New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-29
Shopmen's Strike
Menaces Detroit
Auto Production
Will Force Il Shutdown
Within a Nj onth if
Present Conditions Con.
tinue, 1t Is Believed
Special Dispatch to The Tribune

DETROIT. July 2S.-Automobile
manufacturing in the Detroit district
Will be greatly curtailed within the
next few weeks, owing to the tie-up in
railroad facilities, and will be brought
to close within thirty days unless
some means is found Of getting into
the city coal which can be used for
general manufacturing purposes.
The Detroit Edison Company, which
supplies many of the smaller car and
truck manufacturing companies, and
small Parts and material makers, has
declared that it will be compelled to
cut oil its power from all but essential
industries within a short time unless
1t can be assured of regular coal
supply, Though the large companies
nave their own power plants, there is
a shortage of coal in their bins and
they could continue to produce power
for only short time.
Closing down of the small parts
companies will cut off car manufac-
turers from these sources of supply,
and as inventories of practically all
companies are at low point it will be
impossible to proceed. Companies get
ting parts from other manufacturing
sections are unable to get them into
the city with regularity, owing to traf-
flc delays. Steel is now taking ten
days to arrive from Pittsburgh. For
mer deliveries were on a three-day
basis. Owing to an embargo in Ohio
on all but perishable commodities,
some Of the companies here are truck
ing material to lake ports and shipping
it into Detroit by beat.
Shortage Of Steel
Aside from the general delay on ma
terials of all sorts there is a shortage
of steel which will compel some of the
large parts companies to curtail pro-
duction within short time. Carbon
steel is reported obtainable in only SO
per cent Of the quantity sought. Some
Of the producing companies have small
quantities stocked, but most companies
have not more than twenty days sup
ply at best. Fuel oil is also reported
low, with deliveries all but impossible.
To this time there have been plenty
of freight cars for shipping COM
pleted cars or parts, but the assump-
ton of control of the railroads by the
Inters tate Commerce Commission will
probably result in reduction of ship
ping facilities and require resorting
to drive aways while it is possible to
make cars. The leaders of the indus
try are prepared to keep factory wheels
turning as long as possible and will
operate trucks to get in supplies, but
it is known that only very limited
output can be maintained with the
railroad service disorganized.
The demand for cars continues to be
strong and warrants capacity opera
ton in most plants through August.
Enclosed car business for the fall mar
ket is developing strongly, factories
being rushed to meet the demand for
vehicles of this type.
Will Cut Prices
August will find announcements by
almost every company in the medium
price field of new models at prices
slightly lower than those existent up
to that time. Enclosed cars will show
the mosd considerable reduction, with
open models being shaded just tri1e.
Companies which are not making re-
auctions are improving the quality Of
their product considerably. Behind
the wave of reductions may be seen
the desire of manufacturers to keep
production close to the capacity point
for the rest Of the year.
The financial position Of almost
every company in the industry has
been tremendously improved in the
first half Of 1922. Several companies
which have been under bank control
for a considerable time have worked
from beneath their difficulties and are
about ready to resume operations I'M
der the direction of their own officers
Companies whose products were at all
right have had no difficulty in lining
up business in large volume, assuring
prosperous operation for a long time.
Companies which in January were
cons dered to have no chance of con-
tinuine for more than three months
are to-day entirely out of difficulty and