The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-26
FUND SECURED
TO FIGHT BIG
RUBBER TRUST
Americans Plan to Battle
British Monopoly That
Rules Industry
BY BRUCE CATION
NEA Service Writer

Akron. O.. June 26.-Half a billion
dollars for war chest to tight the
British rubber monopoly.
This, in all probability, will be the
answer 70 Americas tire and rubber
manufacturers to the sky-high rise
in crude rubber prices engineered by
the British growers.
1t will be accompanied by stringent
efforts to cut Americas rubber re
auirements down to the bare essen
tials.
This will be accomplished partly
by cutting down production, by stand
ardizing tire sizes and styles, and by
increasing the use of made over"
rubber.
The fight against the monopoly has
not yet taken definite form, but i'm
oortant developments are due any
line.
II it is made, as now seems GER
tain, it cannot bear much fruit for
years.
No Immediate Relief
For the plain fact of the matter is
that there is no immediate relief in
sight.
Here is the program for the fight.
as outlined by authorities here:
The American manufacturers will
invest approXimat ely S50O,0O0,O 900 in
their own rubber plantations, to be
located in the Dutch East Indies, free
of British domination, and with as
surances of friendly, helpful atti-
tude on the part of the Dutch gov
eminent.
Right now the Dutch plantations in
the east produce fair percentage of
Americas supply. But this percen-
tage is nowhere near large enough
to counteract the British monopoly
hold on the market.
Starting a rubber plantation is q
long and difficult proposition.
Ten years is the minimum time be
fore new trees can make fair yield
So even if the American investors
went to work today, the new sources
of supply would not be open for /;
long time.
But eventually the grip of The
British monopoly would be broken
And that is the goal of the rubbe1
men.
The Rubber Association of Amer
lea, to which most of the importan
a time divided into two factions.
Willing to Fight
One faction, in which Harvey Fire
stone was perhaps the most notabl
figure wanted war to the knife, wit
American rubber men boldly striking
out to establish a supply independ
ent of the British.
The other, backed by w. o. Ruth
erford. president Of the association
urged a Cancellation policy with tn
British. hoping that the British grow
ers might be induced to relax tn
Stevenson law and permit more rea
sonable prices.
The latter policy was tried mos
of this year.
Officials of the British Rubhe
Growers Association who promise
two years ago that the law would I
relaxed as soon as prices got mo
dinately high, have been deaf I
American pleas, however.
Consequently many manufacturer
are swinging to the Firestone tactic
Firestone, in conjunction with Hel
ry Ford, has been experimenting wit
rubber plantation in Florida r.
Gently.
But it is not expected that tt
solution of the problem will con
that way. And here's why:
In the far east, where most rubb,
plantations are located, owners ca
get coolie labor to work their fiel,
for wage of about two cents q
hour
In America no one could hope
do it for less than IS day.
And since the labor cost is near
As per cent of the cost of product,
raw rubber, it is easy to see that tn
just about lets the United States OF
But negotiations have been und
way with the Dutch. The Dutch ha
expressed their desire to aid if Anne
leans want to start plantations
their territory.
Hoover Urges Make Over"
Secretary of Commerce Herbe
Hoover is loud in his pleas that ma
ufacturers turn more and more
used rubber that has been ma
over.
A chemical process has been pc
fected whereby good rubber, near
as good as that fresh from the TIRE
can be made from used tires.
At present this method suppl
about 20 per cent of the rubber US
in this country.
Hoover believes it could supply
per cent, and the next few mont
undoubtedly will see the making ov
plants expanded.
Tire men are comforting with aut
motive engineers looking to stan
ardization of tire sizes and styl
This. they say, will save great DE-
of rubber.
But for the immediate future the
is little relief in sight
Americas answer will take time
and meanwhile the monopoly will
on collecting.