The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-20
Especial Dispatch.)
LoNpoN, July -.

LoNpoS, July 10.
ID EPORTS that have appeared in some
n papers that tho deti ease in the price
OF rubber. which mas resulted in the
lowering OF the cost OF automobile tires.
is due to overproduction of the raw ma
'erial. are denied BY tire manufacturers
OF whom inquiries were made by your
correspondent.
i'ces' as matter OF course. rose
Turing the rubber boom" n few wears
dso' out as tho production OF rubber .reJv
so the prices fell. and with them as +.
natural result, tho cost OF tires. A. ~.
same time it is not thought that prices
VIII fal much lower than they are n,
present In the near future.
Mr.. L. c. Van Bever. manay;,y d,r.o
LOT 'he Goodyear Tire and Rubber Com.
pany (Great Brittany. which haa m.
largest output OF automobile tires In tho
world, running into an average OF on
day, said:-"The lowering Of ths nr,ce
OF automobile tires is not due to over
production at all. There are various
reasons One is the lower and apparently
more settled condition of the rubber mar
past had been the speculative element
In the manufacture of rubber goods. Tha
danger OF extreme fluctuations was spe-
cally important 10 the tire section of
the rubber business because OF the fact
mat tires consumed a very large quantity
OF the hest grades OF rubber
The removal of this speculative element
To SnCb ~,
Tire and Rubber Company. who opera te
their business with view To making a
gross profit OF about eight and n half per
cent per annum. is extremely beneficial.
Another important factor in the lower
Ing OF the price OF tires has been the In
creased production OF cultivated rubber.
and 'as the leading tire companies have
grown the Increase In production OF tires
has made II possible to greatly reduce the
machinery
1T Is not to be expected however that
rubber will drop much further in price
imam II Is at present. But rubber tires
are really lower in price than they eve,
had been. taking everything into con
49, ~'''N''''' an A!iis ID Ncly Sb'l ipE iIt
au,omoblist, because at the present time
he is able to buy his tires in London at
from two-fifths to one-half OF what he
paid for them three and half years ago.
Not only does he get his tires very much
cheaper, but 1t stands to reason that, with
all the improvements that have been made,
he is getting a better tire, which provides
an offset to the increased cost or his
petrol"
The manager OF the Avon Rubber and
Tire Company. Newman street. said ~
do not think that you will see any further
decrease In the price of automobile tires
for some time 10 come That may be A
guess. but 1t is my opinion. AT present
there IS no overproduction With regard
TO the report that that is what is happen
ing in the Malayan States. 1t is not the
case just now. but it may come if they go
on producing at the rate they are going.
The cost OF production varies from Is
Cd. to Is. Cd. pound and to-day the best
plantation rubber is selling in London at
Is. lid. pound, which Is very h!gh and
gives good profit 10 the producer. II we
manufacturers could make a profit OF rs
per cent we should be very we'll satisfied
but competition has brought the price of
tires down very considerably OF late. and