October 1, 1920.1 



THE INDIA RUBBER WORLD 



-■'3 



price of tires. As the various reductions that were made in the 

 past have invariably le<l lo a general disorganization of the 

 market, the tire manufacturers decided to bring German tire 

 prices down to the level of the world's markets and thereby avoid 

 the necessity of further reductions in the near future. 



THE TRANSPORTATION STRIKE 



The rubber industry has suffered together with other industries 

 from the transportation strike which was started with a view 

 to prevent the shipment of military material to the Poles by way 

 of Germany. The strike has spread all over Germany and has 

 compelled the postponement of the merchandise fair in Kocnigs- 

 berg, Prussia, which was scheduled for the middle of August. 

 This will be held at the end of September provided the transport 

 strike is settled by then. The strike has caused considerable loss 

 to many rubber manufacturers who have not been able to make 

 shipments of goods, the delay and declining prices constituting an 

 inducement for the dealer to cancel his orders. 



PRICE REDUCTIONS 



The general strike of the consumer which has been employed 

 as a weapon to bring down the cost of living all over Germany 

 has been most effective, being supported by the increased value 

 of the mark which has given the purchaser better value for his 

 money. While the rubber industry is still comparatively busy 

 there are signs of a general decline in the size of the orders and 

 manufacturers see great difficulties ahead to keep their factories 

 going. Some branches of the industry are still working with 

 full time, especially the jar ring manufacturers and those making 

 goods for the electrical industry. To bring the consumer again 

 in the market a reduction of prices has been made by various 

 branches of the industry. The tire prices have been reduced 

 as reported elsewhere in this article and now the hemp 

 hose manufacturers have followed suit. The new reduction 

 brings the cost of this article to a level where it can withstand 

 the competition of the rubber hose which had seriously en- 

 croached upon the hemp hose field. 



THE LUXURY TAX 



The lu.xury ta.x is affecting the rubber industry as various 

 articles are subjected to this tax. Pneumatic tires, tire covers and 

 inner tubes for the use of private automobiles are subject to the 

 tax, while tires for airplanes, motorcycles, and bicycles are free 

 from taxation. .\n exception is made for tires which are used 

 for racing cycles, exhibition cycles and covers and inner tubes 

 executed in colors. Bathing caps, sponge bags, tobacco bags, 

 rubber mats, impregnated cloth, are subject to ta.xation if made 

 entirely or partly of rubber. Fountain pens are free of taxation 

 if for ordinary use. Ornamented fountain pens and those with 

 gold nibs are taxed. The tax is supposed to be applied without 

 giving special trouble to the taxpayer, and the keeping of or- 

 dinary books is regarded as sufficient evidence for the purpose. 

 TEASE NOTES 



The Hamburg rubber market which has been very active dur- 

 ing the last few weeks is suffering severely from the irregularity 

 of the exchange values of the mark. When the mark falls in 

 value, up goes the price of rubber; if it should increase, down 

 go rubber prices. As the price differences are spmetimes as 

 much as 15 per cent from one week to the other it may easily be 

 understood that rubber importers are not bedded upon roses and 

 the desire is expressed for an early rectification of the German 

 exchanges. All prices are quoted practically upon the basis of 

 immediate payment and delivery of tlie goods to the buyer. 



The Leipziger Gummiwarcn Fabrik, formerly Julius Marx, 

 Heine & Co., has distributed a 6 per cent dividend as the result 

 ■»( last j'ear's trading. The annual report states that the factory 

 ■vas busy during the largest part of the year, and there was suf- 

 ficient raw material available but the coal supplies were insuffi- 

 :ient. The export demand has been satisfactory. The directors 

 exnect an improvement during the present year. 



THE RUBBER TRADE IN SCANDINAVIA AND 

 DENMARK 



By a Sfcfidl t tirrcsfonident 



THE RuisnER i.NiirsTRV in .Sweden, Dciiniark. and Norway has 

 been very active all through the war and many new lac- 

 tones were added to those already in existence. With few ex- 

 ceptions the rubber industry of northern Europe is mostly car- 

 ried on in comparatively small establishments. The necessities 

 of the war and the complete separation from the usual sources 

 of supplies, however, have forced considerable expansion of the 

 existing plants, with the result that the industry has added largely 

 to its productive capacity. Both foreign and domestic capital are 

 employed in these factories. .'Mthough foreign competition has 

 increased since the coming of peace the domestic factories find 

 it comparatively easy to hold their own against imports, especially 

 since the market was practically stripped of many articles when 

 peace was declared. This was due less lo the lack of manufac- 

 turing facilities than to the difficulty of obtaining raw materials, 

 including coal. Sufficient rubber was obtainable during 1919 

 and the factories succeeded in covering their requirements even in 

 excess of their immediate needs, leading in some cases to re- 

 ductions in this year's orders. 



The first half of the present year shows, for instance, a decline 

 in the imports of raw rubber into Denmark from 367 tons to 

 273 tons. An increase is reported in the import of most other 

 articles. So the import of pneumatic covers rose from 451 tons 

 to 959 tons ; 71 tons of rubber shoes were imported against 40 

 tons during the first six months of 1919. General all-rubber 

 goods show an increase from 92 tons to 139 tons. 



.\merican rubber goods are now in evidence in all three coun- 

 tries, American tires especially being in demand. German rub- 

 ber goods are being sold again ; but not in the same volume as 

 before the war. 



The firm of H. Asfrup & Co., in Christiania, Denmark, has 

 been sold to a corporation and will be continued under the same 

 name. This firm was formed during the year 1914 to deal in auto- 

 mobile tires and other rubber goods. 



The Amerikanska Gummiaktiebolaget, dealer in rubber goods, 

 has increased its capital to 8(K).(XX) kroner. 



Swedish rubber manufacturers are rejoicing over the discon- 

 tinuation of the private postal stamps used until now by govern- 

 ment offices for franking governmental mail. It appears that in 

 the future postal stamps will be replaced by an imprint of the 

 various offices, made with a rubber stamp. This should bring 

 many new orders lo the Swedish rubber stamp manufacturers. 



FOREIGN TARIFFS 



CANADA 



AN .\CT to amend the special war revenue act, 1915, passed 

 June 30. 1920, includes a tax on wholesalers of 1 per cent on 

 all parts sold for repairs of automobiles, accessories, tires or 

 repair |)arts, etc.. purchased from Canadian manufacturers or 

 from importers and sold to the ultimate consumer or sululealcr 

 or garage. 



ARGENTINA 



.\ new Argentine tariff law (No. 11022) was promulgated by 

 executive decree on July 6 and went into effect on July 7, 1920. 

 This law provides for important changes in Law No. 49.S3 and 

 its supplements, the most important being that included under 

 article 4, which increases by 20 per cent the old official valua- 

 tions (appraisements), the rates of duty remaining the same. 

 This horizontal increase, which is equivalent to an increase of 

 20 per cent in duty, docs not apply to the articles included in 

 the table below, for which higher increases are specified. Ir» 

 the case of articles for which no appraisement or official valua- 



