June 1, 1921 



THE INDIA RUBBER WORLD 



683 



of as able men as can be found in any organization in this 

 country. What has been achieved the world knows. The nation- 

 wide slump in business last fall brought our business to the 

 verge of disaster. Since that hour I have had but one purpose — 

 to save this company from a receivership. That was accom- 

 plished and the new management inherits a business soiuidly 

 financed and with the finest working organization of any company 

 in the rubber industry in the world. 



"My successor is E. G. Wilmer, of Milwaukee, a young man 

 of line legal training and broad experience in operating business, 

 and with the return of the world to normal conditions there is 

 no reason why Goodyear cannot move forward to a higher plane 

 than it has yet achieved. The bankers in control made me an 

 exceedingly generous offer to continue with the company, which, 

 after careful consideration, I felt justified in declining. 



"What I am going to do next I do not know. Since I left 

 school 44 years ago I have labored hard, enjoying my work all 

 the way along, through all its difliculties, up to within the period 

 of the last six months. In truth, I have been tired during that 

 period. The burden is now all off my shoulders. Except for a 

 few days, I have had no vacation for over two years. 



"I am going to clear up some of my personal matters next 

 week, then go away for a month's rest, and when I come back 

 I shall go to work — at something." 



THE RUBBER TRADE IN OHIO 

 By Our Regular Correspondent 



FEW events in the rubber industry during the past three years 

 have brought about more discussion than the unexpected cut 

 of 20 per cent in tire prices by The B. F. Goodrich Co., which 

 has caused every rubber company in Akron and most of the 

 others in the United States to readjust prices. The angles from 

 which the price cut is viewed by rubber men are as varied as their 

 interests, and when the opinions of bankers and stockholders are 

 added to those of the rubber men a great maze of contradictory 

 opinion results. 



Statements from the other companies were unavailable be- 

 yond the fact that cost records are being looked over to see if 

 so drastic a cut was justified by decreased material and labor 

 costs. The result becomes apparent in the announcements from 

 the other factories that the reduction on cord tires will average 

 about 10 per cent, on fabrics about 15 per cent, and on tubes about 

 20 per cent. 



The Goodyear Tire & Rubber Co. frankly stated to dealers 

 that neither decreases in cost nor previous prices warranted a 20 

 per cent reduction and therefore its prices were reduced only 

 to a new average, and this was followed by the other companies. 

 Therefore tire manufacturers are divided into two groups, one 

 following the lead of Goodrich in a 20 per cent reduction, and 

 the other virtually following Goodyear with a smaller reduction. 

 The reduction by Goodrich and its followers brings the decrease 

 in tires to more than one-third in six months, whereas, the other 

 reductions will average close to 30 per cent during the same 

 period. On the new basis prices are back to 1913 levels and ap- 

 pro.xiniately 40 per cent below the 1910 levels. 



Rubber men point out that the value in tire mileage has more 

 than doubled since six or seven years ago ; that with lower prices 

 than in 1910 and mileage more than doubled, the automobile owner 

 is today purchasing tire service at a lower price than at any time 

 in tlie history of the automotive industry. Five years ago it was 

 estimated that tire costs for each wheel of the automobile averaged 

 between one and one-half and two cents a mile. Today the same 

 costs are now believed to be three-quarters of a cent a mile. 



Although all Akron manufacturers have made price adjust- 

 ments, they do not all believe the cut was advisable or the time 

 was propitious. With large quantities of raw materials on 



hand, and only a small cut in the price of labor and practically no 

 decrease in overhead e.xpenses, the thing to have done was to 

 stand by the former price levels until the raw materials were 

 worked off and wage adjustments had been completed, together 

 with adjustments on freight rates, which are a large factor in 

 the rubber industry. 



The manufacturers who lead in the cut, however, take the 

 position that the readjustment of the whole business and in- 

 dustrial structure depends entirely upon convincing the public that 

 prices of all kinds have hit the bottom ; and that in this way 

 the buyers' strike which lead to the depression will be effectually 

 broken. 



What the general price reduction will mean in volume of 

 business remains a matter of speculation. It is still too soon to 

 prophesy, but every rubber company has redoubled its energy 

 to .get business in large volume on the basis of the price cut. 



TIRE PRODUCTION CURTAILED 



During the past month tire production reached its peak. 

 Firestone was making 20,000 tires daily, Goodyear 19,000, Good- 

 rich 15,000, and Miller half of normal capacity. The smaller 

 companies were also active and many had reached 50 per cent 

 normal production. Despite prevailing optimism, the possibility 

 that a recession of tire demand might take place in the near 

 future led manufacturers to look forward to it. 



The slump came during the last week in May, and more quickly 

 than was anticipated. The Goodyear Tire & Rubber Co. an- 

 nounced on May 24 that a general curtailment of tire production 

 in the Akron district will take place immediately, although defi- 

 nite figures were not given out. It is estimated that the Goodyear 

 company will lay off over 1,000 men. The reduction in production 

 will probably be gradual beginning June 1. 



Firestone has laid off several hundred men and Miller has 

 ordered a reduction of 20 per cent in its office force. It is ex- 

 pected that other tire companies may make similar reductions in 

 office and factory personnel, pending improved trade conditions. 



NEW GOODYEAE OFFICIALS 



E. G. Wilmer, of Milwaukee, Wisconsin, is the new president 

 of The Goodyear Tire & Rubber Co., succeeding Frank W. 

 Seiberling, who retired with his brother Charles W. Seiberling, 

 on May 13. Paul W. Litchfield remains as vice-president and 

 factory manager, and George M. Stadelman remains as vice- 

 president and sales director. Edwin Palmer, formerly treasurer 

 and recently secretary, has resigned. H. A. Springford is 

 treasurer and Charles A. Stillmaii. secretary. The directorate 

 consists of J. P. Cotton, New York, N. Y.; F. W. Litchfield; 

 Grayson P. Murphy, New York, N. Y.; J. R. Nutt, Cleveland, 

 Ohio; Robert C. Schaffner, Chicago, Illinois; A. A. Schlesinger, 

 Milwaukee, Wisconsin; George M. Stadelman, Ralph C. Van 

 Vechten, Chicago, Illinois, and E. G. Wilmer. 



The new management took charge officially on May 13, although 

 the stockholders approved the sale of the $30,000,000 of 20-year 

 8 per cent bonds which had been sold, and the issuance of a 

 like amount of debenture bonds with similar terms, at the 

 meeting held May 11. The new management took hold with 

 efficiency at the highest point in the history of the Goodyear 

 company and success now seems assured. 



AKHON NOTES 



The Firestone Tire & Rubber Co., Akron, announces that 

 every one of its several thousand employes has become a stock- 

 holder, each subscriber taking at least two shares, while there 

 was an over-subscription of almost 50 per cent on the new allot- 

 ment of employes' stock, within twelve hours. The company em- 

 ploys more than 10,000 people, and claims to be the only organiza- 

 tion of its rank on record as having every man and woman on its 

 pay-roll a shareholder in the company. The total number of 

 shares subscribed for by employes is now close to 45,000. A pro- 

 duction of 20,000 tires a day was reached in Many and practically all 



