Show I I RUBBER RUBBER INDUSTRY r FACES FURTHER FURTHERS ER S 1 COMPETITION Babson Gives Facts for Investor and Auto C Owner 4 9 HILLS lULLS MIlS Mass Dec Roger 21 21 Roger W Babson Babon baaI L I jut completed an analysis of o the I t rubber Industry that 1 I Ii of ot vital vitalI I to both Investor Inventor and au au P I owner A summarY of hl bli I findings Included In 5 statement issued Is- Is ll I sued today follows follow L I Braill was wa the th original source ot of t crude rubber but In 1913 1912 we e be be- be can b-can gln to got gt et plantation rubber grown mainly In the th orient Since Sine that date the th use UIO u of o plantation or cuI cul- cul cul rubber has hs rapidly Increased increased Increased ed Brazilian Importations bo base 0 approached the th vanishing point The The Th output of plantation rub rub rub- mb-br mb br bel for 1922 for Instance 1 is suti- suti esti estimated mated at nt 00 oo long tons ton on as a a com corn compared I pared pard with 48 45 long lon tons In au 1913 1 I crud crude rubber In that ea n All 2000 39 long tons ton and In 1922 HAS ass about Planta Planta- Plantation Plantation tion rubber in 1922 1 22 supplied about 53 per cent of all aJl crude rubber produced The Th great creal demand tor for rubber for tires tire with the th In all au- au I and the th el ely i high prices price for rubber rubbe-r eral a ears I ago caused a larg large arc amount of capi- capi capital capital capi capital tal to be b Invested In rubber planta- planta pantalion plantations lon planta-lon lion In the tho th orient In the BrItish and anti Dutch colonies It takes six Ix to se n years eara I before trees b n to produce profitably Co 0 that those early In the tho field ob- ob obtaIned ob obtained large larse pt for tor several I years Th Tb flotation of ot m plant plant- plantation plant especially In Great Groat Britan was carried to an extreme and the tb In Investors were kept In a high stat state of ot The re- re re result sult ull was WIlS that despite warnings to the cultivation was car car- car carried tied ried b end present needs and th the price of trade nude rubber aho showed ed a do do- do d an pl puce e In 1914 ot of 5 64 a pound at Now New V Yolk to 85 In tn 1920 In the th average price for the tho year was wea 17 a IL pound PRICE FIXED TRIED PRIED This critical condition for tor CI dude ude producers prompted the British government to appoint a group groUf nt Ot business men now no l n as the th Stevenson to 10 tomales make an investigation of ot tb the rub rub- rubber rub rubber ber beg plantation industry As A are a cc- cc suit the lh British colonies with the consent ot of the th British government passed palled laws restricting the th ship hip shipment thip mn men ment of rubber by mean means of ot an cx- cx port es-port port tax Standard production was fixed as Of ot 1920 at long loog tone tono E up to 60 per rent cent ent of this amount bear the nominal duty of ot one ono and one O one cents per pound exchange being taken R et t par Export taxes on nl br ond this amount itt itt- In-crea In creao o rapidly the Idea being to tomako mak mako It unprofitable to export beyond l a tonnage t Crude the th I part of 1932 1922 1 32 was around it Its low point at S 15 16 a pound The lawent law lan went into effect Nov No 1 1922 and by the part rubber ot of January 1923 crude rub rub- rubber rubber rub ber had to about 38 35 a poun In the New Xe York market IX IN OF OP WAR WAlt This Ihs liw hw has ha naturally ath red Ut up a II great deal of ot discussion On time part ot or manufacturers using rubber in this country and also alEo In Great Britain Imo Somo believe that the step top sag Mas as ne necessary essary ry In order to preens the plantation and Insure an ItIs ade supply In tact fact It Is stated that th the tho present sup over-sup oversupply ply Is t and that unless further planting Is I carried out shortly that ther Hier will III not be b enough h to meet met the th demands of the th grow In ing automobile industry Oth Others r claim that thit the th United Stal State should have It Its own aup- aup sup pl ply supply ply nd be b Independent of foreign countries tor for this thi Important com corn commodity It is Ie i pointed out that in case cat of war our own bei supply of crude crud rubber would be benec i nece Indicate wary ar Today e Indi- Indi Indicate Indi cat cate that the British produce rout 75 par pam cent of plantation rubber I the th-e Du Dutch abou about t 18 12 per cell cent t th thel I French and nd Dell about R 6 per cent percent and Amen American an about 3 2 per cent ent nt America on th lb tho other hand I uses 0 oer er 70 per cent cf ct the tha crud cruda I I rubber of ot the th world At the th tb lest congress appropriated re 3 was Bits ed cd for tor an mn ln of ot the th crude rubber situation In all parts of the world The Th Idea Iden is to find out out I I I whether it Is I 1 possible and for tor tItle country tn to produce a large part of what it needs neds GREAT T PROFITS GONE GON EThe I The tire lire tir industry In the United Stats Stat's Ue about b ut 70 0 per P cent nt of the tho rubber imported and naturally I domInates the rubber Inch indi Ind t goods use ulle us 14 H per dent I boots boot and Ant shoes shoe 2 S per cent mis- mis mis miscellaneous misI I products product 8 t per cent In I I InI casine 1922 the output of ot tire casings casing I Inas nas 1111 d 1 38 3 and anti it Is In d that B U over OHr I wIll Ite he 1 produced this year Au- Au I registration for tor the yea I wilt ly Sl cars average t well 11 OH o e In Ab a t r or ot the large profits I In the industry there ther was u an ab ab- ab abnormal normal 1 expansion ex during thear th the nar ar Too large lal l a number of companies sera era Into the tire manu ma field end nd 1 I isnow now en cc is 10 now er cry ry ken keen Tho Th Th Increase In the th price of ot crud crud crud- rubber and other rAna raw ran ma- ma terla materials 1922 with low prices for tor the tho th finished title ha has h greatly r i the margin marln ot of profit and In 10 some lIone cases case It out alto allo gether ft eral are re now no lance tence h II a fight fo for very Taking 1913 as 1111 a bue at th average Drice Index of tire Is i now oW around 72 as corn com compared pared Pard with lit i in 1920 ig and the t low record ecord of 01 62 2 In 1915 l l nr FIGHT AI EAI Wih Ih N en great increase In n ness In 1924 1824 tho th pres-nt pres below at 7 pel pe cent be- be 10 low normal ant Ih tho readjustment re bout about three completed and I a andI anda L curtailment In demAnd the thI th I for tor equip I allI for tor new au all all- n L tieL Welt se IS II a smaller d tie tie- manit mand for replacement P of on the tho ted reet purchasing on tIe te ot of the tho public I the out look III I for a continuance Of th MONEy MONET Mo NEW rW bRig TORK Dec D c 21 Cal 1 money mony firm 4 low f 4 41 I ruling rate rat 4 44 a closing bid 4 5 r offered lit at t 4 3 last Ia t loan I caI I loins loans against a lances acceptances 4 Time Tim loan steady mixed colla collat I eral 90 60 days day f 6 6 t l months I 6 prime commercial paper Aper f 5 |