The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-03-29
Automobile Business No Longer
One of Big Profits with
Y Small Output.
PURCHASER GETS BENEFIT
Ot Piece ReMstuns Which in
Turn Are Effected by
Quantity Production.
'tBy Hugh Chamlmers, president OF
Chalmers Motor Company.

SA.aAHSEs AAppQF S0mpAnysl
Having Just passed through a
most prosperous twelve months. It &
very dlthcult for me to take other
Inan an optimistic outlook on the
prospects for next season. do moi
believe, however, that the public as q
whole, fully comprehends the great
changes that have been wrought IN
the manufacturing and financial de-
partments OF the various companies
engaged in the making Of motor cars,
In view Of proposed legislation
aimed directly at a business suppos.
ed TO be earning dividends out Of ali
proportion to the capital invested,
think few plain statements on ex.
listing conditions will be Of value at
tho present time.
IN the first place, the automobile
business as whole Is no longer one
OF big profits. only In so far as GUAM
tty production results in big profits.
Today the profit per car a very
small Item. Companies who have
Just accomplished q prosperous year
have done go only through their abtl.
tty to manufacture and sell large
quantities.
Moderate Returns on. Investment.
Considering the great investment
and risk involved, the returns 70 au-
tomobile manufacturers are not near.
~ so great as In business wehre less
capital Is required and where there
Is comparatively less risk.
Take the case Of the Chambers Mo-
tor Company as q single example.
The manufacturing profit ON a
Chalmers car Is about five per cent
of Its selling price. How many man
llfacturers Of so-colled staple articles
would be satisfied with so small q
margin Of profit.
Politicians and perhaps some por-
.tion OF the public obtain their ideas
OF enormous profits from reading re-
ports on big sales figures. Without
q doubt motor car states have In
creased tremendously. but IL they
had not, car prices would still occupy
the same place as they did SIX years
ago. 1t would be impossible to In
corporate improved features In motor
cars each season, reducing car prices
simultaneously, without a CORE
ER1AN4Ah 4AE4Sekab III etA4EH Anu pTQ-
duction.
In practically every instance, man
ufacturers have given the buying
public the advantage that has come
to them through increased production
@in other words, the business has
been placed on a prodt-sharing. !
venture the assertion that most
standard automobile manufacturers
today are making less money per
capita than at any, time during their
history. but the business continues
big because the demand is big.
War Business Negligible.
In only few Isolated cases has
war business figured in the record
sales Of motor car. manufacturers
during the last year. On the whole.
the season Just closed, has been one
OF healthy growth, and while the ex-
port market La temporarily crippled,
the increased sales at home should
more than make up for any deficit In
this direction. The Calmers has
aent only scattering shipments TO
Europe In the last eighteen months.
yet our colume Of business has been
greater than ever before.
Probably the most striking devel-
opmenti Of 1915 in the industry was
the general revision OF prices In tho
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