Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-10-03
FAR EAST RUBBER
BEST FOR CASINOS
War in Europe Makes Situation
Uncertain; Brazil Output
Is Not So Good


general sales manager)
1t is quite evident that no American
industry realized the possible serious
effects of the European war so quickly ,
and emphatically as the rubber manu-
lecturers. Following the declaration
OF war. manufacturers saw little pros
pect of receiving the raw material in
any quantity but the rubber then afloat
arrived safely in New York and this
country unexpectedly received rubber
that would have been used in Euro
pean markets. But this only partially
relieved conditions. 1t is equally true
that the situation now is filed, more
or less, with the same uncertainties
as ruled at that time.
1t is the purpose OF this article to
show the difficulties in obtaining this
supply of raw material
In the building of tires, crude rub
Der furnishes the foundation and
crude rubber comes to the United
States from distant lands. being car
ried mainly in vessels owned by ma
tons now at war.
There are two principal sources of
supply of the better qualities of crude
rubber that is used in the manufac-
ture of automobile tires and other
high grade rubber goods; one is from
South America, where the rubber trees
grow wild. This is known at Para
rubber. 1t is gathered along the ANA
Zon river and the best quality of this
rubber is classified as Up-River Para.
1t is the best quality on the market
and the most expensive.
the other source of supply of the
better grades of crude rubber is the
Far East, viz. India, Ceylon, Malay
States, Sumatra and Java. From
these countries, we are supplied with
what is known as plantation or culti-
waited rubber. This rubber is gener-
ally shipped via steamship lines run
ming from Colombo and Singapore to
London.
Africa, Central America and Mex
leo are rubber producing countries but
the quality of rubber grown in these
countries is not as good as South
American and Far East rubber.
Comparatively speaking, Brazil is
not so far away from the United
States, but it must be kept in mind
that this rubber is carried in vessels
most of which are controlled by coun-
tries now involved in the European
trouble. and also that a majority of
these shipments have been cleared
through London; in fact only a small
portion of crude rubber has been COM
ing direct to the United States from
the producing countries.
The worlds supply of crude rub
ber. or rather the amount in stock at
the rubber factories, New York and
London, was at a remarkably low ebb
at the beginning of the war, and it
can be seen readily that with hostili-
ties continuing it is a question if the
supply can be increased materially.
The average rubber manufacturer
places contracts for future delivery
and as a rule does not carry over 80
TO 120 days supply. He has rubber
coming in TO him in weekly or monthly
shipments. You can readily under
stand with the present condition of
affairs the uncertainties of the rubber
manufacturer being able to get the
rubber that he has on contract. The
price of crude rubber for available
stock that could be delivered promptly
increased Immediately at the opening
of the war so to 100 per cent. While
rubber is quoted lower at the present
time than it was a few days after the
opening of hostilities, at the same time
it is considerably higher than it was
previous to August l. The prices be-
ing quoted now on rubber are not for
immediate delivery and there is still
a question of being able to get this
rubber that is offered for sale at any
spe&ified time.
The rubber producing countries of
the Far East furnish the greater por-
ton of the rubber which is used in
y
will show you what a surprising dis
tance this rubber has to travel before
it reaches the American manufacturer.
Follow the course of a vessel from CO.
| lombo or Singapore, 5000 to 10000
miles through the Indian Ocean, Red
Sea, Suez Canal, Mediterranean Sea,
Gibraltar to England and from there
across the Atlantic to New York, $500
miles more, and see what shipment
from the Far East means in times
of peace-then add to this the dan
gers and difficulties in time of war.
With hostile battleships lowering
about and with deadly mines under
the water, even distance pales into in
significance.
If the Far East sdpply should be
shut off, the tier manufacturers must
look to South America. Brazil fur
nishes approximately 40 per cent. of
the supply of rubber but the condi-
tions prevailing IN the Far East are
practically duplicated in South Amer
lea. Brazilian rubber, known as Para,
has been almost entirely carried in
foreign vessels to London. a glance
at the map will show the distance rub
ber travels. and give a faint idea of
the difficulties in route from the up
per reaches of the Amazon to New
York City, even granting that this
plan may be followed more extensively
in the future.
Owing to the slump in rubber prices
some time ago, Brazilian concerns per-
mitted their supply to diminish until
there is practically nothing in reserve.
The rainy season is now prevailing,
and little in the way of bringing in a
new supply will be done until October,
so it can be said that the immediate
outlook in South America is not as
satisfactory as might be.
One result of the situation may be
the readjustment of the method of
handling the crude rubber supply, but
this cannot be done in a day or a
/ month. About one-half of the supply
is used in the United States and the
American manufacturer is anxious to
have shipments come direct and the
( financing done here. 1t has been sug-
/ gested that the supply from the Far
East came across the Pacific to San
Francisco or through the Panama
Canal to New York. The lack of
American Merchant Marine may soon
| be corrected, and there would appar-
emily be no good reason then why
the financing, or at least that affect
| ing the United States, cannot be done
| in New York as well as London.
But withal there is a note of en-
couragement in London. Our presi-
dent, T. L. Robinson, who is now in