September i, 1906.] 



THt INDIA HUBBEK WORLD 



379 



THE KATE OF- PROFIT FROM RUBBER. 



Wft^ 



Pablisbed on the Ist of eaoh Month b; 



niE INDIA RUBBER PUBLISHING CO. 



No. 35 WEST 21st STEEET. NEW YORK. 



CAHI I AI>!>I^/SS: IRllOKI.D. NIAf li)/,A'. 



HENRY C. PEARSON, 

 EDITOR. 



HAWTHORNE HILL, 

 ASSOCIATE. 



/Ol. 34. 



SEPTEMBER 1, 1906. 



No. 6. 



tuHni^KiiTioNn; «^.uu pur year, $1.7& for .SIX iiiutittiK, puHi|i;ii(l. for Itie Uiilled 

 stHles ami Canada. Fort* iKii countries, same price. Special Rates for 

 ('Hihs of live, leu or more subscribers. 



iiiVKKTIHIM): Kales will be made known on appllcatiou. 



COPYRIGHT, ifofi. BY 



THE INDIA RUBBER PUBLISHING CO. 



Kiitered at New Vork Post ottlce as mall iriatlerof Uie sfcnud-class. 



TABlE of CONI tNli. 



r.VGK, 



E litorial: 



The Rate of I'rotit from Rubber 379 



Tbi- Gerinan Rubber Industry 380 



Minor Ivlitorials 380 



Results Obtained from Belts 383 



C ude Rubber and Planting Inter sts 385 



(Willi 2 lllustralioiis.) 



Am -rican Importation of Tires 387 



The India-Rubber Trade in Great Britain., "ur (i. yudir ( orrex/zoin/i nt 389 

 [\lr. Huigiss's Report. The I'se ct( M:ii.;iiisia. Kei laiint-fl Rubber. 

 S*K uly ul i'lieiiiii al lntlusti\. Rubber (."ompaiiy Kiuiiiici; ] 



A Rubber Swindle in Washington 



Lead Jacketed Underground Cables Opposed 



New Goods and Specialties in Kubber 



[.\.liiist.ible Auli i'!o.,kcd Hiel Cusliiou. l''lu.\iblc Rubber Stem. Black 

 Rulibci Heels, riulf and Tennis Bottoms for Shoes. The Wayne 

 KoolboUl. " Brislletite" Shaving Brush Turck's Neetlle Uouche. 

 Hopewell Tire Case. The .American \'ibrator.] 

 [With 6 lllustrations.J 



Recent Rubber Patents 



[United States. Great Britain. France.] 



Rubber Tires for Fire Apparatus 



[Illustration.] 



Ru bber Production of the World 



[trongo Rubber and the Antwerp Market. The Latest Para Crop Year. 

 Heclit's Rubber Statistics.] 



Rabber Interests in Europe 



[ijermany. Great Britain.] 



Notes of the Tire Trade 



Miscellaneous: 



l',u:iyiile Production of Mexico 



.\ New Sidphtir Moiiojioly 



I'arrel Ac((uires the Kelly Plans 



Obituary 



Coa.niilation of " Caslilloa " RuIjIkt 



Rubber Coods in Coininerce 



Insulalin).; Rubber Cables 



Literature of India Rubber 



A New Rubber in Venezuela 



Rubber Rats in Ceylon 



The Highest Tension Cables 



Rubber in Fish Bait 



Treatment of Cluayule Rubber 



Charles R. I'lint in Russia /"or/rail 



Tire Troubles on the Glidden Tour 



British Rubber Goods Exports 



.•\re Tires Beconiinj^ Smaller? 



Jar Ring Cutting I.athe Illustration 



The Piston Packing Industry 



Machine for Treating Rubber Waste . ...... Illustration 



Meeting of the Firestone Company Illustration 



News of the American Rubber Trade.. 



Rubber Trade at .\kr<m Our Correspondent 



The Pacific Co.ist Kiilihcr Trade Our CorrtS[>ondc7it 



Review of Crude Rubber Market 



390 

 391 

 393 



395 

 397 

 399 



402 

 402 



381 

 3S2 

 3S2 

 3S-1 

 3S4 

 3«« 

 3SS 



39" 

 390 

 392 



3')2 

 39S 

 39S 



4(K) 



4t)o 

 400 

 401 

 401 

 401 

 4.8 

 403 

 40(1 

 407 

 409 



T_^k(iM its outset TiiK I.\i)i.\ RuBBKK WoKii) lias 

 •*■ l;ikcii a lively interest in the stibjecl of rubber 

 ]il:inliii}i^, with a view to deteniiiniiig (i ) whether the 

 more iinporlaiil rubber bearing species were susceptible 

 of cultivation, and { 2) whether trees developed by plant- 

 ing would yield satisfactorily. It was assumed that, in 

 the eveiU of these (juestions being answered in the af- 

 finn.ilive, the profit of rubber culture wc^uld be a matter 

 of cou''se. After sixteen years of devotion to the sub- 

 ject, we can point to rubber culture as a firmly estab- 

 lished fact ; ex])eriiiients with each of the leading species 

 have shown them all capaiile of being cultivated, under 

 proper conditions, and of yielding uuder culture a good 

 return of rubber of a ([tiality equal to, if not better than, 

 the produce of forest trees. 



But how about the profits? It is idle to figure out 

 how iiitich can be made from growing rubber. What is 

 the profit from growing wheat, or mining coal, or keep- 

 ing a hotel ? How much can one man make in a lifetime 

 by selling groceries? In every business, however legiti- 

 mate and profitable, there are failures as well as suc- 

 cesses ; much de])cnds on the man, and may depend 

 upon circumstances beyond his control. So with rubber. 

 l'"ortunes have been made in trading in "wild" rubber, 

 and fortunes lost in the same business. The same is 

 true of the rubber manufacture. And no matter how 

 successful .some rubber planters may l)e, some others 

 will fail. Hence no investor of a given amount of rub- 

 ber can count certainly on a given return. 



What we do know is that money is being made in 

 planting rul)ber, on estates which give every evidence of 

 continued productiveness, while the demand promi.ses to 

 be permanent and to become constantly larger. As the 

 world goes, the production of any real nece.ssity — such 

 as ru!iber is — is bound to be profitable. The chief mi.s- 

 take we have noticed in connection with this new culture 

 is that made b\- outside investors, who have been led liy 

 the results from some jiarticularly well circumstanced 

 estates to pay extravagant prices for rubber company 

 shares, and who ma\' be disappointed at the rate of divi- 

 dends. We hear that complaint has been made by 

 shareholders in one company Ijecau.se the first year's 

 divideiul \v, only 20 per cent . The return is very liberal 

 for those who hold their .shares at par ; those who 

 bought later on an inflated basis have made their own 

 price It is the same as with bank stocks and railway 

 sectirities. Thus whatever the rate of profit, the invest- 

 ing public is not likely to get a higher rate from rubber 

 thau from ordinary investments, because the price of 

 shares may be expected always to rise to a point which 

 brings the net return to the average dividend level. 



The organization of many more rubber culture com- 

 panies seems inevitable ; indeed, this interest is only in 

 its infancy. It is not too early, however, to be warned 

 against overcapitalization. 



