The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-08-12

| other comparies producing in Mexico
J about an equal amount. To accomplish
| this an entirely new industry was es-
| tablished. Fifteen years ago the quay
ule shrub on the Mexican plains and
the lands on which it grew were Val
ueless. We expect in time to accom-
piish approximate results in other ccun-
/ tries. have no apology TO make Ior
my part (Which has been unimportanO
| in this work
I'm the success attained the tariff or
| the United States has played NO part
whatever. The price of crude rubber Is
| fixed in the markets of the world by
! the inexorable law of supply and de-
naand. It is governed by auction sales
at London and Antwerp. The great in
| crease in the price in recent years Is
owing to the enormous increased de-
mand for automobile, tires and for eiec-
| trical and other industrial uses, with no
| corresponding increase in the available
supply. The change in our tariff OF 5
per cent on 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.
'In 1902 the price of fine para was
10 cents a pound; in April, 1900, the
price had reached SO pound, the
present price being about $2.40 a
pound. If the price has been affected
at all by the product of the Intercon-
tinental Rubber company and kindred
rubber producing companies 1t has
been to impede the advance by fur
niShing 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 it en- the
dutiable list. If this important raw
material which completes with no do
mestic product should be placed on the
dutiable list the duty would clearly be
added to the cost of the rubber to the
manufacturer or consumer, and would
not affect the producer whose price
| would clearly be still controlled by the
market price of the world.
Trust Feature Denied.
"Of all the ridiculous statements
made by the Kansas senator, none is
quite SO ridiculous as that in which
| he states that the Intercontinental
/ Rubber absolutely controls the crude
ton of crude rubber in 1909 was about
IFS. 100000 pounds, of which the
| United States took about ninety-three
millions of pounds. The production
OF the Intercontinental Rubber COM
pany and its subordinate companies
was about 100000 of pounds or Jess
| than six per cent of the whole.
"As have already stated the Inter
continental Rubber company has never
had any relations with the other pro-
ducers, and has never controlled or
attempted to control or to influence
either the production or the price of
crude rubber. Any one who has ordf-
nary intelligence must understand how
futile such an attempt would be IL
made.
ITO say that the advance which
took place from month to month in
the price of crude rubber throughout
the world from 20 cents in 1902 to SO
in 1910, was owing to an unimportant
increase of from 80 to 35 per cent in
August, 1909, on importation affecting
less than 1 per cent in value of the
total product of rubber, displays a
depth of ignorance which has rarely.
been reached. The claim that this
same change of from 80 to IS per
cent enabled a party who never had
any interest whatever or any connec-
ton with any enc engaged in the man
ufacture of rubber. to advance the
price of all rubber products and to
make enormous profits out of such
advances discloses a. marvellous apti-
tude for fiction in. narrative.
Where Dividends Came From.
''As to the dividends paid by the In
tercontinental Rubber company, on its
preferred stock in the early months
of the present year will say that these
were deferred payments of cumula-
of the company had heretofore been
used in the development of the bust
ness. Not one mill of the earnings
from which dividends were paid could
be attributed as 1 have already stated
to the tariff of the United States or to
any change in the tariff rates. The
change in the tariff on manufactures
of rubber not otherwise provided for
from 80 to 35 per cent in paragraph
463 was not made or recommended for
protective purposes or at the instance
or for the benefit of any domestic
manufacturer. 1t was made upon the
recommendation of the treasury ex-
perts. solely for administrative pur-
poses. The fact is that at the time
the tariff act was passed the Ameri-
can manufacturers for most classes of
goods had undisputed control of the
American market and in number OF
cases the domestic producer was able
to export some portion of his product
to other countries. The statistics sub
mitted by the finance committee to the
senate in April, 1903, showed value
of manufactured products in the coun-
try in 1904 Of $148, 100000, and ex-
ports in 1907 to the value of over &c.
0o0, 900, while the imports OF the
classes referred to have never reached
in value one and one-half per cent of
the domestic production.
"There has been in recent years a
considerable falling off in the value of
the imports of rubber manufactures,
owing largely to the fact that the
American manufacturers were gradu-
ally taking possession of the American
market for automobile tires and to
the fact that two of the most, impor-
tant makers of tires-Michelin and the
Continental company = transferred
their plants for the supply of their
American market to the United States.
when the tariff bill reached the
finance committee it was stated to US
by the treasury experts who had been
assigned by the president to assist the
committee in the preparation of
amendments that it was extremely de-
sirable that the rates of duty imposed
by paragraphs 140, 427, ass and 465
of the house bill on the miscellaneous
manufactures of various material
should be uniform with the rates i'm
posed on similar manufactures in 9TH
er parts of the bill.
ssThe statements of fact that led to
| the conclusion of the finance commit
tee and the conference committee to
| recommend an increase of duty on the