September 1, 1921 



THE INDIA RUBBER WORLD 



937 



Supplement, replying to tlic question whether ruliber producers 

 outside of Malaya could supply the world demand for more than 

 a year, gives figures which it thinks ought to convince the Dutch 

 East Indies and other countries that it is to their interest to 

 cooperate with Malaya in restricting outputs. 



The possible production of the various countries for 1921 is 

 given as 374.000 tons. Of this Malaya, producing at full capacity, 

 would contribute 210,000 tons. The probable consumption in 

 1921, has been estimated at 250,000 tons by the Rubber Growers' 

 .Association. Total stocks at the end of 1920 amounted to 310,000, 

 the present excess, at a conservative estimate, being 150,000 tons. 

 If the estimated consumption of 250.000 tons is correct then we 

 liavc : 



Tons 



I'roducers other than Malaya 164.000 



Present total stocks— 3 lO.OOO for 1620 plus 20,000 since December, 



1920 330,000 



494.000 

 One year's ccnsumpticn 250.000 



Stock at end of one year 244,000 



Normal stocks — safe stocks during depressed trade 180.000 



Excess slocks at end of one year 64.000 



Therefore, if Malaya ceased to produce, the other countries 



could supply one year's rc(|uireincnts to the world. 



If Malaya produces half normal, the position at the end of 



1921 will be worse than at the end of 1920. 



Tons 



Stock at end of 1921 excluding Malaya 244.000 



Malayan producticn 1921 105.000 



349,000 

 Stcck at end of 1920 310,000 



Excess over last year 39,000 



CEYLCN 



.At a meeting of the Rubber Control Committee, held in Colombo 

 on July 5, it was decided that as only about 55 per cent of Ceylon 

 producers had supported the restriction scheme it was impossible 

 for the committee to discharge its functions and they accordingly 

 resigned. 



THE RUBBER PROEUCEES' CORPORATION 



The news that the Kul)ber Growers' Association is planning a 

 scheme to control the rubber industry for live years and that a 

 capita! of £6.000.000 will be provided for the purpose when the 

 requisite control of 2,220.000 acres is secured, has been very coldly 

 received in Colombo. Practically all persons in the rubber in- 

 dustry here are opposed to any interference with the operation of 

 the law of supply and demand. It is pointed out first, that the 

 Rubber Growers' Association represents only 1,150,000 acres. 

 Then, as far as Ceylon is concerned, where restriction by 25 per 

 cent has just proved a failure, it appears to be impossible to get a 

 sufficient number of estates to adhere to a plan of restriction by 

 50 per cent. 



"Generally speaking," said Mr. Burns, Chairman of the Ceylon 

 Chamber of Commerce, to a representative of the Times of Ceylon, 

 "I can say that Ceylon is rather tired of the restriction idea, be- 

 cause it has not been carried out either in the Straits or Ceylon. If 

 there is to be elimination by the survival of the fittest, the proba- 

 bility is that Ceylon will be able to carry on and the Straits be 

 compelled to restrict by a number of estates having to cease tap- 

 ping. If Java, Ceylon and the Straits could take steps to curtail 

 production compulsorily, then the Ceylon producers might be 

 inclined to favor such a scheme because it would then be general. 

 I think this is very improbable." 



Mr. Burns further pointed out the unwisdom of attempting to 

 raise prices at this time when producers were trying to rehabilitate 

 the trade: at such a time consumers would naturally object to any- 

 thing which would put up the price. 



RUBBER EXPORT DUTY 



About the middle of June a joint deputation of the Ceylon 

 Chamber of Commerce and the Planters' .Association of Ceylon 



waited on the Governor with the purpose of securing the abolition 

 or readjustment of the export tax on rubber. At present prices, 

 the duty on rubber amounts to an ad valorem rate of 9 per cent 

 Since the price of rubber was below 50 cents a pound, no export 

 duty on rubber was paid in the Straits, where a sliding scale of 

 taxation exists. Thus the advantage that Ceylon has of a lower 

 cost of production is neutralized to a certain extent, and to that 

 e.xtent the export tax makes iier less alile to compete with the 

 Straits. 



NETHERLANDS EAST INDIES 



Until quite recently the general opinion lierc was not in favor 

 of restriction. However, of late, warnings in local papers and the 

 news that a bank to aid the rnbber industry was to be estalilishcd 

 showed that the Government had fully realized the seriousness of 

 the situation. .At a meeting of the Association for the Promotion 

 of Agriculture and Industry, held to discuss crop restriction, Mr. 

 Hierneiss, of London, was asked to give information on the posi- 

 tion of rubber. In his opinion restriction of 50 per cent was the 

 only salvation. The theory of the survival of the fittest is of no 

 use and unless something is done other sources of rubber will be 

 developed. If rublier producers continue as at present, then it 

 will not be the fittest that will survive, but America will take their 

 place. 



"Now what will become of the value of Eastern plantations if 

 rubber producers do not take proper measures to protect them- 

 selves?" asks Mr. Hierneiss. "Will it be surprising if Ainerica 

 finds that the time is arriving whtn she must strengthen her posi- 

 tion in Brazil? Or will the scheme of Henry C. Pearson. Editor 

 of The Indi.», Ruhber World, to plant a rubber yielding shrub on 

 a large scale in the United States, be carried out?" 



After this talk, the .Association decided to inform the Director 

 of Agriculture, Industry and Commerce that the Association was. 

 unanimous in the opinion that the only remedy is a 50 per cent 

 restriction together with such fixing of the market prices that the 

 costs of normal exploitation may be covered. 



According to latest information, at a meeting of representatives 

 of rubber producing associations in the Netherlands East Indies 

 and the Straits Settlements, held at Batavia, it was decided that 

 identical interests make cooperation necessary, and that joint 

 restriction of output is the only remedy. Malaya, Netherlands 

 East Indies and Ceylon should cooperate as far as restriction is 

 concerned. Moreover, a selling combination is also necessary for 

 the proper control of the industry. The Rubber Growers' Associa- 

 tion, London, and the Internationale \'ereeniging voor Rubber- 

 cultuur in Nederlandsch-Indie, the Hague, will be strongly urged 

 to form the necessary organization for control immediately. 



GOVERNMENTS GUTTA PEHCHA ESTATE, "TJIPETIR" 



The report of the Government's Gutta Percha Estate, "Tjipetir," 

 for 1919 gives the following information: 



The total area under gutta percha is 1332 hectares — hectare 

 equals 2.47 acres — of which 1020 hectares are producing. The 

 rubber acreage is 344 hectares, oi which 325 hectares are in bear- 

 ing. Expenditure for the upkeep of gutta percha was 57.61 gilders 

 per hectare, 10.92 gilders l)eing written down for manuring and 

 3.03 gilders for overcoming pests and diseases. Rubber cost 97.83 

 gilders per hectare, and fighting diseases responsible for 29 82 

 gilders. 



Gutta percha suffered rather severely froiu insect pests, while 

 rubber had to fi.ght brown bast. 



The crop of leaves amounted to 3.512.746 kilos against 3.555.587 

 kilos in 1918. The yield of plucked leaves was 5,452 kilos per 

 hectare against 5,072 the year before, and 646 kilos per hectare of 

 pruned leaves against 896 kilos m 1918. 



.As for rubber, the 325 hectares yielded 96,072.6 kilos as com- 

 pared with 110,295.2 kilos in 1918. The yield per tree per day 

 averaged 5.9 grams. In 1918 this was 5.6 grams. 



The yield of gutta percha obtained from the leaves and the 

 bark of the pruned branches and steir pieces was 73,181.1 kilos, 



