May 1, 1912.] 



THE INDIA RUBBER WORLD 



389 



FRENCH MANUFACTURERS AND RUBBER DUTIES. 



'T'HE rejection of the proposal to levy a duty of 1 franc per 

 ^ kilo (about 9 cents per pound), on crude rubber, except on 

 that from French colonies and protectorates reported in The 

 India Rubber World of April 1, page 336), has given much 

 satisfaction to the French rubber industry. 



In commenting retrospectively upon the proposed measure, 

 M. G. Lamy-Torrilhon, president of the Syndical Chamber of 

 Rubber Manufacturers, refers to the general principle of fiscal 

 legislation, according to which all raw materials intended for 

 use in national industries are e.xempted from import duties. To 

 renounce this fundamental principle, he remarks, would be 

 launching into the unknown. From the point of view of the 

 enormous injuries which might result to certain industries, and 

 the disturbance which might be caused in the economic situation 

 of the country, the consequences of such a measure might be 

 irreparable. 



According to recent statistics, he adds, rubber manufacture is 

 one of the most important branches of French industry, rep- 

 resenting a yearly output exceeding $40,000,000. It constitutes 

 the support of 30,000 workers and their families ; or, including 

 its accessory branches, at least 50,000 hands. It is pertinently 

 urged that the development of the industry would be arrested 

 by a duty on rubber, just at a time when it is being daily taken 

 up for new purposes. 



Out of an aggregate yearly product of about 93,000 tons 

 for the entire world, that of the French colonies is estimated at 

 less than 7,000 tons. France, it is stated, annually consumes 

 altogether 16 to 17,000 tons of crude rubber, of which quantity 

 the French colonies furnish less than 3,000 tons. 



Not only in quantity, but also in quality, is the French colonial 

 product (principally consisting of vine rubbers, such as Lan- 

 dolphia Heudelotii or Owariensis) to a great extent unsuitable 

 as a substitute for South American Hevca Brasiliensis, Castilloa, 

 Manihot, etc. One-half of the French consumption of rubber is 

 said to consist of genume Para. The coefficient of duty (or 

 ad valorem equivalent) would necessarily be higher on inferior 

 grades which show a much heavier shrinkage than better qual- 

 ities ; a specific duty being of course levied on the impurities 

 present, as well as upon the rubber contents. At present prices 

 the duty would have represented about 10 per cent, on Para, and 

 25 per cent, on Borneo rubber. 



Another point referred to is the possibility of the reprisals 

 wliich would have followed the adoption of the measure. While 

 not specifically mentioned, it is evident that the fear of jeopard- 

 izing the important commercial relations between France and 

 Brazil, had an important share in the action of the French ad- 

 ministration. 



In his concluding words, M. Lamy-Torrilhon takes the posi- 

 tion that there are simple and easy ways of promoting the cul- 

 tivation of rubber in the French colonies, on the lines adopted 

 by England and Holland in the Far East, without the aid of a 

 duty. To use his own words : 



"We ask nothing better than the promotion in any way of 

 rubber cultivation in our colonies, but any measure adopted, 

 must not ruin an industry, which is energetically struggling 

 against the invasion of foreign products. This would not only 

 discourage it, but would oblige it for certain articles to seek a 

 refuge with a nation where raw materials are free from duty." 



The concluding sentence evidently refers to the contingency 



of manufacturing outside of France, principally for the export 

 trade. The drawback provisions of the bill are characterized 

 as illusory and troublesome of application, particularly in cases 

 where regenerated rubber forms a component of a manufactured 

 product. 



It is stated that the rejection of the obno.xious measure was 

 largely due to the protests of leading manufacturers and im- 

 porters, who waited upon Viscount de Villebois Mareuil, the 

 "reporter" of the Customs Commission. The representations 

 made were so effective that the commission expressed unanimous 

 disapproval of the proposed legislation. 



The text of the bill follows : 



TEXT OF REJECTED FRENCH BILL. 



1. Crude rubbers, the produce of forests or plantations, situ- 

 ated in foreign countries, will be subjected, on their entering 

 France, to a customs or consumption duty of 1 franc per kilo- 

 gram (about 9 cents per pound). 



2. Manufactured objects from foreign countries, and contain- 

 ing a certain quantity of manufactured rubber, will be subjected, 

 on entering France, to a duty in proportion to the quantity of 

 rubber they contain at the rate of 1 franc per kilogram (about 9 

 cents per pound) of crude rubber. 



3. Crude rubbers from forests or plantations situated in the 

 French colonies or in French protectorates, will be exempt from 

 all duties on entering France. 



4. French manufactured products intended for export will 

 profit on leaving France, by a drawback calculated according to 

 the quantity of crude rubber they contain. 



The drawback will be proportionate to : 



1. The weight of the crude rubber contained in these products. 



2. A coefficient variable every year and which will depend 

 upon the proportion existing between the crude rubbers imported 

 into France from French colonies and protectorates and the 

 total quantity of crude rubbers imported into France during the 

 preceding year. 



FUSION OF FRENCH RUBBER FACTORIES. 



At the recent extraordinary general meeting of the Etablisse- 

 ments Bergougnan, of Clermont-Ferrand, France, the absorption 

 of the Societe des Etablissements Torrilhon, of the same city, 

 was unanimously voted. In order to carry this proposal into 

 effect, the capital of the first-named company is being increased 

 from the equivalent of $2,600,000 to the parity of $2,800,000. 



Other fusions of important French rubber companies have 

 been reported as contemplated, but do not seem to have as yet 

 assumed definite shape. 



AMERICAN, ENGLISH AND GERMAN RUBBER 

 CONSUMPTION. 



IN view of the growing importance of the European markets 

 * for the distribution of rubber, the statistical value of their 

 recorded imports requires to be considered with relation to their 

 exports, in order to arrive at their net consumption. In the 

 subjoined table are shown the three results, grouped in such a 

 way as to show the net consumption of -America. England and 

 Germany for the calendar years 1910 and 1911. Duplication of 

 quantities is thus avoided. 



The proportions of re-exports to imports in 1911 were (ap- 

 proximately) : United States, 7 per cent.; England, 60 per cent.; 

 Germany, 25 per cent. 



AMERICAN, ENGLISH AND GERMAN CRUDE RUBBER STATISTICS FOR CALENDAR YEARS 1910 AND 1911. 



Imports. 



1910. 1911. 



United States ...pounds 90,139,232 82,921,465 



England 98.220,528 101.491,624 



Germany 41,151,660 43,885,160 



Totals pounds 229,511,420 228,298,249 



Re-exports. 



1910. 



6,158.694 



52.401,664 



10,459,460 



69,019,818 



1911. 



5,651,575 

 63,804,384 

 10,266,520 



79,722.479 



Consumption. 



1910. 

 83,980,538 

 45,818,864 

 30,692,200 



160,491,602 



1911. 

 77.269,890 

 37,687.240 

 33.618,640 



148,575.770 



