The Washington times., 1922-06-11
seSSHHAAH##s BUSINESS An DSFINANCE g r
FINANCE
AND
BUSINESS
J business recovery genuineY
BY b. @. FORBES.

Is business recovery genuineY
IN these days Of skepticism II IL
gratifying to learn of one large In.
dustriai company which Is working
three shifts every week day. Yester-
day 1 ran across w. o. rutherford.
ylce.president OF the B. r. Goodrich
Rubber Company. and extracted
from him q lot Of very encouraging
information concerning changed
conditions which have been taking
place In the rubber industry, and
about the unusually bright pros
poets for coming nionths-
When the general business col
lapse befeI. what happened through
out the rubber industry was this. A
great many small concerns Of mush-
room growth. got into grave finan.
ciai difficulties. When the STANDARD
rubber companies began to reduce
their forces very drasticaliy, quite
a number OF trained men were able
TO pick up these small bankrupt con-
Germs for next to nothing, and as
raw material was abnormaIly cheap.
they began to supply goods at very
low prices. This competition nat.
urally affected the large companies.
with, the consequence that Tire and
other rubber goods prices were re-
duced to levels which gave consuIn-
ers extraordinary value. This pin.
priclsing competition, however. Is be-
coming less and less of q factor, az
q n. ~ - ...Iw ksa
low prices named by these transient
competitors.
what viii chiefly interest the pub
lie, however, Is the extent Of the i'm
proyement already enjoyed and the
Improvement within sight for this
basic industry viii be readily
realized when II n considered that
rubber enters into every form Of
transportation as well as into many
other lines OF trade-surgical goods,
footwear, railway trains, street cars.
aeroplanes, automobiles. buggies,
/ gas engines, water pumps, electric
apparatus, building construction.
/ etc. ~
Read these facts and figures con-
corning the. extraordinary revival In
Goodrich's activity, facts and Zig.
ures which are the more significant
and important, because they doubt.
less reflect recovery In the business
Of other leading rubber companies:
Last months sales increased APP
proximately $50 per cent over
April,s.
Compared with last year. May
business practically doubled.
Sales of cord tires since January
OF this year are double those Of the
first five months OF last year.
At this moment sales as>e running
al the. largest volume In the COM
pany's long history.
Although three shifts are worked
in both tire and tube departments,
untitled orders are piling up from
both dealers and manufactures
the company now has $4,000 active
dealers Throughout the country and
Goodrich tires are today standard
equipment for over sixty different
cars.
Export sales this year have been
running approximately 400 per cent
ahead OF a year ago.
Footwear sales this year are so
per cent better than in 1921.
The company estimates that June,
July and August demand win exceed
production by from 25 to 80 per cent,
thus making serious inroads into re-
serve stocks. Ne. ~
Sales OF mechanical rubber goods,
regarded in the trade as a trust.
worthy barometer OF business, have
so increased as TO require. produc-
ton on some lines within II per
cent Of the peak capacity estab-
lished I'm 1918. ss% p,
Investigations have revealed that
dealers stocks Of tires are unusually
low, 80 that the boom which the
automobile business is now enjoying
Ia boom which has reached pro-
portions beyond all expectations--is
Immediately reflected by the rushing
In OF larger orders to tire manutac-
turers. sa, -t.r,- .
These are very substantial and
very significant figures. are they
not7. 81
Mr.. Rutherford brought up one
basic thought which will interest
you. There are" he said. nearly,
as many cars in our city of Akron,
Ohio, as there are in the whole Of
the German Empire. The whole OF
Japan has only about 5000 carr.
The reason7 Because the ruling
classes are not anxious TO have the
ordinary people ride in motor cars,
"In this wonderful country !of ours
every sensible citizen wants 10
hasten the day when every indus
trious workman viii be able 10 az.
ford at least q modest automobile.
Production of the lowest-priced cars
is greater today than ever before In
our history. This means the steady
development OF a broader and broaal.
er market for tires and other auto
mobile equipments s 81
"who, therefore, can long remain
pessimistic over the rubber or auto
mobile industry in this remarkable
land?" ~
Incidentally. all authorities look
for higher prices for raw rubber
once the surplus supplies, stimulated
by the fancy prices ruling during the
war, have been worked off. This,
however, may take some months
longer Meanwhile every user Of an