The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-11-01
KEEPING UP
With
THE NEWS
BY LUDWELL DENNY

1921
VXTASHINGTON, Nov. with
w discontinuance today of the
British Stevenson rubber restriction
system, one important source of
friction between the London and
Washington governments has been
removed. Moreover, another cut in
the price of tires is anticipated.
Herbert Hoover, who, led the
American attack two years ago
against the British world price-fix-
ing plan, was too busy today closing
his campaign affairs and starting
west to comment on the collapse
of the rubber corner first predicted
by him.
But at st. Louis tomorrow he is
expected to discuss the American
farm surplus problem, which the
British have described as similar to
their rubber surplus problem. Hoo
yer has been consistent in opposing
the McNary-Haugen equalization fee
for agricultural products, which is
attacked by some critics as a "re-
verse English" type of the Stevenson
| plan.
Though American officials and
rubber men here are happy over
the return for the first time in six
years to "the law of supply and de-
mand" in the rubber trade, there
are disquieting reports of attempts
by British and Dutch planters to
initiate an unofficial restriction plan
like the Stevenson act.
1t is admitted that the British
and Dutch control world rubber
production, and will continue to do
SO for five or ten years until the
new Firestone plantations III Liberia
and the projected Ford plantations
in Brazil are ready to tAA
QUT there is some skepticism
- here concerning the ability of
British and Dutch to get together
and stay together long enough to
reduce world production and drive
prices up. For there has been grow
ing emmity and competition between
those two groups for markets.
Long before the British govern
ment announced it would dis
continue the Stevenson regulation.
Dutch production and sales COM
pletely had disrupted the British
attempt at world monopoly and
price-fixing.
Though Hoover, through his plan
Tor American rubber manufacturers
TO utilize substitutes, originally was
given much credit for spiking the
British system, it is accepted gen.
orally that Dutch competition was
the main factor.
Dutch East Indian production was
only about $4,000 tons in 1922, com
pared with British Malayan out
put OF 100000 tons. But as the
British reduced production and
boosted prices, the Dutch increased
output, until last year it was 225,-
900 tons.
AS a result of this Dutch COM
petition, the price of rubber, which
had been forced up artihcially to
$l,21 a pound, fell to the present
price, around 10 cents.
The price is not expected to go ap-
probably lower, because discon-
tinuance of the Stevenson system
has been discounted since last
summer, when the Nov. / date
Of termination was announced.
Furthermore, the present price is
said to be so low as to discourage
production except on large and
well-managed plantations.
A REPORT just received by the
IA department of commerce from
a representative in British Malaga,
states: THE average cost of produc-
ton +. o. b. seaboard for the better
managed companies appears to be
around 80 cents Straits, or I'll
cents gold pound"
Commenting on the failure of the
Stew on plan, the department
says:
What happened in the east pro-
vided a striking illustration of
Hoover's contention that devices of
this sort are essentially unavoidable,
because they go counter to basic
forces.
mo would-be monopoly in rubber,
or drastic rubber restriction scheme.
can be made effective under existing
conditions. There are, or will be, too
many sources Of supply.
Extensive plantation rubber
growing is under way in Africa and
is contemplated in Brazil. Then, too,
there are substitutes for the true
rubber tree. In our own American
southwest we have the guayule
shrub. We must not forget the in
vestigations and experiments of Edi-
son. 1t is quite possible that his
researches will lead in a few years,
to a large production of rubber