San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1926-01-31
H c H RUBBER
I THREATENS
CAR PRICE
Dodge Reduction, However,
Leaves Industry in
Quandary.

Dodge Brothers announcement of s
tremendous price reduction was Q
bombshell in the ranks Of the automO-
bile industry, developments have
proved. reports the Wroten-Hundley
Motor Company.
The announcement. made last week
declared that the new low prices would
be made public on January Z, but that
they would apply retroactively on all
retail sales made after midnight Dc
ccmber 10.
Completion Of S10,000O00 expan-
| sion program, including new buildings
and equipment Of great magnitude
were cited as the reasons that make
the reductions possible, even though
improvements are being made con-
stantly in the quality of Dodge Broth
ers product.
Newspapers in New York and other
metropolitan centers comment freely
on the fact that many other manufac-
turers were contemplating increases in
prices on account of the enormous adj
vance in rubber costs. The Dodge
Brothers announcement leaves them i'll
quandary. as it would not seem con-
sistent to the public if one manufac-
turer were able to make a big reduc-
ton and others simultaneously an
nounce they were forced to increase.
PRICES MAY RISE.
The following extract from an ar
ticle by f. Y. Watson. automobile ed
itor of the Detroit News, is typical
of the comments on the rubber situa-
ton and the threatened general adj
vance in automobile prices.
Automobile manufacturers. accord
ing to n survey of the Detroit factories
made last week, face the possibility of
being forced to increase prices of cars
By January /. because the prices of
tires have been rising continually
throughout the year, due TO the British
crude rubber restriction. Many of
them believe that the increases will be
such as to wipe out any benefit the
public is TO gain from the two per cent
Federal excise tax reduction ratified
by Congress.
Up to now the tires put on new
cars by the makers have been bought
on the basis of crude rubber prices
that prevailed months ago, when the
crude rubber rate was as low as 20
cents a pound. Since that time, ow-
ing to the limitation placed on export
by the British government, prices have
risen by leaps and bounds. They range
from 81 to S1.10 per pound.
ADDED EXPENSE.
This makes it cost the tire makers
from IS to SO more to produce each
tire in various sizes. The consequence
is that the automobile makers in the
medium price field will have to pay
the tire makers from $50 to $50 more
than they have been doing this year to
equip every car they turn out. This
added expense must naturally be taken
into consideration In estimating retail
prices and it will be up to buyers Of
new cars to dig down for an extra
amount-how much has not been de-
termined yet.
The price relief to be gained from
last weeks two per cent tax reduction
on n $500 car on which the tax has
up to now been $50, will amount to
approximately SD, while the very
minimum added cost under the new
tire price schedule approximates S3S,
according to calculations.
"The factory purchasing agents can
see no way out of it; neither can the
tire makers"
Dodge Brothers did. however. and
have so announced to the world.