The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-06-18
PRICE-SL|CING
WAR MENACES
TIRE DEALERS
2 to ID Per Cent SIashes
Place Retailers in
WObbIy Spot.

A tire price-cutting war, reducing
prices from 21a to IA per cent for
Indianapolis motorists, is under
way, a survey here disclosed today.
Dealers said the price war, coupled
with affects of the new tariff bill,
will seriously jeopardize business,
reacting unfavorably both to dealers
and manufacturers.
Decreases depend on the sizes and
previous prices of the tires. Indian
apoliS distributors said the reduc-
tons are cutting into their profits
seriously.
During the last year there has
been mortality of 300 tire manu-
facturers with business at a low
ebb and in forcing a reduction of
prices it appears that the big manu-
facturers are attempting to force
small Independents to the wall" de-
clared w j. Coughlin, owner of the
General Tire Agency here, which
reduced prices from to 7 per cent.
Ordered by Manufacturers
r. j. Boesnecker, a Fisk Tire
Company representative, who an
nounced price reductions ranging
from 3 to IA per cent, declared the
cut is being ordered by big man
ufacturers to stifle competition"
Art Rose of the Miller Tire
agency declared that never before
in his twelve years of tire selling
experience has the retailer been in
so precarious a position.
1.-The price cut was forced when
a well-known mail order house an
nounced it would pay the parcel
post on all tires shipped" Rose said.
Postage averaged s per cent of the
cost of the tires and with the mail
order house selling SAC 100000 worth
of tires in 1929, it made a large
item"
Tariff Danger Signal
If something is not done to avert
price cutting, the dealer simply will
have to give up in disgust" Rose
said.
Rose pointed out the new tariff
bill is expected to embarrasS further
tire manufacturers because of in
creased rates on long staple cotton
imported from Egypt.
Eighty per cent of the cotton
used in the high-grade tire is i'm
ported he said. with the in
creased tariff rates the cost of man
ufacture is expected to increase 20
per cent, yet there are price reduc-
tions.'
The new lower tire prices will
have the effect of weakening the
organized system of service to the
public, in the opinion of w. O.
Rutherford, president of the Penn
Sylvania Rubber Company, an in
dependent manufacturer who has
issued statement setting forth
conditions.
Doomed to Disappointment
"Those within the industry who
expected lower prices to stimulate
tire buying, are, in my judgment,
doomed to disappointment" Ruther-
ford's statement declares. Tire
prices are extremely low, so low in
fact that the rubber industry is
earning less than one per cent on
its. invested capital. New low prices
practically annul what little chance
the industry has to make even
the vestige of a respectable showing
in 1880.
"At present there is no public de-
mand for lower price, nor is there
any public opinion that prices are
too high, Consequently a reduction
in prices will bring no rush of buy
erS into the market nor does there
exist new field to absorb the adj
ditional volume needed to enable
the industry to earn an amount
equal to that before the new price
schedule became effective.
Among the companies which have
reduced prices are Goodyear, Ajax,
T-;-I- NF,1l1,.