448 



THE INDIA RUBBER WORLD 



Makch 1, 1921 



THE RUBBER TRADE IN OHIO 

 By Our Regular Correspondent 



AKRON NOTES 



'■p'HE outstanding development in the rubber industry in Akron 

 A for the past month, or even the past year, is the completion 

 of the refinancing of the Goodyear Tire & Rubber Co. and of plans 

 to increase production at the plant to 18,000 tires a day. 



Although many factors combine to add a better tone to the in- 

 dustry, the probability that the Goodyear company will soon be 

 in a position to reshape its affairs for the best possible business 

 not only caused the business men and bankers in the city to be 

 enormously elated, but gave added confidence to tlie rubber in- 

 dustry in general. 



The feeling prevailed that with eastern bankers ready to shoul- 

 der the troubles of the Goodyear company temporarily, the out- 

 look for the rubber industry as a permanent proposition was given 

 the approval of the best financial men in the country, and also 

 showed tliat these men look upon Akron as the real heart of the 

 rubber industrj' in the United States. 



Although the revival of Akron may not be brought about as 

 speedily as is hoped, j'Ct the prospect that the Goodyear company 

 will soon be standing with both feet on the ground, ready to go 

 into the market to sell its output with all the energy which 

 has always characterized the operations of the company, is re- 

 garded as the opening wedge for better business and it may be 

 taken for granted that no opportunities to increase business will 

 be overlooked by Akron factories. 



Other signs of better business, if taken separately, do not look 

 enormous but when added together indicate that the corner has 

 been definitely turned and the uphill trail has been entered. Orders 

 at every one of the larger rubber companies have increased from 

 10 to 60 per cent during the past month over the December busi- 

 ness. Practically every rubber company has taken back some 

 of its former employes, the lowest number taken back being 100 

 and the highest thus far reported is 2,000. 



Indications are that the Goodyear Tire & Rubber Co. must go 

 to 18,000 tires a day in the very near future if money is avail- 

 able for the increased payroll. Goodrich has gone to one ten- 

 hour shift. Miller has gone to nine and one-half hours and indi- 

 cations are that Firestone will soon go to ten hours. 



Besides the greatly increased number of orders from the deal- 

 ers, automobile manufacturers, encouraged by the business done 

 at the New York automobile show, have gotten in touch with 

 the larger rubber companies and are talking contracts. Reports 

 from all over the country show that the dealers' shelves and store- 

 rooms are bare, and the first buying in the Spring will find them 

 short. Already several of the companies have been compelled to 

 refuse orders for odd sizes because they were not in stock. The 

 stocks in the factory warehouses have been worked off and orders 

 in the future must be filled by the production departments. 



This actual and anticipated increase in orders finds the rubber 

 companies in an admirable position to take full advantage of the 

 increased prosperity. Changes in operation, increased efficiency 

 and decreases in overhead will not be lacking in the new scheme 

 of things. It may be stated that when business is back at the new 

 normal the working day in Akron will probably be ten hours, with 

 the third shift a thing of the past. The third shift has been ex- 

 pensive because of the low efficiency of the average workman, but 

 during the past it was a necessity. 



The companies have written off large sums for inventory with 

 large amounts of raw material on hand and if the crude rubber 

 market and the fabric market take a turn upwards this year the 

 earnings of the Akron companies will show up well as compared 

 with the depreciated earnings of last year. 



The failure on the part of two rubber companies during Jan- 

 uary is not looked upon as being significant because of the causes 

 which led to their failure. Evidence produced in court tends to 



indicate that the Interlocking Cord Tire Co., of Mogadorc, failed 

 because of mismanagement. Four of the Interlocking officials 

 have been indicted by the grand jury for violation of the Ohio 

 "blue sky" law, but the creditors have joined the stockholders in 

 plans looking towards the working out of tlie difficulties of the 

 company and putting it back on its feet. 



The Lanahan Rubber Co., Akron, a small concern, was obliged 

 to go into receivership because of the lack of working capital. 



The Oldfield Tire Co., formerly at Cleveland, Ohio, has re- 

 moved to Akron. Dick Jemison has been appointed advertising 

 and sales promotion manager and will direct an extensive adver- 

 tising campaign in national publications, trade papers, farm 

 journals, and newspapers and direct by mail in the near future. 

 Mr. Jemison was for the last year in charge of sales promotion 

 for The Miller Rubber Co., Akron. Barney Oldfield is president 

 of the Oldfield Company. 



L. Grant Hamilton, well known in automotive selling and ad- 

 vertising circles, has recently joined the staff of The Akron Ad- 

 vertising Agency Co., Akron, Ohio. 



A handball game between Jacob Pfeiflfer, vice-president of the 

 Miller Rubber Co., and one of the employes featured the opening 

 of a new gymnasitun at the Miller plant. One large room in 

 the factory has been fitted up as a gymnasium through the vol- 

 untary efforts of ISO operatives. 



W. O'Neil of the General Tire & Rubber Co., has been elected 

 president of the Ohio Savings & Trust Co. to succeed F. A. 

 Seiberling, whose duties have become too heavy to continue as 

 chief officer. 



S. B. DeRachi, export manager of The Miller Rubber Co., 

 has resigned to take a similar position with the Quaker City Rub- 

 ber Co. 



Closer cooperation between Akron rubber manufacturers and 

 the foreign trade department of the government is forecast by 

 the appointment of W. W. Hall, traffic commissioner of the Cham- 

 ber of Commerce as Akron representative of the Foreign and 

 Domestic Trade Bureau of the Department of Commerce. 



William J. O'Neil, founder and president of the O'Neil Tire & 

 Rubber Co., formerly with The B. F. Goodrich Co., died sud- 

 denly of apoplexy on February 10, while on the way to his 

 office. He was one of the pioneers in the rubber industry in 

 Akron. 



AKRON'S 1920 BUSINESS 



Fourteen Akron rubber companies during the year 1920 did 

 a combined business of $544,729,000, according to figures compiled 

 by the Akron Chamber of Commerce. The total capitalization 

 of these companies is $309,037,922 and the total payroll amounted 

 to more than $126,000,000. 



This was the banner year against which much of the future 

 business of the industry will be measured. The total business 

 would have been nearly 50 per cent more than that of the previous 

 year but for the curtailments in credits which seriously affected 

 the industry the last half of the year. However, the increase in 

 sales over 1919 was considerable. The following figures showing 

 the capitalization, sales and payroll of practically the same in- 

 dustries for the past six years is an indication of tlie rapidity 

 with which the rubber industry has developed : 



Value 



Capitalization Products Payroll 



1914 $118,493,800 $93,980,000 



1915 117.336,900 121.085.000 $19,154,887 



1916 157,820,500 188,740-,00O 32,568,465 



1917 165,871,986 279.883,054 56.860,640 



1918 221,908.418 332,083,090 60,591,838 



1919 227,119.275 427,796,317 101.178.591 



Of the 1920 total, $504,872,639 was done by the Goodrich, 

 Goodyear, Firestone and Miller companies. 



During the past year the Firestone Tire & Rubber Co. led all 

 other Akron companies in sales growth, jumping from $91,000,- 



