugatuck—729-5988

• Double fiberglass belts for hazard protection and mileage
• 78 Series design for traction

Meeting Called By Mediators

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Meeting Called By Mediators

6-21-67 [handwritten]

NAUGATUCK—Small negotiating teams from each of the five major rubber companies and the United Rubber Workers Union have been called for a special group meeting Thursday by the Federal Mediation and Conciliation Service.

The federal government has evidently decided that a 62-day-old strike involving over 51,000 people constitutes a problem requiring high-level action.

The meeting, scheduled to be held at 6 p.m. in Pittsburgh, Pa., will include teams of three management negotiators and three union negotiators from each of the five companies.

Although the full compliment of Uniroyal teams could not be learned Tuesday night, it was known that chief Uniroyal management negotiator will be Eugene Worchester and the chief Uniroyal union negotiator will be Herbert Dawson.

A URW local negotiator, contacted Tuesday, said that the union groups will choose the two

(Cont’d On Page 2—Uniroyal)

Uniroval

by

Uniroyal– 6-21-67

(Continued from Page One)

men to accompany Dawson today.

The announcement of this meeting represents one of the more significant aspects of the talks, although observers were hesitant to say whether it meant a possible breakthrough in the negotiations.

The meeting could go on for weeks, said a union observer, adding that union officials are tightening their jaws and preparing to hold out on their demands.

The feeling among union people, according to union spokesmen, is that government-included settlements generaly go in favor of management.

This represents the second attempt to get all five companies and the union to sit down at one table and talk.

A previous attempt failed when union negotiators from B. F. Goodrich refused to join because they did not want to talk in terms of a three-year contract agreement.

Union spokesmen from General Tire and Rubber Co. said that the gathering in Pittsburgh would not affect their scheduled walkout in two plants at midnight tonight.

Picketing by over 3,000 members of the URW at plants in Waco, Tex. and Akron, Ohio, will begin as scheduled, bringing the total number of URW members on strike to 54,100.

Goodyear, the only company not on strike, is continuing work on a day-to-day basis.

Uniroyal

by

Uniroyal 6-28-61

(Continued from Page One)

Uniroyal counsel J. Kenneth Bradley questioned Mengacci at some length about flare-ups at the gates early in May when pickets attempted to keep office personnel from entering the plant.

71 Arrests

The three days of clashes between pickets and police resulted in arrests of 71 strikers and a warning from Judge Gaffney that he would issue an injunction against the union if the violence didn’t stop.

The judge Tuesday gave some hint as to how he will accept such a defense, when he interrupted Bradley during questioning about a meeting between union officials and John Smith, plant manager.

Mengacci quoted Smith as saying at that meeting that in his opinion, no agreement existed because of the picket line troubles.

Judge Gaffney declared, “I’m not concerned with what some Mr. Smith thought about whether the agreement was null and void—it does not substitute for my judgment.”

At another point, while Bradley cross-examined Mengacci about alleged offers by the company to have union members perform certain jobs at the plant, the judge chided the lawyer to “come to the issue here, whether or not there’s been a violation of this contract.”

Mengacci also claimed that the company had announced at a May 8 meeting that “it needed to get samples out and they (company officials) intended to start production on samples with supervisory help.”

The union official said that after union protests, Smith told Local 45 leaders at a meeting a week later that the company “would honor the agreement” not to go into production and plans to start work on the samples would be dropped.

Mengacci said the company announced at that time that it wanted to produce 400 to 500 pairs of shoes a day.

Joseph DeCarlo, a member of the union negotiating committee, and Walter Beckwith, a picket captain, also voiced the opinion that violence would break out in the picket lines if production is allowed to begin.

Uniroyal cites Continued from Page 1

by

UniRoyal Cites

Continued From Page 1

plant during the evening hours
set off the mass picketing and
violence in the borough.

The union attorney then asked Smith how many shoes were
normally produced in the plant
a day, to which Smith answered
120,000. Baker then asked if,
after the strike is settled,
couldn’t the company in two
days, by using all its facilities, produce the necessary
number of sample shoes, which
was said to be 45,000 pairs.
Smith said, “Emphatically No”,
adding this would not be practical.

Ronald Hadley, model sales
manager, was called to the stand
to testify to the need for the
sample shoes.

Judge Gaffney stated that he
recognizes the fact that if the
strike is prolonged everybody
will be hurt. The union members and families are already
hurt.

The Judge said that he wants
to stop violence and is not interested in who is going to suffer
the most, union or company.

Nelligan was again called to
the stand to be questioned by
the union attorney as to the oral
agreement that no one enter
the plant after 6 p.m.

Nelligan said that he didn’t
expect anyone would enter the
plant after the normal working
hours. Under questioning he
said that approximately 30 or
40 persons had been brought into the plant the evening before
the first violence when the union
said it would not permit shipment.

Nelligan said, however, no
work was started before 8 a.m.
the following day. He said that
he believed that there was
around-the-clock picketing in
the earlier days of the strike
before he had had an informal
conversation with Mengacci.
Then picketing was only conducted between the hours of 6
a.m. and 6 p.m.

Mengacci was returned to the
stand on the request of the union
attorney to testify on whether
Smith stated at the May 15th
meeting that he would “honor the
agreement.” Mengacci said that
Smith had not made such a statement.

Judge Gaffney asked again
yesterday if a written notice had
been given the union that
the company did not consider
the agreement no longer in effect. He was told, no, that it was
merely an oral announcement.

Approximately a dozen Local
45 members were in court as
spectators to the afternoon session yesterday. They thought
possibly a ruling on the injunction would be announced at the
close of the hearing and were
disappointed that it will be
another week before the decision is reached.

Judge Gaffney reminded the
company and assured the union
that no production would be allowed at the footwear plant until
an announcement of the decision
on the restraining injunction
was made.

He said that he was anxious
to receive the briefs as soon
as possible in order to expedite the matter. The decision
is expected sometime near the
end of next week.

However, Judge Gaffney said
that he would not be hurt to find
the strike was settled first

Handwritten notation in top right corner: 6-29-68

Reuther Calls Rubber Offer “Miserly”

by
Reuther Calls Rubber Offer "Miserly"

Reuther Calls Rubber Offer “Miserly”

7-1

AKRON, Ohio (UPI)—The head of the United Auto Workers Union said Friday a wage offer to striking United Rubber Workers (URW) by major tire producers was “miserly.”

Walter Reuther, who has taken up the cause of the striking rubber workers by pumping more than $1 million into the URW’s strike fund, said a wage increase offer of 43 cents per hour by the “big five” tire producers was “miserable, inadequate and unacceptable.”

The 43-cent wage offer, which would boost the hourly pay of rubber workers to $4.11, was made by General Tire & Rubber Co., which was struck last week.

The 10-week-old walkout, longest in industry history, has idled 54,000 workers across the nation.

General also offered an 80 per cent supplemental unemployment payment plan.

Firestone Tire & Rubber Co., B. F. Goodrich, UniRoyal Inc., and Goodyear have offered to raise hourly pay by 40 cents, plus 75 per cent supplemental payments.

Goodyear, where work is continuing on a day-to-day basis, was the only one of the “big five” still operating. Firestone, Goodrich and UniRoyal were struck April 20.

No progress was reported in negotiations Friday.

Talks between bargainers for Goodyear and UniRoyal and the union were recessed until Wednesday while Goodrich and Firestone were to meet with union representatives again today.

Besides the wage issue, talks have deadlocked over union demands that the wage differential between tire and non-tire workers be eliminated.

Average pay for non-tire workers under the old contract was $2.69 per hour, 99-cents less than tire workers earned.

While talks continued, the 54,000 strikers were faced with an increasing financial burden.

The URW’s depleted strike fund can now pay only $15 per week to many of the union members in strike benefits. Union officials said the auto worker’s loan would only enable the union to continue benefit payments at that level, not increase them.

County welfare officials report many of the striking rubber workers have joined the welfare rolls, with more being added every day.

Few of the strikers have been able to find temporary jobs in an area dominated by the rubber industry.

Rumors yesterday in downtown Naugatuck to the effect that the strike had ended once again raised the hopes of many families feeling the pinch of the 71-day old United Rubber Workers strike against UniRoyal.

The fact that the company had asked permission of Local 45 to allow oilers to work in the plant, added to the knowledge that George Froehlich, president of Local 45 and Joseph Rzeszutek, president of Local 218, were returning to the borough for the long holiday weekend, was like adding fuel to the fire.

A second story circulating the borough yesterday sent many strikers to the Unemployment

Please Turn to Page 10

Reuther Calls Rubber
Continued From Page 1

7-1

Office in Waterbury seeking compensation.

Gov. John Dempsey signed into law yesterday a more liberal compensation act; however, the portion of that bill covering strikers receiving compensation was stricken from the bill before it was passed in the General Assembly.

Local 45 had not come to a decision yesterday as to whether it would permit oilers to work in the plant but, according to Vice President Raymond Mengacci, it would be discussed further today. He was unavailable for comment this morning.

GOODRICH

by

GOODRICH 7-16-67

(Continued from Page 1)
hikes proposed for the workers
probably will mean a substan-
tial price increase in Goodrich
products.

URW President Peter Bom-
marito said the Goodrich pact
“gives the blue collar worker a
status which we set out to
achieve.” He called parts of the
proposed contract “historic.”

The tentative agreement calls
for a 33-month contract running
until April 20, 1970. It would
give all the 12,000 Goodrich
workers at least a 43-cent hour-
ly increase with skilled em-
ployes getting a 53-cent in-
crease.

The current top scale at Good-
rich is $3.88.

Keener said, “This increase is
well in excess of anticipated
productivity gains per worker.
It is certain that B.F. Goodrich
cannot absorb these increased
costs without substantial and
effective price increases over a
broad range of our product
line.”

Bommarito said the Goodrich
agreement was another step
toward ending the longest strike
in the industry’s history, involv-
ing the nation’s top five produc-
ers. General Tire & Rubber Co.
reached a tentative agreement
earlier this week.

Negotiations are continuing
with Goodyear Tire & Rubber
Co., Firestone Tire & Rubber
Co. and Uniroyal, but were re-
cessed for the weekend.

Nearly 75,000 workers have
been involved in the strike
against the “big five.” The un-
ion struck Goodrich, Uniroyal
and Firestone on April 21.

General Tire was struck by its
3,050 employes June 22, and 21,-
000 workers of Goodyear, the
nation’s top rubber producer,
walked out at midnight Thurs-
day.

Spokesmen said there has not
been a shortage of tires and
rubber products during the
strike as the companies had
large stockpiles before it start-
ed.

Strikers Give

by
Strikers Give

Strikers Give

3-31 [handwritten]

Continued From Page 1

and life insurance and may contact headquarters if they have questions.

A vote of confidence was requested and received for the union officials from the members present.

Froehlich’s speech spelled out the fact that the union would negotiate until its terms are reached, but Froehlich mentioned no specific arguments or stumbling blocks that are keeping the footwear plants idle. He neglected to estimate how much longer the strike would last, but by indications from the Union and company alike, Naugatuck and its counterparts will remain strike victims for a while to come.

Arrest 4

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Arrest 4

Continued From Page 1

only to realize that they all hadn’t been arrested. Much time was spent trying to figure out who the four were that they had arrested. Some pickets rode to the station in police cars but hadn’t been arrested. They all wanted to be booked. One picket, when asked why he was in the cruiser, said he wanted a ride to the station.

The following four persons were booked on breach of peace charges, released on $100 no cash bonds for appearance in Waterbury Circuit Court June 8, the same day that the pickets from the footwear plant and the Chemical plant are scheduled to appear.

John A. Painter, 38, Morris Rd., Prospect; Paul Laurenzi, 41, 30 Seery Rd., Wolcott, Jesse J. Silva, 23, 143 Cherry St., and Anthony Gambardella, 53 Birchwood Rd., Seymour.

Alves intends to stay in the borough only long enough to straighten out this matter and hopes to fly to Cincinnati to continue taking part in the negotiating sessions. A session is scheduled for 2 p.m. today but he doubts he will be there. Another session is scheduled for 10 a.m. tomorrow.

The show cause hearing between Local 218, chemical plant and UniRoyal is scheduled for tomorrow in Waterbury Superior Court. Judge Leo Gaffney set the date to allow the union officials time to show why a restraining injunction should not be imposed upon them.

No incidents have taken place at the Chemical Company since last week. Supervisory personnel has been allowed to enter the plant without incident. Production on a limited scale is being carried on at the plant.

Local 45 is also conducting peaceful picketing at the footwear plants. An injunction has been postponed as long as no violence is recorded.

Handwritten note at top right: 5-31

Rubber Negotiations Off Until Wednesday

by

Rubber Negotiations Off Until Wednesday

4-24-67 [handwritten date in top right corner]

Picketing has been resumed today at all UniRoyal plants in the borough following a weekend respite.

A token team of pickets is being maintained at all gates and no incidents have been reported.

Executives of the three borough Locals are being briefed at meetings today on the contract negotiating sessions held last week in Cincinnati.

The three local presidents, George Froehlich, Local 45; Joseph Rzeszutek, Local 218; and Edward Alves, Local 308, along with three additional policymaking session to be held in Cincinnati tomorrow evening.

The next negotiation session is called for Wednesday morning. Both management and labor representatives have said privately they see little chance of an early settlement.

Union demands for higher wages and a guaranteed minimum wage have been the most difficult issues to resolve. The Union seeks payments to laid off workers totaling 93 per cent of their regular wage.