January 1, 1919.] 



THE INDIA RUBBER WORLD 



217 



IHPERIAL MONOPOLY. 



It is doubted whether the first course would afiford the assist- 

 ance that appears to be required, but the commission strongly 

 recommends the second course, imperial monopoly with a rubber 

 trust, to the consideration of the British Government. Each 

 British rubber-producing country would enter the trust to the ex- 

 tent of its restricted output. Holland could be allowed to join 

 the trust. Each country would buy its entire output. The rubber 

 thus bought might be dealt w^ith on joint account, or on separate 

 account, as might be most- convenient. The trust would fix the 

 buying and selling prices from time to time and arrange on a 

 pro-rata basis of the output for the allocation of the orders. 



If the output of the Federated Malay States was reduced to, 

 say. 4'6,0OO tons a year, and if the buying price was i260 a ton 

 (equivalent to 2s. 4d. a pound), a capital of il 1,196,000 would buy 

 up the whole year's output. But such an amount would not be 

 necessary, for the s.tock would be turned over. 



GOVERNMENT CONTROL. 



If it is decided not to form an imperial rubber trust, the com- 

 mission holds that the government (the imperial or local) should 

 be willing to adopt the third course, and buy rubber of a specified 

 grade at a specified price, to be modified from time to time, in 

 accordance with varying factors, when there are no other buyers 

 at that price. 



RUBBER GROWERS' ASSOCIATION SUGGESTS MINIMUM PRICES. 



The Rubber Grower's Association suggests the following pres- 

 ent minimum prices per pound, ex-warehouses, in the Eastern 

 markets at port of shipment : first crepe, fair average quality, 

 2s. 3^rf. .■ ribbed, smoked sheet, fair average quality, 2s. 3d.; first 

 crepe, oS quality, 2s. 3d.; ribbed, smoked sheet, off quality, 

 2s. 2d.; clean, light brown scrap crepe, 2j. l^d.; clean, medium 

 brown scrap crepe, 2.?. 0j4d.; specky, medium brown scrap 

 crepe. Is. Wyid.; dark to black scrap crepe, free from heat. 

 Is. W/zd. 



COST OF PRODUCTION. 



The cost of production is shown in the following statement, 

 sent in to the commission from 193 estates, which have been 

 divided into classes "A" and "B" estates, w hose f. o. b. cost of 

 production does not exceed 45 cents per pound in class "A," other 

 estates in class "B." The monetary figures are in Straits Settle- 

 ments currency, one dollar being equal to 56.7 cents United 

 States currency. 



Returns of stocks in Continental Europe, Japan, Canada; Aus- 

 tralia, Ceylon not available. 



2. Production of 1917 was 200,000 tons. Even if output of 191S 

 and 1919 does not exceed this, it amounts to 400,000 tons for those 

 two years. 



Estimated consumption plantation, 1918, 150,000 tons; 1919, 

 117,000 tons. 



Apart from existing stocks, therefore, production of 1918 and 

 1919 will meet consumption of 1918, 1919 and 1920 without touch- 

 ing 1920 crop. 



3. Restriction of output plantation rubber therefore necessary 

 as soon as possible, as temporary measure during present period 

 artificially reduced consumption. 



4. It is recommended that British and Dutch governments agree 

 to restrict by law their output for a period to be determined later 

 by mutual agreement. Output of Indo-China practically negligible. 



5. Flat rate of SO pounds an acre of tappable rubber for first 

 period of three montlis is recommended, being at rate of 20O' 

 pounds per annum. It may be necessary to reduce this later. 



6. System of licenses for estates and coupons for small holdings 

 elaborated in detail and recommended. 



7. Recommended that imperial trust be formed by governments 

 of British and Dutch rubber-producing countries, with monopoly 

 of buying and selling for period mutually agreed upon. In re- 

 spect of rubber produced during restriction of output, price to be 

 paid for first latex sheet or pale crepe (f. a. q.) one dollar. Straits 

 Settlements currency per pound, ex-warehouse Singapore. 



8. If trust not approved, there should be a minimum price, and 

 government of each country should buy output if market price 

 does not exceed minimum price. 



9. Minimum price 80 cents Straits Settlements currency recom- 

 mended for qualities above mentioned. 



10. For lower qualities valuations would be made by Standard' 

 Qualities Committee to be appointed for that purpose in. 

 Singapore. - 



11. Control should be in hands of Rubber Controller, with resf- 

 dence in Singapore. He should be assisted by advisory com- 

 mittee. There should be under him deputy rubber controllers in 

 Malaya, Ceylon and India, with local advisory committees. 



There should be independent rubber controller in Netherlands 

 East Indies, working in conjunction with him. Any order vary- 

 ing rate of restriction of output or buying price if there is a trust, 

 or minimum price, would be made by British and Dutch con- 

 trollers in agreement. 



12. All rubber-consuming countries should be asked to pass 

 their orders to rubber controller for allocation or else allocate 

 the orders themselves and report particulars thereof to Rubber 

 Controller. 



13. Actual buying, selling and storing rubber can be carried out 



SUMMARY OF ESTATES' COST OF PRODUCTION FIGURES FOR THE HALF-YEAR— JANUARY 



C. 

 Average 

 Yield 

 per Acre General 

 per Annum. Charges. 

 Pounds Cents 



Rubber, per Pound 



Rubber 



Bearing. 

 110.578.)^ 

 74,802 Ji 



Crop 

 Secured to 

 End June 

 (6 Months). 

 Pounds 

 Rubber. 

 16,838,783'^ 

 9,370,128^ 



26,208,912 



Packii 



Up-Keep 



of Tappin, 



Bear- and and 



ingArea. Curing. Despatch. W 



Cents Cents Cents ( 



per Pound, per Pound, per Pound, per 



6.77 14.31 2.25 



13.59 21.26 2.30 



1 TO JUNE 30. 1918. 



G. H. 1. 



F.O. B. F. O. B. Cost Percent- 

 Cost if Yield Re- age in- 

 E.xclud- itricted to 200 crease in 

 ing F. Lbs. per Acre. F. O. B. 

 Cents Cents Cost, 



per Pound, per Pound. Per Cent. 

 35.31 45.06 27.61 



58 83 61.40 14.06 



).81 



17.41 



2.27 



43.56 



22.92 



Note. — Export duty 



included in the f. 



restricted (H). 



The f. o. b. cost is reckoned without export duty, war tax, local 

 freight, insurance, Singapore selling charges, depreciation, head 

 office charges or directors' fees. The lowest f. o. b. cost, thus 

 reckoned is 20.4 cents, and the highest, 78.29 cents. The cost 

 for one estate is below 25 cents a pound ; for 33 estates, over 

 25 cents and under 35 cents; for 73 estates, over 35 cents and 

 under 45 cents ; for 48 estates, over 45 cents and under 55 cents ; 

 for 24 estates, over 55 cents and under 65 cents; for 11 estates, 

 over 65 cents and under 75 cents ; for three estates, over 75 cents. 



SUMMARY OF REPORT. 



The following is a summary of report of Rubber Industry Pro- 

 tection Commission : 



1. Existing stocks plantation rubber in United States of Amer- 

 ica, United Kingdom, British Malaya, and Netherlands East 

 Indies estimated at 148,620 tons. 



by firms now engaged in trade under supervision of deputy rub- 

 ber controllers. 



14 Whether there is trust or minimum price, it is recom- 

 mended that government should offer to purchase at equitable 

 price stocks of good-quality rubber produced before restriction 

 comes into force, and still remaining in Straits Settlements and 

 Malay States. Quantity of good-quality rubber in Straits Settle- 

 ments and Malay States estimated at about 25,000 tons. 



In conclusion our contemporary points out that, although the 

 war is ended, for a time there will be an increased, not a de- 

 creased, demand for shipping on the Atlantic, since America will 

 have to repatriate millions of men as well as to send urgently 

 needed food to Europe. If one reason for the restriction of rub- 

 ber imports was to force shipping from the Pacific to the Atlantic 

 we may be quite sure that the need of it there will be as great in 

 1920 as It is at present, so that the rubber industry has to prepare 

 tor a period during which the conditions to be faced will be 

 altogether abnormal. 



