The Birmingham age-herald., 1914-10-23

the expectations of
 his associates were realized It m--.. possible convenient transportation
 the navigable tributaries of the A,
 zon for the rubber plantations wh
 stretched southerly from its line. Two Dollars a Pound At the time Mir. Farquhar took the construction of this railroad. rubber from the plantations in its vicinity was commanding s2 a pound There was shipment in a single year or ovo tons, every pound of which was
 marketed at about these figures. The interest of English capital was stimulated by the reports of the great profit which the rubber from these plantations brought to investors. A craze which resembled in some of its features the traditional tulip craze, or the settlements occasioned by the dis covery or precious metals in South Africa, dominated many persons in Great Britain. Specluation in rubber shares was violent. The excitement led to experiments with view to deter mining whether or not it would be possible to utilize the soil in the vicin- ity of the Malay straits which had been tested and found by the experts espe- cially adapted to the cultivation of rub Der. Immediately investment in large amounts in rubber plantations in the vicinity of the Malay straits was made two the proof was good that these plantations would fioursh rapidly ana could be cultivated at small cost, while transportation charges would also pc so much less than those exacted TOT bringing rubber from the South Ameri- can plantations to the market as 10 furnish a handsome margin Of pront l., ri icnn with the market Dflte of South American rubber.
 All that was expected of the Malay straits plantations was realized. The demonstration was made that instead of there being hereafter small sup ply of rubber each year in proportion to the worlds demand for 1t, the sup ply would be ample and could be fn- creased from time to time so as to meet the worlds demands, however great they might be.
 About the time the Madeira railroad was completed, the Malay straits plantations were producing rubber at low cost, in great amounts and with the additional ad- vantage of speedy transportation from the plantations to the markets.
 The market price of rubber fell. The speculative excitement in Great Britain was ended. A few persons made great deal of money. Many persons made little or none. Some met with losses. The market price was rapidly reduced until shortly before the outbreak of the conti- mental war in Europe 1t was as low as 50 cents a pound. Moreover, the manu- lecturers of equipments for motor cars and the telephone companies, which are large users of rubber, were gratified when they learned that the supply of cultivated rubber was to be fully equal to the de- mand, thereby making certain reason able cost for crude rubber.
 The South Americans Plantations
 This competition created by the develop ment of rubber plantations adjoining the Malay straits and the ability of those in- terested in the business to market the rubber at 50 cents a pound furnishes one of the best examples of what competition can accomplish. Those who use rubber receive benefit from the Malay straits de- velopment and the public is therefore also benefited. Capital which has been invested in the plantations of the Malay straits Is receiving satisfactory profits. 1t is known that these plan tations can be extended as rapidly as there are good commercial reasons for do- ing so.
 But on the other hand the little Ma deira railroad has so greatly suffered by this competition that at last it has been