Evening star., 1925-06-16
RUBBERCR|S|S0N
PUT ON AMERICANS
British Authority Says Deal
ers Could Have Saved Big
Sums by Future Orders.
BY J. c. ROYLE.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK, June 16-The British
rubber growers and dealers are per-
fectly willing to have American manu-
facturers continue the course they
have followed heretofore, buying
only for immediate consumption.
They are also thoroughly willing for
them to attempt to encourage pro-
duction by Dutch growers to the
exclusion of the British and to have
the rubber manufacturers of America
devote whatever sum they deem ade-
quate to that end. Such policies
would leave rubber prices high. the
British growers assert, according to
Fred B. Peterson, prominent dealer
and importer who has just returned
from London
American Dealers Blamed.
The British rubber men feel that
the American manufacturers have
only themselves TO blame for their
present situation" Mr.. Peterson said.
They did not take advantage of the
provisions of the Stevenson plan
which would have worked for their
benefit: but proceeded on the assump-
ton that something would transpire
winch would make the plan lneHec-
tive and break prices.
They bought from hand TO mouth
although they could have secured rub
ber for future delivery well under the
spot price had they been willing to
do so. This has reduced the supplies
. of spot rubber to a point where the
stocks in London now are around
$500 tons as compared with $4,000
tons a year ago. They are scrambling
for this small amount 10 fill their
immediate needs, although they can
buy for future delivery later this year
at prices we'll under the spot market. =
Rubber Famine Secuted.
Mr.. Peterson added that next year S
rubber can now be bought for around
A. cents pound, although spot quota
tions are lowering around 10 cents.
He declared there was no possibility
of famine in rubber and said this
was shown by the willingness of grow
ers 10 contract for future supplies.
But the Dutch growers are not go
ing to bleed their trees for the sake
turers." he continued. They are in
the business of producing and selling
rubber and are not anxious to take
such action as will tend to lower
prices for their own product. Then,
too. a very large percentage of the
plantations in Dutch territory are
controlled by British capital For ex-
$1,000 acres of plantations. A consid-
cradle portion of the output owned by
Dutch capital is controlled by British
dealers who have contracted for it in
advance.
IF the American manufacturers in
tended to so into the business OF plant
ing rubber themselves, they could
have secured plantations for a song
when rubber was down. but the cost
now is likely to be in direct proper
tion TO the advance in prices and
profits TO the growers.
Use of Old Rubber Limited.
The use of reclaimed rubber, Mr..
Peterson Indicated would become
widespread in view of present prices,
but he showed that this would not
suffice TO fill the demand for new crude
supplies. In the manufacture of hard
rubber products much reclaimed rub
ber can be used. but in making tires
only a certain percentage of salvaged
product can be utilized. This applies
also TO the use of guayule rubber, pro-
duced from d shrub which grows in
the high attitudes of the northern part
of Mexico. Guayule can be produced
easily and cheaply, since the process
involves little more than the macera-
tiop of the shrub and coagulation of
the rubber under water, but the prod
uct is soft and sticky and suitable
only for special purposes.