to townspeople in the area sur- rounding the Naugatuck Chemi- cal plant. It exposes all to the possibility of explosion or dead- ly gases being released in the atmosphere.

by

to townspeople in the area surrounding the Naugatuck Chemical plant. It exposes all to the possibility of explosion or deadly gasses being released in the atmosphere.”

He concluded with the statement that betterment of safety and progress at the Naugatuck Chemical plant has been the main concern of Local 218 in past years.

John Evans, manager of the Chemical Division, said this morning that no violence occurred at the gates this morning. He said the company was forced to resume production to serve key accounts which include defense contracts.

He had no comment to make on the union statement as to the danger of inexperienced people operating equipment.

Evans and Ronald Pohl, labor relations manager at the Chemical Division, conferred with Police Chief Frank Mariano early this morning. No information on this meeting was released.

Local 218 has been maintaining around-the-clock picket lines at the Chemical since the beginning of the strike 35-days ago. The normal picket line has been three or four men throughout the period, with Cy Blanchard, vice president of the Local in charge while Rzeszutek was in Cincinnati participating in the negotiation sessions.

Negotiations are continuing in Cincinnati today with strong rumors circulating the borough that settlement is imminent. No confirmation has been made as to this, however.

The following eight pickets were booked at 8 a.m. at the police station on breach of peace charges. They were released under the no cash bond program for appearance in Waterbury Circuit Court June 8.

Albert R. Lestage, 37, 85 Vernon St., Waterbury; Tano

by
Untitled Clipping

SanAngelo, 53, 82 Pinehurst
Ave., Waterbury; Dominic A.
George, 55, 33 Railroad Ave.,
Beacon Falls; Robert Ander-
son, 37, 84 Svea Ave.; Joseph
P. Paplauskas, 46, 99 Gorman
St.; Joseph Rzeszutek, 45, 236
Riggs St., Oxford; Marcel H.
Herbert, 39, 179 Tudor St., Wa-
terbury; and Henry Hook, no age
given, 167 West Church St.,
Seymour. Hook posted a $20
cash bond.

Superior Court Judge Leo V. Gaffney this morning denied a petition for an injunction and restraining order against Local 218, United Rubber Workers, sought by UniRoyal, Inc., Chemical Division, and continued the case until next Thursday.

by

Superior Court Judge Leo V.
Gaffney this morning denied a
petition for an injunction and
restraining order against Local
218, United Rubber Workers,
sought by UniRoyal, Inc., Chem-
ical Division, and continued the
case until next Thursday.

George Froehlich, president
of Local 45 URW, who has been
in Cincinnati participating in
negotiation session has re-
turned to the borough due to
the death of his sister, Mrs. Ma-
tilda (Froelich) Donston.

Froehlich announced that a
meeting for the membership of
Local 45 will be held at the Nau-
gatuck High School auditorium,
Monday at 2:30 p.m. presuma-
bly to inform them about the
negotiations.

Officials of the rubber firm
went into the Waterbury court
today in an effort to stop block-
ing of management personnel
by union workers at gates to
the Chemical Division.

Judge Gaffney said the injunc-
tion, if granted, would only
cause more tension in the mat-
ter.

For the second morning in a
row, pickets at the Chemical
Co. gates attempted to keep
management from entering the
plant.

John Evans, manager of the
Chemical plant, reported to the
police station this morning and
informed Police Chief Frank
Mariano that pickets were again
barring entry into the plant.

Mariano dispatched the entire
special strike force to the plant
to reinforce the four officers on
duty there. No violence was used
today and no arrests were made.
When the officers arrived the
pickets opened up the lines and
admitted management.

Local 218 threw a heavy pick-
et line around the plant yester-
day morning after it had been
notified by UniRoyal that super-
visory personnel would begin
production at the plant. Both
yesterday and this morning
strikers attempted by peaceful
methods to keep supervisory
personnel from entering the
plant at the beginning of the
work day.

Evans, in answer to these charges issued the following statement:

by
Evans, in answer to these charges issued the following statement:

Evans, in answer to these
charges issued the following
statement: “We consider the
safety of all personnel in the
plant as well as that of the
residents of Naugatuck to be the
first consideration of manage-
ment in all decisions regarding
operations, regardless of cir-
cumstance.”

“At the present time oper-
ations are limited in scope and

are being achieved by crews completely familiar in all operating procedure and safety practices.

by
are being achieved by crews completely familiar in all operating procedure and safety practices.

are being achieved by crews
completely familiar in all oper-
ating procedure and safety
practices.”

“Indeed, these personnel are
normally responsible for the
training and direction of the
regular operators.”

Rzeszutek also said yester-
day that he is considering ask-
ing the membership of Local
218 at their next meeting to no
longer honor withdrawal cards
of personnel who have salaried
positions.

He said the union considers
these people “undesirable for
readmittance to the Local in the
event they are removed from
salary.”

Evans said yesterday, that the plant was forced to start production in order to service key accounts which include defense contracts.

by
Evans said yesterday, that the plant was forced to start production in order to service key accounts which include defense contracts.

Evans said yesterday, that
the plant was forced to start
production in order to service
key accounts which include de-
fense contracts.

An issue was raised yester-
day by Joseph Rzeszutek, pres-
ident of Local 218, as to the
safety of management oper-
ating production especially with
skeleton crews.

The striking Local circulated
handbills to this effect around
the borough yesterday.

Management lawyer, Atty. J. Kenneth Bradley, said Friday that the production was ”partially” for the defense effort, and partially of items ”for use in other parts of the country.”

by

Management lawyer, Atty. J.
Kenneth Bradley, said Friday
that the production was “par-
tially” for the defense effort,
and partially of items “for use
in other parts of the country.”

He did not go into detail on
the use of the items except to
say the items “are not for use
by ourselves.”

Naugatuck Police Chief Frank
J. Mariano and Capt. Joseph
Summa were in the courtroom
for Friday’s session but were
not called upon to testify.

In asking for an end to the
picket line difficulties, Judge
Gaffney said it was easy for
him to understand them when it
appears to union members that
“someone is destroying … the
right to work and live.”

“I trust we will never have a
hearing” on the matter, the
judge said. He added that he
hoped he would not be forced to
issue an injunction against the
union.

Judge Gaffney on May 6 is-
sued an order for a show cause
hearing against Local 45 of the
United Rubber Workers in con-
nection with picketing at the
Footwear Division, also in Nau-
gatuck, but a hearing has never
been held.

It has been continued twice
and more continuances will be
entered as long as the picketing
remains peaceful, Judge Gaff-
ney said.

Seeks Same Effect

He said he hopes the issuance
of a show cause order against
Local 218 will have the same
pacifying effect on picketing ac-
tivities at the Chemical Plant.

The United Rubber Workers
has been on strike for five
weeks.

Negotiations in Cincinnati,
Ohio, on the master contract re-
cessed Friday until Wednesday

by

SATURDAY
MAY 27, 1967

UniRoyal

Continued From Page 1

According to Rzeszutek, the
only items shipped from the
Chemical were “slabs of re-
claim”, slabs of rubber re-
claimed from old tires and
other rubber items.

“What are they going to do
with slabs of reclaim, drop them
from airplanes and smother the
Viet Cong?” he asked.

Rzeszutek, a veteran of com-
bat who “had been shot up a few
times” himself, resented the
implication that he and his union
were unpatriotic. He said he
could guarantee that not one
thing had been shipped from the
Chemical plant to Vietnam.

Management lawyer, Atty. J.
Kenneth Bradley, said Friday
that the production was “par-
tially” for the defense effort,
and partially “for use in other
parts of the country.” The only
additional information he would
give was that the items “are not
for use by ourselves.”

A company official was quot-
ed Thursday as saying the oper-
ation of plant by management
personnel was for the produc-
tion of some key items neces-
sary for the Vietnam defense
effort.

In asking for an end to picket
line difficulties, Gaffney sym-
pathized with the union mem-
bers who felt that “someone is
destroying. . .the right to live
and work.” “I trust we will
never have a hearing”, the judge
said, adding that he hoped he
would not be forced to issue
an injunction against the union.

Judge Gaffney on May 6 issued
a show cause order against
Local 45 of the United Rubber
Workers in connection with
picketing at the Footwear Divi-
sion, but a hearing has never
been held. There have been two
continuances and more are ex-
pected as long as the picketing
remains peaceful.

The judge said he hoped the
issuance of a show cause order
will have the same effect at the
Chemical plant.

The United Rubber Workers
have been on strike for five-
weeks. Negotiations on the mas-
ter contract, being held in Cin-
cinnati, Ohio, recessed Friday
until Wednesday.

Union officials said, “The union wishes to set the record straight on the qualifications of the supervisory personnel who operate the process equipment.”

by

Union officials said, “The union wishes to set the record straight on the qualifications of the supervisory personnel who operate the process equipment.

“Mr. John Evans, plant manager, stated that the supervisory personnel normally train the regular operators, when in fact, new or transferred operators are trained by qualified operators from the bargaining unit.

“Mr. Evans’ consideration for the safety of personnel, as well as the residents of Naugatuck, can be refuted by the fact that in some instances, it had taken months to force the company to correct safety hazards in the plant. It also has been necessary to resort to grievance procedure and use of the extreme measure of refusing to operate some process equipment.

“The inaccurate statements made by the factory manager of the Chemical can be attributed to his inexperience, due to the fact that he was only recently appointed to the post of factory manager,” the official claimed.

Strikers Give URW Union Vote Of Confidence Monday

by
Strikers Give URW Union Vote Of Confidence Monday

Strikers Give URW Union Vote Of Confidence Monday

By Cynthia Baran

UniRoyal workers, members of the United Rubber Workers Union Local 45, received word Monday from both the union and the company that indicates that both parties are miles away from a strike settlement.

From the factory manager of the local footwear plant, John M. Smith, the employees received a letter stating, “The strike need not have occurred. Prior to the expiration of the contract, the company proposed one of the largest offers ever made to our employees. It also proposed that our factories keep operating on a day-to-day basis under the contract while a new one was finalized.”

“Our company has bargained and continues to bargain in good faith. Its negotiating representatives are making every effort to establish a basis for settlement. The union has made only minor changes in its original demands which were beyond reasonable or justifiable limits for our highly competitive industry.”

Monday afternoon, President of URW Local 45, George Froehlich, conducted a meeting for union members to inform them of negotiation proceedings in Cincinnati. That was the first time the membership had been called together since the strike began.

Froehlich reported the negotiations as the “wierdest” he has ever been in since 1942.” He claimed that company officials were being “arrogant and reluctant” to settle the strike.

In rebuttal to Smith’s letter, he said that the company had not proposed working on a day-to-day basis until 15 minutes before the contract deadline. At this time, according to Froehlich, nothing had been offered or settled by or with the company.

He added that while union officials had been willing to negotiate on weekends, Sundays, and even the Memorial Day holiday, the company officials were not.

Froehlich told the union members, that union officials were not bargaining for a “few pieces of silver.” The main issues, according to the president, concern “decent treatment of employees.”

The union members were informed that during the strike they are still covered by health

Please Turn to Page 14

GEORGE FROEHLICH, president of Local 45, United Rubber Workers, addressed union members in the Naugatuck High School auditorium Monday afternoon. Those in attendance gave the negotiating committee a vote of confidence in negotiating sessions in Ohio. –(News Photo by Baker)

PRESIDENT OF LOCAL 308 Edward Alves, is shown, center of picture, as he leaves,the pickets, this morning. Alves had instructed the pickets to remain calm and under no circumstances to become violent. Management was waiting in cars to enter the gate and the police force was approaching the gate to open the line.

by
PRESIDENT OF LOCAL 308 Edward Alves, is shown, center of picture, as he leaves,the pickets, this morning. Alves had instructed the pickets to remain calm and under no circumstances to become violent. Management was waiting in cars to enter the gate and the police force was approaching the gate to open the line.

PRESIDENT OF LOCAL 308 Edward Alves, is shown, center of picture, as he leaves, the pickets, this morning. Alves had instructed the pickets to remain calm and under no circumstances to become violent. Management was waiting in cars to enter the gate and the police force was approaching the gate to open the line. –(News photo by Nichols)

Questioned Decision

by

Questioned Decision

Alves questioned the decision of the management, criticizing its actions in attempting production with “unskilled personnel.” The union president further asserted that because of the “danger of work involved at the plant, a disaster could occur, not only endangering the lives and property of those in close proximity to the plant, but to also those in the neighborhood.”

Alves said the union has contacted the insurance company on whether they had been informed of the production work by the unskilled personnel and reported the insurance company had not been notified to date. He said periodic inspections are conducted at the plant due to the nature of work involved.

Third Plant Involved

The mass picketing at the Synthetic Plant, makes the third plant of the Uniroyal company to be involved since the three plants were struck 41 days ago.

Both Locals 218 of the Chemical and 308 of Synthetic Plants have maintained around-the-clock picketing since the beginning of the strike.

Two of the pickets had to be forcibly ejected by police, following the reading of the riot act from the state statutes by Capt. Joseph Summa, when they refused to step aside for the plant’s personnel.

by

Two of the pickets had to be
forcibly ejected by police, fol-
lowing the reading of the riot
act from the state statutes by
Capt. Joseph Summa, when they
refused to step aside for the
plant’s personnel. All personnel
entered the plant, after a wedge
had been formed by about a do-
zen police breaking the picket
line.

The four arrested were
brought to police headquarters,
for booking in the patrol cars.
However, about 30 of the pickets
also arrived at the station ask-
ing to be arrested in sympathy
with those already arrested.

Arrested or charges of breach
of peace were John A. Painter,
38, Morris Rd., Prospect; Paul
Laurenzi, 41, 30 Serry Rd., Wol-
cott; Jesse J. Silva, 23, 143
Cherry St. and Anthony Gam-
bardella, 54, 53 Brichwood Rd.,
Seymour. Court appearances
were set for June 8.

Negotiators Not

by

Negotiators Not c-2c

Continued From Page 1

in early April, however, that it wouldn’t prohibit any of the member companies from reaching an independent agreement with the union satisfactory to itself.

The effect of the pact, Bommarito charged, has been interference with employes’ rights to engage in concerted activities guaranteed by law because their “exertion of economic pressure is diminished or destroyed.” The result has been, he held, that Firestone has refused and is refusing to bargain collectively, in violation of the law.

He reiterated earlier charges that the five rubber companies for 20 years have negotiated wage increases and other benefits that parallel or are in tandem with those in the auto industry but that “now they have refused” to follow this policy.

All have made identically inadequate wage offers, he said, and are prevented from meeting their collective bargaining obligations by the strike assistance pact

by

“All have made identically in-
adequate wage offers,” he said,
“and are prevented from meet-
ing their collective bargain-
ing obligations by the strike as-
sistance pact.”

A Firestone spokesman said
the company wouldn’t have any
official comment on the NLRB
complaint by the union.

“We can see no legal basis
for their claims,” he said.
Spokesmen for the four other
rubber companies also declined
comment on the complaint.

The issuance of this com-
plaint and the meeting held
Monday by Local 45 is the first
real information and indication
the striking rubber workers
have received on how the nego-
tiating sessions are progress-
ing.

The strike, now entering its
42nd day, has been a long, drag-
ged out affair filled with rumors
but without any definite releases
as to the proceedings in Ohio.

Both the companies and union
had agreed that neither party
would give out information as
to the negotiations without the
others consent.

Striking Local 45 members
gave their President George
Froehlich a vote of confidence
at the meeting held Monday;
however, Froehlich gave the
members no encouragement as
far as a fast settlement was
concerned.

Picketing at all three local
plants remain quiet as UniRoyal
supervisory personnel carry on
limited production at the
Chemical and Synthetic plants
and shipping is carried out at
the Footwear warehouse.

Mayor Joseph C. Raytkwich
received a complaint from a
Cotton Hollow resident this
morning that a heavy smog
covered the area. The com-
plainant also said that the
air was irritating to the nose
and eyes.

However, the source of the
“smog” was not identified, and
this seems to be the only area
of the borough so effected.

Striking Rubber Workers, Five Companies May Agree on a Single Package Contract

by
Striking Rubber Workers, Five Companies May Agree on a Single Package Contract

Striking Rubber Workers, Five Companies May Agree on a Single Package Contract

By a WALL STREET JOURNAL Staff Reporter

CLEVELAND—Contract negotiations between the United Rubber Workers Union and five major rubber companies may take a long step toward a settlement this week as sentiment appeared to grow for linking pension and welfare improvements into a single package with wages and other benefits.

This would be a departure from previous industry policy of keeping the usual two-year master wage contracts separate from the longer term pension and welfare agreements.

Strikes by the union have closed 39 plants of Firestone Tire & Rubber Co., Uniroyal Inc. and B. F. Goodrich Co. for 45 days. Contracts at those concerns expired April 20, as did those at Goodyear Tire & Rubber Co., whose plants have continued to operate on a day-to-day basis. Plants of General Tire & Rubber Co. also continued to operate since its contract expiration May 15.

Existing three-year pension and welfare agreements with Goodyear, Firestone, Uniroyal and Goodrich also are due to expire on Sept. 15, however, and the time proximity of the two rounds of negotiations has created a hurdle in reaching a wage contract agreement. Company executives, even before wage contract talks started, cited the prospect of facing two boosts in employment costs, plus two strike threats, in a single year.

More recently, with strike benefit funds about depleted by the lengthy work stoppages of some 51,000 employes of the three struck concerns, union officials were said to be becoming less adamant about keeping pension and welfare agreements separate from wage contracts.

While Peter Bommarito, URW international president, said a month ago the union was willing to consider a joint package proposal from the companies it is understood nothing more than exploratory discussions have taken place thus far in negotiations on this score.

At the weekend, however, a URW spkesman said the union would be “wide open to any proposals” from managements for wrapping up the two contracts in a single package. Company spokesmen also reiterated the contention that such a move common in most other industries, is “the most logical and sensible thing to do.”

Whether the resumption of talks, recessed since Thursday, between the union and Firestone, Goodyear, Goodrich and Uniroyal this morning will result in any moves toward a single, overall contract remains to be seen. But the belief of sources close to the negotiations indicated prospects are better than ever before.

One possibly sticky point is whether a single, overall agreement would be for two years or for three. Earlier pension and welfare agreements have been for as much as five years. But both union and company sources noted this could be an issue for negotiation.

Mr. Bommarito earlier disclosed he has called a meeting for June 25 and 27, in Cleveland, of union pension and welfare contract officials. A union spokesman said the meeting still is scheduled, but he indicated this would not necessarily rule out a possibility of negotiating a combined contract before then.

The union’s strike benefit fund, amounting to about $6.5 million at the start of the three-company strike, presumably is exhausted as a result of the prescribed $25 weekly payments to striking members. The union has called on working members for voluntary contributions

equivalent to one hour’s pay a week, but the extent of the response has not been disclosed.

Walter Reuther, president of the United Auto Workers union, has pledged striking rubber workers financial and other assistance in their dispute. But both UAW and URW officials decline to say whether any financial aid has been asked for or given.

Whatever the prospects for gaining an early single contract settlement, the union indicated at the weekend it intends to press its unfair labor practice charge against the five companies for their mutual strike aid pact reached last April 1.

In a complaint filed with the National Labor Relations Board regional office in Cleveland last week against Firestone, the union charged the pact thwarted free collective bargaining and is prolonging the strike against the three companies.

The union spokesman said identical complaints are in the mail to the NLRB against Uniroyal and Goodrich and will be followed today with complaints against Goodyear and General Tire.

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Talks To Be Recessed

by
Talks To Be Recessed

Talks To Be Recessed

Talks between the five union negotiating teams and the companies will be recessed today so that the package can be studied and to permit union officers to attend the funeral of Garnet L. Patterson, URW general counsel who died Saturday. It is doubtful, however, that the proposal would be accepted without several counterproposals being made.

Contention most likely would develop, it is understood, over the companies’ continued plan for pay-boost differentials between tire workers and other employes, the length of the contract and the guaranteed annual wage provisions. A pay-boost differential has been contained in each of the last three wage contracts, though the margins were narrowed in the 1965 agreement. Mr. Bommarito has labeled the differentials as discriminatory, however.

But the proposal has activated the negotiations, which had become somewhat passive. Moreover, the size of the proposed pay boosts indicate substantially higher employment costs, pointing to increased prices. Executives of the companies had said the negotiations were likely to increase costs so much that price boosts would be necessary.

URW Prepared To Continue Strike Another Month

by

URW Prepared To Continue Strike Another Month

AKRON, OHIO (UPI) — United Rubber Workers President Peter Bommarito, said today that the United Rubber Workers had rejected an offer by the nation’s five leading rubber producers and that the URW was prepared to continue the strike for another month.

The URW had been offered a 38 cent per hour wage increase, an increase in pension, unemployment and welfare benefits.

Bommarito did not indicate what it would take for a settlement.

Strikers in the borough, out of work for 49-days, had their hopes of a settlement dashed with the announcement of the rejection today. The rejection coupled with the announcement of a cut in union weekly benefits from $25 to $15 was a bitter pill to swallow.

According to a letter received by UniRoyal employes today, the union rejected the proposal late Tuesday afternoon.

The UniRoyal letter received in today’s mail by employes, listing the companies offer in full is as follows:

June 8, 1967

Dear Fellow Employee:

The Company and Union negotiating committees have been meeting in Cincinnati since March 21 in an effort to negotiate a contract and wage agreement. The Union presented demands to the Company which would cost at least $1.40 per hour, as well as seriously impair its ability to operate its plants on a competitive basis. The Union presented a portion of these demands on April 12, but did not present its full proposal until 11 a.m. on April 19-just 37 hours before the strike deadline.

Prior to the strike deadline, the Company offered the Union a proposal on wages and benefits which was worth approximately 26 cents an hour. This was greater than the total settlement in 1965. The Company also offered to continue negotiations on a day-to-day basis in order to reach an agreement. The Union rejected this proposal. Two of the unions in the major rubber companies did agree to continue negotiations on this basis and their employees are still working. Your Union made no change in its position prior to the strike deadline.

Meanwhile, the Union criticized the Company’s proposal by stating that it amounted to only about a 2 1/2% increase, whereas other industries have made settlements amounting to about 5%. The Company pointed out to the Union that the 5% settlements to which they referred covered not only wage and contract matters but also pension and insurance benefits and that they afforded these industries a high degree of stability since they were generally for a three year period.

The Company told the union repeatedly that it could not increase its offer because it was faced with a large cost exposure when the pension and insurance agreement is opened for negotiation later this summer. Because this unknown factor acted as an obstacle to successfully concluding negotiations, an effort was made by the Company to open the pension and insurance negotiations now and attempts to negotiate all matters to a conclusion. This, of course, would provide improvements in pensions and insurance several months earlier in the year. This offer was made with full recognition that neither the Company nor the Union could insist that the other party negotiate on pensions and insurance at this time as a condition to settlement, but it was felt that this was a fair and reasonable method of resolving the problem.

In order that you may properly evaluate the situation, we felt you should know what the Company has offered. Following are the principal points in the proposal made to the Union on June 5, 1967:

  1. Wages – In tire plants, an increase of 16¢ per hour in 1967, 11¢ per hour in 1968 and 11¢ per hour in 1969. In non-tire plants, an increase of 13¢ per hour in 1967, 9¢ per hour in 1968 and 9¢ per hour in 1969. This would provide wage increases of 38¢ and 31¢ an hour respectively in a span of 24 months. The reason for the difference between tire and non-tire increases is that our competitors in the non-tire segment of our business do not pay the same high wages and benefits and do not provide the same increases as UniRoyal does. This has resulted in a severe economic squeeze in our non-tire plants.
  2. Skilled Trades – A 10¢ an hour increase in addition to the above increases, in the year 1967.
  3. Liberalized Vacation Pay – Two weeks vacation pay for employees with one year of seniority and 3 weeks of vacation pay for employees with 5 years of seniority (the present provisions of 4 weeks vacation pay after 15 years seniority and 5 weeks vacation pay after 25 years seniority would continue).

Please Turn to Page 12

US Rubber Annual Report – 72nd Annual Report – Page 2

by
Page 002

United States Rubber Company and Subsidiary Companies

Financial Briefs

                             1963      1962

Sales . . . . . . . . . . . . . . . . . . $980,230,000 $1,006,793,000

Federal and foreign income taxes . . . . . . . 24,274,000 22,619,000

Net Income. . . . . . . . . . . . . . . . . 22,105,000 25,694,000

Dividends paid: Preferred stock, $8.00 a share . 5,137,000 5,151,000
Common stock, $2.20 a share . . 12,854,000 12,909,000

Earnings retained in the business . . . . . . . 4,114,000 7,634,000

Net Income a Common Share . . . . . . . . . . $2.90 $3.50

Employees’ pay and benefits . . . . . . . . . 342,389,000 358,478,000

Plant and equipment expenditures* . . . . . . 44,648,000 39,200,000

Depreciation charged to earnings . . . . . . . 27,217,000 27,657,000

Interest on long term debt . . . . . . . . . . 5,338,000 5,310,000

Long term debt . . . . . . . . . . . . . . . 162,039,000 153,262,000

Working capital, net — amount . . . . . . . . 306,064,000 314,047,000
— ratio . . . . . . . . . . 3.0 3.2

Stockholders’ equity in business (net worth) . . 352,121,000 347,434,000

Book Value a Common Share . . . . . . . . . . $48.78 $48.08

  • In total, plant and equipment expenditures aggregated $65,491,000 in 1963, comprising $44,648,000 of direct expenditures, $12,862,000 toward construction of a new $21 million tire plant being financed by Industrial Revenue Bonds and $7,981,000 as our share of expenditures by affiliated companies. For 1962 such total was $48,017,000.

US Rubber Annual Report – 72nd Annual Report – Page 3

by
Page 003

February 12, 1964

To the Stockholders of United States Rubber Company:

In the first half of 1963 our profit rose 2.7 per cent, despite 1.4 per cent lower sales. But strikes in nine plants during the second half of the year reduced net income for the year to $22,105,000, or 14 per cent below 1962.

Our 1963 sales of $980,230,000 were second highest in our history, but 2.6 per cent below the record high of $1,006,793,000 set in 1962. Sales increased, however, in many product categories and in several cases set new records.

The strikes, which prevented sales from exceeding the 1962 record, lasted for varying periods of time at three chemical and synthetic rubber plants, a plastic plant, a Canadian footwear plant and four of our five domestic tire plants.

Strike issues varied from place to place but in the longest and costliest strikes at our tire plants the most important issue was the Company’s need to revise loose work practices which had evolved during the war and post-war years and which had prevented the Company from making full use of its expensive manufacturing equipment. New contracts signed at these plants will improve our position and provide long range security in the interest of stockholders and employes alike.

Capital expenditures for new plants and the modernization of existing ones reached a new level of approximately 65 million dollars, compared with 48 million in 1962. These figures include our direct capital expenditures, the expenditure at our new tire plant in Alabama and our share of investment in joint ventures and affiliated companies. Outside the U.S. A., new investments included a plastics plant in Italy, a footwear plant in Spain, a rubber company in Australia and both a tire and chemical venture in Japan.

This new level of capital expenditures strengthens our profit potential for the future. It is a part of a 300-million-dollar long term expansion and modernization program, the largest in the Company’s history, which is described on the following pages.

The Company made new strides in distribution of its products, particularly tires. Many new tire dealers took on the U. S. Royal franchise because of the outstanding quality of our tires and the new merchandising techniques we have developed. We moved strongly into many shopping centers. In areas where we could not obtain suitable independent dealers, we continued to supplement our distribution by opening Company tire centers. We now have a total of 228 Company-owned tire distribution outlets.

In research and development, a number of new products were put into production. In addition, we committed several million dollars for plants to manufacture new products starting in 1964. Among these are Royalene – our new ethylene-propylene rubber – a new dyeable polypropylene fiber, and Expanded Royalite – a new plastic material now coming into use in auto body parts, truck cabs, house trailers, and a host of other products. Gratifying progress was made in the development of a new high speed, super performance tire based on Royalene rubber.

We completed the second full year of use of our CVC bonding agent in tires. This development and other advances allowed us to move into a position of leadership in tire quality and performance. Late in the year, we completed construction of a new tire proving ground on a 6,900-acre tract in Laredo, Texas. This is by far the most advanced of any tire testing facility in the world today and will insure our maintaining product leadership.

By order of the Board of Directors,

[Handwritten signatures]
President
Chairman

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One of the largest and most dramatic expansions has been at Geismar, La. This is a complete chemical complex for the manufacture of vinyl monomers, agricultural and Rydene synthetic rubber.

A. Agricultural chemicals are made in Geismar plant.
B. Rubber chemical plant at Geismar is now operating.

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$300,000,000 Expansion and Modernization Program

U. S. Rubber has undertaken a world-wide expansion and modernization program which will involve a total investment of more than 300 million dollars. We are well along in this program and expect it to be completed in three to four years. Approximately 200 million of this program is for the modernization and expansion of our tire production and distribution facilities, both in the United States and abroad and for chemical, textile and synthetic rubber plants which supply raw materials and components to our tire manufacturing operations. The remainder of the program will provide the other manufacturing divisions of the company with new facilities in the United States, Europe, Latin America, Australia, the Far East and Canada devoted to products other than tires and tire components. The program will open new markets for us at home and abroad, and will strengthen our competitive position in the more profitable areas of our business.

New Chemical Complex

At Geismar, La. we have invested more than 30 million dollars in a modern chemical complex, and our investments there will continue to increase in the future. Three plants are now in operation. One is producing vinyl monomers for use in plastics. Another is producing agricultural chemicals, and a third is turning out improved rubber and agricultural chemicals. This spring a fourth plant will start making Royalene, the new ethylene-propylene synthetic rubber.

U.S. Rubber Sales by Product Groups as Percent of Total Show Increasing Diversification

Areas of the company’s most rapid growth during the last quarter century are indicated in this chart. Chemicals, textiles and fibers, as well as our business outside the United States, enjoyed the greatest growth. In the meantime, tires, footwear, general and industrial products continue to be an important source of company business.

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Geismar is also the site selected for Rubicon Chemicals, Inc., a company jointly owned with Imperial Chemical Industries, Ltd. of Great Britain. It will produce aniline and tolylene diisocyanates for polyurethane synthetics, used in foams, rubbers and surface coatings.

In Scotts Bluff, La. we are doubling our capacity for Kralastic ABS plastics. These tough plastics are widely used in automobile dashboards, body parts and panels, and also in travel trailers. They also find wide applications in appliances, pipe, telephone hand sets and a host of other uses.

Most Modern Tire Plant in U.S.A.
The most modern and efficient tire plant in the industry recently started production in Opelika, Ala. to satisfy the rapidly growing tire market of the southeastern states. An intensive modernization program is also in progress in our other tire plants. We have also opened new tread rubber plants in Conyers, Georgia and Wilkes-Barre, Pennsylvania, and others are now in the planning stage.

Argentine Project
Production is expected to get underway by midyear at San Lorenzo in Argentina by PASA, an industrial complex in which we have a 24 per cent interest. It will produce synthetic rubbers, chemicals, carbon black and other hydrocarbon materials. The principal market for these products will be the thriving Argentine tire industry, but this market can be extended throughout Latin America.

Model is of Geismar Royalene synthetic rubber plant.

Turkish Tire Plant
At Adapazari in Turkey, U. S. Rubber in 1963 started manufacture of tires in a new plant. It will fill the needs of a rapidly growing market for tires in Turkey, a nation with an adequate road system, a growing automobile industry and an expanding transportation network.

English Chemical and Plastics Plants
At Bromsgrove, England the Company has established a subsidiary, Sto-Chem Limited, a company which manufactures synthetic latices that are marketed in England and on the continent. Also in England, we started to construct a plant to make the ABS plastic, Kralastic.

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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.
16

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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.

US Rubber Annual Report – 72nd Annual Report – Page 21

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Page 021

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.

US Rubber Annual Report – 72nd Annual Report – Page 22

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Page 022

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

by
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

by

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.