324 



THE INDIA RUBBER WORLD 



[June i, 1904. 



HIDALGO— A NEW PLANTING COMPANY. 



THE Hidalgo Plantation and Commercial Co. was incor- 

 porated March 4, 1904, under the laws of California, to 

 engage in the cultivation of India-rubber and coffee in the de- 

 partment of Soconusco, state of Chiapas, Mexico. The officers 

 and directors are: John W. Butler, president; O. H. Harrison, 

 vice president ; H. W. Smith, secretary ; E. Noel, assistant sec- 

 retary ; Donald J. McKay, Walter Cox, F. H. Abbott. The 

 head office is at No. 713 Market street, San Francisco. 



Readers of The India Rubber World are familiar with the 

 names of Messrs. Butler and Harrison, in connection with La 

 Zacualpa Rubber Plantation Co. The development of La 

 Zacualpa plantation now having progressed to a point where 

 further capital is not required, the same interests have formed 

 the Hidalgo company, for the development of additional lands 



adjoining Zacualpa. The area involved is 6000 acre£, includ- 

 ing the coffee estates (now producing) known as the " Harrison 

 plantations," the principal one of which is known locally by 

 the name " Hidalgo." It is stated that 1300 acres of coffee are 

 now in full bearing. 



The new company will establish the " Juilapa " rubber plan- 

 tation, eventually to comprise 2500 acres, on the main road 

 from Tapachula to Mexico City. For development purposes 

 the Hidalgo company offer for sale 2500 shares, at $400 each, 

 on terms which will be furnished on application. 



At the annual meeting of the Russian-French Rubber 

 Works " Provodnik " at Riga, Russia, on March 25, the report 

 showed a profit of 910,185 rubles on a transaction of 12,375,896 

 rubles [ = $6,373,58644]. After providing for the various funds, 

 a dividend of 15 rubles per share was declared. 



REVIEW OF THE CRUDE RUBBER MARKET. 



THE market remains firm, with continued high prices, 

 the month having shown advances on many grades. 

 Stocks continue short, and the practical close of the 

 season for Para arrivals renders impossible the ac- 

 cumulation of new supplies from that source for some time to 

 come. 



The most striking fact in connection with the crude rubber 

 movement of late has been the increasing rate of imports by the 

 United States. The figures herewith, derived from the cus- 

 toms returns, indicate the net imports into this country during 

 the first nine months of the last six fiscal years ; that is, what 

 remained for consumption after deducting exports of rubber 

 from the total quantities imported : 



Pounds. 



Nine months ending March 31, 1899 39.522.946 



Nine months ending March 31, 1900 36,553,508 



Nine months ending March 31, 1901 36,894,178 



Nine months ending March 31, 1902 34,787,735 



Nine months ending March 31, 1903 37,830,342 



Nine months ending March 31, 1904 44,701,341 



The significance of the figures for the last nine months will 

 be appreciated by comparing them with the average for the five 

 preceding periods. That average was 37,117,742 pounds — an 

 amount exceeded since July 1, 1903, by 20.43 P er cent. Ordi- 

 narily increased imports are to be accounted for (1) by increased 

 consumption, or (2) by an accumulation of market stocks. No 

 unusually large stocks are now visible, however, and, with the 

 exception of the rubber footwear branch, there is reason to be- 

 lieve that consumption has not been materially heavier during 

 the nine months under review than in former seasons. 



But the latest report of the United States Rubber Co., printed 

 in full elsewhere in this Journal, points to another explanation 

 of the large imports of rubber, and one which suggests the 

 adoption of a new policy by large manufacturers — that "of 

 purchasing, so far as possible, crude rubber and other materials 

 sufficient to cover all goods that are sold in advance at fixed 

 prices." The report shows for the United States Rubber Co. 

 a decrease in cash, as compared with last year, of $3,162,978.29, 

 and an increase in inventories, including raw materials, of $5,- 

 321,093.10, which changes are stated to be due in part to the 

 new policy of the company. Moreover, these purchases are 

 stated to have been made "at prices materially below the pres- 

 ent market prices." 



The comment of some people in the trade doubtless will be 

 that " present prices " are largely due to the storing up of rub- 

 ber for consumption, in advance of normal factory require- 

 ments, which policy, by the way, is not now confined to the 



United States Rubber Co. The question is now being asked, 

 what will be the course of prices when these large extra pur- 

 chases have been completed, so far as this year is concerned, 

 and new arrivals are required only for the normal factory de- 

 mand in the general lines. Will there be a decline? To an- 

 swer this, it would be necessary to know how much more 

 rubber the large manufacturing companies have yet to arrive 

 to complete their advance orders, and also how large the total 

 production of rubber is to be. 



The "crop" of Pard rubber this year, it seems, will be some- 

 what larger than in any previous year. The latest available 

 figures permit this comparison to be made — beginning with 

 July 1 in each year : 



1900-01. IOOI-02. 1902-03. 1903-04. 



To December 31 tons 11,300 13,630 12,250 13,470 



To May 31 26,300 28,750 28.090 032.835 



To June 30 27,600 30,000 29,850 



[a — To May 2S, 1904.] 



Meanwhile there is no increase in the production of other 

 than Para rubbers. In many districts there is an absolute de- 

 cline. For instance, the arrivals of Congo sorts at Antwerp 

 for some time past have declined as follows : 



Tons. 



Ten months ending April 30, Igor 4343 



Ten months ending April 30, 1 902 433° 



Ten months ending April 30, 1903 4103 



Ten months ending April 30, 1904 4098 



The present period of high prices has existed for an excep- 

 tionally long time — a condition which should stimulate the 

 shipment of rubber, if the limit of production has not been 

 reached. In this connection, it may be of interest to note the 

 following figures, showing the average invoice price of all rub- 

 ber imported into the United States during the first nine 

 months of six fiscal years : 



Per Pound. 



Nine months ending March 31, 1899 62.1 cents. 



Nine months ending March 31, Igoo 64 g cents. 



Nine months ending March 31, igor 50.6 cents. 



Nine months ending March 31, 1902 49 4 cents. 



Nine months ending March 31, 1903 54 5 cents. 



Nine months ending March 31, igo4 68.2 cents. 



In regard to the financial situation, Albert B. Beers (broker 

 in India-rubber, No. 68 William street, New York), advises us: 



" During May the money market has been quiet and very 

 easy, rubber paper being taken by both city and out-of-town 

 banks at 4*2 @ 6 per cent., according to grade ; during the last 

 week of the month the demand decreased somewhat, and rates 

 have hardened a little." 



