Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-01-20
HOOVER CONDEMNS
RUBBER MONOPOLY
Secretary Endorses Bill for
Collective Buying of Foreign
Controlled Materials.

Americans who buy automobile tires
have been forced to lose millions Of
dollars annually by Great Britain and
It's rubber monopoly. and the reduce
ton in rubber production by the British
keeps the country dangerously near a
buying panic. Secretary Hoover told the
House Judiciary committee yesterday in
incorsing bill TO permit the forma-
ton OF American trade associations
to make collective purchases OF raw
materials controlled by foreign nations.
AT the close OF the hearings, Chair
man Dyer indicated that the commit
tee would report the measure favor
ably. as the evidence appeared con-
vincing and further statements were
unnecessary"
The reduction In rubber production
by the British keeps the world dam
gerously near buying panic. the Com
merce Secretary declared. and at times
has lifted the price OF the product be-
You'd reason.
Endorses Newton Bill.
Mr. Hoover appeared before the COM
naittee in connection with the bill in
troduced by Representative Newton.
Republican, Minnesota. which amends
the Webb-Pomerene export trading act
and is designed especially 10 permit
collective purchasing by American
combines OF rubber. potash and sisal,
which are under monopoly control by
foreign countries.
Three leaders in the automobile In
dustry. including Harvey Firestonc,
president OF the Firestone Tire Co.
Charles D. Segar president Of the
United States Rubber Co, and John j.
Raskob, chairman OF the finance COM
mittee of the General Motors Corpora
ton, also advocated enactment OF the
measure as essentially needed 70 aid the
American tire consumer.
Secretary Of Agriculture Jardine IN
letter 10 the committee added his sup
port, declaring that the foreign mo-
nopolies constituted constantly grow
ing menace, especially in the three
products in question. He said that such
legislation would greatly benefit Amer
lean farmers, who IA a group c0nsti-
tute the countrys largest consumer
Of the three commodities.
Sees Soaring Prices.
The efforts OF American rubber man.
ufacturers 10 combat the British mo-
nopoly we're outlined by Firestone and
6egar. who described their companies
plantations FirestOne said that the
United States used about 10 per cent
Of the total rubber production Of the
world and urged that American capital
be utilized for growing OF the commod-
i,y In the Philippines and other sec
tons Of the world. Raskob said that
II the monopoly existed. there would be
a continued Increase III prices.
1T Is obvious that American manu-
facturcrs are absolutely dependent upon
a source OF supply over which they have
no control" said Segar. He declared
that 80 per cent Of the rubber was
used by this country for the manufac-
ture of tires and their accessories.
Secretary Hoover said that the meas.
ure did not contemplate a trade war
but WAS merely 10 protect the American
consumer He declared that the bill
had been presented In 1924 after rub
bcr prices had scared To extreme
heights, and experience since that time
had justified the legislation.
Expansion OF the American rubber in.
teIests IL the ol.tposts Of the world was
discussed with President Coolidge to-
day by Mr.. Firestnne.
lie toIn MIR. IoDl!une ltht american
rubber makers were endeavoring LO lo-
cate new sources Of production and
that they were going ahead with their
plans uidismayed by alleged efforts u
British and Dutch rubber interests "a
staye Americans of.
The manufacturers discussion with
Mr.. Coolidge crniefed particularly
around the production area Ia Liberia
Where Mi Iirehtone believes American
rubber people would make considerable
hfadwaY In the future. The possibility
Of producing rubber IN the Philippines
also MAS considered. but Mr. Firestone
suggested that Ia change In local laws
| would be necessary IN order that larger
! acreage could come under American SUI
petvislon.