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THE INDIA RUBBER WORLD 



[February 1, 1915. 



The Rubber Embargo Lifted, Conditionally. 



NOT in many years, in fact it might be said never before in 

 the history of the American rubber industry, has it been 

 confronted with so serious a situation as that which ex- 

 isted during the weeks of the British embargo on plantation 

 rubber. It was a situation fraught with tremendous possibili- 

 ties of hardship and distress for the entire American rubber 

 trade. There have been attempts in former years to corner the 

 crude rubber supply but never of a character to prove menacing 

 to the trade, but here was a practical corner which had behind 

 it the resources of the whole British Empire, and its operation 

 and effectiveness depended not on the ability of any man or set 

 of men to maintain it but upon the will of the British Govern- 

 ment. It is not to be wondered at, therefore, that the leaders of 

 the American rubber manufacturing and importing trade be- 

 Stirred themselves early to discover some speedy means of relief. 



When the war broke out, on the 30th of July, there was at once 

 created a condition of uncertainty as to rubber supplies from 

 foreign parts, and prices rose with great rapidity during the 

 first few days of August; but when it became clear that the 

 Allies would have practical control of the seas and that supplies 

 would not be shut off through the activity of Germany and 

 Austria, prices immediately resumed their normal level. Late in 

 October, however, England declared an embargo on shipments 

 of all rubber from British colonial ports to any port outside of 

 England. This in itself did not threaten serious trouble to the 

 American manufacturer, but when, following close upon this 

 localized embargo, came rumors of a general embargo against 

 exportation of rubber not only from British colonial ports, but 

 from any English port, conditions were immediately changed. 



The Rubber Club of America and the Rubber Trade Associa- 

 tion of New York did not wait for official confirmation of this 

 general embargo rumor, but began to take steps at once to insure 

 for the American trade its necessary supply of rubber. On 

 November 2 a joint Embargo Committee was appointed by these 

 two organizations, composed of George B. Hodgman, president 

 of the llodgman Rubber Co. and also president of the Rubber 

 Club of America; William E. Bruyn, of L. Littlejohn & Co.. 

 president of the Rubber Trade Association of New York; Arthur 



II. Marks, of The B. F. G Irich ( o., and H. Stuart Hotchkiss, 



of the General Rubber Co. and also representing the United 

 States Rubber Co. When, on November 13, the embargo on 

 rubber shipments from London was officially proclaimed, the 

 Embargo Committee began action at once to relieve the situa- 

 tion. Its members visited Washington and had many sessions 

 with the State Department, but were not able to make much prog- 

 ress in this direction. It was discovered that greater headway 

 could be made by taking the matter up directly with the British 

 Ambassador, Sir Cecil Spring-Rice. They found the Ambassador 

 not only willing but anxious to assist them. They had eager 

 coadjutors also in the Rubber Growers' Association an,] Rubber 

 Trade Association of London, the latter association also appoint- 

 ing an Embargo Committee, consisting of the following mem- 

 bers: Arthur Meyer, of Arthur Meyer & Co.. Limited; Edmund 

 Stevenson, of Aldens' Successors. Limited; Andrew Devitt, of 

 Lewis & Peat, vice chairman of the Rubber Trade Association 

 of London, and Charles Bower, of Edward Till & Co. The in- 

 terests of the members of these associations lay. naturally, in the 

 direction of maintaining normal crude rubber relations with 

 the United States. But despite the efforts of the committees on 

 both sides of the water it was impossible to report real progress 

 during the uncertain, not to say anxious, weeks of November 

 and December. 



Some members of the trade affected to believe that the em- 

 bargo would be of short duration, that England was simply stock- 

 ing up. But others realized that unless England could have 



positive assurance that no rubber exported from London to 

 American ports would ever find its way back in any form to her 

 enemies the embargo would continue indefinitely. And it was 

 generally agreed that England was absolutely within her rights 

 in this matter, for it was obviously essential for her to deprive 

 Germany of all supplies. To be sure this meant distress and 

 possibly ruin to British planters in the East, but distress and 

 ruin are the incidents of war and in this case would weigh but 

 little in the mind of the English statesmen, realizing as they did 

 that this was a war in which the prestige, if not indeed the very 

 life of the British Empire, was at stake. 



In addition to the work of the two committees, one in New 

 York and the other in London, the larger rubber interests on 

 both sides of the water were exerting every possible influence 

 they could bring to bear for the relief of the situation. The 

 Embargo Committee of the two American organizations not only 

 did excellent work in presenting the situation so clearly and 

 persistently to the British Ambassador, and through him to his 

 government, but it performed a notable service in keeping the 

 members of the Rubber Club informed of every step that was 

 being taken, and also in interesting the whole American public in 

 the matter by frequent letters through its secretary to the daily 

 press. In the meantime it was drawing up tentative drafts of 

 such guarantees as the members of the American rubber trade 

 were willing to give the British Government. 



Finally, late in December, the committee believed that the best 

 and quickest way to bring the matter to a satisfactory conclu- 

 sion would be to send a suitable representative to London to 

 confer with the rubber men of that city, and with the officials of 

 the Government; and Mr. Bertram G. Work, president of The 

 B. F. Goodrich Co., was selected for this extremely important 

 mission. He sailed on the "Lusitania," which left New York on 

 December 30. Mr. Frank A. Seiberling, president of the Good- 

 year Tire & Rubber Co., also sailed on the same ship, going 

 unofficially and simply in his personal capacity as one of the 

 leading American rubber manufacturers. 



Meanwhile a tentative plan had been formulated in London 

 which enabled Mr. Work so to expedite matters that on January 

 8 he was able to cable the Embargo Committee of the Rubber 

 Club that the British Government would permit exports of rub- 

 ber from London to the United States under certain guarantees, 

 the tenor of which he also cabled. This same information was 

 furnished to the public on the same date by the British Am- 

 bassador, who gave the following statement to the press: 



"Arrangements have been practically completed whereby deal- 

 i is and manufacturers in the United States can obtain supplies 

 of rubber from the British Empire. 



"Manufacturers wishing to obtain large shipments will be re- 

 quired to give a bond through their agent in London. 



"In other cases shipments will be allowed to approved manu- 

 facturers and dealers who signify their willingness to sign ap- 

 propriate guarantees. Shipments will be addressed to a bank 

 in New York, which will not deliver the rubber until the pur- 

 chaser has signed and deposited guarantees with his majesty's 

 Consul General at New York and he sanctions delivery." 



The statement also contained, briefly, the details of the 

 guarantee which manufacturers and importers would be called 

 upon to sign. 



It was first stated that the larger American manufacturers 

 would be able to have crude rubber shipped direct to them on 

 the filing of a bond by accredited agents in London, but it was 

 evidently thought that this would lead to many complications 

 and might, in fact, be somewhat prejudicial to the smaller manu- 

 facturers and importers, for the official guarantee forms as 

 brought over by Mr. Work on his arrival on the "Lusitania," 



