The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-07-25
Season Of 1910 Has Fallen Far Short
OF Expectations, Leaving Many Of
Late Corners in the Field in
Distress.
Bigger Concerns, Those of Detroit in
Particular, Will Not Suffer
The Real Situation.


There have been rumors OF a slack
ening up In the trade, rumors OF trou'
Die In various lines, but nothing den
mite that could be traced down.
In view OF this situation The Times
has undertaken to find out from the
% various interests concerned what they
thought OF the automobile outlook;
what the foundation for the gossip on
the street is and what was In store
for the industry In Detroit.
The result of these investigations
may be stated briefly. Detroit need
not fear a serious slump In business
on account OF conditions In the auto
mobile trade.
While there is an attitude of con-
servatism among the manufacturers,
and while concerns that are not ready
for a little harder selling conditions
are likely to suffer, big companies that
are the real factors In the automobile
prosperity OF Detroit will not be Sc
riously affected.
II Is beginning to be realized by the
manufacturers that the time Is not
far OF when the demand for automo-
biles will stop growing at the stupen-
dous rate OF the past few years and
conditions In the trade will come down
to a normal basis OF business. This
means beyond any question that the
weaker concerns will be eliminated
from the race for trade and either be
absorbed by the larger companies or
60 to the wall
II Is simply a question OF the sur
vival of fittest.
There are indications at present
that little lessening in the demand
will precipitate this long-expected
furry at once, but once 1t is over the
general conditions will be much i'm
proved and the trade will really be
healthier than 1t has ever been before.
Il IL a nopen secret now that the
trade for 1910 was not up to the ex-
pectatiQns OF the manufacturers.
The chief reason assigned Is the
bad weather OF the spring and early
summer. On account OF this smaller
demand, several companies curtailed
their output. Some of these find
themselves with a large number OF un-
!, sold cars on their hands or In the
hands of their agents. This ties up q
large amount of capital and has re-
suited in financial difficulties for the
companies involved.
In most OF the Detroit factories the
floors are swept clean, the output be-
ing all sold, but II Is said that other
towns where the automobile factories
are not on so firm a basis as they are
shere, will have trouble.
The Times gathered a great many
interesting opinions on the situation
In it's interviews with those most
prominent in the trade. In reply to
the suggestions that financial interests
were skeptical about the future OF the
automobile industry, one man pointed
/ to a big addition on which the work
men were pounding. Does that look
as II we thought there is anything
the matter with our business. IL We
could get some of these bankers who
say we are going to the bow-wows out
here and show them, what we are
doing, they would stop shaking their
heads as they do"
Another manufacturer said that
there was no more reason for looking
for trouble in the automobile trade
than in any other line. We are de-
pendent on the crops In the west just
as the railroads and every other bust
ness. II they fail We will not be able
To sell cars 10 the farmers, but our
agents In the west say that there Is
nothing to fear from the crop situa-
ton. II was suggested to the repre-
sentative of one of the largest manu-
facturers In town that the automo-
biles would be the first to feel the ef-
I<ects of any slackening In the business
OF the country. We thought that our
\ selves here In the panic or 1907, but
\ while there was considerable falling
of IL our truck and commercial or.
ders, there was no dropping on In our
orders for pleasure cars.
II Is the general expression that the
cream Is of the automobile trade. The
time has gone by when any factory
that can pay advertising bills can sell
\ its output whether it can build a car
that will run or not. The industry Is
getting into the hands OF the concerns
that have the proper sort of organiza-
ton and have the money behind them
TO stand an ordinary slump in trade.
The business Is getting standardized
and the public Is getting discriminat-
| ing about the kind Of cars 1t will buy.
The facilities for building good cars Is
coming closer to the demand for them.
ct cannot see any difficulties ahead
OF any OF the big companies In De-
troit." said one OF Detroit's big auto
makers, unless they are foolish
enough to overproduce. Our concern
lie not planning to build as many cars
for the coming season as we planned
three months ago. We figure that we
will make more money IL We sell all
we make than II we are left with a
few hundred on our hands at the end
OF our year. OF course our production
for next season will be ahead OF this
years output
From the Times Investigations 1t
would appear that the automobile
manufacturers are prepared to cope
with the inevitable reaction that
seems to be at hand in the automobile
trade
While the conditions In other cities
may not be so healthy, in Detroit there
| f. nothing to fear. While II Is gener-
ally known that the Buick plant at
| Flint and the Overland factory at To-
ledo have practically closed down.
nothing of that sort is TO be expected
| IN Detroit. Some OF the factories are
|iayfng or men, but Il is pointed out by
Mem that this Is the slack season in
/ The automobile trade. The Ford has
Produced its force by about 500. Sew
eral other concerns, however. are run
ming full blast, trying to catch up on
their orders. While most OF them re-
port that orders we're scarce during
Tie past month, there are already