Evening star., 1923-02-13
OF RUBBER
HOLD VERY FIRM
Producers Making Effort IL
Prevent Any Sharp Ad-
vances in Market.
BY j. c. ROYLE.
Special Dispatch to The Star.

Special Dispatch TO The Star.
NEW YORK, February l3-Th
British producers of crude rubber arr
not going to kill the goose that lay
the golden egg, represented in thei
case by the tire producers of th
United States. However. they are de
termined that the returns from tn,
goose shall be as large and regula
as possible That was the concensui
or opinion today by men in closes
touch with the crude rubber market,
of the world
transactions in rubber here hav,
slackened pace materially since tn,
recent fiurried advance to above g.
cents pound. Tire manufacturer
have pretty well covered their re.
quirements through February. Marct
ana April according to dealers. Tha,
trend. Prices have slackened of
since II ceased. Most experts expec'
the market to be generally quiet fo!
some time. although with little reces
sion from present price levels
Shipments Cannot Increase Now.
Output of crude rubber from nov
until April 80 from the straits settle.
| ments. the Malay peninsula and tho
far east necessarily must remain a
the same level s for the last three
months, according to the laws re.
stricting shipments imposed by thu
British colonial government Thos,
! regulations provide that when tn,
/ price of crude rubber has averaged
shilling pence for the thre;
months period (about 33 cents), out
put automatically may be increased
per cent. The price for the las
three months did not attain tha
average.
Producers dealers and consumers
all stated today they did not wish Il
see the price rise too extensively oil
too quickly. The producer recognize,
that the American tire manufacturer
are his best customers and his MAR
source of revenue. He has no wish
to see their operations curtailed
Moreover. the more rubber the pro
ducer is allowed to produce and whict
he can market at fair price tbs
cheaper he can produce il, and hi
, would prefer to obtain slightly lower
figures for greater tonnage thar
higher prices for a more restricted
output.
Dealers Want Low Prices.
Dealers also are opposed 10 high
prices. although in the normal treno
of markets, dealers are nearly alway:
inclined to the long" side. In theH
case. however. they must finance thu
Importation of the product: The!
bring il into this country. buying from
the producer and hold it for sale Il
the manufacturer. Their operation:
are limited to strictly by amount OF
money they are able to borrow from
the banks TO finance these transac
tions. If the price of the product Is
abnormaIly high they can handle faI
less amount with their credit facili
ties than if the price is low.
Tire manufacturers protest tha
high prices for rubber will check pro
duction of tires and result in a tire
mendouS cost to American car users
Dealers and producers. on the other
! hand, declare that in the ordinary ForC
size tire there is less than five pounds
| of rubber, and that the recent increases
of from 10 to IL per cent in tire prices
more than covered the increase in tbs
price of the rubber used.
Narrow Margin Contracts.
Dalers. say however. that the DIFF
ficulty of the tire manufacturer lies
| not so much in production OF tires a
a profit under the new prices as in
supplying tires to manufarturers oil
| contracts. made on an extremely mar
row margin of profit long before the
| increase i'll rubber and fabric prices
took place.
! the extent of the production schedules.
| of the automobile manufacturers. es.
timating the number of tires for re
placements throughout the country
and with output strictly regulated by
law and only to be enlarged by price
| advances or Legislative enactment,
are thoroughly convinced they do not
have to kill the goose to get an ade-
uuate supply of golden eggs