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THE INDIA RUBBER WORLD 



[August i, 1909. 



dirticult indeed to find any one not convinced that it would be 

 simply impossible to maintain former prices for rubber goods. 

 An advance in prices is unavoidable, whether it be the result of 

 joint action on the part of the manufacturers, or whetlier manu- 

 facturers raise their quotations as far as necessary, according to 

 their individual position, and the sooner such an advance is car- 

 ried into effect, the better will it safeguard the manufacturers 

 against loss. 



Our industry has once before found itself in the same position, 

 during a similar advance of the market which occurred a few 

 years ago. At that time the manufacturers met prevailing con- 

 ditions by advancing their prices thrice, each time by 10 per cent, 

 in accordance wifli the continued advance in the rubber market. 

 The present situation, however, is more serious. This time the 

 advance was more rapid and abrupt than a few years past, and 

 especially the medium grades, to which manufacturers were wont 

 to have recourse to a certain extent at least, were much more 

 rapidly affected by the present advance. There is at present no 

 possibility of avoiding the issue, and crude rubber, including even 

 the inferior grades, must now be purchased at an advance of 

 from 40 per cent, to 60 per cent, above last year's prices. 



This enormous increase in the cost of the most important crude 

 material within one year, is made still more serious by unfavor- 

 able general business conditions which make it difficult for manu- 

 facturers to find an outlet for their products both at home and 

 through e.xport channels. But notwithstanding prevailing con- 

 ditions, or rather in consequence of the same, it has now become 

 necessary to take, with the greatest determination, the step which 

 alone can safeguard the rubber goods manufacturers against 

 heavy losses, and the trade against serious injury. The prices 

 of rubber goods of every description must be materially advanced! 

 They must be advanced sufficiently to maintain established stand- 

 ards of quality and to make it possible to do business with a 

 margin of profit. The contentions which will result from the 

 taking of this necessary step — and they will most certainly occur 

 — are an unavoidable feature in the strife to insure the future of 

 our industry under wholesome conditions. No one can avoid 

 them, because the conditions of the market compels every one 

 to take action. 



CEYLON RUBBER SALE CONTRACTS. 



'T'HE sale of rubber ahead under contract by a number of Ceylon 



1 



plantation companies for the current year [see The India 



Rubber WoruJ, May i, 1909 — page 275] has proved so satisfactory 

 that several of the companies are reported to have concluded 

 similar arrangements for 1910. These contracts provide for the 

 delivery to Colombo merchants at 3.70 rupees [= $1.20 gold] 

 per pound, for fine rubber. Two contracts specify 3.60 rupees 

 [= $1.16.8 gold] for second grade. No contract is mentioned as 

 specifying scrap. This rubber remains to be marketed, and the 

 price to be paid eventually by the consumer includes the Colombo 

 merchant's profit, cost of transportation, and selling expenses in 

 London or New York. The fact that Colombo merchants are 

 willing to contract to pay $1.20 for deliveries up to February 31, 

 181 1, is an indication of a firm confidence in continued high 

 prices for rubber. 



Grand Central Ceylon Rubber Co., Limited, whose existing 

 contract at 3.70 rupees calls for 60,000 pounds this year, specify 

 up to 112,000 pounds of No. I crepe next year at the same price, 

 and 20,000 pounds No. 2 crepe at 3.60 rupees [= $1.16.8], delivery 

 between July i, 1909, and January 31, 1910. 



The Seremban Estate Rubber Co., whose contract for this 

 year covered an estimated production of 120,000 pounds, specify 

 in their contract for next year 180,000 pounds. Their contract 

 runs to December 31, 1910. Pallagodda estate ['Kalutara Co., 

 Limited] specify 40.000 pounds next year as against 30,000 this 

 year, and Ribu Rubber Co., Limited, 40,000 pounds against 20,000. 



The Udabage Tea and Rubber Co., who expect to produce 3,000 



pounds of first class rubber during the latter half of this year 

 have contracted to sell at 4.05 rupees [= $1.31.4 gold per pound], 

 while they have contracted to supply up to 12,000 pounds next 

 year at $1.20. 



Current prices for rubber at Colombo are materially higher 

 than mentioned in the contract agreements. .\ considerable quan- 

 tity was sold for the Kalutara Rubber Co., Limited, on June 3, 

 at 4 rupees [= $1.29.8 per pound] — the highest price toHched 

 locally for a long time. The Ceylun Observer of June 10 re- 

 ported : "The price of rubber locally has advanced steadily and 

 sales of best quality at 4.15 rupees [= $1.34.6] are now reported. 

 There is also a great demand for 1910 crops at 3.70 rupees (from 

 America, a large part of it) ; so the manufacturers' anticipation 

 evidently is that rubber prices are to be fairly well maintained 

 for a good many months to come." The highest price ever ob- 

 tained for plantation rubber in Colombo was 5.17 rupees 

 [=: $1.67.7] ; hut that was a "fancy" price for a small sample lot, 

 and not an ordinary commercial sale. The high water mark of 

 the Colombo market in 1907 was 3.80 rupees [= $1.24] per pound, 

 and in 1908 3.90 rupees [= $1.26.5] per pound. 



A plantation manager in Malaya, interviewed by The Ceylon 

 Obserz'er, does not anticipate a very great increase in plantation 

 rubber production before 1914, though of course there will be the 

 yearly increase, "but in that year the advance in the supply is 

 likely to come in the shape of a burst. It need not, however, 

 necessarily send the prices down with a rush, because on that 

 we hope that the consumption will have largely increased while 

 the supply of wild rubber will probably not have increased to 

 anything approaching the same extent," 



"WHAT BECOMES OF THE RUBBERS?" 



T^HIS question was discussed incidentally by the "Lasterville 

 ^ Boot and Shoe Club," as reported exclusively for the Boot 

 and Shoe Recorder. Mr. Willie Fitem, having gained the floor, 

 said : 



"What becomes of the rubbers? 



"Ten per cent of 'em are worn out by tight wads that come 

 in only when their rubbers get to be cisterns, they have wet feet, 

 and after you have sold them they insist on having the old ones 

 done up 'for use when it isn't wet,' instead of contributing them 

 to the clerks' old rubber box. 



"Ten per cent are lost. Left at the social. Exchanged with a 

 fellow who got out earlier and had first pick at the banquet. 

 Stuck in the mud while running for the car, and the like. 



"Ten per cent are placed on a hot stove by the w-earer and de- 

 stroyed. I mean, placed there while wearer is warming feet. 



"Ten per cent are bought too small, or worn over shoes larger 

 than those over which they were fitted, and the toe of the shoes 

 projecting over the sole of the rubber wears a hole quickly, or 

 the shoes being too wide makes the sharp edge of the leather shoe 

 stretch the side of the rubber out over the sole and thus cut it 

 out, or a flat shoe is put in a French heel rubber, won't go to the 

 bottom, makes a sort of accordion of the rubber heel and 

 quickly wears it out. 



"Ten per cent are loaned to somebody who is calling and are 

 never brought back, and 60 per cent, are put away in a dark 

 closet where owner can't find them, are overlooked, forgotten, 

 and when they are dragged out a year or so later are spoiled by 

 rubber decay. 



"Ten per cent are — " 



The Chair. — Hold on, Willie, you've got no per cent now. 



Willie. — All right then, I'll quit. I must have got mixed up on 

 my additions, I — • 



Exports of india-rubber from Ciudad Bolivar, Venezuela, do 

 not increase. They amounted to 258,404 kilograms in 1906 and 

 only 179.234 in 1907. 



