Evening star., 1924-03-15
Buying. VERY SLOW
M''RUBBER MARKET
Balloon Tires Make Dealers
Afraid of Heavy Stocks in
New or Old Styles.
BY J. C.. ROfLE.

special DlSpatch 10 Inc Star.
NEW YORK, March 15.-Iypicai ot
the hand-to-mouth buying poiicy So
prevalent today in American DUST
ness is the situation in the market
for crude rubber. Consumption eA-
ceeds production and stocks are ad-
1nittedly loAer than they were at TINS
, time last year. both9here and In Lon
don, yet rubber is selling in THIS
market at about II cents a peaho
less than it was on this date in
1923.
Since crude rubber reached it's
peak of SO cents a pound on January
"a. 1923, il has declined steadily TO
its present price of 22A, its lowest
in considerably more than a year. 1t
has dropped nearly cents, SINCE
March /, previous to which date IL
had managed to keep above the 20
cent level through which it had
broken only once in more than
year Weakness of the LONDON
market, rather than lack of demand
from American consumers, rs re-
sponsible for the recent snoasm u1op
according to Fred 'B. PETERSON d
large New York broker.
Dem and Is Moderate.
d
srot at present for attractive prices,
but consumers seem unwilling to
commit themselves TO future pur-
chases." said Mr.. Peterson today.
s'They are buying rubber as they need
It, letting the future take care o.
itself, although they must know that
if the present consumption con-
tinues they will shortly have to pay
higher prices for rubber
Dealers here profess themselves
rather at loss to understand the
market With production at British
plants in the far east restricted to
so per cent of normal, world con-
sumption of crude rubber now is said
to, exceed production. Some dealers
see in present low prices an enort
on the part of British producers to
force Dutch producers to enter into
the agreement to restrict prouuction'
:. which they have refused to do up
! TO this time. The latter control about
one-third OF the world production,
under the present restriction.
With quotations for crude rubber
declining steadily, these Dutch pro-
ducers have been able 10. reap little
advantage from maintaining produc-
tion Of their plantations at capacity
while production on British planta
tionS is being restricted.
Tire Men Best Consumers.
Manufacturers of. automobile tires
are the principal consumers of crude
rubber and conditions in their in
dustry have not hcen satisfactory in
spite of the increasing popularity OF
the motor car. Competition has been
keen and increasing costs have more
than offset any saving through de,
clining prices Of the two principal
materials used in tire making-crude
rubber and cotton.
Up to this time they have been
unable to raise their prices material
ly and, while they are continuing to
operate on their present close mar
gin, they apparently intend to buy
materials only as they need them.
The statenent of the United states
Rubber Company for 1928. showing
net income approximately 100000
less than the previous year. offers an
illustration. The sales of the busi-
ness of the company as whole in
creased 1885 per cent, but the in
crease was in commodities other than
tires, which constitute less than one
third of the company's business. The
decrease in net income was attributed
to unsatisfactory conditions in the
tire trade.
Market Very Uncertain.
Dealers in crude rubber Took for
little immediate improvement in de-
mand through the introduction of
balloon tires for automobiles They
are rather apprehensiVe that it may
prove hurtful temporarily. since re-
tail tire dealers are uncertain Wheth
er consumers will demand balloon
tires this spring and summer or will
+ stick to- old-StYle tires until the bal
loon and sanitation type have been
thoroughly tried out With this un-
certainty in the minds of retailers,
they say, it is unlikely that they
will buXzIarge stocks of any kind
of tires. even if they think the price
is likely to go up.
Stocks of crude rubber in the hands
of Leading footW manufacturers s
are either normal or less than normal
according,6to Il leading Boston manu-
factarer. ..
While we always require a guam
loaded and have not been, owing to
the steadily falling tendency of the
market" he said.
O.. = Footwear Stocks Low.
Stocks of finished rubber footwear
said to be low. While there has been
comparatively little snow in New
Englahd this winter, d severe winter
in the middle west has helped the
footwear business and, taken for the
country as wohie, the output Is as
good or better than recent years.
Wholesalers of footwear are fairly
tically out of stock, it is said. Whole
salers bought fairly heavily in New
England for this season.
Branches of New England rubber
manufacturers are carrying only Suf
ficient crude rubber for Immediate re-
quirementS.