Evening star., 1925-05-18
NEW RULE SOUGHT
IN RUBBER TRADE
American and British Tire
Makers Demand Cut in
Raw Material Costs.
BY JOHN {. ROYLE.
Special Dispatch to The star.

special Dispatch TO Inc star.
NEW YORK, May tS.-American
md British tire manufacturers, ordi-
uariIy bitter trade rivals, have joined
hands temporarily. Both are de-
mandinG that the restrictions eXer-
.iSed by Great Britain on the export
If crude rubber from the Straits
settlements be abolished
Some American consumers have
bee clamoring for American Gov.
rrnment departments to make repre-
Sentation on this subject to the Brit
.sh foreign office. The English manu-
facturers now are demanding similar
action by their own colonial office.
Relief from either source is not eX-
Dected by those in closest touch with
he industry.
Prices Up; Supplies Low.
The price of rubber is up and
stocks of crude are low. Gables to-
lay from one Of the best informed
American dealers now in London. in
jicate that the question undoubtedly
viii be taken up i'll the House of
Commons. They also indicate that a
10 per cent increase in the amount
of rubber permitted to be shipped
from Singapore may be made i'm
mediately instead of waiting for the
expiration of the next quarterly
period, when normally it would be
come effective under the Stevenson
plan.
This dealer states that there exists
in England a tremendous short in
lereSt i'll rubber. Shorts are unable
to- cover, except at high prices, in
view of the short stocks available
English tire makers already have
raised their prices 10 to Is per cent.
y 0I10lliIp "a
present prices eventually will add
several pounds" to the final cost of
every motor car. British dealers say.
in conclusion, that the Stevenson
plan has not been effective. since il
has not prevented violent price huc-
Jua tons.
Producers Defend Plan.
Producers take widely different
view. They say that the plan has
done exactly what il was designed to
do that is, restricted production to d
point where products could be sold at
a profit. They attribute the situation
10 the fact that manufacturers did
not contract in advance for their re-
quirements when prices were low.
They deny that the cost of rubber
can make a difference of SO or more
IN the cost Of automobiles, since each
tire contains but little more than
three pounds of crude.
The plantations in the Straits set
Elements are prepared to increase pro.
dIctIon as fast as permitted. Thou
sands of trees. which require seven
years TO come into bearing. are ready
10 ,be tapped. but the planters are not
anxious to tap them so fast as to
flood the market and break the price,
which. they say. might occur if re
StrictiOnS were removed.
Market Made In United States.
America really makes the rubber
market since the larger part of the
output is consumed here. Automobile
production is still on the increase.
Those in favor of restriction Of pro-
duction say the real troubles with
some American manufacturers. who
oppose the plan, is that they made con
tracts TO supply certain automobile
factories with tires for original equip
ment over Il period OF years at prices
based or low crude rubber. At presen mt.
therefore. they cannot pass on the in
creased cost to their customers