Los Angeles herald., 1909-10-10
RUBBER FAMINE
AFFECTS PRICES
OF AUTO TIRES
SERIOUS CONDITIONS FACE
AUTO INDUSTRY
OUNCE OF RUBBER TODAY WORTH
THIRD OF AN OUNCE SILVER
Unprecedented Demand for Auto Pur-
poses Eating Up supply So
That Consumption Eats
Harvest

In most interesting interview with
II. S. Firestone, president of the Fire
stone Tire and Rubber company, much
light is shed upon the steady advance
III the price of rubber, consequently the
advance in price of rubber tires-one or
the most important features of the au-
tomobile industry of the country today.
Mr.. Firestone says:
"A serious condition ConfrOntS the
automobile industry, and especially the
tire manufacturing end of 1t, in the
steady and rapid advance made recent
ly in the price of crude rubber, which Is
the prime factor in tire cost. Today an
ounce of rubber when washed and pre-
pared for manufacture is worth one
third as much as an ounce of pure
silver, and the price is steadily advanc-
ing
"AIl rubber manufacturers are af-
fected alike, inasmuch as none of them
controls any portion of the source of
supply, but all are compelled to buy in
the open market Consequently tire
prices have been materially advanced
over the prices prevailing three months
ago; equivalent advances have been
compelled in other lines of rubber
goods.
illustrating the changes in the price
Of rubber gum, it is a matter of record
that during the years of 1905 and 1906
$1.35 a pound, but during the panic of
1907 the price fell steadily, finally touch
ing 81 cents in February, 1908. Just al
this point the Brazilian government,
which practically controls the price OF
Para rubber, stepped in and by loaning
heavily to rubber gathering syndicates
and granting them other concessions
was able to keep the market from being
glutted by an oversupply. When the
demand for rubber quickened with re-
newed business activity, the price was
steadily advanced until it is now quoted
at the record-breaking figure of $215
pound for immediate delivery. The
floating supply is so small that there is
very little to be had even at this fig
ure.
Most of the rubber used in high
grade tires comes from the Para and
Ceylon districts. The former is located
up the Amazon river, chiefly within the
borders of Brazil and Bolivia, and the
rubber is harvested from wild trees
during the dry season. The Ceylon
district comprises Ceylon and adjacent
islands, where the rubber Is gathered
from extensive plantations. Some rub
ber comes from Mexico. Africa and
scattered portions of South America,
but most of this is inferior in quality
and unsuitable for high-grade tires.
Crops are being harvested up the
but at present stocks are depleted, and
this new rubber will be snapped UP as
rapidly as 1t finds it way into the mar
ket, and no material reduction in price
Is to be expected for some time to come.
The present enormous demand is not
to be wondered at when it is rememb-
bered that the 1909 output of automo-
bile tires alone will amount to nearly
$50, 900, ,O00 and the probabilities are that
next years production will aggregate
between $45, 100000 and S5O,0OOOOO.
Rubber tires now take the lead in
the consumption of high grade rubber
gum, having taken precedence to boots
and shoes, which for years headed the
list.
"The average increase in the yield of
crude rubber per annum for several
years back has been about 10 per cent
So great is the demand from the auto
mobile industry that 1t Is regarded
doubtful If the harvests of wild rubber
will increase sufficiently to keep pace
with the growing demand, and the
world will eventually have to look to-
wards the. rubber plantations for
good share of its future supply"