Evening star., 1933-01-15
new RUBBER USES
| SOUGHT BY TRADE
Research Bureau Hunts Out
lets for Production as Tire
Demand Shrinks.
q .e:al Dispatch to The Star.

81 cal Dispatch to The Star.
NEW YORK, January 14.-The world
rubber trade-from Malayan grower to
NIincing Lane broker, from American
shipping operator and New York Rub
ber Exchange member to Akron tire
nlanufscturer-today is watching the
outcome of the National Automobile
Show here. That is quite natural, be-
cause the shoes of American motor
cars require about 80 per cent of the
rubber used in America. and this ex-
ceeds half of the worlds consumption
Of that product.
Automobile units produced in this
country last year numbered 1434197.
against 2.418,216, or the smallest num-
Der since 1918. This decline in auto
motive manufacturing was mirrored in
our use of rubber. American rubber
consumption in 1882 declined about 90
per cent, while world use fell less than
per cent.
Cut in Tire Output.
Shrinkage in tire production, result
ing from lessened demand for new and
replacement Shoes" piled up record
rubber stocks in this country, the gain
during the last year exceeding IT per
cent. Thus far the American rubber
trade has carried on a limited research
program to find new uses for rubber
Officials of Akron companies. now here
for the annual meeting of the Rubber
manufacturers Association, point to
the development of tires for tractors
and railways. The Rubber Growers
Association of London, because of large
British investments in plantations, is
carrying on extensive experiments to
find new rubber uses
Replacement tire demand in this
country has been light because the
average car has been used less than
normally in the last two years. Many
tires have been used so long that they
are bald" or smooth from edge to
edge. making them unsafe for use A
clocker at the George Washington
Bridge here a few days ago checked
26.660 tires, of which one-third were
worn smooth.
Estimating tire replacement unit |
sales at 100000 in 1882. against A.
o00, 900 in 1929, the trade today pointed |
out that quality of tires has averaged |
higher in the last few years. Dealers
In anticipation of increased taxes last |
Summer. stocked up on tires, but sales
were not as brisk as expected. Hence !
the retail tire dealer at the year end |
had higher inventories than usual, |
which somewhat offset the low stocks |
carried by manufacturers.
Further changes are taking place IN |
tire outlets. Mail order sales of re-
placements last year were less than in
any year since 1927, with a further dip
predicted for 1888. Perhaps the con-
troversy between mail order houses and
tire makers over construction qualities
did not help the former. Oil companies
that added tires to their lines several
years ago are not now so eager to
push tire sales
Piling up of crude rubber stocks in
this country. in the face of reduced
imports, naturally has created some
apprehension in other world rubber
markets and among growers. Prices on
the local exchange, however. have been
relatively stable, ranging from 25s to
45s cents a pound during 1882, on a
turnover Of 271 $40 tons, against 2l9,-
4S0 tons in 1881.
Speculative Buying.
Resumption of several important tire
plants at the beginning of the year,
along with bettered demand for me-
chanical goods. a natural accompani-
ment of plant bilitation programs,
and the damp weather, which created
q brisk demand for rubber footwear
and coats, attracted speculative buying
In the local rubber market in the new
year. The advance of crude rubber
futures continued through Monday, but |
halted Tuesday on Far East cables that
the dealers stocks there at the year
end totaled 3o,744 tons. against 29,404
on November go Stocks totaled 50,72l
tens on December 81, 1881.
While few experimentalists outside
OF the major rubber industry are pro-
ducing rubber textiles and other new
products-which may be offset by what
is described as fairly good artificial
r1,hter'-r1IhIer Srer1Ilaf0rs are st1ldV-
ing price trends Of the commodity.
They point out that rubber has been in
q seven-year bear market-from S1.25
pound In 1925 during the Stevenson
restriction plan) to 24s cents this year.
The previous major swing was from SO
cents in 1917 to 11% cents in 1921.
copyright, 1882