Use in 
the tyre 
ndustry. 
more economical in price but also more suitable. In the United 
States it is largely used in combination with crude rubber in the 
manufacture of hose and packing, mats, footwear, heels and soles 
and hard rubber goods. The proportion tends to decrease in times 
of low prices for crude rubber, but its use is now firmly estab- 
lished. Both in scrap and reclaimed rubber a certain amount of 
international trade has grown up, particulars of which are given 
in Appendix II. 
23. As far as can be ascertained, it is only in the United States 
that reclaimed rubber has been used in the manufacture of tyres. 
Following the high prices in 1925, when crude rubber touched 
1s. 8d. a pound, the tyre manufacturers in the United States pro- 
duced in 1926, and again in the early part of 1927, large numbers 
of cheap, second grade outer covers containing a high proportion 
of reclaimed rubber. It is calculated that for every 100 pounds 
of crude rubber used in 1926 in tyre manufacture in the United 
States 20 pounds of reclaimed rubber were used. Experience soon 
showed that these cheap second grade tyres, which were sold as such, 
were unsatisfactory and the demand turned in favour of the high 
quality article. Although the use of reclaimed rubber in the 
manufacture of tyres in 1926 and 1927 temporarily reduced the 
lemand for crude rubber, it increased it during 1928 and 1929 
through the need for more early renewals. 
VIII. -MOTOR TYRE INDUSTRY. 
inter- 
national 
rompebi- 
sion. 
24. Competition in international trade in tyres is between seven 
large companies rather than between industries in different coun- 
tries. Ome of these is of British origin, Dunlop, one of French, 
Michelin, and five of United States, Goodyear, Firestone, Good- 
rich, the United States Rubber Company and Fisk. Two others 
of note are Pirelli of Italian origin and Englebert of Belgium. 
There are many smaller manufacturers, but they do not enter 
argely into international trade and the volume of their oversea 
rade does not materially affect the position. The seven big com- 
peting firms all work on the same principle of large scale produc- 
tion and the establishment of factories in countries overseas. The 
factories established overseas employ local labour and other ser- 
vices, but their activities and policy are, in the last resort, directed 
by the authorities controlling the home or foundation company. 
These decisions of policy may greatly affect the output and export 
returns of tyres of a particular manufacturing country from year 
fo year. 
25. Tt would clearly be misleading to ignore the effect of changes 
of policy on the part of these firms when analysing the statistics 
of export or import trade of different countries. These are not, 
however, the only considerations which must be borne in mind 
n an examination of the national statistics of the trade in tyres.