October i, 1902.] 



THE INDIA RUBBER ^^'ORLD 



19 



NEW VENTURE OF THE UNITED STATES RUBBER CO. 



T**HE management of the United States Rubber Co. of late 

 have devoted no little attention to the development of 

 their policy, referred to in the report of President Colt 

 read at the last annual meeting, of importing direct their 

 requirements in crude rubber. The company being larger con- 

 sumers of crude rubber than any other company in the world, it 

 was anticipated that they would be able to make exceptionally 

 advantageous terms in the purchase of raw material. While the 

 company for some time past, as stated in President Colt's report 

 [see The India Rubber World, June i, 1902, page 295], have 

 been importing crude rubber under their own letters of credit, 

 they have, as a matter of fact, made their purchases in the 

 same markets as other importers at New York and Liverpool, 

 for which reason it has been felt that the fullest possible bene- 

 fits from the new policy have not been realized. The com- 

 pany have transferred their buying in part from New York to 

 Para and Antwerp, but in the new de- 

 velopment of the crude rubber interest, 

 these centers may not continue to be 

 the primary markets for rubber. 



One matter which has been under 

 consideration has been the acquirement 

 of an interest in the Bolivian Syndi- 

 cate — the company organized to de- 

 velope the Acre concession from the 

 Bolivian government, which concession 

 some time ago brought out so spirited 

 a protest from the government of Brazil. 

 It now appears likely that, the lapse of 

 time having given an opportunity for a 

 fuller understanding of all the points 

 involved, the grant from Bolivia will 

 yet be perfected, and the original plans 

 of the concessionaires be carried out, 

 with perhaps a few modifications to re- 

 move the principal ground of protest 

 by Brazil. As a result of such a com- 

 munity of interest with the Bolivian 

 Syndicate, the United States Rubber 

 Co. would be in a position to secure 

 direct from the Bolivian territory covered by the Acre conces- 

 sion, so much of the rubber produced there as they may require 

 — andthe company's consumption of rubber of the Para grades 

 is now greater than the total present production of rubber in 

 Bolivia. 



It is understood that the United States company have under 

 consideration plans also for an important arrangement looking 

 to equally direct purchases of rubber fiom the Congo Free State, 

 instead of, as in the past, making their purchases of this class 

 of rubber at the inscription sales in Antwerp. The principal 

 production of Congo rubber, as is well known, is under control 

 of a few large trading companies, having concessions from the 

 Congo Free State, in consideration of which the state owns 

 shares — in some cases as much as 50 per cent. — of the capital 

 of these companies, so that the state is practically, if not in 

 name, a very large marketer of crude rubber. The king of the 

 Belgians is the sovereign of the Congo Free State, and by rea- 

 son of his large investments in Africa he stands in the relation 

 practically of proprietor of the state, and of its holdings of 

 company shares. While in Europe recently. President Colt 



LEOPOLD II. 



The King of the Belgians, who has been described as 



" the greatest rubber merchant in the world." 



conferred with King Leopold in regard to the rubber situation, 

 and, while the details are not yet sufficiently developed to be 

 made public, plans for securing an interest in some of the 

 Congo companies are being considered by the United States 

 Rubber Co. In case they should be perfected, there is reason to 

 suppose that, in time, cargoes of rubber direct from Boma on 

 the Congo will be arriving at New York as well as at Antwerp. 

 At the regular monthly meeting of the board of the United 

 States Rubber Co., on September 18, the question of subscrib- 

 ing to the capital stock of the Bolivian Syndicate, and of en- 

 tering into a contract to purchase such rubber as may come 

 into the hands of the Syndicate through its exploitation of the 

 Acre concession, was discussed at length, and referred to the 

 executive committee of the board, which, at a meeting on Sep- 

 tember 25, voted to accept the proposition made on behalf of 

 the Bolivian Syndicate, provided that it should be found that 

 the situation as outlined in the propo- 

 sition made by the Syndicate was as 

 represented. It is further understood 

 that, in the event that the negotiations 

 between the United States Rubber Co. 

 and the Bolivian Syndicate are con- 

 cluded, the king of the Belgians, or the 

 interests which he is commonly report- 

 ed to represent, will also become con- 

 cerned to an important extent in the 

 development of the Acre concession. 

 A special meeting of the board of the 

 United States Rubber Co. will be held 

 shortly to confirm the action of the ex- 

 ecutive committee. 



The Acre concession has been refer- 

 red to at length in several issues of 

 The India Rubber World, and on 

 April I, 1902 [page 223J, appeared a 

 map of the districts covered by it. The 

 concession is in two parts, in fact, cov- 

 ered by contracts between the govern- 

 ment of Bolivia, on the one hand, and 

 Sir Martin Conway, of London, and 

 Mr. F. W. Whitridge, of the law firm of Carey & Whitridge, 

 No. 59 Wall street. New York, respectively, on the other. To 

 cover the preliminary proceedings in connection with this 

 concession, The Bolivian Co. has been incorporated under the 

 laws of West Virginia. It is now proposed to perfect the or- 

 ganization by forming a company with $5,000,000 capital, the 

 proportion of which to be taken by the LInited States Rubber 

 Co. is not yet stated. With respect to the Caupolican district 

 [see the map above referred to] the Bolivian Syndicate will 

 exploit rubber and other products of the country in the same 

 way that concessions of lands in Bolivia are ordinarily worked, 

 collecting the products through its own employ6s and market- 

 ing them. With regard to the larger district, however — the 

 Acre territory — the Syndicate will act in an administrative ca- 

 pacity, granting concessions in placeof the government, collect- 

 ing the revenue due the state, promoting works of public 

 improvement, and undertaking to preserve order throughout 

 the district. Existing concessions from the government and 

 vested rights of whatever nature are to be respected. The 

 Syndicate will be, however, in a position to acquire rubber. 



