RUBBER PARTNERS

Evening Post, Volume CIV, Issue 28, 2 August 1927, Page 12

RUBBER PARTNERS

THE TWO DUNLOPS

ANGLO-AUSTRALIAN DEAL

The directors of the Dunlop Rubber Company of Australasia, Ltd., on 19th July announced that they have entored into a provisional arrangement with tho Dunlop Rubber Company England providing for the financial association ot the two companies, and the closest possible technical and commercial alliance. The arrangements involve-— (1) The sale to the English company of 500,000 shares at 255, with a call on an additional 500,000 shares for four years at 30s, with suitable safeguards to the Duulop Rubber Company of Australasia, Ltd., as to the exercise of the option and resale of the shares (2) The increase in the number of directors to eight, of which number three shall be the nominees of the Ensbsh company, so long as its shareholding is maintained.

(3) Tho formation of a separate New Zealand company, jointly owned by the two Dunlop companies, for the better development of trade in that Dominion According to statements in the Melbourne Press, based on a communication from the directors, the Australian company will have the full benefits of the trade secrets and the various processes of the English organisation. One of these is "the Anode method of treating rubber, which has been largely experimented upon with encouraging results. If its full application in manufacture comes up to promise, it will be much to the advantage of the businesses entitled to use the process. ... In addition to businesses in France "and Germany it has an American subsidiary which has been steadily making its way in the United States, and extending the name of the company's products there, so that a wide association will be assured to the Australian organisation . . . In view of the investment in the company the British board will have three nominees on the board of the Melbourne company, but it is agreed that the control of the business shall remain in Australia. All the time the two concerns will be in the closest assocfa-

Shareholders, it added, "will re cognise that this sale of scrip is not thai of placing a parcel of shares with a group for market purposes. It is being made to bring into the business as ruC, * ffl.° st- im P<?rtant British lubbei manufacturing, organisation." op Rubber Company of Great Britain has had its whole organisation overhauled. That was after the trade colnnn 36 '" , 21> when a losa of £8,320,----000 ,vas shown. It led to a change in the management ana the presence of Sir Erie Geddes and Sir George EeharMlin the board room. Part of the loss arose from trade losses by the parent concern, and in part from those P o Ats ancfa 111"65- ™? P°aition was faeS and a reconstruction scheme, which evolved writing the ordinary 20s shares lown to 6s Sd each and the "C-pre fcrence shares to 15s each, was adopted However, the comer was turned almos at once, and in 1925 ordinary shareholdcent ™ J?ceivl^S a dividend of 15 per SoT 2 t0 h; e r ce Pnt?::^nree ldy£t iooooo' eet a o^ ut up reserves V 1? X' ? ud, the company's balanceat O£" g 8 2 Oc fnon Sh a»d bills ' stood at fc2,829,000, or about £2 000 000 more than in 1925. Sundry creditors amounted to £1,451,000." eTca; lto™