Omaha daily bee., 1910-09-04
MOTOR CAR IN ECONOMICS
Answer to Charge that Autps Increase
Hard Times.
H. o. SMITH SAYS THEY HELP
President of Premier Company I'm Es.
say Refutes Theories of Bankers
Money IL Buried In Autos
Time Saving an Asset.

wrath ana deny the aHeBatlun OF some
bankers that the motor car has something
TO do with the increased cost OF living.
One Of the best essays in answer is that
from the pen OF Harold o. Smith, presi-
dent Of the Premier company, and one of
the most widely known men in the auto
mobile industry.
Mr.. Smith says:
1.-THE high cost OF living, or, as some one
has more properly termed IT, the cost Of
high living, might in a measure be ac-
counted for and the causes attributed to
the motor car, judging by the impressive
array OF figures as to money invested in
them and the number OF cars used, were
these figures a correct presentation Of the
facts The actual circumstances are In
teresting and no doubt the public is look
ing for a proper statement of them. 1t
should be realized that It is difficult to
correctly distinguish between necessities
and economies and Injuries and extrava-
gences.
What IL Luxuryf
"The telephone today is seldom classed as
an extravaganza and rarely as luxury;
on the contrary it is an economy and a
necessity under modern conditions. The
railway train and the electric car have
diSO DttOih0 utCtSSlltb anu dIb iON AONOb-
nized as economies II time is indeed a
consideration. The argument that these
modern means of transportation encourage
more travel and the expenditure of a
greater amount Of money in travelling is
refuted by the fact that In effect they re-
duce distance and save time, making pos
sible undertakings otherwise impractic-
able.
"a recent article from the Technical
World estimates the cost OF operating
motor cars including that of mileage,
covering the cars now in service, and,
while conservative these estimates reckon
the entire cost as a luxury representing an
outlay for pleasure and an expense only,
which is obviously unfair without taking
into account the facts. The true situation
was presented by acting Mayor MCGOWAN
| of New York recently in a statement that
| the use Of the motor car had increased the
| capacity OF city streets six-fold over that
of horse-drawn vehicles, which can be
further reckoned as a saving OF five-sixths
OF the time, an equivalent of reducing the
distance to one-sxth What does the saw
| ing Of such time, or the reduction of dis
| lance. as 1t might be considered, mean to
| the public and to those whose capacity is
| limited by the time available? Would not
travel by motor car be economy even with
the mileage cost as great as by other
means, Notwithstanding the fact that the
ease in travelling and the saving of time
might induce an increase in travel?
Big Economic Value.
| Accurate comparisons with statistics
representing other expenses in modern life,
a realization OF the enormous amount OF
money which is distributed through the
channels of the motor car industry, and a
proper consideration of the vast economic
advantages of the automobile should GER
tainly be sufficient to convince the logical
mind of the value of the whole industry and
it's effect and to depreciate the attacks
which have been made upon It in a very
peculiar manner. There has been a strong
inclination to blame the automobile for
things that are going wrong and by plac-
ling the effect before the cause to go far
astray in the diagnosis of the national all
ment, II it be such.
ut cannot be disputed that the motor
car has greatly increased property values,
making accessible remote localities, bring
ing the city to the farm and the farmer tc
the markets. 1t encourages more time be-
ing spent in pure air by those confined tc
office under the great pressure of modern
business, and Is OF far greater benefit to
the owner and his family than would be
1 the annual interest on the same amount at
II 3 or per cent. It would be quite as rea-
sonable and practical to consider abandon
ing the electric car TO return to the horse
car. or giving up the steam railroad car to
return to the prairie schooner, as to aban-
don the motor car.
THE spirit OF the age is to keep abreast
with the march Of progress and it would be
difficult to conceive of even a banker re-
fusing to make loan on a responsible
business merely on the ground that some
portion of this money might be exchanged
for an article which has astonished the
world on account of the practical way in
which it has effected a market saving OF
time. being the equivalent OF reducing dis
lance.
Mortgage Cases Few.
1T is perfectly true, perhaps. that mer
have been known TO mortgage their homes
or to borrow on life insurance policies tc
buy machines, and as an indication Of reck.
less extravaganza and shiftless foolishness
such a performance is to be deprecated
but there is no logic in blaming the auto.
mobile maker. or denouncing his business
as the cause OF silly act
LAS a matter of fact there is less Of thii
going on than some critics would have tn,
public believe, A farm located an hou
from the market reckoned on the basis o.
horse travel can be bought one thlrt
nearer in effect by the saving in a prac
teal way of two-thirds of the time neces
sary to travel the distance, and why SHOULD
/ the privilege be refused, or the farmer
censured for employing a modern agen
Y of economy any more than for the use o
the modern self-blnder in the harvesting o
his grain. To go further, the farmer is no
criticised If he places a mortgage on hi
farm in order TO purchase advanced equip
ment to carry on his work.
But the danger Of people venturing int
unwise obligations is largely eliminated b!
the fact that cars are sold for cash rattle
than on payments. which means that tn
l purchaser must have a sufficient bank &C
count, or equivalent assets for settlement
and the temptation to heavily discount tn
future, as might be the case with car
sold on the installment plan. is entlrel
eliminated. "s1IAH
b TrifIe Compared TO Liquors.
Statistics show that there is little caus
for charging the cost Of high living 10 tn
motor car, and the most convincing proc
can be cited in a comparison OF the $3.50
600, 900, representing total list price of tn
7 l75,OOO motor cars sold in the last twelv
u months and the impressive and enormou