The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-03
REASON IN THE RUBBER CRAZE
gaD PRO NOTIONS ~ ENGLAND,
RT WtNY are SOUND.
Nmcrirsn Expert says NEST &C shs Gem
usnlr> Have . Coed chance 70 PrssUer
Increasing Demand Tor nuh0er
IkrI, To- Make Prices lnerease Again

..... l,vs characterized the enormous
nr .r shares ia rubber companies
. mother South Sea Bubble. Just
.,... ha- caused the rubber boom was
. % Yesterday nv = ". Dunbar. Who
....,-president ~ the New York Com
'lal Company. which ip one % the
...st importers Of and dealera in crude
~ m this country or ia Europe.
Nr Dunbar. who iS also vice president
Oh. me First National Bank Of MontciaiT.
j. has just returned from London.
wrther he went for the purpose OF look
NJ, into conditions for has own informa-
.Dr and guidance.
Inc keynote of the situation in Lon
r.n aid MIR. Dunbar at his omices.
- Broadway. Yesterday. -is the fact
nat rubber planter in Ceyion 10 able
I'd, deliver his product in London or in
New York. all costs and charges paid.
'or ons shilling or twenty-five cents a
round and sell Il for $50 to s7y.
From March. IsOs. 10 March. IeiO.
TIA pncs % crude rubber advanced more
nan 80 per cent. To be nearer exact
ne price has gone zap In two years from
~ or % cents . pound 70 s2.1s. This
dus TO tho fact that the usss for crude
uIbbsT have become EssuSa more vurisci
within the last few years. II 10 sntsrinR
nto the manufacture Of almost every
necessity. Two or three years ago IL
Ess estimated that tho total production
e the world approximAtsd eO.OOo tons.
To-day IL IL nearly $1,000 tons.
What has been the greatest factor
n consumption 10 the automobile. the
motor bus and the heavy auto truck.
II 10 estimated that the ordinary auto
mobile business will not inOr~aas very
r1nsidsrahly from now on. hut the truck
business will increase to such an eStsnt
mat horses will almost disa ppaar nom
ne streets. In London. where the 3, rand
ussd to be a conGested thoroug flare.
With horse omnibuses. cabs and carts
moving slowly and stopping at every
crnss street the trafhc now goes by az a
mart pace There 10 more Of IL than
aver. hut il is composed mostly Of motor
buses. private automobiles and taxicabs
and even the first keep up pace Of about
ght miles an hour. The horse has al
most gone from that part OF London.
Then in some parUs OF the city you
So V see a sort Of steam truck. which has
ally a motor engine. drawing two or
.lr-s loaded vans. The trucks each
ra," from eight 20 sixteen tires. and IL
.ui that one % these tires contains
-..'suteen pounds OF crude rubber. The
r.n " automobile tires 10 not so high
s- W4s three years ago. owing not only
. rpmpetition hut tn more scientific
18th v of tire manufacturing. but IL 10
--.r~d that under present conditions
.t- nrice Of tire- In another three years
haN
. % - about ten years ago the founda-
.. 70 rubber manufacturing. which IL
3-,rn,p rubber. had no competitor.
.,- Ihoer grows Wild in Brazil and IL
ruai Wild rubber by the trade
-..tI-. ~ M de-n methods we're en-
vrd N growing or producing il
IHrnIEh the way the British Government
a. II Huding out what Its colonies can
.-. produce there has during these ten
."tr- been brought into the market from
pol. last another rubber known
nylon rubber. the first real CON-
"u'or the Brazilian product ever had.
The Island 81 Ceylon 10 far a. climate
concerned il said to he almost the same
- The rubber producing portion 81 Brazil
N,far hack a. Is7s the British Government
Sgan experimenting in Ceylon with
IRA allan rubber. seed. plants and trees
icing imported and put into the ground
N the island For years there seemed 20
80 no special results obtained aud no
-~aat interest was taken in the expert
mont until some time In the 'e0s. when
-"Ine twenty million tres were planted In
. "ylon and tho Malay Peninsula. These
cyan u show results in about 1897.
when a few hundred pounds Of rubber
Tom Ceylon was offered in tho markets
z London and New York
This excited some interest hut the
manufacturers Who experimented with Il
Included that u had no special value
that II did not attract any earnest
% fNhtI"i'. Bus ifissiIss 'iie. 80 Nsss rubber
80 actually sold. tho planters con-
-'rued putting IN trees a. fast as possible
20 r~sult was that in 1906 something like
~ TINS 81 rubber was produced and sokt
."ftably. Ever since then the quantity
- continued TO grow very rapidly
.unl i90S on this rubber excited 30 much
''en'Ion that companies we're formed.
18th native and English. When the finan-
OF ,risis ~ i007 came along these were
'ufy growing in number The Produc-
1 TO Vas increasing. but on ing 90 the state
nsnces much inquiry was made as
't2 cost 81 producing the rubber
Aen the Brazilian product had de.
NOD IN price from ti Is % IS cents and
Per-" Ieylon rubber had not won out in
tn Para rubber. The result Of this and
. Investigations showed that the Cey-
.'-e planters could deliver rubber in
p. don or in New York at n cost Of not
..~ shilling. or a quarter. a pound
When this was demonstrated CONT
a in rubber rpawakened and was
.''rIlished, and on the return Of the
'' 9" 81 rubber 10 above u q pound the
~v'In product kept pace with the 9raxil-
IN I,Os a boom In rubber was started,
10 the surprise Of the entire trade,
while there may not he an actual
r'age in crude rubber any year still
rpduCtion and the consumption are
- ."ariv the Same that lt IN q question
ZACH manufacturer can supply HIM
This naturally ~ a great factor in
30 INNING present prices. For a long
here was belief that speculation
'"uInd the market. but time has
u-trsrsd that this was not the case
'tt' the old law Of supply and de-
- Inc cause Of the prices OF to-day
/, tho ltrt five years the entire East
= .. '-'.l dey citing itself TO the formation
''"r companies. either buying out
..fai. 0ns - COMPANIES that were in
''.'Ip5 80 starting new companies for
e rs'rer. AZ the Dressnt time the
..''' IrOppsItiOn. 10 far a. CeyloD
Oh" Malay Peninsula are concerned.
.f.r'ai'v closed because there are
,.'v very few pOssibilities either 81
visiting plantations or finding