Omaha daily bee., 1909-02-21
EXTENT OF AUTO INDUSTRY
Some Figures on the Magnitude Of
the Motor Business.
GREAT GROWTH IN FEW YEARS
Expert Complies Showing that Foots
Up Almost Half a Billion Dol
lars Yearly for the
Tramc.

Interesting figures have appeared from
time to time showing the large aggregate
value OF automobiles sold in the United
stetes. When It Is said that s122.Oo0.O0
worth Of cars have been sold in 1868. none
realize that this is but a part Of the cir
culation Of money which that volume Of
new automobile product means.
The automobile industry is based on the
cars made by the factories, but the hun
dreds millions worth of product means
vastly more to the country than that.
For such an aggregate Yalue of cars
sold 1t means, first. a thousand shops in
allied work produce parts doing an indie
pendent business. of course contingent
upon the vehicle producer. running into
the millions; the railroads do an enormous
freight business to distribute the product;
agents and branch houses throughout the
country are paying rentals aggregating
millions OF dollars. preparing for the mar
keting and distribution OF the product; and
the makers OF sundries and accessories in
several thousand shops are preparing to
srfIly the varied and fsstidsous wants OF
the purchaser and user of cars. On the
other hand. when the new product Is sold
II adds many tens Of thousands in the ag-
greeAte. already totsling 14S.0o automobiles
in use In the United States at the begin
ring OF 1905. To operate these cars re-
auires fuel and lubricant asgregating mil
lions of dollars in the year; requirements
and repairs incident to the use of any ma
Cutlery again, and millions of dollars put
into circulation; the states and munioipaii-
ties are paid license fees for the use of the
highways, which now total figures little
dreamed Of a few years ago: the housing
of machines in garages or private stables
ir wolves q ground rental and building
m~aiktehAnSe. tine Importance or which q.
only too wen appreciated by the real es-
tate dealer; the insurance against fire.
collision or the mulcting in damages has
brought into being separate departments
OF the large insurance companies; the rae
ing fever the advertising and general pub
iIcity Incident to. a new industry again
car only be measured by millions of dol
lars put into circulation; the tourist who
can now spend two or three weeks away
from the beaten path OF travel in the ag-
grtgate csrcuiates millions OF the coin OF
the realm.
BENEFITS TO the Country.
Then what has the automobile manufac-
turer done for the country?
5 When the circulation of money or shift
ing OF credits or turnover OF business de-
pendent upon his work is added TO the
circulation OF money due TO the use OF
his product. Aggregates several times the
actual payments TO the manufacturer for
automobiles. IL il not fair that the mapu-
facturer. the foundation OF this now tre-
mendous and growing economic factor Of
the country. should receive every possible
encouragement? nt.r9 ri
when the maker Of AUTOMOBILES risks his
ton by the public, when new money is
advance to make and market the asgre-
gate product OF siO0.Oo0,OOo. on which fate
can only determine whether there shall
be profit OF loss, in order that the coun-
try at large may profit by the circulation
OF nearly t5O0.oo.OOo. then Is not the auto
mobile manufacturer a factor worthy OF
the most generous support and protection
that can be afforded by the American
, congresse
IN the states we hear from time to time
OF the workings OF the successful manu-
facturers: the others are rapidly forgot
ten by the public. When new money is
introduced into a new manufacturing en-
terprise. It goes far and wide to try TO es-
tabiish a reputation-but when no money
Is left to advertise. nothing more Is heard
OF the -derelict and the losses that have
been sustained. From 1901 to 1907 about $40
concerns were announced as being in or
starting the manufacture OF automobiles
OF these about iss have gone out OF exist
~ence-thelr losses cannot be estimated. No
state or government department has access.
no does 10 presume to record such vagaries
OF an industry. The great initial risk and
the excessive aggregate losses as COM
pared with agsregate profits are forgotten.
Gowth IN Factories.
At the close OF thai same period. 1901 10
1907. there were about $50 concerns still
existing. but over thirty had not been in
existence. attempting the manufacture OF
motor cars. for twelve months. and many
have since retired. involuntary as a rule.
but OF that number less than seventy-fiye
were real producers At the beginning OF
iS9 We have an aggregate OF probably
eighty auuomObile makers who are the
real producers OF the country while over
800 are aspiring 20 manufacture and In
maey cases attempting to copy the 'producf
developed BY the pioneer concerns at the
cost OF millions of dollars.
Whether the motor car Manufactured
whD risks a large investment to add TO
his quota TO move abe wheels OF progress.
does In the aggregate make a profit or
not. can best be told by considering the
authentic statistics Of the country where
accurate reports OF Industrial works are
compiled by the .soyerumeRt In this eOn-
sidsraton we have before us most startling
figures complied m Germany. n --latest
sv2flable data Il for the complete year OF
Isa Thea the operations OF all the motor
car producers. not including the allied
trades. meant a spending in wages 10
uofkmsh. salaries 10 technical ana com