Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-12
RUBBER BUSINESS
NOW GOING STRONG
Little Prospect of Shortage
Due to Restrictions Be-
fore Year Ends.
BY j. c. ROYLE.

Sptttd1 DlSpaLcN TO Inc star.
NEW YORK, August 12.-Reports
of increa sed business continue to
come from the Akron automobile tire
plants. Demand has quickened per-
ceptibly since the recent price reduc-
ton. and some of the factories now
are working on a 24.hour day sched-
ule. Factory operations are at the
high rate of the year, and production
in the Akron district is conservatively
estimated at 125, 900 castings and 1885,
600 tubes daily.
The smaller producers, such as
General, Sieberling and Mohawk.
have increased output on an even
greater degree than some Of their
larger competitors, but Goodyear,
Goodrich, Firestone and Miller are all
working at a high rate.
The drop in demand for original
equipment did not hit the smaller
concerns so hard and was more than
compensated for in the case of all
by replacement orders. Now introduc-
ton of new models has spurred the
automobile trade. and motor car pro-
duction is climbing. This is resulting
in larger original equipment ship
ments.
w. F. Pfeiffer. vice president of the
Miller Rubber Co.. says that so per
cent of the 1926 tire purchases will
be made in the last five months Of
the year.
Dealers stocks are 25 per cent
lower today than they were a year
ago. he added. Greatest demand is
for low-pressure castings. Production
of balloon tires in the first half of
1926 was more than so per cent
greater than for the corresponding
period Of last year. A 20 per cent
decrease was noted in demand for
high-pressure castings"
Notwithstanding the facts cited
above, rubber consumers are already
beginning to "view with alarm" the
crude rubber situation. 1t is assured
that there will be no restriction on
shipments from the Straits Settle
ments before November l. In the
meantime crude rubber stocks in Lon
don are estimated to have risen to
$4,000 tons, which compares with
5000 tons year ago. Total ship
ments Of British rubber so far this
year have come close to 100000 tons
and it is expected the world output
for the year will reach 100000 tons,
or gain of one-siXth over last year.
Restriction Is Feared
The price Of rubber in world mar
kets is now below the equivalent Of
| shilling and 9 pence. or about AZ
cents. If it averages below that mark
until November l the amount which
can be shipped from British Far East
plantations will be restricted 20 per
cent. But in the meantime shipments
are being made regularly and stocks
are piling up. Any restriction could
not possibly be felt prior to Decem
Der Is.
Consequently 1t would seem that no
shortage of crude rubber would face
the tire manufactured at least until
1927. Rubber dealers and importers
say that If the tire men fear short
age and a consequent increase in
price, it is the logical thing for them
to provide for their future require
ments by buying rubber futures now
as low at $3.50 cents a pound for Sep
TENDER delivery and $3.50 cents for
January. This, however, is one thing
which few of the manufacturers in
the past could be induced to do.
Rubber consumers, while they
would undoubtedly be glad to see rub
Der production flourish in the Philip
pine Islands, are not deeply interested
in the disputes on the subject now
current in the islands. II would take
seven years for such production to
have any large effect on the supply
situation. and none can foretell what
may occur in the tire industry seven
years hence.