"MONOPOLY."

Press, Volume LXII, Issue 18635, 9 March 1926, Page 4

"MONOPOLY."

RUBBER AMERICA AND BRITAIN. (FfiOH OVB, OWS COHBESPOJTDZKT.) SAN FKANCISCO, January 16. The controversy as to the belief that Britain ha 3 a. stranglehold on the ■world's rubber supply still waxes strong i in the United States, a country -which uses untold quantities of rubber, particularly, in the manufacture of automobiles. The lueklcss lie'ad of John Bull recently has had much- abuse hurled its way, and he has been twitted in the public Press ad libitum, only two or three solitary instances of defending Britain's position being chronicled in out-of-the-way places in America. In. these few instances it has been pointed out that whenever Uncle Sam enjoys a world monopoly oi certain classes of world essentials there has been no outcry by "foreigners," who, on the other hand, have contented themselves with quietly paying the price demanded by American profiteers. In the courso of an interview in New York, Mr Paul W. Litchfield, vice-presi-dent of the Goodyear Tyre and Bubber Company, of Akron, Ohio, said that he was convinced England would continue to hold the whip hand in the rubber trade for another five years. By the end of that time, he believed, the United States would be reaping the results from a prospctivo drive for production of rubber independent of Great Britain and tho crisis would be relieved. "One way to help this situation," said Mr Litchfield, "would bo for the United States Government to levy a heavy import tax on rubber, and take the money derived from it for the development of new plantations." Ho pointed out that England had invested 600 million dollars in rubber production, and the United States must act in a large way to meet the conditions England's initiative had brought about. Mr Litchfield predicted that 1926 would bo the biggest in many years for the rubber industry. He said that practically all the Akron rubber plants had been expanded, and orders were pouring in. To Break Monopoly. The breaking down of the British rubber monopoly is the hope' and plan of the American nation's leading tyre manufacturers, whose representatives gathered in New York to initiate, a series of conferences on the subject. Some form of combination or resources was expected to be adopted in order to wrest from Great Britain control of rubber prices, assured by regulations which limit the amount of crude rubber for export. According to the delegates, no system of co-operation proposed so far has won unanimous support. Ono project which has found favour is that of pooling resources to establish and maintain rubber plantations in Sumatra and the Philippines. The Firestone interests of Akron already plan such developments in Liberia. of the American Bubber Association recently told Mr Herbert Hoover,' Secretary of the United States Department of Commerce, that some form of combination was essential if the British monopoly were to be dissipated. In Washington the subject came up for discussion on several occasions, and Mr Ernest Smith, general manager of 'the American Automobile Association, told tho House Commerce Committee, when it resumed hearings on the rubber problem, that a world-wido protest against restrictions on crude .. rubber shipments from British colonies, was to bo made by organisations in 23 countries, including Great Britain. British manufacturers and automotive organisations, Mr Smith said, have.insistently requested relief from increased prices in that country. United States' consumers Mil pay 515 million dollars more for their tyres in 19.26 at the present Tate of increase. This he based on a probable average increase in tho price of from 35 to 65 cents for the crude rubber used in a tyre. Restrictions applying to cotton in tho United States, "not in retaliation, but in emulation" of British rubber control, wero advocated by Eepresentative McKeown, Democrat, of Oklahoma. Defending his plan, Mr McKeoiyn said he endorsed Toperatiftn of British rubber control, "in principle." The cotton industry, he added, "must have Governmental aid, or die."

Shortage Held Near. Urging economy in the use of reclamation of rubber, P.. L. Palmerton chief of the Department of Commerce rubber division, Washington, told the House Commerce that the situation promised to become acute by 1929. Demand was increasing steadily, lie said, with only slight advance in potential production, and tho British restrictions had aggravated the situation. The decreased plantiug, lie added, had allowed acreage to -remain almost the same in the face of increasing consumption. . The normal demand in 1920' Mr Palmorton placed at 072,000, us compared with a maximum possible production of 601,000 tons. "Almost illimitable," acreage-producing trees in Brazil await an enterprising work to increase accessibility, ho said. Representative Parks, Democrat of Arkansas, introduced a resolution to broaden the investigation to, include the United States iundustry. but it was rejected by the committee in executive session. A number of Democrats on the committee supported the proposal, which reflected a move already apparent among" the minority to bring into the enquiry the Administration's attitude towards methods at home. After tho committee rejected, his proposal, Mr. Parks introduced a similar resolution in the House and announced he would press for the consideration, rt would call for an enquiry into the "means and methods of manufacture, price, angl distribution of automobile tyres aijd of all rubber goods sold in the United States, and also the price, sale, and distribution of coffee." He said the resolution was designed to ascertain what part of the increased price in rubber and coffee in the United States could be attributed to Manipulation by the British and Brazilian Governments, and charged that United States manufacturers of these products wore, attempting to "pass the buck" fo r high prices. or 2 in other words, foisting the responsibility on others, while they themselves were guilty. The youngest schoolboy is aware that gigantic profiteering has been perpetrated on the American public by tyre merchants in the- United States, for, directly the scare started in America, prices of tyres in stock were boosted inordinately. Twice a month the prices were advanced although no new raw supply of rubber had been used to manufacture the tyres which- were being offered to motorists. From iast July to the end of the year some, ten advances were made in tho charge for tyres, and some classes of tyres are now three times the price they were six months ago, despite the fact that most of them haTe been in stock on agents' shelves since Jhe middle of last jear.

Some of these agents hare made hundreds of thousands of dollars by this eploitation of the automobilists, yet, at the present they are posing as the most innocent tradesmen in the land!