Document 9VjG54dnRMwJvg62peV2Qw9L

,8^ .V- UNION ASBESTOS & RUBBER COMPANY T ZJo Z)he SHAREHOLDERS UNION ASBESTOS & RUBBER COMPANY Chicago, Illinois March 20, 19-17 There is submitted herewith the Annual Report of Union Asbestos A Rubber Company for the year ended December 31, 19-16. Appended thereto is the Balance Sheet as of December 31, 19-16. together with Condensed Statement of Income for the year, and State ment of Earned Surplus. Earnings and Dividends The net earnings for 19-16, after provision for depreciation and federal Income Taxes, amounted to $332,331.72, which compares with an adjusted net income for the year ended December 31, 19-13, of $537,-'128.89. In computing the federal Income Tax for 19 16, a credit of $107,787.68 h as been taken covering the claim for refund with respect to the unused excess profits credit for the year ended December 31, 19-16. There is also included in income $139,08S.OO representing the excess of the proceeds received over the cash value of policies carried by the Company on the life of Mr. L. L. Cohen, the late Chairman of our Board of Directors. Earnings for 19-16 amounted to $1.12 per share on the Common stock outstanding, as compared with $1.13 per share for 1913. Dividends of seventy cents per share, aggregating $332,70S.80, were declared during the year 19-16. After the declaration of such dividends there remained SI99.3S2.92 of net earn ings, which were added to famed Surplus. Sales and Production Sales in 1946 amounted to $5,139,137.89, compared with $8,022.781.[ 1 in I9i5. The reduction in sales volume was due largely to the elimination of war orders, the shortage of raw materials, particularly steel, and strikes in our own and suppliers plants. Earnings were adversely affected by price control. As price controls were eliminated, prices were adjusted to compensate for increased labor and material costs. Orders on hand, particularly for railroad equipment specialties to he delivered in 19-17, arc very substantial. Our ability to complete these orders during 19-17 will depend upon the availability of man power and raw materials. Labor Relations Substantially all of the employees, other than those serving in administrative capacities, arc represented by labor organizations. During 19-16 strikes occurred in all of the Company's plants. During the general steel strike, the Blue Island plant was not in production from January 21. 1916 to Eebruarv 27, 1916. PASE 2