The Washington times., 1920-01-24
Capital of 1915, 900,


mand OF the public. II the number OF
cars in all States was in proportion
to the per capita ownership shown by
the State OF Iowa, there would be
l5, 500, 900 cars on the road today.
The day has passed when the own
ership OF an automobile was mark
OF wealth. A car Is the poor mans
business medium and recreation, as
we'll as that OF the wealthy. II is
looked upon now as a necessity, with
a full realization OF Its earning
power. Perhaps the reader may have
noticed that IL is no longer called a
pleasure car. Such a name applied
to the automobile OF today would be
a misnomer.
Best Dividend Producer.
1t is evident to those who have
studied the situation that the invest
ment OF $1,000 in an automobile
would pay better dividends to it's
owner than $1,000 invested In any
other way. While an automobile de-
teriorstes through use, It still has a
large potential resale value: larger
perhaps than any other form OF me-
chanical contrivance.
Speaking of this resale proposition
suggests many interesting figures. An
automobile lends itself to repairs and
replacement OF worn parts much
easier and with more proit than any
other product on the market There
fore. the immense number of auto
mobiles that will be sold during tho
year 1920 means an outlay for re-
placements and repairs whose figures
are staggering.
As regards the effect OF the return
to normal conditions in the automo-
tive industry, there Is considerable
speculation At the present time.
business is in an abnormal condition
The wholesale and retail trade, and
practically every line connected with
it. has shown unprecedented sales
New businesses connected with the
auto industry are springing up on
every hand. There Is bound to be a
| reaction to a certain extent, on the
| return to normal conditions.
Advertising Is Life.
When immediate deliveries are the
rule rather than the exception. there
will be several OF the newer makes
of cars that will be unable to stand
the strong competition that will en-
sue. The immense amount OF money
1t will be necessary to spend in sd-
vertising will make II impossible for
the small concerns to compete sue
cessfully. The standard makes have
:
advertising appropriations for the
coming year are larger than they
have ever been before in the history
of the industry. Will the small man
ufacturers be able to compete with
this enormous amount OF publicity
when the question OF delivery te-
comes equal to all? viii they
be able to obtain bank sup
port, and retain an efficient
sales organization in the face OF the
fact that by increased competition
there Is an incessant demand for an
increased sales staff With the ma
jority Of manufacturers today. basic
business conditions are sound.
Many VIII Go To Wall.
Regarding the maintenance OF the
present prices, there seems to be no
indication of any decline. with the
present condition OF labor. and our
old friend II. c. OF L, wages mus:
remain the same as they are today,
! IL not go higher. The cost of ma
terials entering into the construc-
tion OF cars shows no evidence OF n
decline. While some organizations
which can read the handwriting on
the wall will lower prices to meet
the keen competition OF the standard
makes, 1t will not be long before
many will be forced out of business.
1t will be a survival of the fittest.
Mr.. Alfred Reeves. general man-
ager Of the National Automobile
Chamber OF Commerce, stated recent
ly:
present conditions point to 1920
as a record year for the automobile
business with some chance that II
may surpass the manufactured cloth
ing business and take second place
to steel among the leading manutsc-
turing industries"
LOCK YOUR SPARE TIRE.