The San Francisco call., 1913-08-24
BUYERS Of CARS
DEMAND SERVICE
Manufacturers Compelled to
Put Value Into Makes
to Sell
Chalmers Company Has In
vested Over $6,OOO,O0O in
Auto Building Industry
BY HUGH CHALMERS
President Chalmers Co.


The United States is the most won
derful automobile market in the world
"a market which will take care OF an
average production OF perhaps 100000
cars year for a great many years to
come. If did not believe this I should
want to get out of the automobile busi
ness at once.
But like every other industry, the
automobile business must continue as
an economic manufacturing PROPOSE
ton. few years ago they used to
speak OF the automobile game" Build
ing automobiles is not a game. 1t is a
serious and stable business.
I believe that If the American mar
ket is not crowded there will never
come time Of serious slump or famine
in the motor car industry. Gradually
the overproducers and the underbuild-
ers are being eliminated. II Is a direct
application of the law of the survival
of the fttest. The public will only in
dorse those cars which are manufac-
tured by sound conservative companies.
And those companies which receive the
public Endorsement have an assured
future
The question of who will build the
automobiles Of the future is being
thrashed out today. The solution is
being found in economic condition. In
my opinion the manufacturer who is
building most surely for the future as
well as for the present is building up
a big plant in which to manufacture
most all of the parts of his car. He is
taking a small margin of profit, only
enough to give him a just return on
his investment because he wants to
market his car a the lowest possible
price
Looking over the cars which stand
ol In flp aS+i iraa
YOU Will find that the same cars were
well regarded three four or five years
ago. The cars which are built today
must be giving service five or more
years from now if they are to continue
In public favor. The time has passed
when the entire production of factory
can be sold each year to new class
OF people.
There never will be built any piece
OF machinery that will not require
service from the manufacturer. People
viii have accidents, and even without
accidents any piece of machinery which
is used steadily over a long period of
time will need a certain amount of re-
placement OF parts. Therefore, man
who regards an automobile as neces-
sity and who expects to secure unin-
terrupted service from 1t must buy the
product of a company which is per-
manent. He wants to feel assured that
sudden failure OF CHduSe OI DuSiAlCSS
principles will not suddenly depreciate
his investment.
The best assurance OF permanency
in the automobile industry is a big
factory, a sufficient investment, a clean
business record and plenty of capital.
Certainly those companies which have
invested s5.000.000 and s6.00o,000 in
their plants are not risking such vast
sums in any precarious enterprise.
We are expecting only good business
conditions for the next few years. We
have tried to be safe and conservative.
We have put over S6,000,000 In the
Chalmers factory in buildings, machin-
ery, materials. We have set out to
build a quality car at a medium price
and we have given our pledge to the
public to build that kind of car. We
have bet more than s6.000,000 against
the future that we will keep our
pledge to the public, and we have got
to do it. There can't be any question
in our minds as to choosing between
quality and big profits. And if ever
there comes time when we can't put
the Chalmers quality into our cars at
their medium prices, then we will have
TO raise the price. We will never cut
the quality.