SLUMP IN RUBBER

Sun (Auckland), Volume IV, Issue 1047, 11 August 1930, Page 11

SLUMP IN RUBBER

“PRICES MUST FALL” OVER-PRODUCTION IN THE EAST Motor-tyres and other rubber goods must eventually come down in price According to Mr. F. S. Ormiston managing director of the Dunlop-Per-driau Rubber Company in Australia this will be the natural result of the present slump in the rubber market. Mr. .Ormiston is returning to Melbourne by the Aorangi after a trip to England, Europe and the United States. In explaining the fall of rubber prices, he states that native-grown rubber had reached such enormous proportions that if the Dutch Government does not take some action there cannot be any control of the market The production of rubber cannot continue at its present price, which is below cost. The rubber manufacturing trade in the United States has undergone considerabie change recently, remarked Mi. Ormiston. Many large manufacturing concerns have been absorbed bv others and in some instances notable concerns have closed down many of their plants. i * ales ot m otor-cars, he noticed, nad fallen considerably in the United States. Because of over-production ail the different plants were closed down for a fortnight while he was there. In England there seemed to be a desire for manufacturers to produce motor-cars suitable for use in the colonies. Motor-car production ill England was growing steadily.