RUBBER CHAIRMEN'S ESTIMATES
Shareholders in many rubber companies will take heart from the remarks of Mr. Eric Miller at the meeting of Mendaris (Sumatra) Rubber Estates last week, remembering that Mr. Miller is a member of the International Rubber Regulation Committee. He stated with some emphasis that there was every justification for producers feeling that the market should be substantially higher before they can be said to be obtaining an adequate return for their Labours. He con- gratulated other rubber company chairmen for having made the same point. But he added that the strong statistical position of rubber may not help them to achieve solid improve- men until international political tension lightens.
It is a fair comment on Mr. Miller's view to set beside it the opinions of Mr. H. J. Welch, the chairman of Rubber Plantations Investment Trust, since Rubber Trust, as the holder of rubber and tea investments, is one stage removed from being a direct producer, and is in a position analogous to that of the individual rubber shareholder. Mr. Welch also spoke favourably of the statistical position. He believes that world consumption of rubber is not likely to fall below r,000,000 tons this year, but he pointed out that dividends receivable from rubber investments in the first half of this year will doubtless be reduced. He showed that he attaches little importance to the present market value of rubber shares, and much to the careful selection of them.
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