The sun., 1918-08-10
MUST STOP MAKING
PASSENGER MOTORS
Automobile Men Advised to
Put Plants on an Entire
War Basis by Jan. /.
STEEL SUPPLIES TO STOP
Offer to Reduce Production SO
Per Cent. Meets With a 100
Per Cent. Demand.

WASHINGTON. Aug. 9.-Manufacturers
OF passenger automobiles were advised
by the War Industries Board to-day to
convert their plants to 100 per cent. war
work as rapidly as possible. and to place
them on that basis not later than jan
uary L. 1919, in a letter addressed TO
the National Automobile Chamber OF
Commerce. In no other way, the letter
stated, could they be assured or the
continuance of their industry or the
preservation of their organizations.
The letter was in response to pro-
posal made yesterday by Hugh Chal-
mers on the part Of the manufacturers
voluntarily to curtail the passenger car
industry so per cent. The War INDUS
tries Board declared that the present
situation regarding steel ana other ma
terials needed for war work gave little
assurance OF material for the manufac-
ture of passenger automobiles. even
after providing for war requirements
Pending receipt by the board OF sworn
inventories of materials on hand re-
auested July is, no materials will be
permitted passenger car manufacturers,
the letter states
The letter in part follows:
I'VE are in receipt of and have given
very careful consideration to your COM
munication of August embodyng the
resolutions passed at your meeting al
Detroit Tuesday, August s. We note
that the manufacturers have voluntarily
agreed among themselves to curtail the
production OF passenger cars 90 per cent.
While this Is clearly step In the right
direction and furnishes a basis for each
and all OF the manufacturers without
further delay to make appropriate re-
In
head expenses. still It il only step and
further curtailment Is inevitable.
Fairness to your industry impels us
to frankly state that the situation as
1t is presented to us to-day Indicates
very clearly that there will be little IL
any Of the principal materials required
in the construction OF passenger cars
available for non-war industries after
the war requirements shall have been
provided for, and the War Industries
Board cannot at this time make any
promise whatsoever regarding the supply
TO your industry of steel. rubber or other
materials for any definite period in ad-
vance.
I'VE strongly believe that 1t is TO the
best interest of your members and all
other manufacturers OF passenger auto
mobiles to undertake to get on 100 per
cent. war work as rapidly as possible
and not later than Janusr,t l, 1919. for
in no other way can yo'- be sure OF the
continuance of your industry and the
preservation OF you. organization"
Although the communication states
further &C ..or will be taken when the
invsnto ries are returned. little promise
Is held out by members OF the War in
dustries Board to the automobile indus
try unless it's entire manufacturing ca
pacity is devoted toward war work. On
the contrary. 1t was stated by ono
member. ALLEGATION OF steel to the indus
try has been stopped. and those who
were far sighted enough to obtain stocks
at steel prior to the restrictions on de-
livery In all probability will have their
supply taken by the Government, to be
turned over to war Industries short Of II.
Many OF the manufacturers who have
80 far returned sworn inventories. II was
stated, have on hand sufficient steel and
other material to operate at 100 per cent.
capacity from four to six months. When
occur, placing all manufacturers of pas
senger cars on the same basis. This
basis, it was said, would be the amount
Of steel the Government may be able to
supply after war requirements are met.
The steel requirements of the Govern
ment and the Allies for the last six
months Of this year have now reached
e2,500.000 tons. which was taken to
mean that the levelling process probably
Will be actual communicating Of steel
stocks which the far sighted" passenger
automobile manufacturers obtained