Beautifully engraved certificate from the Montague City Rod Company - Massachusetts
issued in 1926. This historic document was printed by the Franklin Lee Division - American Banknote Company and has an ornate border around it with a vignette of an eagle. This item has the hand signatures of the Company’s President, Chas. W. Schuler and Treasurer, Walter Schuler and is over 84 years old.
Old Montague City Rod Company Ad - Shown for Illustrative Purposes
History from 1930 Financial Report:
MONTAGUE ROD & REEL CO.: Established in Massachusetts in 1887 as Montague City Rod Co. Present title adopted Sept. 20, 1927. Manufactures split bamboo fishing rods. Plants located at Amherst, Mass., Post Mills, Vt., and Montague City Mass. Acquired about 1906, Malleson Rod & Reel Co., with plant in Brooklyn, N. Y. for manufacture of fishing reels. In 1928, acquired control of Montague Oar & Paddle Corp., manufacturers of "Ted Shea" oars and paddles. Employees number 400.
MANAGEMENT: OFFICERS: W. B. Pirnie, Chairman and Treas., Springfield, Mass.; C. W. Schuler, Pres., Montague City, Mass.; R. B. Bennett, Vice-Pres. and Asst. Treas.; S. R. Cate, Sec., Pittsfield, Mass. DIRECTORS: C. W. Schuler, C. W. Hazelton, Montague City, Mass.; W. B. Pirnie, J. A. Humes, Springfield, Mass.; S. R. 'Cate, Pittsfield, Mass.; Geo. E. Williamson, Mittineague, Mass.; R. B. Bennett, Greenfield, Mass. GENERAL AUDITORS: Hillman, Peters & Co. ANNUAL MEETING: Second Wed. in Sept. OFFICE: Montague City, Mass.
COMPARATIVE INCOME ACCOUNT, YEARS ENDED, JULY 31 1929 1928 1927
Total income $70,755 $105,964 $79,510
Federal taxes . 3,700 4,751 11,250
Net profit •$67,055 '$101,213 $68,260
Distrib. per share, preferred $7.00 $7.00 $7.00
Earned per share, preferred 11.22 16.94 11.38
Earned per share, common 1.26 2.97 1.31
Number of preferred shares 5,974 5,974 6,000
Number of common shares 20,000 20,000 20,000
Before charging off $28,736 in 1929 and $67,463 in 1928, expense in connection with advertising campaign.
COMPARATIVE BALANCE SHEET, AS OF JULY 31
ASSETS: 1929 1928
Property account $500,767 $517,248
Cash 36.199 61,455
Notes and accounts receivable 57,306 78,103
Trade acceptances receivable 13,198
Accrued interest receivable 148
Inventories 448,224 315,080
Investment 11,310 8,310
Deferred charges, etc. 16,704 21,135
Preferred stock $597,400
'Common stock 363,530
Notes and accounts payable 110,555
Accrued dividend ..
Total.. $1,083,856 $1,001,331
Current assets $555,075 $454,838
Current liabilities 122,926 83,585
Working Capital $432,149 $371,053
Represented by 20,000 no par shares.
CAPITAL STOCK: 1. Montague Rod & Reel Co. 7% cum. participating preferred: Authorized, $600,000; outstanding, $597,400; retired to July 31, 1929, $2,600; par $100. Has preference as to assets and dividends and participates equally share for share up to $3 per share with common after latter has received $3 per share in any year. In liquidation, entitled to 110 and dividends.
Callable at 120 on any dividend date upon 30 days' notice. Has no voting power unless six quarterly dividends are in default, when it shall have equal voting power per share with common. Annual sinking fund, beginning July 31, 1927 of at least 10% of net income after preferred dividends to purchase preferred at 110 and if not so purchasable to revert to company. Without consent of 75% of preferred no mortgage or funded debt (except purchase money mortgages on property hereafter acquired) may be issued. Issued to acquire original stock from founders. Initial dividend of 1% % paid June 1, 1926. Regular dividends paid quarterly, Mar. 1, etc. to stock of record Feb. 20, etc. Rating, Caa
Offered ($600,000) at par in Apr., 1926 by William C. Simons, Inc.; Springfield. Mass.
2. Montague Rod & Reel Co. common: Authorized and outstanding, 20,000 shares; no par. Preferred participates up to $3 additional dividends after common receives $3 per share in any year. Has exclusive voting power with restrictions (see No. 1). Prior to recapitalization in 1926, cash dividends were paid without interruption since 1890 ranging from $6 to $120 per share; in recent years paid $10 per share in 1922; 1923, $15; 1924, $10; 1925, $15. Also paid stock dividend of 400% in March, 1922 and 66%%
Montague City was a tiny village, first settled in 1792, when it became a manufacturing center in 1885. Taking advantage of the water power available at the terminus of the reconstructed Turners Falls canal, which emptied into the river at Montague City, the Montague City Rod Company set up their operations in 1882.
Montague made a variety of bamboo rods, including a line of long and sturdy surf rods, as well as boat rods. The venture was successful, but things really took off in the 1920s when the Montague Machine Company developed a milling machine that could plane the individual bamboo pieces to exacting measurements. The Montague Rod Company used it for over 20 years, and as many as one thousand rods a day were made in the factory. It produced more rods and had the largest line of split bamboo rods than any other company in history. The 1920’s price ranged from $1.25 to $30, and the rods were available just about everywhere.
In 1927 the company name was changed to Montague Rod and Reel Company. The company began to produce a line of reels in a range of prices and types.
This historic fishing tackle company came to an end in 1934 when Montague was purchased by the Ocean City Manufacturing Company, of Philadelphia, Pennsylvania. The Montague City factory continued to produce fishing rods, but all reels were produced in Philadelphia. In 1955, the name was changed to Montague-Ocean City Rod and Reel Co.