Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1916-12-10
GOVERNMENT AID
FOR AUTO PLANTS
After the War Russian Car
Would Ride in Home-Made
Automobile.

Although announcement was made
some time ago that the Russian gov
crnment had arranged to subsidize five
automobile plants In that country. so
little has been printed about the ma
turc Of the subsidy that American au-
tOmobilo manufacturers are still In the
dark as to its effects on the export
trade. Since the beginning of the war
more than ten thousand American
made autOmobiles--p ctically all
trucks-haVe been exported to Russia.
With five big plants subsidized by the
government, the demand for foreign
built cars IL naturally bound to suffer.
but American manufacturers have
\ been so busy filling domestic orders
Nat the Russian field has been given
ecant attention.
What does this Russian subsidy
comprise? What effect will II nave
on American automobile exports? And
what is the future for American cars
In Russia? These questions We're put
to NJ. Sergey Friede, who is one OF the
biggest figures IN the Russian -Amcri-
can trade. As. Mr. Fliede introduced
into Russia and has exported more
American cars than any man in the
country. he Is well qualified to throw
some light on the subject.
Offers of Subsidy.
at Is surprising how little has been
printed about this Russian automobile
subsidy" said Mr.. Frlcde Briefly. 1t
is simply this: The Russian govern
ment has offered to take the entire
output of five plants-i.JO from each
plant--for n period Of five years at
the amazing figure of $4,000 lar
American manufacturers had an op-
portunity to avail themselves Of this
subsidy. but they did not do so. Three
Russian. one French and one English
companies accepted the offer. whlch,
of course, is now closed to America.
At the outbreak of the war, you know.
there were only two automobile man
ufacturing plants in all Russia, ana
one of these plants turned out less
than hundred cars year. Conse-
quently for the Russian government
to arrange to buy 1900 cars a year
from Russian manufacturers at $4,000
u car is n radical departure.
Effects of the subsidy.
However, the effect of this subsidy
will not be as far-reaching as one
might expect at first glance. IL VIII
be long time before these plants VIII
be able to turn out 100 cars wear.
I'm the first place. the companies
that have agreed to accept the terms
of the subsidy may be unable TO IL
nance the undertaking. EstablisninS
large plants In Russia 10 turn out
complete automobiles Is very diff
cult undertaking. Not only will huge
sums have to be raised. but practically
all of the machinery to equip them
will have to be imported. And even
after it arrives there will be the prob-
lem of getting skilled mechanics.
Granted that five automobile com
panics will he able to avail themselves
Of the subsidy the fact remains that II
will he possible to export the bes'
American cars to Russia and sell them
for far less than $4,000. That is. un'
less the present duty on foreign-ma
cars is many times increased.
II believe there will be a market
for large number of American cars
in Russia Immediately after the close
of the war-unless the struggle lasts
much longer than anyone anticipates
The great demand will be for low
priced cars and This demand l believe,
will he supplied by American manu-
facturcrs.
$4,000 Automobiles In Russia.
"rhere were on,v 5000 automo-
hiles in all Russia at the outbreak oi
the war" continued Mr.. Friede. fo'
it has only been within the last three
wears prior to the outbreak of nos
tilities that automobiles were imported
to any appreciable number. few
rich people In Petrcgrad have had
high-priced cars for several years. III
fact, there We're more Rolls -Boyce
cars in Petrograd two years ago tna'
there we're In New York. The few car,
in Russia were limited to the capital
and dozen OF the larger cities.
"'The representatives OF American
manufacturers had difficult time III
selling their cars In Russia before the
outbreak of the present war: In many
parts Of the country automobiles were
looked upon as devil-wagons: OnlS
n short time ago a Ford car that wa.
driven from Petrograd to Archangc
bv the post road was fired upon three
times.
Peasants Fear Automobiles.
"Perhaps some of the peasants
thot the car was part OF the much
feared German invasion. The major
ity of Russians have never seen al
automobile, and 1t is only natural tC
regard them as the Indians regarded
the first locomotives that crossed th'
\ western plains.
Even in peace time an automobile
causes much havoc along the Wei
Travelled roads. Horses are frightened
and runaways are frequent. nave
had to chase runaway horses tm'
after time, help the frightened occu
pants of wagons back into their places
and smooth their injuries with pres
ents of money. Motoring In Russli
still has serious drawbacks In that re
spect.
Roads Are BAD.
But the terrible condition of th'
majority of the roads Is one OF th'
greatest obstacles that statesmen TO
American cars have to combat. In ~
= Baltic provinces they are not bad, fo
elsewhere they are almost 'mpassabl
n during the greater part of the year
Americans who complain about tn
bad roads in this country have no idei
what the majority OF the RUSSIAN
roads are like. Then, too the German
competition before the war was Sc
rious problem. German agents di'
their best and adopted every know
scheme to Introduce Germar-made au
tomobiles. At the present time, o
course, this competition does not ex
list. but six months after the end @
the war 1t will bo factor to be reck
oned with. German manufacturer
are not going to give mp one OF thel