The daily gazette., 1883-02-03
ONE MORE mon0PoLY.
How an Important Industry is HAmPered
by Speculation.


How an Important Industry b HnmPered
BY Speculation.
eAfechanical News.l
A corner In wheat can be accomplished to
an extent sufficient 10 affect the market
very materially; but there are 80 many
wheat growers that no one speculator or
clique Of spectators is large enough to
cover the whole ground. An operation In
that staple Is, therefore, at best only par
tial victory of mind over matter. But when
1t comes to an article like india-rubber.
although every one uses it more or less, the
scope of the transaction Is 80 limited that 1t
Is possible to make very complete corner
indeed. 1t Is then that the ascendancy Of
genius over the productive forces of nature
becomes fully manifest. This Is what has
recently taken place, with the effect of a
very angry protest from rubber manufac-
turers, and wide differences of opinion
among them as TO the way In which the
emergency should be met.
The price of raw india-rubber or caout-
chouc was in 1879 only IS cents per pound.
About that time q group of spectators
turned their attention TO this field of effort,
and by obtaining control Of the principal
sources of supply soon advanced the price
to 81 per pound. There are still some
avenues, however, through which the pro-
duct found its way to market without their
advice and consent, and the price declined
soon afterward to so cents. 1t being evi-
dent that nothing was needed for the full
accomplishment Of their purpose but more
perfect system Of operations, the speculators
organized new movement, and this time
made thorough work, gaining
| control of the whole rubber pro-
| duction of South America. The
| district from which this useful article
mainly comes Is In the valleys OF the Anna
zon in the interior of Brazil, and the policy
which the monopolists are said to have
adopted is to keep the Indians and small
/ traders I'm rubber constantly In their debt,
and thus maintain such hold upon them
as the Hudson Bay Company formerly had
/ upon the Canadian Indians. AS result OF
this able management, the price of rubber
| has been raised to 81 20 per pound, and has
even gone as high as 81 %, with fair pros
pect Of reaching Sl.50, unless some way is
found of overthrowing the power OF the
| clique.
| The chief inquiry to the public interest
which Is apprehended from this state OF
things is not SO much the increased cost of
rubber goods-though that is by no means a
small consideration-as the probability that
such goods will be largely adulterated by
| grinding up old or refuse stock and mixing
1t with the pure article. The more expen-
sive the latter becomes, the smaller will be
the proportion used, and inferior rubber
clothing, shoes, huse aud springs will be
the necessary result. Manufacturers
OF such goods can hardly be
blamed for seeking 10 protect themselves
In some way from loss, and as the increase
In cost has been brought about by what
they consider unfair and oppressive means,
they are not likely to be over scrupulOus in
devising a remedy. Purchasers of rubber
goods, on the other hand, will not willingly
pay ali exorbtant price for good article,
and will be readily induced to put up with
a cheaper grade as the lesser of two evils.
In Justice to the manufacturers, however
1t must be said that they have preferred moi
TO resort to any underhand measures, but
have met the situation boldly, and propose
to supply the public with good goods at 8
reasonable price or none at all. At meet
iBgs held in New York by the rubber
makers, representing nearly the whole trade
of the United States, the rubber boot and
shoe manufacturers agreed to close
their factories on the 23d of Decem-
Der, and not to open them again
until the price of crude rubber shall have
declined TO what majority Of their number
may decide to be a reasonable figure. The
makers of rubber goods of other descrip-
tions resolved, with like unanimity, to re
duce their consumption 25 per cent. cub
ject, as In the other case, to the urejudg-
ment of their body. Aud as still further
evidence of their determination TO free them
selves from the grasp of the monopoly, the
assembled manufacturers, representing over
go firms with an aggregate capital
Of more than $500, ,000, 900, provided for
the appointment Of a committee to mature
plan for the organization OF rubber i'm
porting company with capital Of not less
than 5000. This expedient will require
some time, and much future discussion OF
details, to be fully carried out, but the moral
effect of its announcement will be salutary.
AT all events, it is manifest that the
"corner" will be 4ntagonized with weapons
as formidable and resources fully as exten-
siye as its own.