The Detroit times., 1910-07-29
SUPPRESSION OF
TRUTH TO BLAME
Finance" Ends-the Automobile Sit.
uation In Flint the Same a. in
kaAl Detroit.
from . stan Correspondent. }

(From . star corrsspondsnt.)
FLINT, Mich. July 2s.-I was sent
mere to establish the truth or to con-
tradict rumors on Griswold-st. a. to
the automobile situation In this city.
where the Buick car 10 made and
where the plant of the General Mo-
tors company IL located.
Flint, to my mind, has made great
mistake in the attitude that has been
taken In the matter of reports con-
corning the Buick plant. 1t was
hard matter to get the truth. Had |
boon compelled to leave without 1t
! would have done so In the belief
that there was foundation for what
We are hearing In Detroit. Having
succeeded, however, in getting the
truth, may state that there 10 moth
Ing In the situation here to cause
alarm. Where there 10 alarm, the
business men of Flint who have re-
fused to talk and the newspapers here
that have refused to print are more
to be held responsible than the real
facts.
Putting q veil over the true state
OF affairs has served. 1t would ap.
pear, only to arouse suspicious. ana
to cause anxiety where there should
be none.
found alarmists on Griswold-
st., as regarded the Detroit automo-
bile situation, which carefully In
vestigated and reported accurately,
and l hnd that conditions In Flint
have been greatly exaggerated by the
business gossips.
The situation here is exactly the
same as 1t proved to be In Detroit
after had talked with our leading
automobile makers.
There Is a general air OF conser-
vatism, plans for expansion have been
somewhat curtailed and the big
plants have laid of good part OF
their force to take inventory and
clean up the years business
As I have said, there Is no cause
for serious alarm, but 1t Is recognized
here, also, that the automobile trade
has passed through the boom stage
and is working toward a more solid
basis.
aFe-the- faetss-------
The Buick has laid of about 1000
men, some OF whom have been told
to return in September and others
have not been informed definitely as
to when their services will be requir-
ed again. According to a statement
made by w. c. Durant, the head OF
the General Motors company, the lay
on of men was taken merely as pre-
caution and not because the financial
condition of the corporation required
II. II has always been quiet to GER
tain extent in the automobile and car
rage industry In the month OF August
and this year the only difference ID
that the staff OF workmen Is much
larger and the. lay-off concerns q
much larger number of men.
For the present the General Mo-
tors has ceased its construction work
here and find evidence OF policy
OF economy In all departments. The
general officers, however, seem to
expect a substantial increase In bust
ness when the fall trade starts.
There has been a slump in orders
for cars. but this does not mean any
slump in buyers. This trouble is due,
Il IA said. to the action of the Kansas
banks, and they were followed by
banks in other states, in refusing to
continue their credit to automobile
salesmen. IL has been customary In
the past for agents to go to the
banks and obtain a sufficient sum OF
money to float large shipments OF
machines for immediate delivery
and I'm this wise the manufacturers
were transacting a cash business and
receiving an immense volume OF
money. With the action OF the banks
recently It is impossible for agents
who formerly ordered 10 and Is cars
TO take more than two or three and
consequently there has been falling
of In all quarters.
The demand of the people for
machines has not fallen of In any
way. but, rather, the entire business
II undergoing a process OF ADJUST
ment similar to that of the bicycle
business a few years ago.
The effect OF the present situation
I'm Flint does not seem specially
noticeable. It is true that there Ia
said to be q large falling OF in the
phenomenal rush Of trade Of the last
Ave years, but on the whole the gen.
eral impression seems to be that the
temporary quiet will be beneficial
al It will have the result OF getting
the BUSINESS Oh tu0 City AWAY
the boom tackles OF the last few
years and establish 1t on better and
firmer basis.
In spite Of the statements OF the
oficers find that 1t is generally be-
lieyed that there are a good many
cars unsold out OF this years produc-
tion. and the demand will have to
take these up before manufacturing
win resume on a large scale. With
the tendency of the western banks to
tighten up in loaning money on auto
mobile security, there have been q
vood many customers who ordered
Car but could not pay for them with
the result that they are on the deal
err hands.
am more convinced than ever
s,nce coming here, that the readjust-
ment in the automobile industry
seems TO have come. and from now
on IL win be conducted on the lines
of other manufacturing. The big
nrvt demand for oars has been flled
md the future expansion will come
from the normal growth OF the trade.
-- A.. -, rouao IN faar anv oorfouo