The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-03-10
|SATURATIONPOINT!
lis FAR DISTANT.
A. r. ERsKINE OF sTuDEsAKER
SAYS THAT LIMIT OF CAR PRO-
DUcTIoN Is AMUSING TO PEo-
PIE WHO KNOW THE sITUA-
TION,

THE talk today of mysterious
saturation point, INDUCED in by unin-
formed persons or skeptics, is amusing
to people behind the scenes" says A.
r. Erskines president of the Studebak-
er corporation. while the automobile
Industry ranks fourth among Ameri-
can industries, doing business OF q
billion and quarter dollars annually,
many people regard it as an eva
nescent business. This Is far from
being the truth and q few facts con-
corning the industry will clearly indi-
cate the fallacy OF such conclusion:
'First-The days of the horse are
over. The automobile is an economic
necessity in transportation, both for
business and pleasure. Its application
to individual uses, wide range of ac-
ton, economy, charm and healthful-
ness, are universally admitted. 1t pro-
NOTES intercourse among people,
broadens their education in affairs, and
is, in the conduct of the farm, as much
Of an economic factor as any agricut-
tural implement used thereon; IL gives
the farmer closer contact with mar
kets. facilitates farm supervision, and
forever dispels the isolation OF farrn
life.
Sets World Pace. .a
"Second-The appeal of the automo-
bile has grasped the mind and Aired
the imagination of more people
throughout the civilized world. In q
shorter time than has perhaps any
other manufactured article in the his
tory of the world. Regardless or race,
age, profession or sex. practically
everybody who does not own an auto
mobile hopes to own one some day.
Hence the desire for possession 10 all
ready created, and the automobile
m n
prospect that he wants or needs an
automobile-he admits It.
Now 100000 in Use in U. s.
S"Third-There are about 100000
cars in use today throughout the
world, of which 100000 are in the
United States. The income tax returns
just published show 3S6.652 people re-
porting incomes of over $4,000 ifl
single, or $4,000 if married. ! think it
is q safe assumption that 80 per cent,
or roughly 100000, OF these people own
cars and that. therefore. the remain
ing 2,7o0,000 cars belong to people with
incomes OF less than $1,000 or $4,000.
Statistics indicate that 100000 of our
people have incomes ranging from
$1,000 to $500, and deducting 200, 900
cars from the 100000 to cover cars in
use by business organizations, it would
seem that of these 100000 people g.
OVUpVUV own CARS anu ING same L1uIu~
Der are yet without cars. Similar de-
auctions are not possible for foreign
countries. but IL we have 100000 peo-
pie left who can afford to buy cars, IL
seems reasonable to assume that at
least there are an additional 100000
in foreign countries, which would
make 100000 possible new owners.
Many requirements.
"Fourth-On top of sales to possible
new owners, we always have annual
sales to cover replacement Of cars al
ready in users hands. Using the pres
ent figure of 100000 cars on hand,
and estimating the average life of all
cars at FIVE years, IL becomes apparent
that the demand for requirements only
amounts at present to 100000 cars an
nually. In 1915 American nanufactur- |
ers produced and sold about 1885,.
900 cars, and without increasing this
rate Of production, 1t iS probable that
s, 100000 cars will be in use in the
United States by Jan. 1, 1920. If
this estimate materializes, we will
then be requiring 100000 cars an
nually to take care of requirements |
alone, and this demand will absorb the |
present output OF the American manu-
facturers, and leave only 100000 for /
their export shipments, which will be |
far from enough.
"Fifth--It is estimated that about i
!, 000,0 900 cars have been produced to
date by the factories of the world. of
which only Is per cent were trucks
and commercial vehicles, so truly it |
may be said that the commercial field |
has not been scratched. II, as I. say,
the horse is going. ....
"The 'saturation point Is no more
in the automobile business
than it is in the typewriter sewing
or piano business" s