274 



THE INDIA RUBBEP WORLD 



[June i, 1902. 



in the East, become productive at an earlier age than in 

 the Amazon valley ; again, it is stated that, while in the 

 Amazon forests the seed pods of the Hevea uniformly con 

 tain three seeds, the number is irregular on the trees in the 

 Malay States, and there are other indications of a tendency 

 to "sport." It is possible that, under cultivation, the tree 

 might in time develop different characteristics even in 

 Brazil, where thus far it has existed only under natural 

 forest conditions. Ultimately new species of Hevea may 

 exist, as a result of change of soil and climate, and of 

 transfer from forests to plantations. 



We have already expressed our opinion of samples of 

 the cultivated rubber from the Malay States, which, while 

 attractive in appearance, do not really resemble the fine 

 Para rubber now in use. It is much softer than the Bra- 

 zilian product, and of much shorter " fiber." It could not 

 be used, for example, in thread, elastic bands, or any fine 

 pure gum goods. In solution it quickly loses its tenacity, 

 so that it would not do for high grade cements. And it 

 readily softens with age. Perhaps some of these defects 

 might be removed by the introduction in the East of the 

 methods of coagulation employed in the Amazon rubber 

 camps, but we are disposed to believe that the Eastern 

 planters have really produced a new grade of rubber, and 

 that the Para article can never be wholly duplicated by 

 them. It is to be understood, of course, that the rubber is 

 valuable, and will find a ready market at a price which is 

 likely to yield a profit, but such samples as have reached 

 us, valued from the manufacturer's standpoint, would rank 

 at least 25 per cent, below fine Pari. 



The good prices realized in London, doubtless, have 

 been due to the cleanly appearance of the new rubber 

 And they have been based on the judgment of brokers 

 rather than results of practical tests in the factory. It 

 would seem that the better course for the planters' 

 associations would be, not to try to find how much money 

 can be obtained in the open markets for their sample lots 

 — which then become lost to sight — but to send them di- 

 rect to a well equipped factory, to be made up in various 

 forms of goods. The manufacturers' test is the one by 

 which the value of this rubber will be judged finally, re- 

 gardless of what may be the judgment of brokers to-day. 

 We do not mean to dampen the enthusiasm of the plant- 

 ers, but there is such a thing as basing their plans upon 

 estimates of profits that are impossible. 



THE UNITED STATES RUBBER CO. 



"■ I " HE latest report of this company is of interest as re- 

 *• vealing the condition of one of the earliest large 

 industrial consolidations formed in the United States, after 

 an existence of ten years. It is especially interesting be- 

 cause for the first time it appears not to have been pre- 

 pared with a view to concealing information. 



In view of the frequent suggestion that industrial cor- 

 porations should be required bylaw to give more publicity 

 to the details of their operation and financial condition, it 

 may be said that while the treasurer's report of the United 

 States Rubber Co. this year is much fuller than usual, it is 



difficult to see how the public, or even a stockholder not 

 intimately acquainted with the rubber industry, can gain 

 from it much information that would be of value to the 

 investor in the securities of the company. Then there is a 

 difficulty in the way of compelling the publication of such 

 detailed statements of a manufacturing corporation as is 

 required by law, for instance from banks and insurance 

 companies. The object of state regulation of such institu- 

 tions as these is to reveal the degree of their solvency. If 

 an insurance company is required to make a statement of 

 its holdings of securities, any person conversant with such 

 matters can judge of the value of the securities named. 

 But the general public could hardly form a judgment of the 

 value of the "investments" of the United States Rubber 

 Co., even if a detailed list were published, since these re- 

 late to the capital stock of subsidiary manufacturing com- 

 panies, whose actual condition is liable to change from 

 year to year. And it would be difficult to draw a line be- 

 tween those companies which should and those which 

 should not be required to reveal the details of their business 

 operation. The United States Rubber Co. is incorporated 

 under the same laws under which some of its subsidiary 

 companies were incorporated, and the mere fact that it is 

 larger than any one of these is not in itself a sufficient rea- 

 son for compelbng its books to be opened to the public. 



It might be suggested that any company offering its 

 shares to the public should be required to publish some 

 certain form of statement for the benefit of purchasers of 

 the shares. But this would be of little account if, after a 

 complete statement was furnished, only an expert in that 

 branch of industry could understand it. Under the laws 

 of Massachusetts every industrial corporation in that state 

 is required to file annually a statement of its condition 

 with the commissioner of corporations. But these state- 

 ments, however fully they may comply with the require- 

 ments of the law, would hardly be accepted by any pru- 

 dent business man as a guide to making investments in 

 the shares of these companies. The fact is, that the 

 public is not obliged to purchase the shares of any indus- 

 trial corporation, and its best guide, after all, is not any 

 particular published statement, but the character of the 

 individuals entrusted with the management of a given 

 company, together with some intelligent understanding of 

 the nature and conditions of the business in which the 

 corporation is engaged. 



The United States Rubber Co. has far from realized all 

 the advantages hoped for through bringing the greater part 

 of the rubber shoe industry under a single control. The 

 enterprise was to a certain extent experimental, seeing 

 that it was practically first in the field of great industrial 

 organizations of this type, and undoubtedly difficulties 

 have been encountered which were not, and probably could 

 not have been, foreseen. It is possible, too, that mistakes 

 in management have been made which the company will 

 be able in future to avoid. From the standpoint of the 

 shareholders, it is an encouraging condition that the man- 

 agers appear to have adopted a policy of caution, of re- 

 ducing their book valuation of assets, of selling products 

 at a price which, as far as possible, will discourage compe- 



