Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-09
SENTIMENT BETTER
IN AUTO TIRE TRADE.
Prices Show No Signs of
Neutrality-suspicious. Sup
ply Position Good.
BY j. c. ROYLE.

AKRON, Ohio, February 9.-The
tire plants of the Akron district are
working at between 80 and 90 per
cent of capacity today. That means
they are turning out around 900
tires daily. Practically all the work
ers are employed. That statement is
based not only on production figures
Of the plants themselves, for some do
not make public their output, but on
the power curve of the Northern Ohio
Power and Light Co, which has all
but one or two of the producers as
customers.
r. G.. Mangold of the power produc-
ton department of the company said
today sales of current indicated that
tire production was approximately IS
per cent of capacity He forecast,
moreover, that power usage in March
would equal or exceed that of any
month in 1926 except October.
Sentiment Is Improved
Opinion among men in the industry
here seems to be unanimous that SEN
timent has improved radically in the
last two weeks. Factors contributing
to this feeling have been the better
prospect for production of automobile
units, with consequent original equip
ingness of the public all over the
United States to buy requirements.
This latter trend has been aided by
the fact that tire users who patched
and made tires do" during the uncer-
tain markets of the past year are now
under actual necessity of new equip
ment. Also those who bought cheap
tires have found that the latter We're
LOADED" with reclaimed rubber to
such an extent that they did not give
service and must be replaced. The
buyers of cheap tires are returning to
the producers who have maintained
quality. The latter realize that lost
reputation is the hardest thing in the
world to regain. Rubber dealers here
say that the tread of some of the
cheap tires could almost be peeled off
with a thumb nail. Finally, the trade
is now confident that no further cut
Of prices is in prospect and that the
public is bound to realize that wait
ing will afford no advantage.
Price Cut Unlikely.
There is no price cut in prospect,
but the producers still find many a
cloud to dim the rosy outlook. They
made a lot of tires in 1926, but they
did not make a lot of money. Compe-
tition was fierce. Automobile makers
were in a commanding position when
it came to buying original equipment
and many contracts afforded only the
bareat margin of profit. If it was the
intention of some companies to drive
the little fellows" out the move was
not successful.
One crude rubber man. who does
business with big and small alike, de-
al i
place for the smaller manufacturer
provided he were we'll financed. None
the less, it is impossible for some of
the small companies to buy raw ma
terials except when the order has I'M
questioned financial guarantee.
1t is apparent that higher profits
must come from inside the plants
rather than from the public unless
prices are radically advanced. The
latter policy always carries with it
the danger of rousing a determined
buyer opposition.
Many Favorable Factors.
Yet there are many favorable
factors. Crude rubber is fairly low
and the price is comparatively stable
and promises to remain so. Cotton is
low and SO are prices of fabric which
goes INTO tires. A majority or the tire
makers are building additions which
will greatly increase capacity and
permit larger quantity production
with corresponding decreases in cost.
Individual efficiency among workers
is rising and demand promises to be
active.
In the meantime Akron is reaping
the benefit of large employment, big
pay rolls and high buying power But
cheaper prices are not regarded as
either possible or probable. Although
most of the high-cost rubber which
hampered profits in 1926 has been
worked off, some OPPORTUNITIES still
have that factor to contend with.