The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-09-13
KEEPING UP
With
THE NE WIS
BY LUDWELL DENNY

WAsHINGToN, Sept. 13.-An-
W other British rubber restric-
ton plan hitting American automo,
bile owners, such as Herbert Hoover
fought so bitterly two years ago, is
reported in the makig.
What effect this will have on
American British relations if Her
bert Hoover is elected President IS
a subject of speculation among dipA
lomats here.
The new plan provides for a pri-
vate trade agreement between Brit.
ish and Dutch planters to limit
production and control world prices
Of raw rubber, it is said.
This system is designed to take
the place of the British Govern
mental restriction, known as the
Stevenson plan, against which
Hoover as Secretary Of Commerce
aroused Congress and American
public opinion. The formal Stew
enSon plan, according to a recent
announcement by the London Gov
eminent, will be terminated Oh
Nov. /.
The seriousness of rubber re-
striction from the American point
Of view, as repeatedly set forth by
Hoover, is that this country be-
cause of its automobiles, operated
by practically the entire population,
consumes for tires and other pro-
ducts more than 80 per cent of the
worlds raw rubber output. A1eri-
cans therefore are said to be vir-
tually at the mercy of the British.
who control 10 per cent Of the
world production
r. =
TN defending the Stevenson sys-
l. tenn Britons said it was no worse
in principle than the high Ameri-
can tariff wall, and that anyway it
netted them almost enough to pay
charges on the British war debt
to the United States.
American rubber manufacturers
however, were blamed by some at
the congressional hearings not only
for passing on to consumers in
creased prices resulting from Brit
ish domination, but also for allie
gedly pyramiding the increase to
initiate tire profits. The American
companies denied this.
Hoover and others set about to
combat the British in three ways.
BY arousing public opinion and
making yelled threats of reprisals.
By a Department Of Commerce
campaign to develop substitutes, es-
pecially through salvaging used rub
Der products.
BY elaborate world surveys to find
the best vacant rubber producing
areas where American capital would
be favored, and by encouraging
American companies to grow their
own"
Firestone then acquired large
concession in Liberia, Ford took one
in Brazil, and Goodyear and others
are waiting for a change Of land
laws in the PHILIPPINES to start
plantations there. At the same time
Edison and others are increasing
experiments for production in this
country of vegetable rubber.
Il
VKTHEN the British Government
! w this summer announced its
contemplated removal Of the Steven
son restriction, Hoovers friends
credited his campaign for suhsti-
tutes as responsible for the victory.
The British, and some Americans.
ridiculed this claim. They asserted
the British restriction system broke
down because it was sabotaged by
the Dutch planters, who control
most Of the remaining 80 per cent
of world output not in British
hands.
The British and Dutch raw rub
Der interests, now attempting to ne
gotiate a new restriction plan, pro-
TESS to sheer at the Firesones and
Ford plantations, on the ground they,
will be unecononic and in any event
will not begin to produce for five or
ten years.
Apparently the Dutch, who failed
to cooperate with the original
British system, are now being driven
by continuing low market prices
into another combine to fix prices
The only hitch remaining is re-
ported to be the Dutch desire for an
equal production apportionment.
which the British are not yet ready
to grant.
Many economists and rubber ex-
perts, however, think rubber acre
age is already so far in excess of
demand that prices will tend to con-
tinue low, and that no artificial re-
striction plan can work in the
long run.
MEANWHILE American acquisi-
Wilton Of giant foreign conces-
sions has produced, it is charged,
attendant evils of "imperialish" and
native exploitation"
Ford and the Brazilian govern
ment are attacked by a Braziliand
press minority for the concession
contract, which allegedly gives Ford
the power Of a Gar over a vast
Amazon kingdom
DR.. Raymond L. Buell., research
director of the Foreign Policy As
ISOLATION, recently returned from
extensive study in Liberia, charges
that Firestone's plan to develop
100000 acres with 100000 men
under the plantation" system will
result in compulsory labor and
native Generalization.
He charges that Liberia has been
brought under tighter American
domination b the new 7 per cent
loan running till 1867, and by the
power given the President Of the