Evening star., 1923-06-13
CUT IN TIRE PRICES
ST|RS UP INDUSTRY
FIrestone's Action May Be
Met or Exceeded-Motor-
lists vitaIIy Interested.
BY j. C. ROYLE.

Special Dispatch to The Star
NEW YORK. June ia merry lii
tie war is threatening In the tire in
dustry, precipitated by announcement
by the Firestone Tire and Rubber
Company Of cut of 10 per cent in
prices. 1t Is known today that ex-
ecutives of other tire manufacturing
companies have considered at length
what course each will follow. and
speedy action on their part is ex-
pected
No concerted movement is antici-
pated. but rubber importers expressed
the nrm belief that the principal
large producers would certainly meet
tne cut by Firestone, and that they
might retaliate by pressing prices
still lower.
Loss OF Profits Seen.
Many representative of tire manu-
facturers have expressed the belief
that such cuts will mean losses for
all. in view of the present price of
rubber. the high level of wages and
the cost of other materials. Cotton,
one of the principal materials used,
Is up, and the trend, they feel. is for
still further advances They saw
tires cannot be sold at figures under
the present scale and still return an
adequate profit.
Rubber importers take a different
View. One man prominent in the raw
rubber trade, pointed out today that
the price of rubber, now quoted at
"a cents pound, has fallen 10 cents
a pound from the high point Of the
year reached January 25, a drop OF
nearly 80 per cent.
A very considerable portion of the
Flrestone output, this importer
pointed out. goes to automobile man
Fo forfw
long-standing contracts unaffected by
this price cut. All the manufacturers
are known to have large stocks OF
tires on hand. or in the hands of
dealers, for the late spring has retarded
sales.
Efforts TO Boost Sales.
Because sales have been slack some
manufacturers have been going after
business in late weeks on the basis
of the January prices. which were
In erect before the cut of 10 per cent
TO present figures: The importer
ply was the first publicly to seize the
opportunity offered by the fall in
rubber to take a step to stimulate
sales for replacement purposes.
1t is well-known fact that close
cooperation has not existed between
producers. Harvey Firestone was
chief sponsor for the movement
against the British regulations re-
stricting the shipment Of rubber
from Borneo and the East Indies and
in favor OF movement for America
TO grow her own rubber. This atti-
tude was not supported by other tire
men.
Importers produced accurate fg-
ures today showing that in spite OF
the British restrictions, 10000 more
tons OF rubber had come int, the
United States since January / than
were imported in the corresponding
period of 1922 when no restrictions
were in effect This Is accounted for
by the fact that Great Britain has
not been able to enforce the restric-
tions.
Reasons for Firest0ne's Move.
The putting of the regulations into
effect was left largely in the hands
Of the planters themselves, and some
Of these, it is charged, could not re-
tage OF the high prices and evade the
regulations. Many shipping permits
are believed to have been forged.
Dealers in crude rubber assign two
reasons to the Firestone move. The
first is the effect ii might conceivably
have in inducing the British govern
ment to loosen the restrictions, and
the other is the belief that 1t will be
can make the restrictions proof
against Illicit shipment and that in
the meantime the price of rubber will
remain low.
Dealers in general agree that the
move means that manufacturers will
cut down buying of rubber to the ut
most and that they will reduce pro-
duction and working forces until
present stocks are moved.
Motorists Profit by Cuts.
Amy cuts made in the possible price
war, of necessity, must be retroactive,
at least thirty days back far
dealers are concerned. For example,
a Firestone dealer who has a stock
on hand cannot be expected to sell
tires bought within the past thirty
days at the old price, when the Fire
stone Company is advertising exactly
similar products 10 per cent cheaper.
Whatever the outcome, the motorist
who jacks up his car to replace o
blown out tire in the next few months
probably will not have to feel within
10 per cent as bad as he would have
last week
Copyright. 1921