Los Angeles herald., 1910-09-11
AUTO INDUSTRY
ON FIRM BASIS
Weathered Panic of 1907, Then
Helped to Restore Coun-
try TO Prosperity
CARS HELP THE BUSINESSMAN
Motor Wagons Increase Radius
of Owners Business and
Save His Time
CARS HELP THE BUSINESSMAN

Certain railroad, scholastic and fin
ancial gentlemen have seen fit to crit
icise the motor car, the motor car in
dustry and the purchase or use of mo-
tor cars. In view of the publicity
given to such criticisms 1t will be
matter of general interest to know
some facts about the motor car and
the motor car industry which have not
been generally appreciated.
The motor car industry is the only
business in the country which did not
suffer materially as result of the
panic of 1907. This could not have been
the case had this industry not been
based upon an absolutly sound econom-
ic demand. Experience has shown that
all new lines of industry that are not
based upon a sound economic demand
are shut UP or put out of business
when panics oVertake them. As re-
suit OF the great activity in motor car
production there was not only an ap-
parent but an actual recovery from
the panic of 1907 earlier than might or
dinarily have been expected. Persons
who have given serious thought to the
matter will be readily convinced that II
it had not been for the motor car In
dustry the general business of the
country today, compared to the panic
of 1907, would be in about the same
condition as the general business of the
country in 1896, as compared with the
panic of 1893. Directly after the panic
of 1907 began many persons prophe-
sled that poverty would be rampant
and that the country would see prev
alence of bread lines and free soup
houses before we would have a restora-
tion of prosperity. We all know that,
in the main, these prophecies have
failed to materialize. The cause of fail
ure of the prognosticators to guess cor
1ectly can be very largely traced to
the motor car industry.
KILLING THE GOOSE
In view of the manifest benefits the
motor car industry has been to this
country during the recent years of
depression, it seems incOmprehensibIe
that certain gentlemen, otherwise in
telligent, should be so short-sighted
as to attempt to kill the goose that
laid the golden egg" Close analysis
of the situation fails to reveal any
more sensible reason for criticism of
the motor car industry than just plain
pique upon the part of persons VINO
prophesied general poverty, bread
lines and free soup houses as result
of the late panic.
In this connection it is argued That
many people cannot afford to own
motor cars. The answer to this argu-
ment is that the ownership of a mo-
tor car so increases the radius of the
owners activity, and has such a pro-
nounced influence on his efficiency and
health, that he is able to earn an in
come that will enable him to support
a motor car. OF course, there are eX-
ceptions to prove this rule, just as
there are exceptions in all other lines.
1t can be admitted, without prejudice
to the industry, that some persons
may have purchased motor cars at
cost and of a type not adapted to their
requirements. This does not prove
that this class of persons cannot af-
ford to own motor cars. Like other
useful articles, the motor car will al
ways be made in grades and types
adapted to the pocketbOoks of the re-
spective users. 1t must not be as
sumed that just because it is a motor
car that it is an unnecessary expense
or extravaganza.
DOES MORE BUSINESS
The use of the motor car does not
distract it's owners attention from
enables him to do more business with
less effort, in the same hours, by
shortening the time of his errands and
business calls. AT the same time it
affords opportunity for healthful
recreation for himself and family and
saves many expenses which were
common before its use began.
In the face of this, can any sane
person longer have any doubt as to the
economic somdness of the motor We
hicle industry? The fact that some
motor car manufacturers may fail,
owing to lack of good business man