The Washington herald., 1916-10-22
Auto Is Golden Artery in
Nations Business System

mand for gasoline for the use of automo-
bIes. England's most effective measure
against Germany was the barrier against
the importation Of supplies of petrol.
This was the underlying reason for Ger
many's great effort to expel the Russians
from Galicia so that the great oil fields
could replenish the exhausted supplies of
the central allies. Gasoline has proven
to be one of the greatest necessities in
war. Around Gen. Joffre's headquarters
somewhere in France" there are 4OO0
automobile trucks and 5000 passenger
automobiles in constant service We all
know the story how the late Gen GAL
leni saved Paris by transporting thou
sands of troops on motor buses taken
from the streets of Paris to the Marine,
thus bringing to an end the German ad-
vance. The Entente allies have ordered
more than 5000 motor trucks from Amer
lCan makers since the beginning of the
war. The automobile has taken rank
with the artillery and infantry as an ur-
gent necessity in warfare. But to return
to the subject of gasoline The war stlm-
ulated the demand for petroleum anG
prices advanced 100 per cent. Since the
beginning OF the war and up to August
!, new oil companies having an aggregate
capital stock of $i32, 10000 were incorpo-
rated in the United States. The United
States Geological Survey reported that
production of gasoline in the first half os
this year reached the enormous amount
of 100000 barrels
No resume of the scope of the automo-
bile would be complete without reference
to the wonderful effect that It has had
on the good roads movement On July
II, 1916, there was approved a law known
as the Federal Aid Road act. This pro-
Vides for the expenditure each year by
fhn
begins with 100000 In 1917 and increases
S5,OoO,OOO each year until 1912, when the
Federal government will apportion $25,.
100000 among the States for Improvement
of roads. Thus in five years the Fedora:
government will have turned $500 OOU
over to the building OF roads, as $1,000
900 year for ten years Is also appropri-
ated for building roads in national for
ests. In 1906 less than three-tenths of
per cent of the total rural road and
bridge expenditures in the United States
were derived from the motor vehicle
revenues, but in 1915 nearly per cent Of
the money expended was secured from
this source. In 1915 automobile owners
paid HS.2i513 in license and registra-
ton fees.
Earnings of Auto Companits,
Speculation has often yielded profits
that are startling but I know of no
legitimate industry where profits are as
high as in the automobile industry The
public knows of this state of affairs.
Bankers concerned in the selling of auto
mobile securities declare that they are
constantly requested to help their clients
in securing a portion of automobile
stock flotations. But the pools keep the
stock to themselves. The public is not
asked to subscribe Last June L. G.
Kaufman. president of the Chatham &
PheniX National Bank of New York,
planned a gigantic automobile consolida-
tiOn. He proposed to merge the WHY'S
Overland, Chalmers, Hudson, Auto Light
and Fisk Rubber Companies into one
concern having a capitalization OF $780,
100000. Before the plan was fOrty-eight
hours old requests for stock were in ex-
cess of the total The proposed merger
was abandoned, as the automobile MAX
ers felt they could make greater profits
by going it alone.
Automobile earnings are fabulous. Take
the case of the Packard Motor Car Conn
pany! In the past seven years this COM
pany has earned SIS 636, sos, and in addi-
ton charged off 5000, 900 for depreciation.
This year the Packard expects to earn
5000, 900. In 1914-15 the earnings totaled
g, 769,5lS. For the six months ended June
30 the Stewart-Warner Speedometer Com
pany earned $1,275,OOO. The Willys-Over-
land Company earned $11,2O1, ,256 in 1915,
doubling the earnings of 1914 which were
&. .S64, s5s The Chevrolet Motor Company
expects earnings of $S0OO,OOO this year
The General Motors Company, which con-
trolls the Buick car, earned $25, 900, 900 on
the $4,000 cars that it sold in the fiscal
year ended July 81 last.
The Haynes Automobile Company de-
clared stock dividend of 1OS per cent in
August, increasing its capital stock from
81, 10000 to 100000 The company re-
ported net earnings of $1,6OO,OOO on the
500 cars built in 1915. In the next fiscal