New-York tribune., 1921-09-15
Auto Accessory
Hel, Optimistic
About Trade
a)( at Detroit Convention
Predict Business Kcvivals :
Motor Company Head
Saws Tide Has Turned
Production Is Growing
leaders Declare Panicky
Feeling of Last Winter
Has Been Eliminated

se autosaotive industry is shifting
mars. Optimism, which for so many
ronths has beer in reverse, will soon
e running on high, The sentiment
otevailing at the fifth annual conven-
ian Of the Motor AMI Accessory Manu-
seturers' Association, which began to-
lsy at the Hotel Statler. was that the
rsors OF the readjustment period had
a large extent lost their energy and
hat the trend in this industry was
asSaiteiy upward.
Good cheer, even after a depression.
Il scarcely q novelty among business
men. particularly in the automobile in
5ustry, which historically habitually
,yrs on the side of over-optim: sr,l
Sut the temper prevailing at this
rsthering is unusually significant. be-
;sase the delegates are not automobile
nsnufacturerS, but the men who sell
sarts and accessories TO the makers Of
ibe finished vehicle. The men here
sre the critics and the statisticians
ii the industry. who are called upon to
lsnd credit 10 the Studebakers and the
badges, the Fords and the Maxwells.
They have their noses close to the
balance sheets, and base their calcula-
tons or the testimony Of ruthless
tgares.
zoo at Convention
And yet these men behind the in
dustry, about whom the public seldom
hears, are inclined to view the near
future with as much enthusiasm as
saeir traditionally hopeful customers,
tae csrmakers. Among two hundred
accessory folk, representing a wide
diversity of interests. H. s. Rice, presi-
dent of the Cadillac Motor Company,
Eas the only car manufacturer present
10 express his opinions. His views
soincided with the others present.
"Whils there is no occasion for un-
bounded optimism for the immediate
fature,' said Mr.. Rice, in his address,
a..he tide has turned. We can look
With reaI assurance to a fairly decent
business from now on I am rejecting
the sentiment of car manufacturers as
whole IN bringing you messageso sof
optimism.
1In our organization we are laying
our plans for very decent business
this winter"
The Cadillac is General Motors sub
sidiary, and since W. c. Durant with
drew from active leadership of Gene
raj Meters, Observers behind the scene
have come to look upon Nr. Rice as
the big figure IN the organization. In
Detroit he is regarded as enc Of the
most promising personalities in the
field
Although the spokesmen for the mo-
tor trade aere are finding current busi-
ness far above their expectations, they
hall rhoe ftef1 Il - = =
adjustment have ret completely van
sshed. However. the panie4zy feeling
Wnlea stained a peak last December
- gone. In looking back, leaders are
surprised at the relatively few impor-
ant mortalities during the great cur
tailrnenr following the unprecedented
spurt IN 1919 and early 1920.
Two Groups Suffered Most
OF those which suffered most dur
ing the depression one group eorn
Hrised the insolvent companies which
CAME into being to take advantage ot
tas excess demand during the flood
ndes OF after the war prosperity
waen the extraordinary inquiry begar
saese corporations, many of which
were badly financed and poorly man
eyed. succumbed. The second group ct
companies II difficulty were theoretical.
y solrent, that is, their assets oa paper
Jar exceeded their liabilities, but their
resources we're frozen, and lacking
cash, they were unable to meet matur-
ng O5lisst.ons.
It was tais latter group which com
prlsed the companies which were
saEen over by bankers committees. Sid
neg S. Meyers, general counsel for the
aotor and Accessory Manufacturers
association, who has been or the in
aide OF several important adjustments
o. TINS character, IS authority for the
statement that. as q result of the I'M
prevlng sentiment, he chances of sue
eess1R!ly consummating these read
lustments have improved measurably
N the last fortnight He said in con-
Fersation to-day with the Tribune
correspondent that whereas a few
months ago no one wanted TO bid for
plants end Inventories of companies in
aillculty, at present there is a dis
position TO seek to acquire them at
luaEgaln prices. By waiting, he added
sAe creditors have placed themselves
I, y position where they Will get more
.nan II they had months ago insisted or
'olmai receiverships.
!. ne1ore the reaction OF the last yeal
tue eutomCtive industry was to an un.
pspai extent controlled by men within
BANKERS were fer the most part cut.
sloers The necessities subsequently,
aaVe brought banking interests into
ms business to very substantial ex-
'saes and delegates regard this de-
seiepment as a stabilizing influence.
Passenger Car Production
Contrary to expectations during ths
poom, the passenger car business came
saeE much earlier than the truck trade
aseoraiEg to estimates here present
PASSENGER production is 70 per cent o.
year ago, when the recession hae
already get under. way, and that o.
.sucAs IS said to be less than 20 pei
sshe OF normal and that of tractors
ABOUT 10 per cent
he most effective liquidation ant
seearn to normalcy has been in pas
ssaser machines. Opinion at the con
sea1ion is that passenger car prices
als getting close to rock bottom. Dele
saees assert that in the rush for bust
assS, the aggregate of which is still
sfeauy restricted, automobile makers
ale anticipating cuts in materials anC
Saslag consumers the benefit of then
'e5ore they take place
IN the scramble for favor of tn,
ssse1ed buyer, which amounts to 4
pses war, i IS felt here that in som,
y tne highly competitive moderate
pi'ced cars the downward swing of quo
ss1'ons IS likely to go too FAR, just, a
.ae upturn during the boom went be
. seha the limits OF the practical. I,
aaw Of this, several leaders of the in
sasery here predicted rally in auto
.aoDiie prices of the highly competitiv
ssoaps about next January, when stim
mes., mSs Is expected from the annual auto