The sun., 1916-12-17
HIGHER TIRE PRICES
DUE In JANUARY
It Is Expected That Economies
Will Hold Raise to Is
Per Cent.

After . careful study Of the tire aues-
tSon . writer in Automobile Toptes re-
Views the situation A. foilows:
II seems practically certain that an
advancs In tire prices viii take place
about the hrst Of the year. A. . matter
Of fact II seems Inevitable for the sound
est Of reasons. costs Of labor and ma
.erials rendering q readjustment impera-
tive. All Of the tire companies may no,
IN the advance at the same
time. a. there IL likelihood that at least
one Of the very large and very we'll or
ganised manufacturers may adhere 10
present lists for At least two or three
months to come. That price policies will
have to be readjusted In a majority OF
cases. however. seems practically as
sured.
There are not lacking men In the tire
buiness who believe that ultimately
crude rubber Will become Of secondary
importance beside fabric. the proportion
ate worth OF the latter commodity hav-
ing advanced very rapidly during the
last few months. How serious the con-
dition In In revealed by \ statement OF
the present situation. Tho 1917 crop OF
Egyptian cotton cannot possibly get into
the mills OF the American tire makers
before the middle OF January. 1918. The
crop OF American cotton. only small
quantities Of which are employed by the
tire makers. together with the sea ISL
and. will not be available until the mid
die Of October. 1917. Between the cot
ton field and the tire factory intervenes
a long period Of sen soning. spinning.
conditioning and weaving. and quite
apart from the question OF supply. as
relating to quantity and quality. the
labor and materials situation calls for
readjustmen,s Of their own AFFAIRS by
the intermediate crafts. SO far as the
fabric question alone 10 concerned. there
fore II looks as though there was no
relief IN sight for at least two years.
During the past year labor has risen
not only In the obvious mat
ter Of wages alone but In respect to var-
able conditions OF employment result
ing from the general unrest Labor has
been more dificult TO obtain. less stable
snd less productive. The manufacturers
version Of the high cost Of living. there
fore, is that a dollar will not buy as
respective Of the nominal rate OF wage.
This consideration has resulted In Rd-
vancins the labor cost in tires about 1sL7
per cent. while in the same period the
average price Of matertals has advanced
more than 80 per cent. Overheads have
risen Is per cent. also. making an aver
AGe Of about :5 per cent advance In the
total cost OF the tire. as matter Of fact
despite the employment OF tho most rigid
economies
Due TO these economies. however. par
ticulariy those made In tho way Of revis-
ing selling and distributive systems. the
actual advance TO be made will have to
absorb only a part OF the total increase
In cost Of manufacture. For this reason
IL is probable that about Is per cent. will
mark the average advance In lists.
Even SO. II is not unlikely that some OF
the smaller companies will have before
them an exceedingly perpiexinE problem
when present materials stocks are de-
pleted and II becomes necessary to re-
plenish them at prevailing prices. The
pinch is likely TO he felt during the last
six months of next year. although even
to-day II In not possible to purchase tire
materials at anywhere near the market
ranges OF a year ago.
The association OF rubber and tires has
always seemed 20 closc that 1t Will come
as a surprise to most OF those who dea
| in tires to find that rubber itself has been
! reiegated to second place. While to-day
rubber rules around IS cents with the
| future expected to bring II even lower
+, this does not promise much relief. for In
any event II will not compare with the
! advances in sea island and Egyptian
cottons. which oven now are selling in the
neighborhood OF $40. Interruptions In
shipping dsis to submarine activities In
the Mediterranean and elsewhere and
other considerations practically make
certain a continuance Of hixh prices for
this material, at least while the war
lasts.
In the rigorous overhaulin< and In
spection OF their affairs which the tire
makers are constantly giving all phases
Of their business still another condition
In faced in the reduction from larger e
smaller prevailing sizes OF tires. Where
a year or more ago larger sises prevaile
more generally, to-day smaller sizes rule
which means that the tire maker "
producing a given total number will
make less profit than ne would hav,
made a year ago.
This. In turn. has given rise to a con
templated revision Of prices based on II.
actual cost Of different sizes. instead .
the present illogical basis Of tire prices
based on general classification wiihou
taking into account the actual cost NJ tn
various sizes. In other words. one siz
in the past has helped to carry another
but with the general revision OF pric
lists II IL figured that the readjustmeni
besides taking account Of increased coste
should also place the marketing OF tn
product on an equable basis. thus reliev
ing the industry OF any possible burie