112 



If rubber containing 20 per cent, or at a maximum, say, 25 per cent, 

 of water is shipped the actual amount of dry rubber sent for 2 

 cents at pre-war rates would be 80 or 75 per cent., respectively, that 

 is to say, each pound of actual rubber will cost 2| cents or 2f cents 

 at pre-'vV'ar rates and 5 cents or 5| cents at present rates of freight. 

 This represents an extra cost on freight of | to | cent at pre-war 

 rates and 1 to If cents at present rates. 



This extra cost has now to be compared from an economic point 

 of view with the cost of preparing, say, smoked sheet in estate 

 factories and this cost is represented when compared with " slab," by 

 the actual cost of machining, since acetic acid or some other 

 coagulant has to be used in the case of both " slab " and sheet. 



The lowest factory costs for present first grades is probably 

 about 1.5 cents per lb . which includes oil for engines and acetic 

 acid, but does not allow for capital cost and depreciation of 

 machinery and factory. In the preparation of "slab" rubber, apart 

 from the machinery required to treat 20 to 30 per cent, of the 

 crop which is represented by lower grades, all machinery and 

 consequently a large factory is eliminated. 



Leaving aside, however, the depreciation on factory and machinery, 

 the cost of preparation of first grades is probably not lower than the 

 above figure and in the preparation of virgin "slab" rubber the saving 

 efPected in cost of preparation will at least compensate for the extra 

 freight even at present rates, while in most cases and at pre-war 

 freights the saving in cost of preparation will probably be from 

 1 to 2 cents per pound on many estates. 



The above figures have demonstrated that virgin *' slab " is 

 cheaper to prepare, requiring little care, apart from cleanliness, and 

 that the saving on cost of preparation more than compensates 

 for the extra freight charges on moisture. 



Two other disadvantages may be mentioned, viz., difl3.culty of 

 fixing duty owing to a possible variable moisture content, and 

 secondly the introduction of a new type of rubber may cause 

 confusion among manufacturers. The first of these would be 

 capable of adjustment in a short time and presents no greater 

 difficulty than does Fine Hard Para while the second is not worth 

 taking into consideration, since the manufacturer would soon realize 

 the value of this type of rubber. 



With regard to the shipping of " slab " rubber in the form 

 of crepe, there is no advantage to the producer, in fact possibly 

 a slight disadvantage in that the coagulum after maturing for 

 six days is very tough and therefore more difficult to machine. The 

 advantages lie entirely with the manufacturer who is obtaining 

 a better type of rubber, which is clean and dry, and probably may 

 not, if properly packed, require rewashing. 



