Los Angeles herald., 1910-01-04
COSTS OF AUTOS
ARE NOW ON A
BEDROCK BASIS
MANUFACTURER DISCUSSES
STATUS OF INDUSTRY
FURTHER REDUCTION WOULD
MEAN LESS RELIABLE MACHINE
Production and Demand Have Reached
the Stage Where Lesser Prices
Would Reduce Quality
of Materials
BY d. w. sEMPLE

has ever seen have experienced the
phenomenally rapid rise of the auto
mobile ndustry-perhaps L should say
"the American automobile industry
saws BENJAMIN Briscoe of the Max
we'll Briscoe company, for in CON
sideration of the countries to be reck-
oned as important factors in the IN
dustry as a whole this country holds
so great a lead that nothing short OK
an industrial revolution Is llhelS ~
impair it's standing.
The number of automobiles manu-
factured in this country each year Is
astonishingly great-not quite SO great
as it would appear from the advance
statements of some manufacturers, yet
great enough for those who are lntl-
mately acquainted with manutactur-
ing facilities and trade conditions 10
Justify serious contemplation OF the
nroblems with which the responsible
automobile manufacturers will be con-
fronted in the near future. AS II ls'
the very success of the automobile IN
dustry imposes upon its recognized
leaders a number of obligations as
regard of which is very likely to work
to the detriment of the delinquent
makers.
For one thing, the automobile has
completely upset the time-honored
economic precept that has done long
and faithful service for nearly every
STABLE namely, that an increasing de-
mand for a commodity must inevitably
result in a rise of price, because the
same commodity is wanted at the
same time by more than one buyer
Quite to the contrary, the increasing
demand has had the result of en-
abling a number of manufacturers to
buy raw material and to make and
market their finished product in such
huge quantities that it has been pos
sible to reduce the price to the buyer,
thus expanding the market manlfold.
In other words, while the price of the
individual automobile has become low
or. the value of the total product has
increased to an extent great enough
to make manufacture on a large scale
and sale at lower profits an attractive
business proposition.
AS a matter Of fact, the employment
of labor-saVing machinery and the
opportunity of manufacturing compo-
nent parts in immense numbers have
been the factors that have gone a long
way toward lowering the price of the
automobile, Notwithstanding there are
buyers galore and the quality of the
car is better than ever.
I do not wish to be understood as
saving that the automobile manufac-
turer is of a philanthropic turn of
mind-that is, any more so than other
folks, He, like other business men,
is in the industry for the profits that
are in it for him and his associates.
Now, when we look back upon the
last four years, which in reality mark
the growth of the automobile indus
try, we perceive that the pathway to
success is also strewn with the corpses
of a number of failures. For these
there must be good and valid reason
What is the reason?
The answer is that the automobile
problem will not and cannot be solved
by a great number of manufacturers
each of whom makes a limited number
of cars, but by a limited number OF
large establishments each of which
turns out number of automobiles suf-
ficiently great to place this new and
incomparab method of transportation
at the command even of the man of
small means at cost that is not likely
to stagger the average mans pocket
book. Only such a concentration of
manufacturing effort will be of lasting
benefit to the manufacturer, and, last
but not least, to the public, which fur
nishes the market and pays the final
bill.
pertinent analogy may be found in
the present state of the European auto
mobile industry. Although the manu-
facturers in France, Germany and Italy
have had a lead of several years over
those of America they have fallen to
a relatively unimportant position as
far as their output is concerned, simply
because they failed to realize that it
is a better plan to make ten thousand
cars and sell them at a moderate profit
than two thousand cars sold at high
price that is possible to only few
favored individuals.
On the other hand, the phenomenal
success of the American automobile
was assured with the advent of the
moderate priced car which took the
public by storm and did more than
anything else to popularize automobil-
ing in the United States. Of course
the large car of high power and I'M
usual speed also viii have its abiding
place. appealing as it does to a class
n of buyers who have the money to pay
for power and speed; but / am speak
ing of the bulk of the industry, which
certainly is represented by the medium
powered and moderate priced car.
Again, if we compare the growth OF
the business of the makers of the mod
crate priced cars to that of the makers
of higher priced ones it will be seer
that the policy of being satisfied with
a smaller margin of profit on each
car, but multiplying this margin many
thousand times, is very good business
I am not speaking now of the poor
man auLOIlOOIlC, AOl III t@iA NOiiN ASNioA
it is my opinion that with regard to
the representative makes the low water
mark of price has come well within
sight.
Today the American automobile, ever
that of smaller caliber, has the repu-
tation of being an exceedingly reliable
niece of mechanism. Automobile de-
signers have wisely provided factor
of safety sufficient for all reasonable
ayoerpencies To lower this factor ir
an attempt still further to cheaper the
automobile would be a disastrous un-
dertaking and should be discouraged
by all means.
Next to the production of a gooc
car. of all the movements inauguratec
through the direct or indirect agency
of the automobile, none deserves the
attention of the manufacturer so mucl
as the good roads movement. Without
good road to travel upon even the
best designed automobile will fall short
of fulfilling its requirements Though
If NAV be somewhat far fetched, il
really is true that the road is as neces-
sary for the vehible as the vehicle is
to the road.
In other words. the automobile can
not be considered apart from the sur
face on which it runs. TO be sure
automobile manufacturers are busy
people yet every step taken by them
In furthering the efforts toward the