The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-07-28
SUPPRESSION OF
TRUTH TO BLAME
Finance Finds the Automobile Sit:
uation in Flint the Same as in
Detroit.
(From . stan correspondent.)

trauict rumOrB on GrlsWOld-Bt. as u
the automobile situation in this city
where the Buick car Is 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 beer
taken In the matter of reports con
corning the Buick plant. 1t was q
hard matter to get the truth. Had
been compelled to leave without II
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 Is moth
ing in the situation here TO cause
alarm. Where there is 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 a veil over the true state
OF affairs has served, IL would ap-
pear, only to arouse suspicious, and
to cause anxiety where there should
be none.
| found alarmists on Griswold-
ST.. as regarded the Detroit automo-
bile situation, which | carefully in
and I find 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 l had talked with our leading
makers.
There is general air OF conser-
vatism, plans for expansion have been
seHaewhat-eurtaile -and-the -hig
plants have laid of good part OF
their force to take inventory and
clean up the years business.
As have said, there Is no cause
for serious alarm, but II is recognized
here, also, that the automobile trade
has passed through the boom stage
and Is working toward more solid
basis
Here are the facts:
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 statement
made by w. c. Durant. the head OF
the General Motors company. the lay
OF of men was taken merely as a pre-
caution and not>6ecause the financial
condition of the corporation required
II. 1t has always been quiet to GER
tain extent In the automobile and car
riage industry in the month OF August
and this year the only difference is
that the staff of workmen Is much
larger and the lay-off concerns a
much larger number OF men.
For the present the General Mo
tors has ceased its construction work
here and | find evidence OF a policy
of economy in all departments. The
general officers, however, seem to
expect substantial increase In bust
ness when the fall trade starts.
There has been slump in orders
for cars, but this does not mean any
slump In buyers. This trouble is due,
1t Is 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
statesmen. II has been customary in
the past for agents to go to the
banks and obtain q sufficient sum Of
money to float large shipments Of
machines for immediate delivery
and in this wise the manufacturers
were transacting a cash business and
receiving an immense volume Of
With the action Of the banks
recently IL Is impossible for agents
who formerly ordered 10 and 10 cars
to take more than two or three and
there has been falling
off In all quarters.
The demand of the people for
machines has not fallen off in any
way, but. rather. the entire business
ment similar to that Of the bicycle
business a few years ago.
The effect of the present situation
in Flint does not seem specially
II Is true that there Is
said to be large failing Off In the
phenomenal rush Of trade Of the last
five years, but on the whole the gen.
eral impression seems to be that the
temporary quiet will be beneficial
as II will have the result of getting
the business of the city away from
the boom tacAcs of the last few
years and establish 1t on a better and
firmer basis.
In spite OF the statements OF the
officers | find that Ii Is generally be-
lieved that there are a good many
cars unsold out of this years produc-
ton, and the demand will have to
take these up before manufacturing
will resume on q large scale With
the tendency OF the western banks to
tighten up in loaning money on auto
mobile security, there have been a
good many customers who ordered
cars but could not pay for them with
the result that they are on the deal
ers hands.
am more convinced than ever
since coming here, that the readjust-
ment in the automobile industry
seems 10 have come, and from now
on IL will be conducted on the lines
OF other manufacturing. The big
first demand for cars has been filed
and the future expansion will come
from the normal growth OF the trade
There Is no cause to fear any serious
harm to business here. There will
be some furries but the
wonderful prosperity OF the past few
years has put the big factories In a
firm position.
FINANCE.
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a.