Evening star., 1925-07-20
RUBBER
Why 1t Is Not Produced in the
Philippines.
BY NORBERT LYONS,
Secretary of the Philippine Chamber OF
Commerce.

Secretary Of the Philippine Chamber OF
Commerce.
Secretary Hoover recently announc-
ed that British control over the rubber
industry In the Middle East will en-
able Great Britain to repay her war
debt to us out of the enhanced profits
thus accruing to her. This should
open the eyes of American business
men to the great opportunities for
growing rubber under our own flag
in the Philippine Islands.
When the Stevenson act restricting
rubber exports from the British cen
ters of production was enacted in
mediately rose. The British grower
of rubber benefited, while the Amer
lean consumer-who uses three-fourths
Of all the rubber raised in the world
was made to pay the bill, through
higher prices for tires and other rub
Der goods.
This was a situation that caused
Congress in 1923 to make a large
appropriation for the study of the
possibilities OF rubber production in
Latin-America and the Philippine ter
ritory. A commission of experts was
sent to the Philippines and reported
that In Mindanao and adjacent islands
some 100000 acres of the finest rub
Der land in the world lie uncultivated
and ready for utilization. The area
under rubber cultivation in the whole
world is slightly less than 100000
acres. If the available rubber land In
the Philippines were utilized, there
fore, it could grow all the rubber
needed by this country now and
probably for many years to come.
Puts Blame on Law.
Why, then, are no steps being
taken to produce rubber on this rich
portion of our national public domain
in the Philippine Territory and thus
free ourselves from foreign domina-
ton in this important industrial field?
Why do not American manufacturers
start plantations in Mindanao and
thus save the American public any
where between 100000, 900 and $780,
600, 900 a year--these figures repre-.
senting the estimated excess price of
rubber due TO the Stevenson act.
The answer is that under existing
laws enacted by Congress 1t is I'M
possible for any individual corporation
to lease or purchase a sufficiently
large tract OF land to permit Of COM
mercially profitable cultivation of
rubber. No corporation may buy or
lease more than $500 acres of public
land in the Philippines, and such an
area is insufficient for rubber cultiva-
ton except on a very limited scale.
Combinations of companies for the
purpose of controlling larger areas
than are permitted TO individual cor
porations are also forbidden by law.
Congress has the power to change
these laws. 1t may either pass
measure of its own permitting Ameri-
can concerns to acquire tracts large
enough to warrant the large scale cul-
tivation of rubber, or ii may give It's
consent to d similar law enacted by
the Philippine Legislature. Thus far,
neither of these bodies has made
move toward adopting such mea-
sure. The Philippine Legislature
meets in July, and Congress opens its
sessions in December. In view of the
soaring price of crude rubber, which
is approaching so cents a pound.
nearly three times the average price
of last year, the need for such legis-
latiye action becomes apparent.
Benefit to FiIipinos.
Not only would the American peo-
pie benefit to the extent of hundreds
of millions Of dollars a year through
the raising of rubber under the Amer
ican flag, but the Filipino people
would also benefit through the pos
session of a new major industry. The
labor required would have TO be large
ly Filipino, and many of the executive
posts in all probability would also be
held by Filipinos.
Large scale rubber development in
the islands would most likely encour-
age the growing of rubber on a
smaller scale by individual planters,
lust as II has done in the British and
Dutch rubber growing areas.
It Is not at all difficult to conceive
of a law which will adequately meet
the requirements of the American
rubber manufacturers and at the
same time satisfy the claims OF the
Filipino people, provided neither side
Is unreasonable in It's demands. The
land is there. the need is urgent and
all who might participate in the en-
terprise will reap benefits from 1t. 1t
is up to the Philippine Legislature or
CONGRESS to take the first steps in
establishing this great industry under
the American flag.
Every person who uses rubber tires
should be vitally interested in the pro-
posal of growing rubber under the
American flag in our Philippine terri.
tory. It's realization would mean to
him a big saving in dollars and cents.
And it is not only a perfectly feasible
but a perfectly logical and decidedly
practical proposition.
Copyright. 1929