Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-11-29
AUTOMOBILE INDUSTRY SHOWS
MOST MARVEL Gus DEVEL OPMENT
In Its Twelve Years 1t Never Has Taken a
Backward Step-Banker Analyses
Conditions of Trade.

Prompted by the thought that bank
ers generally may not be fully m
formed on the automobile industry
which has made such rapid CROWN
during the past ten years. William
Livingstone. a Detroit. Mich. banker.
has prepared some facts and figures
which show the automobile industry
il, its true light and indicates the mar
Selous development there has been III
the making and marketing OF the au-
tomobile. which has grown from
comparative toy to a business of ire
mendous volume in the short period OF
twelve years. Al first machine for
pleasure use only. it is rapidly taking
its place among the necessities of Il
iast-moving civilization.
Probably - per cent of ali of the
automobiles made in this country are
produced in Michigan. and my loca-
ton in that state, coupled with my
acquaintance with officials of the lead
ing automobile factories. enables me
to know conditions to an exceptional
degree.
although looked upon as y rather
hazardous business in the early days,
automobile manufacture has assumed
gigantic proportions. with apparently
little decrease in the demand. although
with prices getting lower each year.
and the margin of profit smaller. II is
worthy of note that at no time in those
twelve years has the industry as Il
whole taken n backward step. the rec
ords showing that each year an in
creasing number of ears has been
made and sold: from less than . thou
sand cars in 1902. when the business
may really be said to have begur to
$4,000 cars during the fiscal year of
INV o. To-,
valuation of about S125.o00. 900.
Coupled with these figures are the
products of the parts and accessory
makers. with sales during the pas ST
twelve months running into big figures.
Attention at this point is called 70
the fact that 4. per cent Of the cost
of an automobile is in the labor
No Longer a Luxury
while in the early days the ,utomo-
bile was a luxury, it is now a necessity
for a large proportion of owners. and
has taken it's place among other utili-
ties like the telephone and telegraph,
with broadening field because of the
increasing demand for commercial or
tretght-carrying power-driven vehicles.
This accounts LARGELY for the continued
buying of cars even in times of de-
precision as in 1897 and 190S-a period
that showed substantial increases in car
sales. However, it must he appreciated
that to the farmers, doctors and bust
ness men generally the automobile is
now dependent part of their equip
ment for doing business.
las the greatest number of cars are
sold during seven months OF the year,
makers and dealers have been borrow
ers. and 1t is a matter of record and
congra tulation that in fostering this
growing industry bankers of this coun-
Try have played most important part
I'D
bankers, in the past few years espe-
cially. have appreciated the stability OF
the industry and the standing of the
men in charge, and have co-operated to
business on its present high plane.
Few Wild Cat Schemes.
There have been few wild cat schemes.
and those few have died aborning The
makers. as a class. are energetic and
enterprising. taking pride in their prod
duct and in their ability to give en-
ployrent at substantial wages to the
best men of many trades, including en-
cheering skill of the highest quality.
That the automobile manufacturer is
broad in his views and co-operativ in
his work is evidenced by the excellent
support they have given the 'buy-a-
bale -of-cotton' movement in the south.
Practically all of them have bought
cotton on their own account, and have
instructed their branches and dealers
many thousands of dealers. bought a
bale of cotton for each dealer in the
southern territory, and also agrees to
buy an additional bale for each car
sold there. which should mean probably
four or five thousand bales. Another
company bought outright 500 bales Of
cotton at 10 cents per pund.
The perfection of the motor car in
twelve years has amazed even the most
optimistic and accounts largely for the
increasing sales. The simple present
day car can be operated by man, wom-
an or child, and even those of very
moderate prices do not entail the high
maintenance cost that was ever pres
helps to account for the tremendous
purchases by people of all stations
that have been so astounding to those
unfamiliar with automobile conditions.
Method of Selling.
While depressed to some degree at
present, the FIGURES l have in hand
show that the automobile business has
suffered less since July than almost
any other line of trade. Being a sea-
son business to some degree, it has
been the custom among manufacturers
TO borrow during the fall and winter
months for materials and labor, dis
charging their obliga tons in the
spring and summer.
The manufacturer ships to the deal
er, of whom there are more than $4,000
in the country, sight draft against
dill of lading. The dealer whose cap
tai is too limited to carry a large
stock of cars has been accustomed to
borrow from his banker thus permit
ting him TO handle a larger stock and
a f.f htyct -;fl
the banker having always ample Sc
curity for his loans.
The dealers business with the final
buyer has invariably been on cash
basis. 1t being noteworthy fact tina,
comparatively few automobiles have