The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-07-08
TIRE PRICES GO
UP 30 PERCENT
AUTOMOBILE MEN SAY LATEST
BOOST IN COST is DUE TO
NEUTRALITY-SUSPICIOUS.
is ON.

Local automobile agents and owners
are incensed over the advance of 80
per cent in the price Of auto rubber
tires. What makes the local people
boil Is the fact that the tire makers
cannot give any good reason for an
advance There seems to be as much
rubber now as there ever was and the
building of railroads into the South
American rubber country viii. place
more on the market
The Lansing Journal says:
The power OF combine is nicely IL
Illustrated by the move of the rubber
slghtedness and organization Is plainly
shown when such gigantic organza-
| tiOns as the General Motors company
must calmly fold its hands and accept
the advance of 80 per cent in rubber
tires which means at least $50 more
added To the cost OF an automobile
That the move on the part of the
rubber tire combine is one to kill of
1.-two big American and English syndi-
Gates formed for the purpose OF build
ing railroads and exploiting rubber
plantations i'm South America, seems
certain. The 30 per cent increase
means simply. according to automo-
bile men, that the tire combine is
gathering financial ammunition for {
battle Of prices with the rubber plan
tatlons syndicates i'm a year hence.
Then the tire combine will lowe
the price of rubber tires until thu
plantation men cannot afford to pro
duce rubber. The tire combine vii
manufacture and sell at a loss, 1t /
; said. but with the financial resource
secured from the results of the ad
vance of 80 per cent, the combine vii
come out with the usual normal divi
dend after the fight sees the backbon
of the rubber planter broken and
, lot of smaller tire manufacturers driv
en- out of business.
About a year ago two big BIRTHS
and American syndicates were form
ed to exploit the South American plan
tations. Vast sums of money sub
scribed to the enterprise is being eX
pended i'm building railroads to thes
= plantations. In the majority of In
stances there are no big towns whic
these railroads will pass through; r
agricultural country nor mining RI
gion where the railroads could mair
tain themselves by shipping or CON
mercial exchange. They will be d.
pendable upon the rubber trade II
their existence. It will require OF
year to complete them and possib
two more before the syndicate can b'
gin realizing on their investments.
@ With the tactics that the tiremake
|. are about to pursue, it is prophesi'
= bv local men, that the syndicates w
r find themselves forced to the wall !
g the combine of rubber goods mani
8 facturers I'm this country. Raw rul
@ Der but a short time ago sold for
r cents a pound. 1t has been boost'
q by the combine TO over SO poun
: making considerable profit, no dor
@ to the dealer in raw rubber.
d But as soon as the South Anne
II lean railroads are built and raw rul
Der Is being produced, 1t Is declare
10 by those who have watched the situ
ton that the tire manufactures W
:, hammer the price down TO where q
!, rubber syndicates will be compeli
10 either sell out or quit bushes
:, When they are killed then there W
be dear tires again.
Many dealers in this city were a
y prised of the 30 per cent advance sor
II time ago and placed their orders I
tires accordingly. After long wal
they were notified that II would
impossible to make any shipments N
til after July 1. The advance went y
It to effect at midnight June 30. Man
e facturers and retailers seem to have
r. alternative but that of bowling q
: head and accepting gracefully WIN
$ their customers kick.