Februarv 1, 1921 



THE INDIA RUBBER WORLD 



35') 



stocks oil hand when the depression struck the automotive and 

 tire industries have dwindled considerably during the past nve 

 months. 



Indications are that ihc bottom has fmally been reached and 

 that slowly hut surely the industry will work itself -back to a 

 more norma! basis, with but little hope of getting back to the 

 position it occupied in July of last year. The turn of the year 

 saw in .\kron a slight gain in i)roduction. Most of the factories 

 made arrangements to lengthen the working hours, and thereliy 

 increased production from 15 to 50 per cent, although several of 

 the factories actually decreased production for the month. Manu- 

 facturers generally look upon the situation with more optimism 

 and believe that a few months will see larger production. 



Conservative estimates by rubber men at the first of the year 

 placed the unlilled orders for January sliipment on the books of 

 the larger Akron factories at $50,(XX).tX)0, and considering the 

 slightly increased production, and the fact that many tires still 

 reiriain in stock, it would not be surprising if shipments this 

 month amount to at least that figure. 



That business can remain at this almost peak figure for the 

 year is not believed by anyone in the industry, because the orders 

 arc looked upon as accumulations held up until after the taking 

 nf inventories by the dealers and orders from automobile manu- 

 facturers in anticipation of their needs during the next few- 

 months. 



.\kron bankers and rubber manufacturers have used every effort 

 to avoid a price war in the tire business and indications now are 

 that their efforts will be successful. 



When the crash in the tire business came many of the smaller 

 companies unloaded large lots of tires at job lot prices, and while 

 llie larger companies continued to have on hand large amounts 

 nl raw materials purchased at peak prices, the smaller rubber 

 companies could go into the cheap markets and purchase supplies. 

 With cheaper raw materials and cheaper labor these smaller 

 companies were in a position to go into the tire market with lower 

 lirices, and for some little time it appeared that in their determina- 

 tion to get business they would do so. in some instances at prices 

 not profitable to themselves. 



However, the more conservative heads of the smaller companies 

 felt that while these tactics might work for a while, they were m 

 business for a legitimate profit, and so decided to maintain prices 

 at the decreased levels placed by the leaders in the industry. 



One Akron banker pointed out several times that if tire manu- 

 facturers operated on a conservative basis, and each and all went 

 •iftcr business with a determination to get his share at a profitable 

 figure the industry would revive, whereas if the varioiis companies 

 went out to sell goods regardless of profits, with the main thought 

 being the getting of business, the rubber industry was due for a 

 worse crash than it has experienced. 



Among the interviews given out by rublxer men regarding better 

 business was the statement of W. O. Rutherford, sales manager 

 of The B. F. Goodrich Co., to the effect that the dealers' stocks 

 are practically exhausted and that the tire manufacturers must 

 produce goods to meet the demand of the 9,000,000 automobiles 

 in the United States if they are not to be run on the rims. 



It is true the upturn was n.n a- large the first of the year as 

 was anticipated by rubber men. I Unry 1-ord suddenly and un- 

 expectedly closed his factory, which meant a decrease m tire sales 

 and had a general demoralizing intlueiice on the automobile manu- 

 facturers and in turn on the tire manntacturers. 



AKKON NOTES 



That a spirit of optimism prevails is indic.itcd by the erroneous 

 stories circulate<l regarding the number of men needed in Akron. 

 These stories gained wide credence, with the result that Akron 

 manufacturers have had to use drastic methods to inform the 

 country that no men are needed and that former employes will 

 be given preference when men are again required in the industry. 



That the days of extravagant wages and the "sMk sliirt" era in 



the rubber industry in .\kron are over is inade plain li\ the 

 announcement on January 4 of a decrease of 12"/ per cent in the 

 wages at The Goodyear Tire & Rubber Co. and a reduction of 15 

 to 20 per cent in salaries in the office. The reduction was favor- 

 ably voted upon by the Goodyear Industrial Assembly, made up 

 I if representatives of the workmen in the factory and tin- men 

 and women in the office. 



More than one hundred business men in Akron sent letters 

 containing the season's greetings to F. A. Seiberling, president 

 of Tlie (ioodyear Tire & Rubber Co., just before Christmas. The 

 movement was spontaneous and the replies from Mr. Seiberling 

 indicated that the spirit with which they were sent was thoroughly 

 appreciated. 



The Akron automobile show <luriiig the last week of 1920 was 

 one of the most successful ever held in the city, in spite of the 

 financial depression. For some little time officials of the sliow 

 association hesitated to put on the exhibition, but reports from 

 practically every dealer who bad space indicate that a very fair 

 business was done and that a large number of orders were booked 

 (luring the first few weeks of this year. 



Henry G. Lubke, export manager of the General Tire & Rubber 

 Co., returned from Europe recently with sufficient business to 

 make increased production in the factory necessary. Mr. Lul)kc 

 .spent five months in Europe and states that conditions arc rapidh 

 improving, except in Germany, where the question of indcmnit\ 

 is holding back recuperation. He believes that export business to 

 Europe will be as great during the present year as last, which was 

 the banner year for his company. This is the fifth of the "Big 

 Five" rubber manufacturing companies in Akron employing nor- 

 mally more than 1,000 men and having sales running well over 

 $5,000,000 a year. A large portion of the business is done in 

 foreign countries. 



The Portage Rubber Co., of Barbertoti, Ohio, in the .\kron 

 district, is working upon refinancing plans involving $1,500,000 to 

 take care of ready cash needs in the business for the coming year. 

 .\t the time of writing, the officers of the company were still 

 negotiating with eastern capitalists and bankers for the finances, 

 lint indications were *hat the plans would be consummated before 

 the end of the month. 



At the time of the postponed annual meeting of the stockholders 

 the directors and the president, M. S. Long, were given authority 

 to use their discretion to bring about the refinancing of the com- 

 pany. Mr. Long informed the stockholders that more than one- 

 third as much business was on the books of the company as was 

 done during the whole of the past year. The coitipany did $5,000,- 

 000 worth of business during 1920, as was shown in the annual 

 report given out at the regular annual meeting in November. 



The company has outstanding at present $1,535,000 wortli of 

 preferred stock and $2,765,000 worth of common stock. Some 

 stock has been subscribed, but not paid for and is not included in 

 the figures. During the past two years its business has greatl\ 

 increased under new management and the company is generallv 

 looked up as being in a comparatively strong position. 



The B. F. Goodrich Co. was the host to the American Institute 

 of Electrical Engineers at a convention held in Akron and Cleve- 

 land, January 14. The engineers took luncheon at the company 

 dining room and made an inspection trip through the factory. 

 The principal tojiic of discussion at the meeting was the application 

 of electrical jxiwer to the rubber industry. 



The refinancing program of The Goodyear Tire & Rubber Co.. 

 involving $50,000,(KX), which has been under way since late in the 

 Fall, has not been completed. .Vnother meeting of stockholders 

 was called for January 21, and subsequently postponed until 

 February 1. at which time the directors hope to announce the 

 completion of the pl.tns. 



The preferred stockholders have given their approval of plans 

 to mortgage the company's proi)erty for $.50,000,000, and negotia- 

 tions by the- oflicia's. which have been under wax- fnr two months, 



