Evening star., 1928-03-18
RUBBER MONOPOLY
PROTECTION URGED
A. A. A. Wants Congress to
Take Steps Toward Guard
ing U. S. Interests.

LEGISLATION hy Congress to safeguard
! III, United States eC3inSt the dangers
ot a foreign rubber monopoly and eX-
hcrbit2nt prices for tires was strongly
advocated by the board of directors OF
The American Automobile Association at
its recent MiQNiNter meeting ii NeH
YORK
The action Of tho board Of directors
II the national motoring body toSk the
form Of unanimous resolution urging
Congress TO put through as quickly as
possible an amendment TO the Webb
Pomerene act 10 give importers of rub
Der and other commodities subject to
foreign control the power OF combined
purchasing now granted To American
exporters under the Webb -Pomerene
set.
Bills TO effect this are now pending in
Congress and Thomas P Henry. presi-
dent of thc American Automobile Asso-
citation. who presided over the meetings
of the board. gave assurance that repre-
scntativeS OF the A. A A. and its 9S8
affiliated clubs would appear before
committees of Congress to urge the i'm
mediate passage of this protective legis-
lation. The National Automobile Cham
Der OF Commerce and the rubber inter-
estS of the country are strongly in favor
OF the legislation.
Cities Pool Benefits.
Prior to the boards action. John II.
Raskob. vice president of General Mo-
tors and of the Du Pont Co,
made a brief address in which he
pointed out the beneficial effects of the
pool Of $4,000 tons of rubber purchased
in the open market by American inter-
eSts last year.
This pool" he said. while it only
constituted 10 per cent of the total con-
sumed in the United States. unques-
tionably helped TO maintain stable
prices, with the result that the highest
price diferential throughout the year
was only cents The 1927 market was
by far the steadiest In many years and
there is every reason TO believe that the
way to offset the danger of monopolis-
tic control is TO apply the combined
purchasing power of the United States
to buy rubber wherever 1t is TO be had
in the open market.
The legislation before Congress con-
forms in every respect with the terms
of the Sherman act and other anti
trust laws and provides ample protec-
| iion against any attempt TO use ar
American rubber pool to the detrimen'
/ OF the AMERICAN consumer
The discussion brought out the fact
| that the difference between q fair price
| Of So cents pound for raw rubber anc
| the price Of sl.20 to which rubber
| SCARED In 1925 meant foreign levy o!
| $3.50. 900 900 on the consumers OF the
United States.
Other Matters Considered.
In addition 70 the resolution calling
for national rubber policy, the board
Of directors Of the A. A. A. took action
on several other matters of vital inter-
est 10 the car owners. Among them are
the following:
First, resolution urging all State
highway departments TO complete al
the earliest poSsile moment the work
Of placing the Federal numbering. di-
rection and cautionary signs on the in
terState highways and the constant ex-
ercise Of vigilance TO prevent the imita-
ton Of these signs by 'snipe" adYer-
tisers along the highways.
Second, resolution urging A. A. A
clubs everywhere 10 advocate the con-
struction and the marking OF cutoff
routes and belt lines as optional routes
! populated areas.
Third. a resolution recommending
the establishment OF an Official appoint
nlent service for tourist homes through
out the United States. with definite
sanitary standards and rates. as con-
venienced and a safeguard for tht
| motor tourist caravan"
Alleged plans for the construction o;
| toll highways on a gigantic ScaIe
throughout the country were called tc
| the attention Of the board The unani.
| NOUS sentiment was against any whole.
| sale scheme for toll roads In America
| under whatever guiSe such scheme Il
| brought forward, and the legislative con-.
| mittee Of the A. A. A, VAS authorized
| 70 investigate any proposals looking II
! this direction