490 



THE INDIA RUBBER WORLD 



[September 1, 1911. 



tiun. Whether this could best be accomplished by the manufac- 

 turers oi rubber joining the New York Produce Exchange, or 

 whether it would be more advantageous to them to form a 

 separate and distinct organization for this purpose, is a question 

 that, to my mind, needs very careful consideration before any 

 decision is rendered, but that something should be done to give 

 the consumers of crude rubber a more comprehensive view of the 

 situation, is imperative. 



To that end, I think, it would be advisable for the manufac- 

 turers to hold a meeting and have the matter clearly presented to 

 them, so that each one individually could take the matter under 

 consideration and render his decision, after mature consideration. 



Yours very truly, 



Jos. O. Stokes, 

 President, Thermoid Rubber Co., Trenton, N. J. 



WOtTLD FACILITATE SPECTTLATION. 



We beg to acknowledge the receipt of your favor in refer- 

 ence to listing crude rubber on the New York Produce Exchange. 



In reply to your request that we give you our ideas on this 

 plan, would say that we are opposed to listing crude rubber on 

 any Exchange in New York, as we believe it would facilitate 

 speculation, and all manufacturers are now suffering severely 

 from too much speculation in crude rubber. 



We would prefer not to have our views published, but are 

 willing to express them to anyone making inquiries. 



From a Large Manufacturer of Insul.\ted Wire. 



MARKET DIFFICUXT TO CREATE. 



Replying to yours as to listing crude rubber on the New York 

 Produce E.xchange, will say that, as a buyer of rubber, naturally 

 I would be very glad to see a market for it in this city, but 

 having had considerable experience on the exchanges in Wall 

 Street, I realize how hard it is to create a new market for any 

 material. It requires great perseverance and tact. 



Should the plan prove successful, one great advantage would 

 accrue to the small buyer, viz : he would have an opportunity to 

 know the market price for the various grades of rubber in 

 Brazil and abroad, as doubtless official telegraphic quotations 

 would be kept in this city. As you know, at the present time 

 only the very large buyers are in touch by cable with the 

 rubber markets of the world. 



R. E. Gallaher, 

 New York Insulated Wire Co., New York. 



DEPENDS UPON EFEECT. 



I have your letter and, responding, have to say that I have 

 given the subject no thought, and am not prepared at the moment 

 to give an opinion as to the wisdom of opening a rubber 

 exchange. 



If such action would give stability to the market and minimize 

 fl«ctuations in prices, I would be inclined to treat the matter 

 favorably, but if its intent would be to stimulate speculation I 

 would be opposed to it. Very respectfully, 



F. A. Seiberling, 



President, The Goodyear Tire & Rubber Co., Akron, Ohio. 



PRESENT UEXHODS SATISFACTORY. 



Yours on the subject of listing crude rubber on the New York 

 Produce Exchange received and noted. I really do not feel 

 that I know enough about this matter to give an intelligent 

 opinion for public or private circulation. As far as I can see 

 the present methods of marketing crude rubber work out pretty 

 satisfactorily, and I don't see what would be gained by a change 

 of this sort. 



A. F. TOWNSEND, 



President, Manhattan Rubber Mfg. Co., New York, N. Y. 



WOULD STOP LONDON HANIPTJLATION. 



In reply to yours relative to a proposed plan to list crude 

 rubber on the New York Produce Exchange, generally speaking, 

 I think the move would be a good one, although in our particular 

 line the consumption of rubber is not great, and for this reason 

 think that our ideas should not be seriously considered or given 

 any publicitj-. There might be an objection to listing rubber on 

 account of the general information it will give the buying public, 

 which information will create a tendency upon the part of the 

 buyer to demand revised prices every time there is a drop of a 

 cent or two in the price of crude. On the other hand, this can- 

 not be a real objection for the reason that for many months 

 past the rubber game has been given wide publicity by the press, 

 and in many instances statements were made that were more 

 injurious to the manufacturer than a true report of actual con- 

 ditions. 



In favor of listing rubber are two conditions that I believe the 

 listing would have a tendency to overcome. The one is that at 

 the present time the prices on crude .are made in London, and 

 the American manufacturer is a victim to a greater or less extent 

 of the gambling tendencies of the London manipulators ; the 

 other, that the average manufacturer, especially the little fellow, 

 who is not in direct touch with the market through a disin- 

 terested channel, must depend more or less on information fur- 

 nished by the brokers, and this information is usually in keep- 

 ing with the broker's ideas, or, rather, biased by his own position 

 and the way he is "hooked up" with the market. I believe the 

 time will come if the .American manufacturer is placed in posi- 

 tion to own his raw materials on as favorable a basis as his 

 European competitors, and can secure facilities for transporting 

 his merchandise and conducting his banking equal to the facilities 

 they now enjoy, that Mr. American Rubber Manufacturer will 

 secure at least his share of the world's rubber business, especially 

 in Central and South America and the Far East. 



From an Important Rubber Sundries Manufacturer. 



will welcome any change. 



Answering your inquiry as to the advisability from a manu- 

 facturer's standpoint of listing rubber on an exchange : 



Rubber makes a good football and is peculiarly subject to 

 acceleration upon the impact of a good strong kick. To see it 

 go, when it moves in the right direction, is a joy to the big as 

 well as to the small boy. The sport is a good one, but somehow 

 it loses its zest to the manufacturer when he realizes that rubber, 

 the basis of his business, has been converted into a speculative 

 football, to which the necessities of his business compel him to 

 cling for some three hundred and odd days in a year. He soon 

 begins to realize in his own person somewhat of the punishment 

 that the ball has to take. 



I wish, therefore, to say that I deplore the rapid, violent and 

 e.xtreme fluctuations which have occurred in recent years in the 

 price of rubber. I believe it to be detrimental to the interests of 

 the individual manufacturer, the industry, the trade and the 

 public. I shall welcome any change that will place the basis of 

 our industry upon a more decent, stable and legitimate basis. 



If listing on an e.xchange has for its purpose the correction of 

 excessive speculation and is in the interest of legitimate business, 

 I would be most happy to have it done, but if, on the other hand, 

 its hidden purpose is to facilitate speculation, I hope it will not 

 be done. 



I realize that in this communication I have not given you a 

 direct answer to a direct question, but to do so intelligently 

 would entail a study of conditions which I have neither, the time, 

 experience nor qualifications to undertake. 



Unless these fluctqations in the price of .rubber ar# x?ontrolled 

 within reasonable limits the time will -come wheii - the old- 



