The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-07-21
TELLS Of THE FALL
OF TIRE TRUST.
William Gorham Thinks
the Public Can Pur-
chase Goods Cheaper

william ]. Gorham of the Gorham
sentatives for the Goodrich Rubber
Company, returned yesterday from a
business trip East. He brings with
him the inside facts about the break
ing up of the Tire Association, which
he declares was ''one of the tightest
and most exacting trusts on the face
of the earth"
The combine has been in existence
for three years and regulated the out
put and price of all automobile and
vehicle tires sold in the United States.
Practically all the tire manufacturers
in this country were affiliated with the
organization, and each company was
under a bond of $4,000 to abide by every
term of an agreement, which was re-
newed annually in September.
Manufacturers, automobile makers,
jobbers and consumers of tires all felt
the grim grip of the trust and a viola
the prices at which tires were to be
sold resulted in the manufacturer,
automobile maker or jobber guilty of
breaking the trusts schedule being de-
prived altogether of a source of OBJ
tanning tires.
To the Goodrich Rubber Company is
given the credit of putting the tire
trust out of existence. This corpora
ton is among the largest manufactur-
ers of automobile tires in the world.
having an immense plant at Akron,
Ohio. In accordance with the terms
Of the agreement the different COM
panies allied with the Tire Associa-
ton were allotted certain percent
age of the work of manufacturing
tires, this allotment being rated upon
the business done by each company
during the preceding twelve months.
The allotment of the Goodrich Rub
Der Company was 20 per cent Any
company manufacturing more tires
than it's allotment called for was re-
Quired TO turn a certain per cent of the
profits into pool. The Goodrich
Company demanded this year that its
allotment be increased when the
agreement would be drawn in Septem-
Der.
When the management of the trust
refused to do this the Goodrich Rubber
Company announced that it would
withdraw from the Tire Association
and after September 1 would make its
own prices.
The other companies in the combine
saw that with the Goodrich Rubber
Company travelling its own way there
would be no chance of holding the
trust together, so all the concerns af-
hliated with the organization are
d preparing " Slllb LUZ themselves.
Speaking Of the attitude of the Good
rich Rubber Company, Gorham said:
The Tire Association was a trust
and one Of the tightest and most ex-
acting trusts on the face Of the earth.
4 1t reached out and took hold of the
manufacturer the automobile maker.
the jobber and the consumer. 1t even
reached the man who conducts the
automobile repair shop and he could
not sell a tire for one cent less than
the schedule price fixed by the trust.
II he did and 1T was found out word
was Immediately sent him that he
could secure no more tires at the rate
/ that he had been paying for them.
Tires will become cheaper as a re-
suit of the dissolution of the trust. The
demand for automobile tires has in
i creased vastly in the United States.
The Goodrich plant at Akron, Ohio, has
been turning out $50 automobile tires
/ in twenty-four hours. Beginning with
/ September. the plant will be equipped
TO turn out 2l0o tires in the same
/ length of time"