Tires to War

Wanting a little more trade for himself, a retail tire dealer in Cleveland shaded prices slightly one day fortnight ago. Another dealer learned about it, shaded his prices a trifle more. The movement spread quickly throughout the city. By evening tire prices had been slashed as much as 56%. All dealers did a roaring but highly unprofitable business as private owners and truck fleet operators jammed in to buy tires for the next two or three years. Next day the big Akron rubber companies wired stern orders for the skirmish to cease. Back up went Cleveland's tire prices even faster than they had come down. . . .

Last week not a small dealer but Firestone Tire & Rubber Co., one of the ''Big Four," slashed list prices 5% to 10%. It was the opening salvo of another major price war for the already war-ravished tire industry. The reason given was, as usual, the fact that the mail order houses had cut first in their spring & summer catalogs, out last month. Goodyear, Goodrich, U. S. Rubber and smaller Seiberling met the cut but only after cursing Firestone for upsetting the applecart once again.

Pointing out that mail order prices affect less than 3% of the replacement market, Vice President Robert Smith Wilson of Goodyear growled: "That the remaining 97% of the tire market should be disrupted under such reasoning is a matter to be greatly deplored." President James Dinsmore Tew of Goodrich argued: "In our opinion present economic conditions do not justify any reduction . . . and we cannot believe that any benefit to employes, security holders or the general public will result."

Only good that Akron could see in the war was the possibility that it might put a stop to the bigger & bigger concessions that important buyers have been demanding--and getting--for the past few months. From now on, tiremen hoped, the list price would be the actual selling price, not a fond wish. In Chicago both Sears, Roebuck & Co. and Montgomery Ward & Co. promptly cut 5% under Firestone's new prices.

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