274 



THE INDIA RUBBER WORLD 



[May i, 1904. 



sheet metal hood connected by piping with a powerful exhaust 

 fan for removing the turnings as fast as they are produced. 

 The rough blocks assume the fine lines and contour of the 

 model with fascinating exactness and rapidity, and come forth 

 in five minutes or less, perfect reproductions of the original. 



The illustration of last blocks and lasts (Fig. 3) shows three 

 lasts with the " centers " attached as they come from the lathe. 

 These " centers " are the supports on which the block revolved, 

 and are removed by means of the " block knife " — a sort of long 

 handled cleaver, which is supported at one end in a ring bolt, 

 which affords a fulcrum on which to get a leverage to slice off 

 the hard wood and trim down to size. 



After this trimming the toe and back of the heel are carefully 

 shaped with a spoke-shave and wood rasp to the exact dimen- 

 sions of a pattern or metal template. Following this the last is 

 scoured or smoothed on a sand wheel, to remove the fine groves 

 on the surface caused by the " feed " or progress of the cutters 

 over the surface. Next they are stamped on the bottom with 

 width and size marks and the tops bored with a pair of holes 

 which serve to hold the last on the shoe rack when in use. 



The average life of maple lasts in daily use in a rubber shoe 

 factory is about two years. The frequent long continued heat 

 of vulcanization gradually disintegrates the wood and slowly 

 chars it, causing the sharp edges to gradually wear away with 

 frequent handling, none too careful at best. With the sharp 

 edges gone, the last has so far departed from the shape of the 

 model that it is practically useless for shoe making, and ends its 

 mission as fire wood. The edges of the model are carefully 

 protected against wear in the lathe by a series of iron brads in- 

 serted along all edges, and filed up true to form, in effect, a 

 metal edge. 



PRODUCTION COST OF INSULATING TAPE. 



BY AN EXPERT. 



IT is perhaps twenty-six years since it was first found that 

 calendered friction cloths were useful in electrical construc- 

 tion, when wound in convenient rolls of narrow width. 



Up to five years ago this steadily increasing business was di- 

 vided among the mechanical rubber plants, and possibly the 

 average output was at the rate of 500 pounds per day. High 

 prices prevailed, and until 1895 little or no tape was sold below 

 35 cents. Between 1890 and 1895 the prices were hammered 

 down to 25 cents, and since that time have frequently touched 

 17 cents, with some misguided lambs occasionally breaking to 

 16 cents per pound. 



Bear in mind that during this period the price of crude rubber 

 was continuously advancing, and that to-day tape manufacturers 

 are paying 100 per cent, or over more for their soft rubbers. 



The recent advances in cotton, nearly 100 per cent, in four 

 years, should also receive attention. Still the largest concerns 

 who now handle tape have not made advances of over 10 per 

 cent, in their prices, and are held down to that point by the 

 reckless competition of small plants that, with a capital for get- 

 ting perhaps an average of orders for 500 pounds per day, do not 

 hesitate to suppose themselves capable of quoting lower prices 

 than the big producers that average 3000 pounds per day. 



It will readily be seen that all are on about the same basis in 

 the cost of materials. The cheapest compound that will stay sold 

 costs 5 cents per pound and cotton is worth .2430 per pound in 

 the 40' width, the grade used by all. 



On the cheapest grades 4 pounds of compound is loaded on 

 to each pound of cotton, producing a tape costing .0886 per 

 pound for material alone. The old fashioned manufacturer of 

 rubber goods would doubtless consider that between the above 



cost and a selling price of 17 cents there was an ample margin 

 of profit. 



It is, therefore, of great interest to note the information 

 which careful factory cost keeping gives when supplemented by 

 general bookkeeping. 



The figures were given by one of the largest tape manufactur- 

 ing companies and are based on sales of about half a million 

 pounds. The tape was of many different grades and made in a 

 general rubber goods plant which has special facilities for low 

 operating expense. 



Express and freight bills (tape sold delivered) $ 3,122.90 



Taxes (apportioned) 581,89 



Insurance 298.73 



Rent 59°-39 



Merchandise discounts 573-48 



Telephone services and telegrams 17996 



Coal (power) M43-33 



Packages (shipping department materials) 2,297.10 



Tin foil and cartons 3,728.86 



Commissions to agencies 2.060.89 



Traveling expenses 2,827.16 



Interest 2,385.79 



Unclassified expense 993 56 



Bad accounts 33 49 



Postage 230.68 



Labor and salaries (executive) 8,936.50 



Labor and salaries (productive) 12, 088 55 



Total expense items $42,073.26 



Total expense item cost per pound $0. 0883 



Crude cost per pound 0886 



Net cost of tape per pound $0.1769 



It is to be regretted that the " factory waste " item is not in- 

 cluded in this account, " being too mixed up with the other 

 business going on to apportion accurately". Pressed for an 

 estimate, a figure of $900 was given, which is manifestly low 

 enough, as there is no item for "returned goods, ""bad 

 goods, " and "experimental work ". Leaving out these impor- 

 tant items, the " factory waste " estimate brings the expense 

 items up to .0909 and the total manufacturing cost of the cheap- 

 est pound of tape to $0.1795. 



That these figures are of value there can be no doubt. A 

 new concern which could scarcely hope to secure a business of 

 over 500 pounds a day for the first six months would have an 

 expense cost far above this, to say nothing of an advertising 

 expense besides. 



When it is considered that at least two factories are doing a 

 business of over twice the total on which this article is based, 

 and that their increased output saves them only about 2# cents 

 per pound in their expense items, it will be seen that they can 

 and do earn a handsome income while selling below any com- 

 petitor's actual cost. Evidently they are amply satisfied with 

 a net profit of about 2 cents per pound. 



EDITORIAL NOTE. 



The above article was written by one who is heartily tired of 

 competition by those who apparently do not know how to figure 

 factory costs, and with the idea of giving them, if such there 

 be, a chance to think. A careful analysis of it leads one to 

 think that he has made out a strong case, but not as strong as 

 it might be taking his own figures. For example, his item for 

 power, $1143,33, does not seem enough. To do the work in- 

 dicated a washer, two mills, and a calender are necessary; in 

 other words a 100 HP. plant, which would ordinarily cost nearer 

 $4000 a year than $1 100. 



Then, too, the " bad accounts " is very very small. If the com- 

 pany under consideration sells to the little dealers, it might 

 easily be many times $33.49. As a matter of fact, the business 

 under discussion reaches to about $100,000 a year, and it would 



