Evening star., 1925-08-16
CAR OWNER BEARS BRUNT
OF HIGH PRICE OF RUBBER
Motorists, Tired of Being Pawns in Situa-
ton, Start Practicing Economy.
Britain Losing Its Market.

World production at present is
about holding its own against world
consumption of rubber, of which
America takes more than rs per cent.
Consumption of crude rubber is re
ported to be increasing at the rate of
80 900 tons annually, and at this rate
the Rubber Association of America
estimates that by 1928 consumption
will have passed production. Neither
rubber companies nor Wall Street,
however, appear to be greatly con
cerned over the situation, and the car
owner must need do little figuring
for himself.
He thus reaches the conclusion
that the british restrictions cannot
remain indefinitely for Britain is
losing its place in the sun as a rub
Der producer. just as Brazil was doing
l6 years ago. In 1920 Britain pro
duced "a per cent of the worlds total
of plantation rubber. In 1924 this
percentage had dropped to SO. 1t
cannot go higher unless France and
Holland cease competing. This is
very unlikely. for Dutch growers,
whose production was not bought up
by British interests. are being urged
to increase production in Holland $
East Indian possessions and. while
it takes six or seven years for a. rub
ber tree TO come into bearing, the
British may be expected to look ahead
and read the handwriting on the wall.
Britain's Place Self-Infiicted.
In other words. Britain's smaller
place in the rubber world is self-in-
fiicted, and it is not likely that the
British government will permit such
restrictions to extend beyond such a
period as is necessary to stabilize the
-
sary to assure British colonial grow
ers a fair profit.
In view of the unprecedented de
mand for rubber, particularly in
America. the general opinion is that
the Stabilization demands have been
met, though the British government
is doubtlessly justified in announcing
that it will remove restrictions as it
sees TT and not as the "speculator-
deceived public will have it.
One of the interesting features in
connection with the situation, from
the motorists s angle. is the possibility
of favorable competition in the tire
market. In 1921 there were $50 tire
builders. as against less than 100 to-
day. The newcomers sprang up as a
result, of the shipping facilities. fol
| lowing the war, and the slump in
crude rubber. The big tire manufaC-
! higher prices.
With the big tire companies con
sidered as good investments and the
stocks in demand in Wall Street, many
interested in the situation are wonder
! ing whether the smaller companies
will not again figure and. benefitting
/ by crude rubber market conditions
which may develop at any time. start
price cutting.
Clearly the situation is too compli-
Gated for the car owner to proceed on
any assumption other than to try to
get every possible mile out of his
tires. to provide against the possi-
bility of further increase in tire
prices and to discount much that he
hears. In 1905 many Britons be
I lieved that the production of wild
rubber was adequate for the world S
needs. And then came the American
automobile,
Regardless of how the tide turns.
or what the future brings by way of
surprises, the car owner stands TO
gain if he buys the best tires, under
stands the principles involved in the
balloon type and then does everything
in his power to make each tire give
/ maximum mileage.
downright 1925