New-York tribune., 1922-08-19
Automobile Plants
Continuing Heavy
Work Schedules
MANY Factories Are Getting
Goal Shipments Approxi-
mating Requirements;
Parts Orders Hold Steady
speetal Dtspatch to The Tribune

DETROPP, Aug 1S.-Manufaeturing
in Detroit automobile factories is CON
tinuing at very close to the heavy pro-
duction rate that has maintained since
early IN the year. IL there is to be a
iet-up it will not be until we'll into
September, unless shortage of coal be-
fore that time causes an interruption
IN manufacturing schedules. Orders
for parts and material from the car
makers show comparatively little re-
duction from those Of the earlier
months.
The coal situation at this time is un-
changed from that of the past three
weeks, except that Detroit Edison and
the factories generating their own
power, are getting shipments daily ap-
pFoxinlating their requirements. These
shipments are independent of the coal
administrations priority list, and for
that reason no distinction is made as
to the essentially of the industry in
volved At the Edison headquarters it
was declared as long as they are able
to get coal independently they will fur
nish power to all consumers.
( There is feeling here that the in
dustry will be able to get coal that has
been contracted for because Of the evi-
dent desire on the part of railroads to
avoid suits for non-fultilment Of con-
tracts This attitude on the part of at
least one coal carrying line has led to
belief that most lines will follow this
course, unless the Federal government
assumes all responsibility for contract
adJustm ents.
Automobile executives have expressed
concern over the arbitrary placing of
the automobile industry upon The non
essential list, pointing out that auto
mobile demand has been responsible
for much of the activity in industries
regarded As essential and basic. There
{, has been no action toward reconsidera-
tion of this ruling, as the feeling is that
means will be found to keep supply
/ of fuel coming AT the worst there
can be no maj cessation of operations
for at least thirty days.
The strike situation and the lower
ing of prices have had tendency to
cause companies to conserve funds, SO
that any emergency may be met. Witt,
the strikes disposed of, and the indus
try settled down to the new scale of
prices, dividends win be resumed on
close to the former scale. The lower
prices will have little effect on earn
ings as compared with earlier months
as plant efficiency is now at a maxi
mum and factories are turning out as
many cars IN nlne hours now as was
possible in twelve to fifteen hours in
the spring.
Production figures for the first six
months of the year show most compa-
nies to be maintaining their former
positions, and as all are now operating
on the lower price scale, there is small
possibility of change in the remaining
six months. Some changes may occur
in the low priced field owing to the
entrance Of new competition strongly
financed, but the middle-priced and
high priced field will be little affected
The industry is vitality concerned
with the marketing of the large farm
crops of the Middle West, as it is
generally regarded that this will have
an important effect on the sale of cars
and trucks in these districts in the fall
Reports from these districts while
hopeful bear a trace of worriment, as
| bankers are withholding credits until
markets for the crops are more def.
nitely established. The industry feels
that foreign demand for farm products
will be necessary to insure the farmer
of prices which will enable him te
come into the buying market on an ex.
tensive scale. With good prices, it is
thought there will be demand for bet
ter cars than formerly, whereas poor
prices will mean that most of the bust.
ness will go to the small car manu-
facturers.