New-York tribune., 1918-05-10
Report of rs Per Cent Re-
duction in Passenger
Cars Is Denied
No Curtailment of
Steel Shipments
Manufacturers Committee
Assured of Fair Treat
ment for Industry
By c. E. T. Scharps

The story that the government in
tends to order rs per cent reduction
n passenger automobile production was
exploded yesterday at the meeting in
this city of the directors of the Ma
tional Automobile Chamber of Com
merce, whose members include every
important motor car maker in the coun-
try except Henry Ford. The story didn't
exactly explode; it just fixed out when
pin was stuck into it.
1t was announced that no statement
had ever been made by government
officials or by any of the constituted
boards that it was intended to cut mas
senger car production to that figure
or any other figure. What is more.
the motor car makers are pretty we'll
assured. as a result of conferences the
early part of this week IN Washington.
that no formal order curtailing the out
put of passenger automobiles is to be
issued
Furthermore, it was learned, the
motor car manufacturers committee
was assured at Washington that no
order had been issued to steel makers
to sto pshipments to automobile fac
torres. Any such step taken by steel
makers is apparently on their own au-
thorlty. The government representa-
tIves in Washington assured the auto
mobile people at the recent conference
that they had no prejudice against that
industry or any other industry, and
that the only action taken which might
n m nj n JIn n4t
would come about solely through prior
needs of the government for it's war
programme. With this condition, of
course, the automobile people are in
perfect agreement, because thev, as
we'll as other patriotic business men
OF the country, want the war to be won,
regardless of the way it may affect
their individual prosperity.
Newspaper Story Explained
When the automobile men got to
Washington for their recent conference.
1t was learned yesterday. they wanted
to know first of all about the reported
intention to cut automobile production
40 per cent. They were told that the
story had been sent out by a newspaper
man who had mlsinterpreted statements
made to him. The newspaper man in
question was called in and he told the
automobile manufacturers that he was
responsible for the mistake and that
there was no official basis for the rs
per cent figure. Which clears UP
things as far as the Washington situa-
ton is concerned, but hardly makes up
Tor the damage to the industry and it's
dealers caused by the publicity given
TO the "75 per cent story the country
over
The automobile people were told tkat
the war needs of the government
naturally came first and they, as far
as labor, materials, supplies, trans
Portatlon, etc.. we're concerned, would
nave to be filled 100 per cent before
the calls of any industry could be con-
sidered
The automobile and other industries
Will not be put in the position of hay-
ing to wait until every government
need for the full programme is salts
Iled before any materials are available
for non-war business. But all orders
Tor non-war goods will be taken sub
Ject TO government priority.
Some Reduction Expected
Directors of the Chamber OF Com
merce said that under the circum-
stances some reduction in passenger
car output is natural, inasmuch as get
ting materials IN quantity is uncertain.
Some things will be easy to obtain and
others difficult, and the part of wisdom
will be to order throughout in moderate
amounts, in order to avoid unbalanced
inventories and the possibility of hav-
ing production thrown off it's base
through having a complete supply of
say so per cent of cars elements on
hand, with little or no chance of rapid
delivery of materials for the remaining
20 per cent.
letter covering the foregoing was
sent out yesterday after the meeting to
the companies members of the Chamber
OF Commerce. The general advice
given was that the companies would
have to form their own judgments on
how to proceed in the situation, but
that 1t would be case OF ego slowly
and watch your step"
AT the meeting yesterday there were
present also executives of the leading
automobile tire companies. The prob
lens of production of the motor car
makers are necessarily those of the tire
manufacturers, because reduced OUTPUT
IN automobiles means fewer tires for
factory equipment as we'll The tire
men conferred with the directors re-
Earding the Commercial Economics
boards plan to reduce the number of
rim and pneumatic tire sizes to be used
IN motor car production for 1919 and
1920. ""'