Perth Amboy evening news., 1923-01-27

WASHINGTON, Jan. "A. - The
American rubber industry at last has
determined to break away from
British control and produce its own
raw material. Henry Ford, who
probably is the worlds largest single
consumer of rubber tires, and Har-
vey 8. Firestone, of the largest
tire manufacturers, are joining
forces to exploit the rubber resources
of the Philippine Islands and South
America.
The United States consumes more
rubber than the rest of the world
put together. The phenomenal
| growth of the automobile industry in
this country has increased rubber
| consumption for tires to tremendous
proportions. Rubber is a product of
the tropics. The best rubber, in fact
| nearly all of it, comes from British
| controlled possessions in the Orient.
| The Federated Malay states, Suma-
| ira and Ceylon are the principal pro-
| ducers.
Last November the British placed
a graduated tax on rubber exports
| from these colonies. The result is
| that the cost of rubber in the United
| States is doubled. 1t is estimated
that the British tax has added $780,
000, 900 to the cost of rubber to
American consumers.
The American rubber industry fill
ed a protest with Great Britain
against tax but to no avail. Great
Britain had protested against increas-
ed American tariff and no attention
was paid to that protest. 1t was
! scarcely to be expected that Great
Britain would heed our protest
against the rubber tax.
Realizing this, MI. Ford and Mr.
Firestone finally decided that the
only Of emancipating the
American rubber consumer from the
~exigencies of British politics was to
control our own sources Of supply.
Mr.. Ford has been developing a
| policy of Industrial ,E~elf-reliance for
| some years. He has purchased iron
| ore mines, has erected a steel mill,
has acquired coal mines and a rail-
| road. The next inevitable step was
that he should interest himself in
| the control OF raw material for his
rubber TIRES.
The Philippine Islands and the
Amazon River Basin in South Amer
lea have all the natural advantages
for producing rs good rubber as the
Dutch East Indies or Ceylon. They
have never been intensively develop
ed because production costs were too
high TO enable Philippine and South
American rubber successfully to COM
pete with the Eastern product. The
imposition of the British tax removes
this difficulty. The tax automatical-
ly adds 100 per cent to the foreign
cost of the rubber from British
sources.
Congress Asked to Help
The big island of Mindanao is the
principal source of rubber in the
Philippines and Congress is being
asked to request Phil pine territorial
government to liberalize its land
laws to aid the American Industrial
lists In the exploitation of the island
rubber. The Amazon Basin drains
the countries of Brazil, Venezuela,
Columbia, Ecuador. Peru, and Bo-
| nvia. All of these countries are ca
pable of producing q high grade of
rubber and. through diplomatic
channels, the American Govern
ment is expected to bespeak the CO.
operation of the South American
Governments in aid of the great rub
Der producing enterprise projected
by Mr.. Ford and Mr.. Firestone.
It will add millions to the wealth
Of both the Philippines and the
South American countries. The
great plantations which will be sci
out will afford employment tc
thousands of native workers and n
the course of the development rail
roads will be built and steamship
lines established. Every country II
which the Americans begin their en-
terprise will benefit largely.
There are serious obstacles u
overcome. The climate of these re-
gions Is %forbidding to the white
man. The first step will be tn
sending in Of sanitation engineers Z
improve conditions So that fever viii
not attack the workmen. 1t is Ike
" that the Amazon River will hav'
to be improved In places. SOM
dredging may be required and thu
removal of submerged logs. Spul
lines of railroads doubtless will b,
constructed.
The present rubber industry o
South America and the Philippines Il
chiefly confined to wild forest rub
Der. There have been some expert
mental plantations set out but moth
ing on as large a scale as that nov
contemplated. The natives are sen
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