The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-02-04
DETROIT IS NOT A
INDUSTRY CITY
Automobile Manufacturing Just One
Feature of Towns Splendid Com
mercial Development.

Llent, In Danger or becoming one-ln-
dustry town to such an extent that n
sudden reaction or slump In the auto
mobile trade would be a serious blow
TO the community at large?
In other words, is Detroit taking
her place as the undisputed automo-
bile center OF the world and extending
her area on all sides TO meet changed
conditions and demands of an ever in
creasing population, only TO expert
ence a serious setback later on?
These are questions that have been
much in the public mind OF late; nat
ural ones, too, under the circum'
stances.
With new auto concerns making
their appearance in the field every lit
tie while, established factories strain
ing their capacities and building add
lions to keep up with their orders,
and plans being prepared for several
mammoth new plants, one OF which is
to represent an investment of $500
coo, and Detroit capital contributing
largely to these enterprises, such Ques-
lions are hardly to be wondered at.
For the enlightenment OF its read
ers, The Times has endeavored to Sc
|
and others interested in these matters
and those best informed are unanimous
in the opinion that there is no occa-
sion for alarm. For Detroit is by nc
means a one-industry town, and is In
10 danger of being so classed. they
say. They point 10 the mammoth
stove factories, including the largest
in the world, the great rolling mills,
the pharmaceutical plants, the extern
sive car works and dozens Of other
large industries established long be-
fore the automobile was even con-
ceived as evidences OF Detroit's indus
trial stability, and all doubts are dis
PEELED.
But why talk of slump when the
automobile industry Is only fairly
started?" they ask.
THE automobile business is hardly
out of its infancy" said Charles
Moore, secretary and treasurer of the
Security Trust Co. I'VE see SO many
machines here in Detroit and in other
large cities that some OF us are IN
clined to think the country is pratty
we'll supplied, but there Is still larBN
field that has hardly been touched,
and that is the rural field. WIN m
proved roads the auto will, in time, De
as popular in the country districts as
il is in the cities, and the agitation in
favor OF better roads is accomplishing
great results. There is a movement
on foot now for improving the roads
between Detroit and Port Huron,
through Mt. Clemens, which will mean
big increase In automobile traffic out
that way.
LAS bearing on the effect a slump
in the automobile industry might have
on the financial interests, 1t is signlfi-
cant that, while the automobile COM
panies are large depositors they make
very few loans from banks. You VIII
find very little automobile stock put
Iup as collateral for loans.
There is an impression which has
become quite general that many peo-
Die are mortgaglng their homes to buy
automobiles. | have looked into this
matter and find that such instances
are rare | have learned that many
persons who could not otherwise af-
ford to maintain an automobile are
doing so by giving up their large
houses and liYing In apartments. Thus
they are able TO reduce their living ex-
penses very materially ande take their
recreation in an automobile, all on
the income that was formerly required
to keep up a home
One fact that stands out prominent
" In connection with the automobile
industry is that great changes In the
method OF manufacture have taken
place within recent years. The day
Is past, say the men In Griswold-st.,
when a man can start out with only
sufficient capital to purchase material
for one or two experimental cars and
expect to compete successfully with
corporations that have millions at
their command
And right in this connection flnan'
cial men sound note of warning to
the small investor.
THE man of small means who Is
thinking of investing his savings in
automobile stocks should act with
great caution" said a prominent bank
official, who Is regarded as one or the
best informed men In Griswold-st. "A
tendency on the part of some OF the
smaller companies that are coming In
10 the field to disregard the Selden
patents. which are basic, and which
have been upheld by the courts Is
likely to cause trouble for them later
ON when the lessees discover that their
patents are being infringed upon. Some
outside companies. | understand, al
ready have been warned TO stop manu-
featuring as soon as their 1910 output
Is completed and will not be permit
ted 10 resume until they secure the
right to use the Selden patents. Sew
eral unlicensed companies have been
started in Detroit and the promoters,
I'm some instances. have fiippantly de-
clared that they feared no interference
from the Selden lessees; but they are
LAYING themselves Omen TO litigation
and the man who invests his money
I'm an unlicensed concern Is taking a
chance.
"The larger companies, OF course
have nothing to fear from this source
They have millions behind them and
can we'll afford to pay the royalties
demanded. Moreover. with the equip
ment they have at their command
they can manufacture cars more eco
nomIcally than the small manutac
turer and, In consequence, the latter
lis finding II more difilcult every year
10 compete with the big corporations
This IS but natural The business has
: grown to such proportions that II
must. OF necessity, be handled on a
T. a