The Washington herald., 1917-01-21
AUTO INDUSTRY RANKS
fourth; H;BRIGHT FUTURE
But Will Undergo Severe Test When
War in Europe Comes to End.

The automobile, once the representative
Of mushroom industry, today is regard
ed by bankers and business men as one
OF the CHIEF props OF the prosperity thar
VIII undergo a severe test in the CONNER
etal struggle promised by the end of the
war.
Not only will the motorcar industry
undergo the test without detriment, IN
their opinion. but II will act as a great
seaoflizer OF business. This prediction Is
based on the fact that the manufacture
Of automobiles. a s1.25O, ,0oo. .oo0-a-year ac-
oustrtes; and. furthermore, that its foun-
dations rest not upon the shifting sands
of opportunism. but securely upon a rock
economic necessity.
A summary Of the motorcar manufac-
turers' point of view runs as follows:
The motorcar industry received its
greatest recognition in the year Just
closed. In 1915 1t may be said to have
anchored itself financially Last year was
marked by the investment of money that
heretofore had studiously avoided entan-
clement with what was viewed as an un-
trustworthy enterprise. Financial back
ing came with generous hand from the
great money centers OF the country.
Leading hnanciers participated in mer-
gers and expansion, laying the capstoue
Of the structure that has been in the
building only thirteen years.
Money Racks Industry.
Financial recognition from a conserva-
tive banking profession clinched the fu-
ture OF the young industry. It stilled
tremors of doubt raised by phenomenal
growth. The silent testimony of invested
capital indicates that the motorcar in
oustry has not reached the "saturation
point, the zenith OF its DEVELOPMENT but
that it Is substantial, permanent, grow
ing industry, well able to take care of it.
self in the hurly-burly OF the worlds
traffic and to yield legitimate profits.
The automobile broke all records in in
dustrtal growth and esta ablished a stable
and lucrative enterprise because 1t Is a
necessity. Economy In transportation,
both FOR business and recreation, follows
In the wake Of the motorcar Excluding
the cities and towns built up by the in
Gustry, the automobile itself has blazed
new trails, built roads, and linked to.
gether sparsely settled districts. On the
farm and in the city it has attached It.
self firmly to American life and has be-
come a part of IT.
The year Just closed has been a gold
en- year for the automobile industry.
Never before has there been such an
activity in that trade-an activity that
surpassed all expectations. Predictions
made at this time last year that the
end Of 1916 would see every tenth fam
lily in the United States in ownership
OF an automobile were pooh-poohed as
rtdlculously extravagant dreams built
upon imaginary sales. The predictions
turned out to be wrong. They did not
so far enough Statistics compiled by
one authority arrive at the conclusion
that every seventh family today owns
motorcar. Another statistician whose
figures are authoritative estimates that
every eighth family owns an automo-
bile Inasmuch as these conclusions
were arrived at Independently of one
another. mean between the two ap-
parently is a safe conclusion.
1917 to .3reak Record.
The automobile will continue to be
in demand. Its necessity, when the
end OF the war will find Europe a con-
tinent depleted OF horses. will be para
mount in the reconstruction era of the
now-warring nations Just what the
export sales will be no one is in a DO
sttion to say. But that they will be
substantial no one conversant with the
situation will deny.
Enlarged demands for American cars
now are being felt, with European au-
tomobile factories taken over by their
respective governments for the manu-
facture Of war munitions. The Amer
lean motor car maker is enjoying the
benefit of the shortage OF cars result
ing throughout the world. Australia,
Ceylon. China, Egypt, Denmark, South
America, Holland and even little Ice
land-cOuRtries where American-made
automobiles formerly were in little de-
mand-have taken a liking to the
Yankee motor vehicles. Large num-
bers Of them are being exported to
these countries, partly on account Of
the war and partly because of the at
tractive medium and low priced cars
produced in this country.
All in all. the future, as viewed by
tn automobile maker and dealer, is
brighter than the luminous past
Sixty per cent OF the moving picture
hlms shown in Britain are Of American