Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-23
FOREIGN PRICE CONTROL HIT
BY OUININE ANTITRUST DECREE
Agreement, Following Victory in Rubber Market
Another Step Toward Free Trade Condi-
tons i'm United States.

sugar. Other countries furnished some
| of the commodities but the bulk came
from those cited.
The Dutch East Indies are the lead
ing source of Quinine. AS the United
States is the largest market for quinine,
the threat to bar foreign traders from
this market unless they ceased from
practices considered by the Department
of Justice as indefensible at law, evil
IDENTIFY had the effect of inducing pro-
ducerS, importers and dealers to agree
to the American terms.
What is hoped here now Is that the
double experience of the rubber and
uuinine industries will convince other
foreign controls that their best policy
in the long run is to be content with
fair profits and prices so as to avoid
repriSals and legal action by the United
States to protect its citizens. The ef-
forts abroad to stabilize the prices of
sugar and coffee are not resented unless
the American consumer is being
squeezed The same attitude prevails
toward the silk. siSal, potash, nitrateS
and other foreign markets.
American Markets Free.
The Constitution bars the United
States from imposing restrictions in the
way of export taxes on American prod
ucts sold to the world at large, such as
cotton, tobacco, etc. The United States
is the largest producer of these and
some other commodities and the world
buys them here in an absolutely free
market, so far as governmental action
abandoning the effort to control rubber,
but the idea persists in various nations
and may be revived anywhere.
With rubber selling around l9 cents
a pound it is under what was conSid-
cred fair price in 1925 when the peak
quotation of $1.2l was reached. At that
time SO cents pound was declared
reasonable. The Dutch did not join the
British in trying to control the price
and greatly increased their production
to take advantage of the British. This.
with American plans to develop new
sources, was a cause for the break In
the market.
The United States this year probably
which would be record for this coun-
try. We use 10 per cent of the world
supply. In August the United States
set a new high record for monthly con-
sumption of rubber with total of AZ
925 tons. Manufacturers of tires are
putting more new rubber into their
products, and the reclaimed rubber
| market has shown a corresponding
| slump. The use of new rubber in heels
for shoes and in countless other ways
Is increasing. Experts in the Depart
ment Of Commerce predict growing
market for rubber in such ways as for
floors.
u. S. Rubber Bill Cut.
While using as much or more rubber
this year than ever before the cost to
American consumers Is just about half
what 1t was in 1926, when we spent
5000 100000 for rubber, as compared
with 5000, 100000 in the last fiscal year.
The difference represents the drop In
prices Of crude. Much rubber, perhaps
$4,000 tons, is being held in the Far
East until November /, when the Brit
ish restrictions will be removed
1t requires from six weeks to two
months for cargoeS to reach this cOun-
try, and both the Ford and FireStone
plantations will have a real advantage
over the Far East in the item of time
Ford probably can get rubber to the
United States in two weeks, against six
weeks from the Far East This saving
of four weeks will be important, as can
be realized in considering a cargo Of
rubber worth, say 100000. The in
terest on that sum for one month at s
per cent would be $1,000.
But other savings in shipments from
Brazil or Africa will be effected be-
cause of freight charges. Ships from
the Far East must pay to get through
the SueZ or Panama Canals in addition
/ to usual shipping costs. Since most
rubber factories are near our Atlantic
scaboard the rubber usually Is landed
at New York, Boston or other ports
nearest to Ohio and other rubber manu-
! featuring centers However it will be
from four to seven years before the Ford
project can be producing in any guam
| tity. Firestone has year or more start
on Ford. Philippine Legislature Is now
considering new laws to facilitate
! American rubber enterprises there.