The Detroit times., 1910-02-05
DETROIT IS NOT A
.0NE-INDUSTRY CITY
Automobile Manufacturing Just One
Feature of Towns Splendid Com
mercial Development.

/ Is Detroit. by reason OF this develop
nent, in danger OF becoming a one-In-
! dustry town TO such an extent that a
] sudden reaction or slump in the auto
mobile trade would be serious blow
TO the community ut large?
In other words, is Detroit taking
/ her place as the undisputed automo-
lille 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 III
! tie while, established factories strain
| ing their capacities and building add
tons 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.
| 600. and Detroit capital contributing
largely to these enterprises. such queS-
lions are hardly TO be wondered at
|
! ers, The Times has endeavored to Sc
cure the opinions OF financial men
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 Il
means a oneindustry town, and Is In
10 danger of being so classed, they
say They point to the mammoth
stove factories, including the largest
I'm 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-
ceiyed 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
cut of its infancy" said Charles
Moore secretary and treasurer OF the
Security Trust Co. we see so many
machines here IN Detroit and in other
large cities that some Of us are in
clined TO think the country is pretty
we'll supplied, but there is still large
field that has hardly been touched,
and that is the rural field With i'm
proved roads the auto will In time, be
as popular in the country districts rs
It 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.
"As bearing on the effect a slump
i'm the automobile industry might have
on the financial interests, ii is signifi-
cant that, while the automobile com
panies arc large depositors they make
very few loans from banks. You viii
find very little automobile stock Put
up as collateral for loans.
There is an impression which has
become quite general that many peo-
Die are mortgaging 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 al automobile are
doing so by giving mp their large
houses and li;ng In apartments. Thus
thew are able to reduce their living eN-
penses very materially and take their
recreation i'm 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
FOL
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 inan-
cial men sound a 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 Of the
best informed men In Griswold-st. "A
tendency on the part OF some OF the
smaller companies that are coming in
TO 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 TO resume until they secure the
right TO use the Selden patents. Sew
eral unlicensed companies have been
started I'm Detroit and the promoters,
Fin some instances, have flippantly de-
clared that they feared no interference
from the Selden lessees; but they are
LAYING themselves open to litigation,
and the man who invests his money
in an unlicensed concern is taking
chance.
THE larger companies, Of course,
have nothing 10 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 manufac-
turer and, I'm consequence, the latter
is finding It more difficult every year
20 compete with the big corporations.
This is but natural The business has
grown to such proportions that It
must. OF necessity, be handled on a
large scale. which, OF course, requires
big capital