The Greeley tribune., 1909-08-12
Rubber News
(From "Financier and BnII'

II (From "Financier and BnII'o"''''
London, June 4, 1903. l..
| The comparative QuietneSS -
| Plantation Rubber shares since NV
HOLIDAYS is due to anythins hnt u
| shrinkage in the Investment detu'"u
for these securities. We have never
admitted-and decline 10 ADMIT
that there has been, In the orliha'y
accepted sense OF the word, boom
in Plantation Rubber shares prefer
ring. AS we do (and we think risht
Iy) to regard the recent enhance
ment of values as nothing more thah
a recognition on the part Of the ,u-
yesting public of the intrtDsc merits
of these issues. And. When al IL
said. the investor. in ssupporuhs
Plantation Rubber shares. is IN our
humble opinion. acting VT oey IL Is
perfectly true that the mao Who puF-
chases the higher priced Shares TO-
day gets but a comparativfly trivial
return on his money. B9t be can
not fail to grasp the ess@o otal iacts
that these dividends have BEN earn
| ed. in practically every CO. from
small acreage of the tot4l planted
area of each estate. that efA profits
which have accrued wereENon at a
very small cost compared With the
selling price of the produce nd that
in the Immediate future. Naile the
outputs will substantially Increase,
there will be no eQuivale1t rise IN
production costs. Annual &dements
already published show. VIII scarce
ly an exception. that mans grs have
succeeded in bringing dowt working
costs to level below WI, many
experts, a year or two aKo, regard
ed as the irreducible minihum. and
so long as these costs are Aept in the
neighborhood of 25 cents b. pound
of rubber produced, the intestor has
nothing TO fear. Under such cir
cumstances rubber selling at 90 or
even so cents per pound Wplld rep
resent very handsome kmrn on
money placed in Plantation Rubber,
but. as things are going tpday the
chances of any such relapseSn values
may be regarded as excee4ingly re-
mote. AS matter of fact, the trend
of raw rubber values is IL the up
ward direction, and the Bales re-
corded in tonight's report b Lewis
& Peat for fine hard para Iat Sl.i5
per pound Indicate that SUPPLIES are
short of the industrial demAnd We
hear. indeed, that brokers htya hard
y sample of good plantation rub
Der to show, and we know khat sew
,ral estates are sold fortard for
months or year to come. II may
De surmised. even by the md unini-
lated. that such bargains baye not
been made to the detrime4t OF the
rubber companies. most d which
have done uncommOnly well out of
'uch deals. Further. whenS W. con-
'ider the cleanness of the Paw rub
Der market. the additional Yields
rom the leading producin Planta-
ion companies, far from a@sing any
reaction, can mean nothing bore nor
less than materially increaski profits
for the current year, The Aiustrial
demand for the modity IS insist
ent. and is not confined to any one
European country, whAe it is fairly
notorious there are buyers on behalf
Of the United States al every rubber
sale held in London or the provinces.
The investor. then. in Plantation
Rubber shares has nothing to fear.
so far as we can see, from any slump
In the market for raw material for
many months to come"
Plantation rubber sold in London
on June 26th for $l.75 per pound.