The New York herald., 1921-01-03
RUBBER INDUSTRY
MOVEMENTS MIXED
Prices and Volume Of Business
During Last Year Irregu-
lar, Says S. p. Colt.
VALUES NOW DEPRESSED
Predicts Trade VIII Advance
Gradually to Healthy and
Satisfactory State.

In perhaps no other line OF industry
were movements of prices and volume OF
business more mixed in 1920 than in
the rubber industry. For the first half
of the year imitation In progress in the
industry since the signing of the armis-
tice was at it's very peak. Then came
the slump in prices and orders and the
recession was far more rapid than the
advance had been. AS a result crude
rubber, cotton fabrics and other supplies
are selling for less than half what they
were selling for six months ago and in
many instances below their production
costs.
Col. Samuel P Colt, chairman of the
United States Rubber Corporation, m
a review of the rubber industry for the
year declares that 1920 has been q most
eventful one in that business. He adds,
however. that the rubber business, in
His opinion, VIII reach gradually a
healthy plane, which will be satisfactory
to both producer and consumer
"The curtailment of manufacturing in
the United States during the last six
months of 1920" he says, together with
the fact that Central Europe and Russia
are still in no position to absorb any
large quantities of crude rubber, has
produced a surplus of this commodity
which has resulted in abnormally low
prices. Every grade of rubber is to-day
selling at figures we'll under the cost of
production. Should prices continue be-
low the cost Of production for any
length OF time, It will necessarily ma
terially decrease the worlds production
of crude rubber, and, what will ulti
mately have an even greater effect, it
will almost stop new planting. The
ri nF do (frct In
has ranged from 55 cents high to 16 1-2
cents low, the latter being the present
price.
I'm the footwear fields. due to the
unprecedented war demands, as we'll as
the extreme weather conditions of last
year, the capacity of the industry has
been absorbed in 1920 without undue
accumulations of stocks, and it is be-
lieved that with even moderately favor
able weather conditions the volume Of
business in 1921 will be at least normal.
'"The demand for mechanical rubber
goods was excessive during the first
nine months of the year. but the efforts
on the part OF the industry to reduce in
ventories has caused slackening Of
that particular branch of the rubber
business during the last three months,
which condition will probably continue
during the early months of 1921. but
it is confidently expected that during
the year there VIII be considerable de-
mand caused by the liquidation that has
been going on Of visible stocks.
automobile manufacturers especially
felt the curtailment and there was an
overproduction of pneumatic tires which,
with the necessity for reducing dealers
and manufacturers stocks, has demor-
allied the trade, but not, / think, to the
extent generally supposed. Those com
panies, however, whose principal prod
uct is tires, have suffered most. We al
ready see some Improvement in the tire
| trade Those who take n despondent
view of the tire business for 1921. l feel,
! fail to realize the large proportion OF
automobiles that are used for business
purposes and the relatively small num-
ber for pleasure. To meet hard times
one may wear his old clothes, but he
cannot run his automobile OF auto truck