Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-29
POOLED RUBBER
BUYING ENDORSED
A. A. A. Lends Support in
Behalf of Amendment to
Webb.POmerene Bill.

Pleading the case of the American
automobile owner as the man who pays
the bills" the American Automobile AS
ISOLATION has Joined with Secretary OF
Commerce Herbert Hoover and rep
resentatives of the automobile manu-
facturer the tire manufacturer, the
farmer and the chemical manufacturer
in behalf of the amendment to the
Webb Pomerene bill which will permit
pooled buying of crude rubber.
Appearing before the House judiciary
committee, George w. Offutt. chairman
of the legislative committee OF the A.
A. A.. pointed out that the organiza-
tons board of directors was unanimous
" In favor of the proposed amendment.
He characterized it as giving legal sane
ton Ito one of the defensive steps al
ready taken by the rubber industry in
forming cooperative purchasing pool
to combat the foreign monopoly in ex-
acting an exorbitant toll from the 23,-
600. 900 car owners of the country.
The extent to which the American car
owner was in the grasp Of this group.
he declared, was reflected in the fact
that the difference between the fair
price, for rubber of So cents a pound
and the Sl.20 peak price represented
an extortion of $3.50, 000,0
Result Of Increase.
"A 10-cent-a pound increase in rub
Der will take $4,000. 900 year from the
purses of motor vehicle tire users" Mr..
Offutt told the committee. This coun-
try uses about 10000. 900 pounds Of
rubber annually, and it is reasonable
to assume that the manufacturers add
certain charges to the additional cost
before fixing the wholesale price OF the
product. which would make the addi-
tional price to the consumer more than
10 cents a pound"
The American Automobile Associa-
ton, Mr.. Offutt declared, fully con-
CURED In the belief OF Federal ofhcials
and leaders OF the automobile and tire
industries that the rubber buying pool,
although affecting only about 10 per
cent OF the total consumption, was the
significant factor In keeping the differ
entail In rubber prices at cents during
the year 1927 Comforting this remark
able benefit upon the motorist, the pool
Is definitely worthy Of legal sanction
Of Congress, he said.
Reviewing the sensational history Of
the rubber industry, Mr.. Offutt pointed
out that the A. A. A. was among the
first organizations to enlist its support
to the nations effort to break the grip
OF the British monopoly. I'm 1925" he
said. "the American Automobile ASso-
citation carried on one OF the most ex-
tensiye national educational campaigns
in its IS years Of service TO the motorist
The manufacturers developed more
uses for reclaimed rubber and In addi-
ton formed q purchasing pool. Con-
gress conducted extensive investigations.
The Department Of Commerce, under
Secretary Hoover. rendered invaluable
aid. Great Britain once more exacted
undue tribute from American citizens.
Once more We fought TO defend our
rights. this time economic. not politi-
cal.
FAN In Price Cited.
"Our combined defensive steps re-
suited In a quick fall In the price OF
crude rubber More rubber was thrown
in the market by Great Britain and we
promptly began 10 feel the beneficial
effects OF Our concerted, aggressive &C.
ton.
1T is generally conceded that the
purchasing pool which the manufac-
turers started had an important effect
In the rubber market and helped to
bring the lower prices.
we u1ocibLdilo Tie eueCt Oh TIC pIo-
posed amendment viii be to give legal
sanction 10 such q pool TO be operated
On q much larger scale for the purpose
OF keeping the price Of crude rubber
low. and . corresponding low price on
automobile tires. Anything that the
committee can do that will have the
effect OF lowering the prices OF auto
mobile tires will be greatly appreciated
by the worlds biggest rubber consumer,
the American motorist"