The daily banner. (Cambridge, Md.) 1897-2008, 1918-08-10

Slim Chance For Material For Pas
senger Cars-Told to Get on War
Basis-In no Other Way, Says In
dustries Board, Can They be As
sured of Continuance of Industry.
Washington, Aug 9.-Manufac-
turers of passenger automobiles were
advised by the War Industries Board
today to convert their plants to 100
per cent. war work as rapidly as pos
sible, and to place them on that basis
not later than January l, 1919, in
letter addressed to the National Au-
tomobile Chamber of Commerce. In
no other way, the letter stated could
they be assured of the continuance of
their industry or the preservation of
their organizations
The letter was in response to
proposal made yesterday by Hugh
Chalmers, on the part of the manu-
facturers, voluntarily to curtail the
passenger car industry so per cent.
The War Industries Board declared
that the present situation regarding
steel and other materials needed for
war work gave little assurance of
material required for the manufac-
ture of passenger automobiles, after
providing for war requirements.
Pending receipt by the board of
sworn inventories of materials on
hand, requested to July Is, no ma
terials 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 communication of August 8,
embodying the resolutions passed at
your meeting at Detroit, Tuesday,
August 6. We note that the manu-
facturers have voluntarily agreed
among themselves to curtail the pro-
duction of passenger cars so per
cent, while this is clearly step in
the right direction and furnishes a
basis for each and all of the manu-
facturers without further delay to
make appropriate reductions in sell
| ing, general and overhead expenses,
still it is only step, and further cur
tailment is inevitable.
Fairness to your industry impels
us to frankly state that the situation
as it is presented to us today indl-
Gates very clearly that there will be
little, if any, of the principal materi-
ais required in the construction of
passenger cars available for non-war
industries after the war require
ments shall have been provided for,
and the War Industries Board can
not at this time make any promise
whatsoever regarding the supply to
your industry OF steel, rubber or
other materials for any definite per-
iod in advance.
I'VE strongly believe that it is to
the best interest of your members
and all other manufacturers of pas
senger automobiles to undertake to
get on 100 per cent. war work as
rapidly as possible, and not later
than January l, 1919, for in no other
way can you be sure of the continu-
ance of your industry and the preser-
walton of your organization"
Many of the manufacturers who
have so far returned sworn inven-
tories, it was stated, have ON hand
sufficient steel and other material to
operate at 100 per cent. capacity
from four to six months. When the
inventories are all in, levelling will
occur. placing all manufacturers OF
passenger 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 require
ments are met.
The steel requirements Of the Gov
eminent and the Allies for the last
six months of this year have now
reached 22,5O0,000 tons, which was
taken to mean that the leveling pro- |
cess will likely be actual comman- !
deering of steel stocks which the /
far-sighted passenger automobile |
manufacturers obtained.