80 



THE INDIA RUBBER WORLD 



[Decembkr 1, 1910. 



A SAMPLE OF FRENCH PROMOTING. 



FROM THE "JOURNAL DES B.\S"QL"1ERS," PARIS. 



T IF-RK is a grand undertaking: the Societe des Manufactures 

 ^ ^ Francaises de Chaussures en Caoutchouc. [French Com- 

 pany for the Manufacture of Rubber Shoes.] 



When I say that this is a grand business, it is because I have 

 just read the prospectus of the smart Englishmen who have 

 launched it ; and as this prospectus is replete with enthusiasm, I 

 follow the movement. But, as a matter of fact. I have no idea 

 as to the future of rubber shoes in our beautiful France, and 

 therein lies the question. 



It would possibly be advisable to address an inquiry to all 

 mothers of families to learn their opinion on this point. Pos- 

 sibly a parliamentary commission could be created, only framed 

 by a crowd of ignorant and blatant officials. This last method 

 of obtaining information has the advantage of costing much 

 more than all the others, and of never amounting to anything. 



Let us institute this inquiry among ourselves — who will use 

 rubber shoes in our land of France? To whom would the 

 rubber footwear be of use? Outside of the old waterproofs 

 that cover the entire footwear against rain or snow, we have 

 no other models in common use than the shoes of cloth and 

 rubber, or leather and rubber, used for sporting purposes and 

 on the shore ; and these shoes are charged with being disagree- 

 able to wear. 



For some years, it is true, efforts have been mdde, and with 

 a certain degree of success, to introduce in France a rubber foot- 

 gear part shoe, part bootlet. Miay we conclude from this cursory 

 observation, that there is among us, a certain demand for rubber 

 footwear, although our customs, our climate, and possibly, above 

 this, the instinctive taste of our people, will never adopt this 

 footwear as a practical model for common use. We must go to 

 America, and to regions less favored by nature, like the Scandi- 

 navian countries and Russia, to find daily and rational use for 

 rubber shoes. 



Nevertheless, France, it appears, is indebted to foreign coun- 

 tries for a large proportion of its requirements in this specialty. 

 There are manufactured at home but 3,000.000 pairs of rubber 

 shoes annually, out of 7.000,000 that are sold. Only three fac- 

 tories manufacture this article, the Establisscments Hutchin- 

 son, the Etablissements Torrilhon, and the Societe industrielles 

 des Telephones. Hutchinson alone sells nearly 2.500,000 pairs 

 annually. And yet, if we are to believe the promoters of the 

 new company, the productions of these various establishments 

 are very inferior to the American and Russian products. In 

 America, the two most important factories making a specialty 

 of these goods, produce 35.000,000 pairs annually. In Russia, 

 the manufacturers turn out annually 24.000,000 pairs, and these 

 do not suffice to supply the home consumption. 



The Societe des Manufactures Francaises de Chaussures en 

 Caoutchouc, maintains, that if France has not as yet been suc- 

 cessful in this special industry, it is because the technical knowl- 

 ed.ge was not possessed by the actual producers ; there arc, in the 

 manufacture of rubber shoes, two delicate operations, vulcaniza- 

 tion and varnishing. The new factory employs an ingenious 

 and direct method of vulcanizing and varnishing. And its 

 fortunate shareholders will make a large amount. 



The Societfi also profits by the customs duties, which amount, 

 on each pair of rubber shoes imported into France, to about 

 90 centimes (80 to 120 francs per 100 kilos according to quality 

 and 120 francs per 100 kilos for the American product). On 

 the whole, adding the protective duty to the manufacturing 

 profit, the new company expects to make a profit of 1.50 francs 

 [== 29 cents] net on each pair sold. 



With these data, and reckoning 5,000 pairs per day, the profits 

 would be 2,250.000 francs. And, as the capital of the Societe is 

 only 3.000,000 francs, in shares of 100 francs, it follows that the 

 shareholders will receive at least 40 per cent, in dividends tlu- 



first year, allowing the foun<krs their statutory 30 per cent., and 

 for other expenses, legal advice, amortissement and personnel, 

 each a sum of 10 per cent. Tlie Societe announces that it will 

 establish its factory at Mauld-Montagne (Nord) and that its 

 total output for the first year is already sold under contract. It 

 must not be overlooked that the factory has not yet been 

 constructed. 



From the financial point of view, of the capital of 3,000.000 

 francs, there will be 2,200,000 francs of floating funds, of which 

 1,300,000 will be for the construction of the factory and 900,000 

 for the expenses of organization. 



In conclusion, while this enterprise presents features suffi- 

 ciently attractive for specialists, it is presented by its promoters 

 with an optimism that appears quite extravagant. And w-e fear 

 still more the bluff that if, according to the foregoing published 

 figures, the profits should be 41/2 millions the second year, it is 

 stated that the returns on the business would be at least 300 

 francs [100 per cent.] per year. Imprudent presumption, all 

 else being useless. 



THE AMAZON RUBBER PROSPECT. 



["TIMES OK OEVLON" LONDON CORRESPONDENT.] 



CO^IE time ago a friend of mine went to Brazil and promised 

 •^ to let me hear from him what he could gather about prob- 

 able supplies of rubber in the near future. Though other matters 

 took him there he is a large shareholder in plantation compa- 

 nies and a man of excellent business capacity, so that I attach 

 great importance to his views. By last mail I heard from him, 

 and this is w-hat he says : 



"I promised to tell you the result of my inquiries as to the 

 probable crop of rubber in the Amazon valley next season. I 

 have met several men from Para and Manaos who know the 

 rubber trade — one of them actively engaged in it — and the con- 

 clusion I have come to is that there cannot be any large increase 

 next season. A very large amount of the financing of the expedi- 

 tions is done through the Bank, and I hear from them 



that nothing more than usual has been done so far, and this is 

 about the time when preparations are made. 



"From the seringueiro (rubber shipper) I had a talk with I 

 gather (i) that labor is scarcer than usual owing to the good 

 wages being paid by the Para harbor works and the Manaos 

 city improvements; (2) that even if labor could be obtained by 

 paying higher wages for larger expeditions the effect would not 

 be great next season, as it takes time to open up new estradas 

 (or paths) required to reach the trees, and (3) that all the prop- 

 erties within easy reach of transport are already worked for all 

 they are worth. 



"It looks, therefore, as if there were not much likelihood of 

 the market being swamped by largely increased supplies from 

 Para, though no doubt the price may lead to extra exertions. 

 I think if you put the possible increase at 10 per cent, it is the 

 outside that could be achieved. If then the price of rubber is 

 likely to be maintained for another year or till the end of this 

 year even about 10 shillings per pound (which seems not im- 

 probable) it seems to me that the present price of shares in the 

 larger producing companies is not too high and is likely to be 

 maintained even though >there may be fluctuations due to 

 speculation." 



I think you will agree that this is a very valuable opinion 

 coming from one on the spot who has exceptional opportunities 

 of getting the best information. Of course, it may be said that a 

 large amount of capital has been put this year into new proposi- 

 tions in South America, but it is significant that the writer does 

 not think this factor worthy of mention, and he would probably 

 say that even if these new companies will eventually add sub- 

 stantially to the world's supply it will take them longer than they 

 anticipate to get their affairs into working order. 



