Mountain advocate., 1920-08-13
VoT MUCH HorE ron
REDUCTION IN TIRE PRICES

Car owners who are holding back
on the purchase OF tire equipment in {
the hope of a reduction in PRICES
are likely to be disappointed. There Z.
is nothing in the tire manufacturing
situation to indicate a downward
trend of tire costs.
On the contrary, "hreak' will
necessarily mean the advancing
of prices seems inevitable.
A resume of the tire industry and
the conditions under which It has de-
veloped in the last decade, caunns
the casual observer to wondar, ~
fact, that tire prices have hsJ, al
ready begun to climb steadily
Unless one studies carefully the,
underlying reasons for the success
full checking of tire prices In face OF.
overwhelming advances in virtually
every other commodity, IL is rather.
amazing to note that prices are now.
much lower than they we're ten years
ago. 1t is still more interesting to
compare prices of standard manu-
facture tires today with prices OF the
same product at the beginning Of the
war. Good tires now cost no more
than in 1914. There has not been
an appreciable advance in the last
ten years. And yet the quality Is
higher and the purchaser gets more
value for his money than ever before
When one considers that prices of
raw material, labor and Transports
tion have made more tremendous
leaps in the last five years than dur
ing any period in manufacturing
history the natural query concern
ing the manufacturers is How do
| they hold down the prices?"
And from this question comes the
answer to another, "Will the prices
go down."
1t does not appear that a decrease
is likely. q,
Manufacturing geniue, which hasV
about reached its limit, has kept
down the cost to the tire user. The
standard manufacturer has combat
ed price increases by developing his
processes. He has expended mil
lions of dollars in the installation Of
new machinery, better machinery,
and new methods. He has brought
his output to maximum and has
made his profits on a quantity mar
gin. He has smashed overhead ex.
penses by use of these weapons and
by putting his distribution on such
broad basis as to make it econop
ical.
Output has about reached its n
ith. So long as demand continues
strong there is a possibility that tire
prices will remain on their present
level But if a general determine
alton to hold out" should spread
among car-owners it is more than
probable that such an attitude would
tend to create a reverse effect to
the one desired and send tire prices
rocketing. -.
An illustration of the surprising
facts recited here may be obtained
from the following table OF price
comparisons compiled recently by Q
leading tire and rubber COMPANY
Altho this table, of course. shot
only the quotations of that partit4-
lar company. it may be accepted that
it is an average because the company
is considered one of the leaders In
the industry and is a standard man
ufacturing concern.
Size of Tire and Tubes, 3Ox3, 1910
price, $27. 7.6O-$5.65; 1920 Price,
I$1S.75-$3.l5.
SOxS l-2 $S6.75-7.75; $22.sO-
3.76.
S2xS l-2 $SS,9O-S.O5; s2s.75-
425.
Blk 4. $51.9O-s.SO; ss2so-
sos.
sSx4, s54.1O-1O.4O; sss.2s-
5.45. >, ...
s2x41-2. $66.5O-12.25; 5000
-6.G5.
S6x41-2. 75,OO-1S.SO; $3.50
-7.4O.
BANS. $S7.OO-15.2O. -,
S7x5, $95.2O-1655; 6s.257
$50. -Firestone News.
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