Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-04-21
COST OF AUTO
MATERIAL SCARS
Advances of From rs to 100
Per Cent in Supplies Are
Announced

There is no doubt bpt that. il prices
Of materials continue To soar. automo-
bile manufacturers generally will be
compelled TO announce another in
crease in price" sa=s s. s. PaNson CT
the Sehuman Carriage Company.
Even the large concerns which. be-
cause of their financial standing and
credit. have been in the habit Of COW
ering' for two years in advance for
their requirements. now find their two
year-old contracts expired and no pos
sibility Of renewing them at the form
er prices.
Advances ali the way from % TO zoe
per cent are announced, and, worst OF
all few supply houses can guarantee
deliveries or prices even at present
quotations.
Everybody is in the same boat. The
fact of the matter is. there is short
age of raw materials, or If you prefer
to put it the other way, an overdemand
for them.
Market Uncertain
4 have never known time when
market conditions were so uncertain
or when the manufacturer had so
much difficulty in estimating his costs
as that which now. exists.
Just take one item that the average
buyer would never think of-the
shortage of railway cars. Who would
suppose that that would be a serious
item in the increased cost Of making
automobiles? ~: "
when | tell you that the manufac-
turers frequently pay as high as $4,000
in express charges in one day in order
to get materials that otherwise would
seriously hold up the factory, and
that their average express bills
amount to several hundred dollars a
day, 1t will be seen that this is an
item of considerable importance in
the cost of production today.
Every time you stop big factory
You entail a tremendous expense and
consequent increased cost of the prod
net that is coming through.
"The customers who are clamoring
for cars cannot appreciate the prob
lens that beset the manufacturer,
first in getting the material to his
factory, and then getting the finished.
product out again to the customer 8.
Many times the raw material
shipped gets lost, and IN the present
state of congestion IT is almost i'm
possible to trace and locate Some
times this material cannot. be re-
placed. 49,. ...-- IS
1T costs money, too. TO keep men
scouting AROUND at the. different plants
to see that the stuff is shipped ac-
cording to schedule-aa that is the,
only way it can be. done. Our own
men must chase up freight cars and
then see that the material is loaded
into them on time. ... y.
Machinery Doubled in Value ~
Machinery has doubled in value;
tool steel is. out of sight; diemakers
and diesinkers are earning twice or
three times as much as they did a
year ago; working hours are shorter
and wages are higher Then look at
the price of coal not to mention the
uncertainty of the supply.
Everything that goes into an auto
mobile has taken an upward trend
and as the policy Is to make cars bet
ter and better every year-onr costs
are most seriously affected.
q so far, we have weathored the
storm and steadfastly refused to in
crease prices but there is no GER
tainty how long we may be able to
do so. If conditions do not change
for the better soon we not only will
have to announce ar increase of price
but other manufacturers, who have
previously done so, will have to an
nounce another" s....