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Increased Tyre Charges Probable
Page 67
Page 68
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THE makers of the large pneumatic tyres emplayed on coaches and buses are seriously perturbed at the existing situation of a decreased charge per vehicle-mile, combined with steadily increasing production costs, due to the rise in price of rubber and cotton. It is, consequently, considered that it is impossible to delay any longer raising the charge per vehicle-mile by an amount which should ensure a reasonable return.
The haulage side of the industry was recently faced by an increase of 15 per cent. on the cost per tyre, which followed a rise of 10 per cent. last year, and thus, hitherto, the passenger side of the industry has been in a relatively fortunate position. Whilst we are strongly opposed to any exploiting of the road-transport industry, we cannot help but consider that the tyre maker ยง can prove a considerable measure of justification for their proposed action, which, in any case, would not be carried out without a warning of at least three months.
A survey, of the position shows that, .whilst in 1932, when rubber cost 3d. per lb. and cotton 6.7d. per lb., the tyre charge per vehicle-mile was .3d.,.in 1934 the charge was .25d., representing a decrease of 161 per cent., whereas the price of rubber had risen to 5.65d. per lb., and that of cotton to 7.21d. For the first part of this year the 'charge per vehicle-mile for tyres has been still lower, but there has been no tendency for a corresponding diminution in raw-Material prices.