The Birmingham age-herald., 1910-08-12

l v or attempt to control prices of crude rubber or of any manufacture of rub | ber
 "The only relations it ever had witt any rubber manufacturing concern hal | been solely with reference to the salt and delivery of its crude products. l had at one time serious differences witf 0 subordinate company of the United States Rubber company with reference
 to the quality of rubber delivered. New Contract Made
 "These were afterward reconciled tc mutual satisfaction but the arrange ment of these differences on a new contract involved no new subjects an, | Is the only arrangement of any kinc that we have ever had with this com pany or any other.
 with reference to my personal in- | terest in the matter I will say thai for 10 years I have been greatly in. terested financially and otherwise ir the development of plans for extract ing crude rubber from shrubs, vines and trees by scientific chemical and mechanical processes instead of the old-fashioned tapping method now in general use in some countries.
 "The formation of the companies to which I have alluded were for the nec- essary organization of the business in various parts of the world. There has never been any attempt at concealmeni on my part or any reason for con cealment of my deep interest in this development. The measures of success which have been achieved by the young men who have had the management of the companies has been a source of sat isfaction and pride to me.
 Among other things accomplish ed Is the yearly production in Mexico by our company from the Guayule shrub of about ten millions of pounds of crude rubber; other companies producing In Mexico about an equal amount To ac- complish this an entirely new industry was established 15 years ago. The Guayule shrub then on the Mexican plains and the lands on which 1t grew were practically valueless then We expect in time to accomplish good re- suits in other countries. l have no apologies to make for my part which has been unimportant in this work.
 Tn the success attained the tarin of the United States has played no part whatsoever.
 Price of Rubber Fixed
 "The price of crude rubber is fixed in the markets of the world by the memorable law of supply and demand. It is governed by auction sales at Lon don and Antwerp. The great increase in the price in recent years is un- doubtedly owing to the enormous in crease in demand for automobile tires and for electrical and other industrial uses with no corresponding increase in the available supply.
 The change in our tarin of per cent on a very limited number of the manufactures of rubber in August, 1909, had as little to do with 1t as had the movement of the tides.
 Tn 1902 the price of fine para was 70 cents pound; in April, 1910, the price reached 8 a pound; the present price being about $2.40 pound. If the price has been affected at all by the product of the Inter- er-Continental Rub- Der company and other kindred rubber producing companies 1t has been to im- pede the advance by furnishing new source of supply.
 Crude rubber is and has been on the free list of our tariff and there has been no movement or suggestion from any source to place 1t on the dutiable list. If this important raw material, which competes with no domestic product. should be placed upon the dutiable list the duty would clearly be added to the cost of the rubber to the manufacturer or the consumer and would not affect the production and the price would still be controlled by the markets of the world
 "Ridiculous Statement"
 '.Of all the redicuous statements made by the Kansas senator none is quite so ridiculous as that in which he states that the nter-Continental Rubber com pany absolutely furnishes the crude rub Der supply of the world. The worlds production of crude rubber in 1909 was about 1,7500O0,OO0 pounds, of which the United States took about 9S,0O0, 900 pounds. The production of the Inter-Continental Rubber company and its subordinate com panes was about 10000 900 pounds or less than six-tenths per cent of the whole. As have already stated the Inter-Contt mental Rubber company has never had any relations with the other producers and has never controlled or attempted to control or to influence the production or the price of crude rubber. Any one who has ordinary intelligence must understand how futile such an attempt would be if made To say that the advance, which took place from month to month in the price of crude rubber throughout the world from 70 cents in 1902 to 8 in 1910 was owing to an unimportant decrease in production to increase of 90 to 35 per cent on importation less than 1 per cent value of the total production of rubber displays depth of ignorance which has rarely been reached The claim that this same change of from 30 to 35 per cert enabled a party who never had any in- terest whatsoever or any connection with any one engaged in the manufacture of rubber to advance the price of all rub Der products and to make enormous prof It's out of such advances discloses a mar velous aptitude for fiction In narra- tive
 The Dividends Paid
 As to the dividends paid by the Inter- Continental Rubber company on it's pre- ferred stock in the early months of the present year. l will say that these were deferred payments of cumulative divi- dends, deferred as the earnings of the company had heretofore been used ir the development of it's business. Not one mill of the earnings from which dividends were paid could be attributed as I have already stated to the tariff of the United States or to any change in tariff rates.
 "The change in the tariff on manufac- lures of rubber not otherwise provided for from 30 to 35 per cent In paragraph 4s3 was not made or recommended for protective purposes or at the instance at or for the benefit of any domestic man ufacturer It was made upon the recom- mendation of the treasury experts solely for administrative purposes. The fact fs that at the time the tariff act was passed the American rubber manufacture for most classes of goods was in undisputed control of the American market and on a number of cases the domestic producer was able to export some portion of his product to other countries. The statis- ties submitted by the finance committee to the Senate in April. 1909. showed value of manfuacutred products in the country in 1904 of $14s, 100000 and exports in 1907 to the value of over $6.000,0O0, while