The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1920-10-15
SEE SAFE WAY
To BRING BACK
NORMAL PRICES
Price Guarantee Expect.
ed to Solve Difficult
Automobile Problem;
Protest Profiteering.

What is going to happen to thu
automobile! How shall the man who
needs a new car or a new fleet oil
trucks right now, the holder of in.
dustrial shares. and the interested
public generally gauge the effect oil
price reductions already announced
on one of the most important of this
country's industfies7
The answer, in the opinion of rep
resentative manufacturers. dealers,
material men. bankers and business
experts, is simple. The automobile
manufacturer who cannot reduce thc
sales price of his product immediately
is going to establish price guarantee
to stabilize the retail market while he
works out gradually his return to pre-,
war or normal costs and price lists.
Among the first Of the big produ-
GERS to adopt this safe and sound
method Of reimbursement are the Pack
ard and the National companies
that. while no immediate reduction in
prices is contemplated. the factories
will guarantee to refund the amount
OF any reduction announced between
now and July ! to all retail buyers
who purchase cars within that period.
Both manufacturers point out that
this guarantee and offer of protection
to the buying public will result not
only in stimulating sales and relieving
sluggish market conditions but will
also allow the factories to operate a
capacity, work off high priced mater
ials now on hand and stabilize the
the labor market.
Other alternatives seen in the crisis
which automobile men themselves are
loath to admit. but crisis neverthe-
less include: Immediate price reduc-
tons on the part of all manufact urers
not already on record curtailment of
production because Of slack business
conditions. The first, according to
the manufacturers themselves, will
mean financial loss and possible failure
for a number Of concerns already
pinched by the Tightening of national
credits and the refusal of many bank
ers to continue loaning money either
to prospective car purchasers or car
dealers. The second. thew declare
can easily bring about the same sort of
business failure for number and the
necessity Of increasing the price oil
their product for those who weather
The storm.
A glance at relative commodity
values through the war period is suf- |
'icient to relieve the automotive in
1ustry generally from the charge of |
war profiteering and to show some
IT the difficulties the industry faces in
,rice reductions.
Statistics. compiled from reports of |
government agencies working toward
he reduction of livinp costs, national
motor associations and the latest find
nRs of a survey made by Automobile
Copies show that few if any automo-
Tile manufacturers have increased
heir rrice more than 81 per cent in
he last three years. One investigator
prepared to prove that automobiles
ave averaged an increase of but II
er cent over the 1914 Level The
urveys place the average increase OIL
prices generally at los rer
ent since 1914. Clothing prices top
he list in 200 per cent increase.
,ther commodities include: House
furnishings. 235 per cent; farm pro-
ucts. los per cent; fuel and lighting.