Evening star., 1926-03-16
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

Uncle Sam is asking the world to
release its monopolistic tentacles OF
trade. A committee Of the House OF
Representatives has reported monop-
olies fostered by Great Britain, Franco
Germany, Brazil. Mexico and Chile.
which are alleged to be costing the
United States nearly a billion dollars
annually in extortionate prices on
commodities they control and we con-
sumo. The monopolists ask what
are YOU going to do about it?' The
committee gives no answer.
" - " Il
There is the rubber monopoly Of
Great Britain which, according to
our Department of Commerce, cost
Americans $10O,00o.0oO In the last
three months Of 1925, above what
rubber producers had conceded "oulo
give them fair price above
cost Of production-26 cents q pound
for crude rubber, which would yield
investors in rubber plantations from
is to 25 per cent on their holdings. =,
, The plan Of control was formulated
in 1929 whereby all producers We're
allocated a certain maximum they
might export annually, based upon
their previous exports. IT they ex-
ceeded that maximum they were
taxed upon their entire exports con-
flscatory amount. The result was 10
send prices up to s1.21 a pound. The
House committees review or the eX-
tortion contains this statement:
'"The import cost above the IIII
price during the last three months
amounted to over $1O0,000,000. Our
rubber imports in 1925 were SSS,47S,-
385 hounds. Had the price OF NO
vember and December continued dur.
ing the year 1926 rubber imports or
like volume would have cost $S97 1868. :.
169 The hearings showed that 1o
cents was a fair average cost COZ pro-
duction) per pound. The plantation
cost of our supply therefore was
"On the basis of 36 cents. the fair
| price' announced by the growers WIen
| the control was inaugurated. tne
scheme would have cost the AMER
can users total or S31e e,'4o. Io!. Dos us
| n the November December price toI
e, o1 average) was maintained the
American rubber purchaser would De
! paving $S97, ,363,16e. or s737 ,s9o,oo4
more than cost Of production anG
s57s 618.O38 more than its fair price:
british prices have been reduced oy
! tho retrenchment in American con
! s,,rnntion of rubber in efforts OF sell
| dafense Of consumers, but the BRUSH
authorities as late as February l last
| continued the policy of RESTRICTION OH
| exports.
X :S I; :;
| What recourse Is open to America
The standard rubber tree Is indigenous
to South America. Brazil had a Ia"
| nrohihiting the export of seed, bu'
some years ago, it is said, a British eX
nlorer surreptitiously exported some
| seed. and from that the entire INDUS
trv has developed in the British East
| Indies.
Our Department Of Agriculture has
been studying the possibilities OF pro
ducing rubber in the Philippines and
| in other regions under American turis
diction. Southern Philippines are well
| adapted to it, SO far as climate and
| soil are concerned, but owing to the
| fact that it takes seven years for a
tree to begin producing, and to the
uncertainty as to how long the United
States will retain jurisdiction over the
islands, capital hesitates to invest
| therein. At present Philippine Law
forbids any one unit Of land holdings
| in excess of $500 acres, which is toe
small for rubber production owing tc
costly overhead expenses.
\ Experiments are in the making with
various kinds of rubber plants, in Cal
ifornia, Texas. Florida, Hawaii AND
the Philippines. The most successful
plant for Texas is the guayule bush
which must first be propagated tive
years In greenhouse, then set out
when developed it is reaped enc