New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-12-08
Car Prices
Will Not Be
Cut by All
Those Who Increased Least
in War Time Will Natur-
ally Not Reduce Now
Labor Market Stays Up
And While 1t Does So, Only
Those Who Went Highest
Can Best Afford 10 Prune

The whole question of automobile
pllces Is matter for each individual
company in the industry to settle for
itself, and because some companies
have announced price reductions it does
not follow that all Of them will do so.
The amount by which prices have been
increased in the war period, roughly
from January ], 1917, to November.
1913, has the most bearing upon the
possibility Of reductions at this time.
1t must be understood that nearly all
the automobile companies are governed
by the same conditions as to labor and
materials, the elements which control
the prices at which the goods are being
sold. Occasional exceptions NAV be
found in which the cars are made OF
materials bought a iong time ago, and
the motor companies are now giving to
the public the benefits of those con-
tracts. But in the main most of the
manufacturers are on the one footing
as regards the materials and labor Sit
uation
Some makers found it expedient in
the war period to increase prices any
where from so to 70 per cent. Other
fought off all but the most imperative in
creases and raised prices no more than
10 TO 20 per cent in the same period
Naturally those who have made the
largest increases should find it easiest
at this time to cut off some of that in.
crease
In some cases part Of the increase
was made in the expectation that th,
war was going to continue for som,
time after January /, 1919 at which
i time the automobile factories were ex
pected to be 100 per cent on war work
/ 1t was figured that the comparativel,
few cars that could be completed TO,
the spring trade would be in demand
ana that therefore higher price coult
,alrly be charged, principally for tn.
Denetit of the dealers handling them
/ ne larger price would give the deal
ers more profit per car and would hel,
llde them over what promised to b,
long dry spell Naturally. it would b,
easy and has been found to be easy TO
some of these advances to be loppe,
off. PIP
universal return to pre-war prices
except under very extraordinary circum
stances, is hardly on the cards lust now
LABOR and materials are high TO-DAY
and there are presumably no SIGNS tina
they Will be appreciably lower. Rea,
what one New York distributor. Z. s
partridge, wrote to a sub dealer on tn
Liberty car, which Mr.. Partridge's com
pany represents along with the Owe
Magnetic;
The purchasing power of dolla
VIII never be the same again, RS
can't think labor will ever drop back t,
pre-war standards, and, of course. tn,
cost OF labor naturally affects all o.
the material that goes into a car a:
well as assembly costs, and all over
head expenses naturally increase.
am sure you viii agree with me thai
the Liberty advance of 18 per cent Dir
the war period was warranted. and !,
is Droblematical whether they viii eve1
be able to go back to early 1917 prices
\ II Is quite reasonable to expect tha
such concerns as have advanced thei,
prices beyond reason, far beyond I'll.
! increased costs of labor and materials
should reduce their prices. The pric,
of the Liberty Six was only Increase
IN accordance with the increases in la
Dor and material
I Mr.. Partridge quotes Frank A. Van.
derlp in support of the idea about
wages. Mr.. Vanderlip said only re.
Gently; Il am not sure that we are moi
/ permanently on higher level Of prices
] because OF the readjustment Of gold
do not look for a Wholesale reduction
either IN prices or wages. Some of the
wages have been increased by the wa,
to an almost fantastic point. This il
notably true in the shipbuilding anc
munitions industries. Now these wages
must go down. But the great genera,
level OF wages will not decline while
the cost of living is on its present
level"
Cost of living appears to furnish the
answer. Food prices are high and viii
stay up, because the demand is greater
than ever. If food prices are up wages
must stay up. High wages means money
N circulation, more goods bought anc
production stimulated Money in cir.
culation means good buying and pros.
perity. That's the circle.
1t seems logical to restate that not
III automobile companies are going tc
tut prices because some have The
man who insists that all should reduce
+ ono does owes it to himself to look
into the increases made in the wa,
period by the maker Of the car in
which he is for the moment particu.
arly interested. He can best Judge
&c legitimate reasons of there beine
cut in price by the percentage OF
increase recorded.