Evening star., 1926-05-02
SEES RUBBER PRICE
SAME ASLAST YEAR
General Tire Company PreSi-
dent Doubts if Brazil Re-
news Production.

Likelihood that Brazil Will re-en-
cage in the production of wild rubber
IS not so great today as it was six
months ago, when peak prices pre-
vailed, observers are convinced.
This point was made recently by
w. O'Neil, president Of the General
Tire and Rubber Co. The rubber re-
sources of the world gradually are ad-
justing themselves to the high price
of last year, Mr.. ONeil believes. He
does not look for return to the low
prices that prevailed in the Winter
of 1924-l925 when the British Colonial
restrictive laws began to pinch, how
ever.
Trees Valued at Millions.
The BraZilians, who have hundreds
OF millions of first-class rubber trees,
showed great activity and interest in
their native industry when rubber
passed so cents pound on the way
up. Brazil cannot compete with
Malay labor or plantation methods
FOR the production of rubber. for in
Brazil the rubber gathering is done
by nativ ves-Indians-who would Starve
IN wages that mean prosperity to the
Malay. When rubber neared 81 a
pound, however, there was a chance
Eor the BrazilianS to work their rub
her trees at a profit, and much pub
Lefty was given the fact that South
America might have q heavy hand in
breaking down the Middle East mon
opoly of the Malay, British and Dutch.
But since rubber has come down
again into the fifties and sixties South
American enthusiasm has waned con
siderably in the last few months. This
is TO be regretted, for Brazil IS the
birthplace of the hevea, or high grade
rubber tree. and as North America
uses most Of the worlds crude rubber
1t would be much more convenient to
obtain our crude rubber supply with
out going around the world for it.
Frequently Seen i'm L. S. Market.
Nevertheless the South American
rubber hams So-Called to distinguish
them from the crepe and sheet rubber
of the Malay plantations, are seen
much more frequently now i'll the
American market than in the last 10
years. The result of the recent strain
on rubber has been a general loosen
ing up of all the worlds resources,
and the additional supplies now ap-
pearng will be permanent and Will
gradually increase, 50 long as the
growers and handlers can make
profit The obvious necessity OF
profit for them. is one of the things
that make it certain that rubber
prices will follow cost of production
as we'll as demand and will not. for
many wears at least, be as low as they
were year ago
when the rubber crisis first ap-
peared we predicted that there would
be no actual shortage of rubber. such
as would interfere with manufacture
ing operations in American factories.
Events Sustain Prediction.
The panic was such that there were
many who took issue With us on that
point, but events now are proving
that we were right. Eastern planta-
lions are producing more efficiently;
the Malay labor supply is being util-
ized to better advantage, and the ef-
fects of the effort to provide for the
future are being felt to a small but
appreciable degree.
'"The whole situation is most inn
portant. because of the many wild re-
ports about the rubber market that
have been in circulation. 1t seems
certain now that the wild part of the
furry is over; that buying is being
done so carefully that dollar rubber
will not appear again and the rubber
scarce of 1925 will be forgotten in a
year or two"
The greatest bus-using region in the
country is that north Of the Ohio