The Washington times., 1926-07-21

price at 20 cents per pound.
One Of the arguments for the
adoption of this act by the pro.
meters Of. the scheme was to stabil.
ize the price Of rubber between Is
and SOC, per pound, but instead Of
fulfilling this function, II not only
increased the price beyond All rea.
sonable limits, but also through Ses
suIting wide Quotations made b
very unstable, speculative and haz.
ardoua condition for the rubber
manufacturers.
Rubber was selling around lie
per pound when the Stevenson TO-
strictiOn act became effective. The
act allowed so per cent OF normal
production to be exported and called
for quarterly reyisions according to
the price Of rubber. That II, ~
the price of rubber felI below an
average Of Csc per pound for any
quarter an additional per cent
restriction would be placed. and Il
the price Of rubber for any quarter
averaged above 30 cents an addition.
al per cent would be released. IA
this way. It was claimed. the price
OF rubber would be stabilized be-
tween rs ana SOC per pound.
Price Advanced
Immediately upon the adoption
Of the restriction act the price oe
rubber advanced. This first quar-
ter's average was above CSC per
pound and sold as high as 3Sc Ger
pound with practically the same
available rubber stock In the world
a. existed in the previous quarter
when rubber was 14c per pound. II
was not until the second quarter Ct
1924 that the average price Of rub
Der fell below 26c, at which time
an additional per cent was 70.
stricted. Next quarter rubber was
still below Csc and further 5 per
cent was restricted, thus allowing
only 80 per cent Of normal produc,
ton to be shipped from the British
colonies.
These additional restrictions al.
vanced the price; In the last quar-
ter OF 1924 the price OF rubber
averaged about 30 cents per pound
and 5 per cent was released. The
price continued above 80 cents-in
fact sold as high as $1.23 per
pound In 1925--and according TO
the provision Of the act, 100 per
cent az standard production was
released on February /, 1926. These
additional releases Of riI b b . =
brought the price OF rubber down
from over $1.00 per pound during
the last quarter Of 1928 TO an
average Of 50 cents per pound IN
April. 1926.
On April Is OF this year the Brit.
isn colonial office announced that
| IL the price OF rubber FOR the next
quarter beginning May !, did not
remain above ~ cents per pound
Tor the quarter, It would place q
new restriction on rubber allowiIsR
only 80 per cent Of normal produc,
ton to be exported In the follow.
ing quarter, starting August !,
1925. Rubber continued to decline
rapidly until It reached a. cents,
and now the average price for the
quarter IL around ~ cents.
As there are over $4,000 tons Of
rubber In London under the con.
troll Of powerful interests whose
purposes are best served by having
this new restriction, and as the act
calls for the price to be fixed each
day by the last sale at 3 o'clock,
1t should be very plain to Alneri-
cans that this quarters average
Is more likely to be a little under
AZ cents than q little over, and
that on August /, we viii again
have British rubber production and
expectation restricted to only so
per cent OF normal production.
Millions ut Stake
This being so, want to call par.
ticular attention to the fact that the
minimum price OF rubber fixed by
the new restriction Is % cents, In.
stead Of a minimum price OF rs
cents, fixed in the Stevenson rub.
Der restriction act of November /,
1922, or II cents pound higher.
One cent g pound advance on rub.
Der imported into the United States
in one year means over $4,000, 900.
It Is very easy to figure that
American automobilists have an ad.
dItional minimum fixer charge on
their transportation Of $136, 0O0, 900
per year.
It is unthinkable that Americans
will sit idly by and allow q, COM
modify so vital to our welfare.
transportation and commerce to
be held in the tight grip OF a for.
eign monopoly that tells us how
much rubber we may receive ana
how much we are to pay for it. IN
January, 1928, two months after
the Stevenson rubber restriction act
was announced, presented figures
and statements to officials in Wash.
ington showing them the serious.
ness Of the situation and succeeded,
in April OF the same year in having
Congress appropriate $4,000 to in
vestigate new sources Of rubber
supply. This investigation and per-
soaal Investigations that 1 have