Evening capital news. (Boise, Idaho) 1901-1927, 1914-08-30
CAUSE Of SUDDEN
PRICE CHANGES
Explanation Given of Two
Announcements Concern
ing Auto Tires.

The Goodyear Tire & Rubber COM
pany has issued a circular letter to its
agents explaining the recent increase
in price of automobile tires and the
equally sudden announcement that the
price would not be increased. The let
ter is as follows;
I'm view of the agitation about adj
vances in prices of various commodi-
ties, it will doubtless be interesting TO
have the clear facts as to the situation
in the automobile tire industry.
las you all know. the United States
produces no crude rubber. all of this
material being imported. At the COM
mencement of the European war. med
iums for transmitting payment to
Europe and other markets were immed-
itely disturbed. In addition to this, 1t
was impossible to secure ships in
which to transport rubber from the
foreign markets to the United States.
Tn the face of this condition, such
crude rubber as was on hand in the
United States, Immediately suffered a
rapid increase in price. Just before
war was declared, crude rubber was
selling around so cents in the New
York market. A few days after the
war began, New York rubber had gone
up to $1.0S per pound and even reach
ed a higher figure than this later on.
In other words, crude rubber rose in
price over 100 per cent in q few days
and such purchases of rubber as tire
manufacturers were compelled to make
during the interval were made at
greatly advanced prices.
These advanced prices on raw ma
terial necessitated temporary increases
in the retail price of tires and these
increases would have been permanent
had the shortage of rubber prevailed
and the high prices of the crude ma
terial continued. Fortunately Euro
pean Exchange was soon re-establish
ed and assurances were made that YES
sells would be available for shipment
of rubber from the various foreign
ports where rubber is accumulated.
The result of this re-opening OF
commerce was to make available adj
ditional supplies of rubber at approx
mately the old prices. and as soon as
this condition became apparent we
Immediately made the announcement
that we would give our customers the
benefit of the lower prices which we
are able to make on account of the
present cost of crude rubber.
So as far as the tire business is
concerned, the advance in prices was
made only when the cost of crude rub
Der was forced so high as to make
higher prices on the finished product
necessary. Then, as soon as raw ma
terial prices approached their previous
normal condition. the public was given
the advantage of the prices which pre-
eailed previously"
Tires at Ante Bellum Prices.
The Goodyear Tire & Rubber Co.
announce NO war prices on Goodyear
Tires" Mr.. F. A. sieterling, president
of the company. thus explains their
unique position:
1--WE advanced Goodyear prices. as
others did theirs, when the rubber
panic came. Almost in day crude
rubber rose in New York from So cents
per pound to much over a dollar. And, |
as most of the worlds rubber comes |
via London or Antwerp. We saw no
way out for time.
1.-The New York supply was too small |
to consider. European exchange was |
entirely suspended. Merchant ships |
had ceased running.
But we have an almost world wide |
organization. and we brought it at !
once into play. We are the worlds |
largest buyers of high grade rubber, so |
we have our own experts in London
Colombo. Singapore and Para.
1--WE cabled our London people to |
buy up the pick of the rubber there. |
c,1ir c11
they obtained 100000 pounds of the
finest rubber there. They bought be-
fore the advanee-before the other buy
ers saw way TO get London exchange
or TO bring the rubber here.
THAT big supply of rubber is now
nearly all on the way to the Goodyear
factory in Akron. 1t constitutes the
best of the London supply. On the in
ferior grades remaining. prices have |
since been rapidly advanced.
I'VE have since taken other steps TO |
insure us a continuous supply. all of
the highest grade rubber. In all the !
chief sources of rubber supply we have |
experts on the ground. All is being |
done that can be done to secure the |
best rubber. the exchange to pay for
it and the ships to bring 1t here.
The result is that Goodyear tire |
prices are now the same as in June |
This Is true. we believe, of no other |
maker, all OF whom have raised prices. |
We-are using the same grade OF rub
Der and the same amount of 1t as we
always have used in these tires.
I'VE are running our factory with |
three shifts of men, twenty-four hours
day. So long as we remain in this |
fortunate position on rubber, we shall |
supply tire users at before war prices
to the limit of our capacity"
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MOTORCYCLE NOTES.