Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-05-29
UNFOLDS A NONDROUS TALE
Transition of a Popular Toy Into a
Mighty Industry.
GROWTH OF THE AUTO BUSINESS
Vast Capital Engaged in the Max
ing ana observation-disclosures
and suppIy--This Years
Output.

The Technical World for June speaks of
the automobile as the $1,000 100000 toy 1t
Is the most popular toy OF the age. IL the
automobile maker during 1910 is able to
meet the demand the output will reach
total of SLIGO 900. And this wifi be sold
for cash In contradistinction OF usual
methods, while the automobile maker has
pursued the typical American policy in
placing his product upon the market, that
is, through agents. he has not financed his
distributing agencies, but, instead, the dis
tributing agencies have financed him. In
deed, not only is this true with reference to
financing, but in many instances the dis
tributing agencies have paid a considerable
bonus to the manufacturer, with ready
money In exchange when the cars were de-
livered. 1t is a wondrous tale, this story
of the automobile. The eagerness of the
middle class and the upper class in America
20 possess this new plaything gave the
manufacturers the chance to dictate terms.
The Technical World says:
Back Of this quick-sweeping. nationwide
hysterta OF demand there is, OF course, a
reason. Aside from the undeniable appeal
that the self-propelled vehicle. per Sc,
makes to the popular mind, We are con-
fronted with the appeal OF social prestige
which its ownership from the beginning
implied. For a number OF years our com
Portable CLASSES have been deluged with a
magazine fiction that scanned to be the
establishing Of q widespread conviction OF
the intimate relation Of the spark plug and
carbureter to the lives Of our social pat
tsrnS-tho idle rich. Our most fetching
romances have made excellent free prop.
aganda for the automobile - the heros
rad hxrt ha
smNll OF gasoline.
Capital Employed.
Conservative estimates place the present
capitalization OF companies turning out
merely the finished product at $l75,0oo,OoO
while the Motor Age. a trade journal, says
that the Motor Accessory Manufacturers
association now has a membership of ~
concerns tand there are perhaps as many
not members), representing an aggregate
valuation Of 1907, 10000 In particularly
healthy condition. 1t is therefore certain
that the entire automobile industry is to-
gay capitalized at more than $500, 600 900
three times the capitalization OF the farm
implement industry, as shown by the cen
sus OF 1906, OF over four times the capital
|. Nation OF all the carriage plants and car
.riage rapair shops In the country for the
same year. In the report OF the board o.
comerce OF Detroit Il Is shown that on,
company starting in 1901 with 5000 900 capita
last year increased It's capital to $40, 900 900
while another with sl.5O0,oOO capital sold fo
N.50o.0oo. while still another with S227 90
paid-up capital sold for four times tina
amount. Recently the General Motor
company increased its capital stock from
81, 10000 to s6o,O0o.00o. with which IL pur
chased dozen large plants In MICHIGAN
\ changed the center OF It's activities to De
tepit. and began erecting buildings 20 cos
rHqROoO. covering ground area OF fort,
aae lbpwhile II may be alleged that Their
- much water N the stock OF automO