Omaha daily bee., 1909-02-21

merctal employees and Tor the operation OF
their plants and purchase Of material, ag-
gregating $40. 1880 The aggregate value
Of automobiles and chassis produced by
these self same factories was about slo.S2O.-
600. 1t will thus be seen that taking the
motor car builder. small and large. through
out one country where accurate figures
are obtainable. the net results showed a
loss of about $1,000 in the value of auto
mobiles and chassis produced in 1906. And
still those initiated in the vicissitudes of
manufacture sometimes say too much Is
charged for automobiles.
Germany's Contribution.
The aforementioned figures respecting
the cost and value Of product in Germany
entailed in that year. 1906. an investment OF
capital amounting to $40. 5O,oO0. If the ag-
gregate of money invested in these enter
prises, large and small. all told. in abe
United States could be ascertained, and the
money actually spent could be determined.
there Is no question but that, from the ma
ture Of things in this country, it must be
evident to all that the total aggregate ex-
penditures or cost of production would be
far greater In excess of the value of
products sold than is the case in Germany,
as indicated for the year 1906. 1t is true
that in the United States the novel form of
O-ORC oNAOA VI NAG NbAAN oSa RAtAA|<A $500
ers who have associated themselves as the
A. L. A.. NJ. has done invaluable work in
an economic sense and prevented much of
the waste of energy and money which in
variably has attended the building Of a
new industry.
But the country at large and the public
IN the United States are the gamers by
what the work of the motor car builder
means to It and TO them indirectly.
Consider alone that an automobile racing
event of 1908 carried to Savannah over
$25O.0o from visitors who otherwise would
never have seen that place. while s750eoO
Is figured as the sum circulated incident to
the running of the race.
When we consider that 1850 cars were
In use in the United States at the begin
ming of 1908, many operating for hire, the
greater number in private use the year
round, and a large percentage making at
least one actual tour Of ten or more days,
we find that the aggregate money dis
bursed for gasoline or lubricating oil. sup
plies for lighting. extra tires. parts for re-
pairs and requirements. and the disburse-
mentst to hotels. etc. ranged In the neigh
borhood OF 80. COO.OOo
Wages Run Into Millions.
While the direct producers of automobiles
! are paying from 100000 to 100000 in
wages to mechanics and other factory
hands. the parties they purchase material
from. allied shops making component parts,
In the aggregate disburse tens Of millions
or dollars. In addition TO which the use of
all sorts OF sundrfes and accessories
neams OF miIlinns disbursed to the
wage-earned. The makers of raw
materiaI-steel and other metals.
lumber, leather, rubber and a
multitude OF other items-ship supplies 10
the various automobile factories. aggregs.-
ing slOO.OOe.Ooo and over. The agents ana
dealers pay wages to workmen and salaried
employees. and rental OF garages and
salesrcoms. added disbursements running
into sums OF eight figures.
The dealer pays the manufacturer a
deposit in advance OF delivery OF the cars.
in order that he may be assured OF deliver
les of a definite number on which to base
his investment in selling organization. The
payments of the purchasers Of cars to the
thousands OF agents throughout the country
is the item IN the automobile business
aggregating what is usually referred to
as the motor car product OF the country.
However. each purchaser OF a car. in
addition. buys a considerable aggregate
value of sundries and equipment. which
still further adds to the aggregate turnover
Of business.
Each year a considerable percentage of
motor cars In use change hands. and we
Lhus have a secondhand business RESPONSE
Die for a circulation Of no mean figure.
The states OF the country in many cases
have collected in a year over 100000 and
in some cases $4,000 or $4,000 in revenues,
aggregating a circulation well above the
100000 mark in license fees.
Almost Half = Billion
A compilation considering most Of the
principal items. however. shows that the
circulation OF money involved In the autS-
mobile business and the disbursements
incident TO activities and new develop
menfs resulting from operation Of motor
cars without consideration of the In
humeFabIs detailed expenditures. has
run well In excess Of Sfs7.Q0.-
90 in a year. These are the
great results benefiting the general indus
trial world. and the basis OF II all Is the
persistent progressive work of the pioneers
mostly all Included in ranks OF the Asso-
citation OF Licensed Automobile Manufac-
turers, when a product of automobiles and
chassis leave the doors Of the
manufacturer for which he receives not In
excess OF sss.OO.OOo.
II the truth could be ascertained. il would
show that the sss.Ooo.eoo had not paid inter
est on the money invested. but that only
a few manufacturer OF long experiences
have been able 20 realize a net profit on
their business.
The other three hundred and seventy
odd million turnover or circulation incl
dent to the work OF the motor manufac-
turer has kept the wheels OF progress
turnins-Herman F. cunt1. n. E. in Auto
mobile Topics.