El Paso herald. (El Paso, Tex.) 1901-1931, 1916-02-05
AUTOMOBILE HAS PASSED STAGE
WHERE REGARDED AS A LUXURY
New York National Bank Advertises It's Views on the
Ownership of Motors w ould Like to See Every
Merchant and Farmer Drive His Own Car

~ ERHAPS no more clean exposition
has been given OF the place the
u automobile occupies in present
day existence than that put forth by a
great New York national bank in one
Of its advertisements.
THE automobile" this advertisement
read, has long ceased TO be merely an
expensive luxury, and is now an eco
monte necessity as well to the farmer
as 20 the department store or IN any
occupation where expedition or econO-
my can make its use valuable.
"By means Of the automobile the
outlying country is being brought
closer to the big cities. and the values
that are created this way more than
offset any ordinary expenses which the
motor car may develop either in the
way or daily upkeep. depreciation or
wear and tear
This bank would be glad to see ev-
cry farmer and merchant in possession
Of an automobile, first for his use in
his industry. and. second. for his
pleasure. for there is a weighty eco
nomic factor OF efficiency in the social
conditions that surround labor.
Cheap Cars Developed.
So long as the use of the motor car
was confined to a comparative IeM'
who found it a new toy and distraction
excessive prices, due largely to extraV-
agance in manufacture and marketing
and to limited production facillues'
We're possible. The sef-propelled We
hicle was a new thing. must establish
its own precedents, and those VINO
could afford them as Injuries PAID
luxury prices for them,
Gradually. however, this field proved
too constrained, and there arose oe-
mand from less exclusive sources. TO
meet this the cheap car was developed
and for some time two extremes. the
very expensive car and the compare
lively very cheap one, dominated tne
market. There was no middle strain
worthy Of consideration.
In the last seven years this hiatus IN
price has been completely spanned by
the development of several makes OF
medium priced automobiles Of gener-
ally satisfactory ability. But II was not
until the season just ended that the
producers Of the highest grade cars
the real aristocrats Of the Industry, re-
allied the significance OF this great
central market and set about to
serve it,
To bring their product within reach
Of this market herculean economies
must be effected. Five elements enter
intO the cost of motor car manufacture.
They are: Cost Of material, cost OF Ia
Dor. overhead expense, dealers discount
and the manufacturers profit Since
the early days OF the industry heavy
reductions in the latter two items have
greatly increased values. But further
sacrifices were made in this direction,
as far as possible.
Save I'm Many Ways.
Savings in the buying OF material
other than by means of increased buy
ing facilities were impossible II the
manufacturer would bring to this mar
ket car Of the same quality as he had
hitherto produced. The answer lay in
reducing the cost Of labor through in
creased and improved manufacturing
facilities and in reducing the overhead
expenses by charging his output. The
more the output could be enlarged
practically the less portion Of overhead
expense each car would have TO bear.
How well the leaders of the industry
adjusted themselves TO this new cOndi-
ton is seen in the value offered last
season. when better cars were mar
keted at lower prices than ever before.
The tendency toward sound, business
like practices in production and mar
keting was general in scope and almost
every great company shared in it, True,
a very few concerns kept to the old
practice OF limited outputs and high
prices, but their market had narrowed
to alarming and almost vanishing pro-