Evening Republican, Volume 14, Number 190, Rensselaer, Jasper County, 11 August 1910 — FIX RUBBER PRICES [ARTICLE]

FIX RUBBER PRICES

Manufacturers of Crude Product in Mexico Form Organization. biscrimination la Alleged and Foreign Dealers, Especially In United States, Are Prejudiced Against Para Product. Torreon, Mexico. The manufacturers of crude rubber from the guayale shrub are forming a strong organization, which has for its purpose the fixing of the price that shall be paid for the product and to protect themselves against the discriminations which they allege is being practised against this kind of rubber in the principal markets of the world, particularly in the United States. The guayule rubber manufacturing companies and individuals composing this new combine represent a capital aggregating about $65,000,000 gold that is now invested In the industry in Northern Mexico. The combined capacity of the manufacturing plants +s about 500 tons of crude rubber daily. The reports of the different factories show that those located in the state of Coahuila alone has outputs aggregating $12,000,000 during the first four months of this year, and that this is to be still further increased by the erection of new factories of large capacity. The chief concerns interested in the movement to improve prices and market conditions of the crude products are the Continental-Mexican Rubber company of Torreon, the Compania Explotadora Coahullense of Parras, the Mexican Crude Rubber company of Viesca, the Compania Oanadera de la Merced of Cuatro Cienegas, the Compania Guayulera de Torreon, S. A., of Torreon; the Compania Hulera Mexicans of Gomez Palacio, La Internacional Mexicana of Torreon, the Compania Hulera de la Laguna, S. A., of Torreon: the Compania Huayulera Nacional, S. A., of Gomez Palacio; the Compania Mexicana Explitadora de Hule of Torreon, Othan Kateerfeldt of Gomez Palacio, and Enrico Northoldt of Torreon. The complaint of the manufacturers is that the foreign dealers and brokers

in rubber arbitrarily fix a price on the guayule rubber considerably below that which is paid for the Parra product, and that of rubber trees in other parts of the world without regard to the relative difference in the cauchouic properties of the two products. The fact is cited that while th 4 rubber tree product is accepted on a basis of 90 per cent, on its gross weight, an allowance of only 48 to 50 per cent, on its gross weight is made for gnavnle rubber. It is claimed that an analysis of guayule rubber shows that it averages 75 per cent, chauchou, the manufacturers being therefore deprived of practically one-third of the value of the product in its sale, i When the Parra apd other rubber tree products were selling for $1.25 a pound, offers of 80 to 90 cents per pound wdre made for guayule rubber. It is the purpose of the guayule rubber combine to demand an equalization of the prices, which will place their product on a parity with that obtained from the rubber tree