New-York tribune., 1910-09-04
BdnEers Look Into Auto Trade
Report to United States Motor Company That
Industry Is in Healthy Condition,

For the purpose Of arriving ar the true
facts and obtaining exact Information rela-
tive TO the rumors which have been circu-
lated that automobiles were purchased by
the wholesale with money secured by mort
gaging homes, President Benjamin Briscoe
/ of the United States Motor Company wrote
I to twenty-fOur thousand bankers in the
United States and inclosed a blank form
asking them TO furnish him with the num-
| Der OF people in their vicinity who had
mortgased homes or who had borrowed
money 10 purchase automobiles.
President Briscoe also asked the bankers
to supply him. to the best Of their knowl-
edge with the percentage of motor cars
used for business or useful purposes, and
whether or not, in their opinion, the sale Of
/ automobiles would increase in their re-
spective territory.
/ Replies have been received TO date from
1880 bankers, who state that there are
19S. .216 automobiles in their cities and towns.
! OF this number only 1854 have been pur-
! chased by the placing of mortgages, and
/ only las have borrowed money without
mortgage to purchase automobiles.
In the opinion Of 1929 bankers, the sales of
! automobiles will increase during 1911 over
/ those OF 1910 while 1.601 say the sales will
not increase The latter, however. are
/ bankers in small towns and remote sec
! tions Of the country, where the increase in
population is small.
/ President Briscoe is Of the opinion that
with less than ! per cent of automobiles
/ bought on mortgages and less than per
cent purchased with borrowed money. re-
! cent disquieting assertions are proved to
/ be without foundation. He says that, as 8
matter of fact. figures show the automo-
/ bile business to be built upon as sound 4
| foundation as that of any other industry.
These letters reveal the exact conditions
: in ali sections of the country. and a large
percentage of them speak in glowing terms
of the various business purposes to which
the automobile is applied.
It is surprising that so many so-called
pleasure cars are used by physicians, con
tractors. real estate dealers farmers, bank
ers and other business men Reports show
that hundreds of bankers own cars and do
not hesitate to say that they consider them
helpful not only in ways of recreation but
! in business.
/ Many of the letters deal with the use
/ fulness of the automobile for farmers.
The automobile has brought the farming
4
farm boys contented with farm life It IS
keeping many of the farmers sons on the
farm The farmer can go to town with
load in short time and get back and do
q days work. In the evening the car is in
use for taking the family to lectures,
concerts and the theatre. II IS the belief
t of many of the bankers in the rural sec
| tons that the automobile makes agrlcuit-
ural life much more attractive than ever
before
We have no sympathy with talk that
has been given out in New York circles
as TO the extravaganza of a large proper
ton of automobile purchasers-as to their
duty 10 save their money, or. at any rate,
avoid the purchase of machines says
the president of one OF the biggest bank
ing houses in Chicago We believe If the
same number Of city and country folk had
actually mortgaged their properties as IS
alleged and with the proceeds had bought
securities which Wall Street has, no sus-
picion of complaint would have been heard.
1T is however, not a. all question Of
whether an investor buys an automobile
or not. but simply a question of what be-
comes of the money after that. viz,
whether II is put into enlarging an auto
mobile plant or whether it is distributed
10 the stockholders. and by them invested
in securities
From Canton. Ill, comes the statement
from an official of one of the largest
banks. who says: 7 have studied the
matter over rather carefully and have
concluded that the motor car is a coming
necessity, rather than luxury. l realize
the preiudices that exist against the pur-
chase and use of them in general, and feel
that it is only natural among some Of the
h.alf
that they will be compelled TO get over
that feeling as the motor car will within
4 few years entirely displace the horse
drawn vehicle for road travel"
We have never vet known Of resident
of Hood River or Hood River Valley
placing a mortgage upon his home to buy
an automobile, although there are many
! who have mortgages upon their homes
that do not own automobiles" is the state
ment from the president of a bank in Ore
| gon
| From the thrifty state of Iowa the fol-
| lowing is received from the cashier of
! large bank: We think that the machines
owned here are used 80 per cent OF the
time for business. As d matter of fact, it
has been the means of bringing the coun-
| try into very close touch with the town.
and our farmers are now buying machines
ers who come personally to the writer and
ask If ne thinks they would be capable
of running a car he thinks that the year
1911 will double the sales of 1910. AS far
as Iowa is concerned the farmers are just
waking up to the possibilities of the auto
mobile and If you have ever had any ex-
perience with this class of trade You will
note that when one farmer in neigh
borhood gets a thing il is only a matter
OF d short time before the whole bunch
have IT"
A predominating feature OF the corre-
spondence reveals the frankness and thor
oughness with which the bankers made the
investigation Many Of them personally
talked with automobile dealers and garage
men, present and prospective owners of
automobiles and the compilation shows
vividly that these hard headed business
men believe the automobile industry is
practically in its infancy. and that the
public is only awakening TO the great possi-
bilities OF the motor car
The investigation instigated by President
Briscoa OF the United States Motor Com
pany Is the only thorough investigation ever