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Full text of "Evidence study"

BOSTON PUBLIC LIBRARY 



3 9999 06317 552J_ 



4. 4- 



0^^%\. UAl>>o 



NATIONAL RECOVERY ADMINISTRATION 



Md 8 lS3b 



DIVISION OF REVIEW 



EVIDENCE STUDY 
NO. 36 

OF 

THE RUBBER TIRE MANUFACTURING INDUSTRY 



Prepared by 
W. H. GROSS 



October, 1935 



PRELIMINARY DRAFT 
(NOT FOR RELEASE: FOR USE IN DIVISION ONLY) 



\ 



I 



THE EVIDENCE STUDY SEHIES 

The EVIDEITOE STUDIES -/rere originally planned as a means of gathering evidence 
hearing upon various legal issues which arose under the National Industrial Re- 
covery Act. 

These studies have value quite aside from the use for which they were originally 
intended. Accordingly, they are now made available for confidential use within the 
Division of Review, and for inclusion in Code Histories. 

The full list of the Evidence Studies is as follows: 



1. Automohile Manufacturing Ind. 23. 

2. Boot and Shoe Mfg. Ind. 24. 

3. Bottled Soft Drink Ind. 25. 

4. Builders' Supplies Ind. 26. 

5. Chemical Mfg. Ind. 27. 

6. Cigar Mfg. Industry 28. 

7. Construction Industry 29. 

8. Cotton Garnent Industry 30. 

9. Dress Mfg. Ind. 31. 

10. Electrical Contracting Ind, 32. 

11. Electrical Mfg. Ind. 33. 

12. Fab. Metal prod. Mfg., etc, 34, 

13. Fishery Industry 35, 

14. Furniture Mfg. Ind. 36, 

15. General Contractors Ind. 37. 

16. Graphic Arts Ind. 38. 

17. Gray Iron Foundry Ind. 39. 

18. Hosiery Ind. 40. 

19. Infant's & Children's Wear Ind. 41. 

20. Iron and Steel Ind. 42. 

21. Leather 43, 

22. Lumber & Timber Prod. Ind. 



Mason Contractors Industry 

Men's Clothing Industry 

Motion picture Industry 

Motor Bxis Mfg. Industry (Dropped) 

Needlework Ind. of Puerto Rico 

painting & Paperhanging & Decorating 

Photo Engraving Industry 

plumbing Contracting Industry 

Retail Food (See No. 42) 

Retail Lumber Industry 

Retail Solid Fuel (Dropped) 

Retail Trade Industry 

Rubber Mfg. Ind, 

Rubber Tire Mfg. Ind. 

Silk Textile Ind. 

Structural Clay Products Ind. 

Throwing Industry 

Trucking Industry 

Waste Materials Ind, 

Wholesale & Retail Food Ind. (See No. 31) 

Wliolesale Fresh Fruit & Veg. 



In addition to the studies brought to completion, certain materials have been 
assenbled for other industries. These MATERIALS are included in the series and are 
also nade available for confidential use within the Division of Review and for in- 
clusion in Code Histories, as follows: 



44. Wool Textile Industry 

45. Automotive Parts & Equip. 

46. Baking Industry 

47. Canning Industry 

48. Coat and Suit Ind, 



49. Household Goods & Storage, etc, (Dropped) 

Ind. 50. Motor Vehicle Retailing Trade Ind. 

51, Retail Tire & Battery Trade Ind. 

52, Ship & Boat Bldg. & Repairing Ind. 

53, Wholesaling or Distributing Trade 



L. C, Marshall 
Director, Division of Review 



c\b^i. iK^^ 



COIITEIITS 

PAGE 

JTorerord 1 

Ci-IAPTER I - TH.E mTURE OE THE IlIDUSTllY 2 

Definitions of the Industry 2 

Description of Operations 2 

Total ifcralser of Estatlislinents 3 

Decline in Nirater of Esta'olishmcnts 3 

Euater and Size of Concerns 4 

Location of Factories Ijy States 6 

Ca-oital Invested 8 

financial Condit ion 9 

ll-unoer of Failures 12 

Total Value of Production 12 

Tot8,l Volume of Production 13 

Principal Can.se of Decline in Volui;ie 14 

CHAPTEPu II - IA30R STATISTICS 15 

Total IJujn'ber of ErrjDlo"'ees 15 

Employnent and Wages by States 15 

Seasonality of Employment 16 

Total Ann-::;al Wages, and Per Cent which. Wages are 

of Total Value of Product 17 

Index of Payrolls 18 

Average Hovu-ly Wages 18 

Average Annual Wage 19 

Average Weekly Wage 20 

Estimated Average Wee3iLy Payroll 21 

Average WeeJcly Houi's 21 

Productivitj'- of Labor 22 

Causes of Teclmological Displacement of Labor 23 

CHAPTEE III ~ I.IATEEIALS ~ EAW AM) SEi!I~?ROCESSED 24 

Q,uantity and Cost of Liaterials Consumed 24 

Percentage Distribtition of Costs 24 

CHAPTEP IV - PHODUCTION AIED DIS^CRIBUTIOII 26 

Value of Production l^y Principal States 26 

Interstate Commerce 26 

Estimated Capacit;^ 27 

Estimated Over-Ca;3acity , 28 

CHAPTER V - EOHEIGIT TRADE 29 

Position of United States in E:cporting Trade 29 



8341 






CONTEIITS (Cont'd) 

Volume of Ercoorts 30 

Value of E:cports 31 

E:cDortation of Capital and Laljor ty the Industry 31 

U, S, Imports 32 

APPEKDIX 34 

Exliibit A, Statistical Suiainary of the Industry, 

1921, 1929, 1931, and 1933 34 

Exhiljit B, Net Sales of Leading Manufacturers 35 



-oOo~ 



8841 



-11- 



TABLES 



Pa^e 



TABLE 



I - 



TABLE II - 

TABLE III - 

TABLE I? - 

TABLE V-A - 

TABLE V-B - 

TABLE VI - 

TABLE VII - 

TABLE VIII - 

TABLE IX - 

TABLE X - 

TABLE XI - 

TABLE XII - 

TABLE XIII - 

TABLE XIV - 

TABLE yj - 

TABLE XVI - 



Estimated "Jaily Capacity of Individual 

Com-ianies, 19i)3 (In Tire Units) 5 

Location of EactoriRs, 'by States, 

1933 6 

Location of Plants of Individual Concerns. 

by City and State, 1933 7 

Estinated Capital Investment, 1929-1933 8 

Consolidated Balance Sheets and Ratios, 

"Big Four " Companie s , 1929-1932 10 

Consolidated Balance Sheets and Ratios, 

Six Smaller Companies, 1929-1932 11 

Kvjnber of Failures and Anount of Liabilities, 
1£'25-1934 12 

Annual Value of production for Selected 

Years, 1921-1933 13 

Annual Production of Casings, for Selected 

Years, 1925-1934 13 

Avera.ge Milearo of Tires, for Selected 

Years, 1914-1933 14 

Annual Emplo^.nnent, 1929-1934 15 

Eraployinent and "iTages, by Principal States ,,,..., 16 

Monthly Eraployraent (Index Based on 

Average Monthly Eraplojonent for 

Entire Year) 17 

Total Annual Wages and Wages as per Cent 

of To tal Value of product 13 

Index of Payrolls, 1929-1934 13 

Average Hourly Wage Rates , 1929-1934 19 

Comparison of Annual Wages Paid by the 

Tire Manufacturing Industry and by All 

Manufacturing Industries, for Census 

Years, 1921-1933 20 



8841 



-1X1- 



( 



TJfflLE 


XVII 


TA3LE 


XVIII 


TABLE 


XIX 


TABLE 


]a: 



TABLE 

TABLE 
TABLE 

TABLE 
TABLE 
TABLE 



XXI - 

XXII - 
XXIII - 

XXIV - 
XXV - 

XXTI - 



TABLE YJaT 11 - 



TABLE XXVIII 



TABLE 



TABHE 



XXIX - 



XXX - 



TABLES (Cont'd) 

Page 

Average Weekly Wages , 1939-1934 20 

Estimated Average Weekly Payroll, 

1929-1934 21 

Average Weekly Hours, 1929-1934 22 

Index of Productivity of Labor, Six 

Representative Plants, 1922-1931 23 

Q,uantity and Cost of Materials Used 

in Rubber Industry, 1929 24 

Percentage Distribution of Costs 25 

Value of Production by Princii^al 

States, 1929 and 1933 25 

Production and Sales of Tires and Tubes 

by Selected States, as Per Cent of Total 

Value, 1929 27 

Seasonal Variation in Tire Production, 
and Monthlj'- Output Required for Annual 
Production of 69,000,000 Tires 28 

Purcentage Distribution of World Exports 

among Exporting Coimtries, 1929 and 1933 ..,,,, 29 

U. S. E:rports and Total World Exports of 
Aatoiaobile Casings, 1924-1933 30 

Volume and Value of United States Exports 

of Rubber Tires, by Principal Product 

aroups , 1929 and 1933 31 

Location of Foreign Branch Factories of 

Leading Companies in the Industry 32 

Imports of Pneumatic Automobile Casings, 
and percentage Imports were of Domestic 
Production, 1923-1933 33 

-oOo- 



8841 



-IV- 



-1- 

RIIB3ER TI5E LMJ-JIIFAC TURING IKDUSTRY 
Foreword 

The chief sources of data used in this stndy are puhlications 
of the Bureau of the Census, the Bureau of Lahor Statistics, the Bureau 
of Foreign and Domestic Gonmerce, and material especially prepared and 
sutraitted to the NRA hy the Rubber Manuf a,cturers' Association and the 
India Tire and Rubber Revie'7 . 

There is no rjroblem of coLmarability of Census and Code classifica^ 
tions; the Rubber Tire Manufacturing Industry as defined by the Code is 
practically co-extensive with the Rubber Tire and Inner Tube Industr-^ 
as covered by the reports of the Census of Mamxfactures. The usual 
limitation of the Census data arising from the exclusion of establish- 
ments having an annual iDroduction of less than $5,000 is considered not 
to be significant beca\ise there are nresujnabl;'' no establishments in the 
Industr;'" r'hich do not have ari annual production of more than $5,000. 

T\70 sections of the outline have not been covered because of lack 
of pertinent information: the sections on trade practices and on 
general information. On the other hand, some topics have been expanded 
beyond the requirements of the Outline; the subject of exports, for 
instance, has been treated in detail because of the iniportance of 
particular aspects of the situation in this Industry. 



8841 



Chapter I 

THE MTUBE OF TKE INDUSTRY 1/ 

Definitions of the Indust ry 

The Rubber Tire Manufacturing Industry is defined by the Code to meaji: 

" the ma.nufacture for sale in the continental United States 

(including Alaska) and ss.le at wholesale by raanuf acturers or subsidiaries 
or affiliates of the same of solid or iDli-^'uraatic rubber tires and/or 
pneumatic rubber tubes, together with such related branches or divisions 
as vAaY from tine to time be included -under the provisions of this Code by 
the President, after such notice and hearing as he may prescribe." 

The principal products of the Industry .?ire solid or pne.umatic rubber 
tires and/or -oneumatic inner tubes for automobiles, trucks, buses, motorcycles, 
bicycles, aeroplanes, farm iraulements, graders, and tractors, 

'"he by-nroducts of the Industry are tire accessories and repair materials, 
tire patches (made usioally from used tires and/or tubes), and tire retreading 
materials. 

The Census classification for the "Rubber Tire and Inner Tube" Industry 
is defined to embrace 

" those establishments which are engaged primarily in the 

manufacture of jTveumatic tires, inner tubes, and solid and cushion riibber 
tires, for any class of vehicles," 

It may thus be seen that the tuo classifications are comparable in a 
general way, and Census data can confidently be used to describe the codified 
Industry, The fact that the Census of Manufactures reports do not cover estab- 
lishments having an annual production of less than $5,000 is not significant in 
this Industry because there are presumably no estabilishments falling in this 
group. 

Description of Operations 

The following quotation describes the operations of the Industry; 

"Tire making, in spite of much progress, continues to require a con- 
siderable amount of skilled labor. The availability of skilled workers in 
Alcron expolains in a large measure the early concentration of rubber com- 
panies in that city. The same explanation applies to Los Angeles at a 
somewhat later date. The first iirocess in practically all rubber manu- 
fa.cture is mixing rubber with a chemical compound containing vulcanizers, 
us-ually sulphur or sulphur compounds, anti-oxidants, pigments and fillers, 
accelerators, or serai-catalysts. This is done by running rubber through 
heated rollers which tear the rubber apart and grind in the chemicals, 

1/ See Appendix, Exhibit A, for table giving Statistical Summary of the 
Industry, 1921, 1929, 1931, and 1933. 

8841 



-3- 

"Tire building is largely an operation in which the x)lies, "braker 
strip, cushion, tread and wall, and bead are assembled. F'-^r the large- 
sized tires, assembly is made on a core where the worker shapes the tire 
in process in order to reduce strain in final shaping and vulcanization. 
The smaller sizes, on which production is in large volume, are built on 
drums and the tire is shaped in a vacuum machine. The United States 
Rubber Company in 1S30 put into operation what was claimed to be the first 
continuous assembly line for tires. Each man performs only one operation, 
so that the training period required for normal production speed is a 
matter of only afo-Thours, as compared with about two months for other 
methods. In addition, production per man is said to be increased about 
50 per cent. After assembly of the various components making up the tire, 
it is placed in a heavy mold, which forms the outer surface design and 
lettering, and is subjected to pressure from an inner tube containing 
hot water or air. The molds are placed in heaters where vulcanization of 
the assembled parts into a strong unit takes place. Vulcanization also 
gives the tire wearing quality. 

"Inner tubes are made by one process by forming rubber into an end- 
less, seamless tube, which is cut into proper lengths, the ends joined 
and sealed together by vulcanization, which at the same time gives 
strength and long life to the tubes. Under another nrocess, tubes are 
made by winding strips of rubber around rods, which are placed in heated 
tanks for vulcanization. In this way, traces of seams are eliminated. 
The tubes are later spliced and vulcanized. The latter method, \7hile 
apparently more costly, is understood to produce very few rejections. 
The former process is said to have as high as 10 per cent re jections. "1/ 

Total Wimber of Establishments 

" i r . .. i. • ■- . . >. ■ ■ ■ • ' I - '■ '' . ■ ' 

Ac9.ordin6 to Censv-s data, the, number of establishments declined from 91 

in 1S2S to '44 3/. in 1933 a decrgase'of 47 ' e.stablishmentsj „of..5l»7 .per cent,^^ 
Decline in Kymber .of .Establisl'mients ,. . , , „ im,,- -.t.. -j.-i-i- •- ■■ ■ 
An inter,esting comnent on the decrease in the number-: pf tire manuiactur- j. 



ing establishments is found in .the "Rubber industry Letter No, 7 ,", published ,, 
by the' Biir'eau.of [foreign arid .domestic ^ (Joromer^e, September 6,. 1,933^ wiiipli reads' 
as follows:.' ._ : ..:^p,,^,^ . ' , , vath about ii'vo m:.nti.3 for ot;.«- 

.... ■'.''Tfie number. .of plants "principally engaged in th§ 'manufacture of tires 
has declined cphtiriugus.iy' from 178 in 1921 to only 4^ in 1931, ''"when in 
several ^ instances a single c'drporation controlled two "or more, tire plants, 
jhe 'r.a-|e of inp reality 'has been extremely' high in the tiL.re. manufacturing,.: 
industry; m view of" the unprofitable operations of this .industry from 
192? '&0 1930, inclusive, i-^ is not "surprising that 'mortality was more 
accentuated "from 1927 to 1931 than from 1921 to 1927. A recent tire com- 
pany advertisement states that since 1912, 5.37 tire cgmpan^es. ha,ve started 
in business, of which only 32 now remain." 

■ ■ — ' — . ' ■ ■ ■ ■ ■ ■ I . I ■■ . — , I ., , ■.- n . - i .^ ■ .1. 1 , .. . - y- ...... m. ■■. — — .■■ - , I ■ ■ I ■ -^. ■ I - ,,. --^— ._ 

^ , ' , , . .'Tces-o, tub.--' urt 

1/ Praziei- and Doriot, Analyzing Our Industries , p. 192. - . ■ • ■- ^ 1 

2/ Due presuAiably to the difference in source's,' this figure'is not' identieal 

with that given in Table II, beloW, • '■■.■' . ■, 

:^;;l.y, X . - - - ■ ■: ■■ ' - . 

8841 . 1;. r^^ .... •- ,.^\/ 






.1.: I. ■ r ■■ I 

.••.(.■■t..^O . ii 3u-..:i: 



'J J <;:; i. ;.i, ^ : .ii i,' •■..,1'/.; - ' 

■,;.c-v,' v.J-ifAcir-tr; ?.ai.J ■ ..... '.. . . 

'. j-nsosi -A . ."C'c^CL C.J iie.i ffioii .ipri; '.iivi;! ol 'CSii .-.ic-ix'i' 



■ic:ft 



ITum'ber and Size of Concerns 

Tiie tire manufacturing concerns divide themselves into two general 
classes, namely, the "Big Four" and 28 others. 

The Big Four include the folloring companies: Goodyear, Firestone, 
United States, and Goodrich. These companies are called the Big Four 
"because th83'- control alDout 65 per cent of the total productive capacity 
of the Industry and could supply the entire domestic market. !_/ 

The remaining 28 companies represent only 35 per cent of the pro- 
ductive capacity, and, of these, there are 15 which have capacities of 
less than one per cent of the whole Industry. 

The Fisk and General companies are sometimes classed with the 
Big Four • — Fisk "because of its capacity of 9 per cent of the total 
and General "because of its profita"ble record. 

Tatle I shows the individual tire manufacturing companies 
comprising the Industry, listed in the order of their importance "based 
on their productive capacity in 1933 as estimated "by the India Tire 
and Eu'b'oer Heview. 



1/ From "brief prepared "by the India T ire and R u"btier Review and 
su"bmitted to the MBA in 1933. 



8841 



-F-- 



7XP^E I 



Estimated Daily Capacity of Individual Cciapanies, 1933 ^ 

( la Tire Units) 



Co.'.ipaJiy 



Goodyear Tire and Rabuer Company 

Firestone Tire and 3a"b"ber Conpany 

United States Rubber Coiirpany 

The B. P. Goodrich Compr.ny 

Fisk Rubber Corporation 

Kelly-Springfield Tire Coirpany 

Mansfield Tire and Rubber Co.^Tpany 

General Tire and Rubber Coiapany 

Seiberling Rubber Company 

Pharis Tire and Ruboer Coiiipany 

Gates Rubber Company 

Lee Rubber Tire Company 

iiurray Rubber Company 

Dayton Rubber Manufacturing Company 

Dunlop Tire and Rubber Corporation 

Pennsylvania Rubber Company 

Master Tire and Rubber Company £J 

Liohawl: Rubber Coijipany 

India Tire Company 

Corduroy Tire Corporation 

Inland Rubber Coiiipany 

Denman Tire and Rubber Company 

McClaren Rubber Company 

Monarch Rubber Company 

Norwalk Tire and Rij.bber Company 

Armstrong Rubber Company 

Hamilton Rubber Manufacturing Company 

Lake shore Tire and Rubber Conroany 

P. G. Schenuit Rubber Co.ipany 

Standard Pour Tire Company 

McCreary Tire and Rubber Company 

Overman Cushion Tire Co'^nany 

Total estimated daily capacity 



Capacity b/ 



340,500 



per Cent 
of Total 



90,000 


26.42 


46 , 500 


13.65 


42,000 


12.33 


41,000 


12.04 


31,000 


9.10 


12,000 


3.52 


9,500 


2.79 


9,000 


2.64 


6,000 


1.76 


5,500 


1,62 


5,000 


1.47 


5,000 


1.47 


5,000 


1.47 


4,500 


1,32 


4,500 


1.32 


4, COO 


1.17 


3,500 


1.04 


2,500 


0.73 


2,500 


0.73 


2,000 


C.59 


2,000 


0.59 


1,500 


0.43 


1,000 


0.29 


1,C00 


0.29 


1,000 


0.29 


500 


0.15 


500 


0.15 


500 


0.15 


500 


0.15 


500 


0.15 


300 


0.09 


■;oo 


0.09 



100.00 



Source: Brief submitted to IIRA by India Tire and Rubber Review , 1933. 
a/ Coa-st Tire Company not included in this estimate. 

b/ Capacities of subsidiaries of Goodyear, Firestone, U. S. , and 
Goodrich are included with parent companies. 

c/ The capacity listed for this company is the combined capacity of 

its three subsidiaries, Fall Rubber Company, Cooper Corporation, 
and Giant Tire and Rubber Company. 



8841 



-6- 



Location of j'actories 'by States 

The national character of the Tire Lianuf acturing Industry is 
indicated "by the fact that tire factories are situated in sixteen states. 
It will 1)6 noted from Ta^ble II that fifteen of the forty-two establish- 
ments are located in Ohio, five in California, and three in Pennsylvania, 
The remaining states had not more than two each: there were six states 
with two, and seven with one factory each. 

TABLE II 
Location of Factories, 'hy States, 1933 a/ 



State 



Alatama 

California 

Colorado 

Connecticut 

Illinois 

Indiana 

Iowa 

Maryland 

Mas sachuse 1 1 s 

Michigan 

New Jersey 

New York 

North Carolina 

Ohio 

Pennsylvania 

Wisconsin 

Total 



Numher of Factories 



1 
5 
1 
2 
1 
1 
2 
2 
1 
2 
2 
2 
1 
15 
3 
1 

42 



Source: Brief sutnitted to KRA "by India 
Tire and P.u"b"ber Review , 1933. 

a/ In cases where a com-pany operates 
more tlian one plant in a given 
localitj'', these plants have teen 
counted as one factory. 



The detailed data upon which Table II is based are presented in 
Table III, which shows the individual tire companies by name and the 
location of their plants by city and state. It will be noted that 
plants of the Big Pour are situated in several states. Por example, 
the Goodyear Company has plants in Alabama, California, and Ohio; 
Firestone and Goodrich have plants in California and Ohio; and the 
United States Eubber Company has plants in California, Indiana, and 
Michigan. 



8841 



-7- 



TABLE III 

Location of Plants of Individual Concerns, 
ty City and State, 
1933. 



State and Company 



City 'ffhere Plant is 
Located 



Alal)a.ma 

G-oodyear Tire and EulDter Conipany 
California 

Coast Tire Cornpany 

Pire stone Tire and Eafoer Conroany 

Goodrich Sabber Company 

Goodyear Tire and Riitter Company 

Sampson Tire and Raboer Company 
(Subsidiary of U. S. Rabber Company) 
Colorado 

Gates Subber Company 
Connecticut 

Arm-.trong Rubber Company 

■Jorwalk Tire and Rubber Company 
Illinois 

Inland Rubber CoraiDany 
Indian a 

G. and J. Tire Company 
(U. S. Rubber Company) 
Iowa 

Stand3,rd Four Tire Compariy 

Lake Shore Tire and Rubber Company 
Maryland 

Kelly-Springfield Tire and Rubber Company 

Schenuit R.ibber Company 
Massachusetts 

Fisk Tire Company 
Michigjan 

Corduroy Rubber Company 

U. S. Ri.xbber Comnany 
New Jerse"''' 

Hamilton Rubber Manufacturing Company 

Murray Rubber Company 
New York 

Dunlop Tire and Rubber Company 

Overman Cushion Tire Company 
North Carolina 

McClaren Rubber Company 
Ohio 

Cooper Corporation 

(Master Tire and Rubber Company) 

Dayton Tire and Rubber Company 

Denman Tire and Rubber Company 

Palls Rubber Company 

(Master Tire and Rubber Company) 

(Continued on next page) 
6841 



Gadsden 

Cal-d.and 
Los Angeles 
Los Angeles 
Los Angeles 
Los Angeles 



Denver 

West Haven 
No rwalk 

Chicago 

Indianapolis 



Keolculc 
Des Moines 

Cumberland 
Baltimore 

Chicopee Falls 

Grand Rapids 
Detroit 

Trenton 
Trenton 

Buffalo 

New York City 

Charlotte 

Cuyahoga Falls 

Dayton 
Massillon 
Cuyhoga Falls 



TABLE III (Cont'd) 



State and Company 



Ohio (Cont'd) 

Firestone Tire and Eabber Company 
General Tire and Ratter Company 
Giant Tire and Ratter Company 

(Master Tire and Ratter Company) 
Goodrich Ratter Company 
Good3'"ear Tire and Ratter Company 
India Tire and Ratter Comjjany 
Mansfield Tire and Rutter Company 
Mohawk Ratter Company 
Monarch Eixtter Company 
Pharis Tire and Rutter Company 
Seiterling Ratter Company 

Pennsylvania 

Pennsylvania Ratter Company 
Lee Tire and Rutter Company 
McCrear;,^ Tire and Ratter Company 

Wisconsin 

Gillette Ratter Company 

(United States Rutter Company) 



City Where Plant is 
Located 



Akron 
Akron 
Findlay 

Akron 

Akron 

Akron 

Mansfield 

Akron 

Hartsville 

Newark 

Akron 

Jeannette 

Conshohocken 

Indiana 

Gillette 



Source: Brief sutmitted to MA ty India Tire and Rutter Review, 1933. 



Capital Invested 

In 1929, the capital invested in the Tire Manufacturing Industry was 
estimated ty the Ratter Manufacturers' Association to have teen $556,000,000. 
In 1933, the sarae Association estimated the capital at $419,000,000, a 
decrease of $137,000,000, or 24.5 per cent, compared with tliat of 1929. 

Tatle V shows the estimated capital during each of the years from 
1929 through 1933. 

TABLE IV 
Estimated Capital Investment, 1929-1933 



Year 



Estimated 
Ca-oital 



1929 
1930 
1931 
1932 
1933 



$556,000,000 
545,000,000 
490,000,000 
425,000,000 
419,000,000 



Source: Ratter Manufacturers' Association, 
Brief sutmitted to NRA, 1933. 



8841 



-9- 

The ca-oital invested in the Tire Manufacturing Industry is diffic-uJt 
to estimate because practically all of the raera"bers of the Industry engage 
in the manufacture of other ratter products. Because the manufacturing 
Operations of almost all rutter products are the same in the early stages, 
and inasmuch as the manufactoirers do not find it feasible to keep separate 
books of account, the proportion of the total invested capital ascribable 
to the manufacture of tires alone is not definitely known. 

Financial Condition 

The Sabber Manufacturers' Association lias submitted two consolidated 
balance sheets for the years 1929 through 1932 — one for the Big Four, 
and another for six smaller conroanies whose identities were not disclosed. 

The consolidated balance sheet for the Big Four is shown in Table V-A. 
It will be seen that in 1929 these companies had total assets of $865,854,000 
and net profits of $30,740,000. B;'' 1932 their total assets had shrutil: to 
$600,526,000, a decrease of $265,328,000, or nearly 31 per cent. In the 
three years of 1930, 1931, and 1932, the Big Four incui-red a total net 
deficit of $54,664,000. 

The consolidated balajice sheet for six smaller companies, presented as 
Table V-B, shor-s that their total assets in 1929 amounted to $71,444,000 SJid 
tha.t they had declined by 1932 to $45,372,000, a decrease of $26,072,000, 
or slightly over 36 per cent. For the three-year period, 1930-1932, a 
combined net deficit of $9,911,000 was reported. 



8841 



-10- 



TABLE Y-A 



Consolidated Balance Sheets and Ratios, "Big Four" Companies, 1929-1932 
(Firestone, Goodrich, Goodyear, and United States) 
(Money fi^ares expressed in thousands) 



Item 






1929 


1930 


1931 


1952 


Assets 














Cash 






$98,966 


$72,331 


$82,294 


$92,244 


Receivahles 






117,096 


1®2,461 


76,317 


57,223 


Merchandise 


Invento: 


ries 


211,125 


165,670 


126,919 


100,270 


Total Curi 


-ent Assets 

5 


427,187 


340,462 


285,530 


249,737 


Fixed Assets 


428,077 


386,769 


369,237 


342, 364 


Deferred Charges 




10,590 


9,327 


9,813 


8,425 


Total ITon- 


•Current 


Assets 


438,667 


396,096 


379,050 


350,789 



G-rand Total 
Liatilities and ilet Worth 



865,854 



736,558 



664,580 



600,526 



Current 


Deht 


92, 


622 


37, 


,639 


28, 


342 


32, 


652 


Funded De"bt 


205, 


248 


241, 


,272 


224, 


,666 


191, 


,366 


Total 


Det)t 
Stock 


297, 


870 


278, 


,911 


233, 


008 


224, 


,018 


Capital 


405, 


,259 


348, 


,209 


344, 


438 


334, 


,481 


Surplus 


and Reserves 


162, 


725 


109, 


438 


67, 


134 


42, 


,027 


Net Wc 


5rth 
Gra:id Total 


567, 


984 


457, 


647 


411, 


572 


376, 


,508 




865, 


854 


736, 


,558 


664, 


589 


600, 


,526 


llet Sales 


758, 


,270 


636, 


41S 


502, 


294 a/ 


345, 


191 


Net Profii 


b (or Loss) 


30, 


740 


-27, 


466 


-21, 


616 


-15, 


,582 


Return on 


Ket Worth 


6.8^& 


-4.8^ 


-4.7^/J 


-3.8^ 


Return on 


Sales 


4.1^ 


-4.3^ 


-4.3^/5 


-4.5^ 



Ra,tios 



Current Ratio 

Merchandise to Receivables 
Net Worth to Non-Current 
Sales to Receivatles 
Sales to Merchandise 
Sales to Net Worth 
Worth to Total Dett 
Sales to Fixed Assets 

Total Ratio Index 



461^ 


904^ 


1007^ 


7655^ 


190 


162 


166 


175 


130 


116 


109 


107 


648 


620 


658 


605 


360 


384 


396 


345 


134 


139 


122 


92 


191 


164 


163 


168 


177 


165 


136 


101 



343^ 



444^ 



475^ 



P 



isefc 



p 



Source: RuFoer Manufacturers' Association, submitted to NRA, April, 1935, 

a/ Exclusive of $12,000,000 sales of U. S. sutsidiaries not consolidated. 



8841 



-11- 



TA5LE V-B 



Consolidated Ealpnce Sheets and Ratios, Six Smaller Companies, 1929-1932 

(llonej fif^ores expressed in thousands) 



Item 



1929 



1930 



1931 



1932 



Assets 



Cash 


$4,834 


Receivahles 


14,560 


Merchrndise Inventories 


19,334 


Total Current Assets 


38,728 


Fixed Assets 


31,712 


Deferred Charges 


1,004 


Total ITon-Current Assets 


32,716 



$3,643 
12,904 
13,988 
30,535 



$4, 798 

11,705 

9,914 

26,417 



32,905 

441 

33,346 



31,478 

491 

31,969 



$2,742 

12,150 

7,560 

22,452 



22,623 

297 

22,920 



Grand Total 



71,444 



63,881 



58,386 



45,372 



Liabilities and Uet Worth 

Current Deht 
Funded Deljt 
Total Deht 

Capital Stock 
Surplus and Reserves 
Net Worth 

Grand Total 

l^et Sales 

Net Profit (or Loss) 

Return on Net Worth 
Return on Ilet Sales 

Ratios 

Current Ratio 

Merchandise to Receivahles 
Net Worth to ITon-Current 
Sales to Receivables 
Sales to Merchandise 
Sales to Het Worth 
Worth to Total Debt 
Sales to Fixed Assets 

Total Ratio Index 



10,160 


6,141 


4,369 


2,816 


623 


4,361 


4,928 


6,854 


10,783 


10 , 502 


9,297 


9,670 



53,266 

7,395 

60,661 



71 , 444 



87,350 

458 

.7fi 
.5fo 



OOX-/0 

133 
185 

6oe 

452 
144 
563 
275 



412^ 



53,196 

183 

53,379 



52,919 
-3,830 
49,r89 



63,881 



58,386 



29,472 

6,230 

35,702 



45,372 



69,190 


55,816 


44,890 


-5,890 


-2,335 


-1,686 


-9.7fo 


-4.4^ 


-5.4/o 


~8.5fo 


-4.2^ 


-o.afo 


497'fo 


605^ 


797<'o 


108 


85 


62 


150 


153 


156 


536 


477 


369 


495 


563 


594 


130 


113 


126 


508 


530 


369 


210 


176 


198 



/<' 



419^ 



447^ 



4525^ 



Source: Paibber lianufacturers' Association, submitted to IffiA, April, 1935. 



8841 



-12- 

Mijjn'ber of failures 

From 1929 through 1953 there were 26 failures anong the manufacturers 
in this Industry. The total amount of liabilities involved was $4,620,779. 
In 1934, the year of Code operation, there were no failures. It is, how- 
ever, proolematical whether this showing is the result of generally improv- 
ed conditions or of the effect of the Code. 1/ 

The si::-year period, 1929 through 1S34, represented a, decided 
improvement over the four-year period, 1925 through 1923, when there \7ere 
46 failures with liatilities totaling $9,984,887. 

Tatle VI shows the number of failures and the amount of liabilities 
involved for each year from 1925 through 1934, as follows: 

TABLE VI 

Number of Failures and Amount of Liabilities, 
1925-1934 



Year llumber Amount of Liabilities 

1925 12 $3,162,200 

1926 8 1,132,600 

1927 12 1,080,124 

1928 14 4,609,963 

1929 7 1,131,000 
1330 5 465,200 

1931 9 1,219,938 

1932 3 25,400 

1933 2 1,773,241 

1934 none none 



Source: Dun and Bradstreet, Special Tabulation for 
ISA, Research and Planning Division. 



1/ See i;PA, Research and Planning Division, Code Administration PLeport, 
"Rubber Ilanufacturing Industry," by W. H. Cross (March, 1335) p. 6. 



Total Value of Production 

The total value of the Industry's orodticts declined from $770,177,000 
in 1929 to $299,313,000 in 1933, a decrease of $470,864,000, or about 60 
per cent. (See Table VII.) However, coiiroared with the peak year of 1925, 
the decrerse in value amounted to $625,689,000. This decrease in value 
is due not onl3' to the decrease in volume but also to the price policies 
of the Industrir. 1/ 



1/ See IffiA, Research and Planning Division, "Material Bearing on the 
Rubber Tire Industry," by A. L. Kress (llovember 3, 1933), p. 6. 

8841 



-13" 

tabi:e VII 

Annual Value of Production for Selected Years, 
1921-1933 a/ 

Year Amount 

( In thousands) 

1921 $496,123 

1923 644,194 

1925 925,002 

1927 869,688 

1929 770,177 

1931 406,283 

1933 299,313 

Source : Census of Manufactures , 1929 and 1933 , 
"Butter Products," Rubber Tire and 
Inner Tube Industry. 

a/ The data are for the entire production 

of tire plants, including therefore some 
secondary products. 



Total Vol'dme of Production 

The tots,l volaine of production of pne-umatic casings declined from 
69,765,000 casings in 1929 to 45,376,000 in 1933, a decrease of 24,389,000 
casings, or 34.9 per cent. (See Table VIII.) The 1934 production is 
estiiaa.ted at 47,171,000 casings, representing a slight gain over the 1933 
production. The low point in production occurred in 1932 when only 
40,085,000 casings are estimated to have been produced. 

TABLE VIII 

Annual Production of Casings, 
for Selected Years, 1925-1934 



Year Euinber 

(in thousands) 

1925 58,784 

1927 63,550 

1929 69,765 

1931 49,143 

1932 40,085 a/ 

1933 45,376 
1954 47,171 a/ 



Source: Census of Manufactures . 1929, and 1933 , "Rubber Products," 

Paibber Tire and Inner Tube Industry, except as otherwise indicated, 

ay' Estimated by NEA, Research and Planning Division. 
8841 



-14" 
JTinnipal Cause of De cline in Vol-ume 

The principal cause of the decline in volume is stated to "De the 
increasing life' of tires. All of the tire manufacturers maintain a staff 
of research chemists who are constantly striving to improve the quality 
of the tires produced. The result of their efforts is seen in the 
constantly increasing mileage given by tires. Tahle IX shoe's hon mileage 
ho,s ■ increased since 1914, 

TABLE IX 

Average Mileage of Tires, for 
Selected Years - 1914-1933. 



Year Average Mileage 

1914 3,500 

1922 8,000 

1930 15,000 

1933 20 , 000 

Source: Rubher Manufacturers' Association, 
Brief submitted to KRA, 1933. 

The Hubber Manufacturers' Association, in its brief (1933), stated that: 

.' ",,t'he present day tire \7ill on the average afford ap-^roxiraately 20,000 
; miles and when carefully supervised as to inflation, proper mounting and 
'■ -oroper loads, frequently affords as high as 50,000 miles and often as 
'.high as 65,000 to 75,000 miles." 

Mr. Boris Stern, of the Department of Labor, in his study, 
Labojr Productivity in the Automobile Tire Industry , 1/ stated that: 

" ,... constant improvement in the quality of 
tires may result eventually in the manufacture of tires 
that v.dll last as long as the average automobile. In 
that case, the largest source of the present demand for 
tires will be automatically eliminated and tire manufac- 
turing rrill be reduced to a coranaratively minor part of 
the automobile industry." 



1/ Bureau of Labor Statistics, Labor Productivity in the Automobile 
Tire Industry , by Boris Stern. (Bulletin No. 585, July, 1933), 



8841 



-15- 
Chapter II 
LABOR STATISTICS 1/ 
Total Nujn"be.r of Employees 

EmplojTnent decreased from 83,260 wage earners in 1929 to 52,960 wa^c 
earners in 1933, a decrease of 30,300 wage earners, or 36 per cent, as shown 
in Tafele X, "below. However, the low point in employment occurred in 1932 
when only 44,710 wage oarners were employed, representing a decrease of 
38,550 wage earners, or 46 per cent, compared with 1929« 



Ecrployment for the years 1929 through 1934 is shown in the following 



tahle: 



TABLE X 



Annual Employment, 1929-1934 



Year 



Emnloyment 



Numher 



Index 
(1929=100) 



1929 
1930 
1931 
1932 
1933 
1934 



83,260 
59,760 
49,130 
44,710 
52,960 
62,150 



100.0 
71.8 
59.0 
53.7 
63.6 
74.6 



Source: Index as puhlished by Bureau, of 

Labor Statistics for "Eubber Tires 
and Tubes" in Trend of Employment ; 
shifted to 19C9 base, adjusted to 
1933 Census totals, and multiplied 
by Census base by NEA, Research and 
Planning Division. 

Employment and Waj^es by States 

Table XI shows employment and wages by principal states for 1929, 1931, 
and 1933. It will be noted that detailed breakdcms are not available for 
1931 and 1933, but that in each year Ohio accounted for around 65 per cent 
of both total employment and total wages. 



1/ See Appendix, Exhibit A, for table giving Statistical Summary of the In- 
dustry", 1921, 1929, 1931, and 1933. 



8841 



-16- 
TABLE XI 
Employment and Wages, by Principal States 



State 




1929 


1931 




1933 




Wages 
Employment 

(000' s) 


Wages 
Emnoloyment 

(000' s) 


Wage s 
Employment 

(OOO's) 


California 

Iowa 

New Jersey 

Oliio 

Pennsylvania 

Wisconsin 


5,339 
193 
2,000 
55,307 
1,637 
3,922 


$8,172 

191 

2,641 

88,165 
1,926 
5,235 


3,756 
~ a/ 
-a/ 
32,180 
-a/ 
- a/ 


$4,931 

-ay 

-a/ 
41,933 
-a/ 
- aJ 


3,145 

-ay 
-ay 

35,521 
-a/ 
-a/ 


$3,118 

-ay 
-ay 

37,888 
-a/ 

-ay 


All others 


14,065 


20,751 


13,223 


16,225 


14,210 


13,731 


Total 


33,263 


127,082 


49,159 


63,089 


52,975 


54,737 


Source: Census of Manufactures, 


1929 and 1933, "Rutber Products, 


, " RulDber 



a/ 



Tire and Inner Tube Industry. 



Included in "All Others.' 



Seasonality of Employment 

The unsettled conditions -vithin the Industry have-not only greatly 
accentuated the seasonality of employment, but have also resulted in varying 
seasons of peak employment. For example, in 1929 employment increased in 
the early months of the year, reaching a pealc in May. On the other hand, in 
1933 employment did not increase until later in the year, reacing a peek "in 
August. The year 1934, ho\7ever, was more like 1929, with employment reaching 
its pealc in May. 

Table XII, which follows, shows employment by months for the years 1929, 

1933, and 1934, with an index based on the average monthly employment for 
each yeeJ-. This table shows that in 1929 monthly employment varied from 
63,110 wage earners in December, to 92,010 wage earners in May, a difference 
of 28,900 wage earners, or about 47 per cent. In 1933 employment varied from 
41,960 wage earners in January and April to 64,110 wage earners in August, 

a difference of 22,150 wage earners, or slightly more than 50 per cent. In 

1934, employment was more nearly uniform, with a difference of about 20 per 
cent between peak and low point. The peak was reached in May, v/ith 68,280 
employed v/^age earners, and the low point was reached in November, with 
56,790 employed wage earners, a difference of 11,490 employed wage earners. 



8841 



-17- 
TABLE XII 
Monthly Employment 
(Index Based on Average Monthly Employment for Entire Year) 



Month 


19 


'29 


1933 




1934 






Number 


Index 


Number 


Index 


Number 


Index 


January 


86,840 


104.3 


41,960 


79.2 


59,030 


95.0 


Fetruary 


87,840 


105„5 


42,960 


81.1 


61,530 


99.0 


March 


89,340 


107.3 


41,760 


78.9 


64,450 


103.7 


April 


90,590 


108.8 


41,960 


79.2 


67,780 


109.1 


May 


92,010 


110,5 


46,290 


87.4 


68,280 


109,8 


Juno 


91,260 


109. G 


53,210 


100.5 


68,190 


109.7 


July 


89,510 


107.5 


59,950 


113,2 


63,950 


102.9 


August 


05,680 


102,9 


64,110 


121.0 


61,030 


98,2 


September 


81, €-80 


98.1 


62,860 


118.7 


58,120 


93.5 


Octoher 


75,850 


91.1 


61,530 


116.2 


57,280 


92,2 


November 


65,440 


78,6 


59,780 


112.9 


56,790 


91.4 


December 


63,110 


75.0 


59,280 


111.9 


59,370 


95,5 


Average 


83,260 


100.0 


52,960 


100.0 


62,150 


100,0 


Source: Index as publi 


shed by : 


Bareau of Labor Stat is 


sties for ' 


"Rubber Tirei 


and 


Tubes" in 


Trend of 


Employment; b 


ase shifted, adjusted to 1933 



Censis totals, and multiplied by Census base by NRA, Research and 
Planning Division, 

Total Annual Wages, and Per Cent ^ich Vifages are of Total Value of Product 

Table XIII shows that total annual wages decreased from $127,082,000 in 
1929 to $54,737,000 in 1933, a decrease of $72,345,000, or 57 per cent. This 
decrease in wages, however, was slightly less than the decrease in value of 
products, which, during the same period, decreased 61 per cent. Wages, there- 
fore, during the depression increased in per cent of value of products from 
16,5 per cent to 18,3 per cent. 



8841 



-13- 



TABLE XIII 



Total Annual Wages and Wages as Per Cent of Total Value of Product 

(in thousands) 



Year 



1929 
1931 
1933 



Total Value 
of Product 



$770,1"? 
406,283 
299,313 



Total Wages as Per Cent of 

Wages Total Value of Product 



$127-082 
63,-089 
54,737 



16,5 
15,5 
18.3 



Soutcg: Census of Manufactures, 1953 . "Rubber Products," Rubber 
Tire and Inner Tube Industry. 

Index of Payrolls 

The index of paj^rolls declined from 100.0 in 1929 to 35.6 in 1932, the 
lov/ point of the depression for the Tire Manufacturing Industry. In 1933 the 
index rose to 43,1 and in 1934 it further increased to 59.1. Table XIV 
shous the index from 1929 through 1934. 

TABLE XIV 



Index of Payrolls, 1929-1934 
(1929=100) 



Year 



1929 
1930 
1931 
1932 
1933 
1934 



Index 



100.0 
70.0 
49. S 
35.6 
43.1 
59.1 



Source: Index as published 
by Bureau of Labor 
Statistics for "Rub- 
ber Tires and Tubes" 
in Trend of Em-ployment ; 
shifted to 1929 base 
and adjusted to 1933 
Census totals by NRA, 
Research and Planning 
Division. 



Average Hgor l y Wages^ 

The Rubber Tire I\Ianuf-ax>turing Industry has always paid higher wages 
than manufacturing ia.d'cf'stry in general. 1/ Even during the depression, 

1/ See IffiA, Research and Planning Division, "Material Bearing on the Rubber 
gg^^Iire Industry," by A. L. Kress (November 9, 1933), p. 9. 



-19- 

hourly wage rates were for the most part maintained. This is sho\7n in 
Table XV, which gives hourly wage rates, by years, from 1929 through 1934. 
In the depth of the depression average hourly wages were only 8.6 per cent 
below the wages of 1929. Since 1932 wage rates have steadily risen and in 
1934 were higher than even the 1929 level. 

TABLE XV 
Average Hourly Wage Rates, 1929-1934 



Average Hourly Wage 



Year 



1929 
1930 
1931 
1932 
1933 
1934 



Amount 


Index 


(Cents) 


(1929=100.0) 


67,7 


100.0 


68.0 


100.4 


67,3 


99.4 


61.9 


91.4 


63.2 


93.3 


77.6 


114.6 



Source: From 1932 to date, basic data from 
Bareau of Labor Statistics data for 
"Rubber Tires and Inner Tubes," as 
published in Trend of EmTPlo.'VTaent ; 
for previous years from National 
Industrial Conference Board, Service 
Letter , adjusted to B'.ireau of Labor 
Statistics series. Index computed 
by MA, Research and Planning Division. 

Average Annual Wage 

Average annual wages received by rubber-tire workers have been, on the 
average, 15 per cent higher than the average wages received by workers in 
all manufacturing indastry. This is illustrated by Table XVI. 



8641 



-20- 
TABLE XVI 

Comparison of Annual Wages Paid by the Tire Manufacturing 
Industry and "by All Manufacturing Industries, for Census 

Years, 1921-1933 







Annual 


Wag€ 


3s Paid 


-1 r ' '1 ' 


per 
in 


Cent 
I Fav 

Ma 


Differential 


Year 


Tire Man- 
ufacturing 




All 


Manufactur 
Industry 


ing 


or of Tire 
nufacturing 


1921 
1923 
1925 
1927 
1929 
1931 
1933 




$1,350 
1,470 
1,475 
1,535 
1.530 
1,280 
1,035 






$1,180 
1,255 
1,280 
1,300 
1,315 
1,110 
869 










14.5 
17.0 
15.0 
18.0 
16.0 
15,5 
19.0 


Source: 


Bas 


ic data from 


Census 


of Manufac 


tures for 


the 


years 


noted, "Rub "be] 



Products," Hubber Tire and Inner Tube Industry. Computed by IffiA, 
Division of Research and Planning, by dividing total annual nages 
by average number of wage earners, both full and part-time. 

The above data must be understood to indicate the average income re- 
ceived by all employoes, both part and full-time workers. They indicate 
that employees in the tire industry averaged, during these years, wages which 
were 14,5 to 19 per cent higher than the wages received by workers in manu- 
facturing industry in general. 

Avera/^e Ueekly IJar^e 

As shown in Table XVII, the average weekly wage declined from $29.95 in 
1929 to $20.22 in 1933, a decrease of $9.73, or 32.5 per cent. 

In 1934, as a result of the increase in the average hourly rate, weekly 
wages increased to $23.58, an increase of $3.36 per week, or 17 per cent 
over 1933« 

TABLE XVII 

Average Weekly Wages, 1929-1934 

Yesjr Average Woekly Wage 



Amount Index 

(I929:::i00.0) 



1929 $29.95 100.0 

1930 28.77 96.9 

1931 25.55 86.8 

1932 20.67 68.0 

1933 20.22 58.6 
1954 23.58 79.9 

Source: Basic data as published by Bureau of Labor Statis- 
tics, for "Rubber Tires and Tubes" in Trend of Em- 
ployment . Index computed by NRA, Research and Plan- 
8841 ning Division. 



i 

? - 
» ■■■ 

t '. 



iChr^i-bi*::: 



-21- 
Estimated Average Weekly Payroll 

Ta"ble XVIII shows the average weekly payrolls for the period 1929 
through 1934. In 1929 the estimated average \7eekly payroll was $2,444,000. 
(The highest average weekly payroll during any one month of 1929 was in May 
when weekly payrolls averaged $2,059,000; the lowest was in Decemter when 
weekly payrolls averaged $1,716,000.) The low point in average weekly pay- 
rolls was in 1932 when the average for the year was only $870, 000, a decrease 
of $1,574,000, or 64 per cent, compared with 1929. 

Beginning in 1933, the estimated average weekly payroll shctred incr<?ases 
and, in 1934, amounted to $1, -444, 000, an increase of $574,000, or 66 per cent, 
over the low estimated for 1932. 

TABLE XVIII 

Estimated Average Weekly Payroll, 1929-1934 

Average Weekly Payroll 



Year Index 

Amount (1929=100.0) 

1929 $2,444,000 100.0 

1930 1,711,000 70.1 

1931 1,212,000 50.3 

1932 870,000 35.5 

1933 1,053,000 43.1 

1934 1,444,000 59.0 

Source: Index as published "by Bureau of Labor Statistics 
for "Buhber Tires and Tubes" in Trend of Emisloy- 
ment; shifted to 1929 base, adjusted to 1933 
Census totals, and multiplied by Census base by 
NRA, Research and Planning Division. 

Average Tfeekly Hours 

Table XIX shows the average weekly hours for the period, 1929 through 
1934, Average weekly hours declined from 44,2 in 1929 to 31.7 in 1933, a 
decrease of 12.5 hours, or 28 per cent. In 1934 average weekly hours de- 
clined further to 30.7. 

The decrease in weekly hours was the result of the policy of the Industry 
to "share the work." In 1932 the Industry — especially those ostablishments 
located in Akron — changed from an 8-hour shift to a 6-hour shift and from a 
six to a four or five-day week. By this means, the Industry managed to lessen 
for labor the hardships attendant upon the depression and the increased 
productivity of labor. Because of this policy, the Code provision limiting ■ 
hours to 36 hours per week accomplished very littlo re-employment inasmuch 
as the Industry wa,s already on a 30-hour week. 



8841 



-22- 

TiSLE XIX 
Average Weekly Hours, 1929-1934 



Average Hours Weekly 



Yeai 



Kurnber 



1929 44.2 

1930 42.3 

1931 37.9 

1932 32.7 

1933 31.7 

1934 30.7 





Index 




(] 


.929=100. 


0) 




100.0 






96.0 






85.5 






73.8 






71.8 






69,5 





Source: Prom 1932 to date, tiasic data from Bureau of La'oor 
Statistics data for "EutlDer Tires and Inner Tubes," 
as published in Trend of I^mploynent ; for previous 
years from National Industrial Conference Board, 
Service Letter adjusted to Bureau of Labor Statis- 
tics series. Index computed by 1-JRA, Research and 
Planning Division, 

Prodiictivity of Labor 

The United States Department of Labor has made an excellent surve;^ of 
productivity in the Tire Industry, based on studies in six plants which pro- 
duced 60 per cent of the total output in 1931. 1/ 

This survey points out that in these six plants the 1931 production was 
greater by 21,400,000 tires than the 1921 production. This would ha.ve 
necessitated an increase of 35,500 employees, at the 1921 rate of man-hour 
output, Actue.lly there wns a net decrease of 7,150 employees, or a tota,l of 
42,650 direct labor emloyees technologically displaced. This condition has 
been characteristic of the entire Industry. 

Table XX shows that the index of productivity of labor, based on the 
number of tires produced per man-hour, and, using the year 1926 as 100, in- 
creased from 76.34 in 1922 to 149.51 in 1931. In other words, during that 
decade the number of tires produced per man-hour increased almost 100 per 

cent. 

Table XX also shows that the index of productivity.'- of labor, measured 
by the pounds produced per man-hour, increased from 68.46 in 1922 to 186.08 
in 1931, an increase of 172 per cent. 

1/ Bureau of Labor Statistics, Labor Productivity in the Automobile Tire 
Industry , by Boris Stern (Bulletin No. 585, July, 1933), p. 26. 



8841 



TABLE XX 



Index of Productivity of LalDor, Six 

Representative Plants, 1922-1931 

(1926=100) 



Index 



Year Otitput Per Man-Hour 

Tires Potmds 

1922 76.34 68.45 

1923 85.17 74.50 

1924 89.75 77.10 

1925 8G.B0 83.55 

1926 100.00 100.00 

1927 107.20 114.17 
192Q 113. 9fi 127.20 

1929 117.12 138.32 

1930 124.43 158.75 

1931 149.51 186.08 

Source: Bureau of Labor Statistics, Labor Productivity 
in the Au toi i:o"bile Tire Indu stry, by Boris Stern 
(Bulletin No. 535, July, 1933), p. 7. 

Causes of Technological Displacement of Labor 

It is seldom possible to segregate any one factor as "the cause" of the 
increased productivity of labor in a manufacturing plant. In some cases 
majer changes — such as, for instance, the invention of the Owens bottle- 
blcjing machine in the glass industry — were revolutionary in scope and 
',7ere responsible for abrupt and large displacements of workers. 

The Tire Industry, however, offers an instance in which the increased 
productivity of labor was due more to the so-called evolutionary small 
changes in production than to any large revolutionary change in the process 
of tire manufacturing. Essentially thers has been but one major chrnge in 
the manufacture of pneumatic tires, and that occurred when the core process 
of tire building gave place to the flat-drum process. In some plants this 
occurred as early as 1919. By 1927 practically all of th« major plants in 
the Industry had already adopted the drum process. But the increase in the 
man-hour output did not cease in 1927. On the contrary, since 1927, and es- 
pecially in 1931, there has been rn increase in man-hour productivity larger 
than during any preceding year in the history of tire building. 



8841 



-24- 



Chapter III 

MA'IERIILS - RAW MD SHvII-PROCESSED 

Qu3,ntity and Cost of Materials Consigned 

The Census re-oort on the rubber industries as a i^hole for 1939 contains 
certain detailed information on materials used, hut the same information was 
not called for in 1931 nor in 1933. As officially reiDorted, the "cost of 
materials" includes the cost of materials, containers for ;'3roducts, and fuel 
and purchased electric energy, which for the rubber industrxes (including tires 
manufacturing and other branches) was as shown in Table p/I for the year 1929. 

TABij: x:<;i 

Q,uantity and Cost of Materials Used in Rubber Industry, 1929 



Material 



Unit 



Quantity 



Value 



Crude Rubber Long tons 

Reclaimed Rubber Long tons 

Carbon Black Pounds 

Zinc 0:cide Po-uads 

Sulphur Pounds 

Tire Fabrics Pounds 

Hose and Belting Ducks Pounds 

Other Cotton Fabrics Pounds 

Other Fabrics Pounds 

Other Fabrics 

Other materials 

Fuel and P;.rchased Electric 

Energy 

Total 



462,101 

206,091 

168,888,558 

133,675,413 

61,296,703 

280,057,041 

34,335,673 

70,153,962 

9,025,990 



$209,458,746 

26,864,425 

13,135,352 

9,148,622 

1,354,150 

126,522,448 

12,503,375 

28,450,536 

5,816,904 

120,281,970 



19,677,375 
$578,377,681 



Sotirce: Bureau of Forei^rn and Domestic Commerce, "Rubber Industry Letter Ko. 
6," (August 29, 1933) as compiled from Census data. 



Fercantage Distribution of Costs 

The percentage distribution of costs in the Tire Manufacturing Industry 
for the years 1927 to 1931 is shovm in Table XXII. This table sho'-s striking 
differences in the relative importance of total cost of materials for different 
years. Materials, in 1929, constituted the larger nart of total costs but, in 
1931, salaries, wages, and other "added" costs constituted the la,rger part. 

Rubber and cotton are the materials of outstanding importance, and it will 
be noted that in 1931 the cost of cotton and other fabrics outranlced that of 
crude rubber. 



8841 



iO" 



TiiSLE XKII 
Percentaj^e Distrilmtiori of Costs 



Item 



IS?-; 



192S 



1931 



Rutber 

Reclaim 

Fabrics 

Fuel and Po^-er 

Other Materials 

Total Materials 

Sa.laries 

Wage s 

Other "added" 

To-:;al Va'L.ie Addsd 

1:o''-al VelMC of Product 



57.40 



30.68f& 


23.45fo 


14.75;1 


2.39 


2.16 


1.73 


12.16 


18.63 


15.40 


1.27 


1.34 


1.72 


11,00 


10 . 21 


S.13 



55.79 



42.73 



4,55 


4.04 


5.41 


13.81 


16.50 


15.53 


24.14 


23.67 


36.33 


42.60 


-.4.21 


57.27 


100.00 


100.00 


100.00 



Sourcj* T^u"':au of Foreign and Doraestic Comnarce, "Rubber Industry Letter Wo, 
12. ■■ (Deosnber 5, 1933^. 



8841 



-26- 
Chapter IV 
PRODUCTION Am DISTRIBUTION 
Value 01" Production tiy princJ-nal States 

The value of production, hy principal states, is sho^Tn in Tahle XXIII 
for the years 1929 and 1933. The Industry is largely centered in Ohio, \7hich 
"oroduced 65 r^er cent of the total value of tires manufactured in 1929, and 63 
per cent in 1935. The next most important state for which senarate data are 
available vrs California, ;7hich produced about 7 per cent of the total in 
each of the years sho^vn. 

TABLE XXIII 

Value of Production "by Principal States, 1929 and 1933 



State 



1929 



1933 



Value 


Per Cent 


(000' s) 


of Total 


$56,288 


7.3 


1, 383 


.2 


11,386 


1.5 


503,197 


65.3 


13,491 


1.7 


41,244 


5.3 


143,287 


18.7 


770,176 


100.0 



Value Per Cent 
(000' s) of Total 



California 

Iowa 

New Jersey 

Ohio 

Pennsylvania 

Wisconsin 

All Others 

Total 



$20,979 


7.0 


— a/ 

— a/ 
188,617 

-a/ 
a/ 


-a/ 
- a/ 
63,0 
-a/ 
-a/ 


89,718 


30.0 


299,313 


100.0 



Source: Census of Manufacture s, 1929 and 1933, "Rubber Prod;icts," Rubber 
Tire and Inner Tube Industry, 
a/ Included in "All Others." 



With some slight qualifications. Table :C{IV demonstrates the interstate 
character of the Industry. The data show that in 1929 the si:; states which 
"oroduced 81 per cent of all tires and tubes cons'oined only 28 iper cent, while 
the remaining states, which produced only 19 per cent, consumed 72 per cent. 
It must be noted that the sales data jjertain only to sales of leading manu- 
factiorers; but these may be assumed to be fairly representative of sales of 
all manufacturers. In addition, no allowance has been made for e:roorts, but 
they constituted less than 6 per cent of total iDroduction in 1929, and 
furthermore, most of the exports — if not all — must also enter into inter- 
sts.te com;:ierce. 1/ 

2J See Appendix Exhibit B for table giving Net Sales of Leading Manufacturers 
of Tires, Tubes, Solids and Accessories, by States, 1929 and 1934. 



8841 



-27- 

TABIiE XX IT 

Production and Sales of Tires and Tuties by Selected 
States, as Per Cent of Total Value, 1929 



State Production a/ Sales b/ 





California 


7.3 




Iowa 


0.2 




Ne^v Jersey- 


1.5 




Ohio 


65.3 




Pennsylvania 


1.7 




Wisconsin 


5.3 




Total, 6 States 


81.3 




Total, All Others 


18.7 



Total 100.0 100.0 

7.6 
2.1 
2.9 
6.2 
7.0 
2.5 

28.3 

71.7 



Sou:\;£: ji? indicated in footnotes. 

a/ Tnble XXII T, above. 

b/ Rr.bber Haniifacturers' Association, confidential bulletins issued 

Arpril 12, 3 930, and April 5, 1935. Sales are as re^jorted by lead- 
ing tire nanufacturers. 



Estimated Capacity 

The determination of the productive capacity of an industry is usually 
difficult, Pla.nt capacity is seldom static since improvements in processes 
tend steadily to increase it. Conversely, an increasing variety of products 
may restrict capacity. 

The NSA, Research and Planning Division, estimated the normal capacity 
of the Tire Industry as of January 1, 1933, at approximately 98,500,000 tires 
per yerr. 1/ This estimate was ba.sed on 281 days' operation per year nith 
prod''.K;tion at the rate of 350,000 tires per day. 

The former Code Authority for the Industry, in its letter to De-outy 
Ajrainistrator E. D. Bransome of Aug-.;st 1, 1934, estimated the anniial capacity 
at 82,026,000 tires. This estimate was based on an hourly ;oroduction of 
13,671 tires and a year of 250 da^^s of operation. The Code Authority stated, 
however, that this ivas a,n -uxiusually conservative figure, and the difference 
between the two estimates is not very great — less than 1,000 tires per hour. 

l/ See MA, Research and Planning Division, "Material Bearing on the Rubber 
Tire Industry," by A. L. Kress (November 9, 1933). 

8841 



-28- 
Estimated Over-Capacity 

The excess capacity of the Tire Industry is -universally regarded as a 
major factor in the destructive coraneoition which characterized the Industry 
even "before the depression iDegan. 

Before conclusions can he reached a s to the extent of over-caps city, 
seasonal variations in production must he considered. Assuming a maximum 
a,nnual demand in the future apt)roximately equal to the 1929 production — 
Or 69,000,000 tires — the average monthly production would he 5,750,000 
tires. 

Table XXV gives estimated actual monthly i^roduction reojaired, after 
making a.llov'ance for the usioal seasonal variations, to meet this demand. 
Production would vary from 4,870,000 tires in Novemher to 6,513,000 in Ai-^ril, 
or 36 -ner cent. The April production is at the rate of a-oproximately 80,000- 
000 tires per year. Assuming that the index is typical for all producers 
a.nd that the variations cannot he smoothed out hy building up inventories for 
spring demand, the Industry must have a cariacity of 80,000,000 tires to meet 
an annual demand of 69,000,000 tires. 

According to the estimate of present capacity as made by 1TEA> and 
assuming nroduction equal to that in 1929, the Industry now has an excess 
capacity of 18,500,000 tires, or 23 per cent over and above the capacity 
requirements of 80,000,000 tires for the seasonal peak. It is not believed 
furthermore, that demand will exceed 70,000,000 tires over the ne-::tfive years. 

y 

TA3LE KvV 

Seasonal Variation in Tire Production, and Monthly Output 
Hequired for Annual Production of 69,000,000 Tires 



Seasonal Monthly Output 

Month Index (1,000 Tires) 



Januxary 


95.3 


February 


99.2 


March 


110.8 


April 


115.0 


May 


111.8 


June 


113.0 


July 


95.0 


August 


103.0 


September 


94.0 


October 


89.3 


ITovember 


84.7 


December 


37.9 



5,479 
5,704 
6,371 
6,513 
6,428 
6,498 
5,520 
5,922 
5,405 
5,135 
4,870 
5,054 



Source; I^TRA, Research and Planning Division. Constructnd from monthly tire 

production renorte-^. by the Rubber Manufacturers' Association for 1923 
to 1231. For details a,s to method, see IffiA, Research and Planning 
Division, "Material Bearing on the Rubber Tire Industry," by A. L. 
Kress (November 9, 1933) 

1/ Based on consideration of such factors as increased mileage of tires, in- 
creased use of retreaded tires, and decrease in "oroduction of automobiles. 
8841 



-29- 

Chapter Y 

FOREiaN TRADE 

Positi on of United States in Sxportinp: Trade 

As shoi,TO in Tatle XXVI the United States ranked first among cQ-untries 
exporting pneumatic automobile casings in 1929. In that year the United State; 
e:cported 31 per cent of total world exports. Our nearest competitor v/as 
Canada, with exports totaling 19 per cent of world trade. 

In 1933 the United States exported only 22 ner cent of total "orld ex- 
ports and ranked second in importance. By this year first nlace was yielded 
by the United States to the United Kingdom which in 1933 exnorted 28 per cent 
of total world exports. The rise of the United Kingdom was due to several 
factors, among which may he mentioned; (1) the e stnblishraent of branch factor- 
ies of American companies in the United liingdom, '^hich shifted American busi- 
ness to that country; (2) the tariff policies of the British Empire; (3) 
England's suspension of the gold standard; and, (4) American adherence to the 
gold standard. 

Table XXVI shows the percentage of world exnorts shipned lij the leading 
coujitries and their rani' in importance for the years 1929 and 1933, 

TABLE XXVI 

Percentage Distribution of World Exports among 
Exporting Countries, 1929 and 1933 



Country 



Percentage of Total World Shii^ments 
1929 1933 

Percentage Rank Percentage Rank 



United States 

Canada 

United Kingdom 

France 

Italy 

Germany 

Belgium 

Japan 

Total 



31.4 


1 


22.0 


2 


18.6 


2 


8.6 


6 


13.7 


4 


28.2 


1 


15.8 


3 


13.9 


3 


9.2 


5 


10.6 


5 


3.2 


7 


2.3 


8 


7.2 


6 


10.7 


4 


.9 


8 


3.7 


7 



100.0 



100, c 



Source; Bureau of Foreign and Domestic Commerce, "Rubber Industry Letter No. 
16" (Octolser 15, 1954). 

Table XXVII shows the total annual world shipments of automobile casings 
during the decade 1924-1933, and %he United States' share in each year. It 
V7ill be seen that international shipments reached their peak in 1929. Since 
1929 there has been a continued drop in the shipments — with the exception of 
1933 which showed a slight increase over 1932 — due in part to the world-wide 

8841 



-30- 

depression; and in part to the t-uilding of tranch factories in foreign coun- 
tries thus tending to make each country self-sufficient and to decrease world 
trade. The United States' percentage of the total has fluctuated irregularly; 
it declined from 1930 to 1932, hut showed some improvement in 1933. 

TABLE XXVII 

U. S. Exports and Total World Exports of Automohile 
Casings, 1924-1933 
(Unit = thousand casings) 





Exports from 




Total World 


Pe: 


rcentage 




United States 


a/ 


Exports 


w 


U.3 


. Exports 


Year 










a,re 


of Total 


1924 


1,250 




5,098 






24.5 


1925 


1,475 




6,630 






22.2 


1926 


1,497 




6,627 






22.6 


1927 


2,630 




8,752 






30.0 


1928 


2,504 




8,632 






29.0 


1229 


2,796 




9,383 






29.8 


1953 


2,504 




8,232 






30.4 


1931 


1,771 




6 , 215 






28.5 


1932 


908 




5,151 






17.6 


1953 


1,058 




5.6-25 






18.8 



Source; 



a/ 



As indicated in footnotes. 

Bureau of Foreign and Domestic Commerce, Foraign Commerce and Na.viga- 
tion, of the United States , 1924-1933. 

Bureau of Foreign and Domestic Commerce, "Ruhher Industry Letter No, 
161' (October 15, 1934), 



Volume of Exports 

In 1929 the United States exoorted 2,796,000 pneumatic automobile casings, 
hut in 1933 exoorts amounted to only 1,058,000 casings, a decrease of 1,738,- 
000 casings, or 62 per cent. 

The exports of tubes decreased from 1,899,000 tubes in 1929 to 664,000 
tubes in 1933, a decrease of 1,255,®00 tubes, or 55 "oer cent. Exports of solid 
tires decreased from 45,000 tires in 1929 to 7,000 tires £n 1933, a decrease of 
85 per cent. 

Table XXVIII shows the volume and value of exiorts of rubber tires and ■ 
tubes for 1929 and 1933, and also shows the changes in volume and value for 
the two years. 



8841 



-31- 



Value of Exports 



The total value of eyjorts declined from $39,079,000 in 192S to $10,071,- 
000 in 1933, a decrease of $29,008,000, or 74 per cent. For all groups, the 
decrease in value was greater than the decrease in voliorae due to lower unit 
value s . 

TABLE XXVIII 



Volume and Value of United States Exports of Ruhher Tires, 

by Principal Product G-roups, 1929 and 1933 

( In thousands ) 



Product Group 



1929 



1933 



Volume Value 



Volume Value 



Percentage decreas e 
Vo lume Value 



Total 


— 


$39,079 


— 


$10,071 


— 


74.2 


Casings - Total 


2,796 


33,480 


1,058 


9,010 


52.2 


73.1 


Truck and Bus 


287 


7,555 


211 


3,323 


26,5 


56.1 


Other Auto Casings 


2,509 


25,924 


847 


5,693 


66.3 


78.1 



Tuhes - Auto 



1,899 



3,410 



664 



692 65.0 



79. 



Other Casings and 
Tubes 



200 



591 



26 



58 37.0 



90.2 



Solid Tires 








Auto and Trucks 


45 


1,301 


7 


Others (lbs.) 


1,639 


297 


1,113 



183 34.5 86. C» 
122 32.1 59.0 



Source; B-ureau of Foreign and Domestic Commerce, Foreign Corn nerce and 
naviga tion of the United States , 1929 and 1933. 

Exportation of Capital and Labor by the Industry 

Within the past few years, the Tire Manufacturing Industry has witnessed 
a change in the nature of its exports; that is, instead of eiroorting tires, 
the Industry has exported capital and skilled labor to build branch factories 
in foreign countries. Complete data as to the number of foreign factory 
branches are not available, but the following branches are known; 



8841 



i 



TABLE XXIX 

Location of Foreign Branch Factories of Leading 
Companies in the Industry 



Company Country in which 

Factory is Located 



Firestone Argentina, Canada, England, Spain 

General Mexico a/ 

Goodrich Canada, France, Japan 

Goodyear Argentina, Australia, Canada, England, Java 

India Scotland a/ 

United States Canada 



Source; Opinion of G. S. Earseman, Assistant Deputy Administrator, NEA, 
September, 1935. 

?/ License agreement only. 

The huilding of a branch in a. foreign country means not only the loss of 
that oc'-'jntry as a market for American-manufactured tires, but is also likely 
to i'Tvolve a serious competition for American tires in that country. For 
example, when the Firestone and Goodyear Companies established factories in 
Argentina, tariffs were immediately imposed by Argentina upon all imported 
tires, thus closing that market to American tires. Furthermore neighboring 
South American countries can be more efficiently supplied from the Argentina 
factory than they can f rom the Akron, Ohio, factory. 

Another consideration is that the foreign branch factories have only 
recently been built and they represent the most modern developments in factory 
eq_uipment and design. This, together with their lower priced labor, makes 
them serious competitors of the American Industry. 

There are some authorities who believe it is only a matter of a short 
time before foreign-built tires invade wur domestic markets. 

U. S. ImToorts 

Imports of pr.^.uraatic automobile sasings into the United States are of 
negligible importance. During the -oeriod 1923 through 1933, our imriorts 
were always less than one-half of one per cent of our domestic production. 

The largest imports occurred in 1924 when 183,586 casings were imported. 
Such large importations are out of -oroportion to previous and subsequent 
years, and the explanation is not known. From 1924 through 1928, imiDorts 
declined to 4,469 casings, or less than .01 ner cent of domestic production. 
Since 1928, imports have gradually increased and, in 1932, 25,472 casings 
were imported. This was the equivalent of about .06 per cent of domestic 
production. 

8841 



■I 



-33- 

The reason advanced as to why the United States has any imports at all is 
the fact that the branch factories in Canada man-ufacture certain sizes and 
t;^rpes of tires not produced in this country. 

Table XXX shows United States imports of pneumatic casings for the period 
1923 through 1933, and the percentage of iimDorts to domestic production. 

TABLE XXX 

Imports of Pneumatic Automobile Casings, 
and Percentage Imports v/ere of Domestic Production, 1923-1933 



Year 



Imt)Orts 



Domestic 
Production 



percentage Imports 
are of Domestic 
Production 



1923 


9,179 


1924 


183,586 


1925 


21,139 


1926 


17,504 


1927 


5,450 


1928 


4,469 


1929 


5,540 


1930 


7,782 


1931 


13 , 213 


1932 


25,472 


1933 


22,eC0a/ 



45,425,591 
50, 5 2C, 000 
58,784,073 
60,120,000 
63,549,949 
75,527,000 
69,765,223 
51,610,000 
49,142,622 
40,085,000 
43, ©00, 000a/ 



0.02 
0.36 
0.04 
0.03 
0.01 
0.01 
0.01 
0.02 
0.03 
0.06 
0.05a/ 



Source: Bureau of Foreign and Domestic Commerce, "Rubber Industry 
Letter Wo. 11" (December 1, 1933). 



a/ 



Preliminary 



341 



^:>_ 



-34- 
APPENDIX 
Exhitit A 
Statistical Summary of the Industry, 1921, 1929, 1931, and 1933 

Item 1921 1929 1931 1933 

Number of establishments TtS 91 54 44 

Number of v/age earners 55,496 83,263 48,341 52,976 
Average per establishment 312 915 895 1,204 

Amount paid in wages $75,054,000 $127,082,000 $62,385,000 $54,737,000 
Average per worker $1,352 $1,526 $1,290 $1,033 

Number of tires produced 

Casings 27,298,000 69,765,000 48,989,000 45,376,000 

Solid tires 401,000 424,000 103,000 85,000 

Avere^e per establishment 155,600 771,300 943,000 1,033,205 

Average per worker 499.1 043.0 1,015.5 858,1 

Number of inner tubes 

produced 32,082,000 74,043,000 47,726,000 49,167,000 

Value of tires and tubes $496,123,000 $676,364,000 $352,924,000 $299,313,000 
Average per article $17.91 $9.63 $7.19 $6.09 

Value adced by 

msjiufacture $204,559,000 $340,570,000 $221,036,000 $159,921,000 

Average per worker $3,686 $4,090 $4,574 $3,019 

Per cent wages are of value 

added per worker 36.68 37.31 28.20 34,22 

Source: 1933 data from Census of Manufactures, "Rubber Products", Eubber 
Tire and Inner Tube Industry; the remainder from luro-oj. of L.v,bcr 
Strtisticn, Ii{;bor_ produrtirlty in t hp A utc nc t.ile Tir u Indust:.-" , ':y 
;-Jo:-ip! Storn '(bulletin Ho, 585, July, 1933). 



8841 



-35- 



APPENDIX 

Exliibit B 

Net Sales of Leading Manufacturers of Tires, 
Tubes, Solids and Accessories, tv States, 1929 and 1934 



1929 



1934 



State 



Per Cent Change, 
1929 to 1934 





Amount 


Per Cent 


Amo-ont 


Per Cent 








(000 'sj 


of Total 


(000' s) 


of Total 






ALA3AI.1A. 


$ 4,730 


1.35 


$ 2,687 


1.38 


-43.2 


+ 2.2 


ARIZONA 


2,060 


.59 


1,090 


.56 


-47.1 


- 5.1 


AEEAITSAS 


3,825 


1.10 


1,803 


.93 


-52.9 


- 15.5 


CALIFO-'RIJIA 


26,686 


7.65 


16,688 


8.57 


-37.5 


+ 12.0 


COLOEADO 


3.215 


.92 


1,947 


1.0 


-39.4 


+ 8.7 


CONNECTICUT 


5,423 


1.56 


2,917 


1.50 


-45.2 


- 3.8 


DELAWARE 


784 


.22 


524 


.27 


—33. 2 


-»• 22.7 


D. C. 


1,925 


.55 


1,319 


.68 


-31.5 


+ 23.6 


ELOHIDA 


6,099 


1.75 


4,207 


2.16 


-31.0 


+ 23.4 


GEORGIA 


5,430 


1.56 


3,918 


2.01 


-27.8 


•> 28.8 


IDAHO 


1,278 


.37 


920 


.47 


-28.0 


1- 27.0 


ILLINOIS 


19,728 


5.66 


9,924 


5.10 


"49.7 


- 9.9 


INDIANA 


10,362 


2.97 


5,308 


2.73 


-48.8 


- 8.1 


IOWA 


7,400 


2.12 


3,691 


1.89 


-50.1 


- 10.9 


KANSAS 


6,754 


1.94 


3,574 


1.84 


-47.1 


- 5.2 


KENTUCKY 


4,268 


1.22 


2,630 


1.35 


-38.4 


t 10.7 


LOUISIANA 


5,719 


1.64 


2,742 


1.41 


-52.1 


" 14.0 


MAIl^IE 


2,114 


.61 


1,336 


.69 


-36.8 


+ 13.1 


MARYLAND 


3,835 


1.10 


2,553 


1.31 


-33.4 


■* 19.1 


MASSACHUSETTS 


12,303 


3.53 


6,318 


3. 25 


-48.6 


- 7,9 


MICHIGAN 


14,139 


4.06 


7,396 


5.80 


-47.7 


- 6.4 


MINNESOTA 


7,341 


2.11 


3,809 


1.96 


-48.1 


- 7.1 


MISSISSIPPI 


3,909 


1.12 


1,761 


.90 


-55.0 


- 19.6 


MISSOURI 


10,731 


3.08 


5,930 


5.05 


-44.7 


- 1.0 


MONTANA 


1,783 


.51 


1,255 


.64 


-29.6 


+ 25.5 


:mebpjiska 


4,559 


1.51 


2,475 


1.27 


-45.7 


- 3.1 


NEVADA 


556 


.16 


434 


.22 


-23.3 


t 37.5 


NEW HAI,IP SEISE 


1,329 


,38 


767 


c39 


-42.3 


t 2.6 


NEW JERSEY 


10,237 


2.94 


5,619 


2.89 


-45.1 


- Ir"^ 


NEW MEXICO 


1,038 


.30 


786 


.40 


-24.3 


4- 33,3 


NEW YOEIC 


32,530 


9.33 


16,732 


8.60 


-48.6 


- 7.8 


N. CAROLINA 


7,080 


2.03 


4,418 


2.27 


-37.6 


•* 11.8 


N. DAICOTA 


1,631 


.47 


625 


.32 


-61.7 


- 51.9 


OHIO 


21,616 


6.20 


11,560 


5.94 


-45.5 


- 4.2 






(Continued) 









8841 



-36- 



Exfai"bit E (Concluded) 



















1929 


1934 




Per Cent 


Change , 


State 










1929 to 


1934 




Amoimt 


Per Cent 


Amoijnt 


Per Cent 






(0001 s) 


of Total 


(000' s) 


of Total 






OKLAHOMA. 


$ 7,986 


2.29 


$ 4.158 


2.14 


-47.9 


- 6.6 


OREGON 


3,639 


1.04 


2,525 


1.30 


-30.6 


f25.0 


PEFiTSyLVADIlA 


24,264 


6.96 


14,346 


7.37 


-40.9 


•h 5.9 


RHODE I. 


2,177 


.62 


1,101 


.57 


-49,4 


- 8.1 


S. CiffiOLlM 


2,774 


.80 


1,844 


.95 


*-oo, b 


fl8.B 


S. DMOTA 


2,285 


.66 


814 


.42 


-64.4 


-36.4 


TEMESSEE 


5,925 


1.70 


3,626 


1.86 


-38.8 


f 9.4 


TEXAS 


20,669 


5.93 


11,770 


6.05 


-43.1 


f 2.0 


UTAH 


1,996 


.57 


1,157 


.59 


-42.0 


4- 3.5 


VERIilONT 


1,140 


.33 


549 


.28 


-51.8 


-15.2 


VIRGINIA 


4,795 


1.38 


3,267 


1.68 


-31.9 


+21.7 


WASHINGTON 


5,287 


1.52 


3,700 


1.90 


-30.0 


f25.0 


WEST VIRGINIA 5,598 


1.03 


1,943 


1.00 


-46.0 


- 2.9 


WISCONSIN 


8,729 


2.50 


5,725 


1.91 


-57.3 


-23.6 


WYOMING 


924 


.27 


452 


.23 


-51.1 


-14.8 


Total 


$348,615 


100.00 


$194,640 


100.00 


-44,2 





Source: Rubber Man\ifacturers' Association, confidential bulletins issued 
April 12, 1930, and April 5, 1935. 



8841|: 



I