The Washington herald., 1908-06-07
CONDITIONS GOOD IN ITALY
Present Status of Automobile Indus
try Considered Satisfactory.
Speculation Eliminated and PrOduc-
ton Reduced TO n Basis of Fair
Profit and Growing Demand.

The United States consular agent at
Turin. Italy. takes a hopeful view Of in
dustrial conditions there. writing as fol-
lows. with special reference 10 the nro-
duction and sale Of automobiles:
Tie industrial conditions in Northern
Italy are good. Last year was the best
year in the present decade. and the first
quarter OF the present is as good as the
average showing for the year succeeding.
This latter statement is based on the
quarterly balance sheets required OF all
firms or the last day Of March. Ny at
tention was called 20 the foregoing by
DIT. Pireh OF Pirelli & Co. Milan. which
| firm is working $500 men. Their outputs
are confined 70 electric submarine cables.
land cables. and much OF the rubber
equipment utilized In automobile con
struction.
The aforementioned branch OF the bust
ness has brought this firm in close touch
with the automobile industry In Italy.
and has placed the representatives, OF the
firm in an excellent position TO sum up
the present situation. II is Dr. PirelIrs
opinion that the automobile business in
Italy VIII be in better condition by reason
OF the recent depression than otherwise.
1t has stopped speculation and insured
the business being carried along on a
sound basis.
l find the view generally entertained
among well-informed business men here
that the depression I'm the automobile
business Is the natural result OF the ire
mendous speculation which was INDUCED
In. Now that the wealthy classes have
been affected by the general shrinkaze
abroad OF securities, II is recognized that
automobiles are luxury. At first buyers
Of automobile stock could only see enor-
nous dividends. but no account was taken
OF the cost OF advertising. the cost of
races, and other expedients resorted 10 TO
push sales. all OF which expenses in
creased enormously as new firms came
into the market.
At least ffty-two Italian automobile
manufacturing firms were organized dur
ing the past two years, and OF this num-
Der about twenty-eight were established
In Turin. The small firms have now been
crowded back, and IN many cases the
small shops will take up new lines OF in
dustry. This they viii be enabled 10 do
by reason OF the excellent equipment
they possess. Large firms like Isotta-
Franschini and Fabbrica-I talIana-Auto-
mobil-Torino Will continue TO hold the
field. These firms are at present working
at rate equal 10 about 20 per cent and
50 per cent, respectively. of the rate de-
manded by last years orders. and though
the business is relatively quiet at their
shops. these larger firms are managing 70
hold their organizations together. and
will be in position to take advantage OF
better times.
Among machinery experts the opinion
prevails here that the work on Italian
automobiles generally is unexcelled In
Europe. My own observations incline
me 70 accept this view, for nowhere have
l seen more attention paid 10 detail than
is bestowed by Italian automobile con
Germs. and my attention has been called
70 one prominent firm undergoing great
expense in order TO secure superior re-
suits.
The works OF Pirelli & Co. are indica-
tive Of what the Milan district possesses
in a way of industrial establishments.
This firm lays submarine cable in all
parts Of the world. II possesses its own
cable-laying vessels, and undertakes not
only TO lay submarine cables, but TO
maintain but not operate them. This
firm provided some Of the electric cable
utilized in connection with one OF the
Niagara Falls power plants.