September r, 1903 ] 



THE INDIA RUBBER WORLD 



407 



UNWARRANTED ALARM IN GERMANY. 



Published od the 1st of each Month by 



THE INDIA RUBBER PUBLISHING CO. 



No. 150 NASSAU ST.. NEW YORK. 



HENRY C. PEARSON, 



EDITOR. 



HAWTHORNE HILL, 

 ASSOCIATE. 



Vol. 28. 



SEPTEMBER 1, 1903. 



No. 6. 



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COPYRIGHT, 1903, BY 



THE INDIA RUBBER PUBLISHING CO. 



Entered at New York Post Office as mail matter of the second-class. 



TABLE OF CONTENTS. 



I'AGK. 



Editorial : 



Unwarranted Alarm in Germany 407 



A New Employment for Hose 408 



The Manufacture of Inventors 408 



Minor Editorials 408 



Literature of India-Rubber 410 



New Trade Publications 410 



The India-Rubber Trade in Great Britain 



Our Regular Correspondent 411 



[Nomenclature of Rubber, Triumphsof Rubber Analysis. Sources of 

 Balata. Data Wanted on Insulation. The Waterproof Trade. Mo- 

 tor Tire Notes.] 



The Obituary Record 413 



[Lewis L. Hyatt. James A. Wilson. George Jager.] 

 [With Four Illustrations.] 



Rubber Factory Appliances 415 



[Automatic Disc and Ring Culter. Automatic Tubing Cutter. A 

 New Tubing Machine. The Crowning of Rubber Covered Rolls. 

 The "Umbrella Top" Screw Press. Patent Mold and Y'ulcanizer 

 for Solid Tires.] 



[With Nine Illustrations.] 



" The Great Para Rubber Plantation Co." 417 



[With Three Illustrations.] 



Finances of a Rubber State [Amazonas] ... 420 



India-Rubber Goods in Commerce 421 



British Imports of Guttapercha 422 



Rubber Goods for South America ... 422 



Recent Rubber Patents (American, British, German] 423 



Rubber Exploitation and Planting 425 



[Rubber Resources of Rhodesia. Sources* of " Root Rubber." Notes 

 on Planting Companies in Mexico and Elsewhere. | 

 [With Three Illustrations.] 



New Goods and Specialties in Rubber (Illustrated) 428 



[An American Tennis Ball. The " Republic " Cross Wire Tire. The 

 Craodall Golf Ball. Tenant's Puncture Proof Tire. The " Old 

 Salt" Boot. •' Agnota" Vest Pocket Punching Bag. For Brand- 

 ing Sheet Packings. 1 



Miscellaneous : 



Rubber Protection in Nigeria. .. 409 



Exhaustion of Hevea Rubber Puul Cibot 409 



The Original Goodrich Factory. .Illustrated 114 



A Pioneer in African Rubber 414 



"Tyres" Id an Encyclopedia 416 



The Cup of Melted Rubber 4i9 



•' Rubber " from Greasewood Again i.:i 



The Acre Dispute Settled 4l'1 



Rubber Notes from Europe 429 



The Textile Goods Market 431 



News of the American Rubber Trade 433 



W'iih Three Illustrations.] 



The Trade In Akron .'....Our Correspondent 130 



The Trade in Trenton. Our Correspondent 431 



Review of the Crude Rubber Market 436 



^vl'R friends of the Gummi-Zeitung (Dresden), in some 

 ^-^ remarks quoted in these pages last month, sought 

 to prove the destructive effect of Trusts upon industry, by 

 an analysis of a business report of a certain great Amer- 

 ican rubber manufacturing corporation. Without assum- 

 ing to defend the management of this particular company, 

 or of Trusts in general, we may venture to offer some con- 

 siderations suggested by the article in our German con- 

 temporary. 



In the first place, the failure of one so called trust to 

 earn large dividends can hardly be held to condemn the 

 policy of industrial consolidation. For it happens that 

 exceptionally good dividends have been earned for some 

 years by another so called trust in the United States, 

 understood to have been organized by the man who is 

 credited with the formation of the company criticized by 

 the Gummi-Zeitung, and on very similar principles. We 

 refer to the American Chicle Co., engaged in making a 

 confection called "chewing gum," from the product of the 

 Mexican chicle tree. The capital of this company is rep- 

 resented by $3,000,000 in preferred and $6,000,000 in 

 common shares. Since 1899, when the Chicle company 

 began operations, dividends have been paid regularly on 

 both issues, at the rate of 6 per cent annually on the pre- 

 ferred shares and an average of more than 10 per cent, on 

 the commoh. The total disbursement in less than four 

 years has exceeded $3,000,000 ; the company reports a 

 substantial surplus ; and the shares are quoted high in the 

 market. It is doubtful whether the Chicle company repre 

 sents a total actual investment of $3,000,000 ; all its 

 tangible property doubtless could be replaced for much 

 less. The company, too, is as much a "trust" as any that 

 exists in America, and yet the business carried on by it is 

 more profitable to-day than when conducted formerly by 

 the several constituent companies. May not this suggest 

 to the Gummi-Zeitung that the failure of the United States 

 Rubber Co. to show larger earnings may be due to some 

 other reason than that it is composed of several formerly 

 independent companies now brought under a central 

 management ? 



There is another point. The rubber combination has 

 existed for more than twelve years, during most of which 

 it has paid satisfactory dividends. It has not of late un- 

 dergone any organic change of base. It is just as much 

 or as little a trust today as when its earnings were more 

 liberal, and the latest business report makes a better show- 

 ing, even by the Gummi-Zeitung s rules of analysis, than in 

 the preceding year, indicating that its affairs do not grow 

 worse the longer it remains a trust. If, this year, the 

 former dividend rate should be restored would not this 

 invalidate our contemporary's attack upon trusts? 



The Gummi-Zeitung assumes to say what is the real cap- 

 ital of the rubber company, which is more than is known 

 on this side of the Atlantic. Most of the constituent com- 

 panies were formed a long time ago, with very little capi- 

 tal, and gradually expanded into large concerns. When 

 thev were consolidated their value was determined less 



