May 1, 1921 



THE INDIA RUBBER WORLD 



613 



millimeters in diameter, 2.50 bolivars per kilo) ; having a duty, 

 respectively, of 2.50 and 1.25 bolivars per kilo. 



The third resolution provides for new classifications and duties 

 on canvas hose, rubber hose covered with cloth or bound with 

 wire at 75-bolivar per kilo. 



CHILE 



In the April issue readers were advised tliat it was proposed 

 that tires should be exempted from an increase in custom tariff 

 rates. Tlie law of February 23, 1921, exempts rubber tires for 

 automobiles, both solid and pneumatic, from increase in import 

 duty. 



METHOD OF ESTIMATING DUTY ON PENS IN CHILE 

 Tile point is removed from one fountain pen when a ship- 

 ment is received in Antofagasta, Chile, weighed separately 

 and the weight of the entire shipment is calculated from that 

 one point. On repeat shipments where the weight of the 

 pen point is on file, this is not necessary, and reduces the 

 liability to damage incurred by the removal of points. If the 

 point were not removed the whole pen would be weighed 

 and duty assessed on the entire pen at the rate leviable on 

 the gold point. When separated, the stocks are dutiable at 

 the rate for manufacturers of rubber, 2.50 pesos per kilo, or 

 about 41 cents per pound, while the points are dutiable at 

 the rate of 0.10 peso per gram, or $16.56 per pound. 



STATUS OF THE BERGOUGNAN COMPANIES 



The "slack-off" in the motor trade has had its effect on the 

 French tire manufacturers, no less than their British and American 

 competitors, and all have had to fit themselves to circumstances. 

 A considerable reduction of output has been arranged by the 

 Bergougnan Co., of Clermont-Ferrand, which will continue until 

 business resumes the normal. Varying activity is reported from 

 the firm's subsidiary branches. The Italian branch, whose factory 

 was seized by the workmen and run for a time on "Soviet" prin- 

 ciples, passed through a period of chaos and two months' subse- 

 quent idleness. It is now back in the hands of the company, but 

 the loss sustained is estimated at 20,000,000 francs. 



The Belgian company, which was formed in the early part oi 

 1920, has not yet commenced production. However, it is expected 

 to start working within the next few months. The capital, which 

 is eventually to be 20 millions of francs (half of which provided 

 by the Empain group of chemical companies), has had only four 

 millions subscribed up to the present. 



The American branch at Trenton. New Jersey, is operating on 

 a very much restricted scale and is considerably inconvenienced by 

 the general crisis in trade, the lower sale prices and the high rate 

 of American exchange. 



A resumption of export sales activity by the Moscow branch is 

 anticipated shortly. The factory has not suffered during the 

 troubles, but entirely free trading relations have not yet been 

 established. 



In regard to the parent company, its accounts as of September 

 30, 1920, show total assets of 54,000,000 francs, with liabilities 

 39,000,000 francs. The general meeting of December 11, 1920, 

 decided to pay a dividend of 60 francs per share, which amounted 

 to nearly 11,000,000 francs. — The India Rubber Journal, London. 



BURMA'S RUBBER TRADE 

 The rubber export trade of Burma is constantly growing. 

 Although the total quantity exported in 1919-20, 4,924,000 

 pounds, increased 18 per cent over the shipments of the pre- 

 vious year, 4,149.000 pounds, the value declined. The bulk 

 of this product went to the United Kingdom in 1919-20. Bur- 

 ma's trade with the United States included raw rubber to the 

 value of $46,623 and $13,660 in the fiscal years 1918 and 1919. 

 respectively. Imports of rubber goods from the United 

 States were $18,538 in 1918; $11,292 in 1919 and $25,398 in 1920. 



THE RUBBER TRADE IN THE FAR EAST 



By Our Regular Correspondent 



MALAYA 



THE QUESTION of further reduction of output to 50 per cent is 

 occupying planters' minds at present. While many hope the 

 plan will go through, not a few think that nothing will come 

 of it. Many small holdings have been forced to shut down and 

 others have had to restrict output by one-half without waiting 

 lor legislation. Recent statistics show that receipts of native- 

 grown rubber at Singapore have fallen by 60 per cent. So far 

 only one European-owned estate has stopped tapping altogether, 

 although reports indicate that others feel the need of such 

 measures. 



Opinion concerning the 50 i)er cent reduction is divided. Many 

 who oppose it do so from the idea that such restriction would 

 doiilile the cost of production. In a letter to the Straits Times, 

 W. M. Sime explains that with half crop the cost of production 

 is really only 10 cents. Straits currency, a pound higher than 

 with full crop. 



Other opponents, mainly the strong companies, believe that 

 nature should take its course and that the problem should be 

 solved by the survival of the fittest. This is a very heartless 

 view, and if put into effect it would by no means solve the prob- 

 lem. To be sure, the shutting down of many small estates would 

 Ijring about a temporary reduction of output sufficient to send 

 prices up. However, it is to be expected that the wealthier com- 

 panies would seize the opportunity of acquiring additional rub- 

 ber areas at very low prices, and would push the exploitation 

 of their estates when rubber prices went up, and within a short 

 time over-production and low prices would again prevail. 



There is, therefore, the view that the supply of rubber must 

 be controlled. Recently there appeared in the Financier an 

 analytical survey of the problem and practical suggestions by one 

 signing himself "Kidah." The following are some of the sug- 

 gestions: 



Reduction of costs by grouping together estates in the same 

 district whenever possible. 



Amalgamation of companies according to such groups. 



Establishment of central warehouses in the chief distributing 

 centers in Malaya, Ceylon and the Netherlands East Indies. 



Complete control of distribution from these centers. 



Decrees of British and Dutch colonial governments prohibiting 

 the opening up of new lands for the time being. 



The output would be dealt with as follows: 



Immediate restriction of output by 50 per cent ; companies or 

 owners having only 50 per cent of their land in full bearing to 

 restrict by 25 per cent. 



\\ hen the price of rubber went above 2s. per pound, output to 

 be restricted by 33 1/3 per cent. At 2s. 6d., reduction to be 25 

 per cent until rubber touched 3s. 6d., when full production or 90 

 per cent of full production should be resumed. As soon as the 

 price dropped below 3s., the 25 per cent restriction should be 

 adopted again. 



ITEW INDUSTHIES 



The discouraging conditions in the rubber industry have at 

 last aroused Malaya to the danger of centering on only one or 

 two crops, and the local government is endeavoring to encourage 

 the cultivation of other crops, as sugar. It has also been sug- 

 gested that attention be given to food crops, oil palm, ground 

 nuts, rozelle fiber, etc. 



The rubber slump has also opened the eyes of many to the 

 fact that Malaya may have potential rivals in the other rubber- 

 producing countries. Thus a correspondent of the .Malayan Tin 

 & Rubber Journal, wishes to know if serious efforts are being 

 made in the Fhilippines to cultivate rubber The writer is of 

 opinion that should the Philippines be suitable for rubber cul- 

 tivation Americans would not hesitate to spend the necessary 

 money to open up the country and within a few years the islands 

 would prove a serious menace to Malaya. 



