New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-04
Tire Prices, Due
ToHigher Costs,
To Rise Again
Rubber Makers Likely "a
Announce General
Advances
Auto Men Hit Too
Materials Hard to Get-En.
bargoes Hold $l0,000,OOO
in Motor Cars in Stor.
age in Detroit

AlAuoNth Nht NAiN AhNANaret IN fN
Diamond and Goodrich tires. VIII.
were made effective last week, fel,,S
/ in a general way, to bring the full Er
+ Of these concerns in most cases upn
the figures announced around the fre
of the year by other importan. In,
companies, it is thought that they a
not by any means mark the end Of IA,
increases in automobile tires in f,,.
eral.
Tie statement OF the Goodrich con.
pany. which showed a larger volume e,
business done the last year, with u,
duced profits. is the index to the as.s
mobile tire business in general. Tin
manufacturer are confronted by hi,s.
er prices for the elements used in tss,
goods. and IN order 20 maintain a pr..
sentable profit rate, they will be foreet
il appears now, 20 charge more. n
will not be great surprise 70 Sc,
tires going up again within moaa
or-so.
The automobile buyer is confronted
not alone with that prospect, but vii
the chance that motor car prices viii
show an upward trend. A products,
man for one of the largest compania
in analyzing the situation, says Tax
the price increases already aunourui
by some of the motor car compana
cannot, as far as he Is able 70 follor
the situation, even meet their actual ia.
creased costs. They have been afraid "a
put their prices as high as they shou!
go, he says, for fear of losing Aei,
markets.
Practically all the automobile con.
panies are getting more for their can
than they were a year ago. II the pros
pect is that they must go higher, IA,
automobile buyer who gets his order /,
soon will profit by the early action.
The freight car situation, abog,
which so much has been written, is [,
menace not alone TO those dealers vi,
are hungering for cars now that u,
spring season is opening. It's really b,
effect, this production man says, is q
the materials market. Automobile MAJ
ers are considerably hampered in thet
efforts 10 produce cars, because thg
cannot get the supplies on which the.
manufacturing schedules depend.
Not only are materials costs high a..
advancing, but the automobile man
facturers in many cases are ben;
forced to have their goods expedite
by express. This means q further O.
dition to the costs Of manufacture. 1
/ very general rotrcnchment and redV
ton of costs wherever possible is IL
natural result.
More than Sl0,00O,0O0 worth Of suit
mobiles arc tied up in Detroit beesss
of embargoes declared by thirty IA
roads since the beginning of the U-ber
war. These figures are based or :
statement made by J. $. Marvin, ger
eral traffic manager Of the NsldrA'
Automobile Chamber of Commerce H.
Marvin found that there are more lar
$4,000 empty freight cars tied % .
Chicago.
The Packard company has spprcr.
mately 100000 worth of cars tied =
and is driving its products 10 Toles,
Cleveland and Columbus. The Fox
Motor Company, which requires q
least fifty empties daily. is now secgs
ing from six 10 ten each day. Dotr
DfIfHtlo are NfHNlNk AHNN uilhAl D"
driveway" rule and are thus snippg
an average Of $50 a day. The CadilE
Motor Car Company has 1000 cars O.
dered. paid for and ready for shipme,
which it has been forced 10 place Z
storage because Of lack OF shipping n
cilities. The Paige-Detroi, compass
is in tho same position.
The Chalmers company has 300 car
in storage and is threatened with 1
shortage of material More than ~
cars lie idle at the Hump Motor Cor
pany plant, with little prospect OF earl
shipment, and the company has bee
paying express charges of $3.50 al
in order to get materials from Cls't
land alone.
Another way in which the indus,7
is being affected by the freight a.
shortage is that il is keeping moro
away from the motor car manuisetr
crs who have cars on the road but y
yet in the hands of dealers. One w
Western manufacturer IS reported
have $4,000 out in sight drafts agar
bills of lading for cars that have ~
shipped. but are held M in transi. y
til it is possible for the dealers 70 9
their cars this manufacturers cspA
and that of others like him IS held 81
Of service.
Investors in automobile seear.s
and those who have been stoekholceh
Of companies which have not yet Pc.
dividends are likely 10 have TO wal
while longer for their return, N "
view of this man in the production e's
He says that most automobile uiiF
facturers realize the necessity OF KEEP
ing their funds in hand against the =
cessity Of further disbursement. ~
materials. Although enthusiastic APO.
the eventual future Of the business,
is almost every one who Is IN te-a
with the automobile industry, he iess
certain that for the present things "
not be so glowing