Great Falls daily tribune., 1920-05-30

Among the country's many diversified
industries none have attained greater
prominence or importance in the fInan-
cial world than the automobile Industry,
with its eyer-increasing accessories. The
billions of dollars invested in capital in
the manufacturing of motor vehicles in
the United States is a living monument
Of the phenomenal growth of this divi-
sion of our country's manufactures. At
the same time the untotaled sum Of divi-
dends and interest paid is proof of not
only the unparalleled prosperity Of the
venture, but also the sound character of
the investments.
The securities of the numerous auto
mobile and motor corporations have oc-
cupied a foremost position in the trans
actions of the conntryS leading stock
exchanges during the last five years and
ut different intervals were the center Of
interest in the big market movements.
The appreciation in value of the securl-
ties of many of the leading motor We
/ hicle concerns surpassed the fondest
hopes of the most optimistic believers IN
the industry.
Change Is Quick.
Much of the growing prominence Of
automobile securities from a stock mar
ket viewpoint was due to the manner IN
which the manufacturers of motor We
hicles were able to turn from war ba-
sis back to peace time status. The un-
precedented demand for automobiles and
motor trucks which developed after the
armistice was signed -"oved to be gem
Iiine surprise to many people in the in
dustry.
Not few prominent interests in the
automobile trade ex-ncted that the man.
ufacturers of motor cars would enter
upon a lean period following the conciu-
sion of the war Instead. the demand
al o-tc e vol rpIp VI
in at the early part of last year has
grown to such proportions that vlrtu-
ally every manufacturer in the country
has found it necessary to increase plant
capacity. This has meant increased cap
ital but it was readily obtained because
of the lucrative returns heretofore met
in all such investments.
Growth Is Remarkable.
The phenomenal growth of the indus
try may be better appreciated from the
fact that for 1918 it is estimated that
about 100000 automobiles were turned
out. During the current year it is not
unlikely that 100000 motor cars will
be produced. and manufacturers say that
even at the rate of production anything
near the saturation point
AS result of the enormous business
accruing to the motor car producers, the
earnings of the automobile concerns are
General Motors corporation earned more
in the first six months of 1919 than had
been earned in any previous full year,
and it is estimated that earnings for the
last half Of 1919 will almost double the
earnings Of the first half of the year.
Its gross sales. which will approximate
S45O.OOO. 900 for 1919. will be increased
almost to 100000. according to an
estimate by W S. Durant, the president
of the corporation.
The Studebaker corporation showed
net profit from nine months operations
up to September 30, 1919, almost equal
to the return for the full l. months of
the previous year.
Christian Girl. president of Standard
Parts company of Cleveland. ard vice
president Of Motor and Accessory Manu-
facturers association. says: Labor VIII
be more constant and will accomplish
more in 1920 than in 1919 That high
prices will fall to any marked degree is
not to be expected. for a number of rea
sons. All material product is based on
work of the hand and the brain. and price
Of materials can be lowered only when
there is less demand for labor ~ the
hand and brain than there is at this mo-
ment.
1T will take some years TO restock the
warehouses Of the world and until this
occurs there can be no such thing as
over pTouucIoi HGIf may w sunni
unbalanced production, but no surplus CT
commodities in the average All our
debts have been contracted with a rising
and inflated market This is another
reason for general prices o. materials
remaining up. Demand for goods will
exceed supply.
Demand Increases
This will be especially true Of the
motor car. Demand for cars this next