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ability by reason of certain ‘ main lines’ which are provid- 
ing profits that are greater than the losses made on a number 
of other lines, although owing to present Costing methods 
these other lines may even be thought to be profitable. Un- 
less true costs are known, increased turnover would tend fo 
be obtained by each Company in those goods most heavily 
subsidised by the profits of its ‘main line’ and in con- 
sequence not only would the profits of that company be 
diminished, but the market prices for those other lines would 
probably become unprofitable for the other Companiesralso.’’ 
The truth of this statement is generally recognised, and there 
is little doubt, that, as the result of the production of this report, 
a determined attempt will be made to adopt a system of ration- 
alization in the rubber industry of the United Kingdom. Signs 
are not lacking that this movement is already developing in a 
number of ways. Such a movement will definitely give the United 
Kingdom industry a progressive policy which should improve its 
position as one of the staple industries of the country. If in all 
these measures substantial agreement in the trade throughout the 
Empire can be obtained, the competitive position of the rubber 
industry of the Empire should be strengthened. 
XXIX —RESEARCH. 
134. In the section of our report dealing. with technical skill 
and labour we alluded to the change in progress in the rubber 
industry from rule of thumb methods to greater scientific control: 
The custom to employ chemists in rubber works is becoming 
increasingly general. In many cases they are as yet chiefly 
engaged on questions of works maintenance, the examination of 
samples and the solution of everyday factory problems. But several 
of the larger, more progressive units maintain development sections, 
the personnel of which, freed from routine work, are able to give 
their undivided attention to the studv of new materials, of special 
factory problems and processes, and of new applications and uses of 
rubber. 
135. In the main, therefore, the scientific research which is in 
progress is initiated and conducted by special staffs connected with 
and employed by the large firms in different countries. We are 
informed that in the United States and Canada, although no formal 
association exists in the industry for the promotion of scientific 
research into rubber, informal interchange of experience between 
the various firms is fairly general. 
186. A beginning in co-operative scientific research on the part 
of the rubber manufacturers was made in the United Kingdom in 
Scientific 
progress. 
Mainly the 
work of 
the large 
firms. 
Co-opera- 
tive 
scientific 
research.