Evening star., 1928-04-01

Go ObAN ANiAtC0 ~ aklN TWO COHt-
moditieS could be. but for eX-
~ perts in the Department oi
~ Commerce these two commodi.
ties recently have had kinship, oi
trade interest at least, of the closest
order
Both are produced entirely outside
che United States and both are sub.
tect to monopolistic control or attempts
ut such control Each. moreover has
taken q tumble within the last few
weeks as regards price or monopolistic
position that means In the aggregate
hundreds OF millions of dollars OF saw.
tngS to American consumers
The Department of Justice is re-
sponsible for the onslaught upon tn,
oulnine monopoly by having caused Il
be seized IN New York more than five
tons of the manufactured medicine
Besides this there was a large store OF
cinchona bark. from which Quinine is
made. which the Government intends
shall be released TO the public in the
campaign against alleged price-fixing
at an unreasonable level
Reaches Low Price.
AS for rubber. 1t recently went as
low as - cents a pound after having
reached late in 1928 the peak of Sl2l
a pound. Rubber is among nine COM
modities cited by Secretary Hoover as
subject to foreign control the other
eight being Egyptian ong-staple cot
ton FUSED in auto tire and other fine
productsl. camphor, coffee. iodine, nj
trates. sisal. potash and mercury.
Called before committee of Congress
fVR - - -.
Ject of foreign controls of raw products
necessary to American industry, Secre-
tary Hoover cited these nine commodi-
ties and then mentioned two others
ouinine and siik-virtually under for
eign control and from 20 TO 80 other
commodities which might be monop-
oi5eo II foreign Governments felt dis
posed to do so. although in some in
stances two or more Governments
would have TO combine to effect a
monopoly.
Nearly all quinine originates in the
Dutch East Indies in the Island of
Java. The Department of Justice al
leges that certain foreign and Ameri-
can 0ealers have conspired to keep
prices at a monopolistic level. While
tne foreigners who may be indicted
might not be reached by the American
feoerai courts. 1t is asserted by those
acting for the Attorney General that
refusal TO stand trial would bar them
hereafter from trading in the United
States
Starts Economy Drive.
As regards rubber. no legal action
was taken, but following hts appear
ance before the House committee. Sec
retary Hoover In 1925 inaugurated the
economy rampaign. along with a move
10 IND new sources Of rubber or to dis
cover substitutes. all of which appar-
emily played part in bringing rubber
prices nearer q normal figure.
II will be recalled that the use OF re-
claimed rubber was encouraged. that
motorists were urged TO drive more
carefully SO as 10 make tires last longer
and 10 adopt other policies calculated
to reduce the American consumption OF
rubber with the object Of cutting i'm
ports bv Is to 20 per cent, Since this
campaign began there has been a
steady decline In rubber prices. taking
the period as whole. though there were
iuctuations up or down at intervals
The Dutch. who are involved In the
uuinine situation. also have had an i'm
portant part in fnE rubber industry,
since they are large producers in their
East Indies and made the British at
tempt al restriction Of output. or price,
fixing, virtually a failure by refusing TO
enter the scheme. With the Dutch
taking advantage OF British restriction
by increasing their production to the
maximum. the Brifish growers have
raised the question of advisability OF a
continued attempt to stabilize" prices.
end the British government shortly is
exDected to announce whether the
Stevenson act viii be abandoned, modi-
ned or kept In force.
Under Fair Figure.
Before the restriction plan was adopt
ed, rubber had gene down below the
figure where IL represented q fair re-
turn TO producers and IL is significant
that during this month. by getting as
low as ~ cents pound, rubber again
went below that figure. The growers
IN 1928 had said 80 cents pound was
flair" SO rubber this month was IL
cents under the fair" figure. what
caused the American protest in 1926.
however was the advance in the price
far above the fair level 10 the peak
price Of 81 q cents pound. or s5 cents
above fair"
As the United States uses about 10
VSJ Irfkk VI t&8F #gtbI DUtV1bs Of u1OtE
than 300 900 900 pounds year. 10 pay
s5 cents q pound In excess Of the fatT
price of 30 cents would have meant from
$500 900 900 20 $500 900 900 drained out
~ the United Efates In excess OF the
so-eaiiec fair level. II Is true that the
i2i price wss for spot orders. whereas
the average prize wss around 70 cents
for that year. but the Department oi
Commerce had 70 take into account
that the spot price might readily be.
come the average price. On this point
Secretary Hoover tod The committee O'
the House:
When We witness prices suddenly
raised fer above what even the sEokes.
men of the controls fase announced u
b. fair BY an additional amount which
~ present. prices 1926 II continued
would, for the increase above fair
alone. c1si our consumers sBD1sily from
$500 091 900 70 $500 600 900, depending
upon the price assumed. then We ms
we'll conclude that either tfasSe ooptfoii
poSSess that inherent quality ~ au mo
noDohss never ~ b. content With res
sDTas1le pFlees~s9T that spectators hasi
esizNc direction 81 them snc driver
prices 10 unreasonable 5sPeAs
A swing Dsek TO slightly higher price
f,F rsi}>es sea sF after the "A cent iDs
marx Nss reached early 1n March. Oea
neS faeloKs of sfsat importance Are sJa
ter7Gs into tias Eaaigssef Dfsso'1etbsR tit
Batson g14ielg growers ln fAf Fst ksFt~-
ths principal source ~ rut9asf taeA
ere taking into account. Oar ~ tists
'sntlFs l. he effora ~ hnlsf56hn iD'AI
E8ik " pFoga6s fileaasejyss with if2si
own segBfcss ~ s8ases Tgs1iSeT tfs FIRE
BaSBE1 plantations ste vel aaaasF Ssg y
Africa src Besagy Fefe h laying alt
Ensmnsotg DFogeei Ia South hDaeTles.
aTsFksa gHHasaesS.
WD3lf 4 requires ffom to8f ~ seYSi
gears tog planted trees ~ l3eg39 DesT3tl
}st3x, 81 the sap from Si9gb rubber
MADE. M very Woe9ed ~ t8eAe Esi