OCR Text |
Show Hoover Would Survey Rubber Supply "DROPOSAL that the American gov-ernment gov-ernment investigate the rubber production pro-duction possibilities of the Philippines and South America was Indorsed publicly pub-licly by Secretary Hoover after he had conferred with representatives of British Brit-ish rubber-producing interests and American consumers. Secretary Hoover Indorsed the propositi pro-positi In a letter to Senator McConnlck (Rep., 111.) In spite of assurances from the British representatives that the only object of recent British legislation legisla-tion restricting rubber production In the colonies was to establish a price to Insure reasonable returns and expansion ex-pansion of rubber plantations. Representatives of the American consumers of crude rubber said they were desirous of obtaining an adequate ade-quate return to the producing Industry, Indus-try, but feared that the restriction plan would stimulate speculation and runaway prices, which would be disastrous disas-trous to British producers by again stimulating overproduction with ultimate ulti-mate collapse In prices. This, they said, would in turn Injure American consumers through speculation and losses. The British representatives replied that the restrictive legislation had been necessitated by the virtual collapse col-lapse of the industry, owing to prlce9 below cost of production. They said their association would do all In Its power to prevent runaway prices. After pointing out In his letter that the United States consumes 75 per cent of the crude rubber produced In the world, while most of the rubber-producing rubber-producing properties are controlled by the British, Secretary Hoover said: "It is highly desirable that this department de-partment (the Department of Commerce) Com-merce) should be placed In position where we can make an exhaustive Investigation In-vestigation covering a wide variety of subjects, such as areas of possible production, land and labor laws, labor la-bor supply, transportation, taxation, production costs, profits, security of Investment, etc." |